1. Identification of opportunities:
Environment provides numerous opportunities for business success. Early identification of opportunities helps an enterprise to be the first to exploit them.
2. Identification of threats:
Environmental awareness help managers to identify various threats on time and serves as an early warning signal.
3. Tapping useful resources:
Business environment helps to know the availability of resources and making them available on time.
4. Coping with rapid changes:
Environmental scanning enables the firms to adapt themselves to the changes in the market.
5. Assistance in planning and policy formulation:
Environmental understanding and analysis is the basis for planning and policy making.
6. Improving performance:
Environment scanning helps an organisation in improving its performance