5.

1 INTRODUCTION

"Maayong hapon sa tanan. I am tasked to discuss with you all Chapter 5: Synthesis
of Strategic Issues and Analysis."

The title suggests that the chapter focuses on systematically synthesizing

strategic issues with analysis. In simpler terms, it means we'll be looking at how
organizations combine and analyze important problems they face to understand their
overall strategic environment better.

"If you still remember our past discussions, previous reporters discussed how to
analyze the internal and external environment of an organization." right?

do you also know nga we can combine these two types of analysis through the famous
framework called? do you have any idea everyone? because it will be one of the
main topic of our discussion today? it is also preferred as Internal and External
Analysis. called? yes SWOT analysis.
that stands for? Strength, Weakness, Opportunities and? Threats verygood.

hence,
"The SWOT framework helps organize important information for strategic management.
It consolidates strengths, weaknesses, opportunities, and threats into one format.
This summary guides firms in identifying and addressing strategic issues
effectively."

so what are these.

"These are important challenges that can affect an organization's ability to
achieve its goals and objectives."

The strategic issue defines what the organization needs to address and resolve to
move the organization forward toward success by analyzing the data and information
from the internal and external assessments as presented in the SWOT.

so in simple terms, ang strategic issues isa ka "balakid' or an obstacle hindering

towards your goal. so you need to address and resolve this to move forward.

anyway,
as we go on with our discussion later we can delve deeper on strategic issues,
okay?

once a strategic issue is clearly defined, na identify na, the organization can
develop strategies to effectively address and resolve it. SO dire na magwa ang
purpose sang SWOT analysis or framework.

5.2 SWOT FRAMEWORK

"Do you still remember our chess tournament that was held on January 23rd?"
victorious moment for some, like kay karen nga ara da oh. and unfortunate moment
man para sa iban like me. chos... so let's talk about chess
You know, it's interesting how our perception of chess evolves over time. As kids,
many of us might have seen it simply as a game, but as we grow older, we come to
appreciate its true complexity. hinde lng sya simple lng nga mahulag ka sang pieces
and mangaon. I remember thinking that way too; tingala gd ko about the hype
sorrounding that game. it wasn't until college that I truly grasped the depth of
chess. It's not just a game—it's a mental workout. Unlike physical sports, chess
isn't physically exhausting, but it's incredibly mentally challenging, if madugayan
ang game, makapoy man mag isip..
"Chess, as a strategic game, has similarities to business, as noted by Chess master
Bruce Pandolfini."
dba as i mentioned earlier, chess is a mental work-out and mentally challenging so
you need to be good at it, the way you move, you strategize, must be according to
plan. one wrong move, you might get swallowed by your competitor or opponent. you
need to be wise.

Understanding your own abilities as well as your flaws means being aware of what
you're good at and what you're not so good at. It's like knowing your strengths and
weaknesses. you must be aware of your own capabilities and limitations. Knowing
what you're good at allows you to leverage your strengths to your advantage,
whether it's in making strategic moves on the chessboard or in decision-making
within the business world. undertanding your flaws enables you to address them
proactively, whether by improving your skills, seeking assistance from others

In chess, knowing your opponent's playing style, strengths, and weaknesses allows
you to anticipate their moves and formulate effective strategies to counter their
plans. Similarly, in business, understanding your competitors' strategies, market
position, and strengths can help you identify opportunities and threats also, kay
competitors strengths will be threats to your business. enabling you to develop
competitive advantages and mitigate risks.

In both business and chess, you have to deal with considerable uncertainty. Whether
it's navigating market fluctuations or anticipating your opponent's next move,
himde mo mapulong kung ano matabo. sa chess, if imo kontra is crafty, pwide nya ma
shift iya strat time to time, if feel nya nahlata na ni opponent iya tecnique, sa
business namn, changeable ang market, verytime may changes. eg. blackberry phone
touchscreen. opportunity(cherry mobile and myphone touchscreeb and threats
(blackberry and other keypad). uncertainty is a constant challenge. Success often
involv es making informed decisions amidst this uncertainty, adapting to unexpected
developments, and staying flexible in your approach.

so ara na kita sa swot. ang strenght, weakness, opportunity and threats. so ari ang
mga guiding question that can help you determine what is strenght.

