1 Module 1 – Strategic Analysis and Decision-Making

PROGRAM OUTCOMESDUCTION
2 Module 1 – Strategic Analysis and Decision-Making

LESSON 2: Challenges in the External Environment

SPECIFIC LEARNING OUTCOMES

In this lesson, you should be able to:
1. employ SWOT analysis using a company;
2. analyze and evaluate the social, political, economic, technological, and environmental forces affecting
the country; and
3. identify external forces that may prove beneficial or detrimental to an organization.

PRE-ASSESSMENT
True or False. Write T if the statement is correct and write F if the statement is wrong.

_______1. Organizations exist to survive.

_______2. Organizational intelligence refers to the expertise, insight, and wisdom possessed by an entity.
_______3. It serves as a valuable guide to its journey to becoming competitive.
_______4. Conducting environmental scanning is both easy and difficult.
_______5. The competencies, skills, ad intelligence of the individual will allow for easy scanning of the
environment.
_______6. Strengths are features that organizations possess, thus, giving it significant advantage over
others.
_______7. Social forces refer to important issues that are characteristics of global and local societies.
_______8. The social environment can be better understood and analyzed in terms of broad social
structures.
_______9. Baby boomers are individuals born in the 1940s.
_______10. Economic issues greatly affect the growth and development of a nation.

LESSON MAP

Challenges in the External Environmement

Scanning the Environment

Sources of Strategic Information

Modes of environmental scanning

The SWOT Matrix Ana;ysis

The External Environemnt

The map above describes the topics of Challenges in the External Environment
3 Module 1 – Strategic Analysis and Decision-Making

CORE CONTENTS
ENGAGE: Image Analysis

1. Give at least two paragraph of your analysis on the image above.

____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________

EXPLORE: Reading Concepts

SCANNING THE ENVIRONMENT
Organizations exist to survive. Given their vision and mission statements and set goals and
objectives, it is for organizations to conduct themselves clearly, deliberately, and strategically. To achieve
this, organizations should develop “organizational intelligence.”
• Organizational intelligence refers to the expertise, insight, and wisdom possessed by an entity. It
serves as a valuable guide tom its journey to becoming competitive. Thus, organizations need to
possess this capability to be able to accurately audit the environment and come up with creative ad
cutting-edge strategies.
• Environmental scanning is the study ad interpretation of the forces existing in the external and in
internal environments. The external environment includes social, economic, political, technological,
and environmental forces that may influence an organization, an industry, or any entity. The
competitive environment covers competitors, suppliers, customers, stakeholders, culture, and the
government.
• Environmental scanning is carefully monitoring the surroundings with the end goal of ascertaining
early indications of prospects and challenges that may influence the organization’s present and future
plans.
4 Module 1 – Strategic Analysis and Decision-Making

• Conducting environmental scanning is both easy and difficult. For informal scanning, experience and
expertise will help make the process effortless and straightforward. The com potencies, skills, and
intelligence of the individual will allow for easy scanning of the environment.
• On the other hand, environmental scanning can be demanding, in that there is a need for
comprehensive, as well as accurate information. It will be mostly dependent on the following: (1) the
speed of the organization to conduct scanning; (2) t6he presence and availability of complete
information; and (3) the physical and financial capability to do so.

SOURCES OF STRATEGIC INFORMATION

Strategic information consists of the facts and data use by organization s to assist them in
achieving their vision, mission, and goals. Strategic information can be drawn from both external and
competitive environments. Both external and internal environments symbolically interplay and directly or
indirectly affect organizations. Information is either primary or secondary.
• Primary data are gathered through personal experience, observation, and experimentation while
• Secondary information are data collected from reports, internet sources, and other published
materials.

