Scanning The Business Environment
Scanning the business environment is the first step in effective business planning or development of business strategy. Effective frameworks and tools include PEST, PESTLE, SLEPT, STEPE etc.
Scanning the business or operating environment helps to provide the decision makers with the context within which to make an informed decision.
Often in business we look in-wards, we undertake a SWOT analysis and then make a decision based upon that. In reality, success or failure is more likely to be understood when we know what our competitors are doing, what our customers want, what is driving our suppliers and what is happening in the environment in which we all operate.
Our customer may well want product A or service B, but due to the economic situation may only be able to but product x.
Our customer may want a big car, but due to changes in government and law, finds a large car too expensive to run, so buys a small one.