Strategic Management:

Strategy Formulation

Business Environment

A Combination of Political, Economic, Social, and Technological (PEST) Forces

 

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Founder, Ten3 Business e-Coach Inspiration and Innovation Unlimited!

   

Business Environment Business Ecosystem Strategic Landscape Business Designs Enterprise Business Process Management

Three Forces Driving the New Economy

  1. Knowledge intellectual capital as a strategic factor

  2. Change continuous, rapid and complex; generates uncertainty and reduces predictability

  3. Globalization in R&D, technology, production, trade, finance, communication and information, which has resulted in opening of economies, global hypercompetition and interdependency of business

Five External Drivers of Change

  1. Customer-led drivers changes in the market make-up such as attitudinal moves in demand, income alterations, or demographic shifts that change definitions of value and convenience... More

 

PEST Analysis

Politics / legislation

list major trends

Economics

list major trends

Social

list major trends

Technological

list major trends

Business Environment Defined

Business environment is a set of political, economic, social and technological (PEST) forces that are largely outside the control and influence of a business, and that can potentially have both a positive and a negative impact on the business.1

New Economy: Key Features

 

 

Today's World Realities

The magnitude of today's environmental, competitive, and global market change is unprecedented. It's a very interesting and exciting world, but it's also volatile and chaotic:

  • Volatility describes the economy's rate of change: extremely fast, with explosive upsurges and sudden downturns.

  • Chaos describes the direction of the economy's changes: we're not sure exactly where we're headed, but we are swinging between the various alternatives at a very high speed.3

To cope with an unpredictable world you must build an enormous amount of flexibility into your organization. While you cannot predict the future, you can get a handle on trends, which is a way to take advantage of change and convert risks into opportunities.

PEST Analysis

Today's world is a rapidly changing place. Developments across a range of factors will have an impact on your business or industry. The classic PEST framework (political, economic, social, technological)  identifies four major categories of  external factors that affect the ability of your organization to survive and prosper.

Jack Welch's 5 Strategic Questions

Business Ecosystem

Business ecosystem   an economic web is a community of organizations and stakeholders (players) operating within a particular business environment, which collaborate and compete in an economic web of relationships.  >>>

Strategy Formulation

Corporate Strategy: 2 Logics

Competitive Strategies: 2 Types

Surprise To Win: 3 Strategies

Strategy formulation is the process of determining appropriate courses of action for achieving organizational objectives and thereby accomplishing organizational purpose... >>>

 

 

References:

1. Managing Complexity, Robin Wood    2. Turning Your Business Around,. Mark Blayney    3. Leading Change, James O'Toole