In the models reviewed, almost in general, the post-mission diagnosis is located; in the designed model it is in first place and this is because in security and protection organizations it is essential to know the events of the macro and micro environment and their manner of manifestation, which will allow knowing how they can influence values of the members of the organization and in the potentialities necessary to fulfill the mission and achieve the vision and in relation to this establish the necessary values to face such events without negatively impacting the belief system and basic values of the members of the organization.
Likewise, if the strategic position of the organization is known from the beginning, the proactivity necessary can be guaranteed to avoid possible surprises. The analysis is carried out with the objective of establishing the position in which the organization finds itself, that is, its internal capacities and the facts or events that it will have to face, which facilitates establishing the intensity of the effects of said impacts. The following steps are carried out at this stage:
Strategic diagnosis
The strategic diagnosis has three levels; the diagnosis of the macroenvironment or global, the microenvironment and, finally, the internal diagnosis of the organization.
In all the models studied, the diagnosis step is present and is one of the essential inasmuch as it promotes knowledge of threats, opportunities, strengths and weaknesses, and for this the use of internal and external factors evaluation matrices has been standardized. SWOT, however, in studies carried out shows that the variables and procedures of these matrices are not sufficient to define a reliable strategic position. Based on the foregoing, other variables are put to your consideration, which in our opinion improves the objectivity of the diagnosis.
The forces of both the macro and microenvironment and the internal factors are manifested differently for the different organizations, that is, what is a threat to one, to another it can be an opportunity, hence the first variable is defined as the form of manifestation of that external force or internal factor, it does not matter if a priori you think it is a threat or weakness, then the impact that this form of manifestation has for the organization is evaluated and then the response capacity to take advantage of mitigating said impact; When these three elements are known, you are in a position to determine whether you are in the presence of a threat, opportunity, strength or weakness (the procedure is explained in detail when discussing the impact effects evaluation matrix).
To achieve a better determination of these factors, it is proposed to make the diagnosis of the macro, microenvironment and internal.
Diagnosis of the macroenvironment
All organizations can be affected, to a lesser or greater degree, by the forces of the macroenvironment, that is, the political, legal, economic, technological and social forces.
Companies will always occasionally try to influence legislation or, through R&D, set new technological directions or changes to strengthen their strategic position or discover new opportunities.
The forces of the macroenvironment are generally not under the direct control of companies, therefore, the purpose of strategic management is to facilitate the organization to act effectively in the face of threats and restrictions in the environment and take advantage of the opportunities that emanate from it.. To achieve this purpose, strategic leaders must identify and analyze the way in which these macroenvironmental forces manifest themselves in relation to the company.
Analysis should be done for both the current and future macroenvironment. For the analysis of the current macroenvironment, what is happening now and for the future is assessed, it is necessary to go to forecasts and scenarios.
The forecasts are currently valid. They can show the main trends and are useful with a certain reservation. However, although the strategic direction uses them, it should not rely only on forecasts, but also on future scenarios to make a forecast of what could happen in the future.
Techniques for forecasting (see quantitative methods for decision-making in administration).
|
Quantitative methods |
Qualitative methods |
| • Analysis of time series. | • Delphi. |
| • Historical analysis. | • Brainstorming. |
| • Moving averages. | • All techniques with experts. |
| • Linear regression. |
1. Political-legal forces. They are generally given by trends in laws, regulations, government provisions, etc., example of this is the set of laws and regulations of the United States government against our country.
