Surplus causes disequilibrium in the supply and demand of a product. This imbalance means that the product cannot flow through the market efficiently. However, the cycle of surplus and shortage has a way of balancing itself out.
Environmental scanning is the term used to describe the acquisition and use of information gleaned from sources external to your company. Scanning can be thought of as a form of early-warning radar that lets managers look into the future.
Why are environmental scanning and analysis so important? To monitor changes in external forces that has influence on the organisation marketers should practice enviro. scanning and analysis. Environmental scanning is the process collecting information about the forces in marketing environment. Enviromental analysis is the process of assessing and interpreting the information obtained in scanning.