BUSINESS STRATEGY AND OBJECTIVES
Strategy implementation (Techniques 8–9)
When the strategy has been deﬁned, it is important to consider the range
of issues associated with implementing it. One of the key problems here is
recognising the range of areas that need to be coordinated if the business
changes are to be implemented successfully.
The approaches that support the implementation of strategy are McKinsey’s 7-S
model and the four-view model.
Performance measurement (Techniques 10–12)
All organisations need to monitor performance. This section explains two
techniques used to identify performance measures and carry out the evaluation.
These are critical success factors/key performance indicators, and the Balanced
Business Scorecard technique.
STRATEGY ANALYSIS EXTERNAL BUSINESS ENVIRONMENT
Technique 1: PESTLE analysis
There are several similar approaches used to investigate the global business
environment within which an organisation operates. The most commonly used
approaches to external environment analysis are:
PEST (political, economic, socio-cultural, technological);
PESTEL (political, economic, socio-cultural, technological, environmental
(or ecological), legal);
PESTLIED (political, economic, socio-cultural, technological, legal,
international, environmental (or ecological), demographic);
STEEPLE (socio-cultural, technological, environmental (or ecological),
economic, political, legal, ethical).
Description of the technique
PESTLE analysis provides a framework for investigating and analysing the
external environment for an organisation. The framework identiﬁes six key areas
that should be considered when attempting to identify the sources of change.
These six areas are:
Political: Examples of political factors could be a potential change of
government, with the corresponding changes to policies and
priorities, or the introduction of a new government initiative.
These may be limited to the home country within which the
organisation operates, but this tends to be rare these days since
many changes have an eﬀect in several countries. The development
of bodies such as the European Union and the growth of global
trade and multinational organisations have changed the scope of
political activity. This has increased the possibility of political
issues arising that may impact upon the organisation and how it