Surplus causes disequilibrium in the supply and demand of a product. This imbalance means that the product cannot flow through the market efficiently. However, the cycle of surplus and shortage has a way of balancing itself out.
Environmental scanning is the term used to describe the acquisition and use of information gleaned from sources external to your company. Scanning can be thought of as a form of early-warning radar that lets managers look into the future.
Scanning The Business Environment. Introduction. Scanning the business environment is the first step in effective business planning or development of business strategy. Effective frameworks and tools include PEST, PESTLE, SLEPT, STEPE etc. Scanning the business or operating environment helps to provide the decision makers with the context within which to make an informed decision. Often in business we look in-wards, we undertake a SWOT analysis and then make a decision based upon that.