MODES OF ENVIRONMENTAL SCANNING

Scanning the environment involves two processes. The first one is looking at or simply viewing in
formation, and the second one is looking for or searching for information. According to Aguilar (1967), there
are four ways of environments scanning. ?they are un directed viewing, conditioned viewing, informal search
and formal search.
1. Undirected Viewing. The individual is exposed to information with no specific information need in
mind. The sources of information are wide-ranging and large chunks of information are quickly
dropped from the individual’s attention. Thus, the individual ends up with general information that may
be helpful for him in spotting early signals of change. It is a significant mode of feeling the
environment as this increases awareness in the organization to undertake needed proactive strategic
moves. Accordingly, organizations should continuously undertake u directed viewing of the
environment. Many times these process of environmental scanning can save an organization from
losing out in the survival game or maybe the reason for organizational success.
2. Conditioning Viewing. The individual direct viewing of information to specified facts and data to be
able to assess their general impact on the organization. It is not an active search but a mere viewing
of information. It provides a cue or hint that more purposive scanning should be instituted if the effect
is assessed to be sufficiently significant.
3. Informal Search. The individual actively looks for information to increase knowledge of a particular
issue. It essentially involves a relatively unstructured effort where the objective is to gather
information to expound on the issue, thus, determining whether a strategic move is needed by the
organization. If a need for a decision or action has been established, more time and resources on a
formal search will be spent by the organization.
4. Formal Search. The effort exerted by the individual is deliberate and planned. The search is both
focused and structured and the research methodology is clearly enumerated and followed. Specific
5 Module 1 – Strategic Analysis and Decision-Making

information is presented and organizations conduct environmental scanning through varied

approaches. These search approaches can include industry analysis, market studies, and competitor
and customer analyses among others. Appreciably, results of the formal search normally provide
organizations bases for decision-making and courses of action.

THE SWOT MATRIX ANALYSIS

The SWOT matrix is a structure assessment tool used to evaluate an organization, industry, a place
or even a person in terms of set parameters like strengths, weakness, opportunities, and threats. Credited to
Albert Humphrey in 1960, the SWOT matrix classifies strengths and weaknesses as internal dynamic
characterizing an organization and threats and opportunities as external influences to the organization.
Specifically:
• Strengths are features that organizations possess, thus, giving it significant advantage over others.
• Weaknesses are characteristics that place organizations at a disadvantage relative to others, and
may just be limitations or vulnerabilities of organizations.
• Opportunities are possibilities in the external environment that organizations can exploit to their
advantage.
• Threats are challenges in the external environment that can cause problems to organizations

Humphrey’s 2x2 matrix model (2005) suggests actions for issues arising from the SWOT analysis
according to four different categories. The recommended practical and direct actions are presented in Table
2.1
Table 2.1 SWOT Analysis Matrix
Strengths (Internal) Weaknesses (Internal)
Strengths/Opportunities Weaknesses/Opportunities
• Obvious natural • Potentially attractive
priorities options
• Likely to produce • Likely to produce good
greatest ROI (Return returns if capability
on Investment) and implementation
• Likely to be quickest are viable
and easiest to • Potentially more
Opportunities (External) implement exciting, stimulating,
• Probably justifying and rewarding than
immediate action S/O due to change,
planning, feasibility challenge. Surprise
study, or business plan tactics and benefits
• Primary Question:” If from addressing and
we are not yet looking achieving
at these areas and improvements
prioritizing them, then • Primary Question:”
why are we not?” What is actually
stopping us from doing
these things, provided
they truly fit
strategically and are
realistic and
substantial?”
6 Module 1 – Strategic Analysis and Decision-Making

Threats ( External)
Threats ( External)
Strengths/Threats Weaknesses/Threats
• Easy to defend and • Potentially high risk
counter • Assessment of risks is
• Only basic awareness, crucial.
planning, and • When risk is low,
implantation are ignore these issues
required to meet these and do not be
challenges. distracted by them.
• Investment in these • When risk high,
issues is generally assess capability gaps
safe and necessary. and plan to defend or
• Primary Question: “Are avert in specific
we properly informed controlled ways.
and organized to deal • Primary Question:”
with these issues and Have we accurately
are we certain there assessed the risks of
are no hidden these issues and when
surprise?” and “since risks are high, do we
we are strong here, have specific
can any of these controlled reliable
threats be turned into plans to
opportunities?’ avoid/avert/defend?”

