University of Central Florida (UCF) MAN4720 Strategic Management Capstone Midterm Practice

The primary purpose of environmental scanning is to identify trends, threats, and opportunities in the external environment. This process involves collecting and analyzing information about various external factors, such as economic, social, technological, and political conditions that could impact an organization. By focusing on the external environment, organizations can better understand how changes outside their control might influence their strategies and operations.

Identifying trends allows businesses to anticipate shifts in consumer behavior or market dynamics that can affect their competitive position. Recognizing threats helps organizations to prepare for challenges that could undermine their success, while spotting opportunities enables them to leverage favorable conditions for growth and innovation. This proactive approach is essential for strategic management, as it informs decision-making and helps organizations adjust their strategies in response to the external landscape.

In contrast, assessing internal organizational capabilities focuses on the strengths and weaknesses within the company rather than the external environment. Establishing marketing strategies is a specific aspect of strategic management that is informed by environmental scanning, but it does not encompass its broader purpose. Managing employee performance is typically an internal human resources function and is less related to the overarching strategic goals driven by external factors.