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TRENDS, NETWORKS, AND

CRITICAL THINKING IN
THE 21ST CENTURY
12
Trends, Networks, and Critical Thinking in the 21st Century – Grade 12
Quarter 3 – Module 8: Title: Explain strategic analysis and intuitive thinking

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Trends, Networks, and Critical
Thinking in the 21st Century
12
Quarter 3
Self-Learning Module 8
Title: Apply Strategic Analysis/Thinking Networks
Introductory Message

For the Facilitator:

Welcome to the Trends, Networks, and Critical Thinking in the 21st Century-
Grade 12 Self-Learning Module on Apply Strategic analysis/Thinking Networks!

This Self-Learning Module was collaboratively designed, developed and

reviewed by educators from the Schools Division Office of Pasig City headed by its
Officer-in-Charge Schools Division Superintendent, Ma. Evalou Concepcion A.
Agustin, in partnership with the City Government of Pasig through its mayor,
Honorable Victor Ma. Regis N. Sotto. The writers utilized the standards set by the K
to 12 Curriculum using the Most Essential Learning Competencies (MELC) in
developing this instructional resource.

This learning material hopes to engage the learners in guided and independent
learning activities at their own pace and time. Further, this also aims to help learners
acquire the needed 21st century skills especially the 5 Cs, namely: Communication,
Collaboration, Creativity, Critical Thinking, and Character while taking into
consideration their needs and circumstances.

In addition to the material in the main text, you will also see this box in the
body of the module:

Notes to the Teacher

This contains helpful tips or strategies that
will help you in guiding the learners.

As a facilitator you are expected to orient the learners on how to use this
module. You also need to keep track of the learners' progress while allowing them to
manage their own learning. Moreover, you are expected to encourage and assist the
learners as they do the tasks included in the module.
 For the Learner:

Welcome to the Trends, Networks, and Critical Thinking in the 21st Century
Self-Learning Module on Apply strategic analysis/thinking networks!

This module was designed to provide you with fun and meaningful
opportunities for guided and independent learning at your own pace and time. You
will be enabled to process the contents of the learning material while being an active
learner.

This module has the following parts and corresponding icons:

Expectations - This points to the set of knowledge and skills

that you will learn after completing the module.

Pretest - This measures your prior knowledge about the lesson

at hand.

Recap - This part of the module provides a review of concepts

and skills that you already know about a previous lesson.

Lesson - This section discusses the topic in the module.

Activities - This is a set of activities that you need to perform.

Wrap-Up - This section summarizes the concepts and

application of the lesson.

Valuing - This part integrates a desirable moral value in the

lesson.

Posttest - This measures how much you have learned from the
entire module.
 EXPECTATIONS

1. Explain and categorize components of strategic analysis and strategic

thinking

2. Apply strategic analysis and strategic thinking using color coded map of
networks of power relations within particular community

3. Justify the importance of strategic analysis and strategic thinking in

business stability

PRETEST

Directions: Choose the words in the given box according to its organization.
Write the answer on the blank provided. (10 points).

SWOT
1. S___________
2. W__________ POLICY, POLITICAL, PRACTICAL
3. O___________ ECONOMIC, ECOLOGY, ECOSYSTEM
4. T___________ EXECUTIVE, ENVIRONMENTAL
SORORITY, SOCIETAL, SOCIOLOGY
PESTLE TECHNICAL, TECHNOLOGICAL
LOGIC, LEGAL, LABOR
5. P__________ EARTH, ETHICAL, ELECTRICAL
6. E__________ STRETCH, STRENGTHS, SUPPLIERS
7. S__________ WEAKNESSES, WORKOUT, WORLD
8. T__________ OBEDIENT, OPPORTUNITIES, OATH
9. L__________
THREATHS, TANGIBLE, TUTELAGE
10. E__________
 RECAP
Directions: Find and encircle the words that correspond to each number. (5
points).

L O C A L N E T W O R K
O L A E C A R S P O T I
V D R V T T H R E N D N
E C T I P L A C E A B D
E N S T R A T E G I C F
P O O I W O R L D E I I
K S L U K G I S A P O R
B S D T H I N K I N G E
V E B N P O D E L L A C
I L S I S Y L A N A A K

1. LOCAL NETWORK
2. STRATEGIC
3. THINKING
4. ANALYSIS
5. INTUITIVE

LESSON

Strategic Analysis Process

Corporate Finance Institute (2021), defines strategic analysis as process of

conducting research on a company and its operating environment to formulate a
strategy. The definition of strategic analysis may differ from an academic or
business perspective, but the process involves several common factors:
1. Identifying and evaluating data relevant to the company’s strategy
2. Defining the internal and external environments to be analyzed
3. Using several analytic methods such as Porter’s five forces analysis, SWOT
analysis, and PESTLE analysis.