THE EXTERNAL ENVIRONMENT

The external environment today is highly complex. This fundamental paradigm conspicuously
characterizes the global scenario. Nations possess different levels of growth and development. For example,
power relationships have become dynamic, volatile, uncertain, complex, and threatening. Multifaceted
concerns, although distinct, have become primordial issues among countries, causing differences in policies
and global interrelationships. Oftentimes, an atmosphere of strategic negotiation, compromise, and survival
permeates. Consequently, knowledge of the broad environment is considered an advantage for organizations
when managers constantly develop an audit “intelligence” of the environment.

Specifically, the external environment presents varying forces that in flounces organizational direction
and strategic decision-making. These forces are social, political, technological, economic, environmental, and
legal in perspective. The confluence of these forces can present themselves as threats and challenges to
organizations. On the other hand could provide valuable opportunities. The analysis of the external
environment is referred to as PEST (Political, |economic, Social and Technological) Analysis.

Social Forces
Social forces refer to important issues that are characteristics of global and local societies. Society
consists of individual, families, and communities, including their beliefs, aspirations, traditions, and
practices. Significant societal factors in the environment create varying impacts on organizations.
Some of the more critical social concerns today are changing social structures, the world’s aging
population, the great demand for health services, the evolving sophistication in the lifestyles of
people, and the cross-cultural implications of mobility of people’s including migration, among others.
• Changings Social Structures. The social environment can be better understood and
analyzed in terms of broad social structures. Social structure refers to the network o social
institutions that include the family and community. The family is one of the basic institutions of
7 Module 1 – Strategic Analysis and Decision-Making

a social organization. It performs various functions that included human reproduction, raising
up children, and sending them to schools to ensure a better life in the future. When bound
together, families form communities.
Today social structures are significantly changing. Family sizes are decreasing in
developed countries like Europe and America. In china, the one-child policy has been strictly
implemented and monitored for the last decades, although this law has now been relaxed. On
the other hand, a greater number of underdeveloped countries allow larger family sizes that
bring about accompanying social implications. As a result, there is a pressing need to provide
for well-balance family like good education, decent housing system, acceptable monthly
incomes, safety and security in communities, and more opportunities for livelihood. The
interrelationships of these social construct describe today’s changing communal; and shared
structure, including marked differences in universal and collective values, beliefs, morals, and
religious.

• Aging Population/Demand for Health Services. There are more maturing and aging
individuals today. Like an inverted triangle, the baby boomers are greater in number. Baby
boomers are individuals born in the 1940s. Today, they are precisely the people who need
more medicine and health services. This reality has fundamental social implications like the
need to provide elderly people with adequate medical care and community service.
Because of their deteriorating physical and physiological condition, senior citizens
need more doctors, nurses, and caregivers to attend t their curative and health requirements,
and nutritionists to guide them in eating healthful food. They need psychologist’s to tend to
their to their emotional needs, adequate medicines to address their therapeutic and remedial
concerns, modern health equipment, and facilities like homes for the ages to provide them
with comfortable welfare dwellings and warm neighbourhood centers to help them get
smoothly through the aging process.

• Sophisticated Lifestyles of People. Compared to the past, the lifestyles of people today
have dramatically changed too. Their way of looking at themselves, the people around them,
their lives and careers, their values, attitudes, philosophies, and expectations have taken a
deeper and wider perspective. They are more demanding, complicated, varied, and unique.
Their priorities, as well as their wants, are continuously changing. Whereas earlier generations
were content with having a simple abode to stay safe, today the new generation of people
wants to own houses and live extravagantly. Once content with simple things, they expect
more from life and living.

• Cross-cultural Diversity. Similarly, the global community is getting figuratively smaller.

