STRATEGIC BUSINESS ANALYSIS- Midterm Reviewer

CHAPTER 1: INTRODUCTION TO SBA

STRATEGIC BUSINESS ANALYSIS

 involves outcome focused thinking, simultaneously understanding business context, business challenges, and
the complexities of the internal and external environment to frame the scope of the transformation, articulate
the business need/outcome, and shape the agenda for transformation.
 are those actions and decisions made by management while trying to understand the impact of strategic events
like: introduction or development of new product line
 is an essential component of every project or change initiative to ensure outcomes align with the goals and
objectives the entire organization and its departments.

Purpose of business analysis:

 is to identify solutions that meet the need for improvement. Business analysis process offers concepts and
insights into the development of the initial framework for any project.
 It stores the key to guide stakeholders of a project who perform business modeling in an orderly manner.

Role of Strategic Business Analysis

1. Strategic business analysis is critical to achieving improved business results. It helps businesses shift from
strategy to execution by facilitating the development of guiding strategies.

2. It gives the company the ability to articulate and accelerate its change. However, it is carried out as part of a
strategic endeavor that is necessary to achieve the intended business result

3. The strategic initiatives can be thought of as a multi-streamed program or a series of projects that work
together to achieve the targeted business objective.

4. Furthermore, it entails outcome-focused thinking, which entails framing the scope of the transformation,
articulating the business need/outcome, and shaping the transformation agenda while simultaneously understanding
the business context, business challenges, and the complexities of the internal and external environments.

 It concentrates on the “what” and “why” of solution implementation rather than the “how”.

Who performs Business Analyst?

 May be performed by an individual who is responsible for performing the work regardless of the person’s
title.
 Who performs business analysis tasks in the context of programs and projects will be referred to as a business
analyst.

Skillset and Expertise needed for the Business Analysis Role:

 Analytical Skills
 Business & Industry Knowledge
 Communication skills
 Creative & Critical thinking
 Cultural Awareness
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CHARACTERISTICS OF STRATEGIC BUSINESS ANALYSIS

 Long term in nature

-for any business analysis to be strategic in nature, it must have a long term view.

 Focus on external events and activities

-senior managers spend about 60% of their time gathering and interpreting information from outside source
which will significantly improve decision making process.

 Place more emphasis on qualitative matters

-In as much as financial indicators play vital role in shaping the fortune a business entity, attention should also
be given to those qualitative factors that an establishment cannot afford to ignore, else, business failure will
imminent

Advantages of Strategic Business Analysis:

 Monitor and control progress through management accounting controls

 Makes management think in advance
 Optimizes the use of scarce resources

Disadvantages of Strategic Business Analysis:

 Could be expensive in terms of time and money

 Could lead to bottleneck and bureaucracy
 Not so useful in managing crisis

Basis for Strategic Business Analysis

 Corporate Planning
 Structure
 Assets
 Customers
 Differentiators

CHAPTER 2: ANALYSIS TECHNIQUES AND PROCESS

WAYS OF ASSESSING STRATEGIC ANALYSIS TECHNIQUES AND PROCESS:

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1. Internal Factors- it begins within the company or business itself. The analysis of current resource, policies,
process, performance, and capabilities. Resources are manpower, money, machinery, materials and methods
2. External Factors- observing or assessing the external environment should be done in perpetual periodic
manner. may include environmental condition, political or government system
3. Review of Performance- are set of goals and aligned to the set of measurements. Deliverables and projects
must be given time for review.
4. Dynamic concept- analyzing the correlation, significance, and effect of one variable to others. It is so called
“domino effect”

SMART Objective as Analysis Platform

1. Specific- providing clear picture as focus

2. Measurable- quantifiable in form
3. Attainable- achievable in form
4. Realistic- objectives and results are bound into reality
5. Time bound- time is the essence

QUALITATIVE ANALYSIS

1. Focus group discussions

2. Interviews
3. Consumer behavior
4. Open ended surveys

DATA ANALYSIS METHOD

1. Content analysis
2. Discourse analysis
3. Grounded theory
4. Narrative analysis

QUANTITATIVE ANALYSIS STEPS:

1. Validate the data

2. Edit the data
3. Code the data

QUANTITATIVE METHODS:

1. Percentage
2. Frequency
3. Mean
4. Median
5. Mode

WAYS OF PRESENTATION AND ANALYSIS

 Presentation is reporting of both written and oral activity for demonstration of results

LEVELS OF PRESENTATION

 Through immediate superior of boss

 Departmental or Division
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 Top Management Level

SIX CATEGORIES OF ANALYSIS TECHNIQUES

1. Critical Analysis- subjective findings of the analyzer by commenting on the relationship, connection, and
effects of variables in the data evidence
2. Creative Analysis- encourage invention, innovation, enhancement, of unique and existing ideas.
3. Description Analysis- describing the status of facts or data. Foretold narrative or summary of the result
finding is the form of the analysis.
4. Diagnosis Analysis- Uses techniques pertaining to drill down, discovering data, correlations and storing of
data.
5. Prediction Analysis- predicting or forecasting the future results (both quantitative and qualitative)
6. Prescription Analysis- analysis of combining one course to action to another. Fabricating solution to
situational problem

Key Performance Indicator (KPI/KPM)

 measurement of performance
 the room for improvement for employees ’ performances and company ’ s goals

Metrics

 ·The mathematical computation of results.

