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Analysis of situation: Environmental Scan such as, Demographic-, Economic/ Analyze Economy, Socio-Cultural, What influence? Natural/Availability, Technological, Political Legal , Competitive. An environmental analysis surveys the business landscape to determine how external variables will affect its decision-making. Robert Grant, author of the book, “Contemporary Strategy Analysis,” categorizes environmental influences as either source or proximity. Grant explains that sources include political, economic, social and technological factors; these factors form what’s known as a PEST analysis. The business is not always in a position to control these variables; it can only plan for them and make decisions accordingly. Companies use an environmental analysis to prepare for a variety of potential scenarios. For instance, an organization may prepare for a downturn in the economy by drafting several production schedules that are contingent on different levels of consumer demand.