Chika Nnebedum (Estate Surveyor and Valuer) speaks to Ugo Aliogo about the importance of business environmental scanning to the real estate practice and business success. Excerpts:
It seems that there are sweeping changes in the business environment today. Can you please describe these changes and the factors responsible?
The business environment is constantly evolving. It is highly dynamic and volatile. This creates uncertainty about the future of the company. Organizations must be aware of what is happening in their environment by conducting environmental scanning.
The business environment can also be described as the ship and ocean. The captain must have a good understanding of the ocean by scanning and gathering information. This is done through the use sophisticated navigational tools that are very useful in navigating through the ocean. Organizations are open systems. They interact with their environment.
Every business organization has both internal and exterior environmental factors that impact its business in different ways. These can present opportunities for growth or threaten the business. The external environment can present opportunities and threats for businesses, while the internal environment can provide strengths and weaknesses.
Internal weaknesses include poor personnel management, such as insufficient finance, low morale, and technology issues (outdated programs). External threats include economic slowdowns, government policy changes, competition, and politics. This could lead to lower revenue. Environmental scanning is the process that gathers information about events and their connections within an organization’s internal and external environments.
What is environmental scanning? How relevant is it to today’s business environment?
An environmental scan can simply be described as a process that analyzes and interprets relevant data to identify potential threats and opportunities that could impact future decisions. Environmental scanning, in the same way, is the process whereby an organization monitors the relevant environment and identifies threats and opportunities that could impact the business to make strategic decisions.
Here are some reasons why environmental scanning is so important for any business, including real estate businesses.
Environmental scanning is important for the purpose of conducting a SWOT Analysis -this includes the following: Identification of strength The entrepreneurs or realtors can use this information to maximize their strength and earn more profits to gain complete advantages; Identification of Weaknesses Weaknesses of the company are corrected and constrained without delay for the growth and sustainability of the company; Identification of Opportunities Entrepreneurs or realtors can prepare to capitalize on possible opportunities that present itself on daily basis; Identification of Threats The real estate company can come up with various strategies to diffuse and control threats, as well as minimise its impacts.
Another important aspect is to maximize the use of resources. This means that estate firms make the most of their resources. The company can use environmental scanning to identify wastes and maximize the effectiveness and economics of its business resources.
It helps to ensure the survival and growth real estate businesses. It helps firms to plan for the future and identify opportunities.
The environment can be scanned carefully to identify the most useful resources for the business. This helps the firm to track their resources and make the best use of them.
Another benefit of environmental scanning is its ability to help with decision making and long-term business strategy planning.
Another important point to note is that it helps in Planning for longterm objectives – Most businesses have both short term and long-term plans. Planning for long-term goals requires careful analysis and environmental scanning. The environment planning aids the entrepreneur in planning the business strategy. An important part of strategic planning is the environmental scan. This provides information on the factors that will impact the organization in future. This information will enable leadership and management to respond to external factors. Understanding the business environment helps organizations make realistic plans and ensure effective implementation. It makes it easier for managers to address business challenges.
Likewise, environmental scanning Helps in Decision Making – Decision making involves choosing the best alternative, and this is usually done by the management of the company.
The environmental scanning process allows real estate firms to make the best decisions while keeping the success and growth in mind. It also helps identify the firm’s strengths and weaknesses.
Many organisations found it difficult after the covid-19 epidemic to stay afloat in a competitive market. Which factor do you believe was responsible?
Most businesses were hardest hit during the COVID-19 period. The lack of environmental scanning made it difficult for such businesses to survive. Covid 19 caused major disruption and dislocation to organizations, especially small ones. However, proper environmental scanning would allow any organization to thrive and overcome the challenges presented by the dramatic changes in the global business environment.
Organizations had to analyze their environment in order plan and use innovations from the pandemic to drive revenue. This allowed them to remain competitive and afloat in the market.
For example, adopting new technologies, encouraging employees learn new skills to support business changes, and using contactless deliveries to make clients’ services available.
