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CSEET · Economic and Business Environment · Business Environment

A company secretary of a packaging firm systematically collects and studies information about changes in government policy, consumer tastes, technology and competitors so that the firm can anticipate opportunities and threats. This activity is best described as:

The activity is environmental scanning. It means continuously collecting and analysing information on external forces such as policy, consumer tastes, technology and competitors so that a firm can anticipate opportunities and threats and adjust its strategy in good time.

  1. AEnvironmental scanningCorrect
  2. BCapital budgeting
  3. CBank reconciliation
  4. DHorizontal integration

Explanation

Environmental scanning is the process of gathering and analysing information about external factors affecting an organisation so that it can spot opportunities and threats early. Capital budgeting concerns investment decisions, bank reconciliation is an accounting statement, and horizontal integration is a growth strategy, so none of them describes the activity.

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