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Many firms use environmental scanning to assess their external environment. Environmental scanning should be used to

A. Respond to current crises
B. Identify future threats and opportunities
C. Determine personnel performance
D. Allocate financial resources
E. Assist with service delivery

1 Answer

5 votes

Final answer:

Environmental scanning is utilized by firms to identify future threats and opportunities by analyzing factors in their external environment. This helps in adjusting strategies proactively and is essential for strategic planning.

Step-by-step explanation:

Many firms use environmental scanning to assess their external environment. The main purpose of environmental scanning is B. Identify future threats and opportunities. This proactive approach enables companies to anticipate changes in the market and adjust their strategies accordingly. It involves the analysis of various factors in the external environment that could affect the firm's operations, including economic, technological, legal, and socio-cultural elements.

Environmental scanning is not directly used for responding to current crises, determining personnel performance, allocating financial resources, or assisting with direct service delivery, although insights gained from environmental scanning could indirectly influence these areas.

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