How Can Managers Understand the External Environment? Give an Example

question 137

Essay

How can managers understand the external environment? Give an example of an opportunity and a threat that environmental scanning might identify for a suntan lotion company.

---

Definitions:

Net Operating Income

The profit a company generates from its regular business operations, excluding expenses and revenues from non-operating activities.

Client-visits

The act of meeting with clients or potential clients, often for the purposes of discussing business opportunities, providing services, or strengthening relationships.

Activity Variance

The difference between the budgeted and actual amount of an activity, such as hours worked or units produced, affecting budget and cost planning.

Budgeting

A financial planning process that involves the estimation of future revenues and expenses over a specified period.