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CHALLENGES IN THE EXTERNAL cHapTer 2, ENVIRONMENT Leaning Outcomes Particularly at the end of this chapter, the students should be able to: 1. perform environmental scanning; 2. employ SWOT analysis using a company; 3. analyze and evaluate the social, political, economic, technological, and environmental forces affecting the country; and 4. identify external forces that may prove beneficial or detrimental to an organization. Scanning the Environment Organizations exist to survive. Given their vision and mission statements and set goals and objectives, it is for organizations to conduct themselves clearly, deliberately, and strategically. To achieve this, organizations should develop “organizational intelligence.’ Organizational intelligence refers to the expertise, insight, and wisdom possessed by an entity. It serves as a valuable guide to its journey to becoming competitive. Thus, organizations need to possess this capability to be able to accurately audit the environment and come up with creative and cutting-edge strategies. Environmental scanning is the study and interpretation of the forces existing in the external and internal environments. The external environment includes social, economic, political, technological, and environmental forces that may influence an organization, an industry, or any entity. The competitive environment covers competitors, suppliers, customers, stakeholders, culture, and the government. Environmental scanning is carefully monitoring the surroundings with the end goal of ascertaining early indications of prospects and challenges that may influence the organization's present and future plans. Conducting environmental scanningis both easy and difficult. For informal scanning, experience and expertise will help make the process effortless and straightforward. The competencies, skills, and intelligence of the individual will allow for easy scanning of the environment. On the other hand, environmental scanning can be demanding, in that there is a need for comprehensive, as well as accurate information. It will be mostly dependent on the following: (1) the speed of the organization to conduct scanning; (2) the presence and availability of complete information; and (3) the physical and financial capability to do so. 19 
