Assertion: Identifying threats and opportunities in the market can serve as a basis of formulation of strategies to counter threats and capitalize opportunities in the market.
Reasoning: Environment scanning helps in tapping useful resources.
Reasoning: Environment scanning helps in tapping useful resources.
Answer & explanation
Correct answer: option 2
Both Assertion (A) and reasoning (R) are correct and but R is not the correct explanation of A.
Formulation of strategies and policies: It helps in identifying threats and opportunities in the market. These can serve as the basis of formulation of strategies to counter threats and capitalise on opportunities in the market.
Tapping useful resources: If the company has a thorough knowledge of the external environment, it can tap raw materials, technology and even financial resources from the market at economical prices, at the right time.
Formulation of strategies and policies: It helps in identifying threats and opportunities in the market. These can serve as the basis of formulation of strategies to counter threats and capitalise on opportunities in the market.
Tapping useful resources: If the company has a thorough knowledge of the external environment, it can tap raw materials, technology and even financial resources from the market at economical prices, at the right time.