Transcript PowerPoint-presentation

Business Environment Analysis
in Practice
Dr. Patrik Ström
Department of Human and Economic Geography
[email protected]
Why business environment analysis?
• Take informed decisions – ”the right
decisions”
• General or sector specific information
• Geographical level
Factors
Politics – e.g. system
Economy – GDP, debt, trade, FDI
Social aspects – education, health care, welfare
Technology – level, research, policies
Methods for BEA?
• Scenario planning - results
• Structure planning – models
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e.g. Porter, 1990; Florida, 2002
• Information gathering and analysis
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e.g. EU legal framework, macro economy
Example: Criteria for market entry
(medical)
• Stability and risks
• Possibility to operate /
get returns
• Potential to become #1
• Execution capability
• Overall size and potential
• Market attractiveness
• Market entry options
• Deal structuring /
valuation
Work plan suggestions 
Define the problem
• Make sure you always know what (and what
not) to solve
• Break down the work into manageable work
streams (MECE = mutually exclusive,
collectively exhaustive)
• Make sure all stakeholders have the same view
Develop the work plan/organize the team
• There has to be a team leader who is
overall accountable, guarantees
delivery and makes final judgment call
• Ensure you have clear milestones of
what to be delivered / by when and
that these are followed up on
Solve the problem
Make realistic assumptions
• Make sure you have a solid plan means -> success or
failure
• You make decisions under uncertainty -> minimize
uncertainty
• Limited availability of information -> need to make
assumptions
• Use multiple sources of information -> triangulate
assumptions
• Sanity check your assumptions -> does it make sense?
• Make sure you can back-up your assumptions -> state
references
• Don’t run out of time -> use the 80/20 rule
• Be prepared to modify the work plan and focus on
short notice
Report the results
• Spend some time “thinking through the story”
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Logic sequence
Easy to follow
What does the audience want to hear about?
• Focus on the essentials
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Supporting / non-critical analysis in back-up
Clear recommendations with supporting rationale
Always have 3 strong supporting rationale
Clear messages, graphs, and so-what’s
THANK YOU!