discussion response

Post ID: 3489332

Angela Dyer-Cannon

Feb 8 2:16pm

Reply from Angela Dyer-Cannon

Week 3 Discussion Post

External Environment, Power/Weakness, and Decision Models

Angela S. Dyer-Cannon

School of Business, Liberty University

BUSI770: Strategy Formulation and Strategic Thinking

Dr. Gatlin

February 8, 2026

Author Note

Angela S. Dyer-Cannon

I have no known conflict of interest to disclose. Correspondence concerning this article should be addressed to Angela S. Dyer-Cannon.

Email: [email protected]

External Environment, Power/Weakness, and Decision Models

Introduction

The evaluation of the external environment is an important part of the process during development of a strategy. For this to be completed effectively, an organization should follow the model of answering seven guiding questions and documenting the answers in an analytical fashion to in the strategic process discussions. Following this, there will also be an emphasis on how strategic thinking can be both a strength and weakness utilizing the expertise of Rumelt. This discussion will also highlight the importance of my selected decision model, Eisenhower Matrix, and the impact on evaluating the external environment during the strategic process. A Biblical integration will tie the lessons in the Bible to the process of evaluating the external environment.

Process: Evaluating the External Environment

The evaluation of the external environment is a key process in the development of an organization strategy. To successfully evaluate the external environment, it is important to look at this using a series of analytical questions to assess the environment (Gamble et al., 2024). These questions incorporate the relevant external environmental considerations to conduct a thorough analysis. This begins with a macro-environmental assessment to document relevant factors of the external environment, using a methodology such as PESTEL, followed by an evaluation of competitive forces and driving forces (Gamble et al., 2024, p. 35). Next is an assessment of industry competition, assumptions of the rival organizations strategic moves, evaluation, and documentation of key success factors in the industry, and overall industry outlook (Gamble et al., 2024, p. 35). By documenting the answers to these important questions, a detailed analysis can be conducted to ensure the strategy is viable with external factors.

Another opportunity for success in this landscape is highlighted by research on the importance of preparing business school students with the necessary capabilities to properly evaluate the external landscape and handle complex topics never encountered (Webb & Sarpong, 2025). This will empower organizations to be more prepared to operate in a theoretical framework. (Webb & Sarpong, 2025). Like the research by Webb and Sarpong, Dluhopolska et al. (2024), also reviews the theoretical implications of the external environment and the impact on the strategic planning aspect of the organization. There is further discussion on the implementation of the strategic direction after development of the plan, including the importance of monitoring the risks and outcomes to ensure the desired outcomes (Dluhopolska et al. (2024). Modern external conditions continue to grow more complex, which makes this a critical component of solid strategic decision-making process.

Strategic Thinking: Key Source of Power/Weakness

Strategic thinking can be a source of power or weakness for an organization. One instance of strategic thinking being a source of power is by not only using their competitive advantage but deepening the advantage (Rumelt, 2011). This requires taking advantage of a particular situation that results in an increase in demand to drive higher revenues (Rumelt, 2011). Another way is by implementing isolating mechanisms, which helps maintain a competitive advantage by blocking others to enter the market (Rumelt, 2011). An organization also needs to know when to pull back when they are in a no-win situation (Rumelt, 2011). There are some weaknesses to some lines of strategic thinking as well. Rumelt (2011) explains a strategy that is just driven off acquisitions can be a weakness to an organization. It is also a problem for an organization to have a strategic plan but not actually take action to implement it (Rumelt, 2011). This is evidenced by research as well highlighting the need for more flexibility (Webb & Sarpong, 2025). This is classified as engineered growth versus healthy growth, which is driven by a strong product focus and demand (Rumelt, 2011). These lines of thought are not innate. Research shows that organizations are not ready for many of the strategic decisions that need to be made (Webb & Sarpong, 2025). Business schools cannot provide enough guidance on handling complex situations when deciding and executing a strategy that results in this being a weakness to the organization (Webb & Sarpong, 2025).

Decision Model

In the prior week discussion, I had switched from the Drexler/Sibbett Team Performance and Consequences Model to the Eisenhower Matrix to be more strategic and not get as bogged down in analysis paralysis (Krogerus et al., 2018). The Eisenhower Matrix is supportive of evaluating the external environment as a part of the decision-making process (Krogerus et al., 2018). This model also prioritizes how to deal with various issues depending on urgency and can be supportive in assessing the urgency of situations to determine what is truly important right now versus a longer-term issue. There are some ways that this approach may not be as accurate because it requires some subjectivity which can lead to potential misclassification as to the urgency. I still think the Eisenhower Matrix is the best option for me to utilize in any evaluations of the external environment as the prioritization is a key enabler to establishing a true strategy. The primary concern I have with the approach is the subjectivity of categorizing the issues or concerns, but I also think this is the best option for me and my organization.

Biblical Integration

The scripture lends guidance on the importance of strategy and the guidance of the Lord. This is demonstrated in Proverbs 16:9, “In their hearts humans plan their course, but the Lord establishes their steps,” (Mom’s Devotional Bible, New International Version [NIV], 1973/2012, p. 725). This verse highlights that although planning and strategy is important, God is still in control. This is why Keller & Alsdorf (2016) emphasize the importance of correlating the external environment to the individual personal convictions to ensure alignment between the two. This is important to this discussion as it is rooted in the external environment assessment but having that alignment with the values and ideals of the individual. It is important to remember core values and ensure the direction being taken aligns with those (Keller & Alsdorf, 2016). In Philippians 2:3-4, “Do nothing out of selfish ambition or vain conceit. Rather, in humility value others above yourselves, not looking to your own interest but each of you to the interests of others,” (Mom’s Devotional Bible, New International Version [NIV], 1973/2012, p. 1353). This scripture highlights the importance of maintaining values and not letting greed for profit overtake making the right decisions.

