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Lesson Two : Environmental scanning and STEEP Analysis
Adapted from the Heriot Watt University ppt slides
1 sl/bmbe/2016
Vision &
mission Swot analysis
STEEP & Scenarios Planning
Strategic analysis & options
decision making
implementation
Evaluation & monitoring
D39BU – Business Management in the Built Environment
feedback
feedback
2 sl/bmbe/2016
A Model of Strategy Process
Strategic Analysis
Strategy Implementation Strategic
Choice
Environment Resource Capability
Organisational Structure
Selecting a Strategy
Stakeholder Expectations
Identifying Options
Strategic Capability
The Built Environment
Business Management in the Built Environment
3 sl/bmbe/2016
Business Management in the Built Environment
Environmental analysis
MACRO ENVIRONMENT STEEP ANALYSIS
Industry Environment Suppliers Competitors Customers
SOCIAL
TECHNOLOGICAL
ECONOMICS
POLITICAL
ENVIRONMENTAL
Pg 4 unit 5 4 sl/bmbe/2016
Auditing Environment Influences
SOCIAL
TECHNOLOGICAL ECONOMICS
POLITICAL
ENVIRONMENTAL
Strategic Analysis
STEEP ANALYSIS
Business Management in the Built Environment
5 sl/bmbe/2016
SOCIAL
TECHNOLOGICAL
ECONOMICS
POLITICAL
ENVIRONMENTAL
values / demographics / life styles
pressure groups / energy efficiency / resources
recession / interest rates / inflation / tax
election / policy / budget / legislation
new products / innovations / technological trends
Business Management in the Built Environment
Environmental analysis: The STEEP ANALYSIS
6 sl/bmbe/2016
Auditing Environment Influences
When Should STEEP be used?
Times of Uncertainty
Times of Information Overload
Times of Disorganization
Strategic Analysis
STEEP ANALYSIS
Business Management in the Built Environment
7 sl/bmbe/2016
Auditing Environment Influences
1. Comprehend the element of the environment
2. Assess interrelationships between trends
3. Relate trends to issues
4. Forecast the future direction of issues
5. Derive implications
Strategic Analysis
STEEP ANALYSIS
Business Management in the Built Environment
8 sl/bmbe/2016
Auditing the Built Environment
SOCIAL
TECHNOLOGICAL
ECONOMICS
POLITICAL
ENVIRONMENTAL
Strategic Analysis Affordable
Housing
Systems Building
Waste Management Recession
PFI / PPP
Business Management in the Built Environment
9 sl/bmbe/2016
Auditing the Built Environment
Strategic Analysis
Affordable Housing
Systems Building
Waste Management
Recession
*PFI / PPP
Business Management in the Built Environment
Note:* PFI = Private Finance Initiatives PPP = Public Private Partnerships
10 sl/bmbe/2016
Resource & Strategic Capabilities
STRENGTHS
WEAKNESSES OPPORTUNITIES
THREATS
Strategic Analysis
SWOT ANALYSIS
Business Management in the Built Environment s;l/2015
11 sl/bmbe/2016
Resource & Strategic Capabilities
Positive Factors
Internal Audit
STRENGTHS WEAKNESSES
THREATS OPPORTUNITIES
External Audit
(Potentially) Negative Factors
Business Management in the Built Environment
12 sl/bmbe/2016
Resource & Strategic Capabilities
STRENGTHS WEAKNESSES THREATS OPPORTUNITIES
STAFF TURNOVER PROFIT GROWTH
STAFF POOR MARKET LOW PROFIT INNOVATION
DIVERSIFY ALLIANCES SKILLS FUNDING
ECONOMY STAFF LEAVE TECHNOLOGY CASH FLOW
SWOT Summary
STEEP & SWOT Analysis / Interpretation
Business Management in the Built Environment
13 sl/bmbe/2016
STEEP & SWOT Analysis & Interpretation
Use in conjunction with other techniques
STEEP & SWOT Analysis / Interpretation
Porter’s Five Forces
Porter’s Generic Strategies
Boston Consulting Group Matrix
Diversification Analysis
Business Management in the Built Environment
14 sl/bmbe/2016
Analysis of strategic position of the organisation
Identify key Forces through 5-Forces structural analysis
Examine and idendify Opportunities and threats Through SWOT
Audit the envm influences
Identify the firm’s position In the industry
Examine the nature of envm
Strategic position
Pg 2 of Unit 5
Business Management in the Built Environment
15 sl/bmbe/2016
Analysis of strategic position of the organisation
Identify key Forces through 5-Forces structural analysis
Examine and idendify Opportunities and threats Through SWOT
Audit the envm influences
Identify the firm’s position In the industry
Examine the nature of envm
Strategic position
Pg 2 of Unit 5
Business Management in the Built Environment
16 sl/bmbe/2016
COMPETITIVE RIVALRY
Potential Entrants
Suppliers Buyers
Substitutes
Threat of Entrants
Bargaining Power
Bargaining Power
Threat of Substitutes
Business Management in the Built Environment Michael Porter’s 5 forces
17 sl/bmbe/2016
Business Management in the Built Environment
18 sl/bmbe/2016
Exam question: (for discussion) Critically appraise Porter’s five forces model, provide a view on the school of thought that underpins the model and explain how the model could be used by a built environment organisation to develop organisational strategy. REFER TO Pg : 4-7 OF UNIT 5 (TEXT)
This question will be discussed in lesson 5
Business Management in the Built Environment
19 sl/bmbe/2016
The Built Environment:
Civils Construction Housing
Public / Private (Spending)
R & M
The UK Construction Industry (GDP)
Strategic Direction (Markets / Portfolio / Competition)
STEEP ANALYSIS
Business Management in the Built Environment
20 sl/bmbe/2016
The Built Environment:
Civils Construction Housing
Public / Private (Spending)
R & M
The Singapore Construction Industry (GDP)?
Strategic Direction (Markets / Portfolio / Competition)
STEEP ANALYSIS
Business Management in the Built Environment
21 sl/bmbe/2016
Industry Statistics:(Companies / Employment)
Client Involvement:(Novice / Enlightened)
Characteristics:(Project-based / Sub-Contracting)
Procurement:(Contractual Governance / Route)
Modern Methods of Construction:(incl. Environmental)
Future Strategies:(Consolidation / Merger / Acquisition)
Challenges in the Built Environment
Business Management in the Built Environment
22 sl/bmbe/2016
Discussion & assignment (exam Question)
As the senior executive of a built environment firm, critically appraise and discuss what you consider to be the key issues and their impact upon the environment within which the organisation competes. Furthermore clearly explain how these issues affect the organisation’s strategy.
Business Management in the Built Environment
Sl/2015
23 sl/bmbe/2016