The SCOC analysis is an asset-based strategic planning tool focusing on the core strengths of a business, building upon what it claims to be the shortcomings of a traditional SWOT analysis. Indeed, the SCOC analysis claims that the SWOT analysis focuses on threats that might never materialize, thus underweighting potential opportunities.
SCOC Analysis
Description
Analysis
Implications
Applications
Examples
1. Internal Strengths (S)
Internal strengths refer to the positive attributes, capabilities, or resources that the business already possesses or excels at.
– Identify and assess the core internal strengths of the business. – Consider what sets the business apart in a positive way.
– Recognizes areas of excellence and competitive advantages. – Provides a foundation for strategy development based on existing strengths.
– Identifying and leveraging core competencies in product development. – Recognizing strengths in the team to optimize project outcomes.
Recognizing a company’s strong brand reputation and loyal customer base. Identifying a team’s expertise in a specific technology.
2. Internal Challenges (C1)
Internal challenges involve identifying issues or areas where improvements are needed and how existing strengths can be applied to address them.
– Assess internal challenges within the business that require attention. – Explore how internal strengths can be used to solve these challenges.
– Encourages problem-solving and innovation using existing strengths. – Promotes efficient use of resources to address internal issues.
– Using expertise in process optimization to streamline operations. – Leveraging employee skills to address productivity challenges.
Applying advanced technology to improve manufacturing efficiency based on internal expertise. Using marketing strengths to address declining sales in a specific market segment.
3. External Opportunities (O)
External opportunities represent favorable conditions or factors in the external environment that align with the strengths of the business.
– Identify external opportunities that are well-suited to the strengths of the business. – Consider how strengths can be leveraged to seize these opportunities.
– Capitalizes on external conditions that complement the business’s capabilities. – Enhances the business’s competitiveness and market positioning.
– Identifying emerging market trends that align with product strengths. – Leveraging technology expertise to enter new markets with high demand.
Expanding into a new geographical market where there is a strong demand for the company’s product. Capitalizing on a growing trend that aligns with the business’s expertise.
4. External Challenges (C2)
External challenges involve identifying potential obstacles or difficulties in the external environment and maintaining a positive mindset when facing them.
– Recognize external challenges or obstacles that the business may encounter. – Emphasize the importance of a positive, open, and creative mindset when addressing challenges.
– Encourages a proactive approach to external challenges with a constructive attitude. – Fosters adaptability and resilience in the face of difficulties.
– Responding to changes in market regulations with an innovative mindset. – Embracing technological disruptions as opportunities for growth.
Adapting to a new regulatory environment with creativity and a solution-oriented mindset. Embracing digital transformation as a chance for business expansion and efficiency improvement.
The SCOC analysis is a strategic planning tool that was developed to address shortfalls in the traditional SWOT analysis.
In a SWOT analysis, decision-makers tend to spend most of their time repairing weaknesses and speculating about external threats. The end result is that is the positive aspects of a company – strengths and opportunities – are not given the attention they deserve.
Practitioners of the SCOC analysis argue that the SWOT analysis is a deficit-based approach to strategic planning. Businesses end up planning for threats that never materialize and their focus on negative outcomes blinds them to avenues for growth.
The SCOC analysis is a more balanced approach. It does not exaggerate weaknesses and threats, nor does it undervalue strengths and opportunities.
Running a SCOC analysis
A SCOC analysis is an asset-based approach that considers four key areas:
Internal strengths – what is the business already doing well?
Internal challenges – how can these strengths be used to solve current or predicted challenges within the business?
External opportunities – what are the external opportunities most suited to the strengths of the business?
External challenges – how can the business face external challenges with a positive mindset? This is a key differentiator of the SCOC analysis, encouraging decision-makers to maintain an open, curious, and creative mindset when faced with difficulties.
Why is the SCOC analysis important?
As noted in the introduction, businesses that conduct SWOT analyses tend to become preoccupied with identifying and then planning for negative outcomes.
This phenomenon has been extensively studied. Scientific research has found that negative emotions in have approximately three times the impact of positive emotions.
