Dr. Patrik Ström Department of Human and Economic Geography Business Environment Analysis in Practice

Why business environment analysis? Take informed decisions – ”the right decisions” General or sector specific information Geographical level Factors Politics – e.g. system Economy – GDP, debt, trade, FDI Social aspects – education, health care, welfare Technology – level, research, policies

Methods for BEA? Scenario planning - results Structure planning – models  e.g. Porter, 1990; Florida, 2002 Information gathering and analysis  e.g. EU legal framework, macro economy

Example: Criteria for market entry (medical) Stability and risks Possibility to operate / get returns Potential to become #1 Execution capability Overall size and potential Market attractiveness Market entry options Deal structuring / valuation

Work plan suggestions

Define the problem Make sure you always know what (and what not) to solve Break down the work into manageable work streams (MECE = mutually exclusive, collectively exhaustive) Make sure all stakeholders have the same view

Develop the work plan/organize the team There has to be a team leader who is overall accountable, guarantees delivery and makes final judgment call Ensure you have clear milestones of what to be delivered / by when and that these are followed up on

Solve the problem Make realistic assumptions Make sure you have a solid plan means -> success or failure You make decisions under uncertainty -> minimize uncertainty Limited availability of information -> need to make assumptions Use multiple sources of information -> triangulate assumptions Sanity check your assumptions -> does it make sense? Make sure you can back-up your assumptions -> state references Don’t run out of time -> use the 80/20 rule Be prepared to modify the work plan and focus on short notice

Report the results Spend some time “thinking through the story” Logic sequence Easy to follow What does the audience want to hear about? Focus on the essentials Supporting / non-critical analysis in back-up Clear recommendations with supporting rationale Always have 3 strong supporting rationale Clear messages, graphs, and so-what’s

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