Which term refers to acquiring and using information about internal and external business environments that influence strategy, such as talent shortages?

Which term refers to acquiring and using information about internal and external business environments that influence strategy, such as talent shortages?

• A. Market research
• B. Strategic planning
• C. Environmental scanning
• D. Competitive intelligence

Answer: (C)

Environmental scanning is the ongoing process of gathering and interpreting information about both internal and external factors that can influence an organization’s strategy. It looks at what’s happening inside the company (like skills, capacity, and morale) and outside (such as labor market trends, technology shifts, regulatory changes, and competitive dynamics). By identifying issues like talent shortages early, it helps leaders shape strategic and workforce planning so the organization can adapt effectively. Market research focuses mainly on customers and markets, strategic planning is the process of setting goals and actions, and competitive intelligence zeroes in on competitors; none cover the full breadth of internal and external factors that environmental scanning does.

Environmental scanning is the ongoing process of gathering and interpreting information about both internal and external factors that can influence an organization’s strategy. It looks at what’s happening inside the company (like skills, capacity, and morale) and outside (such as labor market trends, technology shifts, regulatory changes, and competitive dynamics). By identifying issues like talent shortages early, it helps leaders shape strategic and workforce planning so the organization can adapt effectively. Market research focuses mainly on customers and markets, strategic planning is the process of setting goals and actions, and competitive intelligence zeroes in on competitors; none cover the full breadth of internal and external factors that environmental scanning does.