2. Economic forces. They have a significant impact on the operations of a company.
a) Gross Domestic Product. Refers to the total annual value of production of goods and services of a nation. A sustained moderate growth of the Gross Domestic Product, generally, produces a healthy economy in which businesses find an increasing demand for their productions due to the growth of consumer expenses, opportunities will abound both for established businesses and for new ones; A decrease in the Gross Domestic Product normally reflects the reduction of consumer expenses and, therefore, lowers the demand for productions. When the Gross Domestic Product decreases in two consecutive quarters, the national economy is considered in recession. During these periods, competition increases dramatically, profitability suffers and businesses lose growth rates.although for some companies these situations offer opportunities.
b) Interest rates. Short or long term interest rates significantly affect the demand for products and / or services. Short-term interest rates, for example, are beneficial to loan providers, while long-term loans are beneficial to other businesses. Interest rate levels greatly affect strategic decisions. High rates normally discourage business plans to obtain credits in order to carry out technological transformations, while low interest rates are more contributory to obtain capital from expenses in mergers and acquisitions, although some companies and entire countries receive strong threats of this.
c) Inflation rates. High inflation rates are generally restrictions for companies, they stimulate the variation of costs in business. Increasing inflation rates will restrict business growth plans. Of course, inflation may offer opportunities for some companies, for example, oil companies benefit during periods of inflation if prices rise faster than the cost of exploration.
d) Value of the dollar. With the dollarization process that has taken place in many countries of the world as a consequence of the application of neoliberal policy, evidently it has become a key factor in the analysis of the economic forces of the macroenvironment. When the value of the dollar grows with respect to other currencies, companies have to face the threat of receiving lower profits than planned, the opposite occurring if the value of the national currency is above the dollar.
3. Technological forces. Technological forces include scientific development and innovation that provide opportunities, threats, or constraints for companies. The rate of technology change varies considerably from one sector to another. In electronics, change is fast and constant, but in furniture making, change is slower and more gradual. Changes in technology can affect a firm's operations and its products and services. Recent advances in robotics, computing, lasers, satellites, fiber optics, and other related areas have provided significant opportunities for development of production or services in disparate organizations. Advances in computing, for example, have helped perform many tasks at low cost and high levels of customer satisfaction.From another perspective, technological changes can decimate entire businesses or sectors, from changing demand for one product to another.
4. Social forces. Social forces include the traditions, values, social trends, consumer psychology, and social expectations that have endured for decades and even centuries. Values refer to the concepts that society holds in high esteem, both these and social trends may present themselves as threats, opportunities or restrictions, for example, demographic changes, social expectations, etc.
Diagnosis of the microenvironment
Although the forces of the macroenvironment influence the operations of all companies in general, a more specific group of forces directly influence and powerfully affect the strategic planning of the organization's activities. For the analysis of the micro-environment of the company, the five forces proposed by Professor Michael Porter of Harvard University will be used.
- Threat of the entry of new competitors. Rivalry between existing competitors. Threat of substitute products or services. Power of negotiation of customers. Power of negotiation of suppliers.
These forces may be more intense in organizations where the return on investment is slow and low. The key to effective competition lies in finding a strategic position for the organization where it can influence these five forces, and thus take full advantage of its opportunities and defend itself from its threats, especially when the internal position is dominated by weaknesses.
To adequately formulate strategies requires knowledge and analysis of these five forces, so knowledge of each is necessary.
1. Threats of entry of new competitors. When a new competitor enters a market, its productive capacity expands. Although the market is growing rapidly a new entry intensifies the fight for market share; For this reason, offering low prices and increasing the profitability of the company is a great challenge. The probability that new firms enter a market rests on two essential factors; barriers to entry and expected backlash from competitors.
a) Barriers to entry. High barriers and clear backlash expectations reduce the threat of new companies entering the market. 8 barriers are known that constitute obstacles to enter a market.