 ·Usually done in financial analysis, and usually focus on the computation of financial performances and tracks
most areas of the business

Dashboard and Reports

 ·Summary of combination of selected KPI and metrics done in periodic monitoring.

 ·Mostly used as business intelligence and information management

CHAPTER 3: Entrepreneurial Mindset in Corporate Strategic Analysis

Essentials of Entrepreneurship

1. Entrepreneur -is the leader of a business entity. The entrepreneur leads a business by forming a team, systems,
and products to sell. They create business model and business plan.
2. Business Model- is the concept of a successful operation of a company that identifies revenue sources,
customer base, products and financial details. The business model is usually planned by the owner of business
and decision makers.
3. Business Plan- is a vital written document that describes and summarizes the future of businesses

Factors of Production Core Knowledge in Business Scale of Business

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1. Land 1. Customer 1. Micro
2. Labor 2. Competitors 2. Small
3. Capital 3. Product 3. Medium
4. Price 4.Large

5 M’s Ownership of Business

 Money 1. Sole Proprietorship

 Men 2. Partnership (general and limited)
 Material 3. Corporation
 Machines 4. Cooperative
 Methods

1. Business Performance Management System- process of ideas transforming into set of actions through business
performances
2. Business Concept- Ideas that come from the dream of an aspiring entrepreneur.
3. Business Model- approach of answering “how will the business be conducted?
4. Vision- Organization’s future main goals. Answers the question “what do we want to become in the future
5. Mission- It encompasses main strategies that are categorized into a set of approaches that particularly translate
into actions.
6. Goal- Attainment of a dream or plans
7. Core Objectives- Primarily focused attitude that the entrepreneur wants to implement in the organization as a way
of life
8. Objectives- the set goals of an organization that simplify and augmented the goal into set of actions.
9. Plans- blue print of set activities which includes strategies and goals
10. Practices- Reflect as the window of the soul of strategic plans
11. Policies- main course of plan
12. Procedures- manners or series of actions that were summarized into written actions that address how to do
prescribed tasks and limitations
13. Process- steps to achieve particular goals and objectives
14. Guidelines- rules and principles in accomplishing a task or an activity
15. Conditions- possible circumstances that may affect the quality, appearance, event, and outcome.

Before Planning Phase

1. Revisit past performance and factors that affect the previous performance.
2. Conduct environmental scanning and/or SWOT analysis.
3. Perform competitors check and/or benchmarking.
4. Brainstorm with the key employees who contributes to the result of the performance.
5. Assign employees who will be part of an activity that aims to set strategies or plans.

During Planning Phase

1. Strategies must be aligned to support vision, mission and guiding principles.
2. Plans should integrate SMART objective principles in setting strategies.
3. Set strategies with a responsible person, agenda, materials needed, cost or budget, timeline, other resources and
flow through.
4. Strategies that are effective may be retained if still applicable to the current scenario
5. May invite expert employee or consultant from outside.
6. Propose the plan and other strategies to the top management or owners while using the cost benefit analysis or other
theoretical analysis
7. Make sure the plan / strategy is feasible prior to the approval.
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8. Performance measurement or KPI should be part of the analysis as reportorial requirement

After Planning Phase

1. Periodically monitor the performance vis-à-vis the set goals.
2. During the monitoring of implementation of plan/strategy, conduct corrective actions that will redirect set goals.
3. Leadership is vital in the implementation of strategies .
4. The strategies and plans should be properly communicated to the employees of the organization.
5. After successfully reaching the goals, celebrate the result

Benefits of Analysis in Business

 Save time, money, effort, and other resources
 Open opportunities and new insights.
 Balance the benefits on the side of stakeholders.
 Create a customer driven strategy
 Stimulate the active participation of employees

The Core Skills of Business Decision Makers and Practitioners:

 Strategic and Creative Thinking
 Analytic Thinking
 Good Communication
 Leadership, ethical behavior, and word ethics
 Techie and Innovative

ROLES
 Entrepreneur - Enabler, gamer changer, visionary, steward, leader, socialist, economist, philanthropist, profit
thinker, business opportunist, goal digger
 Management- Missionary, problem solver, leader, motivator, controller, planner, organizer, strategic maker,
economist, socialist, profit driver.
 Specialist- Planner, technicist, expert, detailer, tactical person, data driven provider, first hand wanderer,
researcher, tester, scientist.

