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Environmental Essay

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Submitted By amirailh
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Environmental Scan Essay
4/20/2013

Environmental scanning can be viewed as a way of acquiring information about outside events that can aid organizations in first identifying potential trends, then interpreting them (Kerin, Hartley, & Rudelius, 2010). These trends normally consist of five sources, social, economic, technological, competitive, and regulatory forces. My intention in this essay is to focus on one; the economic environmental force. I will discuss how the current state of the economy will impact completing an environmental scan. In order to evaluate how the economy will impact the completion of an environmental scan, it is essential to cover the concerns that affect the economic aspect whether people want to believe it or not. The first concern is the macroeconomic level or factors which cannot be controlled. Leo Sun describes macroeconomic factors as national or global events which are out of people’s control (Sun, 2013).They have an unpredictability and dangerous side to them that can cause most companies to fail if not managed by an experienced individual. One very recent example of this is the Boston Marathon attacks that left three people dead and approximately 170 injured. We have not seen the fallout of this attack economically, but there could be one to follow that will affect the consumers, businesses, and organizations alike. When negative macro factors present themselves, a snowball effect then seems to occur economically. It is important for a company to deal with these factors as soon as possible. Recession, inflation rate, or growth in spending power classifies as such factors. Since 2008, increased unemployment has made it difficult to complete an environmental scan because it leads to lower consumer spending, then reduced imports from other countries making it hard to identify and interpret these trends. As a result,

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