1. identify areas where they excel, whether it's specific skills, talents, or
accomplishments. for example sa company, ila strenth or what they do well in the
market is strong brand reputation. while example nman sa individual. for example
kay karen, karen is good analyzing problems, that's why she really do well in
accounting.
2. unique advantages or resources that set them apart from others. example. Tesla
stands out from its competitors in the automotive industry due to its pioneering
development of the first electric car. This unique achievement has established
Tesla as a leader in the field, giving it a distinct advantage over other
companies.

specific markets or networks.

3. his question asks for outside opinions on your strengths. It's about getting
feedback from colleagues, customers, or others to understand how they see your
capabilities and what they appreciate most about you.

1. that could be strengthened or enhanced.n

2. consider external perspectives
3. potential kahinaan or risks that could impact their success.

1. potential avenues for growth, expansion, or improvement. It prompts

consideration of various factors such as market trends, emerging technologies, new
customer segments, strategic partnerships, or untapped market niches.
untapped market niches. fashion industry,. As consumers become more environmentally
conscious, eco-friendly and recyclable materials.
2.
1. monitor and analyze the actions of their competitors. It encourages staying
informed about competitor strategies, market positioning to identify potential
competitive threats
2. evaluate whether their weaknesses could significantly impact their ability to
achieve their goals or compete effectively in the market.
3. how economic factors, such as recessions, inflation, or changes in consumer
spending habits, may impact their financial stability and viability.

By addressing these questions, individuals or organizations can identify their

strengths, weaknesses, opportunities, and threats, helping them make informed
decisions to achieve their goals and stay competitive.

next,

so here as we see, is the swot framework. composed of four boxes. strength,

weakness, opportunity and threats. Strengths and weaknesses are assessed by
examining the firm, while opportunities and threats refer to external events and
trends. . As u can see ang row sang strength and opportunity is helpful,
Understanding strengths and opportunities is important for organizations because
it enables them to identify what they excel at and where they can grow. This
insight allows them to leverage their internal capabilities while capitalizing on
external factors to drive sustainable success. while weakness and threats are
harmful.

Weaknesses and threats can harm organizations by slowing their progress and
endangering their survival. It's crucial for organizations to recognize and tackle
these challenges to navigate effectively and succeed. and para maka move forward
ang isa ka organization.

Internal environment assessment tools such as VRIO and Value Chain Analysis can
lead to
organizational strengths and weaknesses.

Using external environment analysis tools like PESTEL and Porter’s

Five Forces help to determine opportunities and threats

and since swot has been touched by chapter 2. sir camulo suggest nga ih discuss ta
ang cross-swot analysis.

this one is swot analysis.

and this one is cross swot, a better swot with action

the tradtional swot does'nt say anthying sa future actions.

this one, is better swot nmn kay it is the expanded model of traditional, saying
how are we going to capitalize on strength, compensate for our weaknesses, exploit
our opportunities and challenge our threats. so this is cross-swot, it keeps the
simplisity of swot but adds actions. so it resulted into a more useful. so dre sa
traditional, if tapos mo ih input kung ano imo stregth, weakness, opportunity and
threat, so the question dayun is "what's next" ... cross-swot incorporates the
answer.

technically, maubra mn kita gihapon sang Traditional Swot pero as a reference nlng
sya para sa cross- swot or pwide mn nga dirctly kana ma input sa cross-swot.
Helps generate, compare, then select one or more strategies.