- Economy of scale. It refers to the reduction in the cost per unit of a product or service (or an operation, a function to produce a product or service) that occurs with the growth of the absolute volume of production in a given period of time. Considerable economies of scale prevent new inflows by forcing to produce on a large scale, at the risk of a strong reaction from competitors, or to produce on a small scale with its consequent disadvantages of cost growth. Product differentiation. When a firm is established in a market, it generally enjoys strong brands, achieving customer identification and loyalty, based on the differences in its products, so new entrants must use large sums of money and time to overcome that barrier.. Capital demand. The need to invest large financial capital to compete is a third barrier to entry, since large sums of money are needed to produce the goods or services, R&D, advertising, credits and inventories in order to enter a market. Alternative costs. It refers to the costs that clients incur if they alternate their purchases from one firm to another. Changing from an established supplier to a new one implies that the buyer will have to train employees, acquire auxiliary equipment and the need to obtain technological help, therefore many clients are reluctant to alternate, unless the new supplier offers advantages related to the cost. Access to distribution channels. To enter established distribution channels employed by owned firms, a new firm must seduce distributors by taking advantage of price drops, cooperative promotion, or sales promotion. Each of these actions, of course, reduces profits. Existing competitors always have a distribution channel based on a long stay or even exclusive, which means that a new entrant must create a new distribution channel for himself. Cost disadvantages regardless of scale. Established firms must possess cost advantages that cannot be overcome by new entrants, regardless of the size of their economy of scale. These benefits include the right to ownership of the product technology, geographic location, and the learning or experience curve. Government policy. Governments can control entry to certain sectors with license requirements or other regulations.
b) Kickback expectations. The new entry may also be halted if the expectation of the incoming new firm prompts competitors to respond vigorously. These expectations are reasonable if the sector has a history of vigorous backlash to new entrants or if market growth is slow. Kickbacks can be expected if established firms are sector-committed and have set specialized securities that are not transferable to other sectors, or if the firm has sufficient liquidity or production capacity to meet the needs of clients in the future.
2. Intensity in the rivalry of existing competitors in the sector. Entry can be slowed when one or more of the firms in one sector sees the opportunity to improve or increase their position or feels competitive pressures from others. It manifests itself in the form of price cuts, promotional battles, introduction of new products or modification of these, increase or improvement of customer service or guarantees thereof. The intensity of the competitors depends on a number of interactive factors.
- Numerous equal or balanced competitors. One factor is the number of companies in the sector and how balanced they are in terms of size and power. In sectors that are dominated by one or a few firms, the intensity of competition is less since the dominant firm always acts as the price leader, but the sector that contains few firms and is equivalent in size and power is more prone to high competition. Since each firm will fight for dominance, competition is also likely to be intense in sectors with large numbers of firms, provided that some of those firms believe that they can make moves without being noticed by competitors. Slow market growth. Firms in a slowly growing market are more likely to face high competition than firms located in a fast growing sector. In the slow growing sector, increasing the market share of one firm depends on taking it away from another. High fixed or storage costs. Companies with high fixed costs are under pressure to operate at levels close to the ability to spread total fixed costs over more production units. This pressure often leads to price cuts, for that reason the competition intensifies. This is also valid for firms that have high storage costs since profits tend to be low. Absence of differentiation or alternative costs. When the products are differentiated, the competition is less intense because the buyers have preferences and loyalty to private sellers. Alternate costs have the same effect, but when products or services are less differentiated, purchasing decisions are taken into account in relation to price and service, resulting in greater competition. Capacity for growth in large proportions. If economies of scale stipulate that production capacity should be added only in large increments, then capacity additions will guide the company to overcapacity in the sector and thus lead to price drops. Various competitors. Companies that are diverse in origin, culture and strategies will always have different goals and strategies to compete. Those differences mean that competitors will find it difficult to agree on the rules of the game. Companies with foreign competitors are particularly competitive. High strategic risks. The rivalry will be volatile, if firms are at high risk of succeeding in a particular market. High exit barriers. Exit barriers can be economic, strategic or emotional factors that keep companies in a sector, even if they have a slow return on investment or even losses. Examples of exit barriers are the fixed values that do not have alternative uses, work agreements, strategic cooperations between strategic Units of activities of the same company, which prevents departure due to pride or pressure to reduce adverse economic effects in a geographic region.
