There are three main approaches to environmental analysis. These are given below:
- Systematic Approach: Under this approach, information for environmental analysis is collected systematically. Information about the environmental factors having direct impact on the organization is collected regularly. Continuous updating enables the organization to monitor changes in the environment.
- Ad hoc Approach: In this approach, an organization conducts special surveys and studies to understand trends in the environment from time to time. Such studies may, for example, be undertaken when the organization is to launch new projects or to develop new strategies. Unforeseen developments may also be investigated with respect to their impact on the organization.
- Processed form Approach: Using this approach, the organization uses information in a processed form available from various sources both inside and outside the organization. When an organization uses information published by government and private institutions, it makes use of secondary data which is available in a processed form.