Abstract
Strategic model analysis is required in a continuously changing environment where businesses must respond and fulfill the Sustainable Development Goals. These models must cover all the variables that can affect the environment for doing business within an industry. For this reason, it is proposed to create a sectoral analysis model that integrates the PEST and Porter's five forces analysis. The purpose of this qualitative research is to validate the relevance of the proposed model. The research is carried out based on the perception of a sample of students from the business administration program of the Politecnico Grancolombiano University in Colombia which used the application model proposed during the period 2020-2021. The authors found that with an average rating of 4.48 out of 5, the group of respondents positively values the usefulness of the model proposed.
TopIntroduction
Business management is relevant for facing continuous challenges that organizations have to face. Covid-19 has led to greater challenges in developing businesses and it is playing an important role in organizations’ achieving sustainable development goals. The tools used for a strategic analysis of the environment are relevant for evaluating businesses’ environment quickly and at the same time cover as many variables as possible when taking decisions. In this context traditional models such as a PEST analysis or PORTER’s five forces model have some drawbacks when it comes to analyzing all the variables that affect the business environment.
Studies like those by Isabelle et al. (2020) highlight these drawbacks and propose an analysis of Porter's five forces augmented with four additional factors -- the competitor's level of innovations, exposure to globalization, threat of digitization, and the industry’s exposure to deregulation. Ramirez and Romero (2017) apply sectoral analysis tools EFI and EFE matrices proposed by Fred David in 2003 in the artisan brick manufacturing industry in Cúcuta in Colombia. They also use the PEST and Porter's five force models. However, these models are aimed more at a business analysis than at sectoral studies.
We propose to develop a strategic analysis model that integrates the expanded PEST analysis methodologies adding ecological and legal factors and Porter's five forces model, with a specific focus on the development of sectoral studies. We did an analysis of 11 different factors among which the environmental aspects are one of the most important. The proposed model also seeks to arrive at results that are easy to understand.
The time period of the study is 2020-21. Students in the last semester of the Business Administration program at the Politecnico Grancolombiano University were divided into teams. Each team had five members who carried out 367 sectoral studies with the help of the application developed by the professors in the university. After the sectoral studies, a survey was done. The survey had nine questions, eight quantitative and one qualitative which was answered by 197 work teams.
The research found a positive appraisal of the application by the students, in which a general rating of 4.48 was obtained on a scale of one to five and a general positive perception was found in the relevance and usefulness of each of the sections of the application. However, it was noted that the weighting section required some adjustments for improving user experience.
Key Terms in this Chapter
Data Science: The use of statistics and artificial intelligence to handle large amounts of data for advanced analysis.
Systemic Thinking: It corresponds to a system of thought where there is a global and dynamic vision of different systems.
Green Economy: Economic model that aims to generate economic benefits from sustainable development.
Cogeneration: It is the conjoint efforts to produce and apply different kinds of energy in industrial processes
Food Safety: Nutritious food that should be accesed for all human beings to lead an active and healthy life
DJSI Index: Dow Jones Sustainability global index. It tackles the world's leading companies in terms of business sustainability.
Ecosphere: Ecosystem of planet earth. It includes all living beings in the biosphere and recognizes the interrelationship among them.
CSR Pyramid: Corporate Social Responsibility pyramid that contains the levels that companies must consider when preparing their corporate social responsibility policy.
Environmental Sustainability: Keeping ecological balance despite the use of natural resources.
Bioenergy: Renewable energy created from the waste of living beings, through biological or mechanical processes.
Social Production: It is a way of managing companies in which job stability: equity and justice are sought for all people within an organization.
Clusters: Group of companies correlated and located in the same geographical area.
Eco Innovation: All types of efforts to get a sustainable development reducing the impact on the environment.
Sustainable Energy: Energy sources that are not depleted with their use, such as water, but that can last or their depletion is imperceptible.
Green Sales: Sales of ecological products and ecological services to manage sustainable businesses.