Workplaces are shifting and people in the global community are either working or migrating to
every part of the world. As a result, cross-cultural diversity has become an important
organizational issue; culture being a basic component of the global environment. When we
speak of multicultural, we consider of the individual and the host country.
8 Module 1 – Strategic Analysis and Decision-Making

While foreigners bring with them their deep-rooted cultures, beliefs, aspirations,
values, traditions, perspective, religion, and sense of nationalisms, there is a need for then to
also respect the culture of their hoist country and adjust to its cultural traditions and
idiosyncrasies.

Political Forces
There are crucial concerns confronting nations today. Geopolitical issues have become the focus of
major political powers. Some of these issues are political independence, changing governments,
balance of power, terrorism, suicide bombings, global alliances, and chemical and nuclear warfare.
These critical problems are affecting the global political balance.
• Political Independence/Changing Governments. Political sustainability has become the
focus and concentration of developed and power-driven countries. They fight wars has
challenged nations to involve themselves in the attainment of global peace and security.
Global ideologies are the main determinants of global support while global power is the main
ingredient of global leadership. Consequently, nations today are undergoing changes in
government: from communism to socialism to capitalism, and from dictatorship to democracy.
More particularly, some colonized territories in the world are waging their own wars to attain
independence. Fighting, dissention, and mayhem characterize civil wars. The hostilities
between and among the protagonists are bloody and costly. People are killed, families are
displaced, and properties are destroyed. These affect the very core of humanity.

• Terrorism/Suicide Bombings. The bloody and painful transition toward equality of basic
human rights and the right to a better life have brought about critical security problems like
terrorism, kidnappings, suicide bombings, and hijackings. News about wounded and dead
children, elderly citizens, and innocent people has become normal occurrences heard over
radio ad seen on television. Kidnappings for ransom have become sure sources of finances.
The fearless and bold attack by suicide bombers are a brazen testimony of disregard for law
and order.

• Chemical and Nuclear Threats. Some countries go on developing and producing weapons
with the intention of blackmailing and /or intimidating other countries. True enough, the spread
of deadly chemicals, viruses, and other forms of microorganisms pose dangerous effects. This
is likewise true with nuclear military hardware. Nuclear threat is imminent where countries
continue to beef up their nuclear arsenals. Although nuclear plants are essentially useful in
harnessing nuclear energy, their misuse and abuse are threats to peaceful coexistence.
Danger looms and when used indiscriminately, these long-range and short –range missiles
can literally erase the whole of humanity. In essence, political survival and power are the great
determinants of political decision-making and peaceful coexistence.
9 Module 1 – Strategic Analysis and Decision-Making

• Global alliances. Politically, nations are aligning themselves for self-preservation and more
so, for global stability and strength. Today, no nation attempts to stand alone because global
relationships are essential to national survival. European nations have bonded themselves ad
the European Union. The same is true with ASEAN countries.

Economic Forces
Economic realities have concomitantly come to the forefront. |Economic issues greatly affect the
growth and development of a nation. Nations are strategizing to maintain a continuum of financial
stability. Most often, trade and investments are transacted to ensure monetary security. Economic
realities include globalization of products and services, the presence of aggressive competitors and
suppliers, the fall of large and “supposedly” financially stable organizations, increasing oil prices,
economic trade agreements, the emergence of new markets, and the rise of china as a major
economic player in the world.
• Globalization. This is one major determinant of competition. Globalization can be viewed
from four perspectives: products, people, ideas, and money. Before, simple and traditional
goods were generally accepted but today’s consumers demand flexibility and versatility in the
products they use.

Multifaceted, multi-layered, and multidimensional products and services in the market are challenging
firms to devise ways to meet these recent developments. Products like computers, appliances,
clothes, bags, shoes, and medicines are manufactures in one country and sold in other countries.
Chinese products “go” as far as Europe while Filipino baby dresses are sold in Africa. Indonesian
tables and chairs are fixtures in Philippine offices while European-branded cell phones are
everywhere, even in North Korea. This is a millennium-manufacturing phenomenon.

