business environment analysis
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Business Environment Analysis
Industrial Management Institute
By Morteza Imanirad
1388
Figure 1.1 The business organisation as a transformation system
Figure 1.2 The firm in its environment
• Business organization
• national environment Business organization
• International environment
Figure 1.3 Two levels of environment
Key ‘Post Modern’ Assumptions
• Our understanding of reality is socially constructed
• Multiple realities exist about the same ‘thing’
• Impossible to separate object from subject
• Know your frame!
Skills for Leadership (c) Gareth Morgan
Do “The Pig”
Gareth Morgan, Imaginization
Skills for Leadership (c) Gareth Morgan
ontologywhat is real ?
Objective Subjective
InternalA posteriori
ValuesQualitative
ExternalA prioriFacts
Quantitative
Epistemology How do we know?
Objective Subjective
Post-ModernPerceptionExperience
EmotionPatterns
ModernReason
EvidenceValidLaws
Skills for Leadership (c) Gareth Morgan
Skills for Leadership (c) Gareth Morgan
Multiple Views
• What do you see?
Skills for Leadership (c) Gareth Morgan
“You don't see something until you have the right metaphor to let you perceive it”. Thomas Kuhn
“Believing is seeing.” Karl Weick
Skills for Leadership (c) Gareth Morgan
Framing and Reframing
• Frames are sets of assumptions and mental models that act as a window on the world.
• Frames are both conscious/explicit and unconscious/implicit.
• Frames determine what we see and how we interpret what we see.
• We need skills in engaging multiple models and learning how to reframe situation.
بخشهای به شما شود می باعث چیزی چه اید نشسته تاتر یک در وقتیبکنید بیشتری توجه تاتر از : خاصی
what is it that determines what you see ?
هستیم • که باهستیم • حالی چه درایم • نشسته کجا•..........
Lighting makes you see whatever it wants you to see . It can hide stuff that exist.
Skills for Leadership (c) Gareth Morgan
Traps of Frames: Psychic Prisons
• Taken-for-granted frames render us blind to new types of data.
• We tend to seek out data that is consistent with our frames.
• When we believe in our frames we tend to ignore, distort or deny information that is inconsistent with what the frame suggests should be there.
Skills for Leadership (c) Gareth Morgan
Surface Assumptions and Ask Questions
• Through Asking Questions you can Reveal the Taken-for-Granted Assumptions that Limit Thinking on any Topic
• e.g. the 5 Why’s?• Why?
• Why?– Why?
» Why?» Why?
Skills for Leadership (c) Gareth Morgan
Morgan’s Five Why’sIn the first box describe the situation/ problem or issue. Ask Why? Put the answer in
the next box and repeat the process.
– Why?
– Why?
– Why?
– Why?
– Why?
Situation
Answer to Why?
Answer to Why?
Answer to Why?
Answer
Answer to Why?
Skills for Leadership (c) Gareth Morgan
Linear Causation
A B C D = E
Skills for Leadership (c) Gareth Morgan
Multiple Causation
A
B C
D
E
There is often a tendency to choose one and revert back to linear causation models
Skills for Leadership (c) Gareth Morgan
Systems Thinking
A
B
C
DE
Patterns Symmetry Network of
Interconnections Nothing exists
independent of the relationships that exist among the other components
Skills for Leadership (c) Gareth Morgan
Skills for Leadership (c) Gareth Morgan
Two grand paradigms
• Newtonian Model • Quantum physics model
Different approaches to environment
• Individualistic approach ( newtonian model)– Win-lose approach– Win-win approach
• Spiritualistic approach (Quantum physics model)
Newtonian Model• Newtonian models conceives universe as little billiard balls• Ideas such individualism and replaceable parts in industrial
settings emerged from Newton’s idea of atomism• Aloneness, isolation, objectivism and positivism all are
emerged from Newtonian perspective.• Environment is something external to the firm • When we act like a collection of bouncing billiard balls in a
box, we're often acting against each other. There's a lot of conflict, competition, jealousy, grudges, and anger
• today's business culture is operating from the four negative motivations of fear, greed, anger, and self-assertion
Quantum physics paradigm• Universe as concretized balls that take no different • When two quantum systems meet,they combine and overlap their
total identity.• All the patterns of dynamic energy within these systems change
dramatically in relation to each other, leading to the emergence of a
• " It's not separation; it's integration. It's not isolation; it's an understanding that we're all part of one great big interwoven system
• You don't get the same kind of conflict, grudges, and anger because you've all become part of one system working together
• You grow together and you create together
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