Summary

Environmental scanning is the monitoring, evaluating and disseminating of the information from the external and internal environments to key people within the corporation. Its purpose is to identify strategic factors- external and internal elements that will determine the future of the corporation. The simplest way to conduct environmental scanning is through SWOT Analysis.

In undertaking environmental scanning, strategic managers must first be aware of the many variables within a corporation's societal and task environments.

Strategy formulation is the development of long-range plans for the effective management of environmental opportunities and threats, in light of corporate strengths and weaknesses (SWOT). It includes defining the corporate mission, specifying achievable objectives, developing strategies, and setting policy guidelines.