3. Pressure of substitute products. Firms in one sector must be in competition with other firms in other sectors that manufacture substitute products, which are alternative products that meet similar customer needs, but differ in specific characteristics. Substitutes cap the prices that firms can guard.
4. Bargaining power of the buyers. Buyers of the productions of one sector can lower the profits of that sector, by negotiating for high quality or more services, putting one company in front of the others. Buyers are powerful in the following circumstances.
- Buyers are focused on buying large volumes relative to total sector sales. If a group of buyers acquires a substantial proportion of the sales of a sector, then these will wield considerable power over prices. The products that customers acquire represent a significant percentage of the buyers' costs. If the products represent a large portion of the buyers' costs, then the price is an important issue for the buyers, therefore, they will buy at a favorable price and make selective purchases. The products that customers buy are standard or undifferentiated, In such cases, buyers are likely to pit one seller against others. Buyers face alternative costs.Alternative costs tie buyers to a seller. Buyers make low profits. Low profits put pressure on buyers to lower purchasing costs. Buyers may enter into backward integration (become their own suppliers). Industry products are not important to the quality of the products or services of the customers. buyers. When the quality of buyers' products is greatly affected by the inputs they buy or purchase, buyers are less likely to have power over the suppliers. Buyers have all the information. The more information buyers have about demand, current market prices, and supplier costs, the greater their purchasing power.Buyers make low profits. Low profits put pressure on buyers to lower purchasing costs. Buyers may enter into backward integration (become their own suppliers). Industry products are not important to the quality of the products or services of the customers. buyers. When the quality of buyers' products is greatly affected by the inputs they buy or purchase, buyers are less likely to have power over the suppliers. Buyers have all the information. The more information buyers have about demand, current market prices, and supplier costs, the greater their purchasing power.Buyers make low profits. Low profits put pressure on buyers to lower purchasing costs. Buyers may enter into backward integration (become their own suppliers). Industry products are not important to the quality of the products or services of the customers. buyers. When the quality of buyers' products is greatly affected by the inputs they buy or purchase, buyers are less likely to have power over the suppliers. Buyers have all the information. The more information buyers have about demand, current market prices, and supplier costs, the greater their purchasing power.Buyers can enter into a backward integration (they become their own suppliers). The products of the sector are not important for the quality of the products or services of the buyers. When the quality of buyers' products is greatly affected by the inputs they buy or purchase, buyers are less likely to have power over the suppliers. Buyers have all the information. The more information buyers have about demand, current market prices, and supplier costs, the greater their purchasing power.Buyers can enter into a backward integration (they become their own suppliers). The products of the sector are not important for the quality of the products or services of the buyers. When the quality of buyers' products is greatly affected by the inputs they buy or purchase, buyers are less likely to have power over the suppliers. Buyers have all the information. The more information buyers have about demand, current market prices, and supplier costs, the greater their purchasing power.When the quality of buyers' products is greatly affected by the inputs they buy or purchase, buyers are less likely to have power over the suppliers. Buyers have all the information. The more information buyers have about demand, current market prices, and supplier costs, the greater their purchasing power.When the quality of buyers' products is greatly affected by the inputs they buy or purchase, buyers are less likely to have power over the suppliers. Buyers have all the information. The more information buyers have about demand, current market prices, and supplier costs, the greater their purchasing power.
