Yes, it is correct. The business environment is increasingly becoming uncertain and complex due to political realignments, economic crises, terrorism threats, technological innovations and natural disasters.
In rapidly changing environments, one rule of thumb applies: If you don’t adapt, you don’t endure. It is the core idea behind environmental scanning, which refers to the means by which organizations gather information on changing conditions and incorporate those observations into a process where necessary changes are made.
The right information, combined with the right adaptations, can determine an organization’s future viability. Environmental scanning can help you identify the trends that are most likely to directly affect the organisation and product. Then an entrepreneur can craft a strategy that will help him take advantage of various changes occurring and get through the success and at the same time if he is not aware of what the environment surrounding his business he is sure to fail.
- E.g., HMT watches lost its market to Titan;
- Sony failing to understand the changing trends in mobile phones and therefore losing it’s market share.
Value Points:
- Spirit of Enquiry
- Services to others
- Initiative
- Self-existent
- Awareness of responsibility of citizenship
- Social service
- Endurance
- Tolerance
- To protect national property.