In the end, managers must complete all three steps environmental scanning, interpreting environmental factors, and acting on threats and opportunities to make sense of changing external environments. Environmental scanning helps managers more accurately interpret their environmental and take actions that improve company performance. Through scanning, managers keep tabs on what competitors are doing , indentify market trends, and stay alert to current events that affect their company’s operations. Armed with the environmental information they have gathered, managers can then minimize the impact of threats and turn opportunities into increased profits.