The SCOC analysis is important in helping decision-makers avoiding devoting company resources to problems that may be overstated or worse still, non-existent.
Mindfulness-based strategic awareness
Together with the SOAR and SOPA analysis, the SCOC analysis advocates mindful awareness and leadership principles.
Here, mindfulness is combined with aspects of positive psychology to encourage leaders to adopt a results-oriented focus on business strategy. This gives them the ability to perceive, create, and capitalize on potential opportunities for growth.
Importantly, an awareness of the positive aspects (or strengths) of strategy achieves better outcomes for the business and improves company culture. It also gives the employees within a business the cognitive flexibility to adapt to new challenges.
Drawbacks of SCOC Analysis
Overemphasis on Current State
SCOC Analysis might focus too heavily on the current state of affairs, potentially overlooking future trends and changes. This can lead to a strategy that is not adaptable or flexible enough to meet future challenges.
Subjectivity in Assessments
The process can be highly subjective, as it relies on the perspectives of those conducting the analysis. Different individuals or teams might have varied opinions on what constitutes strengths, challenges, opportunities, and constraints, leading to inconsistent results.
Potential for Bias
There’s a risk of bias in SCOC Analysis, especially if the team conducting it has preconceived notions or vested interests. This can skew the analysis and lead to flawed strategic decisions.
Ignoring Interdependencies
SCOC Analysis might fail to adequately address the interdependencies between strengths, challenges, opportunities, and constraints. This can result in a fragmented strategy that doesn’t consider the holistic picture of the situation.
When to Use SCOC Analysis
In Strategic Planning
SCOC Analysis is particularly useful in the strategic planning process. It provides a structured way to evaluate the current situation and plan for the future.
During Project Initiation
It’s beneficial at the beginning of a project to identify potential challenges and opportunities early on and plan accordingly.
For Business Analysis
Businesses can use SCOC Analysis for regular reviews of their operations, market position, and competitive environment.
In Problem-Solving Scenarios
When faced with complex problems, SCOC Analysis can help break down the situation into manageable parts, allowing for more effective problem-solving.
How to Conduct SCOC Analysis
Identifying Strengths
The first step is to identify the strengths of the project or business. These are internal factors that give it an advantage over competitors or contribute positively to its success.
Assessing Challenges
The next step is to assess the internal challenges the project or business faces. These are internal weaknesses or problems that need to be addressed.
Analyzing Opportunities
This involves looking at external factors that the project or business could exploit to its advantage. Opportunities might arise from market trends, technological advancements, or changes in consumer behavior.
Evaluating Constraints
Finally, the analysis involves identifying external constraints or threats that could hinder the success of the project or business. These could include regulatory changes, competitive pressures, or economic downturns.
Developing Strategies
Based on the SCOC analysis, develop strategies that leverage strengths and opportunities while addressing challenges and constraints.
What to Expect from SCOC Analysis
Comprehensive Understanding
SCOC Analysis provides a comprehensive understanding of the various factors that can affect a project or business.
Informed Decision Making
The insights gained from a SCOC analysis can lead to more informed and strategic decision-making.
Identification of Key Areas
The analysis helps in identifying key areas for improvement and growth, guiding resource allocation and strategic focus.
Dynamic Strategy Development
SCOC Analysis encourages the development of dynamic strategies that can adapt to changing internal and external environments.
Better Risk Management
By identifying challenges and constraints, SCOC Analysis aids in better risk management and contingency planning.
Case Studies
Case Study: Tesla, Inc.
1. Internal Strengths (S): Tesla’s internal strengths lie in its innovative electric vehicle (EV) technology, strong brand reputation, and vertically integrated business model. The company’s emphasis on research and development (R&D) has led to cutting-edge advancements in battery technology and autonomous driving capabilities, positioning Tesla as a leader in the EV market. Additionally, Tesla’s direct-to-consumer sales model and extensive Supercharger network provide a competitive edge in the automotive industry.
2. Internal Challenges (C1): Despite its strengths, Tesla faces internal challenges such as production bottlenecks, supply chain constraints, and quality control issues. The company has struggled to meet ambitious production targets for its vehicles, resulting in delays and customer dissatisfaction. Addressing these challenges requires leveraging Tesla’s technological expertise and operational capabilities to optimize manufacturing processes and ensure product quality.
