Answer to Question #187163 in Macroeconomics for kevin

Question

4Dumisane knows that he needs to stay abreast of what is happening in the business environment around him.He is aware that the business environment is dynamic and he needs to be aware of the changes that might influence his computer services business,named Gigs and Gadgets. Dumisani does elementary environmental scanning.

Which one of the following statements regarding elementary environmental scanning is correct?

1Dumisane contacts a consultant to determine which factors will influence his business in the short and long term.

2Dumisane updates himself regularly by means of newspapers,SMME websites and his own sales records.

3Dumisane has employed a person in Gigs and Gadgets to monitor changes in the business environment.This person is responsible for conducting regular research projects and to assess general economic fluctuations.

4Dumisane has contacted an environmental scanning company and pays them a hefty amount every month as a retainer so that they can keep watch over his business environment.

 

Answer 1

Solution:

The correct statement is 3. Dumisane has employed a person in Gigs and Gadgets to monitor changes in the business environment. This person is responsible for conducting regular research projects and to assess general economic fluctuations.

Elementary environmental scanning is the process of gathering information about events and their relationships within a company’s internal and external environment. The main purpose of elementary environmental scanning is to assist management to determine the future direction of the company.

The person employed by Dumisane undertakes elementary environment scanning by conducting regular research projects to monitor the changes in the business environment and evaluate the general economic fluctuations affecting the business.