Organizational Environmental AnalysisEnvironmental analysis is the communication of external information on facts that could influence an organization on its strategic decision-making process. It is a method of analyzing information collected and used to determine strategic and premeditated action on the business environment. The environmental scanning process aims to obtain both realistic and subjective information about the business environments in which a company operates or plans to enter. It is the possession and use of information regarding events, trends and interactions in the external environment of an organization, the data of which could help management in planning the future course of action of the organization. Organizations must scan the environment in order to recognize any external factors that could affect their market position, and therefore construct effective responses to protect or improve their position in the future. They analyze to avoid surprises, spot pressures and opportunities, increase competitive advantage, and improve immediate and long-term planning. An organization's ability to adapt to its external environment depends heavily on the interpretation of external factors. Environmental scanning focuses on detecting emerging issues, circumstances, and potential problems that could determine the future of an organization. The information collected is provided to key leaders in the organization and used to guide management in future plans. It is also used to assess an organization's strengths and weaknesses in response to external threats and opportunities. Essentially, environmental scanning is a process of identifying, collecting and transmitting information about external factors to be converted into plans and decisions..