3. External Opportunities (O): Tesla operates in an industry with significant external opportunities, including increasing consumer demand for sustainable transportation solutions, government incentives for EV adoption, and advancements in renewable energy infrastructure. By capitalizing on these opportunities, Tesla can further expand its market presence, diversify its product offerings, and accelerate the transition to a sustainable energy future.
4. External Challenges (C2): External challenges facing Tesla include intense competition from traditional automakers and regulatory uncertainties related to environmental policies and safety standards. Additionally, geopolitical factors such as trade tensions and supply chain disruptions pose risks to Tesla’s global operations. Overcoming these challenges requires proactive risk management strategies and effective stakeholder engagement to navigate complex market dynamics.
Strategic Implications and Applications:
Tesla’s focus on internal strengths such as technological innovation and brand differentiation enables the company to maintain its competitive advantage in the EV market.
By addressing internal challenges through process optimization and quality improvement initiatives, Tesla can enhance operational efficiency and customer satisfaction.
Capitalizing on external opportunities such as market growth and regulatory incentives allows Tesla to drive revenue growth and expand its market share.
Proactively managing external challenges through strategic partnerships, regulatory compliance, and risk mitigation strategies enables Tesla to mitigate potential threats and sustain long-term success.
Conclusion: Through a SCOC analysis, Tesla can gain valuable insights into its internal capabilities, external opportunities, and potential challenges, allowing the company to develop informed strategies and make data-driven decisions. By leveraging its strengths, addressing internal challenges, seizing external opportunities, and mitigating external threats, Tesla can position itself for continued growth and innovation in the dynamic automotive industry.
Case Study: Google
1. Internal Strengths (S): Google possesses a range of internal strengths, including its dominant position in the online search market, advanced algorithms for delivering relevant search results, innovative product portfolio (such as Gmail, Google Maps, and YouTube), and extensive data analytics capabilities. These strengths have enabled Google to attract a large user base, drive advertising revenue, and maintain its competitive edge in the digital ecosystem.
2. Internal Challenges (C1): Internal challenges faced by Google include concerns related to data privacy and security, regulatory scrutiny over antitrust issues, and employee morale and retention. Addressing these challenges requires Google to invest in robust data protection measures, navigate complex regulatory landscapes, and foster a positive workplace culture to retain top talent.
3. External Opportunities (O): Google operates in an environment with numerous external opportunities, such as the growing demand for online services, advancements in artificial intelligence (AI) and machine learning, and the expansion of digital advertising markets. By leveraging its technological expertise and market leadership, Google can capitalize on these opportunities to drive innovation, expand its product offerings, and enhance user experiences.
4. External Challenges (C2): External challenges facing Google include intensifying competition from rivals such as Amazon and Facebook, regulatory pressures related to data privacy and content moderation, and geopolitical tensions impacting global operations. To address these challenges, Google must adopt proactive strategies to differentiate its offerings, engage with policymakers and regulators, and diversify its revenue streams beyond advertising.
Strategic Implications and Applications:
Google’s focus on internal strengths such as technological innovation and data analytics enables the company to deliver superior user experiences and maintain its position as a market leader.
By addressing internal challenges such as data privacy concerns and regulatory compliance, Google can build trust with users, regulators, and stakeholders, enhancing its reputation and sustainability.
Capitalizing on external opportunities such as market growth and technological advancements allows Google to expand its product portfolio, enter new markets, and drive revenue diversification.
Proactively managing external challenges such as competition and regulatory pressures enables Google to mitigate risks, navigate uncertainties, and sustain long-term growth and profitability.
Conclusion: Through a SCOC analysis, Google can gain valuable insights into its internal capabilities, external opportunities, and potential challenges, empowering the company to develop strategic initiatives and make informed decisions. By leveraging its strengths, addressing internal challenges, seizing external opportunities, and mitigating external threats, Google can continue to innovate and thrive in the dynamic digital landscape.