5. Bargaining power of the providers. Suppliers can reduce a company's profits, preventing it from recovering cost increases by keeping prices stable. The conditions that make providers powerful are:
- If the supply sector is dominated by few companies and is more concentrated than the industry to which it sells its products. Selling to fragmented buyers means that concentrated suppliers will be able to exercise considerable control over prices, quality, and terms of sale, when there are no substitute products. If buyers do not have alternative sources of supply, they are weak relative to existing suppliers. The buyer is not an important client of the suppliers. If a particular company does not represent a significant percentage of the supplier's sales, then the supplier has considerable power. If the industry is a major customer, the supplier's capital will be closely related to that industry,which will cause the supplier to offer reasonable prices, advice in important areas such as R&D, etc. when the supplier's products are important inputs for the buyer's business. If the product is a key element in differentiation, quality, etc., the supplier has great power, when the supplier's products are differentiated or have risen on alternative costs. Differentiated products or alternative costs reduce the buyer's ability to confront one supplier with others. Suppliers face threats or are integrated forward. (you can convert your own clients). If the supplier has the ability and resources to carry out his own production, distribution channels and to market his outputs will gain considerable power over the buyers.advice in important areas such as R&D, etc. when the supplier's products are important inputs for the buyer's business. If the product is a key element in differentiation, quality, etc., the supplier has great power, when the supplier's products are differentiated or have risen on alternative costs. Differentiated products or alternative costs reduce the buyer's ability to confront one supplier with others. Suppliers face threats or are integrated forward. (you can convert your own clients). If the supplier has the ability and resources to carry out his own production, distribution channels and to market his outputs will gain considerable power over the buyers.advice in important areas such as R&D, etc. when the supplier's products are important inputs for the buyer's business. If the product is a key element in differentiation, quality, etc., the supplier has great power, when the supplier's products are differentiated or have risen on alternative costs. Differentiated products or alternative costs reduce the buyer's ability to confront one supplier with others. Suppliers face threats or are integrated forward. (you can convert your own clients). If the supplier has the ability and resources to carry out his own production, distribution channels and to market his outputs will gain considerable power over the buyers.When the supplier's products are important inputs for the buyer's business. If the product is a key element in differentiation, quality, etc., the supplier has great power, when the supplier's products are differentiated or have risen on alternative costs. Differentiated products or alternative costs reduce the buyer's ability to confront one supplier with others. Suppliers face threats or are integrated forward. (you can convert your own clients). If the supplier has the ability and resources to carry out his own production, distribution channels and to market his outputs will gain considerable power over the buyers.When the supplier's products are important inputs for the buyer's business. If the product is a key element in differentiation, quality, etc., the supplier has great power, when the supplier's products are differentiated or have risen on alternative costs. Differentiated products or alternative costs reduce the buyer's ability to confront one supplier with others. Suppliers face threats or are integrated forward. (you can convert your own clients). If the supplier has the ability and resources to carry out his own production, distribution channels and to market his outputs will gain considerable power over the buyers.the provider possesses great power.When the provider's products are differentiated or have been erected over alternative costs. Differentiated products or alternative costs reduce the buyer's ability to confront one supplier with others. Suppliers face threats or are integrated forward. (you can convert your own clients). If the supplier has the ability and resources to carry out his own production, distribution channels and to market his outputs will gain considerable power over the buyers.the provider possesses great power.When the provider's products are differentiated or have been erected over alternative costs. Differentiated products or alternative costs reduce the buyer's ability to confront one supplier with others. Suppliers face threats or are integrated forward. (you can convert your own clients). If the supplier has the ability and resources to carry out his own production, distribution channels and to market his outputs will gain considerable power over the buyers.Providers face threats or are integrated forward. (you can convert your own clients). If the supplier has the ability and resources to carry out his own production, distribution channels and to market his outputs will gain considerable power over the buyers.Providers face threats or are integrated forward. (you can convert your own clients). If the supplier has the ability and resources to carry out his own production, distribution channels and to market his outputs will gain considerable power over the buyers.
As can be seen, at one extreme, a company can operate with profits in a sector with high entry barriers, low intensity of competition, among a group of firms, where there are no substitute products, weak buyers and weak suppliers. On the other hand, a company doing business with low barriers to entry, intense competition, various substitute products and powerful buyers or under strong pressure can also achieve an adequate profit. The key, of course, is in the study, analysis and understanding of the sector to establish the strategic position and, consequently, to draw up the appropriate strategies to take full advantage of the opportunities, reduce the impacts of threats and mitigate the weaknesses that allow maintain competitive advantages.
