INVIRONMENTAL

SCANNING
The environment of business is vast with
opportunities and the entrepreneur must have
greater look into this potential as well as the
conditions prevailing in the community.
1. Business
location for small
entrepreneur

A retail outlet would need a site that is

convenient to prospective customers in
terms f parking space or availability of
transportation.
a. Rent and space.

The cost of rent is a monthly expense and

it must be sustained with the possible
income that will be generated.
The price input must be competitive
enough with those in the same location
b. Terms of lease agreement.

The terms of lease must be studied

carefully as some owners of space might
take advantage of lease.
The owners increase the rent of the space
when the business condition becomes
favorable and then take over the business.
c. Type of goods and merchandise.

They need quick and easy access to

the store and would not spend a lot
of time to purchase their goods.
d. Income level of prospective
customer.
A good store or shop with facilities or air
conditioning units and other amnesties
need to be located in the community with
higher income bracket.
e. Prospective sale volume.

High density sales volume need to be

located in shopping area where
customers conserved to buy essential
goods.
f. Municipal or city ordinances
including taxes and fees.
The location must not violate city or
municipal ordinances and the taxes
and fees must be reasonable for the
owners of business.
g. Location of the areas

The areas must be free from flood

and other calamities that will
endanger the business
2. Location for small industrial plant
or manufacturing facilities.
This is need to be studied carefully as a
plant location is a great factor in the
investment of funds and its profitability in
the long run
The industrial facility must be suitable to
the kind of operation.
 a. Land and area

The contour of the land its size and shape must

be suitable to the plant site.
It must be free from flood or other environmental
hazard that will disturb the operation.
The assess value of the property must be
reasonable as expenses t start up the operation
requires a lot of many .
It also a factor in the payment of taxes.
b. Facilities for expansion

The land area must be ample space for

plant expansion and provision for parking
facilities for customers and employees.
Anticipation of growth and expansion in
plant facilities should be considered as
additional site in the future may create a
problem
c. Power and utilities.

Availability of power supply and the cost

of electricity ownership and describe the
management component of the business
organization.