Strategics options you may developed:

intersection-
strength-opportunity; u describe how you use ur strength to exploit on available
oppportunities.
maxi-maxi strat. Highest Potential

weakness-oppportunity;
u describe how you challenge
mini-maxi strat. how u use opportunity to overcome weaknesses

intersection of strength- threats

to overcome any threats u face
maxi-mini strat
maximize strength to minimize threats

weakness and threats:

mini-mini strat
least potential..
minimize your weaknesses and avoid threats

limit- 5 options.

because if more than. it's too troublesomel, damo pililian. too many options needed
to be study.

if you compare ang finished traditional swot sa finished corss-swot. makita mo mas
informative ang cross swot na much more informative it is. in a onesimple chart, it
already summarizes the organization or business's current operation and future
plans. and illustrate the connection between internal and external. strength and
weakness to opportunities and threats.

CROSS-SWOT SAMPLE```````
SO STRAT
Introduce healthier options leveraging brand strength and global reach.
Expand into developing markets with tailored products.
Utilize market dominance to introduce packaged drinking water.

ST Strategies:
Maintain market leadership through brand differentiation.
Address water controversy with sustainable practices.

WO Strategie
diversify products through research and development (R&D) for health-conscious
consumers,
Expand into emerging markets with localized offerings.

WT strategies
To combat low diversification, Coca-Cola can innovate new beverage formulations,
including health-focused drinks, to expand its product range and meet shifting
consumer demands.
Mitigate threats from competition and regulatory issues through strategic planning
and sustainable practices.

after na cni, implementation, monitoring, and adjustment:

tailored products;

goods or services that are specifically customized or adjusted to meet the needs,
preferences, or characteristics of a particular market segment or target audience

Direct competition refers to businesses or products that offer similar goods or

services to the same target market, essentially competing for the same customers.
eg. coke and pepsi

Indirect competition, on the other hand, involves businesses or products that may
not offer identical goods or services but still compete for consumer spending
within the same broader market.
e. coca-cola,bottled water, fruit juice

diversify products through research and development (R&D) for health-conscious

consumers,

means to expand or vary the range of products or services offered by a company. new
beverages.

Address water controversy with sustainable practices.

Recycling and Reuse: Implementing water recycling and reuse programs within its
manufacturing and bottling facilities.

Expand into emerging markets with localized offerings.

means introducing products specifically designed to suit the tastes and preferences
of consumers in those regions. It involves creating beverages tailored to local
culture, preferences, and dietary habits, and marketing them effectively to build
relationships and trust with local consumers.
eg. swakto coke sa tyangee and school

1.
It is important not to list strengths as opportunities,
example;
Let's say a company has a strong and experienced team of software developers
(strength), and the market demand for software solutions is growing rapidly
(opportunity). However, it would be a mistake to list the company's strong team of
developers as an opportunity because it's an internal factor. Instead, the
opportunity lies in leveraging the expertise of the team to capitalize on the
growing market demand for software solutions.

2. Let's consider a company operating in the renewable energy sector. An

opportunity for this company could be the increasing demand for clean energy
solutions due to environmental concerns and government incentives.

However, a strategic move designed to capitalize on this opportunity could be for

the company to invest in research and development to develop more efficient solar
panels or wind turbines.

In this example:

The opportunity is the growing demand for clean energy solutions.

The strategic move is the company's decision to invest in R&D to develop advanced
renewable energy technologies.

3.
"While it's crucial not to overemphasize the results of a traditional SWOT
analysis, a Cross SWOT analysis offers a broader perspective. Rather than solely
focusing on internal factors, a Cross SWOT analysis incorporates external insights,
providing a more comprehensive understanding of an organization's position. By
considering both internal strengths and weaknesses alongside external opportunities
and threats, a Cross SWOT analysis offers a more nuanced view, allowing for more
informed strategic decision-making."

SWOT Analysis Perspective:

SWOT as a brainstorming tool, not for strategy selection. simply ga determine ka

lng sang Strentgh, weakness, oppportunity and threats, However, with the transition
to Cross SWOT analysis, a more strategic approach emerges.

ang maxi-maxi strat, maxi-mini strat, mini-maxi, mini-mini strat

Ideas from SWOT are a starting point, not the final strategy.

it doesn't provide a detailed roadmap for action. Instead, it offers insights that
need to be further analyzed and synthesized into a comprehensive strategy.