Professor Jenny Rafael San Juan- "Each of us is part of the whole"

Departmental Business Units as Core Function

1. General Management and Executive
-Overall management of business.Act as the prime care taker or "Shepherd of the business"
2. Finance
-Safeguard the financial standing of company, ensuring profit as best output
3. Operation
-Implement business activities that will produce outputs and outcome that pertains to deliverables such as
sales, and other manpower productivity results
4. Human Resource
- Capitalize human as the greatest asset of the organization and implementor of all business activities
5. Marketing
-Create customer, sustain product life cycle, and product growth through strategies
6. Production
-Ensure fabrication of products to be sold which is based on organization's goals.
7. Research and Development
-In charge of the research and development of products to sell to community.
8. Information Technology
-Responsible for structural design, troubleshoot and installation of information technology and materials
9. Logistic/ Supply Chain
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-Practice logistics warehousing, handling, and transporting of goods
10. Security
-Safeguard the company's resources and serves as protection of assets, manpower and customers.
11. Risk
-Calculate and forecast risk process and circumstance such as measures, assessment, and relevant actions

CHAPTER 4: OPERATION DEPT STRATEGIES AND ANALYSIS

Operations management (OM)

 the process of running a business in accordance to the set of standards and compliance set by the operations
personnel and other planners from different departments of a business.

OM personnel
 Uses resources like money, men, machine, materials, and methods.
 Objectively organizes all related business through strategies and analysis.

Some positions in the operations department:

 Operations manager
 Regional manager
 Area manager
 District manager
 Branch/store manager
 Supervisor
 Team leader
 Specialist
 Assistant
 Clerk

Production of goods:
 The fabrication of raw materials, combined with efforts of people, machine, and other resulting in finished
products.
 One of the core activities in business.
 Done in a factory, restaurant’s kitchen, laboratory, port, garage, and similar locations.

Things to consider in making decisions about production:

 Geographic location
 Political stability
 Currency and inflation
 Taxes and regulations
 Raw materials advantages
 Labor-cost/regulations/availability
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 Power- structure/ports/airports supply chain management, and;
 Know -how/engineering/machinists

Different types of production according to Will Kenton (2020):

1. MTS – make to stocks
 A conventional generation procedure based on request figures.
 Best utilized when there is unsurprising demand for items (e.g. flowers during Valentine's Day, graduation
toga).
 Can be tricky when the demand is troublesome to anticipate based on the customers' order or requirements.
 Do not utilize with an item that has an unusual commerce cycle, or else MTS can lead to overstock status and
decreased profit margin.

2. MTO- make to order

 Permits customers to order items according to their needs and preference.
 Some examples are customized computer, garments, and some kinds of food that will only be prepared and
cooked once ordered ahead of days or time before the pick-up.
 There is a possibility of higher cost compared with MTS (goods produced per batch).

3. MTA- make to assemble

 A combination of MTS and MTO.
 Companies stock basic parts based on demand predictions, but do not assemble them until customers place
their order.
 MTS feature: subparts are already in stock.
 MTO feature: can be customized according to customer preference.
 Some examples are ordering food in a restaurant or fast-food chain like Subway.

4. JIT- just in time

 The father of JIT is Taiichi Ohno.
 JIT was first applied at the Toyota manufacturing plant.
 Also known as lean manufacturing or lean production.
 Focuses on producing exactly the amount you need at exactly the time your customers need it.

PRODUCTION OF GOODS RATIO ANALYSIS (PGRA)

 FORECASTING THE FINISHED PRODUCT OUTPUT/OUTCOME OF EQUIPMENT, MACHINES, OR
TOOLS DURING THE PRODUCTION.

Manpower Contribution Analysis

 People are the greatest asset of an organization. Workers sustain the business. Hiring of employees signifies
the development of a company because it gives jobs and income for employees and their family.

Funnel performance criteria:

 The process of combining manpower performing tasks with the help of technology.
 Perfecting results and producing expected outputs would easily be achieved by the combination of workforce
skills and application of technology.

MANPOWER CONTRIBUTION ANALYSIS (MCA)

 IS MEASURING THE PRODUCTIVITY OF MANPOWER TO PARTICULAR TASKS ASSIGNED TO
THE WORKER.

SPACE PRODUCTIVITY ANALYSIS

 Space signifies opportunities for investment, whether for selling, operating, or advertising.
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 Space is the venue of products for display, advertisement to present, machine and equipment to work.
 Every space has value and number. How much it helps a business make money (value), and how much it costs
(number). "Physical evidence" is a component in the marketing mix, representing tangible aspects of a business
that contribute to its operation and sales.