Case Study: Amazon
1. Internal Strengths (S): Amazon’s internal strengths include its extensive product selection, efficient logistics and supply chain management, customer-centric approach, and innovative technology solutions. The company’s emphasis on customer satisfaction, coupled with its Prime membership program and fast delivery services, has contributed to its strong brand loyalty and market dominance in e-commerce.
2. Internal Challenges (C1): Internal challenges faced by Amazon include labor relations issues, environmental sustainability concerns, and regulatory pressures related to antitrust scrutiny and data privacy. Addressing these challenges requires Amazon to invest in workforce development, adopt sustainable business practices, and engage with regulators and policymakers to maintain compliance and public trust.
3. External Opportunities (O): Amazon operates in an environment with numerous external opportunities, such as the continued growth of e-commerce, the expansion of cloud computing services, and the emergence of new markets and industries. By leveraging its technological infrastructure and customer insights, Amazon can capitalize on these opportunities to diversify its revenue streams, expand its market presence, and drive innovation.
4. External Challenges (C2): External challenges facing Amazon include intensifying competition from rivals such as Walmart and Alibaba, regulatory uncertainties impacting global operations, and geopolitical tensions affecting trade and supply chains. To address these challenges, Amazon must focus on differentiation strategies, regulatory compliance, and risk management practices to navigate complex market dynamics and sustain long-term growth.
Strategic Implications and Applications:
Amazon’s focus on internal strengths such as customer-centricity and operational efficiency enables the company to deliver superior shopping experiences and maintain its position as a market leader.
By addressing internal challenges such as labor relations and environmental sustainability, Amazon can enhance its corporate reputation, mitigate risks, and strengthen stakeholder relationships.
Capitalizing on external opportunities such as market expansion and technological advancements allows Amazon to diversify its business portfolio, enter new sectors, and drive revenue growth.
Proactively managing external challenges such as competition and regulatory pressures enables Amazon to adapt to changing market conditions, mitigate risks, and sustain its competitive advantage.
Conclusion: Through a SCOC analysis, Amazon can gain valuable insights into its internal capabilities, external opportunities, and potential challenges, empowering the company to develop strategic initiatives and make informed decisions. By leveraging its strengths, addressing internal challenges, seizing external opportunities, and mitigating external threats, Amazon can continue to innovate and lead in the ever-evolving e-commerce landscape.
Key takeaways:
The SCOC analysis is an asset-based and solution-focused strategic planning tool.
The SCOC analysis was created to address a tendency for decision-makers to become preoccupied with weaknesses and threats in a SWOT analysis. In many cases, this preoccupation blinds the company to strengths and opportunities.
The SCOC analysis is one of a host of similar analyses advocating a mindful approach to strategy formulation. This allows decision-makers to combine mindfulness with positive psychology to focus on core strengths and the meeting of challenges with an open mind.
Key Highlights
Strategic Planning Tool:
The SCOC analysis is a strategic planning tool designed to enhance the traditional SWOT analysis by focusing on core strengths of a business and addressing its shortcomings.
Balanced Approach:
Unlike the SWOT analysis, which tends to overemphasize weaknesses and threats, the SCOC analysis provides a balanced approach that values strengths and opportunities.
Four Key Areas:
The SCOC analysis considers four key areas: internal strengths, internal challenges, external opportunities, and external challenges.
Internal Strengths and Challenges:
Identifies what the business excels at (strengths) and how those strengths can be utilized to address existing or anticipated challenges.
External Opportunities and Challenges:
Focuses on external opportunities that align with the business’s strengths and approaches external challenges with a positive mindset.
Avoiding Overemphasis on Negatives:
The SCOC analysis helps prevent the allocation of resources to exaggerated or non-existent problems by shifting the focus to strengths and opportunities.
Mindfulness-Based Strategic Awareness:
Aligns with mindfulness and positive psychology principles, encouraging leaders to adopt a results-oriented focus and capitalize on growth opportunities.
Improved Outcomes and Culture:
Promotes better outcomes for the business, improves company culture, and enhances the cognitive flexibility of employees to adapt to new challenges.
