Analysis of
business environmental help to identify strength weakness, opportunities and
threats. Analysis is very necessary.
(1) Identification of strength: the
analysis of the internal environment helps to identify strength of the firm. If
the company has good personal policies in respect of promotion, transfer,
training, etc. this strength can be identified through the jobs satisfaction
and performance of the employees.
(2) Identification of weakness: the
internal environment indicates not only strengths but also the weakness of the
firm. The firm should identify sue weakness so as to correct from as early as
possible.
(3) Identification of opportunities: the
external environment helps the business firm to
identify the opportunities in
the market.
(4) Identification of threats: business
may be subject to threats from competitors and other therefore environmental analysis
helps to identify threats from the environment identification of threat.
(5)
Exploitation
of business opportunities: environment opens new opportunities for the
expansion of business activities.
(6)
Keeping
business enterprise: environment study is needed as it keeps
the business unit alert in its approach and activities. The problems and
prospects of business can be understood properly through the study of business
environment.
(7)
Keeping
business flexible and dynamic: study of business environment is needed for
keeping business flexible and dynamic as per the changes in the environmental
forces.
ADVANTAGES
1.
Increased
reach:
using information technology, a marketer can reached an enormous number of
people with just the click of a button. The internet allow broad dissemination,
of advertising other technologies facilitate its quick design and production.
2.
Speed and
flexibility:
technology allows advertisers to respond quickly to changes in the market
place. If a competitor develops a product that quickly becomes popular and
advertiser can alter the image of his own product to more closely resemble the
competitor’s. Different marketers can a targeted with differently themed
promotions using digital technologies.
DISADVANTAGES
1.
Competition: what
makes all these technological developments less than perfect is that they are
available to everyone. If only one promoter had access to advanced technology,
he would certainly have a tremendous advantage.
2.
Homogenization: as markets
all have in on the fastest; more efficient and most effective way of getting
public attention, the result is a growing homogenization, in both products and
the way that they are promoted. Because digital
technologies make replication so easy, no marketer can have an edge on the competition
for very long, because other will copy whatever is effective.
SOME
APPROACHES OF SPECIFIC ENVIRONMENTAL SCANNING
A brief discussion is made on the
potential approaches, tools, and techniques that are commonly used to analyze
the sector wise business environment. The sectors of business environment are
external business environment, industry level business environment and internal
business environment
REFERENCES
Small Business
Bible: Some Advantages and Disadvantages of Information Technology
Entrepreneur:
Using Technology to your Advantage; Tom Hopkins; May 2006
Media
Awareness Network: Advertising: it’s everywhere