1 Could the Maltese Government have identified the threat at an earlier point in time through enhanced environmental sensitivity?

Fahey and Narayanan’s (1986) model of the macro-
environment stresses that the environment can only be understood as a system in which each factor is related to and affects every other factor. This model offers a framework of analysis for identifying, tracking, projecting and assessing trends and patterns in the global macro-environment. It consists of four analytical stages:
• Scanning the environment to detect ongoing and emerging change.
• Monitoring specific environmental trends and patterns to determine their evolution.
• Forecasting the future direction of environmental changes.
• Assessing current and future environmental changes for their strategic and organizational implications.
Malta, a southern European country, consists of an archipelago in the middle of the Mediterranean Sea.
Malta covers 316m² in land, making it one of the smallest states. Malta’s strategic location has been given importance over the years following a succession of powers. The country was admitted to the UN in 1964 and to the EU in 2004. Malta is party to the Schengen agreement, becoming part of the Eurozone in 2008.
Due to its prominent location, this strategic position has allowed Malta to develop itself as an important trading post. Geographically the distance between Malta and the nearest point on the North African Mainland is 288km. Following the Nationalist Party elected to office in 1987, relations with Libya were re-structured.