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.
A team approach to completing an Environmental Scan includes these steps: Each team member researches one or more of the external or internal factors. Each team member prepares a list of relevant factual data for the individual external or internal factor they are researching.