Business Policy

WIKI TEMPLATE – SBI Process Part 1(A)

ANALYZING THE ENVIRONMENT

This analytical template has one major section:

PART 1-A: ANALYZE THE ENVIRONMENT

PART 1-A

ANALYZING THE ENVIRONMENT

1. DATA COLLECTION

Use the theory and tools presented in the class, book, and supplemental readings to gather information about the environment that you believe will be useful to the analysis. You may use frameworks and tools like “P.E.S.T.”, “Five-Forces Analysis” and others to help structure your exploration and the collection of key pieces of information. Note: it will be more helpful to your classmates if you present a summary of the information (i.e., highlight key information that you learned and why you think it matters) rather than just providing a link to a source.

Document the sources that you surveyed to collect the information so that you can defend your analysis and compare to other team members who may have identified conflicting information. Also, provide details on the approach used to gather information and the information that was gathered.

Data collection for the broad environment (P.E.S.T) :

Data collection for the industry (Five-Forces) :

2. ORGANIZATION AND ANALYSIS OF DATA

2.1 Assess the influence of forces in the competitive environment

Use the technique taught in class (e.g., the “five-forces” analysis) to evaluate how competitive forces influence competition for firms in this industry. Your investigation will generate several such unique “forces” in the industry. List these forces and then identify (with justification and explanation) the three most influential factors from this list (note that these may come from 1, 2 or 3 of the 5-forces). Categorize the impact of the top three factors on firms in this industry as being high, medium, or low.

2.2 Assess the influence of forces in the broad environment

Use the technique taught in class (e.g., the “P.E.S.T” analysis) to evaluate how forces in the broad environment influence competition for firms in this industry. Your investigation will generate several such unique “forces” in the broad environment. List these forces and then identify (with justification and explanation) the three most influential factors from this list. Categorize the impact of the top three factors on firms in this industry as being high, medium, or low.

2.3 Determine the Drivers of Change and Key Survival Factors for the Industry

Use the information generated in the previous steps to help determine the Drivers of Change and Key Survival Factors for this industry. Be sure to show how these follow from you analysis of PEST, 5 Forces, and other industry analysis – i.e., the drivers and KSF should be grounded in the information presented up to this point rather than “coming out of the blue”.

1. What are the most significant forces that drive change in this industry? Justify your selection (why these and not others?). Note: Some drivers could have a positive impact on firms in the industry. Others could have a negative impact.

a. ________________________________________________________________________________________________________________________________________________

b. ________________________________________________________________________________________________________________________________________________

c. ________________________________________________________________________________________________________________________________________________

2. What are the most significant “key survival factors” that must be addressed by every firm in this industry? Justify your selection (why these and not others?).

a. ________________________________________________________________________________________________________________________________________________

b. ________________________________________________________________________________________________________________________________________________

c. ________________________________________________________________________________________________________________________________________________

3. CONCLUSIONS AND RECOMMENDATIONS

The analyses conducted in the “Data Collection” and “”Organization and Analysis of Data” sections provide you with a wealth of information, including several drivers of change and key survival factors in the industry. Please synthesize the information and answer the following:

1. Overall, how attractive is this industry today? Areas to address in this regard might include such things as the intensity of competition, how profitable, on average, firms in the industry are, whether the industry is growing, volatility and risk, etc. Be sure to ground your conclusions in information from the analysis above.

2. Given your analysis in the previous section, what is the industry likely to look like 5 years from now? Areas you should consider addressing might include such things as average profitability, the number and size of firms, sales growth, supply/demand characteristics, the likely nature of the key survival factors, etc. Be sure to contrast major expected changes with the conditions as they exist today, and to ground your predictions in the information from the analysis above.

3. Competitive Approaches in the Industry

a. Current Competitive Approaches. Given the current state of the industry, what value propositions are likely to be viable? Pick at least two currently successful firms in the industry and demonstrate how their value propositions address the existing competitive conditions in the industry

b. Future Competitive Approaches. Given the predictions above regarding what the nature of competition is likely to be in the industry 5 years from now, what value propositions are likely to be viable at that time? Take the firms just described and identify what adjustments the firms will have to make in their value propositions if they are to continue to be successful.