�\��F�u��Gw�p�Z#Ⱥ��3�y,�Vc�Ј �0 workforce is a determining factor of success. Not only will competitors come and go, but they will also change marketing strategies, product lines and prices. Key Internal Factor Key External Factor Resultant Strategy Matching Key Factors to Formulate Alternative Strategies Develop a new employee benefits package = Strong union activity (threat) + Poor employee morale (weakness) Develop new products for older adults = Decreasing numbers of young adults (threat) + Strong R&D (strength) Pursue horizontal integration by buying … 0000006557 00000 n }:��t�i��ѧ�OO�"���Cd!�Y�. 0000027772 00000 n 0000002453 00000 n 0000008976 00000 n 40 0 obj <> endobj Engagement “Only 23% of companies use a formal strategic planning process to make important strategic decisions. are global as well as national, and when there is a global financial crisis as in 2007, changes in the external environment can be dramatic. Strategy formation was measured based on an analysis of strategic intentions and corresponding actions in two surveys carried out in 1995 and 2003. These demographic changes can have a significant effect locally. For example, a sport club which once prospered can begin to decline as the local area has less and less children. During the high-level strategy formation phase, leaders thinking strategically will drive alignment around analyzing the opportunities from the widest possible perspective and understanding. The internal environment is very much associated with the human resource of the business or organisation, and the manner in which people undertake work in accordance with the mission of the organisation. 0000052554 00000 n Systems Thinking, a set of problem solving tools and techniques based on system analysis and design, explained by Peter Senge in The Fifth Discipline, helps us avoid unintended consequences and find optimal solutions to complex problems. 0000035872 00000 n It's not just that technological change affects the design of products, but even the delivery of services can change. plan of actions taken by managers to achieve the company’s overall goal and other subsidiary goals In the digital age, the pace of change has gone into hyperspeed, so companies must get these strategic, creative, executional, and organizational factors right to innovate successfully. 0000014898 00000 n Strategic analysis is essential to formulate strategic planning for decision making and smooth working of that organization. The strength of business competition is a constantly changing factor in the external business environment. Then I moved on to the strategic thinking of the founder of Amazon, Jeff Bezos, and the strategies he used to make Amazon so successful and the strategy implementation. Then I moved on to the strategic thinking of the founder of Amazon, Jeff Bezos, and the strategies he used to make Amazon so successful and the strategy implementation. During the operational and implementation phase, a strategic thinking organization will ensure that the higher level strategic direction cascades throughout the day-to-day decision making at all levels. Taxation is one of most obvious changes They should see it as a tool to help a business or organization confront change, plan for and make transitions, and envision new possibilities and opportunities. Companies hire employees with a strategic mindset to help achieve long-term business goals. Examine how the map of social networks can be used to introduce creative solutions to a particular problem in a community using intuitive thinking HUMSS_MCT12- Ic-e-6 3. Intuitive decision making includes imagination, sensitivity, rumination, creativity, and what psychologists such as Carl Jung considered intuitive intelligence: the human capacity to analyze alternatives with a deeper perception, transcending ordinary-level functioning based on simple rational thinking (Bishop, 2000). Use intuitive thinking in dealing with varied activities HUMSS_MCT12- Ic-e-4 5. Environmental Factors in Strategic Planning. Most of the time, it goes against whatever we might think of as “rational”. 0000005773 00000 n Why is it so important to integrate intuition and analysis in strategic management? Often such changes are not heralded and business managers must be alert as to what competitors are doing. The effect of climate change will not fall equally on all nations and all businesses. That process is strategic planning. It was developed in 1979 by Michael Porter, Harvard Business School professor. 959啓���ʣ*Q���"����w0Y�D"���@d!2Y�D"����`a�t�)�;�w����p��]pw��w�OG�B��B��>�>} 0000009625 00000 n Strategic thinking includes careful and deliberate anticipation of threats and vulnerabilities to guard against and opportunities to pursue. Porter’s 5 forces framework is used for strategic industry analysis. Every strategist should have a toolset of analytical models at his or her disposal. To analyse the company I used PESTLE and SWOT analysis. 0000028389 00000 n of cash to implement strategies within the strategic plan. Buchanan and O’Connell cited some famous statements related to intuition (Buchanan – O’Connell, 2006): “Pragmatists act on … Like law, changes Economic conditions 0000011939 00000 n In our experience, there are 5 critical factors that will ensure your strategic plans are successfully implemented. All businesses have an … It develops thinking and morality among the employees of the firm that helps the strategist to take appropriate and effective strategic decisions. In the 1970s, Vroom and Yetton (1973) argued that the The following diagram provides examples of factors that are agents of change and need to be considered in the strategic planning process. 0000005505 00000 n Generally the strategic planning process will examine the strengths and weaknesses of the organisation (see SWOT analysis), and it is likely that significant discussion will center on the relative strength of internal environment factors. Learn about SWOT Analysis and its role in internal strategic analysis and PESTLE Analysis and its role in external strategic analysis. Strategic thinkers translate a company’s vision into doable actions. There is some indication that this can be taught, which benefits those learning how to make appropriate and the best decisions in various situations (Nokes &Hacker, 2007). Long range planning results in 5-7 major strategic objectives that will become the focus for the next several years. 