Do You Think Companies Place Enough Emphasis On Environment

Do You Think That Companies Place Enough Emphasis On Environmental Sca

Environmental scanning is a crucial strategic activity that involves the ongoing collection and analysis of external information that could impact an organization's decision-making process. It focuses on identifying emerging issues, trends, and potential challenges that may affect future operations. As technology rapidly evolves, companies must adapt to these changes to remain competitive and sustainable. Some companies, however, may neglect this vital aspect, either due to complacency or a lack of awareness, which can lead to missed opportunities or unforeseen threats. An example of this is a small local business in El Paso, Texas, which traditionally only accepted cash payments and failed to adapt to the digital payment trend until recently. This lack of environmental scanning led to a decline in customer traffic, as now customers prefer card payments and digital transactions. Only when the business recognized this shift and began accepting debit and credit cards did it regain momentum.

From this example, it is evident that a company’s failure to conduct effective environmental scanning can hinder its growth and competitiveness. Conversely, companies like Walmart exemplify proactive environmental scanning and strategic adaptation. Walmart has recognized the importance of online shopping and has invested significantly to develop its e-commerce platform, aiming to capture the growing online consumer base. This strategic move has allowed Walmart to expand its market share and stay relevant amid digital transformation. Proper environmental scanning enables organizations to anticipate market trends, technological advancements, and regulatory changes, ultimately supporting strategic planning and long-term success (Albright, 2004).

I agree with the sentiment that organizations seeking growth and competitiveness must prioritize environmental scanning. Companies that remain stagnant and ignore external signals risk obsolescence. In contrast, strategic organizations continuously monitor external environments, leveraging insights to innovate, mitigate risks, and capitalize on emerging opportunities. Walmart’s example underscores the necessity of integrating environmental scanning into corporate strategy to sustain growth in an increasingly competitive and technologically driven marketplace.

References

• Albright, K. S. (2004). Environmental scanning: Radar for success. Information Management Journal, 38(3), 38-45.
• Fahey, L., & King, W. R. (1977). Environmental scanning for corporate planning. Business Horizons, 20(2), 61-71.
• Ginter, P. M., Duncan, W. J., & Swayne, L. E. (2018). Strategic management of health care organizations. John Wiley & Sons.
• Gordon, G. (2013). The importance of environmental scanning in strategic management. Harvard Business Review. Retrieved from https://hbr.org
• Johnson, G., Scholes, K., & Whittington, R. (2008). Exploring corporate strategy. Prentice Hall.
• Porter, M. E. (1980). Competitive strategy: Techniques for analyzing industries and competitors. Free Press.
• Rothaermel, F. T. (2019). Strategic management. McGraw-Hill Education.
• Wheelwright, S. C., & Clark, K. B. (1992). Creating project plans to focus product innovation. Harvard Business Review. Both technological and market changes are key external influences that necessitate attentive environmental scanning for successful strategic positioning.
• Yukl, G. (2012). Leadership in organizations. Pearson Education.
• Zahra, S. A., & Pearce, J. A. (1989). Board of director involvement in corporate strategy and development: The case of new venture formation. Strategic Management Journal, 10(4), 327-341.