Comparison’s Table
SCOC Analysis
SWOT Analysis
PESTLE Analysis
Type
Strategic analysis framework for assessing internal and external factors influencing a project or initiative.
Strategic planning tool for evaluating strengths, weaknesses, opportunities, and threats.
Strategic analysis tool for assessing political, economic, social, technological, legal, and environmental factors.
Purpose
To identify and analyze the strengths, challenges, opportunities, and constraints associated with a project or situation.
To assess internal strengths and weaknesses and external opportunities and threats affecting an organization or initiative.
To evaluate external factors impacting a project or organization across various dimensions.
Components
– Strengths: Internal factors that contribute positively to the project or initiative. – Challenges: Internal factors that pose obstacles or difficulties. – Opportunities: External factors that could benefit the project or initiative. – Constraints: External factors that may limit or restrict the project’s success.
– Strengths: Internal factors that give the organization a competitive advantage. – Weaknesses: Internal factors that hinder the organization’s performance. – Opportunities: External factors that the organization could exploit for growth or advantage. – Threats: External factors that could negatively impact the organization.
– Political: Factors related to government policies, regulations, and stability. – Economic: Factors concerning economic conditions, trends, and growth prospects. – Social: Factors related to societal norms, demographics, and cultural influences. – Technological: Factors concerning technological advancements and innovations. – Legal: Factors related to laws, regulations, and legal frameworks. – Environmental: Factors concerning environmental regulations, sustainability, and climate change.
Focus
Emphasizes a comprehensive analysis of both internal and external factors specific to a project or initiative.
Focuses on internal strengths and weaknesses and external opportunities and threats affecting an organization or initiative.
Focuses on external factors across multiple dimensions, providing a broader context for strategic decision-making.
Application
Applied in project management, strategic planning, and decision-making processes to assess factors influencing project success.
Used in business strategy development, market analysis, and organizational planning to identify strategic options.
Utilized in strategic management, risk assessment, and business planning to understand the external environment’s impact on an organization.
Benefits
– Provides a holistic view of project-related factors, including both internal and external considerations. – Helps in identifying potential opportunities for leveraging strengths and addressing challenges. – Facilitates risk assessment and mitigation by identifying constraints and challenges upfront.
– Offers a structured approach to strategic analysis, enabling organizations to identify key factors affecting performance. – Helps in strategy formulation by aligning internal capabilities with external opportunities. – Provides insights for decision-making and resource allocation based on identified strengths and weaknesses.
– Enables organizations to assess the broader external environment and anticipate potential risks and opportunities. – Helps in identifying regulatory, economic, and social factors that could impact organizational strategies. – Facilitates scenario planning and strategy development by considering various external factors.
Examples
– Analyzing the strengths and weaknesses of a company’s internal resources and capabilities. – Identifying external opportunities and constraints in entering a new market. – Assessing project feasibility by considering internal and external factors.
– Evaluating a company’s strengths, weaknesses, opportunities, and threats to inform strategic planning. – Identifying competitive advantages and areas for improvement in business operations. – Assessing market dynamics and industry trends to identify growth opportunities and potential threats.
– Analyzing the political landscape to assess the impact of government policies on business operations. – Evaluating economic trends and market conditions to identify growth opportunities or risks. – Assessing social factors to understand consumer preferences and societal trends.
A failure mode and effects analysis (FMEA) is a structured approach to identifying design failures in a product or process. Developed in the 1950s, the failure mode and effects analysis is one the earliest methodologies of its kind. It enables organizations to anticipate a range of potential failures during the design stage.
Agile Business Analysis (AgileBA) is certification in the form of guidance and training for business analysts seeking to work in agile environments. To support this shift, AgileBA also helps the business analyst relate Agile projects to a wider organizational mission or strategy. To ensure that analysts have the necessary skills and expertise, AgileBA certification was developed.
Business valuations involve a formal analysis of the key operational aspects of a business. A business valuation is an analysis used to determine the economic value of a business or company unit. It’s important to note that valuations are one part science and one part art. Analysts use professional judgment to consider the financial performance of a business with respect to local, national, or global economic conditions. They will also consider the total value of assets and liabilities, in addition to patented or proprietary technology.
