write a comment about 3-4 lines seperately #1& #2.


The analysis of the environment is crucial of the success of the decisions the managers have to make. This has a widespread impact on the functions and processes of the business.But without scanning and forecasting the environment both internally and externally, if there is an idea that is applied there can be no long-term profitability. It can only have a negative impact on the credibility of the business.

A simple example, in 2009 Walmart made an effort to make the shopping much easier with more space. They eliminated thousands of items from sales (lack of scanning). The plan was to focus on selling faster-growing products by adding upscale items.

The plan was a complete backfire when shoppers could no longer find their preferred/favorite products and took their entire shopping list elsewhere (lack of forecasting). Sales came down rapidly and Walmart had to add 8500 items back to its sales within 2 years.


Companies do an environmental scan to obtain data about trends opportunities and threats that are internal and external. The reason why they want to gather this information is that the company make accurate forecasts. The company will use these forecasts to them set and improve goals. The company gathers this information through surveys. Information they gather are trends, population, economy issues, government issues and laws that relate to the operations of the company. The company should also examine the strengths and weakness of the company and should consider what their goals are for the next five to ten years (SHRM, 2012). The reason you want to look at the company strengths and weakness is to see where you can change so that it doesn’t become a threat to the company. ” Environmental scanning is a process used by businesses and other organizations to assess internal strengths and challenges and external opportunities and threats. Decision makers use environmental scans to collect, organize, and analyze data on their assets and shortcomings in external and internal environments to guide strategic planning and decision making.”(Wilburn, Vanderpool, Knight 2016). The company when gathering information will want the data to be accurate and relevant. For example, in the medical field you will use the patient’s symptoms, medical chart, blood work x-rays to gather information on what the patient’s problem to give them diagnosis and cure. This way you can make to right plan for that patient. This way you are using the evidence to make the decision. I don’t think a company can make an accurate forecast without knowing what is going on in environment.