pob stage 2_session_1_seminar_4
TRANSCRIPT
Seminar 4: Introduction to the Business Environment
Stage 2 Session 1
Principles of Business
Overview
• Review of the whole module
• SWOT analysis
• PESTEL analysis
• LoNGPEST analysis
• Scenario Planning
• A major case study
2
Learning outcomesof this Seminar
• To be able to carry out a full environmental analysis on an organisation using the full range of techniques learned.
3
Why do organisations scan their environments?
• To be able to compete effectively.
• To be able to make better informed decisions.
• To understand where to strengthen the business.
• To be aware of the dynamic and changing nature of the environment they work in.
• To inform their overall long term and strategic planning approach.
• To highlight potential threats and opportunities within a timescale that enables effective action to be taken.
• Sometimes they get it wrong, as we see in the cases of Kodak, Nokia and others.
Carrying out a SWOT analysis
STRENGTHS WEAKNESSES
OPPORTUNITIES THREATS
What are your strengths?What do you do better than others?
What unique capabilities and resources do you possess?
What do others perceive as your strengths?
What are your weaknesses?What do your competitors do better
than you?What could you improve given the
current situation?What do others perceive as your
weaknesses?
What trends or conditions may positively impact you?
What opportunities are available to you?
What trends or conditions may negatively impact you?
What are your competitors doing that may impact you?
Do you have solid financial support?What impact do your weaknesses
have on your threats?
INTE
RN
AL
EXTE
RN
AL
The PESTEL analysis
Local or national governmental
issues
Alliances and agreements between
countries
Changes in government and
approaches to business
Changes in regulation
Changes in employment law
Spending
Economic growth
Exchange rates
Employment statistics
Taxation changes
Health conscious society
Age demographics
Lifestyle changes
Fashion changes
Multi-culturalism
Religious changes
Information and Communications
technology
New Machinery
Changes in energy
Social networks
Green issues
Corporate Social responsibility
Attitudes towards charity
Attitudes towards waste
New laws, repeals of old laws
Regulation again
Licensing
Driving laws
Tendency to be more litigious
Another way of looking at it - LoNGPEST
Political Economic Socio-cultural
Technological
Local Local authorities and associations
Local economy Local communityaffairs
Difficult to segregate but rise in new communicationsTechnology, social networks etc
National National government and employer bodies
Central monetary and fiscal policies.Stock market
Demographicchange, immigration, culture
Global Alliances and agreements or disagreements
Trading blocsWorld money markets
Global demo-graphics, cross cultural issues, religious issues
Scenario Planning:
• A strategic planning tool used to make flexible long term plans.
• A way of looking at how events could shape the future.
• A way of identifying how significant events, the protagonists involved and the way they act will impact on the business.
• A way of helping organisations decide how best to face the future.
6 steps to Scenario Planning
www.jiscinfonet.ac.uk/tools/scenario-planning
1. SCOPINGWhat is the question you want to address?
3. BUILDING
SCENARIOS
Using your outcomes from the first two steps, build your
scenarios to explore.
2. TREND ANALYSIS
Consider the external forces in operation and consider the
pressures they play.
4. GENERATE OPTIONS
Consider the options available within the
scenarios -innovations,new services,
projects or opportunities.
5. TEST OPTIONS
Identify and discuss potential
implications and impacts of
scenarios on the identified options.
6. ACTION PLAN
Define an action plan as a result of these
activities.
Bringing it all together
• We have now looked at four different methods of analysing the organisational environment.
• Now is your chance to put it all into practice with one large case study.
Paxton and Giles
• You are a team of consultants brought in to undertake an analysis of the strategy of Paxton and Giles.
• It is up to you how you organise yourselves but you have:
• 10 minutes to reacquaint yourself with the case study.
• 30 minutes to undertake your analyses.
• 15 minutes to coordinate your thoughts.
• 15 minutes to present back on your findings and recommendations.
• End of Seminar