0000007139 00000 n Before you can even start formulating a strategic analysis report, you first need to create a strategic analysis. Similar effects of strategy were found when strategy instruction was manipulated and when participants were compared on the basis of strategy preference. To analyse the company I used PESTLE and SWOT analysis. More contemporary forms of management involve workers in decision making processes and trusting that, although managers and workers have different viewpoints, they largely benefit by working together to achieve the business objectives. In particular, the systematic subjects were very likely to be of the “thinking” type and the intuitives much more likely to be at the other end of the scale, “feeling.” R.O. Technological <]>> It means anticipating opportunities and challenges and utilizing that knowledge to guide the organization. Typically, strategic analysis involves a review of internal strengths and weaknesses as well as factors in the external environmental that could affect business. Patterns develop from experiences. It is therefore a good place to develop basic intuitions. trailer This essay is based on the study of Amazon.com. Also learn about Strategic Analysis and its role in Market Research and their strengths and weaknesses. OBJECTIVES A. The main driver of this change is technology and the rise of the internet. these changes include an increasing proportion of elderly citizens, Learning to distinguish inferences from assumptions is another important distinction in critical thinking. Intuive thinking is an unconscious process for rapid action, judgment, and decisions. %%EOF Strategic analysis is a process that involves researching an organization’s business environment within which it operates. Problem solving strategies include, but are not limited to brain storming, cost benefit analysis, written remediation plans, and an examination of possible choices (Wester, Christianson, Fouad, & Santiago-Rivera, 2008). The term “blink” comes from the book by the same name by Malcolm Gladwell that essentially lays out the subconscious process of intuitive decision-making. However the managers of a business or organisation do have some measure of control as to how the business reacts to changes in its external environment. I started by talking about the E-commerce and a brief history of Amazon. Strategic Analysis And Intuitive Thinking Pdf Mba. As an example of how government policy has an effect, is that many organisations depend on government financial assistance. All businesses have an internal and external environment. 0000059087 00000 n x�b```b``-c`c`�`d@ A������ϧd�5��=`� =�H"8K"�/:cqᔊ�D�p����Y��"պ�Wp�(�HI���o���W�2K#n5���p/�"����:�:���Yc"GB��_�"��,[=���:��4�si���n抹/UE�d6�u However, there are many techniques and tools available for strategy analysis. in government policy can be well notified and discussed, or without warning. It is context-rich in the sense that it is anchored in both internal and external analysis. Some external environmental factors such as economic conditions are reported daily in the media and managers have a wealth of information on which to develop strategic plans. Content Standards The learner understands strategic analysis and intuitive thinking. endstream endobj 41 0 obj<> endobj 42 0 obj<>/Font<>/ProcSet[/PDF/Text]/ExtGState<>>>/Type/Page>> endobj 43 0 obj<> endobj 44 0 obj<> endobj 45 0 obj<> endobj 46 0 obj<> endobj 47 0 obj[/ICCBased 72 0 R] endobj 48 0 obj[75 0 R] endobj 49 0 obj<>stream 0000035620 00000 n Strategic analysis is the use of various tools to prepare business strategies by evaluating the opportunities and challenges faced by the company as it moves forward. P.O. For any business to grow and prosper, managers of the business must be able to anticipate, recognise and deal with change in the internal and external environment. Divergent and Convergent thinking skills are both “critical thinking” skills. 0000059959 00000 n Analysis revealed that the #1 cause of bankruptcy in nearly 50% of the cases was bad strategy. Prevailing economic conditions of the nation will have an effect on the spending patterns of citizens. Grades 1 to 12 DAILY LESSON PLAN School Grade Level 12 Teacher Learning Area Trends, Networks and Critical Thinking in the 21 st Century Culture Teaching Dates and Time Week 4 Days 1 – 4 Quarter First Day 1 Day 2 Day 3 Day 4 I. Use intuitive thinking in dealing with varied activities HUMSS_MCT12- Ic-e-4 5. The internal environment of the organisation can be made richer or poorer by its assets. Climate change is an insidious threat because the pace of change may be recognisable only if considered on a decade-by-decade basis. 1. Strategic thinking is a systematic approach to solving problems. The business cannot control these aspects but can respond to change if needed. Strategic-thinking in the workplace is the ability to make business decisions by analyzing current and future scenarios. 0000001336 00000 n Strategic analysis is a process that involves researching an organization’s business environment within which it operates. On a management and leadership level, strategy thinking is the main part of the strategic planning process which involves a wide range of activities such as goals settings, task delegation, developing plans, decision making, analyzing environment, and much more. Strategic analysis is the use of various tools to prepare business strategies by evaluating the opportunities and challenges faced by the company as it moves forward. The intuitive approach works better in that case because relying on accumulated experience and intuitive pattern recognition spares one the high costs of rational analysis. However, there are many techniques and tools available for strategy analysis. “The strategic-management process can be described as an objective, logical, systematic approach for making major decisions in an organization. Change is a certainty, and for this reason business managers must actively engage in a process that identifies change and modifies business activity to take best advantage of change. startxref xref In thinking conceptual thinking is problem solving or thinking based on the cognitive process of abstraction and conceptualization-is a process of independent analysis in the creative search for new ideas or solutions, which takes as its starting point that none of the accepted constraints of “today’s reality” need necessarily to apply to or to shape the future. This leads to better intuition. For this reason, organisations pay particular attention to the, The culture within the organisation is a very important factor in business success. 