Chapter 4 Analyzing Environments

1. Chapter 4Analyzing Environments © David O’Sullivan

2. Case > Riversimple Car http://www.youtube.com/watch?v=iAfhDB0CDr4 http://www.gizmag.com

3. Reflections • Outline a process for defining innovation goals • Use techniques for conducting environmental analysis • Understand the importance of benchmarking in innovation • Explain how to develop statements such as mission and vision statements • Identify stakeholders and their requirements • Describe the process of strategic planning • Outline the process of creating performance indicators

4. Activities [Discussion of selected student ‘Activities’ from previous chapter]

5. Learning Targets • Outline the process of defining goals for an organization • Understand the five-forces model used in business analysis • Explain the difference between rational and incremental goal definition • Explain the benchmarking process • Understand the PEST process for environmental analysis • Develop SWOT statements for innovation • Begin the process of codifying critical data for innovation

6. Goal Planning

7. Perspectives of Goal Definition • Rational perspective views goal definition as a conscious effort to structure the development of an organization toward a planned future • Incremental perspective views goal definition as an ongoing stream of decisions regarding the development of the organization that eventually determines an organization’s future

8. Environment Analysis

9. PEST Analysis

10. PEST Analysis

11. Porter’s Five Force Model

12. Benchmarking

13. SWOT Statements (Sun Hotel) • Strengths • Family tradition • Many years of experience and culture of hospitality among staff • Multicultural staff • Weaknesses • Old infrastructure • Weak marketing • Aging (retiring) management • Lack of experience in international cooperation • Opportunities • City plans new annual festival to increase tourist market. • City has great tourist potential. • Government is expected to launch business expansion tax incentives. • Threats • New hotels and hotel chains in city • More demanding business travelers • Health and safety legislation

14. Other Statements • Statements is to communicate key messages and beliefs across the organization that will guide the behavior of all members • Examples include • Mission • Vision • Safety • Quality

15. Core Competencies • Core competencies can be viewed as the integrated set of abilities that distinguish an organization in the marketplace • Organization’s can perform these core competencies better than competitors and add value to the customer

16. Strengths/Core Competencies • Workforce • Facilities • Market Understanding • Financial Know How • Technology

17. Mission • Purpose: Why the organisation exists • Strategy: The competitive position and distinctive competence • Values: What the organisation believes in • Behaviour Standards: The policies and behaviour patterns that underpin the distinctive competence and value system

18. Ashridge Mission Model

19. Summary • Outline the process of defining goals for an organization • Understand the five-forces model used in business analysis • Explain the difference between rational and incremental goal definition • Explain the benchmarking process • Understand the PEST process for environmental analysis • Develop SWOT statements for innovation • Begin the process of codifying critical data for innovation

20. Activities

21. Search Online • http://mitworld.mit.edu/ • The Art of Engineering (J. Dyson) • Innovation Through Design Thinking (T. Brown) • The World is Flat (T.L. Friedman)