statergic management chapter 4

8/9/2019 statergic management chapter 4

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Strategic Analysis of the ExternalEnvironment

Kevin Hinde
http://www.kevinhinde.com/


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May 16, 20102

Aims

we will be examining some of the

techniques used by organisations toexplore the complex and uncertain external

environment over the short, medium and

long term.


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Learning Outcomes

Identify a number of techniques for assessing

the external environment.

Undertake a PESTEL analysis of your

organisation and compare it with those from

other organisations.

Work through a web based assignment on

scenario planning

demonstrate awareness of the complexities

involved in assessing dynamic environments.


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May 16, 20104

A Copernican view of the

Organisation.

Network

org

unions

suppliers

regulators

customers

specialinterests

partners

competitors


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May 16, 20105

org

A

B

C

A Ptolemaic view


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Why Environmental Analysis?

To provide information on emerging issues andtrends. to develop networks and partnerships among the

scanners and their organisations

To educate the participants about the scanningfunction and about specific issues and trends

To provide useful information for the strategyprocess.

Bryson (1995)


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Bryson (1995)

It is important too that

key issues are selected. The issues cycle is understood

(i.e. when fundamental policy questions or challenges

that affect an organisation, or communitys, mandate,

mission and values; product or service level mix;clients, users, or payers; or costs, financing,

management or organisational design).

Arecord of the process is kept.


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Techniques for Monitoring the

Environment

TheOrganisation

Political

Technological Economic

Social


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Porter's Five Forces Model

Substitutes

BuyersCompetitive

RivalrySuppliers

Potential

Entrants

Bargaining

Power

Bargaining

Power

Threat

of Entry

Threat

of

Entry

Source: Porter

(1985)


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Techniques for determining future

trends

Scenario Planning.

The Delphi method.


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7

Results are written up,conclusions drawn

1

Choose a Panel of Experts

2

Phrase the questions or issues, or

describe the possible futures on

which an opinion has to be sought

3

Panelists, individually and anonymously, express

their views on the questions or issues, or on the

likelihood of the different futures.

4

Results are collate and summarised.

5

Results are fed back to the

panelists. No individual viewsare capable of identification.

6

Panelists submit revised

views

6b

If necessary, ask those

who still hold extreme

views to feed in,

anonymously, the

reasons for their views.

1a

Consult experts on

questions, issues and

possible futures to be

considered

6a

Repeat steps 4, 5

and 6 if necessary

to reach

consensus.

The Delphi Technique

Source: Smith (1994)

p.67


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Auditing the Future: Bryson (pps.

87- 89)

Social and organisational complexity.

Privatisation and the consequent interaction among

public, private and non-profit organisations. Continuation of technological change.

Limited public sector resources and Growth.

Diversity of of the Workforce, customer base, andcitizenry.

Individualism, personal responsibility, and communityinvolvement.

Quality of life and environmentalism.

Transitions with continuity, not revolution.


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TRENDS PERCEPTIONS SCENARIOS

DEMOGRAPHY

TECHNOLOGY

COMPETITION

ECONOMIC

AWARENESS

NEW

POLITICAL

INSTITUTIONS

EUROPECONSUMERISM

(ANTI-

MONOPOLY)

POLITICAL

DYNAMIC

RESOURCE

SCARCITY

REGULATORY

EXPANSION

Re-emphasis on the nature ofpublic service delivery

Re-positioning of public

service functions

Scenarios for Public Services: Based on work by past students

Public Services in 2015?


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Web Exercise:Scenario Planning


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And Finally...

Summary.

Have you covered the learning outcomes?Any Questions?

statergic management chapter 4

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