Globalization likewise implies mobility of people. People migrate to countries of their desire. Although
the number of global citizens is increasing a great majority of people leave their own countries to work
abroad. The Philippines, as a country, has created its comparative advantage in the area of human
resources, the country being competitive when it comes to its nurses, caregivers, teachers, seafarers,
10 Module 1 – Strategic Analysis and Decision-Making

and programmers. Similarly, monetary dealings are conveniently transacted electronically through
banks and other financial institutions as far as Cayman Islands. Lastly, inventions and expertise are
no longer limited to a particular nation. Indonesia has developed a cure for bird flu, while the science
of robotics is being experimented and actualized in Japan. Everywhere, we see individuals with
brilliant ideas and discoveries. Thus, we speak of “globalized” people, money, products and services,
and ideas.
• Competitors and Suppliers. Aggressive competitors and creative suppliers compete to get a
larger slice of the market, both energizing the industry and business environments. Pricing,
quality, differentiation, and innovation are the usual criteria for business success with
consumers more likely patronizing less expensive but quality products. Since quality is a
given, it is necessary for survival. Thus, aside from satisfying minimum quality requirements,
organizations should offer differentiated and innovative products and services to satisfy
customers with discriminating expectations. Doing this creates bargaining power and
increases competitiveness and profitability.

• Fall of Financially stable Organizations. The last few years saw the downfall of a number of
financially successful organizations that were managed by respectable and competent
presidents and chief executive officers. The corporate fiasco of Enron, Wrold.Com, and the
Lehman brothers are but a few examples of the more widely talked-about financial
catastrophes.

• Increasing Oil Prices. The never-ending increases in oil prices have been creating economic
instability in global communities. Characterized by unpredictability in price and production,
organizations using and any of its “derivative” products find difficulty in projecting costs and
profit figures. Planned strategies have become difficult to actualize. A versatile commodity, oil
is a multi-purpose raw ingredient found in many products. Changers in oil prices are determine
to the survival and success of many organizations.

• Economic trade Agreements. Economic trade agreements among nations have likewise
become a vital bargaining power in a country economy. Bilateral and multilateral economic
treaties between and among economic global partners provide trade priorities and privileges,
allowing local products to reach other markets. Example of these products is cloths, furniture,
bananas, handicrafts, dried mangoes, fashion jewellery, and human resources. The World
Trade Organization (WTO), Asian Free Trade Organization (AFTA), North America Trade
Agreement (NAFTA), and Asia-Pacific Economic Cooperation (APEV) are examples of these
alliances. The implementation of zero or near-zero tariffs on all traded products is now
effective.

• Emerging Markets. Closely interrelated to the political, social and economic growth and
development of a country is the emergence of different markets. Developed, developing, and
11 Module 1 – Strategic Analysis and Decision-Making

underdeveloped countries are economic markets with unique needs, wants, demands, distinct,
and peculiarities.

• Rise of China. One of the most potent economic markets in eh world today is China. It is
seen both as a supplier and a big market. Constituting one –third of the world’s population,
China is a market for other countries products and services. As a supplier, the country is
capable of providing goods and services to the world market. Although not apparent, the
economic status of nations indirectly affects political alliances.

Technological Forces
We live in a digital world. Another important catalyst of competition is technology. In the 1980”s,
information technology began is journey toward radical communication and technology growth.
Significant changes happening in the world today have been the result of rapid development in
information technology. These technological advances are observed in the fields of communication,
business, banking, education, medicine, security, and in all facets of everyday living.
• Communication Technology. Communication technology saw the proliferation of mobile
phones, popularity of text messaging, convenience of sending fax messages, usefulness of
CCTV cameras for surveillance and simple monitoring, and benefits of video conferencing,
among others. The impact of these changes in the area of communication technology cannot
be overemphasized.