Strategic Analysis Model

1. SWOT (strengths, weaknesses, opportunities, threats) analysis

SWOT stands for Strengths, Weaknesses, Opportunities, and Threats, and so a

SWOT Analysis is a technique for assessing these four aspects of business and
organization (Mindtools.com, 2021).

Understanding SWOT analysis gives the organization and businesses the edge and
chance assessing how to; capitalize on strengths, minimize the effects of
organizational weaknesses, make the most of any opportunities, and reduce the
impact of any threats the organization or business model might potentially
encounter along the way.

SWOT analysis is divided into two categories: internal factors (strength and
weaknesses) and external factors (opportunities and threats). It is important to
point out that strengths and weaknesses are current or backward-looking, and
opportunities and threats are forward-looking. By performing a SWOT analysis, we
will be able to build a bridge between what the company and organization has
accomplished to date and the strategic alternatives that are going to be generated.

For internal factors, strengths are the characteristics that give the business and
organization its competitive advantage, while weaknesses are characteristics that
a company or organization needs to overcome in order to improve its performance.
On the other hand, external factors referred to opportunities which are elements
that the company or organization sees in the external environment that it could
pursue in the future to generate value. Threats are elements in the external
environment that could prevent the company or organization from achieving its
goal or its mission or creating value (definition adopted from
CorporateFinanceInstitute.com, 2021).

Internal Factors (Strength and External Factors (Opportunities and

Weaknesses) threats)
Company culture Societal changes
Company image Customers
Operational efficiency Competitors
Operational capacity Economic environment
Brand awareness Government regulations
Market share Suppliers
Financial resources Partners
Key staff Market trends
Organizational structure

2. PESTLE (political, economic, social, technological, legal and

environmental) analysis

PESTLE analysis, which is sometimes referred to as PEST analysis, is an original

concept in marketing principles. It gives a bird’s eye view of the whole environment
from many different angles that one wants to check and keep a track of while
contemplating a certain idea/plan (PestleAnalysis.com, 2021). The letters in
PESTLE stand for Political, Economic, Social, Technological, Environmental, Legal
and Ethical (Oxford College of Marketing, 2016). It allows a company and
organization to form an impression of the factors that might impact a new business
or industry (Green, 2018). PESTLE is a technique for understanding the various
external influences on a business and organization (Corporate Finance Institute,
2021).

A PESTLE analysis allows a strategic and systematic evaluation of a business's

prospects, risks and opportunities in a new environment. While a SWOT analysis
concentrates on a company's internal processes, PESTLE provides information on
external factors and both University of Sydney and Oxford University explains
through the following:

Political Factors
These determine the extent to which government and government policy may
impact on an organization or a specific industry. This would include political policy
and stability as well as trade, fiscal and taxation policies too.

Economic Factors
These factors impact on the economy and its performance, which in turn directly
impacts on the organization and its profitability. Factors include interest rates,
employment or unemployment rates, raw material costs and foreign exchange
rates.

Social Factors
These factors focus on the social environment and identify emerging trends. This
helps a marketer to further understand their customers’ needs and wants. Factors
include changing family demographics, education levels, cultural trends, attitude
changes and changes in lifestyles.

Technological Factors
These factors consider the rate of technological innovation and development that
could affect a market or industry. Factors could include changes in digital or
mobile technology, automation, research and development. There is often a
tendency to focus on developments only in digital technology, but consideration
must also be given to new methods of distribution, manufacturing and also
logistics.

Environmental Factors
These factors relate to the influence of the surrounding environment and the
impact of ecological aspects. With the rise in importance of CSR (Corporate
Sustainability Responsibility), this element is becoming more important. Factors
include climate, recycling procedures, carbon footprint, waste disposal and
sustainability

Legal Factors
An organization must understand what is legal and allowed within the territories
they operate in. They also must be aware of any change in legislation and the
impact this may have on business operations. Factors include employment
legislation, consumer law, healthy and safety, international as well as trade
regulation and restrictions. Political factors do cross over with legal factors;
however, the key difference is that political factors are led by government policy,
whereas legal factors must be complied with.

