Lecture 3: Intuitive Thinking and Strategic Analysis Notes

Strategic Analysis

The ability to synthesize intuition and creativity to achieve an integrated perspective for an organization.

Tool Analysis

Utilization of various analytic tools (e.g., SWOT, PEST) to assess and evaluate.

Tool Analysis, Rational, Systematic, Goals, and Strategic Planning

The key components of Strategic Analysis

Identify the Problem

The first step in Strategic Analysis

Analyze the Problem

Second step in Strategic Analysis

Generate Solution

Third step in Strategic Analysis

Implement the Solution

Fourth step in Strategic Analysis

Reflect on the outcomes

Last step in Strategic Analysis

Tool Analysis

Uses to help in the formulation of strategy. The common tool analyses use is the SWOT analysis and the PEST analysis

Rational

Being logical in examining a situation

Systematic

There is a step-by-step process in identifying problems.

Goals

Talks about the purpose of the organization

Strategic Planning

Clarifies the ways in which our daily work will help you move to the goals forward.

Strategic Planning

the ability to plan

SWOT Analysis

widely used tool that helps in understanding the strengths, weaknesses, opportunities, and threats involved ina project or business activity

Internal Factors and External Factors

the two categories of SWOT Analysis

Internal Factors

Strength and Weaknesses

External Factors

Opportunities and Threats

PEST Analysis

a useful tool for understanding the political, economic, socio-cultural, and technological environment in which an organization operates.

Political Factors

These include government regulations such as employment laws, environmental regulations, and tax policies. Other political factors are trade restrictions and political stability.

Economic Factors

These affect the cost of capital and purchasing power of an organization. This factor includes economic growth, interest rates, inflation, and currency exchange rates.

Social Factors

These impact on the consumer’s need and the potential market size for an organization’s goods and services. Social factors include population growth, age demographics and attitudes towards health.

Technological Factors

These influence barriers to entry, make or buy decisions and investment in innovation, such as automation, investment incentives and the rate of technological change.

Intuitive Thinking

A characterized as the intellectual skill of arriving at immediate decisions and conclusions without going through a rigorous step-by-step process

Immediacy

This refers to the timing in intuitive thinking. The time involved in intuitive thinking is quick. Decisions, actions, and solutions come up fast without planning or deliberation. In layman’s terms, this can also be described as a gut feeling.

Sensing Relationship

This refers to the establishment or formulation of connections among ideas. This is basic to intuition.

Inductive Reasoning

formulates connections and arrives at conclusions from the part to the whole or from specific to general.

Deductive Reasoning

formulates connections starting from general to particular or from the whole to the parts.

Reason

Intuition and reason complement each other. Alongside rationality, intuitive thinking is also a uniquely human ability. This ability helps us realize valuable concepts and ideas.