NAME:______________________________________________________ STRAND & SECTION:______________________

HANDS OUT IN TRENDS, NETWORKS AND CRITICAL THINKING IN THE 21ST CENTURY
3RD QUARTER
2ND SEMESTER( 2018-2019)

What is Strategic Analysis?

 Strategy analysis is an approach to facilitating, researching, analyzing, and mapping an organization's abilities to achieve a future
envisioned state based on present reality and often with consideration of the organization's processes, technologies, business
development and people's capabilities.
 Strategic analysis helps you explore your growth options, addresses challenges within your industry, and makes better corporate
decisions.
 Strategic analysis is not just about understanding changes. It is about turning this into concrete actions through generating options
and choices, making decisions and integrating this into your organization's planning process.

DIFFERENT METHODS IN STRATEGIC ANALYSIS

1. SWOT Analysis
 is a technique developed at Stanford in the 1970s, frequently used in strategic planning. SWOT is an acronym for Strengths,
Weaknesses, Opportunities, and Threats
 is a structured planning method that evaluates those four elements of an organization, project or business venture.
 A SWOT analysis is a simple, but powerful, framework for leveraging the organization's strengths, improving weaknesses,
minimizing threats, and taking the greatest possible advantage of opportunities.
 is a process where the management team identifies the internal and external factors that will affect the company's future
performance.
 It helps us to identify of what is happening internally and externally, so that you can plan and manage your business in the most
effective and efficient manner.

2. PEST Analysis
 is a useful tool for understanding market growth or decline, and as such the position, potential and direction for a business.
 PEST is an acronym for Political, Economic, Social and Technological factors
 which are used to assess the market for a business or organizational unit.
 Sometimes it's expanded to include legal and environmental factors and called a PESTLE analysis.
 A PEST analysis guides us to identify effective strategies for setting priority, allocating resources, planning for time and
development roadmap and formulating control mechanisms.
 With this analysis, you can identify potential opportunities and threats associated with your strategy and figure out ways to take
advantage of them and avoid them.

3. Value Chain Analysis

 is a way to visually analyze a company's business activities to see how the company can create a competitive advantage for
itself.
 helps a company understands how it adds value to something and subsequently how it can sell its product or service for more
than the cost of adding the value, thereby generating a profit margin.
 In other words, if they are run efficiently the value obtained should exceed the costs of running them i.e. customers should return to
the organization and transact freely and willingly.
 Originated in the 1980s by Michael Porter, value chain analysis is the conceptual notion of value-added in the form of a value
chain.
 He suggested that an organization is split into 'primary activities' and 'support activities'.

The figure below divides activities into primary and support activities as suggested by Porter's Value Chain Analysis model.
4. Five Forces Analysis
 Michael Porter developed the Five Forces Model in 1980.
 Michael Porter's Five Forces is a powerful competitive analysis tool to determine the principal competitive influence in a market.
 It is a broadly used model in business that refers to the five important factors that drive a firm's competitive position within an
industry.
 By thinking through how each force affects you, and by identifying the strength and direction of each force, you can quickly assess
the strength of the position and your ability to make a sustained profit in the industry
Thus Five Forces analysis helps you stay competitive by:
 Knowing the strength of these five forces, you can develop strategies that help their businesses be more competitive and
profitable.
 Looking at opportunities, you can to strengthen their organization's position compared to the other players for reducing the
competitive pressure as well as generate competitive advantage.
5. Four Corners Analysis
 developed Michael Porter, is a model well designed to help company strategists assess a competitor's intent and objectives,
and the strengths it is using to achieve them.
 It is a useful technique to evaluate competitors and generate insights concerning likely competitor strategy changes and
determine competitor reaction to environmental changes and industry shifts.
 By examining a competitor's current strategy, future goals, assumptions about the market, and core capabilities, the Four
Corners Model helps analysts address four core questions:
 Motivation - What drives the competitor? Look for drivers at various levels and dimensions so you can gain insights into
future goals.
 Current Strategy - What is the competitor doing and what is the competitor capable of doing?
 Capabilities - What are the strengths and weaknesses of the competitor?
 Management Assumptions - What assumptions are made by the competitor's management team?

PREPARED BY: KAREN MAE D. SIBAL

DATE:____________________________________