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Lesson 2.

Facility in Strategic Analysis

Trends, Networks, and Critical Thinking in the 21st Century Culture


General Academic Strand | Humanities and Social Sciences
The ability to
strategize and
analyze are
essential
survival skills.

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Strategic analysis is a
way of examining how a
problem can be broken
down into components
to make it more
actionable.

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Tools in
strategic
analysis can be
used to find
solutions to
problems that
we encounter.

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Facility in Strategic Analysis

Strategic Analysis

● Strategy came from the Greek word strategos,


meaning “general.”
● Strategic analysis is vital in managing networks.
● It is an effective leadership skill for keeping an
organization intact.

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Facility in Strategic Analysis

Strategic Management

● It aids in the achievement of the objectives through


planning, analysing, and making use of resources.

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Tools in Strategic Analysis

● important in analyzing an
organization and its
environment
● can be used as a mechanism
in improving communication,
control, and coordination

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Tools in Strategic Analysis

Examples of Tools:
● SWOT analysis
● PEST analysis

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Tools in Strategic Analysis

SWOT Analysis
● differentiates between
beneficial factors and
disadvantageous ones

● also differentiates
between internal and
external factors that
affect an organization
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Tools in Strategic Analysis

SWOT Analysis: Internal Factors


Strengths Weaknesses
● internal characteristics ● internal attributes or
of an organization or characteristics that put
individual that give the organization at a
them a competitive disadvantage
advantage

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Tools in Strategic Analysis
SWOT Analysis: External Factors
Opportunities Threats
● openings or ● conditions that can
environmental negatively affect the
conditions that allow outcomes of a project
an organization to ● can serve as hindrances
thrive to the success of an
organization

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Tools in Strategic Analysis
SWOT Analysis: Example
Habi is a local women’s clothing brand that employs
skilled single mothers or victims of abuse.
STRENGTHS WEAKNESSES

● skilled workforce of trained ● small production capacity,


women unable to mass produce
● high-quality products made ● not locally well-known
from locally-sourced materials ● higher price of items
● well-designed and curated because of high cost of raw
social media accounts materials
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Tools in Strategic Analysis
SWOT Analysis: Example
Habi is a local women’s clothing brand that employs
skilled single mothers or victims of abuse.
OPPORTUNITIES THREATS

● consumers’ demand for social ● countless local and


responsibility from businesses international competitors in
the women’s clothing industry
● popularity of #SupportLocal or
#GawangLocal trend ● low prices of mass-produced
clothes of competitors

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Tools in Strategic Analysis

PEST Analysis
● stands for political, economic, social, and
technological factors

● focuses on assessing the external factors that


can affect an organization

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Tools in Strategic Analysis

PEST Analysis: Political


● government policies,
regulations, and laws

● a country’s political
climate

● international relations
with other countries

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Tools in Strategic Analysis

PEST Analysis: Economic


● movement of supply and
demand

● inflation and exchange rates

● consumer’s purchasing power

● economic growth

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Tools in Strategic Analysis

PEST Analysis: Social


● lifestyle

● trends

● cultural attitudes of people

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Tools in Strategic Analysis

PEST Analysis: Technological


● advancements that thrive
along with the progress of
society

● trends in transportation,
communications,
automation, and
information
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True or False. Write true if the statement is true.
Try This!
Otherwise, write false.

1. Strategic analysis is an essential skill for


strategic management.

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True or False. Write true if the statement is true.
Try This!
Otherwise, write false.

2. A SWOT analysis looks at the positive and


negative sides of a network or organization.

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True or False. Write true if the statement is true.
Try This!
Otherwise, write false.

3. There are only two tools in strategic


analysis.

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True or False. Write true if the statement is true.
Try This!
Otherwise, write false.

4. Strategy came from the Greek word


strategos, which means “warrior.”

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True or False. Write true if the statement is true.
Try This!
Otherwise, write false.

5. PEST analysis emphasizes the external


factors that may affect any network or
organization.

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Wrap-Up
● Strategic analysis is a way of examining how a
problem can be broken down into components
to make it more actionable.

● Strategic management secures the


achievement of an organization’s objectives or
goals. It requires proficiency in strategic analysis.

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Wrap-Up ● Tools in strategic analysis are also referred to as
strategic management tools and techniques.

● Some of the commonly used tools in strategic


analysis are: SWOT (Strengths, Weaknesses,
Opportunities and Threats) analysis, PEST
(Political, Economic, Social, and
Technological) analysis,

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Check
Your
Progress Perform a quick PEST analysis of your desired
program for college. What key political,
economic, social, and technological factors
should you consider when choosing a college
degree program?

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Bibliography

Aguilar, Francis J. Scanning the Business Environment. New York: Macmillan, 1967.

Downey, Jim. Strategic Analysis Tools. United Kingdom: Topic Gateway Series, 2007.

Gunn, Rod and Wil Williams.“Strategic Tools: An Empirical Investigation into Strategy in Practice in the UK”. Strategic
Change Vol. 16, No. 5 (2007): 201–216. https://onlinelibrary.wiley.com/doi/abs/10.1002/jsc.799.

Lynch, Warren. “7 Powerful Strategic Analysis Toolset for Your Business.” Medium. March 15, 2019.
https://medium.com/@warren2lynch/7-powerful-strategic-analysis-toolset-for-your-business-89f268ae1055.

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Bibliography

Mirkovic, Maddy. “Conducting a Strategic Analysis + 8 of the Best Tools to Use.” Cascade, May 7, 2020.
https://www.executestrategy.net/blog/strategic-analysis.

Porter, Michael. Competitive Advantage. New York: Macmillan, 1985.

Qehaja, Albana Bericha, Enver Kutllovci, and Justina Shiroka Pula. “Strategic Management Tools and Techniques: A
Comparative Analysis of Empirical Studies”. Croatian Economic Survey Vol. 19, No. 1 (July 2017): 67-99. DOI:
10.15179/ces.19.1.3.

Rahman, M. “PESTEL Analysis of the Philippines.” How and What. Accessed November 18, 2020.
https://howandwhat.net/pestel-analysis-philippines/

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