3. The Strategic Context for Business Analysis Flashcards
What are the core building blocks for understanding the strategic context?
Current state, strategy execution, target state, performance measurement
What does PESTLE stand for?
Political, Economic, Socio-cultural, Technological, Legal and Environmental
Forces within the international, national and local economic environment (interest rates, levels of employment)
Economic
Forces within the international, national and local political environments (policies and decisions made by national and local governments, EU, NATO, Amnesty International, Greenpeace, WWF)
Political
Trends within society and culture (changes to demographics, preferences and habits)
Socio-Cultural
Trends within technology (AI, self-driving vehicles)
Technological
Trends and expectations that have legal or regulatory impact (employment law, taxation rules and regulations)
Legal
Trends and influences that are concerned with the natural environment (carbon emissions and climate change)
Environmental
What are the elements of VMOST?
Vision, Mission, Objectives, Strategy and Tactics
Defines the target state for the organization without regard to how this will be achieved
Vision
Describes what the organization does or will do
Mission
Specific outcomes that the organizations wants to achieve. These are used to guide and measure progress towards the organizations vision and the completion of the mission.
Objectives
Long-term approach that is going to be taken by the organization to achieve the vision, mission and objectives
Strategy
Specific and detailed means by which the strategy should be executed
Tactics
What are qualitative descriptions of the critical factors that must be in place for the organization to achieve defined objectives?
Critical Success Factors (CSFs)
What are the quantitative measurements of performance that track the achievement of the Critical Success Factors?
Key performance Indicators (KPIs)
What provides an objective Measurement of performance against Objectives or KPIs?
Targets
What summarizes the results of the internal and external environment analysis and highlights the key factors identified?
SWOT analysis
What are found from within the organization?
Strengths and Weaknesses
What is an example of an analysis used for internal environment?
VMOST, performance measurement, resource audit, BSC, Boston Box
What is an example of an analysis used for external environment?
PESTLE analysis, Porters 5 Forces Analysis
What are the elements used for Performance Measurement?
Objectives, CSF, KPI, Targets
What are the techniques used in Strategy execution?
BMC (business model canvas), BCM (business capability model), Value stream modelling, TOM (Target Operating Model = POPIT)
What are the 9 elements of the Business Model Canvas?
Customer Segments, Value proposition, Channels, Customer Relationships, Revenue streams, Key resources, Key activities, Key partners, Cost Structure