• Computer-integrated Business. Today, enterprise resource planning (ERP) integrates

business operations in marketing, accounting, production, operations, and management.
Computer-aided manufacturing makes production more efficient, computer-aided design
results in concise outputs while telecommunication technology makes physical distances
immaterial. Product innovation is easier to create, product development is relatively shorter,
less cumbersome but more challenging, and fewer employees perform tasks due to
technology. In addition, enterprise resources planning is popularly applied in supply chain
activities like purchasing, inventory management, scheduling and dispatching deliveries’,
distribution logistics, documentation and management of accounts receivables and payables,
and preparation of income statements and balance sheets. Thus, it can be said the ERP has
revolutionized operational activities, making processes more precise and efficient. In
production, processes are computer-aided, computer-integrated, and computer-manufactured,
thereby producing quality, more efficient, and cost-effective goods and services.

• E-banking. Banking transactions like deposits, withdrawals, and payments can be done
online nowadays; Intra-banking operations are more efficient while international banking
transactions are operated with accuracy and expediency. Confidentiality of transaction’s can
be largely maintained while anomalies can easily be tracked as long as procedures for check
and balance are in place.
12 Module 1 – Strategic Analysis and Decision-Making

• E-learning. One of the most recent developments in education is distance or online learning.
It is learning from home, the office, while on vacation, or from any place outside the four walls
of a classroom. Popular among busy people, e-learning has become a convenient way of
pursuing formal education: high school, vocational, tertiary, graduate, and doctoral levels.
Furthermore, e- learning with the classrooms can be conducted since schools today have
access to the Internet.

• Digital Medicine. Another surprising and most welcome development in the field of medicine
is the use of technology. Scientists conduct stem cell researches from leftover human
embryos with the hope of curing illness like diabetes, Parkinson’s disease, and spinal cord
injuries. These days, computer-guided robots perform surgical procedures. Using androids,
surgical operations are more precise, cheaper, and less time-consuming.

• E-security. Security is another vital global issue. The use of information technology is
inevitable in manufacturing missiles and other forms of ammunitions, coding military secrets,
safeguarding fortified installations, monitoring enemies, securing soldiers, and planning
counterattacks. More particularly, robots can detonate bombs and operate helicopters for
reconnaissance missions. True, the age of digital living had arrived and more changes are
expected.

Environmental Forces
Environmental responsibility is the urgent call of the global neighborhood. Ecological damage is
happening everywhere. There seems to be an utter disregard or seeming indifference about the
environment. Environmentally, no country can claim complete isolation. The safety and survival of
one should be the concern of others. After all, nations share water boundaries.
• Climate Change/Use of Biodegradable Materials. The effects of environmental degradation,
malpractices, neglect, and indifference are critical and serious. The use of non-biodegradable
materials emitting chlorofluorocarbons continuously causes the widening and deepening of the
hole in the ozone layer. As a result, global warming has caused countries to experience
extreme weather changes, that is, from heat strokes on one end to extreme rainstorms on the
other end like extreme global climate changes: storm surges, tsunamis, below zero degree
climate weather, earthquake, volcanic eruptions, drought, and forest fires.

• Environmental Waste Management. In many underdeveloped countries, noise, air, and

water pollutions levels are high. Smog, fumes, and contaminants continue to cause increasing
incidents of diseases, more specifically those related to the lings. Mismanaged disposal of
toxic waste results in the occurrence of serious and infectious illness; lack of clean water
contributes to unhealthy living; unhygienic surroundings are eyesores while lack of cleanliness
produces grubby citizens who are health hazards to others. Furthermore, the use of dynamites
is destroying marine life, disturbing the seabed, and killing aquatic plants and corals. Oil and
gas spills contaminate bodies of water and cause marine imbalance.
13 Module 1 – Strategic Analysis and Decision-Making

• Preservation of Rainforest and Marine Life. Rainforests are no exception. Continuous

depletion and denudation of forest explain why torrential rains are more destructive and
intense nowadays. They result in damage to properties and danger to human lives.
Irresponsible mining is slowly destroying and running down natural barriers that otherwise
provides safety of abode to people.

