CS Session 2:

Integrating Intuition and Analysis, Vocabulary of

Strategy

Srirang K Jha
Associate Professor
Apeejay School of Management
Integrating Intuition and Analysis
• Intuition is essentially feeling and we do not know the source of the
feeling.
 Intuitive decision-making comes into play when we experience
what’s known as a “gut feeling”—one that often runs contrary to
what logic might suggest.
 Instead of recognizing and integrating these intuitive flashes
into the decision-making process, however, we often dismiss
them as an “emotional response” and deem them immaterial.
Integrating Intuition and Analysis
• Why Is Intuition Helpful?
• Throughout our lives, our brains constantly process information,
storing it away in the subconscious mind for future application. This
creates learning patterns called schemas that allow us to approach
challenges with a practical frame of reference. When called to action,
the brain utilizes schemas by engaging its predictive processing
framework, comparing current information and experiences against
previously obtained knowledge and memories.
Integrating Intuition and Analysis
• Why Don’t We Listen To Intuition?
• There’s a cultural bias that exists toward intuition, one that scoffs at
the idea that humans have some sort of “special sense” that can help
guide their decisions. People are uncomfortable with the idea of
following their instincts, and afraid they’ll be called out for
considering alternatives that don’t follow the data.
• But let’s call intuition what it really is—a mechanism of pattern
recognition. When refined and developed, it’s a key component of
effective decision-making.
Integrating Intuition and Analysis
• Intuition is essentially feeling and we do not know the source of the
feeling.
• Managers often use intuition in decision scenarios
• Intuition cannot be used in scenarios where clear decision rules,
objective criteria and abundant data are available for analysis
• Best option is to integrate intuition and data analysis
Integrating Intuition and Analysis
• Decision-making isn’t an either/or situation; you can—and should—
use both logic and intuition when making choices. These things aren’t
opposites, they’re simply two sides of the same coin. Recognizing the
value of both allows you access to the broadest spectrum of
information and helps you make the best decision.
 Key Terms in Strategic Management
Competitive Advantage
any activity a firm does especially well compared to
activities done by rival firms,
or
any resource a firm possesses that rival firms desire.

A firm must strive to achieve sustained competitive

advantage
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 Key Terms in Strategic Management
Strategists
Individuals most responsible for the success or failure of an
organization
Help an organization gather, analyze, and organize information
Vision and Mission Statements
A vision statement answers the question “What do we want to
become?”
A mission statement answers the question “What is our
business?”
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 Key Terms in Strategic Management
External Opportunities and Threats
economic, social, cultural, demographic, environmental,
political, legal, governmental, technological, and competitive
trends and events that could significantly benefit or harm an
organization
Internal Strengths and Internal Weaknesses
an organization’s controllable activities that are performed
especially well or poorly
determined relative to competitors

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 Some Opportunities and Threats
Availability of capital can no longer be taken for granted.
Consumers expect green operations and products.
Marketing is moving rapidly to the Internet.
Commodity food prices are increasing.
An oversupply of oil is driving oil and gas prices down.

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 Key Terms in Strategic Management
Long-Term Objectives
specific results that an organization seeks to achieve in
pursuing its basic mission
long-term means more than one year
should be challenging, measurable, consistent,
reasonable, and clear

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 Key Terms in Strategic Management
Strategies
the means by which long-term objectives will be
achieved
may include geographic expansion, diversification,
acquisition, product development, market penetration,
retrenchment, divestiture, liquidation, and joint ventures

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 Key Terms in Strategic Management
Annual objectives
short-term milestones that organizations must achieve to reach
long-term objectives
should be measurable, quantitative, challenging, realistic,
consistent, and prioritized
should be established at the corporate, divisional, and
functional levels in a large organization
Policies
the means by which annual objectives will be achieved

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