Definition of the organization's external strategic position
After completing the analysis of the macro and microenvironment, all the factors that positively and negatively influence the company and its form of manifestation are known, which may be in the form of threats or opportunities, but the degree of intensity of the impact is not yet known. in which each one is manifested, which allows defining the external strategic position of the same, which means defining whether threats or opportunities predominate.
To establish the external strategic position, the author of this work proposes the External Impact Evaluation Matrix.
Procedure for preparing the External Impact Assessment Matrix.
1. List the form of manifestation of each force or factor of the macro and microenvironment.
2. Evaluate the degree of impact of the form of manifestation of each force or key factor on the organization, assigning it a weighting of: 1 point (Impact without relevance); 2 points (moderate impact); 3 points (Critical or very relevant impact).
3. Evaluate the level of responsiveness that the organization has to protect itself or take advantage of said impact, assigning it a weighting of: 1 point (without control); 2 points (moderate control); 3 points (high control).
4. Determine the intensity of the impact effect of each form of manifestation of the key factors evaluated on the organization, for which the following formula is used
Where IEI (intensity of impact effect) I (intensity of impact) and C (responsiveness or control over impact). Defining the hypothesis "the greater the control over the impact, the lower the intensity of the impact effect".
- If the result of the intensity of the impact effect is 1.5, it means that the effect is average. If the result of the intensity of the impact effect is low than 1.5, it means that the effect is less and therefore it is an opportunity..If the result of the intensity of the impact effect is greater than 1.5, it means that the effect is high and therefore it is a threat.
5. Determine the external strategic position of the organization, for which the formula is used:
The weighted average result is 1.5; therefore if for a PE company it is above that value it means that it has a threatened external position and if it is below it has opportunities. To automate this process, the Strategic Diagnosis software was created.
The internal diagnosis of the organization
The internal diagnosis aims to identify and evaluate the internal capabilities of the organization, that is, its main strengths and weaknesses.
Strengths are key internal factors that favor the fulfillment of the mission, weaknesses are the opposite, that is, key internal factors that hinder the fulfillment of the mission.
To carry out the internal diagnosis, the organization's resources must be evaluated.
Human Resources
It consists of evaluating all the potentials that human resources possess at all levels of the organization and whether they manifest as weaknesses or strengths for the implementation of the strategies and the fulfillment of the mission.
Strategic apex: leaders at this level must establish, inspire and communicate a vision of the organization that addresses the needs and desires of all members at lower levels, which is taken into account.
- Management experience. Time in office. Results obtained. Preparation. Ability to unite and integrate the group. Power in decision making.
Midline: an organization with magnificent leaders at the strategic apex and mediocre at the midline would not be effective in implementing the strategies, the same aspects as the strategic apex are taken into account for its analysis.
Operations core: as this is considered the most important part of the organization, this will take into account:
- Selection and recruitment process. Career planning. Motivation. Commitment to the organization. Training.
Organizational resources: the analysis is carried out by answering the following questions.
- Does the organization have sufficient resources to satisfy the real and potential demand of the market? Is there a correspondence between the resources available to the organization and the objectives that have been set? Does the structure that the organization possesses make the implementation of a strategic management process? Does power in decision-making favor the implementation of a strategic management system? Is the organization's control system effective? Are the traditional values and beliefs of workers compatible with the process of strategic direction to implement?
Physical resources: These are the resources that the organization has for the fulfillment of the mission, to carry out the analysis the following aspects must be assessed.
- Technology, production or service provision capacity, supply costs, geographic location, inventory costs, operating cycle, distribution.
