Identifying factors in business environment

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 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. Thank You