Stage 1 of Strategic Management     Environmental Analysis
Influences in Strategy• 1960s (Strategy and Structure; Corporate Strategy)      • 1963 Harvard business conference leads t...
Internal Analysis2. Internal Analysis    STRUCTURE – the way its organized                                  - the chain of...
1963 Strategy Boutiques• Strategy Boutique is a niche management  consultancy• Management and  Business Strategy Consultancy
1980s (Porter’s 5 forces)
1                       2                                 3                      4                                        ...
Two Parts of Environmental Analysis1. Task environment2. Societal   environment
Internal Factors Analysis Summary                                      WEIGHTED EXTERNAL FACTORS   WEIGHT   RATING    SCOR...
External Factors Analysis Summary                                          WEIGHTED     EXTERNAL FACTORS   WEIGHT   RATING...
Structural Analysis of the Industry
Stakeholders Analysis
Why do a Stakeholder Analysis?• to identify stakeholder’s interest in, importance to, influence over the intervention, pro...
STAKEHOLDERS ANALYSIS . . .To determine the stakeholders,use the Ws and Hs like:       •Who are the people or institutions...
Stakeholders Analysis . . . CLASSIFICTION        STEP IN ANALYSIS  • Influencers       • List of stakeholders  • Allies   ...
STAKEHOLDERS ANALYSIS. . .Process in stakeholders analysis: IDENTIFY KEY     ASSESS IMPACT         ASSESS       PARTICIPAT...
STAKEHOLDERS ANALYSISSTAKEHOLDERS           INTEREST AT STAKE          EFFECTS     IMPORTANCE     DEGREE OF               ...
SWOT
SWOT MATRIX                                   STRENGHTS (S)        WEAKNESSES (W)                INTERNAL                 ...
STRATEGIC MANAGEMENT OPTIONS                           S-O           S-T           W-O           W-T    CRITERIA          ...
IDENTIFIED PROGRAM AND PROJECTS                                                 REQUIREDSTRATEGIC OPTION   PROGRAM/PROJECT...
STRATEGIC MANAGEMENT MODEL                   STRATEGY FORMULATIONENVIRONMENTAL     MISSION   ANALYSIS                     ...
ACTION PLAN STRATEGY      ACTIVITIES    TIMELINE   BUDGET RESPONSIBLE REMARKS               ACTIVITY #1STRATEGY # 1       ...
Reference: Decal, Strategic Management Lecture to CBLU,2012 www.slideshare.net Strategic ManagementIntroduction to Strateg...
Stage One of Strategic Management
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Stage One of Strategic Management

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Environmental Analysis
Pangasinan State University
Urdaneta City
Philippines

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Stage One of Strategic Management

