strategizing strategizing is about setting institutional goals and finding the best means to reach...
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Strategizing
A Framework for Organizational Strategizing
External Environment Assessment
LOOK
THREATS
MACRO ENVIRONMEN
T
INDUSTRY, SECTOR &
AREA ANALYSIS
MARKET ANALYSIS
MICRO MARKET
ANALYSIS
OPPORTUNITIES
External Environment Assessment
LOOK
MACRO ENVIRONMENT
MACRO ENVIRONMEN
T
Macro Environment
Social Factors Encompasses DEMOGRAPHICS
Considers society’s structures– Age– Consumption preferences / patterns– Gender– Societal roles– Income levels of households / individuals– Spending habits
Social Factors Considers society’s structures
– Education profile (competencies, skills, employability)
– Health (morbidity, mortality, productive hours, quality of life & well-being)
– Employment by sector/ industry– Compensation packages– Psychological, religious, moral, and
cultural dimensions
Political Factors Deals with power structures and forces
– Protagonists / Antagonists– Pattern of collaborations and conflicts– Founded on constitutional or legal
frameworks– Control and management of vital
resources• Human• Natural• Physical• Monetary
Political Factors
– Laws, rules, regulations, procedures, processes
– Political will, levels of honesty, organizational capabilities
Economic Factors
Productive forces: Capital, Land, Labor
Both formal and informal sector of society– Gross National Product (GNP)– Gross Domestic Product (GDP)– Income distribution– Employment, Unemployment,
Underemployment
Economic Factors Both formal and informal sector of society
– Foreign exchange rates– Inflation rates– Interest rates– Foreign and Domestic investment levels– Debt levels– Saving rates– Balance of trade– Balance of payments
Economic Factors– Money supply– Lending and deposit rates– Housing starts and construction indices– Absolute and relative poverty levels– Exports and imports– Fiscal surpluses and deficits– Supply and demand for basic commodities– Prices of critical goods and services– Government budgetary allocation
Ecological Factors
Includes natural resources, ecosystems, and habitats– Quality of Air– Quality of Water– Quality of Soil– Waste Disposal Systems
Technological Factors
Embodied in the following:– Infrastructure– Physical structure– Machinery and equipment– Operating systems– Management processes
Technological Factors
Embodied in the following:– Supplies and production– Service requirements (Public &
Private organizations)– Impact on productivity– Value generation
A Framework for Organizational Diagnosis
10 Levels of Internal AssessmentFirst Level of Assessment: Evaluating Performance Outputs and Outcomes
Second Level of Assessment: Evaluating Organizational Competencies and Capabilities
Second Level of Assessment: Evaluating Organizational Competencies and Capabilities
Third Level of Assessment: Evaluating Utilization of ResourcesThird Level of Assessment: Evaluating Utilization of Resources
Fourth Level of Assessment: Evaluating Management ProcessesFourth Level of Assessment: Evaluating Management Processes
Fifth Level of Assessment: Evaluating the Four Management Functions
Sixth Level of Assessment: Evaluating Teams and Individuals
Seventh Level of Assessment: Evaluating Physical Facilities and Set Up, Working Conditions and Environmental Surroundings
Eighth Level of Assessment: Evaluating Organizational Affiliations, Alliances and Linkages
Eighth Level of Assessment: Evaluating Organizational Affiliations, Alliances and Linkages
Ninth Level of Assessment: Evaluating Top Management, Board Members and Leadership
Ninth Level of Assessment: Evaluating Top Management, Board Members and Leadership
Tenth Level of Assessment: Evaluating Strategic Fit or VSOP consistency
Tenth Level of Assessment: Evaluating Strategic Fit or VSOP consistency
The Operations Function
Education Inputs to External Assessment
Basic Inputs Performance Indicators Awards and Recognitions Others
Make no little plans; they have no magic to stir men’s
blood… Make big plans, aim high in
hope in work
Daniel H. Burnham
(1846-1912)