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Electric Cooperative, Strategic Planning Process, SWOT MAtrix (General) SWOT Matrix (Human Resource)

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  1. 1. SWOT MATRIX By: Sharon Ayes Mendoza Master in Development Management DM 214 Strategic Planning 1st Semester 2013
  2. 2. STRATEGIC PLANNING & SWOT MATRIX • STRATEGY: greek word ‘strategos’; = general • Authors Kenneth Andrews, Alfred D. Chandler, George A Sterner/John B. Miner and Richard Vancil focus on both the end points (purpose, mission, goals, objectives) and the means of achieving them (policies and plans). Writers Igor H. Ansoff and Charles W. Hofer/Dan Schendel emphasize the means to the ends in the strategic process rather than the ends per se.
  3. 3. STRATEGIC PLANNING & SWOT MATRIX • Based on Heinz Weihrich, Professor of Management at the University of San Francisco in his paper “The TOWS Matrix-- - A Tool for Situational Analysis”, the word strategies is best described as: Strategies are general programs of action and deployment of emphasis and resources to attain comprehensive objectives; the program of objectives of an organization and their changes , resources used to attain these objectives, and policies governing the acquisition, use, and disposition of these resources; tile determination of the basic long-term objectives of an enterprise and the adoption of courses of action and allocation of resources necessary to achieve these goals.
  4. 4. STRATEGIC PLANNING & SWOT MATRIX • STRATEGIC PLANNING : conceptually, strategic planning is deceptively simple; analyze the current and expected future situation, determine the direction of the firm and develop means for achieving the mission. In reality, this is an extremely complex process, which demands a systematic approach for identifying and analyzing factors external to the organization and matching them with the firm’s capabilities.
  5. 5. STRATEGIC PLANNING & SWOT MATRIX • Many writers on strategic planning suggest that a firm uses its strengths to take advantage of opportunities, but they ignore other important relationships, such as the challenge of overcoming weaknesses in the enterprise to exploit opportunities. WEAKNESS- absence of strength and corporate development. To overcome an existing weakness may become a distinct strategy for the company.
  6. 6. STRATEGIC PLANNING & SWOT MATRIX Figure 1 Strategic Planning Process Inputs People Capital Managerial Skills Technical Skills Goals of Claimants Enterprise Profile Present External Environment Forecast Of Future Environment Resource Audit External Threats and Opportunities Alternative Strategies Internal Weaknesses And Strengths Evaluation and Strategic Choice Medium Range Planning Short Range Planning Implementation Consistency Testing Contingency Planning
  7. 7. SWOT MATRIX (a Conceptual Framework)  Matching the environmental threats and opportunities with the company’s weaknesses and especially its strengths. Systematically identifying relationships between these factors and basing strategies on them.  Combination of external and internal factors to the organization and strategies.  Forces practicing managers to analyze the situation and to develop strategies, tactics, actions for the effective and efficient attainment of mission and goals.
  8. 8. ORIGIN • BUSINESS PORTFOLIO MATRIX Boston Consulting Group : link between the business growth rate and the relative competitive position of the enterprise (identified by the market share). Feedback: too simplistic and the growth rate criterion has been considered insufficient for the evaluation of the industry’s attractiveness. Also, the market share as a yardstick for estimating the competitive position may be inadequate.
  9. 9. ORIGIN • BUSINESS SCREEN General Electric: two sets of variables: business strength and industry attractiveness. Low, Medium and High Ratings Business Strength: evaluates size, growth, share, position, profitability, margins and technology position Industry Attractiveness: judged in terms of size, market growth, market diversity, competitive structure, industry profitability.
  10. 10. ORIGIN Feedback: (Charles W. Hofer & Dan Schendel) --- does not give adequate attention to new industries that are beginning to grow. Suggestion: a MATRIX in which the “competitive position” and their “stage of product/market evolution” are plotted. Similarity of 2 matrixes: insufficient attention to the threats and constraints in the external environment.
  11. 11. A conceptual framework for a systematic analysis that facilitates matching the external threats and opportunities with the internal weaknesses and strengths of the Organization (Heinz Weihrich). What is SWOT MATRIX ?
  12. 12. SWOT MATRIX • According to Weihrich, there are different ways of analyzing the situation. One is to begin with the identification of important problems. Second is to start with determining the purpose and objectives of the firm. A third way is to focus on opportunities. The question may be raised whether one should start with the analysis of the external environment or with the firm’s internal resources. There is no single answer. Indeed, one may deal concurrently with the two sets of factors: the external and internal environment. • Remember: this process is just one of several actions. • PANELCO analysis: the ends will not be emphasized so that sufficient attention can be given to the analysis of the current situation.
