Environmental Analysis


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Identifying factors in business environment

Published in: Business, Technology

Environmental Analysis

  1. 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. 2. Focus of Environmental Analysis • STEEPLED Analysis • Scenario Analysis • Issue Analysis • Stakeholder Analysis
  3. 3. STEEPLED Analysis • Social Factors • Technological Factors • Economic Factors • Environmental (Ecological) Factors • Political Factors • Legal Factors • Ethical Factors • Demographic Factors
  4. 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. 5. Evolution of STEEPLED Analysis
  6. 6. Social Factors • Media views • Tradition • Values • Norms • Attitudes & Opinions • Lifestyle • Work-Week • Social Events & Influences • Religious beliefs • Roles
  7. 7. Technological Factors • Technology maturity • Intellectual Property • Energy • Biotechnology • Innovation Potential • Research & Development • Information Systems • Communication Systems • Manufacturing Capacity
  8. 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. 9. Environmental Factors • Environmental Impact • Climate Neutrality • Clean Energy • Pollution • Triple Bottom Line • Green Branding Issues • Waste Disposal • Recycling • Sustainable Development
  10. 10. Political Factors • Pressure Groups & Lobbying • International Wars • Internal Conflict • Government Term • Devolution of Power
  11. 11. Legal Factors • Employment Law • Health and Safety Law • Competition Law • Regional Legislation • Investment Law
  12. 12. Ethical Factors • Reciprocal Responsibilities • Responsibility to Host Community • Good Faith • Universal Rules
  13. 13. Demographic Factors • Household Patterns • Ethnic Mix • Educational Levels • Age Distribution • Number of People Within Working Age Group • Net Inward Migration
  14. 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. 15. Scenario Analysis Scenario Analysis involves assessment of future events through development of probable outcomes and evaluating them.
  16. 16. “Scenario Thinking is a discipline for encouraging creative and entrepreneurial thinking and action in contexts of change, complexity and uncertainty.” - Pierre Wack
  17. 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. 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. 19. Issue Analysis This involves thorough examination of an issue without focusing on other issues.
  20. 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. 21. Stakeholder Analysis This is a process of identifying influence, position, importance and behaviour of stakeholders.
  22. 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. 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. 24. Dr Elijah Ezendu is Award-Winning Business Expert & Certified Management Consultant with expertise in Interim Management, Strategy, Competitive Intelligence, Transformation, Restructuring, Turnaround Management, Business Development, Marketing, Project & Cost Management, Leadership, HR, CSR, e- Business & Software Architecture. He had functioned as Founder, Initiative for Sustainable Business Equity; Chairman of Board, Charisma Broadcast Film Academy; Group Chief Operating Officer, Idova Group; CEO, Rubiini (UAE); Special Advisor, RTEAN; Director, MMNA Investments; Chair, Int’l Board of GCC Business Council (UAE); Senior Partner, Shevach Consulting; Chairman (Certification & Training), Coordinator (Board of Fellows), Lead Assessor & Governing Council Member, Institute of Management Consultants, Nigeria; Lead Resource, Centre for Competitive Intelligence Development; Lead Consultant/ Partner, JK Michaels; Turnaround Project Director, Consolidated Business Holdings Limited; Technical Director, Gestalt; Chief Operating Officer, Rohan Group; Executive Director (Various Roles), Fortuna, Gambia & Malta; Chief Advisor/ Partner, D & E; Vice Chairman of Board, Refined Shipping; Director of Programmes & Governing 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; Country Manager (Nigeria) & Adjunct Faculty (MBA Programme), Regent Business School, South Africa; Adjunct Faculty (MBA Programme), Ladoke Akintola University of Technology; Editor-in-Chief, Cost Management Journal; Council Member, Institute of Internal Auditors of Nigeria; Member, Board of Directors (Several Organizations). He holds Doctoral Degree in Management, Master of Business Administration and Fellow of Professional Institutes in North America, UK & Nigeria. He is Innovator of Corporate Investment Structure Based on Financials and Intangibles, for valuation highlighting intangible contributions of host communities and ecological environment: A model celebrated globally as remedy for unmitigated depreciation of ecological capital and developmental deprivation of host communities. He had served as Examiner to Professional Institutes and Universities. He had been a member of Guild of Soundtrack Producers of Nigeria. He's an author and extensively featured speaker.
  25. 25. Thank You