strategic analysis and method

• Intuitive thinking and Strategic analysis are two basic kinds of thinking processes or systems at work when we are reasoning, passing judgments, or making decisions. and these are also called system 1 and system 2
• Facione (2013, 16) He Describes strategic analysis (which he refers to as System 2) as the system or process of thinking that is "more deliberate, reflective, computational, and rule governed, whose cultivation or development is the one best catered to by the various critical thinking skills and dispositions”.
• What are the 5 Sequential Stages in Strategic Analysis?

  1.    Identification of the problem

  2.    Obtaining necessary information

  3.    Production of possible solutions

  4.    Evaluation of such solutions

  5.    Selection of a strategy for performance.
• SWOT analysis was conceived originally to aid decision-maker in the areas of business and industry.
• what is the meaning of SWOT?

  Strengths, Weaknesses, Opportunities, and Threats
• Strengths refers to the internal initiatives that are performing well.
• weakness are areas that needs to improve to remain competitive.
• opportunities it is the results from the existing strengths and weaknesses.
• threats anything that can negatively affect the success of your goals.
• PEST Analysis Examines the effects of relevant external factors, or the macroenvironmental factors on what is being decided on.
• what does PEST means Political, Economics, Social, and Technological
• Political includes the legal laws and practices, or how the government can affect the decision-making
• Economic includes financial resources and value of money in relation to interest rates and inflation
• Social includes demographics (population and distribution according to income and others) and culture
• Technological includes current advancements in technology like the Internet, computers, and popular gadgets.
• Cost-benefit Analysis (CBA)

  Also called as Benefit-cost Analysis (BCA) is a systematic method or process of calculating the strengths (benefits, advantages) and weaknesses (costs, disadvantages) of each of the alternative solutions to a given problem in monetary values.
• Cost-effectiveness Analysis (CEA) is a method used to compare the cost and outcomes of different intervetions or treatments.
• Subjective Expected Utility (SEU) is a way of making decisions based on what you think might happen.
• Intuitive thinking is done when one needs to arrive quickly at a judgment. Intuitive thinking is usually associated with thinking that makes use of heuristics.
• Strategic analysis is logical and follows a series of steps.
• Heuristics These are mental shortcuts or thinking maneuvers that enable the decision maker to make quick judgments, evaluations, or decisions, often by simplifying otherwise difficult problems or tasks.
• what are the two types of heuristic? Deliberate heuristics and

  Intuitive heuristics
• Deliberate heuristics heuristics that are intentionally used
• Intuitive heuristics heuristics unintentionally used
• Satisficing Heuristic This heuristic is at work when we stop our deliberation when we come to an alternative that is good enough to satisfy our objectives.
• Risk-Aversion Heuristic This heuristic is at work when we make judgments or decisions or assess the probability of the occurrence of outcomes.
• Loss-Aversion Heuristic when we make judgments on the basis of the belief that avoiding losses are preferable to making gains.
• Availability Heuristic is when we rely on the first thing that comes to our mind to make decision.
• Association Heuristic judge the likehood of somehting happening based on what it reminds us.
• Affect Heuristic is when we rely on our immediate emotional reactions.
• Simulation Heuristic

  It happens when decisions are made on the basis of how we imagine various scenarios will happen.
• Similarity Heuristic

  It happens when decisions are made on the basis of a belief that what happened to someone else with whom we have certain similarities will happen to us as well.
• Anchoring-and-Adjustment Heuristic

  It happens when decisions are made on the basis of using a number or a value as a starting point, serving as our "anchor," which we later on adjust to a level that we find acceptable.