  13. 13. SWOT MATRIX Step 5. Develop Alternatives Step 6. Make strategic choices Consider strategies, tactics, actions Step 1-6. Test for Consistency. Also Prepare Contingency plan (Step 7) List Internal Strengths (S) List Internal Weaknesses (W) Step 2. Identify & Evaluate the ff factors: a. Economical b. Social c. Political d. Demographic e. Products & Technology f. Market & Competition List External Opportunities (O): (Consider Risks Also) SO: MAXI-MAXI WO: MINI-MAXI Step 3. Prepare a Forecast. Make Predictions & Assessment of the Future List External Threats (T) ST: MAXI-MINI WT: MINI-MINI External Factors Internal Factors Figure 2 Process of Corporate Strategy and the SWOT Analysis STEP 1: Prepare an Enterprise Profile: (A) Kind of Business; (B) Geographic Domain; (C) Competitive Situation; (D) Top Management Orientation Step 2: Prepare a SW Audit
  14. 14. SWOT MATRIX • External Environment: Threats (T) and Opportunities (O) may be found in different areas but commonly we may look at some categories such as economic, social, political and demographic factors, products and services, technology, markets and competition. The analysis of these factors pertain not only to the present but even more important, the future environment.
  15. 15. SWOT MATRIX • Internal Environment: The Strengths (S) and Weaknesses (W) of an Organization may be found in management and organization, operations, finance, marketing and in other areas.
  16. 16. SWOT MATRIX • Strategies, Tactics and Actions: Strategies may overlap or may be pursued concurrently. • Focus: interactions of four sets of variables. The primary concern here is strategies, but this analysis could also be applied to the development of tactics necessary to implement the strategies and to more specific actions supportive of tactics.
  17. 17. WT Strategy WO Strategy ST Strategy So Strategy •Mini-mini •Mini-maxi •Maxi-mini •Maxi-maxi SWOTMATRIX
  18. 18. SWOT MATRIX • The WT Strategy (mini-mini). Minimize both weaknesses and threats. This is a position that any organization will try to avoid. • The WO Strategy (mini-maxi). Minimize the weaknesses and maximize the opportunities. • The ST Strategy (maxi-mini). Strengths that can deal with Threats. Maximize the Strengths and minimize the Threats. CAUTION: Strength must be used with great restraint and discretion. • The SO Strategy (maxi-maxi). Maximize both, utilizing resources to take advantage of the market.
  19. 19. SWOT MATRIX • even if successful organizations temporarily use one of the three previously mentioned strategies, they will attempt to get into a situation where they can work from strengths to take advantage of opportunities. If they have weaknesses, they will strive to overcome them, making them strengths. If they face threats, they will cope with them so that they can focus on opportunities (Long Range Planning, Heinz Weihrich).
  20. 20. SWOT Analysis Framework Environmental Scan Internal analysis External Analysis Strengths & Weaknesses Opportunities & Threats SWOT Matrix
  21. 21. Strength Weaknesses Opportunities Threats In achieving objectives In achieving objectives InternalOrigin (AttributesoftheOrganization ExternalOrigin (AttributesoftheOrganization
  22. 22. STRENGTHS -things you do well -experiences in the business or industry sectors -key success (Brainstorms) WEAKNESSES -unhappy consumers-why? -bad brand perception -slow or bureaucratic -uncompetitive prices -disgruntled workforce (LONG HONEST LOOK @ WHAT YOU ARE DOING OPPORTUNITIES -competitors -technology (gadgets/software) (THE IDEA BEHIND BRAINSTORMING IS TO TAKE YOUR BUSINESS, PROJECT OF LIFE FORWARD THREATS -increasing costs -new players in the market -workforce weakness -cash flow (PREPARE IN ADVANCE TO MINIMIZE THE IMPACT)
  23. 23. THE PANELCO III SWOT MATRIX • To produce an objective analysis, a survey was conducted among PANELCO III employees (managers/supervisors/staffs). • Though the issue is highly sensitive, a result that is critical and objective was tried to achieve.
