BUSI770 DB3 Joge

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DB3: External Environment, Power/Weakness and Decision Models School of Doctor of Business Administration-Human Resources, Liberty University Author Note I have no known conflict of interest to disclose. Correspondence concerning this article should be addressed to

BUSI 770 DQ3: External Environment, Power/Weakness, and Decision Models It is important to evaluate external environmental factors in key decision making. Organizations must always analyze threats along with opportunities that will help identify barriers and improve operations. In this way they will understand their competition and office politics and create processes to sustain the business they are in. External environment Organizations need to evaluate risks that would impede upon the success of the organization. There is an evaluation tool called PESTEL that allows organizations a way to evaluate external factors. Gamble et al, (2021) breaks down the PESTEL analysis into six principals: Political, Economic, Sociocultural, Technological, Environmental, and Legal factors. Gamble et al. (2002) suggest that PESTEL analysis is a useful tool for decision-making, as it allows businesses to consider external factors that may impact their operations and make more informed decisions. According to their research, PESTEL analysis can help businesses to identify opportunities and threats in the market and anticipate future trends. They also suggest that PESTEL analysis can be used to inform strategic planning and resource allocation decisions. Buying power and a competitor’s product line between sellers are just factors organizations must evaluate to remain a competitive advantage. Organizations must use strategic thinking when evaluating external environmental factors to survive a harsh competitive marketplace. Studying competition is important for a business in decision-making for several reasons. First of all understanding the market, studying competition helps businesses to gain a better understanding of the market they operate in. It allows them to identify market trends, customer preferences, and industry standards, which can help inform their own strategies and decisions. By studying the competitors, businesses can identify gaps in the market and opportunities to differentiate

themselves from their competitors. This can lead to the development of new products, services, or marketing strategies that can help the business gain a competitive advantage. Power and weakness Many will say there are advantages and disadvantages to strategic thinking. According to Rumelt, 2011, There is always room for improvement and where a business may gain an advantage, it may cost them in another area. In many ways managers are in charge of studying advantages. Sustaining competitive advantage is important. Competitive advantage refers to the factors that make a company more successful than its competitors. By studying these factors, managers can ensure that the company continues to maintain its competitive edge and sustain its success over the long term. One weakness can be when the company may become too focused on maintaining its existing advantages, rather than exploring new opportunities. This can lead to a lack of innovation and an inability to adapt to changing market conditions. As Kim and Mauborgne (2005) note, "Innovation is the key driver of a company's competitive advantage. The absence of innovation is the absence of competitive advantage" (p. 78). Decision model A decision model for companies is a framework or methodology used to make important business decisions based on data, analysis, and strategic thinking. Decision models help companies make informed choices by considering different factors, potential outcomes, and risks associated with a decision. Feedback is very important in decision making. In many ways it helps identify areas for improvement. Feedback can help companies identify areas where they need to improve their products, services, or processes. By understanding what is not working well, companies can make changes to address these issues and improve their performance. It is

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important to note that constructive feedback will challenge an organization to improve (Krogerus & Tschappeler, 2018; Richardson, 2010). Biblical reference Evaluating external factors in decision-making relates to the Bible in several ways. The Bible provides guidance on how to make wise decisions, and it emphasizes the importance of seeking God's wisdom and guidance in all aspects of life, including decision-making. Seeking wisdom and guidance: The Bible emphasizes the importance of seeking God's wisdom and guidance in decision-making. Proverbs 3:5-6 says, "Trust in the Lord with all your heart and lean not on your own understanding; in all your ways submit to him, and he will make your paths straight." When evaluating external factors in decision-making, Christians can seek God's guidance through prayer, seeking wise counsel, and studying the Bible. Keller (2012) stated that it would be a mistake to think Christian worldview only involves Christian activities References Gamble, J., Peteraf, M., & Thompson, A. (2021 ), Essentials of strategic management , McGraw Hill Course Content Delivery (7th ed.), New York, NY. ISBN: 9781260785791. Keller, T. (2012), Every good endeavor , New York, NY: Riverhead Books, Penguin Group, New York, NY. Kim, W. C., & Mauborgne, R. (2005). Blue Ocean Strategy: How to create uncontested market space and make competition irrelevant. Harvard Business Review Press Krogerus, M., & Tschäppeler, R. (2018), The decision book: 50 models for strategic thinking. (Revised ed.), New York, NY: W. Norton & Company, Inc.

Rumelt, R. (2011), Good strategy/bad strategy: The difference and why it matters., New York, NY: Crown Business Annotated Bibliography Chan, E. K., & Yim, C. K. (2018). Enhancing managerial decision-making process using design thinking: A literature review . Asia Pacific Management Review, 23(2), 61-69. This article by Elaine K. Chan and Carol K. Yim examines the use of design thinking in enhancing the managerial decision-making process. The authors conducted a literature review to explore how design thinking can help managers make better decisions by improving problem framing, identifying alternative solutions, and incorporating user feedback. The article also highlights the importance of collaboration, experimentation, and iteration in the design thinking process. The authors are both professors in the Department of Management and Marketing at the Hong Kong Polytechnic University, and have published widely in the fields of management and innovation. The article is published in the Asia Pacific Management Review, a reputable academic journal in the field of management. The key points of the article include the potential benefits of using design thinking in decision-making, such as improving creativity, user- centeredness, and agility. The article also discusses the challenges of implementing design thinking in organizations, such as resistance to change and lack of resources. The authors recommend that managers consider adopting design thinking principles and practices to enhance their decision-making process and improve organizational performance. Overall, this article provides a useful overview of the potential benefits and challenges of using design thinking in decision-making, and is authored by reputable scholars in the field. This article relates to the current external factors that are involved in decision making because it highlights hoe design

thinking is agile. When considering external factors it is important for organizations to stay on their toes when new products come to market in the future. Kaplan, R. S., & Mikes, A. (2012). Managing risks: A new framework . Harvard Business Review, 90(6), 48-60. This article by Robert S. Kaplan and Anette Mikes provides a new framework for managing risks that could impede the success of an organization. The authors argue that traditional risk management approaches, which focus on identifying and mitigating individual risks, are insufficient in today's complex and uncertain business environment. Instead, the authors propose a new approach that involves identifying and managing the interrelated risks that could affect an organization's strategy and long-term success. Kaplan and Mikes are both respected scholars in the fields of risk management and strategy. Kaplan is a professor of management practice at Harvard Business School, and Mikes is a professor of accounting and control at HEC Paris. The article is published in the Harvard Business Review, a prestigious and widely-cited business publication.The article discusses the importance of identifying and managing strategic risks, which are risks that could affect an organization's ability to achieve its objectives and create value. The authors propose four-step process for managing strategic risks, which includes identifying risks, assessing their potential impact, developing risk mitigation plans, and monitoring risks over time. The authors also provide several examples of how organizations have successfully implemented this new framework. Overall, this article provides a valuable perspective on the importance of managing strategic risks and a useful framework for doing so. The authors are reputable scholars in the field, and the article is published in a respected business

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publication. The article is relevant to managers and executives who are responsible for managing risks that could impede the success of their organizations.

BUSI770 DB3 Joge

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