 Space productivity is essential for allocating resources effectively and ensuring the attainment of business
goals and it aids in making informed decisions regarding space utilization.
 Evaluating space productivity involves considering factors like return on investment, cost, and overall business
goals.

1. Space- Normally a specific real estate property is measured by square meter (sqm). Every sqm must be
productive. It may generate sales or operating activities.
2. Gondola space- In retail business, this is said to be the free-standing fixture or storage where goods are
displayed. Gondola is made of steel or wood that products could be displayed both vertically and horizontally.
3. Garment racks- is a standing fixture where clothes are displayed. Some types of this include one-way rack,
two-way rack, tri-way free-standing rack, four-way rack, rounder, hanging rack, and fold out.
4. Table racks- standing fixture intended to display merchandise such as food, clothes, toys, decorations, and
other goods.
5. Wall Space- is also made of wood and steel where goods could be displayed on the wall. Wall racks have
shelves where merchandise is displayed.
6. Machine, Equipment, Tools and other fixtures Space- used in operating activities such as fabricating goods,
doing reportorial presentation, and other related activities
7. SEATING CAPACITY- seating accommodation of customers in a particular store or branch
8. HYBRID SPACE- mixture of floor space, gondola-shelves, wall space, seating capacity, and operating
equipment/machine. All areas will quantify the result

COMMUNICATION STRUCTURE AND ANALYSIS

 Communication makes transactions successful. The world is full of sounds, words, and languages. Corporate
structure in communication is classified into reading, writing, listening, and speaking

Business communication
 is the system of communicating strategies to discuss and implement while getting the stakehoider's
perspectives such as the customers.

2 MAJOR COMMUNICATIONS:
1. internal communication
2. external communication

Gantt Chart as Analysis

 The Gantt Chart was introduced by Henry Laurence Gantt. It is a tool in project management used for
organizing workload in planned schedule and activities.
 Gantt Chart carefully analyzes the activities and harmonizes it based on the execution and depending on the
time.
 Time is gold

Critical Path Method (CPM)

 CPM is a technique in the process of project management that identifies the critical and non-critical activity or
task to perform.
 It usually prevents problems and solves bottlenecks during the implementation of tasks.
 The authors of CPM are James Kelly of Remington Rand and Morgan Walker of DuPont.

Project Evaluation Review Technique (PERT)

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 PERT is a project management tool that enable planners to identify scheduled dates of activities and individual
tasks based on planned timeline. PERT Charts were used by the U.S. Navy's Special Projects Office in 1957.
 purpose of using the PERT is to guide the project of Polaris nuclear submarine.

According to Corporate Finance Institute, PERT has four kinds of time estimates used in project management. These
include:
1. Idealistic time - The slightest sum of time to complete a task
2. Pessimistic time - The greatest sum of time to complete a task
3. Most likely time - Expecting there are no issues, the finest time to complete a task
4. Expected time - Accepting there are issues, the most excellent assessment of how much time will take to complete a
task

Environmental Management
 According to DENR, the Environmental Management Bureau, and the Environmental Compliance Assistance
Center, here are the salient Philippine laws that are applied to the environmental:
1. Republic Act 9003 Ecological Waste Management Act of 2000 - the law mandates orderly, comprehensive
and biological strong squander administration program that guarantees assurance of open well-being and
environment.
2. Republic Act 9275 Philippine Clean Water Act of 2004 - this ensures that the country's water bodies are free
from contamination from land-based sources.
3. Republic Act 6969 Toxic Substances, Hazardous and Nuclear Waste Control Act of 1990 - to keep the
discussion about the National Air Quality guideline that sets values for the criteria of poisons in the country
and minimizes the conceivable related impacts to the economy.
4. Presidential Decree 1586 Environmental Impact Statement (EIS) Statement of 1978 - directly forbids the
importation, fabrication, preparation, deal, dispersion, utilization and transfer of chemical substances that may
harm the health of people.

 EM is management of business taking into consideration the effect of decisions that respond to the environment
by designing environmental process and systems.

FACILITIES MANAGEMENT
 Creating good atmosphere in the workplace is one of motivation of employees and customers to patronize the
company.
 integrated management of place, people, technology, and process. The effect of FM is to guarantee safety,
efficiency comfort, and functionality of the place, people, technology, and process,

According to Aleks Sheynkman (Director of Engineering, SpaceIQ), the FM has four main functions.
1. Supporting People
2. Establishing Process
3. Facilities upkeep and improvement
4. Technology integration

PROJECT MANAGEMENT
 The forefathers of project management are Henry Gantt (the father of planning and control techniques) and
Henri Fayol (creator of five management functions).
 Project management is the process of successfully achieving goals by specified time and criteria through
managing tasks of team.
 Plan, People, Process, Power
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