A paired comparison analysis is used to rate or rank options where evaluation criteria are subjective by nature. The analysis is particularly useful when there is a lack of clear priorities or objective data to base decisions on. A paired comparison analysis evaluates a range of options by comparing them against each other.
The Monte Carlo analysis is a quantitative risk management technique. The Monte Carlo analysis was developed by nuclear scientist Stanislaw Ulam in 1940 as work progressed on the atom bomb. The analysis first considers the impact of certain risks on project management such as time or budgetary constraints. Then, a computerized mathematical output gives businesses a range of possible outcomes and their probability of occurrence.
A cost-benefit analysis is a process a business can use to analyze decisions according to the costs associated with making that decision. For a cost analysis to be effective it’s important to articulate the project in the simplest terms possible, identify the costs, determine the benefits of project implementation, assess the alternatives.
The CATWOE analysis is a problem-solving strategy that asks businesses to look at an issue from six different perspectives. The CATWOE analysis is an in-depth and holistic approach to problem-solving because it enables businesses to consider all perspectives. This often forces management out of habitual ways of thinking that would otherwise hinder growth and profitability. Most importantly, the CATWOE analysis allows businesses to combine multiple perspectives into a single, unifying solution.
It’s possible to identify the key players that overlap with a company’s business model with a competitor analysis. This overlapping can be analyzed in terms of key customers, technologies, distribution, and financial models. When all those elements are analyzed, it is possible to map all the facets of competition for a tech business model to understand better where a business stands in the marketplace and its possible future developments.
The Pareto Analysis is a statistical analysis used in business decision making that identifies a certain number of input factors that have the greatest impact on income. It is based on the similarly named Pareto Principle, which states that 80% of the effect of something can be attributed to just 20% of the drivers.
A comparable company analysis is a process that enables the identification of similar organizations to be used as a comparison to understand the business and financial performance of the target company. To find comparables you can look at two key profiles: the business and financial profile. From the comparable company analysis it is possible to understand the competitive landscape of the target organization.
A SWOT Analysis is a framework used for evaluating the business’s Strengths, Weaknesses, Opportunities, and Threats. It can aid in identifying the problematic areas of your business so that you can maximize your opportunities. It will also alert you to the challenges your organization might face in the future.
The PESTEL analysis is a framework that can help marketers assess whether macro-economic factors are affecting an organization. This is a critical step that helps organizations identify potential threats and weaknesses that can be used in other frameworks such as SWOT or to gain a broader and better understanding of the overall marketing environment.
Business analysis is a research discipline that helps driving change within an organization by identifying the key elements and processes that drive value. Business analysis can also be used in Identifying new business opportunities or how to take advantage of existing business opportunities to grow your business in the marketplace.
In corporate finance, the financial structure is how corporations finance their assets (usually either through debt or equity). For the sake of reverse engineering businesses, we want to look at three critical elements to determine the model used to sustain its assets: cost structure, profitability, and cash flow generation.
Financial modeling involves the analysis of accounting, finance, and business data to predict future financial performance. Financial modeling is often used in valuation, which consists of estimating the value in dollar terms of a company based on several parameters. Some of the most common financial models comprise discounted cash flows, the M&A model, and the CCA model.
Value investing is an investment philosophy that looks at companies’ fundamentals, to discover those companies whose intrinsic value is higher than what the market is currently pricing, in short value investing tries to evaluate a business by starting by its fundamentals.
The Buffet Indicator is a measure of the total value of all publicly-traded stocks in a country divided by that country’s GDP. It’s a measure and ratio to evaluate whether a market is undervalued or overvalued. It’s one of Warren Buffet’s favorite measures as a warning that financial markets might be overvalued and riskier.
Financial accounting is a subdiscipline within accounting that helps organizations provide reporting related to three critical areas of a business: its assets and liabilities (balance sheet), its revenues and expenses (income statement), and its cash flows (cash flow statement). Together those areas can be used for internal and external purposes.
Post-mortem analyses review projects from start to finish to determine process improvements and ensure that inefficiencies are not repeated in the future. In the Project Management Book of Knowledge (PMBOK), this process is referred to as “lessons learned”.