0000004088 00000 n 0000044460 00000 n For example. The decision making process can be complicated and overwhelming. 0000059412 00000 n strategic analysis understanding of an organization's internal and external environments to create a strategy for better utilization of resources in the pursuit of the organization's objectives and priorities. Strategic thinking is defined as a mental or thinking process applied by an individual in the context of achieving a goal or set of goals in a game or other endeavor. If you google around the web, you will find a long list of options available. 0000052304 00000 n ]��J�?���4>�ۦ��{�~�0v�Y��*�*=܇�O��~R�Z�UN�E_��k} *��>����M���̿?CP:�0͵ ��n�X�琬��[�U5�$���DZ��]�q{>o�2���Z�� j�*Q�B���3T��NÝ�F�(��(A�E ʡ,ʣj��(RR�6�η� �@m�Ҥ6���rjr Increase experiences - Try new things. More experiences will create and shape successful patterns. when people experience financial hardship, they will spend much less on sport and recreation, holidays, new cars and luxury goods. 0000002588 00000 n 0000004784 00000 n 0000052060 00000 n A candidate should see strategic thinking as a process of learning and you turn ideas into reality by developing one’s abilities in team work, problem solving, and critical thinking. Prof Evander. But intuitive and experience-based management philosophies are grossly inadequate when decisions are strategic and have major, irreversible consequences. 0000012807 00000 n 0000001869 00000 n The experience and beliefs of the leader, the demands (or lack of) from the community, and the level of impact of a decision are some of the contextual factors that leaders consider when determining which decision-making approach to utilize (Khakheli & Morchiladze, 2015). This type of thinking is trying to reduce the weakness of mechanical thinking, the conservative approach and disregard for the changes occurring in the environment. agriculture, field sports will be adversely effected if climate change results in reduced rainfall. 0000002325 00000 n 0000059891 00000 n 0000013626 00000 n Strategic Leadership and the Macro Environment Analysis Once you have grasped an understanding of the macro environmental analysis you will be continually scanning for information about macro factors activities such as watching or reading the news, reading management magazines and when in conversation with other industry leaders will all lead to a greater understanding of the macro … STRATEGIC ANALYSIS AND INTUITIVE THINKING STRATEGIC ANALYSIS is the process of examining, using one’s rationality or reason, the organizations surroundings and resources, and how they relate with each other to formulate a strategy to meet objectives and improve performance. If equipment is in short supply or not of the expected standard, then staff may be hindered in the performance of their duties, or if equipment is used by customers then customer satisfaction will fall. Typically, strategic analysis involves a review of internal strengths and weaknesses as well as factors in the external environmental that could affect business. Strategic groups can be created to examine a wide variety of issues that may need to be addressed. I would say that the main difference between intuitive and analytical thinking is that intuitive thinking involves the subconscious mind and analytical thinking involves the conscious mind and secondly that intuitive thinking involves the feelings where analytical thinking may not, as sometimes to be truly analytical or strategic may require the need to put the emotional element to one side so as not to cloud … In a sense, the strategic-management process is an attempt both to duplicate what goes on in the mind of a brilliant, intuitive person who knows the business and to couple it with analysis. It’s entirely about signs and sensations. In addition, the tools are commonly used in many organisations for strategic … 0000005797 00000 n objective analysis can result in an effective management style in which intuitive judgments are intelligently used (Haidt, 2001). were once dominated by young families now have few. It will examine the underlying factors which help to determine the profitability of a company. Most decisions we make are automatic. Together, heuristics and factors influencing decision making are a significant aspect of critical thinking (West, Toplak, & Stanovich, 2008). Copyright and Disclaimer | About the author Leo Isaac | Email Webmaster, Strategic and Operational Planning Templates, The knowledge, experience and capability of an organisation's ��A� 5li� Just as it is critical for the strategic thinking phase to be intuitive, it is critical for the long range planning phase to be analytical, rich in facts and figures, and detailed. If the leaders at the various levels of your organization can’t think strategically today, you may not have a business tomorrow. Components of strategic thought and action In simple terms, strategic thinking and/or planning consists of three phases that A strategic group analysis allows an organization to begin assessing their industry and the various marketplaces where they are active. Intuitive thinking is just that: thoughts that arise from the back of your mind because the situation you are dealing with has something in common with your past experience. Steps necessary to execute strategy-oriented analysis involve identification of internal and external factors (using popular 2x2 matrix), selection and evaluation of the most important factors, and identification of relations existing between internal and external features. We shall assume that you will pursue analogous strategies for the various other basic concepts in critical thinking on your own. 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