Environmental Analysis Pangasinan State University Urdaneta City Philippines

1. Stage 1 of Strategic Management
Environmental Analysis

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

4. Internal Analysis
2. 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

5. 1963 Strategy Boutiques
• Strategy Boutique is a niche management
consultancy
• Management and
Business Strategy Consultancy

6. 1980s (Porter’s 5 forces)

7. 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

8. Two Parts of Environmental Analysis
1. Task environment
2. Societal
environment

9. 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

10. External Factors Analysis Summary
WEIGHTED
EXTERNAL FACTORS WEIGHT RATING SCORE REMARKS
OPPORTUNITIES
1.
2.
3.
4.
5.
THREATS
1.
2.
3.
4.
5.
TOTAL 1.00

11. Structural Analysis of the Industry

12. Stakeholders Analysis

13. 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

14. 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?

15. Stakeholders Analysis . . .
CLASSIFICTION STEP IN ANALYSIS
• Influencers • List of stakeholders
• Allies
• Activities, programs, interest
• Obstructions • Programs, interest, roles
• Degree of Influence
• Classify stakeholders

16. 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

17. STAKEHOLDERS ANALYSIS
STAKEHOLDERS INTEREST AT STAKE EFFECTS IMPORTANCE DEGREE OF
TO ORGN OF THE INFLUENCE
(GROUPS, AGENCY, (RELATIVE TO THE STAKEHOLDER OF THE
INDIVIDUALS,ETC) MOVEMENT, ORGN) (+ 0 - ) STAKEHOLDE
R
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

18. SWOT

19. 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 YOUR
LIST 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

20. STRATEGIC MANAGEMENT OPTIONS
S-O S-T W-O W-T
CRITERIA
1 2 3 1 2 3 1 2 3 1 2 3
MAGNITUDE
ACCEPTABILITY
RELEVANCE (VMO)
DOABILITY/ VIABILITY
COST-EFFECTIVE
IMPACT
SUSTAINABILITY
OTHERS
TOTAL

21. IDENTIFIED PROGRAM AND PROJECTS
REQUIRED
STRATEGIC OPTION PROGRAM/PROJECT TIMELINE
RESOURCES

22. STRATEGIC MANAGEMENT MODEL
STRATEGY FORMULATION
ENVIRONMENTAL MISSION
ANALYSIS
STRATEGY IMPLEMENTATION
OBJECTIVES
EXTERNAL
STRATEGIES
•OPPORTUNITIES
•THREATS PROGRAMS EVALUATION
AND
INTERNAL PROJECTS CONTROL
•STRENGTHS PROCEDURES
•WEAKNESSES
BUDGETS
PERFORMANCE
F E E D B A C K

23. ACTION PLAN
STRATEGY ACTIVITIES TIMELINE BUDGET RESPONSIBLE REMARKS
ACTIVITY #1
STRATEGY # 1
ACTIVITY #2
ACTIVITY #3
STRATEGY # 2
STRATEGY # 3
STRATEGY # 4

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