The four key components of Strategy Analysis are principles, practices, techniques, and skills. They play an essential role in identifying and validating the organization’s strategic needs, defining suitable solution approach(es) and solution(s), and planning, monitoring, and engaging stakeholders to achieve the organization’s strategic objectives. Techniques describe a step-by-step approach to conducting Strategic Analysis activities.
How to predict and assess a definable occurrence in a business scenario, such as a customer placing an order or any such scenario that can influence a company’s strategic direction? Here is a Strategy Analysis technique to achieve that. This blog will look at a technique called Business Events with examples.
Business Events, also known as Strategic Events Analysis, is a strategy analysis technique that was developed in the mid-1980s by business and strategy consultants. It is used to analyze the events that have the potential to influence a company’s strategic direction. It is a way of analyzing a company’s environment and current situation and the events that might affect it in the future. By looking at past events and their impact, Business Events analysis identifies trends and opportunities and helps strategists plan for the future.
Business Events analysis has become increasingly popular in recent years to assess the external environment and make informed decisions about a company’s strategic direction. The technique involves looking at the impact of changes in the industry, new technologies, shifts in consumer behavior, and competitors’ strategies on the company’s performance. By analyzing these events’ impact, strategists can better understand the external environment and the potential implications for their company.
Business Events analysis is a valuable tool for strategists and executives as it helps them identify opportunities and risks in the external environment. It also helps them identify potential areas of competitive advantage or areas where their competitors may have an advantage. In addition, Business Events analysis can help strategists anticipate the future and make informed decisions about the company’s strategic direction.
Business events are the lifeline of any organization. For example, customers place orders, suppliers send in invoices, and employees join and leave the organization. Events trigger the business system to perform an activity or a series of activities in response to the event. Document business events and relate them to the activities that they trigger.
Figure 13: Business Event Flowchart
There are three types of business events to consider:
- External: Events originating from outside the boundary of the business system. For a travel company, an external event would be a prospective customer making a holiday inquiry. Another one can be a customer raising a complaint about a recent trip.
- Internal decision points: Internal decisions made by stakeholders. For example, the senior management decided to award discounts for holidays that are to be taken within the next month.
- Scheduled points in time: Events that occur regularly. For example, at the start of each day, the agency staff produce travel documents for holidays that begin two weeks later.
A business event comprises both the conditions and resulting actions of a business event. Therefore, the activity of the enterprise and its business can be monitored and changed as a result of events.
Advantages of Business Events as a strategy analysis technique
- Relationship Building: Business events provide an excellent opportunity for companies to build relationships with potential customers and partners. This is especially useful for companies just starting out and looking to gain a foothold in the industry.
- Brand Awareness: Business events provide an excellent platform for companies to promote their brand. Through events, companies can showcase their products and services, which can result in increased brand awareness among potential customers.
- Networking Opportunities: Business events provide an excellent opportunity for companies to network with other businesses in the industry. This can be useful for expanding the company’s reach and gaining valuable insights into the industry.
- Market Insights: Business events provide an excellent platform for companies to collect valuable insights into their target market. Through events, companies can better understand what their customers are looking for, which can help them develop better strategies for targeting those customers.
- Cost-Effective: Business events are a cost-effective way for companies to reach out to potential customers. Events are relatively inexpensive compared to other forms of marketing, and they provide an effective way for companies to make a lasting impression on their target audience.
Weaknesses of Business Events as a strategy analysis technique
- Time-consuming: Business events can be very time-consuming and require a great deal of research and analysis. This can be especially challenging if you are dealing with a large number of events or trying to understand a complex situation.
- Difficult to compare events: Business events are often unique, and it can be difficult to compare them to each other in order to draw meaningful conclusions.
- Limited scope: Business events often only provide insight into a specific area or sector and may not provide a wider perspective of the industry or market.
- Subjective: Business events are often subjective and open to interpretation. This can lead to differing opinions and conclusions between analysts.
Relationship of Business Events with other strategy analysis techniques
Business events are often used to drive strategic analysis techniques. For example, a business event may be used to trigger a SWOT analysis, which assesses the strengths, weaknesses, opportunities, and threats of a company or project. A business event can also provide the basis for a PESTLE analysis, which evaluates the political, economic, social, technological, legal, and environmental factors that can affect the success of a venture. Business events can also be used to inform competitive analysis and Porter’s five forces analysis. In these analyses, the business event can provide insights into how competitors are responding to the event and how the event could affect the competitive landscape. Finally, business events can be used to inform scenario planning, which involves developing multiple potential outcomes and strategies for a company in response to a particular event.
Future of Business Events as a strategy analysis technique
The future of business events as a strategy analysis technique is very promising. The use of business events to analyze strategies has become increasingly popular in recent years as businesses have realized the potential of this method for gaining insight into their markets, customers, and competitors. Business events effectively bring together key stakeholders, such as customers, suppliers, and competitors, for discussions about the company’s strategy. Additionally, these events can also be used to collect customer feedback, analyze trends, and develop new strategies. With the rise of technology, business events are becoming even more important for organizations as they can leverage technology to capture insights, data, and trends from these events. As organizations continue to embrace technology, the use of business events as a strategy analysis technique will likely only increase.
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