Strategic Planning in the Small Business

Unit 2

HO 2-4 (conthed)

adjust its strategic outlook without a keen awareness

of its key

environmental

concerns? Environmental

assessment and anal­

ysis forms the basis for overcoming

the firm's prob-:ms. Rather

than

being a time-consuming barrier, environmental

analysis

is a tool

for corrective action.

We must

recognize and cauion the reader

that organiza­

tional

success may foster an attitude of invincibility

and again,

prompt

the small businessperson to refrain

from devoting the

necessary energy to

environmental analysis. McNichols

notes

that "one of the greatest

bar-riers to change and adjustment

is

past success".' An often

heard argument is: "We've done

it this

way for 20 years and

we've been stcce:sful. Why should

we

change now?" Often, businesses

with such an outlook are forced

to change when suddenly the bottom

line starts showing de­

clining results. This does not mean

that the business has to

constantly

be in a state of flux. Indeed, one

may determine that

there is no need for change. But, the

decision must be based

on careful

analysis and evaluation and should

not be, simply,

the result

of ccmplacency. If a manager

continually assesses,

analyzes, and interprets

key environmental cues,

the basis for

decisions are grounded

in thoughtful reason.

An appendix at the end

of this chapter conta,ns an actual

environmental analysis

du e for a local hardware store.

It il­

lustrates the information that

is available for this type of anal­

ysis,

as well as the results of

the analysis.

2. Thomas J. McNichols,

Policy-Making and Ex=d utive Action, 6th ed.,

(New York:

McGraw-Hill, 1983), 97.

45

Chapter One EnvironmentalAnalysis

188