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How do we analyse the strategic environment?  Video Summary Chapter 3 ©   Copyright Richard Lynch 2009. All rights reserved
Analysing the main elements of the environment Environment Resources Purpose Options Options Options Choice Implement This session
Analysing the strategic environment - 1  The nine basic analytical tools Company or public sector organisation Environment basics Degree of turbulence PESTEL analysis Industry life cycle Key factors for success Five Forces analysis Four Links analysis Competitor analysis Customer analysis See : Lynch, Chapter 3
Step 1: General evaluation ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],See : Lynch Ch 3, Section 3.2
Step 2: Measure the degree of turbulence ,[object Object],[object Object],[object Object],Turbulence level Low High See : Lynch, Ch 3, Section 3.3
Step 3: Factors influencing many industries  PESTEL Analysis ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],See: Lynch Ch 3, Section 3.4
Step 4: Growth and Life-Cycle Analysis ,[object Object],[object Object],Sales Time Introduction Growth Maturity Decline Cash user phases Cash generator phases See : Lynch Ch 3 Section 3.5
Step 5: Factors specific to the industry  Key Factors for Success ,[object Object],[object Object],[object Object],See:  Lynch checklist of KFS areas: Section 3.6
Step 6: Factors specific to competition  Five Forces  Analysis Customers : have high, medium or low bargaining power based on size of order, etc Suppliers : have high, medium or low bargaining power depending on what they supply – patented, quality, etc Potential entrants : high, medium or low threat of new entrants based on barriers to entry Substitutes : high, medium or low threat based on ease of alternative, etc. Industry competitors Industry competitors :   high, medium or low threat based on competitors’ resources, plans, etc. Copyright M.E . Porter 1980
Step 7: Factors specific to co-operation  Four Links  Analysis The organisation Informa l co-operative links and networks Formal  co-operative links Government links and networks Complementors Underpinning logic: economic benefits derived from working together See : Lynch Section 3.8
Step 8: Factors specific to immediate competitors ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Examine  in   depth  for a few rivals only See : Lynch Section 3.9
Step 9: Customer analysis  Demand, Segmentation and Positioning ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Examine  in   depth  for company’s products Keypoint: Competitive analysis is important in strategy, but ultimately it is the  Customers  who make the buying decision See : Lynch, Section 3.10

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Strat Man 5th Ed Ch3 Slctd Slides

  • 1. How do we analyse the strategic environment? Video Summary Chapter 3 © Copyright Richard Lynch 2009. All rights reserved
  • 2. Analysing the main elements of the environment Environment Resources Purpose Options Options Options Choice Implement This session
  • 3. Analysing the strategic environment - 1 The nine basic analytical tools Company or public sector organisation Environment basics Degree of turbulence PESTEL analysis Industry life cycle Key factors for success Five Forces analysis Four Links analysis Competitor analysis Customer analysis See : Lynch, Chapter 3
  • 4.
  • 5.
  • 6.
  • 7.
  • 8.
  • 9. Step 6: Factors specific to competition Five Forces Analysis Customers : have high, medium or low bargaining power based on size of order, etc Suppliers : have high, medium or low bargaining power depending on what they supply – patented, quality, etc Potential entrants : high, medium or low threat of new entrants based on barriers to entry Substitutes : high, medium or low threat based on ease of alternative, etc. Industry competitors Industry competitors : high, medium or low threat based on competitors’ resources, plans, etc. Copyright M.E . Porter 1980
  • 10. Step 7: Factors specific to co-operation Four Links Analysis The organisation Informa l co-operative links and networks Formal co-operative links Government links and networks Complementors Underpinning logic: economic benefits derived from working together See : Lynch Section 3.8
  • 11.
  • 12.