Is there a better way to analyse the business environment ?

Executive summary The focus of this thesis is an investigation of a new method for modelling the business environment. This thesis recognises the key importance of deep and timely knowledge of the business environment for strategy development and effective continuous execution. Further, it identifies issues relating to the effectiveness of the business environmental modelling task both in professional practice and in business education. Reports in the literature of a failure of businesses to engage in effective environmental scanning are corroborated in this thesis by evidence gathered in a workshop session with MBA students. First, this thesis introduces a new method for modelling the business environment, called PESTLEWeb. In the first instance, it is intended that this method be used in an academic setting, particularly in support of teaching the analysis of context for strategy development. Consequently, this thesis adopts a rigorous academic approach to the methods evaluation. It is argued that the PESTLEWeb method has several properties that distinguish its effectiveness compared to traditional keyword-driven methods of identifying, analysing and synthesising business environmental knowledge. Properties of the new method are investigated experimentally and then separately by an observational study in a practical workshop setting. Results of a longer-term follow-up review of workshop attendees' application of the method are also reported Results from the experimental portion of the research are presented. These include an investigation both of the cognitive aspects of the tool and subjects' affective responses to it. In regard to cognitive performance, no strong evidence is reported to indicate that the detail contained within the PESTLEWeb model is significantly more memorable than a text-based analysis. However, a measure of affective variables for subjects shows a strong statistically significant preference for the new method in terms of subjects' judgments of how logical, rational and convincing the models are. Results from the observational study show that the method may be introduced to an MBA class in a relatively short and straightforward workshop setting. It is shown that (ii) learners are able to understand and use the method to some extent within the workshop itself. A longer-term follow up of a self-selecting group of workshop students demonstrates that some, at least, are able to develop sophisticated and rich models of the business environment using the PESTLEWeb method. Recommendations from this thesis include an incremental process of further investigation and academic engagement with the PESTLEWeb method with the ultimate aim of introducing it …