Jeffery Whippo - Environmental Scanning Helps Management Determine Future Direction of Organization

Jeffery Whippo Explains that Environmental Scanning Helps Management Determine Future Direction of Organization Jeffery Whippo explains the significance of environmental scanning.

According to him, the strength of the business firm means capacity of the firm to gain advantage over its competitors. The analysis of internal business environment helps to identify strength of the firm.

He states that environmental analysis helps to identify the opportunities in the market.

Whippo shares that environmental analysis helps to identify threat from the external environment. After all, early identification of threat is always beneficial as it helps to diffuse off some threat. It also helps to make optimum utilization of scare human, natural and capital resources.

According to Jeffery D Whippo, systematic analysis of business environment helps the firm to reduce wastage and make optimum use of available resources, without understanding the internal and external environment resources cannot be used in an effective manner.

The environmental scanning is aimed at helping management determine the future direction of the organization. It involves the internal analysis of the environment and it includes employee interaction with other employees, employee interaction with management, and management interaction with shareholders.

As per Jeffery Whippo, proper analysis of environmental factors helps the business firm to frame plans and policies that could help in easy accomplishment of those organizational objectives.

Without undertaking environmental scanning, the firm cannot develop a strategy for business success.