Environmental Analysis

Environmental Analysis

Dr. Elijah EzenduFIMC, FCCM, FIIAN, FBDI, FAAFM, FSSM, MIMIS, MIAP, MITD, ACIArb, ACIPM,

PhD, DocM, MBA, CWM, CBDA, CMA, MPM, PME, CSOL, CCIP, CMC, CMgr

Focus of Environmental Analysis

• STEEPLED Analysis• Scenario Analysis• Issue Analysis• Stakeholder Analysis

STEEPLED Analysis

• Social Factors• Technological Factors• Economic Factors• Environmental (Ecological) Factors• Political Factors• Legal Factors• Ethical Factors• Demographic Factors

Steepled Analysis is used for identifying attributes of keystone variables that make up an organization's external environment, in terms of current and future operations.

Evolution of STEEPLED Analysis

Social Factors

• Media views• Tradition• Values• Norms• Attitudes & Opinions• Lifestyle• Work-Week• Social Events & Influences• Religious beliefs• Roles

Technological Factors

• Technology maturity• Intellectual Property• Energy• Biotechnology• Innovation Potential• Research & Development • Information Systems• Communication Systems• Manufacturing Capacity

Economic Factors

• Interest Rate• Exchange Rate• Taxation• Availability of Credit Facilities• International Trade• Fiscal and Monetary Policies• Per Capita Income• Levels of Disposable Income • Business Cycles• Drivers of Economy• Level of Unemployment

Environmental Factors

• Environmental Impact• Climate Neutrality• Clean Energy• Pollution • Triple Bottom Line• Green Branding Issues• Waste Disposal• Recycling• Sustainable Development

Political Factors

• Pressure Groups & Lobbying • International Wars• Internal Conflict• Government Term• Devolution of Power

Legal Factors

• Employment Law• Health and Safety Law• Competition Law• Regional Legislation• Investment Law

Ethical Factors

• Reciprocal Responsibilities• Responsibility to Host Community• Good Faith• Universal Rules

Demographic Factors

• Household Patterns• Ethnic Mix• Educational Levels• Age Distribution• Number of People Within Working Age Group• Net Inward Migration

In application of STEEPLED Analysis, the implication of each factor would be ascertained, then rating system deployed to mark impact on the firm.

Impact by type and impact over time would be determined.

Scenario Analysis

Scenario Analysis involves assessment of future events through development of probable outcomes and evaluating them.

“Scenario Thinking is a discipline for encouraging creative and entrepreneurial thinking and action in contexts of change, complexity and uncertainty.”

- Pierre Wack

Scenario Process

• Set up questions.• Make-out environmental factors.• Identify the key driving forces.• Execute ranking on the basis of uncertainty

and importance.• Develop probable outcomes ( Scenarios)• Ascertain implication• Identify the chief indicators

Building Scenarios

Scenarios are built by reviewing trend along with counter trend, conducting comparisons and extrapolation whether in the simple form of narratives or complex techniques of Stochastic/ Bayesian modeling.

Issue Analysis

This involves thorough examination of an issue without focusing on other issues.

How to Conduct Issue Analysis

Step 1: Identify one major issueStep 2: List other issues that are related to it in order of importance, and discuss

them. Step 3: Identify the background of the issue.Step 4: Identify all alternativesStep 5: Identify criterion for measuring an alternative against another. The

criterion may be profitability, efficiency, effectiveness, feasibility, timing, public acceptance or cost.

Step 6: Ascertain impact of each criterion on every stated alternative using two strokes of assessment, the first by scoring and the second by comparison. (positive impact= +1, neutral or not sure= 0, negative impact=-1)

Step 7: Recommendation

Stakeholder Analysis

This is a process of identifying influence, position, importance and behaviour of stakeholders.

How to Conduct Stakeholder Analysis

Step 1: Identify relevant stakeholders Step 2: Ascertain relationships between stakeholders.Step 3: Identify Interests of each stakeholder.Step 4: Identify implication of actionStep 5: Ascertain necessary action of organisation

When To Use Stakeholder Analysis

• Before entering new market• Before negotiation• Before implementing change• Before launching new product• Before setting-up a new factory

Dr Elijah Ezendu is Award-Winning Business Expert & Certified Management Consultant with expertise in HR, OD, Competitive Intelligence, Strategy, Restructuring, Business Development, Sales & Marketing, Interim Management, CSR, Leadership, Project & Programme Management, Cost Management, Outsourcing, Franchising, Intellectual Capital, eBusiness, Social Media, Software Architecture, Cloud Computing, eLearning & International Business. He holds proprietary rights of various systems. He is currently CEO, Rubiini (UAE) and Hon. President, Worldwide Independent Inventors Association. He functioned as Chair, International Board of GCC Business Council (UAE); Senior Partner, Shevach Consulting, Nigeria; Chairman (Certification & Training), Lead Assessor & Council Member, Institute of Management Consultants, Nigeria; Lead Resource, Centre for Competitive Intelligence Development; Lead Consultant, JK Michaels; Technical Director, Gestalt; Chief Operating Officer, Rohan Group; Director, Fortuna, Gambia; Director, The Greens; Director of Programmes & Council Member, Institute of Business Development, Nigeria; Member of TDD Committee, International Association of Software Architects, USA; Member of Strategic Planning and Implementation Committee, Chartered Institute of Personnel Management of Nigeria; Adjunct Faculty, Regent Business School, South Africa; Adjunct Faculty, Ladoke Akintola University of Technology, Nigeria; Editor-in-Chief, Cost Management Journal; Council Member, Institute of Internal Auditors of Nigeria. He holds Doctoral Degree in Management, Master of Business Administration and Fellowship of Several Professional Institutes in North America, UK & Nigeria. He is an author & widely featured speaker in workshops, conferences & retreats. He was involved in developing Specialist Master’s Degree Course Content for Ladoke Akintola University of Technology (Nig) and Jones International University (USA). He also works as Adjunct & Visiting Professor of Universities and holds Interim Management Assignments on Boards of Companies.

Thank You