This article provides information about the environmental scanning / swot analyses:

Environmental analysis is the study of the organizational environment to pinpoint environmental factors that can significantly influence organizational operations. It is a process of gathering, analysing and dispensing information for effective purpose.

SWOT Analyses

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Scanning means detection. Environmental scanning means having a detailed investigation of the environment. Environmental scanning can also be termed as SWOT analyses. In order to survive and grow in a competitive business environment, it is essential for every business firm to undertake SWOT analyses.

This is the process in which the enterprise monitors environmental factors to identify opportunities and threats of the business. Environmental scanning is essential to understand current and probable changes in the business environment comprising economic, political, technological, cultural etc.

SWOT Analysis stand for:

S – Analysing Strength of the firm


W – Analysing weakness of the firm

O – Analysing opportunities of the firm

T – Analysing threats of the firm

It is rightly said that, the firm should maximise the strength, minimise the weakness, grab the opportunities and diffuse off the threat for survival and growth of the business firm.


SWOT Analysis:

The internal analysis of the firm identifies strength and weakness, and the external analyses helps to observe opportunities and threats coming the way of business.

Positive Negative
Strength (Internal) Weakness (Internal)
1. Technological skills2. Leading brands

3. Distribution channels

4. Customer relationship and Loyalty


5. Management

1. Absence of employee skill2. Unreliable product

3. Poor access to distribution

4. Low customer retention

5. Poor management

Opportunities (External): Threats (External):
1. Changing & unfulfilled customer need2. Technological advances

3. Favorable change in government policies


4. Liberalisation of market

1. Changing customer taste & emergence of substitute product.2. Arrival of new technologies

3. Unfavorable change in government policies

4. Closing of market