Innovation

& Strategy
Formulation
MODULE 6
Gospel Reading
A reading from the gospel according to Luke 19:1-10

1 At that time Jesus came to Jericho and intended to pass through the town.
2 Now a man there named Zacchaeus, who was a chief tax collector and also a wealthy man,
3 was seeking to see who Jesus was; but he could not see him because of the crowd, for he was short in stature.
4 So he ran ahead and climbed a sycamore tree in order to see Jesus, who was about to pass that way.
5 When he reached the place, Jesus looked up and said, “Zacchaeus, come down quickly, for today I must stay at your house.”
6 And he came down quickly and received him with joy.
7 When they saw this, they began to grumble, saying, “He has gone to stay at the house of a sinner.”
8 But Zacchaeus stood there and said to the Lord, “Behold, half of my possessions, Lord, I shall give to the poor, and if I have extorted
anything from anyone I shall repay it four times over.”
9 And Jesus said to him, “Today salvation has come to this house because this man too is a descendant of Abraham.
10 For the Son of Man has come to seek and to save what was lost.”

The word of the Lord.

Module Learning Objectives
1. At the end of the module, students should be familiarized with how the market & related technology
scan and analysis is done using PESTEL Analysis as applied to assigned project case.

2. Students should be able to illustrate S-curves, learning / experience curves.

Module Overview
This module will enable the students to appreciate the macro factors considered in strategy formulation
and thereby reinforce a complete view for the students regarding concepts applied in Strategy
Formulation. All of the strategy factors shall be applied by the students into respective cases.
Part 1: PEST ANALYSIS
Part 2: Learning Curves
What is a learning curve?
A learning curve is a correlation between a learner's performance
on a task and the number of attempts or time required to complete
the task; this can be represented as a direct proportion on a graph.

Source: https://www.valamis.com/hub/learning-curve
What is a learning curve?
The learning curve theory proposes that a learner’s efficiency in a task improves over time the more the
learner performs the task.

Graphical correlation between a learner's performance on a task and the number of attempts or time required to complete the task.

Source: https://www.valamis.com/hub/learning-curve
Application of the term Learning Curve

1. Generalized
• Qualitative description of learning progression over time
• Not measured
2. Measured
• This learning curve model is only applicable when used to measure the
real rate of progress for completing a specific task against time.
• The task needs to be repeatable, measurable, and consist of only one
variable within a procedure; it cannot measure an entire procedure on its
own.

Source: https://www.valamis.com/hub/learning-curve
Where to apply the learning curve

• The learning curve model requires that one variable is tracked over time, is
repeatable and measurable
• a factory worker learning to operate a new machine that requires
specific, repeatable steps; surgeons repeating the same procedure
• Manufacturing costs as related to workforce performance
• organizational performance using either the generalized approach or by
conducting a measured analysis

Source: https://www.valamis.com/hub/learning-curve
Learning Curve Formula
The original model uses the formula: Y = aXb
Where:
Y is the average time over the measured duration
a represents the time to complete the task the first time
X represents the total amount of attempts completed
b
 represents the slope of the function
The formula can be used as a prediction tool to forecast future performance.

Source: https://www.valamis.com/hub/learning-curve
Learning Curve Models
Diminishing-Returns Learning Curve

Source: https://www.valamis.com/hub/learning-curve
Learning Curve Models
Increasing-Returns Learning Curve

Source: https://www.valamis.com/hub/learning-curve
Learning Curve Models
Increasing-Decreasing Return Learning Curve (the S-curve)

Source: https://www.valamis.com/hub/learning-curve
Learning Curve Models
Complex Learning Curve

Source: https://www.valamis.com/hub/learning-curve
Pros and Cons of the Learning Curve
Pro
• Performance improvement cannot happen on its • Using a learning curve to predict overall
own and is connected with learning. By
incorporating a learning culture within the
organization where employees are encouraged
and supported to keep learning, performance
levels can be expected to increase on the curve.
• The rate of learning is also considered to be
consistent enough that trends can be established
using the learning curve, enabling better
forecasting and business decisions.
Con
performance of larger groups or processes
means that many assumptions are made on
variables like motivation, sociological factors,
workplace dynamics, training resources, and
previous knowledge or experience.
• A learning curve that may not show expected
results would need further analysis to determine
the underlying variables impacting its shape, as
the curve does not tell the whole story.

Source: https://www.valamis.com/hub/learning-curve
Thank you!