Designing for superior business performance
A guide for technology, creative and startup leaders
"Turn on to politics or politics will turn on you.”
Ralph Nader
Choice 2: Where we play - Opportunity and threat discovery
Assess opportunities and threats from the political trends and events.
In this chapter
Assess political factors that can affect the demand for your value proposition, influence the direction your value proposition needs to move to maintain relevance and demand.
Assess political factors that can affect your costs of production or cost of supply or supply availability.
Introduction - political factors driving change
Describes trends or events in government policy that could affect demand, supply availability or costs including cost of labour. Identifies the beliefs in response to those observations and based upon those beliefs what might be expected to occur.
Taxes and regulations
If the customers served by a business are subject to increased taxes or regulatory / compliance costs this may decrease the amount of spending available for other types of products / services. Alternatively, it may increase spending for products / services that facilitate compliance.
Other government change triggers
Other considerations which may affect demand, the availability of supply and production costs, includes:
Trade restrictions / Trade disputes
Free trade agreements
Subsidies can decrease production costs for subsidised
Anti-trust or other anti-competition issues
products and industries, increasing the potential profitability but also lowering the
barriers for new entrants
Political assessment
Capture, investigate and sustain (journal style) the relevant political trends and events for each type of political influence.
Tax policy
Tax policy influencing demand, supply or production costs in this external environment.
| Observations |
Record your observations in here e.g. Taxes for customer segments we serve are proposed to be reduced. What are you seeing? |
| Beliefs |
What do you believe are the implications for the industry segment from these observations? e.g. Consumers will have more disposable income after taxes. What are you believing? |
| Expectations |
What are your expectations from this / these beliefs. Consumer demand may not increase as usually expected, from an increase in consumer income, until consumer confidence picks up following stabilisation of inflation, interest rates and energy costs. What are you expecting to happen? |
Regulatory obligations
Regulatory obligations influencing demand, supply or production costs in this external environment.
| Observations |
Record your observations in here e.g. Taxes for customer segments we serve are proposed to be reduced. What are you seeing? |
| Beliefs |
What do you believe are the implications for the industry segment from these observations? e.g. Consumers will have more disposable income after taxes. What are you believing? |
| Expectations |
What are your expectations from this / these beliefs. e.g. Consumer demand may not increase as usually expected, from an increase in consumer income, until consumer confidence picks up following stabilisation of inflation, interest rates and energy costs. What are you expecting to happen? |
Free trade agreements
Free trade agreements influencing demand, supply or production costs in this external environment.
| Observations |
Record your observations in here What are you seeing? |
| Beliefs |
What do you believe are the implications for the industry segment from these observations? What are you believing? |
| Expectations |
What are your expectations from this / these beliefs. What are you expecting to happen? |
Subsidies
Subsidies influencing demand, supply or production costs in this external environment.
| Observations |
Record your observations in here What are you seeing? |
| Beliefs |
What do you believe are the implications for the industry segment from these observations? What are you believing? |
| Expectations |
What are your business expectations from this / these beliefs. What are you expecting to happen? |
Anti-trust
Anti-trust influencing demand, supply or production costs in this external environment.
| Observations |
Record your observations in here What are you seeing? |
| Beliefs |
What do you believe are the implications for the industry segment from these observations? What are you believing? |
| Expectations |
What are your business expectations from this / these beliefs. What are you expecting to happen? |
Summary
Political factors influencing demand, supply or production costs in this external environment.
| Observations |
Record your observations in here What are you seeing? |
| Beliefs |
What do you believe are the implications for the industry segment from these observations? What are you believing? |
| Expectations |
What are your business expectations from this / these beliefs. What are you expecting to happen? |
Continue your assessment
Continue on to the Next section to start with an assessment of what economic factors could influence current and future demands for your value proposition or the cost to deliver it. You can do this for each of your where to play arena(s), or return the Guide home to choose a different option.
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