Organizational Environmental ScanningEnvironmental scanning is the communication of external information about facts that could influence an organization in its strategic decision making. It is a method of analyzing relevant collected information and using it to determine strategic and premeditated action on the business environment. The environmental scanning process seeks to obtain both realistic and subjective information about the business environments a company operates or is considering entering. It is the possession and use of information regarding events, trends, and interactions in an organization's external environment, the data of which could support management in planning the organization's future course of action. Organizations should scan the environment to recognize any external factors that may influence their market position, and then build successful responses to protect or improve their position in the future. They scan to avoid surprises, identify pressures and opportunities, increase competitive advantage, and improve immediate and long-term planning. An organization's ability to adapt to its external environment depends heavily on the interpretation of external factors. Environmental scanning focuses on identifying issues, circumstances, and potential emerging problems that could determine the future of an organization. The information collected is provided to the organization's key executives and used to guide management in future plans. It is also used to evaluate an organization's strengths and weaknesses in response to external threats and opportunities. In essence, environmental scanning is a process for identifying, collecting and transmitting information about external factors to be converted into plans and decisions.