module 08 strategy and external business context
TRANSCRIPT
Business Analysis
The Business Context
What is Business Context?
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External Environment Analysis
Understanding the External Environment in which the organization operates and is influenced by.
¤ PEST Analysis (general external forces)
¤ Porters Five Forces (specific external forces)
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PEST Analysis
Analyzing the external environment of the organization by looking at four sources of changes that affect an organization, primarily (PEST)
¤ Political (P)¤ Economical (E)¤ Social (S)¤ Technological (T)
Identify emerging opportunities or give advance warnings of significant threats that lie ahead.
Awareness allows taking actions to either use the potential that lie ahead or divert the threats.
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PEST Analysis
¤ Workshops or brainstorming sessions
¤ Discuss each identified factor that is¤ outside of the sphere of influence of the organization and¤ will have some level of impact.
¤ Prioritized and the most relevant ones can result in some kind of action by the organization.
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PEST Analysis
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New Plagiarism System
A university wants to introduce a new plagiarism system.
¤ Would a PEST analysis do any good - yes/no and why?)
Ø What would be the P, E, S and T?
Ø How would it be relevant or matter?
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Porters Five Forces
The Five Forces analysis also examines the business environment but is confined to the business environment or the industry in which an organization is active.
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By Denis Fadeev (Own work) [CC BY-SA 3.0 (http://creativecommons.org/licenses/by-sa/3.0)], via Wikimedia Commons
Critique of Five Forces
Indirect encouragement for developing strategies that builds competitive advantage based on avoiding competition.
What aboutProduct Innovation?Product Development?Value to Customers?
Discussion: Does this model apply to “digital” era?
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Digital Disruption?
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By Denis Fadeev (Own work) [CC BY-SA 3.0 (http://creativecommons.org/licenses/by-sa/3.0)], via Wikimedia Commons
Digital Technology and Disruption?
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By Denis Fadeev (Own work) [CC BY-SA 3.0 (http://creativecommons.org/licenses/by-sa/3.0)], via Wikimedia Commons
Summary
Business Context
• PEST• Five Forces
External Environment
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