The post preceding this,
talked about the 4 elements we need to consider when working on a
communications strategy. I am positive that it gave you a solid foundation on
the topic. In this post, we will look at each of the elements in
detail. Read along; let us hone this skill together.
The first element we looked at
was strategic analysis. An element that must precede all others in order to
gain a solid understanding of the corporation. Without this element, you are
like a ship without a rudder.
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| Flickr | Simon Cunningham |
When looking at
strategic analysis, what are we looking for? This is the question, is it not?
Strategic analysis does not stop at understanding the strategic position of the
corporation. It goes on to look at any changes taking place within and outside
the environment surrounding the corporation.
‘The aim of strategic analysis is, then, to
form a view of the key influences’ says Cornelissen, ‘on the present and future
well-being of the organization, and what opportunities are afforded by the
environment and the competencies of the organization.’
These are the three analysis that comprise of this element:
Organization-Environment
Analysis
Cornelissen says the organization exists in
the context of a complex commercial, economic, political, technological, social,
and cultural world. Moreover, as we know, these environment changes in a
heartbeat. These unprecedented change, or otherwise can affect the company greatly.
We know and appreciate that change is inevitable. Thus, depending on the
positioning of a corporation, these environmental changes might result into a
lucrative opportunity or present a threat that will shake the very fabric of
the corporation. We would rather be casualties of the former. Right?
During these stage use these two tools: DESTEP analysis and SWOT analysis.
‘A DESTEP analysis is a broad analysis of the various
demographic, economic, social, technological, ecological and political
developments and factors that are expected to have an impact upon the
organization and its operations.’ Says Cornelissen. This guided framework enables management to deduce the most pressing
changes and foresee any future changes in the environment.
A SWOT analysis on the other hand, stands for an investigation of the strengths, weaknesses,
opportunities, and threats. This involves taking a blank sheet of paper and
subdividing into four quadrants and at the top of each quadrant, one through four
indicate the titles strengths, weaknesses, opportunities, and threats. Proceed to list what you factors you think fall under each category.
The first half of this
analysis – strengths and weaknesses – examines the company’s position, its
capabilities, operations, and products vis-à-vis stakeholders, competitor
activities, environmental trends, and company resources. The second half of the
SWOT takes this review further to examine the opportunities and threats
identified within the environment, including, for instance, market
opportunities, political regulation, and shareholder activism. {Sic} At the heart of this analysis, lies the need to know which groups will support the corporations and which ones
would hinder any move the corporation might decide to make.
Remember that the whole purpose of
organization-environment analysis is not to generate long lists of factors and
points, but to provide a concise and to-the-point analysis of the organization
and its current position within the environment, adds
Market
and Competitive Analysis
Corporations exist to meet the needs of
certain markets. Conducting market research is a prerequisite when it comes to
penetrating a new market. Once you are in the market, it follows that you would
like to dominate the market. Thus the need for market and competitive analysis.
‘…identify what the competitive position of
the organization and its products is within the markets in which it operates and
whether the organization can target and serve those markets in a way that at
least rivals, if not exceeds, its nearest competitors.’ advises Cornelissen.
Gone are the days of John D. Rockefeller and
Andrew Carnegie, where they monopolized entire industries.Today, competition
is as alive as our beating hearts. And it would be a big mistake for anyone in business,
to think that they are all alone. The business ground shifted in the favour of the majority.
‘An analysis of the structure of a market
includes identifying the size of the market and trends within it, and whether
the market can be further partitioned into different market segments. An
analysis of the customers includes gathering data and drawing up a detailed
profile of customers within the market or market segments in terms of their
buying and consumer behaviour.’ states Cornelissen. This is what is referred to
as market analysis.
In conducting competitor analysis, Michael
Porter is the go-to person. His five forces model is often used to conduct a
thorough competitive analysis. ‘The five forces – each with a different threat – are industry
competitors (threat of intense segment rivalry), potential entrants (threat of
new entrants), substitutes (threat of substitute products), buyers (threat of
buyers’ growing bargaining power), and suppliers (threat of suppliers’ growing
bargaining power).’ {Sic}
Stakeholder Analysis
The corporation exists to meet certain interests. It follows
that cultivating and sustaining a great relationship between corporation and
stakeholders is something we need to think of consistently and persistently. It is a fragile relationship.
‘Stakeholder analysis should at least provide some answers
to the following questions: how will the organization’s actions affect
stakeholders? What influence can stakeholders exert on the organization that
may affect the realization of its goals? What type of consequences may result
from either’s actions? What type of behaviours from stakeholders does the
organization wish to encourage? What reputation does the organization have with
its stakeholders?’ {Sic}
In conducting stakeholder analysis, these two
tools come in handy. Stakeholder mapping and reputation research.
‘Stakeholder mapping is an analytical tool
whereby managers start with identifying all stakeholder groups of an
organization and display their relationship to the organization,’ says Cornelissen,
‘and one another visually in a map. This mapping exercise should enable the
primary stakeholder relationships to be identified and the patterns of
interdependence to emerge.’ Consider going on a journey to a new town-you will need a map to know which route to follow and so forth. That is the idea behind this stakeholder mapping tool.
Through qualitative methods of research,
in-depth interviews, and focus group sessions, and quantitative methods of
reputation research; the latter including a larger sample of respondents who
are then asked to rate the organization on a number of pre-defined dimensions. The outcomes of such reputation research may be
compared to a target or benchmark that the company has set for itself in terms
of how it wants to be known and appreciated by key stakeholder groups.
Since strategic analysis is the gateway to
writing an effective communications strategy, taking a considerable amount of
time to have all your facts right is imperative. By conducting organization-environment,
market & competitive and stakeholder analysis, you will be armed with
information on which to make informed decisions. Consider this a shot in the
arm. Lock and load.
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