strategic management business environment scanning general
TRANSCRIPT
Business Environment ScanningLecture Outline
• Layers of the Business Environment
• The Macroenvironment
• PESTEL
• Porter’s National Diamond
Business Environment Scanningand SWOT Analysis
• Strengths ) Analyses organisational
) resource capability.
• Weaknesses ) Internal Analysis
• Opportunities ) Analyses business
) environment.
• Threats ) External Analysis
Critical Success Factors
• Those product and service features that are particularly valued by customer groups and, therefore, where an organisation must excel in order to outperform competitors.
• Typical CSFsReputation Architecture InnovationAfter-sales serviceDelivery reliabilityTestingTechnical quality
Understanding the Macro-Business Environment
• Diversity– Many different influences (or just a few)?
• Complexity– Interconnected or isolated influences?
• Speed of change (particularly IT)– Turbulent and Chaotic?
or– Placid and Predictable
Nature of Business Environment(Emery and Trist)
Complex Dynamic
Slow SPEED OF Fast CHANGE
Many
NUMBER OFINFLUENCES
Few
Complex Stable
Simple Stable
Simple Dynamic
Macroenvironment – PESTEL
Political• Government stability• Taxation policy• Foreign trade
regulations• Social welfare
policies
Economic• Business cycles• GNP trends• Interest rates• Money supply• Inflation• Unemployment• Disposable income
Macroenvironment – PESTEL Sociocultural
• Population demographics
• Income distribution• Social mobility• Lifestyle changes• Attitudes to work and
leisure• Consumerism• Levels of education
Technological• Government spending on
research• Government and industry
focus on technological effort
• New discoveries /developments
• Speed of technology transfer
• Rates of obsolescence
Macroenvironment – PESTEL
Environmental• Environmental
protection laws• Waste disposal• Energy consumption
Legal• Competition law• Employment law• Health and safety• Product safety
Key Aspects of PESTEL Analysis
• Not just a list of influences
• Need to understand key drivers of change
• Focus is on future impact of environmental factors
Determinants of National Advantage in a Global Business Environment
• Some countries are more competitive than others
• Some industries within countries are more competitive than others