Ethical Factors
The most recent addition to PESTEL is the extra E - making it PESTELE or
STEEPLE. This stands for ethical, and includes ethical principles and moral or
ethical problems that can arise in a business. It considers things such as fair trade,
slavery acts and child labor, as well as corporate social responsibility (CSR), where
a business contributes to local or societal goals such as volunteering or taking part
in philanthropic, activist, or charitable activities (Professionalacademy.com, 2021).
 3. Porter's Five Forces framework

Porter's Five Forces is a strategic analysis model that helps to explain why various
industries are able to sustain different levels of profitability. The model was
published in Michael E. Porter's book, "Competitive Strategy: Techniques for
Analyzing Industries and Competitors" in 1980. The five forces are frequently used
to measure competition intensity, attractiveness, and profitability of an industry
or market (Investopedia.com, 2020).

Porter's Five Forces is a framework for looking at the strength of five important
factors that affect competition - potential entrants, existing competitors, buyers,
suppliers and alternative products/services. Using this model, you can build a
strategy to keep ahead of these influences.

Competition in the industry

The first of the five forces refers to the number of competitors and their ability to
undercut a company. The larger the number of competitors, along with the number
of equivalent products and services they offer, the lesser the power of a company.
Suppliers and buyers seek out a company's competition if they are able to offer a
better deal or lower prices. Conversely, when competitive rivalry is low, a company
has greater power to charge higher prices and set the terms of deals to achieve
higher sales and profits.

Potential of new entrants into the industry

A company's power is also affected by the force of new entrants into its market.
The less time and money it costs for a competitor to enter a company's market and
be an effective competitor, the more an established company's position could be
significantly weakened. An industry with strong barriers to entry is ideal for
existing companies within that industry since the company would be able to charge
higher prices and negotiate better terms.

Power of suppliers
The next factor in the five forces model addresses how easily suppliers can drive
up the cost of inputs. It is affected by the number of suppliers of key inputs of a
good or service, how unique these inputs are, and how much it would cost a
company to switch to another supplier. The fewer suppliers to an industry, the
more a company would depend on a supplier. As a result, the supplier has more
power and can drive up input costs and push for other advantages in trade. On
the other hand, when there are many suppliers or low switching costs between
rival suppliers, a company can keep its input costs lower and enhance its profits.

Power of customers
The ability that customers have to drive prices lower or their level of power is one
of the five forces. It is affected by how many buyers or customers a company has,
how significant each customer is, and how much it would cost a company to find
new customers or markets for its output. A smaller and more powerful client base
means that each customer has more power to negotiate for lower prices and better
deals. A company that has many, smaller, independent customers will have an
easier time charging higher prices to increase profitability.
Threat of substitute products

The last of the five forces focuses on substitutes. Substitute goods or services that
can be used in place of a company's products or services pose a threat. Companies
that produce goods or services for which there are no close substitutes will have
more power to increase prices and lock in favorable terms. When close substitutes
are available, customers will have the option to forgo buying a company's product,
and a company's power can be weakened.

4. SOAR (strengths, Opportunities, Aspirations, and Results) analysis

SOAR analysis is a strategic planning tool that helps the enterprises to focus on
the current opportunities and strengths, and create a vision for the aspirations in
the future and the outcome of the results that they will bring. SOAR analysis is a
contrast to the SWOT analysis and utilizes appreciative inquiries to concentrate on
the strength of the business. It does not shift its focus on the internal weaknesses
or threats that may not eventuate. SOAR analysis offers a foundation for the in-
depth analysis of the business implementing other tools (Priyanki Baruah, 2019).

ACTIVITIES

ACTIVITY 1

Directions: Using your own understanding about SWOT Analysis, create a

diagram explaining the Pasig City COVID-19 Pandemic responses. Use extra paper
if needed.
ACTIVITY 2 (Culminating Output)
Directions: Given the debate about the proposal amending the economic provision
of 1987 Constitution to encourage foreign investment into the Philippines, using
PESTLE analysis discuss the positive and or negative impact to the Philippines.

WRAP-UP

Directions: Complete the sentences.

I have learned that…

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 VALUING

A strategy is how something gets done, not just what you do. A
strategy is your approach. It is your positioning. It is your smart
way of reaching the goal with the least amount of wasted effort or
cost. With a strategy, you are not always working directly on the
goal itself, but rather on improving or positioning the
environments, relationships, resources, flows, systems, or even
yourself.

