What is one of the main reasons businesses conduct environmental scanning?

Businesses conduct environmental scanning primarily to identify potential threats and opportunities that may impact their operations and strategies. This process involves analyzing both internal and external factors that can affect the organization, such as economic trends, regulatory changes, competitive landscape, and technological advancements. By staying aware of these factors, companies can make informed decisions, adapt their strategies to mitigate risks, and capitalize on emerging opportunities.

This proactive approach enables businesses to remain competitive in a dynamic marketplace, allowing them to anticipate changes and respond appropriately. Understanding the external environment helps organizations to align their resources and capabilities more effectively, which is crucial for long-term sustainability and growth.