A comprehensive strategy encompasses a detailed plan of action that addresses

multiple aspects of an organization's operations and goals. By developing a
comprehensive strategy, organizations can align their actions with their long-term
vision, effectively navigate challenges, capitalize on opportunities, and achieve
sustainable growth and success.

STRATEGIC ISSUES

"Strategic issues" refer to critical challenges or opportunities that significantly

impact an organization's long-term goals, direction, or competitive position. These
issues require thoughtful consideration and strategic planning to address
effectively and can have far-reaching implications for the organization's success.

eg. retail company faces a strategic issue of declining sales in its flagship
product category due to changing consumer preferences.

On the other hand, an "issue" can refer to any problem, concern, or matter that
requires attention or resolution, regardless of its strategic significance. Issues
can vary in scope and impact, ranging from day-to-day operational challenges to
broader strategic concerns.
example.
a temporary power outage affecting the office building. While resolving the power
outage is necessary to resume normal operations, it does not significantly impact
the company's overall strategic direction or competitive position in the market.
kwan nlng if, dugay dugay gd maayos, then, maga affect gd sya sympre. Need ang care
and attention sng High level of Management

An example of a strategic issue arising from external changes or disruptions is the

emergence of new technology in the automotive industry. With the rise of electric
vehicles and autonomous driving technology, traditional automakers face strategic
challenges in adapting their business models, investing in research and
development, and retooling manufacturing processes to remain competitive in the
evolving market landscape

FLOW of STRATEGIC ISSUE

"Once an organization conducts an analysis of both its internal strengths and
weaknesses as well as the external opportunities and threats it faces. pinpoint key
challenges, opportunities, and potential obstacles that could impact its long-term
success.

it utilizes the SWOT framework. This framework organizes the findings into four
categories: Strengths, Weaknesses, Opportunities, and Threats.

From there, the synthesis and derivation of strategic issues occur. This process
involves distilling OR EXTRACT the insights gained from the SWOT analysis into
actionable strategic challenges or opportunities.. Organizations may have multiple
strategic issues, Not all identified issues will have equal importance or urgency.
but they typically prioritize them and focus on the most critical ones. Once
strategic issues are identified and prioritized, they become the main focus of
strategic planning. This means that all planning efforts revolve around tackling
these key challenges or opportunities to ensure the organization's future success.

They change because the world around the organization changes – competitors do new
things, technology advances, and the organization itself evolves.
Given the dynamic nature of strategic issues, organizations must regularly review
and reassess their strategic priorities to ensure they remain relevant and
responsive to changing circumstances.So, staying aware and adapting is key to
success.

CONCLUSION

"In understanding the intricate dynamics of strategic planning, it's akin to the
game of chess, as Chess master Bruce Pandolfini has highlighted the parallels
between business strategy and strategic gameplay. Just as in chess, businesses must
strategically navigate their environment, weighing moves and anticipating
opponents' reactions. This transition from the abstract concept to practical
application finds its footing in the structured analysis provided by frameworks
like SWOT.

The SWOT framework serves as a structured tool for evaluating the internal
strengths and weaknesses of an organization, as well as the external opportunities
and threats it faces. Components of the SWOT analysis, such as identifying
strengths (S), weaknesses (W), opportunities (O), and threats (T), provide a
systematic approach to understanding an organization's strategic position.

Moreover, the synthesis of strategic issues emerges from this analysis, where
critical challenges and opportunities are identified. These issues become the focal
points of strategic planning, guiding the development of strategies to address them
effectively. Within the SWOT framework, strategic options such as SO (Strengths-
Opportunities), WO (Weaknesses-Opportunities), WT (Weaknesses-Threats), and SW
(Strengths-Threats) provide avenues for leveraging strengths, mitigating
weaknesses, capitalizing on opportunities, and addressing threats.

By integrating the components of SWOT and Cross-SWOT frameworks, organizations can

systematically identify strategic issues, formulate effective strategies, and
navigate the complexities of their competitive landscape with precision and
foresight."