In addition to the above variables, it is recommended to take into account the following aspects:
a) Access to material resources.
b) Advertising.
c) Distribution channel.
d) Automated control systems.
e) Power of decisions.
f) Image and reputation of the organization.
g) Sales services.
h) R&D
i) Purchasing power.
j) Market share.
k) Promotion.
l) Quality.
m) Organizational structure.
n) Distribution.
o) Economy of scale.
p) Others.
Definition of the organization's internal strategic position
After completing the analysis of the internal potential of the company, all the factors that positively and negatively influence its performance and its form of manifestation are known, which may be weakness or strength, but the degree is not yet known. of intensity of the impact in which each one manifests itself that allows defining the internal strategic position of the same, which means defining whether the strengths or weaknesses predominate.
In order to establish the internal strategic position of the company, the author of this work proposes the Internal Impact Assessment Matrix.
For the formation of the matrix three variables are taken into account:
1. List the form of manifestation of each key factor from the internal analysis.
2. Evaluate the degree of impact of the form of manifestation of each key factor on the organization, assigning it a weighting of: 1 point (Impact without relevance); 2 points (moderate impact); 3 points (Critical or very relevant impact).
3. Evaluate the level of capacity that the organization has to mitigate or take advantage of said impact, assigning it a weighting of: 1 point (without control); 2 points (moderate control); 3 points (high control).
4. Determine the intensity of the impact effect of each form of manifestation of the internal key factors evaluated on the organization, for which the following formula is used
Where IEI (intensity of impact effect) I (intensity of impact) and C (responsiveness or control over impact). Defining the hypothesis "the greater the control over the impact, the lower the intensity of the impact effect".
- If the result of the intensity of the impact effect is greater than 1.5, it means that the effect is intense and it is a weakness. If the result of the intensity of the impact effect is 1.5, it means that the effect is average. the intensity of the impact effect is less than 1.5 means that the effect is low and is a strength.
5. Determine the internal strategic position of the organization, for which the formula is used
The weighted average result is 1.5; therefore if for a PE company it is above this value it means that it has an internal position with a predominance of weaknesses and if it is below that it has strengths.
Analysis of the internal and external relationship of the organization and definition of the general strategic position.
Once the internal and external strategic position of the company is known through the evaluation matrices of the effects of the impacts, the general strategic position of the company is established. The SWOT matrix for cross impacts is used for this step. To elaborate said matrix, the key factors evaluated in the internal and external diagnoses of the organization are introduced, that is, the strengths, weaknesses, threats and opportunities. Traditionally, in order to reduce the number of combinations given their exponential growth, the factors that have been determined through the weighting in the evaluation matrices are chosen as predominant, that is, the threats and weaknesses with a classification of 1 point and strengths and opportunities with 4 point ranking; However,In the practical application it has been observed that sometimes a threat of 4 points when evaluating the impact with the other variables, in all impacts the value has been 0 and in other cases a threat of 2 points that is not even had taken into account it has a maximum intensity in various impacts, which, obviously, can lead to a poor evaluation and, therefore, the wrong formulation of the strategies. Detractors of the strategic direction, in general, and of these methods, in particular, point out their subjectivity, recommending that in order to carry out these analyzes, experts should be included with a view to achieving balance and reducing the degree of subjectivity or partiality in the analysis.
After all the factors (threats, opportunities, weaknesses and strengths) have been introduced, each cross-impact is evaluated. The procedure used with the experts in this matrix is to secretly evaluate each impact, assigning it a weight ranging from 0 to 3, assuming that: 0 the impact that has no intensity, 1 the impact that has little intensity, greater intensity 2 and the impact with maximum intensity is assigned 3 points and then the value is defined for each crossed impact through the mean of the values assigned by the experts
Where IC (cross impact), VP (weighted value assigned by each expert), and N (number of experts participating in the vote).
Once the weight of each cross impact has been carried out, the position is defined by adding the weight in each quadrant, defining the strategic position of the quadrant with the highest vote.
This weighted assessment allows focusing attention on those impacts that have a maximum intensity and that are strategic for the organization.
