CSEET · Economic and Business Environment · Business Environment
A company regularly scans newspapers, regulatory announcements and competitor activity to identify possible opportunities and threats before they affect operations. Which feature or process of business environment analysis does this describe?
This is environmental scanning, the systematic monitoring of external developments such as news, regulations and competitor moves, so that a firm can identify opportunities and threats early. The other options relate to investment appraisal, pay structures or market division, not environmental monitoring.
- AEnvironmental scanningCorrect
- BCapital budgeting
- CJob evaluation
- DMarket segmentation
Explanation
Environmental scanning is the continuous process of collecting and interpreting information about external events and trends to spot opportunities and threats. Capital budgeting concerns investment decisions, job evaluation ranks jobs, and segmentation divides markets; none involves monitoring the environment.
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