UNDERSTANDIN

L
GOCAL NETWORKS

Resty Hezron C. Damaso

SHS teacher
UNDERSTANDIN
S
GTRATEGIC
ANALYSIS
AND
INTUITIVE
THINKING

STRATEGIC
ANALYSIS
UNDERSTANDIN
S
GTRATEGIC
ANALYSIS
AND
INTUITIVE
THINKING

INTUITIVE
THINKING
DEFINE STRATEGIC ANALYSIS

• The process of conducting research on the

business environment within which an
organization operates and on the
organization itself, in order to formulate
strategy.
TOOLS OF

STRATEGI
C
ANALYSIS
WHAT IS PEST
ANALYSIS?

• A PEST analysis is an analysis of the external macro-

environment that affects all firms. P.E.S.T. is an acronym
for the Political, Economic, Social, and Technological
factors of the external macro- environment. Such external
factors usually are beyond the firm's control and
sometimes present themselves as threats.
POLITICAL
FACTORS

• Political factors, are how and to what degree a

government intervenes in the economy.
Specifically, political factors include areas such
as tax policy, labour law, environmental law,
trade restrictions, tariffs, and political stability.
ECONOMIC
FACTORS
• Economic factors include economic growth, interest
rates, exchange rates and the inflation rate. These
factors have major impacts on how businesses operate
and make decisions. For example Exchange rates
affect the costs of exporting goods and the supply
and price of imported goods in an economy
 SOCIAL
FACTORS
• Social factors include the cultural aspects and include health
consciousness, population growth rate, age distribution,
career attitudes and emphasis on safety. Trends in social
factors affect the demand for a company's products and how
that company operates. For example, an ageing population
may involve a smaller and less-willing workforce (thus
increasing the cost of labor).
 TECHNOLOGICAL
FACTORS

• Technological factors include ecological and

environmental aspects, such as R&D activity,
automation, technology incentives and the rate of
technological change. They can determine barriers to
entry, minimum efficient production level and
influence outsourcing decisions.
TOOLS OF

STRATEGI
C
ANALYSIS
SWOT
ANALYSIS
• SWOT Analysis is a strategic planning method used to
evaluate the Strengths, Weaknesses, Opportunities, and
Threats involved in a project or in a business venture. It
involves specifying the objective of the business
venture or project and identifying the internal and
external factors that are favorable and unfavorable to
achieving that objective
STRENGT
H
• Strengths describe what an organization excels at and
separates it from the competition: a strong brand, loyal
customer base, a strong balance sheet, unique
technology and so on. For example, a hedge fund may
have developed a proprietary trading strategy that
returns market-beating results. It must then decide how
to use those results to attract new investors.
WEAKNES
S

• Weaknesses stop an organization from

performing at its optimum level. They are areas
where the business needs to improve to remain
competitive: higher-than-industry- average
turnover, high levels of debt, an inadequate
supply chain or lack of capital.
OPPORTUNITIE
S

• Opportunities refer to favorable external factors

that an organization can use to give it a
competitive advantage. For example, a car
manufacturer can export its cars into a new
market, increasing sales and market share, if a
country cuts tariffs.
THREAT
S
• Threats refer to factors that have the potential to
harm an organization. For example, a drought is a
threat to a wheat-producing company, as it may
destroy or reduce the crop yield. Other common
threats include things like rising costs for inputs,
increasing competition, tight labor supply and so on.
ADVANTAGES OF SWOT
ANALYSIS
• A SWOT analysis is a great way to guide business-strategy meetings.
It's powerful to have everyone in the room to discuss the company's
core strengths and weaknesses and then move from there to defining
the opportunities and threats, and finally to brainstorming ideas.
Oftentimes, the SWOT analysis you envision before the session
changes throughout to reflect factors you were unaware of and
would never have captured if not for the group’s input.
PORTER
FORCES FIVE

ANALYSIS
VALUE CHAIN ANALYSIS

•
Value chain analysis is based on the
principle that organizations exist to
create value for their customers. In the
analysis, the organization's activities are
divided into separate sets of activities that
add value.
THE THREE STEPS FOR CONDUCTING A VALUE
CHAIN ANALYSIS ARE:

• 1. Separate the organization's operations

into primary and support activities
• 2. Allocate cost to each activity.
• 3. Identify the activities that are important
to customer’s satisfaction and market success.
DEFINE INTUITIVE
THINKING

• Intuitive thinking is a feeling (a sense) that

doesn't use rational processes such as facts and
data. Good intuition comes from years of
knowledge and experience that allows you to
understand how people and the world works.
Many situations are intuitive.
INTUITIV
T
EHINKIN
G
INTUITIVE
THINKING
INTUITION

• The Oxford Dictionaries define intuition

as
“the ability to understand something
instinctively, without the need for
conscious reasoning.”
DOES INTUITION HAVE LINKAGE WITH THE
STATE OF FLOW?

• Flow is characterized by complete absorption in what one

does. A state of mind, when conscious thoughts seem to
meld together with the action itself. I would say that when
someone is in the zone, that person doesn’t have any other
choice just to go with his/her gut feelings and listen to the
appearing intuitions. Conscious mechanisms would
interrupt and detour the decision making in these states.
 WHAT ARE THE CHARACTERISTICS OF
INTUITIVE LEADERS?

• They recognize the patterns:

• They see the big picture and don’t worry about taking risks
• They use analysis as a supporting tool ensuring that their intuition don’t mislead
them.
• They know and check themselves
• They are good at sizing people up by reading their body language and non-
verbal clues.
• They are life-long learners: always seek for new experiences and are unafraid of asking
questions.
WHAT ARE THE CHARACTERISTICS OF
INTUITIVE LEADERS?

• They put energy into understanding the

situation they face to and they always think
ahead.
• They don’t confuse desire (intensely wanting
something to happen) with intuition
HOW INTUITIVE DECISION MAKING CAN
BE IMPROVED?

• Beside acquiring and practicing the above

listed characteristics of an intuitive leader (this
list is not exclusive and can be completed with
many other characteristics) there is a fun and
risk free way of doing it as well.