Thursday, December 8, 2011

E-Commerce (Week #5) Environmental Scanning

E-Commerce #9 Environmental Scanning a Management Concept NOT Entrepreneurial Concept

Why is environmental scanning a management concept, not and entrepreneurial concept?

Environmental scanning has always looked at by management from a strategic standpoint. First lets understand what is meant by this term, environmental scanning. From a management standpoint, both internal and external factors that affect and influence the success of any business. This gives managers a better snapshot of patterns, trends, threats, opportunities, etc that impact their business. This provides a framework in the decision making process.  This type of strategy can benefit companies in the following ways:
·         Provides information for strategic planning
·         Detects new opportunities
·         Executive decisions based on data
·         Monitor market trends
·         Monitor the changing dynamic business environment
As our markets become more competitive, it is necessary to adjust quickly to the ever-changing needs.

From an entrepreneurial perspective, this concept is being done but not called environmental scanning. Entrepreneurs are constantly looking for new products or services that are being met by existing companies, large corporations or other small business. Many times these new ventures provide the consumer with innovative products. Environmental scanning is an essential tool used by top-level management. Because of the size and organizational structure, this becomes a critical tool for companies to understand trends in the market place and adjust according. Entrepreneurs are doing this on a daily bases as to how to improve or offer the next product or service.   

The landscape of business changes daily. Companies that are scanning for trends are able to capture the market but great opportunities are over looked. Entrepreneurs are able to fill those gaps by improving, modifying, redesigning or providing an alternative. I think about the I-pad, now look at what the competition has developed, the tablets. Bill Gates, Sam Walton and Henry Ford all had ideals that were put into action because they saw something others did not. True entrepreneurs are constantly looking for the next product or service to fill the void. It is called innovation and creativity.




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