Environmental Scan
The environmental scan includes the following components:
- Analysis of the firm (Internal environment)
- Analysis of the firm’s industry (micro or task environment)
- Analysis of the External macro environment (PEST analysis)
The internal analysis can identify the firm’s strengths and weaknesses and the external analysis reveals opportunities and threats. A profile of the strengths, weaknesses, opportunities, and threats is generated by means of a SWOT analysis
An industry analysis can be performed using a framework developed by Michael Porter known as Porter’s five forces. This framework evaluates entry barriers, suppliers, customers, substitute products, and industry rivalry.
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