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Environmental Analysis


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Identifying factors in business environment

Identifying factors in business environment

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  • 1. Environmental Analysis Dr. Elijah Ezendu FIMC, FCCM, FIIAN, FBDI, FAAFM, FSSM, MIMIS, MIAP, MITD, ACIArb, ACIPM, PhD, DocM, MBA, CWM, CBDA, CMA, MPM, PME, CSOL, CCIP, CMC, CMgr
  • 2. Focus of Environmental Analysis • • • • STEEPLED Analysis Scenario Analysis Issue Analysis Stakeholder Analysis
  • 3. STEEPLED Analysis • • • • • • • • Social Factors Technological Factors Economic Factors Environmental (Ecological) Factors Political Factors Legal Factors Ethical Factors Demographic Factors
  • 4. Steepled Analysis is used for identifying attributes of keystone variables that make up an organization's external environment, in terms of current and future operations.
  • 5. Evolution of STEEPLED Analysis
  • 6. Social Factors • • • • • • • • • • Media views Tradition Values Norms Attitudes & Opinions Lifestyle Work-Week Social Events & Influences Religious beliefs Roles
  • 7. Technological Factors • • • • • • • • • Technology maturity Intellectual Property Energy Biotechnology Innovation Potential Research & Development Information Systems Communication Systems Manufacturing Capacity
  • 8. Economic Factors • • • • • • • • • • • Interest Rate Exchange Rate Taxation Availability of Credit Facilities International Trade Fiscal and Monetary Policies Per Capita Income Levels of Disposable Income Business Cycles Drivers of Economy Level of Unemployment
  • 9. Environmental Factors • • • • • • • • • Environmental Impact Climate Neutrality Clean Energy Pollution Triple Bottom Line Green Branding Issues Waste Disposal Recycling Sustainable Development
  • 10. Political Factors • • • • • Pressure Groups & Lobbying International Wars Internal Conflict Government Term Devolution of Power
  • 11. Legal Factors • • • • • Employment Law Health and Safety Law Competition Law Regional Legislation Investment Law
  • 12. Ethical Factors • • • • Reciprocal Responsibilities Responsibility to Host Community Good Faith Universal Rules
  • 13. Demographic Factors • • • • • • Household Patterns Ethnic Mix Educational Levels Age Distribution Number of People Within Working Age Group Net Inward Migration
  • 14. In application of STEEPLED Analysis, the implication of each factor would be ascertained, then rating system deployed to mark impact on the firm. Impact by type and impact over time would be determined.
  • 15. Scenario Analysis Scenario Analysis involves assessment of future events through development of probable outcomes and evaluating them.
  • 16. “Scenario Thinking is a discipline for encouraging creative and entrepreneurial thinking and action in contexts of change, complexity and uncertainty.” - Pierre Wack
  • 17. Scenario Process • • • • Set up questions. Make-out environmental factors. Identify the key driving forces. Execute ranking on the basis of uncertainty and importance. • Develop probable outcomes ( Scenarios) • Ascertain implication • Identify the chief indicators
  • 18. Building Scenarios Scenarios are built by reviewing trend along with counter trend, conducting comparisons and extrapolation whether in the simple form of narratives or complex techniques of Stochastic/ Bayesian modeling.
  • 19. Issue Analysis This involves thorough examination of an issue without focusing on other issues.
  • 20. How to Conduct Issue Analysis Step 1: Identify one major issue Step 2: List other issues that are related to it in order of importance, and discuss them. Step 3: Identify the background of the issue. Step 4: Identify all alternatives Step 5: Identify criterion for measuring an alternative against another. The criterion may be profitability, efficiency, effectiveness, feasibility, timing, public acceptance or cost. Step 6: Ascertain impact of each criterion on every stated alternative using two strokes of assessment, the first by scoring and the second by comparison. (positive impact= +1, neutral or not sure= 0, negative impact=-1) Step 7: Recommendation
  • 21. Stakeholder Analysis This is a process of identifying influence, position, importance and behaviour of stakeholders.
  • 22. How to Conduct Stakeholder Analysis Step 1: Identify relevant stakeholders Step 2: Ascertain relationships between stakeholders. Step 3: Identify Interests of each stakeholder. Step 4: Identify implication of action Step 5: Ascertain necessary action of organisation
  • 23. When To Use Stakeholder Analysis • • • • • Before entering new market Before negotiation Before implementing change Before launching new product Before setting-up a new factory
  • 24. Dr Elijah Ezendu is Award-Winning Business Expert & Certified Management Consultant with expertise in HR, OD, Competitive Intelligence, Strategy, Restructuring, Business Development, Sales & Marketing, Interim Management, CSR, Leadership, Project & Programme Management, Cost Management, Outsourcing, Franchising, Intellectual Capital, eBusiness, Social Media, Software Architecture, Cloud Computing, eLearning & International Business. He holds proprietary rights of various systems. He is currently CEO, Rubiini (UAE) and Hon. President, Worldwide Independent Inventors Association. He functioned as Chair, International Board of GCC Business Council (UAE); Senior Partner, Shevach Consulting, Nigeria; Chairman (Certification & Training), Lead Assessor & Council Member, Institute of Management Consultants, Nigeria; Lead Resource, Centre for Competitive Intelligence Development; Lead Consultant, JK Michaels; Technical Director, Gestalt; Chief Operating Officer, Rohan Group; Director, Fortuna, Gambia; Director, The Greens; Director of Programmes & Council Member, Institute of Business Development, Nigeria; Member of TDD Committee, International Association of Software Architects, USA; Member of Strategic Planning and Implementation Committee, Chartered Institute of Personnel Management of Nigeria; Adjunct Faculty, Regent Business School, South Africa; Adjunct Faculty, Ladoke Akintola University of Technology, Nigeria; Editor-in-Chief, Cost Management Journal; Council Member, Institute of Internal Auditors of Nigeria. He holds Doctoral Degree in Management, Master of Business Administration and Fellowship of Several Professional Institutes in North America, UK & Nigeria. He is an author & widely featured speaker in workshops, conferences & retreats. He was involved in developing Specialist Master’s Degree Course Content for Ladoke Akintola University of Technology (Nig) and Jones International University (USA). He also works as Adjunct & Visiting Professor of Universities and holds Interim Management Assignments on Boards of Companies.
  • 25. Thank You