Influence of External Environment on The MaNet Project

Strategic planning requires ‘broad-scale yet effective information gathering’ which is followed by clarification of the vision and mission, development of strategic alternatives, and an emphasis on implementation of decisions in the future. Since MaNet is a long-term perspective project, it is crucial to identify trends in different sectors and to gain advantage of the potential changes. The next step after assessing trends in the external macroenvironment is monitoring crucial stakeholders like customers, funders, and relevant policy bodies. It is indispensable for the Mastorochoria Network to attend not only to competitors and competitive forces, but also to potential collaborators and sources of collaborative advantage. In addition, a benchmarking is conducted in order to identify best practices and apply them in accordance with the guidelines and frameworks of the project (Grant 2010; Kotler 2008; Angwin, Cummings & Smith 2007; Bryson 2004:6).

External Macroenvironment

ESTEMPLE Analysis
Monitoring a wide range of factors, including economic, social, technological, environmental, political, legal and ethical ones reveals opportunities and challenges for the Project. ESTEMPLE analysis has been chosen as a tool since it provides a sufficient assessment of the external environment in order to identify the impact of macro changes, scale the vulnerability to the challenges and relate the Project to its external environment. ESTEMPLE Analysis confirms the transitional character of the external environment. The economic crisis created new opportunities that posed a formidable challenge for the cultural sector. The situation demands a new perspective on the circumstances in order to discover more suitable solutions. In order to be more sustainable, resilient, innovative and relevant, the MaNet project must take into consideration the shrinking public sector and reliance on European and/or international funds. Restrictions for domestic and foreign investments, inefficient regulation of business may become obstacles for the project. The decline of freedom from rise in corruption over last four years signals a trend that may have a negative impact on funding opportunities. Demographic change in the form of transformation of the age structure of the whole society must become key issues for the Project since if effects both economic efficiency and intergenerational equity. The Project must follow the EU regulations and guidelines, especially those that refer to the protection of the environment in order to fill the existing gaps in this field and to plan and work in accordance with the environmental policies at different levels. A lack of innovation policy and a gap in a networking between research and business must be an impetus for the project, along with the gaps that need to be filled. It is indispensable to continue monitoring the external environment in the field of developmental programmes and projects, as well as legal frameworks for regional policies at national, European and international levels to be able to respond to the challenge of recognizing potential mismatches and gaining advantage of them.

External Microenvironment

Porter’s Five Forces
In order to be able to understand the contexts in which MaNet operates and to respond effectively to changes in these contexts, a Five Competitive Forces analysis was chosen as a tool for examining the so-called external microenvironment. According to Michael E. Porter, the author of the revolutionary text ‘Five Competitive Forces’, the job of a strategist is ‘to understand and cope with competition’ (2008). While in the for profit sector Porter’s Five Forces model is a tool for measuring the profitability potential, the non-profit organizations use Porter’s analysis in order to assess the impact on the effectiveness and efficiency of the performance and develop strategies accordingly. Potential impacts on the ability to implement the plan by the Development Agency of Epirus S.A., have to be taken into account while planning (Lloyd 2010; Porter 2008; Bryson 2004:39).

Porter’s Five Forces provides an overview of the non-profit sector with a focus on Greek reality and funding trends. The public sector is shrinking, while social benefit actions can be implemented with funding from other pools and without the contribution of the Hellenic state. Hence a new model has been established: projects are being conducted outside the State office, which simplifies a wide range of procedures, while the state is being perceived as a reliable partner or beneficiary. Hence, funds have the most power in terms of the MaNet Project. The rivalry in the sector is rather low and offers a lot of opportunities for cooperation.