Five I’s Strategic Analysis

Five I’s Strategic Analysis
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Five I’s Strategic Analysis
The Five Forces of Porter is a powerful but simple tool which is necessary for understanding the power position in a business context. This tool has great significance since it helps an entrepreneur to be aware of both his current rivalry’s strength position and the competition strength of the next position this business person wishes to move. When business owners understand all these, they can take advantage of the strength situation, work on improving their weaknesses, and be cautious when it comes to making steps in business (Warner, 2010). The strategy is conventionally used to find out if services, new products, or business organization can be profitable. However, it can be very productive when used in the understanding of power balance in various situations. In this article, I am going to discuss the Five I’s Strategy and how it can be helpful in a business situation.
The first step is to identify the issue questions; this is where entrepreneurs need to ask themselves what issue their businesses are facing, i.e. they should familiarize themselves with the issue. After that, these employers then need to find out at what stage of the issue’s lifecycle is the issue? Secondly, the business owners should identify the strategic shareholders who are interested in their businesses (Warner, 2010). As per this, the entrepreneurs needs to ask themselves which shareholders will benefit from the way that problem is tackled and who will support that problem-solving strategy.

Additionally, the entrepreneur should be aware of the number of shareholders who will not be for the way that issue is handled or who cannot benefit from it. The third thing that business owners should analyze is the shareholders’ incentives. Here, entrepreneurs need to know the grounds for the validity of the claims made by shareholders of the firm. The business owners should also ask themselves what power their shareholders have on the firm’s performance, how urgently do they need to react towards implementation or development of the non-market issue (Nelke, 2012). It is also important for the business owners to identify the probability of the action taken by the shareholder basing on its benefits versus its cost to the shareholders. The actions that could be taken by shareholders is another thing employers need to put into consideration; they should also be aware of the consequences which could come alongside those actions taken by the shareholders. The fourth step which should be made by business owners is to find information about their business. In this sector, they need to understand what people know regarding the problem and the factors which are influencing on the growth of the problem. They should also find out which goals must be achieved by the firm so that shareholder’s value can be created. To add on this, employers should find out the information needed if the objectives are to be met (Zhang, Liu, & Li, 2011). The managers also need to confirm the accuracy and reliability of the sources they use to get their information, and how accurate facts can be sorted out by the firm from the sentiments and assumptions. The fifth step needed to be observed by owners of businesses is the interaction strategies step. Here, the company needs to generate new strategies which can help it meet their objectives. It should also forecast nonmarket and market consequences and reactions of each of the substitute. Additionally, the firm needs to choose the most appropriate and feasible strategies which can make it meet its objectives and lastly, the owners should implement, adjust and evaluate those strategies that are selected.
The 5 I’s steps for strategic analysis steps are very significant to a firm since when followed correctly, the company will achieve its objectives which include, making profits, and maintaining its good relationship with its buyers and shareholders and customers (Zhang, Liu, & Li, 2011). Such steps should be taken by any firm since they simplify the process which can help firms meet their set goals which are usually the primary objective of most firms.
References
Nelke, M. (2012). Strategic business development for information centres and libraries (1st ed.). Oxford [England]: Chandos Publishing.
Warner, A. (2010). Strategic analysis and choice (1st ed.). New York: Business Expert Press.
Zhang, H., Liu, L., & Li, T. (2011). Designing IT systems according to environmental settings: A strategic analysis framework. The Journal Of Strategic Information Systems, 20(1), 80-95. http://dx.doi.org/10.1016/j.jsis.2011.01.001