These forms of man-made abuses and destructions are alarming. One realizes that care of
the environment is a serious concern and responsibility for everyone: the individual, the
organization, the community, and the government. In short, environmental preservation is a
global priority for everyone.

While some of the external environment forces do not directly affect us, they are significantly
vital to an organization. The global landscape, as earlier mentioned, cannot allow an
organization to run away from these realities. Somehow, these social, cross-cultural;,
geopolitical, economic determinants will affect the way organizations manage themselves in
the near future. In some instances, these forces may be the reason for their bankruptcy or
eventual closure.

EXPLAIN: Review Questions

Instruction: Answer the following questions:
1. Why should organizations possess “organizational intelligence”?
___________________________________________________________________________________
___________________________________________________________________________________
___________________________________________________________________________________

2. How will you defined strategic management?

___________________________________________________________________________________
___________________________________________________________________________________
___________________________________________________________________________________

3. What is SWOT Matrix Analysis? Explain its relevance to organization.

___________________________________________________________________________________
___________________________________________________________________________________
___________________________________________________________________________________

4. What roles do organization inputs play in the attainment of the success of an organization? Identify
each of these inputs.
___________________________________________________________________________________
___________________________________________________________________________________
___________________________________________________________________________________
14 Module 1 – Strategic Analysis and Decision-Making

5. Differentiate strategic analysis from strategic decision-making. Give an example.

___________________________________________________________________________________
___________________________________________________________________________________
___________________________________________________________________________________

6. Explain in what ways strategic management and strategic planning are similar. In what ways are the
two different?
___________________________________________________________________________________
___________________________________________________________________________________
___________________________________________________________________________________

7. Define organization vision by using an example of your own.

___________________________________________________________________________________
___________________________________________________________________________________
___________________________________________________________________________________

8. Why is the mission statement important to an organization?

___________________________________________________________________________________
___________________________________________________________________________________

TOPIC SUMMARY
In this lesson, you learned that:
• Organizations exist to survive. Given their vision and mission statements and set goals and
objectives, it is for organizations to conduct themselves clearly, deliberately, and strategically.
• Organizational intelligence refers to the expertise, insight, and wisdom possessed by an entity. It
serves as a valuable guide tom its journey to becoming competitive.
• Strategic information consists of the facts and data use by organization s to assist them in
achieving their vision, mission, and goals. Strategic information can be drawn from both external and
competitive environments.
• The external environment today is highly complex. This fundamental paradigm conspicuously
characterizes the global scenario.
• Nations possess different levels of growth and development.
• Multifaceted concerns, although distinct, have become primordial issues among countries, causing
differences in policies and global interrelationships.
• The SWOT matrix is a structure assessment tool used to evaluate an organization, industry, a place
or even a person in terms of set parameters like strengths, weakness, opportunities, and threats.
• Credited to Albert Humphrey in 1960, the SWOT matrix classifies strengths and weaknesses as
internal dynamic characterizing an organization and threats and opportunities as external influences
to the organization.
• Economic realities have concomitantly come to the forefront.
15 Module 1 – Strategic Analysis and Decision-Making

• Economic issues greatly affect the growth and development of a nation. Nations are strategizing to
maintain a continuum of financial stability. Most often, trade and investments are transacted to ensure
monetary security.
• Economic realities include globalization of products and services, the presence of aggressive
competitors and suppliers, the fall of large and “supposedly” financially stable organizations,
increasing oil prices, economic trade agreements, the emergence of new markets, and the rise of
china as a major economic player in the world.
E

FERENCES

• Young, Felina C. Strategic Management Made Simple. Rex Book Store. 2016.
• Retrieved from:https://www.google.com/search?q=images+on+understanding+why+customer+buy+
products&oq=&aqs=chrome.0.35i39i362l8.61569961j0j15&sourceid=chrome&ie=UTF-8. Retrieved on
February 28, 2022.
2.

•
• 2.
• on -photo/businessman-hand-moving-gold-chess