Environmental scanning is the acquisition and use of information about events, trends, and relationships in an organization's external environment. It is used to assist management in planning the organization's future course of action. Organizations scan the environment in order to understand the external forces of change so that they may develop effective responses which secure or improve their position in the future, in order to avoid surprises, identify threats and opportunities, gain competitive advantage, and improve long-term and short-term planning.
Environmental scanning is a method for determining how others perceive a company's policies and procedures. Environmental scanning includes both looking at information and looking for information. It could range from a casual conversation at the lunch table or a chance observation of an angry customer, to a formal market research program or a scenario planning exercise. It may be conducted once, or on a regular or continuous basis.
