Stage 1 of Strategic Management Environmental Analysis

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 (Porters 5 forces) 1990s (Resource based view of the firm)

Internal
Strengths

External
Opportunities

Weaknesses

Threats

Internal Analysis
2. Internal Analysis STRENGTHS WEAKNESSES
STRUCTURE the way its organized - the chain of command CULTURE pattern of beliefs values and expectations

RESOURCES are the assets that constitute raw materials, people, financial and fixed assets

1963 Strategy Boutiques

Strategy Boutique is a niche management consultancy Management and Business Strategy Consultancy

1980s (Porters 5 forces)

2 -Identify the ogrns

capabilities -What can the orgn do more than the competitors? -Identify input resources per capability & complexity of each capability

3
Appraise the rent-generating potential of resources & capabilities a)Potential for sustainable advantage b) Appropriability of their returns

-Identify & classify the

orgns resources. -Appraise SW related to competitors. -Identify Opportunities for better utilization of resources

4 Select a strategy that best exploits the orgns resources and capabilities relative to opportunities

RESOURCES

CAPABILITIES

COMPETITIVE ADVANTAGE

STRATEGY

5
-identify resource gaps that needs to be filled -invest in replenishing, augmenting and upgrading of organizations resource base

Two Parts of Environmental Analysis

1. Task environment 2. Societal environment

Internal Factors Analysis Summary

EXTERNAL FACTORS STRENGHTS WEIGHT RATING WEIGHTED SCORE REMARKS

1. 2. 3. 4. 5.
WEAKNESSES

1. 2. 3. 4. 5.
TOTAL

1.00

External Factors Analysis Summary

EXTERNAL FACTORS OPPORTUNITIES WEIGHT RATING WEIGHTED SCORE REMARKS

1. 2. 3. 4. 5.
THREATS

1. 2. 3. 4. 5.
TOTAL

1.00

Structural Analysis of the Industry

Stakeholders Analysis

Why do a Stakeholder Analysis?

to identify stakeholders 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

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?

STAKEHOLDERS ANALYSIS . . .

Stakeholders Analysis . . .
CLASSIFICTION Influencers Allies Obstructions

STEP IN ANALYSIS
List of stakeholders Activities, programs, interest Programs, interest, roles Degree of Influence Classify stakeholders

STAKEHOLDERS ANALYSIS. . .

Process in stakeholders analysis:

IDENTIFY KEY STAKEHOLDERS ASSESS IMPACT ON THE PROJECT

ASSESS INFLUENCE

PARTICIPATION STRATEGY

BENEFICIARIES VULNERABLE GROUPS SUPPORTERS/ OPPOSITORS RELATIONSHIPS

EXPECTATIONS BENEFITS RESOURCES CONFLICTING INTERESTS

POWER/STATUS ORGANIZATION CONTROL OF RESOURCES PERSONAL CONNECTIONS POWER RELATIONS

PLAN OF THEIR INVOLVEMENT: INTERST, IMPORTANCE EFFORT NEEDED PARTICIPATION IN VARIUOS PROJECT CYCLE

STAKEHOLDERS ANALYSIS
STAKEHOLDERS (GROUPS, AGENCY, INDIVIDUALS,ETC) INTEREST AT STAKE

(RELATIVE TO THE MOVEMENT, ORGN)

EFFECTS TO ORGN
(+ 0 - )

IMPORTANCE OF THE STAKEHOLDER

DEGREE OF INFLUENCE OF THE STAKEHOLDER

IMPORTANCE 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; AND 5 CRITICAL PLAYER/VERY INFLUENTIAL

SWOT

SWOT MATRIX
STRENGHTS (S) INTERNAL ANALYSIS EXTERNAL ANALYSIS WEAKNESSES (W)

LIST 5-10 STRENGHTS

LIST 5-10 WEAKNESSES

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

LIST 5-10 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

LIST 5-10 THREATS

STRATEGIC MANAGEMENT OPTIONS

CRITERIA 1
MAGNITUDE
ACCEPTABILITY RELEVANCE (VMO) DOABILITY/ VIABILITY COST-EFFECTIVE IMPACT SUSTAINABILITY OTHERS
TOTAL

S-O 2 3 1

S-T 2 3 1

W-O 2 3 1

W-T 2 3

IDENTIFIED PROGRAM AND PROJECTS

STRATEGIC OPTION PROGRAM/PROJECT TIMELINE
REQUIRED

RESOURCES

STRATEGIC MANAGEMENT MODEL

ENVIRONMENTAL ANALYSIS

STRATEGY FORMULATION
MISSION OBJECTIVES

STRATEGY IMPLEMENTATION

EXTERNAL

OPPORTUNITIES THREATS
INTERNAL

STRATEGIES PROGRAMS PROJECTS PROCEDURES BUDGETS PERFORMANCE

EVALUATION AND CONTROL

STRENGTHS WEAKNESSES

F E E D B A C K

ACTION PLAN
STRATEGY ACTIVITIES ACTIVITY #1 ACTIVITY #2 ACTIVITY #3 TIMELINE BUDGET RESPONSIBLE REMARKS

STRATEGY # 1

STRATEGY # 2

STRATEGY # 3

STRATEGY # 4

Reference:
Decal, Strategic Management Lecture to CBLU, 2012 www.slideshare.net Strategic Management Introduction to Strategy accessed July 27, 2012