  24. 24. THE PANELCO III SWOT MATRIX Strengths 1. On-time payment to Power Supplier (3% discount) 2. Minimal Power Interruption 3. Power Delivery Efficiency 4. 35years on EC operations 5. 2.5B assets 6. Good Load Growth 7. Customer Service 8. 278 regular employees 9. 426 barangays 100% energized
  25. 25. THE PANELCO III SWOT MATRIX Weaknesses 1. High system loss (18% above ERC's standard of 13%) 2. Huge uncollected power bills 3. Too prominent/political member consumers(POLITICS) 4. Lack of manpower 5. Huge expenditures 6. Low employee morale/weak planning of employees' trainings and workshops to produce a well equipped, skilled and competent employees (Selected FEW) 7. Leadership skills
  26. 26. THE PANELCO III SWOT MATRIX WEAKNESSES 8. Poor technology advancement 9. Poor Audit/Accounting Procedures 10. Communication Gap (More boss' than leaders) 11. Incorrect manpower placement 12. Negative reaction to change/Resistance to change 13. Financial and technical management capabilities
  27. 27. THE PANELCO III SWOT MATRIX Opportunities 1. Open Access 2. Rapid urbanization 3. Growing economy 4. Power demand is high 5. Other big companies' investment 6. EPIRA/PD 10531
  28. 28. THE PANELCO III SWOT MATRIX Threats 1. Competitors 2. Political Intervention 3. Increasing Fuel Cost 4. Climate Change 5. Transmission and distribution failures 6. No subsidy from the government
  29. 29. PIII SWOT MATRIX INTERNAL AND EXTERNAL ANALYSIS INTERNAL ANALYSIS EXTERNAL ANALYSIS STRENGTHS (S) WEAKNESSES (W) OPPORTUNITIES (O) S-O Strategies Use your strengths to take advantage of the opportunities W-O Strategies Overcome your weaknesses by taking advantage of the opportunities THREATS (T) S-T Strategies Use your strengths to minimize or avoid the threats W-T Strategies Minimizing your weaknesses and avoiding the threats
  30. 30. INTERNAL AND EXTERNAL ANALYSIS INTERNAL ANALYSIS EXTERNAL ANALYSIS STRENGTHS (S) WEAKNESSES (W) OPPORTUNITIES (O) S-O Strategies -On-time payment: extra fund to other programs (educ & sports & seminars) -more big companies will open its door for P3’s programs W-O Strategies -train the employee, produce more goal and process oriented staffs -Re-align/Re-structure/Re-check/Re- access --- inventory auditing technology policies & procedures icms link.doc payment.jpg THREATS (T) S-T Strategies **the threat of merger or buy- out from other companies** -continuous improvement internally -NEA & PD 10531 W-T Strategies -POLITICAL INTERVENTION: re assess the organization’s policies and procedures (Politics is always been a sensitive issue and it is present everywhere, it is on how well we manage it) -Big Companies-NEA and PD 10531)
  31. 31. THE PANELCO III SWOT MATRIX Recommendations 1. Deconstruct and Reconstruct 2. Social Obligations 3. Team Building im a leader not a boss.jpg 4. Strict Implementation of RA 7832 & other system loss reduction program especially in technical and non- technical aspects icms link.doc payment.jpg 5. United we Stand, Divided we Fall 6. Loyalty Pledge Loyalty pledge.docx 7. TRUST
  33. 33. PANELCO III HRMD SWOT MATRIX Strengths 1. Human Resource Competencies 2. Skilled employees 3. Strict Implementation of Policies 4. Training and Development Opportunities 5. Business Partner and People’s Champ 6. Maturity of Human Resource Management
  34. 34. PANELCO III HRD SWOT MATRIX Weaknesses 1. Politically inclined 2. Lack of manpower/overload (compensation & benefits, recruitment, attendance, legal matters, medical, manual update of leave credits, attendance, schedules, memo circular, counselling, area ocular and uploads) 3. Degree of Commitment 4. Priority Issues 5. Management Influence and Employee Participation 6. Negative reaction to change/resistance 7. Continuity and Monitoring of Programs
  35. 35. PANELCO III HRD SWOT MATRIX Opportunities 1. Trainings and Seminars (ACCREDITED) 2. More defined rules and regulations (PD 10531) 3. Learning updates (NCMB, LMC, NLRC)
  36. 36. PANELCO III HRD SWOT MATRIX Threats 1. Political Intervention
  37. 37. PANELCO III HRD SWOT MATRIX Recommendations 1. Re-assess the organization's policies. (It may be deemed highly sensitive for PANELCO III, but the management might want to re-assess the procedures & policies and be firmed about it. 2. Performance Evaluation vis-a-vis merit Increase 3. Reward System (stop/minimize too much politics in everything) 4. Monitors and close coordination with every departments of all HR concerns, organizational policies, business procedures and its implementation and empower the HRMD. 5. Re orientation of all employees/ RE-TOOLING .
  38. 38. Some Thoughts to Ponder: “There can be no harmony when ideas are framed as RIGHT vs. WRONG. Have the flexibility to listen to all options.” (Robert Kiyosaki)
  39. 39. Some Thoughts to Ponder: 1o% of Conflict is due to wrong opinion, 90% is due to wrong tone of voice.
  40. 40. Some Thoughts to Ponder:
  41. 41. Thank you, goodnight & be safe. 
  42. 42. References: • PANELCO III Employees (survey form) • Dr. Josefina B. Bitonio (2013) Readings from Strategic Planning Course • The TOWS Matrix---A Tool for Situational Analysis, Heinz Weihrich, Professor of Management, University of San Francisco • http://www.swotmatrix.com/ • http://world.time.com/2013/08/06/no-end- in-sight-to-the-energy-crisis-that-plagues-the- philippines/#ixzz2hAh34a4F