Retrospective analyses are held after a project to determine what worked well and what did not. They are also conducted at the end of an iteration in Agile project management. Agile practitioners call these meetings retrospectives or retros. They are an effective way to check the pulse of a project team, reflect on the work performed to date, and reach a consensus on how to tackle the next sprint cycle.
In essence, a root cause analysis involves the identification of problem root causes to devise the most effective solutions. Note that the root cause is an underlying factor that sets the problem in motion or causes a particular situation such as non-conformance.
A break-even analysis is commonly used to determine the point at which a new product or service will become profitable. The analysis is a financial calculation that tells the business how many products it must sell to cover its production costs. A break-even analysis is a small business accounting process that tells the business what it needs to do to break even or recoup its initial investment.
Stanford University Professor Ronald A. Howard first defined decision analysis as a profession in 1964. Over the ensuing decades, Howard has supervised many doctoral theses on the subject across topics including nuclear waste disposal, investment planning, hurricane seeding, and research strategy. Decision analysis (DA) is a systematic, visual, and quantitative decision-making approach where all aspects of a decision are evaluated before making an optimal choice.
A DESTEP analysis is a framework used by businesses to understand their external environment and the issues which may impact them. The DESTEP analysis is an extension of the popular PEST analysis created by Harvard Business School professor Francis J. Aguilar. The DESTEP analysis groups external factors into six categories: demographic, economic, socio-cultural, technological, ecological, and political.
The STEEP analysis is a tool used to map the external factors that impact an organization. STEEP stands for the five key areas on which the analysis focuses: socio-cultural, technological, economic, environmental/ecological, and political. Usually, the STEEP analysis is complementary or alternative to other methods such as SWOT or PESTEL analyses.
The STEEPLE analysis is a variation of the STEEP analysis. Where the step analysis comprises socio-cultural, technological, economic, environmental/ecological, and political factors as the base of the analysis. The STEEPLE analysis adds other two factors such as Legal and Ethical.
Activity-based management (ABM) is a framework for determining the profitability of every aspect of a business. The end goal is to maximize organizational strengths while minimizing or eliminating weaknesses. Activity-based management can be described in the following steps: identification and analysis, evaluation and identification of areas of improvement.
PMESII-PT is a tool that helps users organize large amounts of operations information. PMESII-PT is an environmental scanning and monitoring technique, like the SWOT, PESTLE, and QUEST analysis. Developed by the United States Army, used as a way to execute a more complex strategy in foreign countries with a complex and uncertain context to map.
The SPACE (Strategic Position and Action Evaluation) analysis was developed by strategy academics Alan Rowe, Richard Mason, Karl Dickel, Richard Mann, and Robert Mockler. The particular focus of this framework is strategy formation as it relates to the competitive position of an organization. The SPACE analysis is a technique used in strategic management and planning.
A lotus diagram is a creative tool for ideation and brainstorming. The diagram identifies the key concepts from a broad topic for simple analysis or prioritization.
Functional decomposition is an analysis method where complex processes are examined by dividing them into their constituent parts. According to the Business Analysis Body of Knowledge (BABOK), functional decomposition “helps manage complexity and reduce uncertainty by breaking down processes, systems, functional areas, or deliverables into their simpler constituent parts and allowing each part to be analyzed independently.”
The multi-criteria analysis provides a systematic approach for ranking adaptation options against multiple decision criteria. These criteria are weighted to reflect their importance relative to other criteria. A multi-criteria analysis (MCA) is a decision-making framework suited to solving problems with many alternative courses of action.
A stakeholder analysis is a process where the participation, interest, and influence level of key project stakeholders is identified. A stakeholder analysis is used to leverage the support of key personnel and purposefully align project teams with wider organizational goals. The analysis can also be used to resolve potential sources of conflict before project commencement.
Strategic analysis is a process to understand the organization’s environment and competitive landscape to formulate informed business decisions, to plan for the organizational structure and long-term direction. Strategic planning is also useful to experiment with business model design and assess the fit with the long-term vision of the business.
Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy.
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