Target Exam

CUET

Subject

Business Studies

Chapter

Business Environment

Question:

Which of the following techniques is not used for environmental scanning?

Options:

SWOT Analysis

Budgetary Analysis

PESTEL Analysis

Industry Analysis

Correct Answer:

Budgetary Analysis

Explanation:

The correct answer is Option (2) → Budgetary Analysis

Budgetary Analysis is a technique used for internal control, financial planning, and performance evaluation after decisions have been made. It deals with allocating funds and comparing actual financial performance to planned performance, not with identifying future external trends or threats. 

  • Environmental Scanning involves systematically surveying and interpreting external factors (like political, economic, social, technological, etc.) and internal factors that can influence an organization's future.

  • SWOT Analysis (Strengths, Weaknesses, Opportunities, Threats) is a direct tool for scanning, as it specifically identifies external Opportunities and Threats.

  • PESTEL Analysis (Political, Economic, Socio-cultural, Technological, Environmental, Legal) is a fundamental and explicit framework for scanning the entire macro-environment.

  • Industry Analysis (like Porter's Five Forces) is a method for scanning the immediate task environment (competitors, suppliers, customers).