Strategy analysis of environment

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Understand your business environment is key when defining the approach of your strategy, the way you want to promote the change, penetrate a new market or just achieve your goal.

  • Can I predict it?
  • Can I shape it?
  • Can I survive in it?
  • Can I change it?
  • What are my limits?

For each type of business environment you have to put in place a set of combined actions, but they have to share a common pattern/approach that enable to fit with the environment.

The identification of the pattern and the use of it on actions will improve the efficiency of your plan.

There are thousand of environments, but these ones defined by BCG could be a good summary:

  • Environment  —> Approach
  • Classical        —> Be Big
  • Adaptive         —> Be fast
  • Visionary        —> Be first
  • Shaping         —> Be orchestrator
  • Renewal        —> Be viable

For instance if you are working on a adaptive environment and you are thinking on an action that is not “fast” take into account that the efficiency of this action is not going to be so much high.

This analysis is also done for the selection of vendors. If I am a aircraft manufacturer and I have a complex engineering environment composed by highly customized processes which requires a strong support of the selected vendors, I presumably will partner with a big vendor. In case I’m a start-up growing up quickly and with the need of reacting fast, it will enable me to succeed.

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