Strategist Organizations need to focus on strategic matters on a more or less continuous basis in the modern business world. Business analysts, serving this need, are well-versed in analyzing the strategic profile of the organization and its environment, advising senior management on suitable policiesand the effects of policy decisions. Architect Organizations may need to introduce change to solve business problems which may have been identified by the strategic analysis, referred to above. Business analysts contribute by analyzing objectives, processes and resources, and suggesting ways by which re-design BPRor improvements BPI could be made.
While frameworks do exist to aid in environmental analysis, it is important to understand that they are simply frameworks to orient the user toward a more precise understanding of the business environment; they are by no means necessary.
Rather, it is important to understand the business environment, the universal processes used in analysis and how analysis is converted into strategy. Analysis Process Any business manager should be able to analyze the environment in which the company does business.
The general process used to analyze the business environment has four basic steps. First, the environment is scanned for environmental factors. Next, the relevant factors are culled and monitored.
Then, those factors are analyzed for impact. Lastly, scenarios are forecast based upon the environmental factors identified and strategies developed accordingly.
Further, as strategies are implemented, the business environment is monitored so that any unforeseen changes can be accounted for. Identifying Environmental Factors Identifying environmental factors is most commonly done by brainstorming.
All environmental factors are not always obvious to everyone and the more people included, especially in this initial brainstorming, the more accurate the environmental profile developed will be.
Common environmental factors include new tax laws, tariff limits, export laws, consumer trends, developing technology, new replacement products i.
Environmental Frameworks Several popular frameworks exist to aid in identifying environmental factors.
They are frequently used together. Secondly, SWOT analysis is used. This is a framework that looks at the strengths, weaknesses, opportunities and threats affecting a business, both internally and externally.
Lastly, the Five Forces are considered: Selecting Relevant Factors Only the most relevant environmental factors identified should be given further analysis. All factors are not equally relevant; for example, certain tax laws will affect the business but really require little additional analysis compared to the threat posed by a competitor.
Further, it is important to try to quantify the effect of the environmental factors identified. Quantification will allow the true impact to be assessed and compared historically and in the future.
Strategic Position After carefully identifying and quantifying those environmental factors most relevant to the future success of a company, assumptions are made regarding the future development of those factors and a strategy formed.
Her articles offer money-saving tips and valuable insight on typically confusing topics.Jun 30, · Preparing a marketing environmental analysis is an essential step in understanding the external local, national or international forces that might affect your small business.
Environmental scanning refers to possession and utilization of information about occasions, patterns, trends, and relationships within an organization’s internal and external environment.
It helps the managers to decide the future path of the organization. Business analysis is a research discipline of identifying business needs and determining solutions to business problems. Solutions often include a software-systems development component, but may also consist of process improvement, organizational change or strategic planning and policy development.
Environmental business analysis is a catchall term given to the systematic process by which environmental factors in a business are identified, their impact is assessed and a strategy is developed.
Defining a solution approach to determine the nature and extent of technology and business process the business analysis process, planning template covering.
Essentials Guide to Strategic Planning Welcome Strategic Planner! To assist you throughout your planning process, we have created a how-to guide on The Basics of Strategic Planning which will take you through the planning process step-by-step and keep you on track.