CSEET · Economic and Business Environment · Business Environment
A firm systematically collects and analyses information about changes in the external world, such as new regulations, competitor moves and shifts in consumer taste, so that managers can anticipate opportunities and threats. This activity is best described as:
The activity is environmental scanning. It is the continuous collection and analysis of information about external developments such as regulations, competitors and customer preferences, helping managers anticipate opportunities and threats and shape strategy accordingly, unlike internal control tools like budgets or audits.
- AEnvironmental scanningCorrect
- BBudgetary control
- CCost auditing
- DJob rotation
Explanation
Environmental scanning means monitoring and analysing external factors that may affect the business so that early warning of opportunities and threats is available. Budgetary control, cost auditing and job rotation deal with internal financial or human resource matters, not external monitoring.
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