Environmental Analysis

Dr. Elijah Ezendu

FIMC, FCIM, FIIAN, FBDI, FAAFM, FAAPM, FCCM, FSSM, MIMIS, MITD, ACIArb, ACIPM, PhD, DocM, MBA, CWM, CBDA, CMA, MPM, PME, CSOL, CCIP, CMC

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

STEEP
Political Economic Social Technological Political Economic Social Technological Legal Environmental

PESTELI
Political Economic Social Technological Environmental Legal Industry Social Technological Economic Environmental Political Legal Ethical Demographic

Social Technological Economic Environmental Political

PEST

PESTLE

STEEPLED

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 issue Step 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 alternatives Step 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 action Step 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 a multidisciplinary professional whose business experience mounts through diverse fields. He is a Certified Management Consultant, licensed by International Council of Management Consulting Institutes which has a Special Consultative Status in United Nations Economic and Social Council. As a result of his strides in management consulting, he received Merit Award for Excellence in Consulting. He is concurrently Senior Partner, Shevach Consulting; Director of Strategy and Development, Fortuna; Lead Assessor and Member of Governing Council, Institute of Management Consultants; Director of Training, International Council of Business Development Professionals; Member of Marketing Committee, International Council of Management Consulting Institutes; Honorary Global Advisor, International Project Management Commission; and Programme Coordinator (Nigeria), Regent Business School, South Africa. He holds a doctoral degree in Management from St. Clements University, British West Indies. He is a Chartered Manager certified by Canadian Institute of Management, Canada and holds numerous professional qualifications including Master Project Manager; Project Manager E-Business; Fellow, Institute of Management Consultants; Fellow, Certified Institute of Cost Management; Fellow, Institute of Business Development; Fellow, American Academy of Financial Management; Fellow, Institute of Internal Auditors; Fellow, Society of Sales and Marketing; Member, Nigerian Institute of Training and Development; Member, Institute of Analytics Professionals; Associate, Chartered Institute of Personnel Management of Nigeria; Associate, Chartered Institute of Arbitrators (Nigeria). He is a Certified Business Development Analyst and Competitive Intelligence Professional. Additionally, he is an information technology management professional certified by Institute for the Management of Information Systems, UK along with Microsoft Corporation, USA and stands as a Member of International Association of Software Architects. He is an outstanding motivational speaker with a knack for recalibration of positive influence; and a world-class consultant, who has functioned as Speaker/Facilitator at myriad programmes of professional institutes, international development organisations, private and public firms including extragovernmental agencies and institutions. He is a prolific writer and author who had served as Editor-inChief, Cost Management Journal; Part-Time Lecturer & External Examiner (MBA Programme), Ladoke Akintola University of Technology; Director of MBA Programme (Nigerian Outreach), Management Institute of Canada; Chief Operating Officer, Rohan Marine; Second Vice President and Member of Governing Council, Certified Institute of Cost Management; Director of Programmes and Member of Governing Council, The Institute of Business Development; Director, Refined Shipping; and Examiner to various Professional Institutes.

Merci Beaucoup

For additional information:

Dr. Elijah Ezendu

elezendu@yahoo.com, 234 8033024596, 234 8058835237