Strengthening Local Network
Strengthening Local Network
LOCAL NETWORK
Group - 2
WHAT IS NETWORK?
■ A network is a group composed of people who come into occasional
contact but lack a sense of boundaries and belonging (Macionis, 2012).
Some scholars claim that networks are nonhierarchical, value-free, and
structure-loss organizations, and that they are composed of people
working on similar tasks without necessarily knowing each other. This is
illustrated by social networking sites such as Facebook, Twitter.
Instagram, etc.
■ A social network is a social structure comprised of individuals joined by
a particular pattern of links or relations, Social networks are indicative of
a person or an organization's relations, membership, links. and
connections. It is noteworthy that these systems serve a role in the
attainment of the goals of the society. Through networks serving as media
for the spread and exchange of ideas, people get connected, get updated,
and become aware. Furthermore, social networks act as social support
systems that provide people information and guidance in times of need.
MEANING OF STRATEGIC
ANALYSIS AND INTUITIVE
THINKING
■Strategy (from Greek OTраTпуia stratégia, "art of troop leader: office
ofgeneral, command, generalship") is a general plan to achieve one or
more long-term or overall goals under conditions of uncertainty. In the
sense of the "art of the general". which included several subsets of skills
including military tactics, siege craft, logistics, etc., the term came into
use in the 6th century C.E. in Eastern Roman terminology, and was
translated into Western vernacular languages only in the 18th century.
From then until the 20th century, the word "strategy" came to denote "a
comprehensive way to try to pursue political ends, including the threat or
actual use of force, in a dialectic of wills" in a military conflict, in which
both adversaries interact.
■ Strategy is important because the resources available to achieve goals are usually
limited. Strategy generally involves setting goals and priorities, determining actions to
achieve the goals, and mobilizing resources to execute the actions. A strategy describes
how the ends (goals) will be achieved by the means (resources). Strategy can be
intended or can emerge as a pattern of activity as the organization adapts or competes
within its environment. It involves activities such as strategic planning and strategic
thinking.
■ Henry Mintzberg from McGill University defined strategy as a pattern in a stream of
decisions to contrast with a view of strategy as planning, while Henrik von Scheel
defines the essence of strategy as the activities to deliver a unique mix of values, that is,
choosing to perform activities differently. On the other hand, Max McKeown (2011)
argues that "strategy is about shaping the future" and is the human attempt to get to
"desirable ends with available means". Dr. Vladimir Kvint defines strategy as system of
finding, formulating, and developing a doctrine that will ensure long-term success if
followed faithfully."
■ Strategic Analysis is a method wherein one studies the environment
thereby conducting a business strategy. It is a way of assessing possible
benefits, dangers, or predictable outcomes that the business may
encounter. It is an ability to plan for the future. It's the capacity to prepare
strategies and conjure ideas that will both cope with changing
environments and consider the various challenges that lie ahead.
Candidates that possess strategic thinking skills will be seen as top
talents, and it's a quality that most managers, directors, political leaders
and executives usually possess.
■ Intuitive thinking is the ability to take what you may sense or perceive
to be true without thorough knowledge or evidence, appropriately
considering it as part of one's final decision. It is basically the kind of
thinking that helps you understand reality in the moment, without logic or
analysis. There's no language involved in it either. It's entirely about signs
and sensations. Most of the time, it goes against whatever we might think
of as "rational". The word "intuition" comes from the Latin verb intueri
translated as "consider" or from the late Middle English word intuit
which means "to contemplate".
KEY COMPONENTS IN
STRATEGIC THINKING
1. SWOT Analysis
2. Pest
3. Porter's Five Forces
4. Four Corners
1. SWOT- (Strength, Weakness, Opportunities, and Threats)
■ It a simple but widely used tool that helps in understanding the strengths,
weaknesses, opportunities and threats involved in a project or business activity. It
starts by defining the objective of the project or business activity and identifies the
internal and external factors that are important in achieving that objective.
Strengths and weaknesses are usually internal to the organization, while
opportunities and threats are usually external. Often these are plotted on a simple
2x2 matrix.
2. PEST Analysis
■ is a scan of the external macro-environment in which organization exists. It is a useful tool for
understanding the political, economic. an socio-cultural and technological environment that an
organization operates in. It can be used for evaluating market growth or decline, and as such the
position, potential and direction for a business.
★ Political factors – These include government regulations such employment laws,
environmental regulations and tax policy. Other political factors are trade restrictions and political
stability.
★Economic factors – These affect the cost of capital and purchasing power growth,
Interest of an organization. Economic factors include economic 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.
3. Porter's Five Forces Analysis
■ evaluates the business power, strengthens the competitive stance and flow of how the
business will advance. Strategic analysis usually employs Porter's Five Forces to give an
insight if a new product or service is feasible or not.
1. Supplier Power is an evaluation on how convenient it is for the suppliers to raise the
price of their goods/services. It is therefore driven by the number of suppliers in every aspect.
2. Buyer Power gauges on how comfortable it may be for buyers to dive prices down
which is subject to the number of potential buyers, the significance of every buyer, and the
value of the products/ commodities being transferred from one supplier to another.
3. Competitive Rivalry is where the thrill comes in as the number of competitors play
in the market that will offer different products which may diminish the attractiveness of some
products in the market.
4. Threat of Substitution is made when buyers purchase substitute products due to the
spiral height of a price increase. When it happens, it decreases the power of suppliers and the
attractiveness of the product in the market.
5. Threats of new entry will take place due to the existence of new entrepreneurs unless
the older businesses have a strong market portfolio that will block the buyers from
purchasing to the new entrants.