Question

Maureen, the owner of a boutique, studies the spending pattern and consumer behavior of the people in the area in which her store is located. She estimates the likely variations in demand and pricing and also keeps track of her competitors' sales. Which of the following concepts does this scenario best illustrate?

Answer 1

Answer:Environmental Scanning

Explanation: Environmental Scanning is the process of acquiring information about trends, patterns, occasions and relationships related to a business' internal and external surroundings. The function of doing this is to confirm forecasts of internal and external elements that will affect a business' success. It also helps managers, such as Maureen, to identify threats and opportunities that are present in the environment. And in doing so Maureen is then able to decide the future path of her business.