  1. 1. Stage 1 of Strategic Management Environmental Analysis
  2. 2. Influences in Strategy• 1960s (Strategy and Structure; Corporate Strategy) • 1963 Harvard business conference leads to SWOT analysis • Boston Consulting firm (BCG) founded in 1963 “strategy boutique” – Created the portfolio analysis • 1980s (Porter’s 5 forces)• 1990s (Resource based view of the firm) 2
  3. 3. Internal Analysis2. Internal Analysis STRUCTURE – the way its organized - the chain of command •STRENGTHS CULTURE – pattern of beliefs •WEAKNESSES values and expectations RESOURCES – are the assets that constitute raw materials, people, financial and fixed assets
  4. 4. 1963 Strategy Boutiques• Strategy Boutique is a niche management consultancy• Management and Business Strategy Consultancy
  5. 5. 1980s (Porter’s 5 forces)
  6. 6. 1 2 3 4 Appraise the rent-generating-Identify & classify the -Identify the ogrn’s potential of resources & Select a strategy orgn’s resources. capabilities that best exploits capabilities-Appraise SW related -What can the orgn do a)Potential for sustainable to competitors. more than the competitors? advantage the orgn’s -Identify input resources per-Identify Opportunities capability & complexity of b) Appropriability of their resources and for better utilization returns of resources each capability capabilities relative to opportunities COMPETITIVE STRATEGY RESOURCES CAPABILITIES ADVANTAGE 5 -identify resource gaps that needs to be filled -invest in replenishing, augmenting and upgrading of organizations resource base
  7. 7. Two Parts of Environmental Analysis1. Task environment2. Societal environment
  8. 8. Internal Factors Analysis Summary WEIGHTED EXTERNAL FACTORS WEIGHT RATING SCORE REMARKS STRENGHTS 1. 2. 3. 4. 5. WEAKNESSES 1. 2. 3. 4. 5. TOTAL 1.00
  9. 9. External Factors Analysis Summary WEIGHTED EXTERNAL FACTORS WEIGHT RATING SCORE REMARKSOPPORTUNITIES1.2.3.4.5.THREATS1.2.3.4.5. TOTAL 1.00
  10. 10. Structural Analysis of the Industry
  11. 11. Stakeholders Analysis
  12. 12. Why do a Stakeholder Analysis?• to identify stakeholder’s interest in, importance to, influence over the intervention, programs and projects• to identify local institutions and processes upon which to build•To provide a foundation and strategy for participation
  13. 13. STAKEHOLDERS ANALYSIS . . .To determine the stakeholders,use the Ws and Hs like: •Who are the people or institutions with interest? •What are their degree of influence and control? •What are the services being provided/offered? •What are their resources? •Why are they doing these? •Who are they serving? •Where are they located or concentrated? •How they deliver their services? •How efficient, effective and economical are they operating?
  14. 14. Stakeholders Analysis . . . CLASSIFICTION STEP IN ANALYSIS • Influencers • List of stakeholders • Allies • Activities, programs, interest • Obstructions • Programs, interest, roles • Degree of Influence • Classify stakeholders
  15. 15. STAKEHOLDERS ANALYSIS. . .Process in stakeholders analysis: IDENTIFY KEY ASSESS IMPACT ASSESS PARTICIPATION STAKEHOLDERS ON THE PROJECT INFLUENCE STRATEGY •BENEFICIARIES •EXPECTATIONS •POWER/STATUS PLAN OF THEIR •VULNERABLE •BENEFITS •ORGANIZATION INVOLVEMENT: GROUPS •RESOURCES •CONTROL OF •INTERST, •SUPPORTERS/ •CONFLICTING RESOURCES IMPORTANCE OPPOSITORS •INTERESTS •PERSONAL •EFFORT NEEDED •RELATIONSHIPS CONNECTIONS •PARTICIPATION IN •POWER VARIUOS PROJECT RELATIONS CYCLE
  16. 16. STAKEHOLDERS ANALYSISSTAKEHOLDERS INTEREST AT STAKE EFFECTS IMPORTANCE DEGREE OF TO ORGN OF THE INFLUENCE(GROUPS, AGENCY, (RELATIVE TO THE STAKEHOLDER OF THEINDIVIDUALS,ETC) MOVEMENT, ORGN) (+ 0 - ) STAKEHOLDE RIMPORTANCE AND DEGREE OF INFLUENCE ARE MEASURED AS :U – UNKNOWN;1- LITTLE OR NO INFLUENCE/IMPORTANCE;2- SOME IMPORTANCE/INFLUENCE;3 – MODERATE IMPORTANCE/INFLUENCE;4 – VERY IMPORTANT/SIGNIFICANT INFLUENCE; AND5 – CRITICAL PLAYER/VERY INFLUENTIAL
  17. 17. SWOT
  18. 18. SWOT MATRIX STRENGHTS (S) WEAKNESSES (W) INTERNAL ANALYSIS EXTERNAL LIST 5-10 STRENGHTS LIST 5-10 WEAKNESSES ANALYSIS OPPORTUNITIES (O) S-O STRATEGIES W-O STRATEGIES USE YOUR STRENGTHS TO OVERCOME YOURLIST 5-10 OPPORTUNITIES TAKE ADVANTAGE OF THE WEAKNESSES BY OPPORTUNITIES TAKING ADVANTAGE OF THE OPPORTUNITIES THREATS (T) S-T STRATEGIES W-T STRATEGIES MINIMIZING YOUR USE YOUR STRENGTHS LIST 5-10 THREATS WEAKNESSES AND TO MINIMIZE OR AVOID AVOIDING THE THE THREATS THREATS
  19. 19. STRATEGIC MANAGEMENT OPTIONS S-O S-T W-O W-T CRITERIA 1 2 3 1 2 3 1 2 3 1 2 3MAGNITUDEACCEPTABILITYRELEVANCE (VMO)DOABILITY/ VIABILITYCOST-EFFECTIVEIMPACTSUSTAINABILITYOTHERS TOTAL
  20. 20. IDENTIFIED PROGRAM AND PROJECTS REQUIREDSTRATEGIC OPTION PROGRAM/PROJECT TIMELINE RESOURCES
  21. 21. STRATEGIC MANAGEMENT MODEL STRATEGY FORMULATIONENVIRONMENTAL MISSION ANALYSIS STRATEGY IMPLEMENTATION OBJECTIVESEXTERNAL STRATEGIES •OPPORTUNITIES •THREATS PROGRAMS EVALUATION ANDINTERNAL PROJECTS CONTROL•STRENGTHS PROCEDURES •WEAKNESSES BUDGETS PERFORMANCE F E E D B A C K
  22. 22. ACTION PLAN STRATEGY ACTIVITIES TIMELINE BUDGET RESPONSIBLE REMARKS ACTIVITY #1STRATEGY # 1 ACTIVITY #2 ACTIVITY #3STRATEGY # 2STRATEGY # 3STRATEGY # 4
  23. 23. Reference: Decal, Strategic Management Lecture to CBLU,2012 www.slideshare.net Strategic ManagementIntroduction to Strategy accessed July 27, 2012
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