Week 3 DT External Environment, Power, Weakness, and Decision Models

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EXTERNAL ENVIRONMENT 1 Week 3 Discussion Thread: External Environment, Power / Weakness, and Decision Models Dexter Tyrone Cassell School of Business, Liberty University BUSI 770 – Strategy Formulation and Strategic Thinking Dr. Mize May 29, 2022 Author Note Dexter Tyrone Cassell I have no known conflict of interest to disclose. Correspondence concerning this article should be addressed to Dexter Tyrone Cassell Email: dcassell9@liberty.edu

EXTERNAL ENVIRONMENT 2 Introduction The external environment to a company's operation is a significant part of a company's operations in an environment. Corporate management teams have to design strategies to help them assess the external environment's situations to inform their development of effective strategies. The PESTEL analysis has been a good framework that helps explore the external environment. Clear analysis of the external environment can help determine the sources of power and weaknesses in an organization's strategy. Evaluating the external environment of a business is essential for developing proper decision models that facilitate the formulation of strategies (Cassell, 2022). Evaluating the External Environment Evaluating the external or macro-environment of a business entails focusing on the immediate industry competitiveness, economic conditions, cultural norms, societal norms, ecological aspects, technological factors, political situations, legal and regulations environment, among others. These factors have a significant contribution to the operations of a business, and they can lead to success or failure (Ivančić et al., 2017). The evaluation of the external environment focuses on assessing all relevant factors that impact the company as it operates. The PESTEL analysis entails a focus on the political, economic, sociocultural forces, technological, environmental, and legal factors and conditions that affect a company's operations. The company management team is responsible for assessing the external environment to determine their effects on the operations to help design the strategies that are suitable for operations. By understanding the external environment, the corporate management team can adjust their strategies to effectively exploit the environment for positive operations (Ivančić et al., 2017). In evaluating the external environment, the management team will need to cultivate an understanding of the

EXTERNAL ENVIRONMENT 3 varied factors of the environment that can affect a company's operations in whichever way (Cassell, 2022). Discussion of a Key Source of Power / Weakness In developing a strategy that a company has to use to enhance operations, the management team has to be aware of the challenges that are affecting the operations. The effectiveness of a strategy is the source of power to a company in its operation in the environment (Arayesh et al., 2017). Therefore, a good strategy identifies a challenge and defines how to overcome it. Therefore, developing an effective strategy involves identifying the challenges that are barriers to the achievement of organizational goals. That process is usually considered the diagnosis of the environment. The management has to develop a guiding policy that entails the guidelines for containing action to pursue company goals. The process of developing effective strategies in an organization's operations ends with the identification of coherent actions that facilitate the attainment of goals of operations. In the same way, bad strategies can be implemented in an organization, affecting the attainment of goals. In most cases, although bad strategies use inflated words to show that the stakeholders had an elevated level of thinking, they fail to identify challenges (Arayesh et al., 2017). Bad strategies can manifest when they represent statements of desire rather than a plan to accomplish the goals and overcome challenges (Cassell, 2022). Decision Model When deciding about issues, information plays a significant role in informing the preferable strategy that can help accomplish goals. The use of a rational decision model informs the success of an organization. The decision model helps the management of organizations to extrapolate short-term results of a strategy to help optimize the decision that can be used

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EXTERNAL ENVIRONMENT 4 (Goldhaber-Fiebert et al., 2010). Policymakers have to identify the numerous benefits and limitations of a decision model to apply it effectively to accomplish the goals. The rational decision model for decision-making simplifies the real world by using the information to explore potential outcomes of strategies (Power et al., 2019). Strategies used in an organization are effective if the decision model is transparent and credible in its standardization of the methods (Cassell, 2022).

EXTERNAL ENVIRONMENT 5 References Cassell, D. (2022) Strategy Development, Strategy Decisions, and Decision Models [Unpublished Discussion]. Liberty University. Arayesh, M. B., Golmohammadi, E., Nekooeezadeh, M., & Mansouri, A. (2017). The effects of organizational culture on the development of strategic thinking at the organizational level. International Journal of Organizational Leadership , 6 , 261-275. Goldhaber-Fiebert, J. D., Stout, N. K., & Goldie, S. J. (2010). Empirically evaluating decision- analytic models. Value in Health , 13 (5), 667-674. Ivančić, V., Mencer, I., Jelenc, L., & Dulčić, Ž. (2017). Strategy implementation–external environment alignment. Management: Journal of Contemporary Management Issues , 22 (Special Issue), 51-67. Power, D. J., Cyphert, D., & Roth, R. M. (2019). Analytics, bias, and evidence: the quest for rational decision making. Journal of Decision Systems , 28 (2), 120-137.

EXTERNAL ENVIRONMENT 6 Annotated Bibliography Ivančić, V., Mencer, I., Jelenc, L., & Dulčić, Ž. (2017). Strategy implementation–external environment alignment. Management: Journal of Contemporary Management Issues , 22 (Special Issue), 51-67. The authors have noted that strategic management has become a topic of significant interest in modern-day business management. The success of any organization is anchored on the capability of managers to anticipate, recognize, and deal with challenges arising from the external environment. The external environment strongly influences the kind of strategies that an organization can implement effectively to ensure growth and continuity. Implementing organizational strategies has been a problem for many organizations because many fail to identify the external environmental factors affecting the operations. The effectiveness of strategies is accomplished by understanding the external environment that affects the operations. The authors have pointed to the importance of the organizational managers to understand all the external environmental issues that affect their operations and design strategies that can help enhance the company's operations. Designing and implementing strategies in an organization's operations is a significant part of the operation and succeeds when the managers have a proper understanding of the external environment. Implementation of strategies in an organization's operations depends on understanding the context of uncertainties that affect the company. The authors have shown that external environmental factors influence the implementation of the strategies and make it difficult to transfer a strategy from one company to another when operating in separate locations. Managers have to set and implement realistic strategies and goals that help overcome the significant barriers brought by the external environment.

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EXTERNAL ENVIRONMENT 7 Arayesh, M. B., Golmohammadi, E., Nekooeezadeh, M., & Mansouri, A. (2017). The effects of organizational culture on the development of strategic thinking at the organizational level. International Journal of Organizational Leadership , 6 , 261-275. The success of an organization depends on the capability of the management to predict and control the future. Strategies that help an organization management team attain its goals and adjust effectively to the changes that come to their environment. Arayesh et al. have pointed to the managers' need to understand the challenges and barriers that affect the operations of an organization. Implementation of effective strategies for dealing with various aspects of the changing environment can be measured according to how it can deal with uncertainties and the complexity of the environment. According to the authors, a strategy will expose the weakness of the managers if it fails to provide suitable approaches to deal with the challenges affecting the company internally or externally. The development of strategies should be done so that it develops objectives that are achievable for all users. Implementation of strategies relates to the nature of the competence of the organization's hardware that represents the workers. Workers in an organization have to possess the right skills and capabilities to drive the implementation of the strategies. The organizational managers also have to cultivate the right culture that will help implement the various strategies that can enhance performance. Organizational culture plays a significant role in controlling the actions that various employees can implement to attain their goals. Integrating the organizational strategies is achievable when the operations are streamlined, and different people are coordinated to work as a team.

Week 3 DT External Environment, Power, Weakness, and Decision Models

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