Glossary of techniques for strategic analysis. This article provides a glossary of analytical techniques, страница 8

McNamee, P. B. (1988). Management Accounting: Strategic Planning and Marketing, chapter 4, Heinemann Professional Publishing, Oxford.

Terry, P. T. (1977). Mechanisms for environmental scanning, Long Range Planning, June, 10(3).

See also: risk analysis and risk matrix.

Environmental assessment: Neubauer and Solomon

There are several techniques for looking at the impact of the environment, and the Neubauer and Solomon approach has some characteristics of some of the methods described in the previous entry, in that it uses a concept of impact. Why it rates a separate listing is that it is a far more comprehensive approach, which hones down the vast array of in¯uences from the environment to those with most impact, and relates these to corporate strategies and missions. The technique studies trends, and also the expectations of different groups, or constituents, in the environment. It is not a technique to be learned on one reading, and needs considerable practice to gain pro®ciency. The whole approach has the merit of being oriented to making the strategies compatible with the business environment.

The method goes through a number of steps, beginning with the identi®cation of the current strategies and mission of the business. Trends and constituents are identi®ed, and an impact matrix created to identify the threats and opportunities. The next step is to identify the effect of the issues identi®ed on the strategies and mission of the business. In turn, this leads to a reassessment of strategies of mission and strategies.

Neubauer, F-F. and Solomon, N. B. (1977). A managerial approach to environmental assessment, Long Range Planning, April, 10(2).

See also: risk analysis and risk matrix.

Environmental turbulence matrices

This approach presents a novel and useful way of looking at all aspects of strategic management against a grid which shows the level of environmental turbulence to which the organization is subject. The levels are 1 repetitive, 2 expanding (slow incremental), 3 changing (fast incremental), 4 discontinuous (but predictable) and 5 surpriseful (unpredictable). The position on the scale, which for most organizations will vary over time, affects not only how the organization should plan strategy, but the types of strategic response and the type of manager who would cope best. In designing this approach Igor Ansoff (1990 and 1991) its originator, has provided a very useful diagnostic tool. It is not only of value to the analyst who is studying several businesses, but may also help the managers of single business entities think through the response needed as their businesses change position on the scale.

Ansoff, H. I. (1991). Strategic management in a historical perspective. In: D. E. Hussey (ed.), International Review of Strategic Management, 2.1, Wiley, Chichester. Ansoff, H. I. and McDonnell, P. (1990). Implanting Strategic Management, Prentice Hall, London.

Equilibrium analysis

This is derived from the principles of force®eld analysis, and is a very simple way of looking at strengths and weaknessses in relation to a particular issue, such as market share. A horizontal line represents the issue under scrutiny, and the diagram sets out to identify those factors which keep it as low as it is and those which keep it as high as it is. The technique attempts to weight the factors, and concentrates on designing responses to those factors which can be tackled and which are of most importance. It is an ideal technique to facilitate discussions, and an alternative to the rather long `shopping lists' of strengths and weaknesses that some planning activities seem to generate. It is action oriented.

Hussey, D. E. (1991). Introducing Corporate Planning: Guide to Strategic Management, 4th edition, chapter 4, Pergamon Press, Oxford.

See also: critical success factors and SWOT.

Experience curve

A concept which is based on industrial learning curve theories extended from costs of production to the total costs of the whole ®rm. Empirically, it has been demonstrated that in most businesses the real costs per unit reduce every time cumulative output doubles. This is not the same as economies of scale (which relate to output over a given period), although this may play a part, and is related to the total cumulative experience of the organization.