As the saying goes: Failure to plan is planning to fail.

POSTTEST

Directions: Read carefully each questions and encircle the letter of the
correct answer. (10 points)

1. PESTLE analysis in which determine the extent to which government and

government policy may impact on an organization or a specific industry
a. Political b. Economic c. Social d. Technological
2. PESTLE analysis that focuses in factors include interest rates, employment
or unemployment rates, raw material costs and foreign exchange rates.
a. Political b. Economic c. Social d. Technological
3. PESTLE analysis that give attentions to factors include changing family
demographics, education levels, cultural trends, attitude changes and
changes in lifestyles.
a. Political b. Economic c. Social d. Technological
4. PESTLE analysis that is key component is to consider the rate of
technological innovation and development that could affect a market or
industry
a. Political b. Economic c. Social d. Technological
5. PESTLE analysis that give importance to climate, recycling procedures,
carbon footprint, waste disposal and sustainability
a. Political b. Ethical c. Legal d. Environmental
6. PESTLE analysis that emphasis to employment legislation, consumer law,
healthy and safety, international as well as trade regulation and restrictions.
a. Political b. Ethical c. Legal d. Environmental
7. PESTLE analysis that gave meaning to principles and moral problems
that can arise in a business
a. Political b. Ethical c. Legal d. Environmental
8. Strategic analysis model that helps to explain why various industries are
able to sustain different levels of profitability.
a. Porter's Five Forces b. SWOT analysis c. PESTLE analysis d. SOAR
analysis
9. Strategic analysis model that offers a foundation for the in-depth analysis
of the business implementing other tools.
a. Porter's Five Forces b. SWOT analysis c. PESTLE analysis d. SOAR
analysis
10. Strategic analysis model that gives the organization and businesses the
edge and chance assessing challenges using internal and external factors.
a. Porter's Five Forces b. SWOT analysis c. PESTLE analysis d. SOAR
analysis

KEY TO CORRECTION

PRE-TEST ANSWER KEY

1. Strength 2. Weaknesses 3. Opportunities 4. Threats 5. Political
6. Economic 7. Social 8. Technological 9. Legal
10. Ethical or Environmental

POST TEST ANSWER KEY

1. a 2. b 3. c 4. d 5. d. 6. c 7. b 8. a 9. d 10. b
References
Online Articles and Blogs

1. Corporate Finance Institute (2021). Strategic Analysis. Retrieved from:

https://corporatefinanceinstitute.com/resources/knowledge/strategy/strate
gic-analysis/
2. Green, Alexander (2018). How to Use IBISWorld Research in a PESTLE
Analysis. Retrieved from https://www.ibisworld.com/industry-insider/how-
to-use-industry-research/how-to-use-ibisworld-research-in-a-pestle-
analysis/
3. Invesopedia.com (2020). Porter's 5 Forces. Retried from
https://www.investopedia.com/terms/p/porter.asp#:~:text=Porter's%20Five
%20Forces%20is%20a%20framework%20for%20analyzing%20a%20compan
y's,products%20influence%20a%20company's%20profitability.
4. Mindtools.com(2021). SWOT Analysis. How to Develop a Strategy For Success.
Retrieved from https://www.mindtools.com/pages/article/newTMC_05.htm
5. Oxford College of Marketing (2016). What is a PESTEL analysis? Retrieved
from https://blog.oxfordcollegeofmarketing.com/2016/06/30/pestel-
analysis/
6. PestleAnalysis.com (2021). What is PESTLE Analysis? An Important Business
Analysis Tool. Retrieved from https://pestleanalysis.com/what-is-pestle-
analysis/
7. Professionalacademy.com (2021). Marketing Theories – Pestel Analysis.
Retrieved from https://www.professionalacademy.com/blogs-and-
advice/marketing-theories---pestel-analysis
8. Priyanki Baruah (2019). What is SOAR analysis?. Retrieved from
https://planningtank.com/market-research/soar-analysis
9. University of Sydney (2021). Marketing: PESTLE Analysis. Retrieved from
https://libguides.library.usyd.edu.au/c.php?g=508107&p=5994242

Pictures taken Online

Courtesy of Google Search Engine
1. SWOT Analysis template https://creately.com/blog/examples/swot-
analysis-templates-creately/
2. PESTLE Analysis template https://getlucidity.com/strategy-
resources/ultimate-guide-to-pestle/