Conclusion

This discussion has covered the importance of evaluating the external environment as a key process in strategic development. By completing analysis and using methodologies such as PESTEL and SWOT analysis, a more thorough strategy can be established considering the many external factors in the current state and those identified as long term risks and opportunities. Strategic thinking can be viewed as a key advantage or weakness, depending upon the plans that surround the strategy; simply thinking strategically without a plan will be a weakness, a robust plan is essential. Decision models support strategic efforts; in this case the Eisenhower Matrix is the selected model which allows for prioritizing urgent versus non-urgent decision making. Evaluating the external environment for crafting a strategy is aligned with the scripture as there are several instances in the Bible providing guidance for these efforts. In closing, the importance of the evaluation of the external landscape is a critical component of a successful strategic plan as demonstrated in the literature and supporting research.

Annotated Bibliography

Source 1:

Dluhopolska, T., Katola, T., & Khroponiuk, D. (2024). The influence of the external environment on the formation of the strategic behavior of the company. Innovation and Sustainability, 92–101. https://doi.org/10.31649/ins.2024.2.92.101Links to an external site.

Summary of Key Points

In this peer reviewed journal article, the authors review the development and formation of a company strategy while assessing the external environment (Dluhopolska et al., 2024). The research aims to understand how the theoretical framework can be impactful to strategic management (Dluhopolska et al., 2024). This article discusses the importance of reviewing the external environmental factors such as globalization and technological developments (Dluhopolska et al., 2024). The literature also looks at how to assess risks with the external environment review (Dluhopolska et al., 2024).

Evaluation of the Quality of the Publication

The Journal of Innovation and Sustainability is a highly regarded peer reviewed journal. Each submitted article undergoes the peer review process two times in a blind review process. The purpose of this publication is to drive variable facets of sustainability and require all content to be original and not a reprint. This article has only been cited two times though which is not very high.

Evaluation of the Quality of the Author(s)

There are three authors of this article. The first author, Dluhopolska, has over 500 articles in Google Scholar, the second, Katola, had even more articles and had been cited over two thousand times, and the third, Khroponiuk, included about 50 articles with a significant number of citations. This article has only been cited two times though which is not very high; however, all the authors have a significant amount of published works in peer reviewed journals.

Where this Fits into the Discussion

This research fits well in supporting the discussion on the importance of evaluating the external environment as part of an organization strategy. The authors support the importance of being able to assess the risks and opportunities associated with decisions and emphasize the complex external factors that must be evaluated during this time which aligns with the text guidance (Dluhopolska et al., 2024). The research also strives to understand how management uses this knowledge to make better sound decisions on strategic direction (Dluhopolska et al., 2024).

Source 2:

Webb, D., & Sarpong, D. (2025). Simplicity beyond complexity: A pluralist approach to the practice and teaching of strategy. Journal of Knowledge Management, 30(1), 313–337. https://doi.org/10.1108/jkm-04-2025-0488Links to an external site.

Summary of Key Points

The authors of this peer reviewed article aim to come up with a comprehensive way to teach the evaluation of the external environment and the associated impact with strategic management and thinking (Webb & Sarpong, 2025). They note the gap in business school education and how economic crashes have impacted organizations with leaders not knowing how to navigate those situations (Webb & Sarpong, 2025). The authors also highlight how competitive advantage is not consistently sustainable and can disappear quickly and how artificial intelligence is going to continue to make this even harder to maintain (Webb & Sarpong, 2025). Webb and Sarpong (2025) provide a conclusion on how students need to be prepared for more than the usual external environment as the intricacies of this environment continue to get more complex every day.

Evaluation of the Quality of the Publication

This was a publication in the Journal of Knowledge Management, which is a well-regarded peer reviewed journal. This article was published in September of 2025 and has had 187 views and 188 downloads in just five months showing this is an article that has validity to many. The article has been cited many times as well, which is detailed further in the quality discussion below about the authors.

Evaluation of the Quality of the Author(s)

This was a peer reviewed article with two authors that are both professors in strategy, and one has over forty years of management experience. The author David Webb has been cited over 61 thousand times and David Sarpong has been cited about five thousand times. With their experience and education experience, they are both strong contributors to this important topic in strategy.

Where this Fits into the Discussion

This article fits in the discussion post as support of strategic thinking being a source of power and weakness. The authors highlight the impact of artificial intelligence on competitive advantage and the difficulty of sustaining that (Webb & Sarpong, 2025). Additionally, the research begins to start the right discussions at universities as to how external conditions impact strategy and how those should be taught (Webb & Sarpong, 2025). An example is the COVID-19 pandemic, many leaders had no idea how to navigate that situation and geopolitical risks, students need to be better prepared to handle those complex situations (Webb & Sarpong, 2025).

References

Gamble, J., Peteraf, M. A., & Thompson, A. A. (2024). Essentials of Strategic Management: The Quest for Competitive Advantage. McGraw Hill LLC.

Keller, T., & Alsdorf, K. L. (2016). Every Good Endeavor: Connecting Your Work to God’s Work. Penguin Books, an imprint of Penguin Random House.

Krogerus, M., Tschäppeler, R., & Piening, J. (2018). The Decision Book: 50 Models for Strategic Thinking. W.W. Norton & Company.

Mom’s Devotional Bible, New International Version. (2012). Zondervan (Original work published 1973).

Rumelt, R. P. (2012). Good Strategy, Bad Strategy: The Difference and Why it Matters. Crown Business.

BUSI770.Week3DiscussionPost.AngelaCannon.docx