Lesson Two : Environmental scanning and STEEP Analysis

Adapted from the Heriot Watt University ppt slides

1 sl/bmbe/2016

Vision &

mission Swot analysis

STEEP & Scenarios Planning

Strategic analysis & options

decision making

implementation

Evaluation & monitoring

D39BU – Business Management in the Built Environment

feedback

feedback

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A Model of Strategy Process

Strategic Analysis

Strategy Implementation Strategic

Choice

Environment Resource Capability

Organisational Structure

Selecting a Strategy

Stakeholder Expectations

Identifying Options

Strategic Capability

The Built Environment

Business Management in the Built Environment

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Business Management in the Built Environment

Environmental analysis

MACRO ENVIRONMENT STEEP ANALYSIS

Industry Environment Suppliers Competitors Customers

SOCIAL

TECHNOLOGICAL

ECONOMICS

POLITICAL

ENVIRONMENTAL

Pg 4 unit 5 4 sl/bmbe/2016

Auditing Environment Influences

SOCIAL

TECHNOLOGICAL ECONOMICS

POLITICAL

ENVIRONMENTAL

Strategic Analysis

STEEP ANALYSIS

Business Management in the Built Environment

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SOCIAL

TECHNOLOGICAL

ECONOMICS

POLITICAL

ENVIRONMENTAL

values / demographics / life styles

pressure groups / energy efficiency / resources

recession / interest rates / inflation / tax

election / policy / budget / legislation

new products / innovations / technological trends

Business Management in the Built Environment

Environmental analysis: The STEEP ANALYSIS

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Auditing Environment Influences

When Should STEEP be used?

Times of Uncertainty

Times of Information Overload

Times of Disorganization

Strategic Analysis

STEEP ANALYSIS

Business Management in the Built Environment

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Auditing Environment Influences

1. Comprehend the element of the environment

2. Assess interrelationships between trends

3. Relate trends to issues

4. Forecast the future direction of issues

5. Derive implications

Strategic Analysis

STEEP ANALYSIS

Business Management in the Built Environment

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Auditing the Built Environment

SOCIAL

TECHNOLOGICAL

ECONOMICS

POLITICAL

ENVIRONMENTAL

Strategic Analysis Affordable

Housing

Systems Building

Waste Management Recession

PFI / PPP

Business Management in the Built Environment

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Auditing the Built Environment

Strategic Analysis

Affordable Housing

Systems Building

Waste Management

Recession

*PFI / PPP

Business Management in the Built Environment

Note:* PFI = Private Finance Initiatives PPP = Public Private Partnerships

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Resource & Strategic Capabilities

STRENGTHS

WEAKNESSES OPPORTUNITIES

THREATS

Strategic Analysis

SWOT ANALYSIS

Business Management in the Built Environment s;l/2015

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Resource & Strategic Capabilities

Positive Factors

Internal Audit

STRENGTHS WEAKNESSES

THREATS OPPORTUNITIES

External Audit

(Potentially) Negative Factors

Business Management in the Built Environment

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Resource & Strategic Capabilities

STRENGTHS WEAKNESSES THREATS OPPORTUNITIES

STAFF TURNOVER PROFIT GROWTH

STAFF POOR MARKET LOW PROFIT INNOVATION

DIVERSIFY ALLIANCES SKILLS FUNDING

ECONOMY STAFF LEAVE TECHNOLOGY CASH FLOW

SWOT Summary

STEEP & SWOT Analysis / Interpretation

Business Management in the Built Environment

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STEEP & SWOT Analysis & Interpretation

Use in conjunction with other techniques

STEEP & SWOT Analysis / Interpretation

Porter’s Five Forces

Porter’s Generic Strategies

Boston Consulting Group Matrix

Diversification Analysis

Business Management in the Built Environment

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Analysis of strategic position of the organisation

Identify key Forces through 5-Forces structural analysis

Examine and idendify Opportunities and threats Through SWOT

Audit the envm influences

Identify the firm’s position In the industry

Examine the nature of envm

Strategic position

Pg 2 of Unit 5

Business Management in the Built Environment

15 sl/bmbe/2016

Analysis of strategic position of the organisation

Identify key Forces through 5-Forces structural analysis

Examine and idendify Opportunities and threats Through SWOT

Audit the envm influences

Identify the firm’s position In the industry

Examine the nature of envm

Strategic position

Pg 2 of Unit 5

Business Management in the Built Environment

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COMPETITIVE RIVALRY

Potential Entrants

Suppliers Buyers

Substitutes

Threat of Entrants

Bargaining Power

Bargaining Power

Threat of Substitutes

Business Management in the Built Environment Michael Porter’s 5 forces

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Business Management in the Built Environment

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Exam question: (for discussion) Critically appraise Porter’s five forces model, provide a view on the school of thought that underpins the model and explain how the model could be used by a built environment organisation to develop organisational strategy. REFER TO Pg : 4-7 OF UNIT 5 (TEXT)

This question will be discussed in lesson 5

Business Management in the Built Environment

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The Built Environment:

Civils Construction Housing

Public / Private (Spending)

R & M

The UK Construction Industry (GDP)

Strategic Direction (Markets / Portfolio / Competition)

STEEP ANALYSIS

Business Management in the Built Environment

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The Built Environment:

Civils Construction Housing

Public / Private (Spending)

R & M

The Singapore Construction Industry (GDP)?

Strategic Direction (Markets / Portfolio / Competition)

STEEP ANALYSIS

Business Management in the Built Environment

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Industry Statistics:(Companies / Employment)

Client Involvement:(Novice / Enlightened)

Characteristics:(Project-based / Sub-Contracting)

Procurement:(Contractual Governance / Route)

Modern Methods of Construction:(incl. Environmental)

Future Strategies:(Consolidation / Merger / Acquisition)

Challenges in the Built Environment

Business Management in the Built Environment

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Discussion & assignment (exam Question)

As the senior executive of a built environment firm, critically appraise and discuss what you consider to be the key issues and their impact upon the environment within which the organisation competes. Furthermore clearly explain how these issues affect the organisation’s strategy.

Business Management in the Built Environment

Sl/2015

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