What is the core purpose and how can organisations tap it?
The purpose of environmental scanning is to help investors and management plan for the future direction of an organization. The purpose of environmental scans is to give entrepreneurs (including Estate Surveyors and Valuers) a roadmap to the likely future changes. The organization can adapt to the risks and take advantage of the opportunities by using environmental scanning.
The primary purpose of environmental scans is to aid management in deciding the future direction for the organization. Environmental scanning, which also includes Estate Surveyors and Valuers, is designed to give entrepreneurs a roadmap to the future changes that are likely to occur. Because change is the only constant in this world, it is important to be able to identify the most effective ways to adapt. Environmental scanning allows companies to adapt their business to the changing environment and capitalize on the opportunities.
Surveys, interviews, SWOT analysis, Market research, and other environmental scanning techniques are all available. These techniques can help identify opportunities and threats that could affect the growth and performance the organisation.
The four most important elements of environmental scanning are events, trends and issues.
The steps involved with environmental scanning include: Identification of environmental scanning requirements of the real-estate firm; Gathering of pertinent information; Analyzing the information; communicating results; making informed decisions
Investigating the environment is legitimate through: Newspaper articles, exhibitions and trade fairs, annual reports of companies and Stockbroker analyses on different portfolios.
Estate Surveyors and Valuers also have access to information from various sources for environmental scanning. This includes information sourced through NIESV or Real Estate newspapers and newsletters. A property bulletin keeps one informed about the ongoing developments in the real-estate sector. NIESV Branch and National MCPDs and Seminars are available, as well the NIESV branch MonthlyMeetings that provide continuous updates on many areas of the profession.
A firm that engages with competitive intelligence or corporate Intelligence will have an advantage in the business world because it can gather, analyze, and then use information on customers, competitors, and other market factors that could help a business gain a competitive edge.
What are the various types of environmental scanning that are available?
There are three types of environmental scanning. PESTEL Analysis is an analysis of the political economic, social, and technological environment (natural and legal), SWOT Analysis (which analyzes the strength, weakness and opportunities of a company in its business environment) and Porters Five Forces Models.
What is the relationship between environmental scanning and the real estate industry?
When evaluating feasibility and viability of any project, environmental scanning is an important part.
When an Estate Surveyor and Valuer do an environmental impact assessment on a project, it is important to also conduct environmental scanning. Environmental Impact Assessment (EIA), which is the process of assessing the potential environmental impact of a development or project, taking into account inter-related socio-economic and cultural factors, both beneficial and detrimental, is called Environmental Scanning.
Entrepreneurs, Estate Surveyors and Valuers alike, need to understand the importance of environmental scanning. Entrepreneurs must first determine if the environment is suitable to implement new ideas, plans, or innovations. This helps him/her to develop his/her creative ideas into real estate services that are available in the market. He/she can also scan the environment to determine if the real estate services are being accepted and what opportunities and threats they may face.
Managers can use environmental scanning to keep them aware of the relationship between their organization and its environment. It helps companies identify potential threats and opportunities, which allows them to make improvements. It’s useful in assessing the current strategy, setting strategic objectives, and formulating strategies that will improve the organization’s performance.
It is a well-known fact that the business environment can be likened to a war zone because it is highly competitive. Therefore, any business must be familiar with its environment in order to thrive and survive.
Because of the variety of activities around them, including opportunities, threats, and strengths, the business environment is a critical domain for any organization. To enable organizations to adapt to the external environment, which is often characterized by its volatility and dynamism, issues around the internal environment must be addressed.
It is crucial to be aware of your competitors’ strategies and actions in any business. Companies can analyze the strategies and actions of their competitors to create their own strategy.
Every day new estate companies are formed. In order to be competitive and to sustain its competitive edge, such a firm should conduct an environmental scan of the environment. This will help ensure that business success and sustainability. This promotes professionalism.
An estate firm that wants sustainability and relevance in the business world must be well-versed in environmental scanning.