Strategic planning can make an important contribution to the organization's growth and survival in uncertain environments. In essence, the process of making strategic decisions usually involves not only the analysis of the organization's strengths and weaknesses but also the identification of opportunities and threats in the external environment. This unit highlights the importance of an effective environmental scanning system to provide crucial inputs to the strategic decision making process.
Many aspects of the environment need to be continually monitored by top management. Developments in international markets, trends in consumer preferences, the behavior of competitors, the introduction of new products and development of new production processes and broad technological trends are a few examples of areas that need to be carefully followed by the organization's monitoring system. An effective environmental scanning process is essential to the development of sound business strategies.
GILAD, B, GILAD, T. The Business Intelligence System: a new tool for competitive advantage. Sloan Management Review, v.28, n.1, p.49-58, Fall 1986.
POLLANIS, Y., GRANT, J. H. Information resources and corporate strategy development. Information Strategy: the executive journal. New York: v.11, n.1, p.12-28, fall 1994.
CRONIN, B., DAVENPORT, E. Competitive intelligence and social advantage. Library Trends, v.43, n.2, p.239-252, fall 1994
SUTTON, H. Competitive Intelligence, New York: The Conference Board, 1988 (Research Report n. 913)