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)