What process involves assessing an organization's internal and external environment to identify opportunities and threats?

The process that involves assessing an organization's internal and external environment to identify opportunities and threats is known as an environmental scan. This method focuses on gathering and analyzing information about various factors that can impact an organization, such as economic conditions, technological trends, and competitive dynamics. By performing an environmental scan, organizations can better understand the context in which they operate, making it easier to identify potential opportunities for growth and any threats that could hinder their success.

While market analysis typically concentrates on understanding specific markets or consumer behaviors, strategic planning encompasses a broader range of activities aimed at setting long-term goals and determining the means to achieve them. SWOT analysis, on the other hand, is a specific tool that stems from an environmental scan and is used to identify and evaluate an organization's strengths, weaknesses, opportunities, and threats, synthesizing the insights gained from the broader environmental scan.