Republic of the Philippines

State Universities and Colleges

GUIMARAS STATE UNIVERSITY
McLain, Buenavista, Guimaras
__________________________________________________________________

PA 206
ORGANIZATION AND MANAGEMENT

PLANNING: STRATEGIES TACTICAL AND ORGANIZATIONAL

Submitted to:

WILSON F. TOSINO, PhD, DMPM

Professor
Guimaras State University

Submitted by:

RONA MAY BEATIZULA

Master of Public Administration

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 Republic of the Philippines
State Universities and Colleges
GUIMARAS STATE UNIVERSITY
McLain, Buenavista, Guimaras
__________________________________________________________________

Learning Objectives:
At the end of the topic, the students should be able to:
Analyze the importance of SWOT Analysis in strategic planning,
Discuss the different parts of the SWOT Analysis or TOWS Matrix,
Explain the turnaround and retrenchment strategy.

Introduction:
Organizational planning is the process of defining a company’s reason for
existing, setting goals aimed at realizing full potential, and creating increasingly discrete
tasks to meet those goals.
Each phase of planning is a subset of the prior, with strategic planning being the
foremost
There are four phases of a proper organizational plan: strategic, tactical,
operational, and contingency. Each phase of planning is a subset of the prior, with
strategic planning being the foremost.

SWOT ANALYSIS IN STRATEGIC PLANNING

Strategic Planning Principles & Guidelines
An environmental scan informs the division/unit/department of its current
position and reviews the external and internal environments. There are many accepted
methods for conducting successful environmental scans. Two that are frequently used
in Higher Education are the SWOT (Strengths, Weaknesses, Opportunities, Threats) and
CAS (Council for the Advancement of Standards) methods. For the ITS department,
SWOT will be utilized to mirror the College’s Strategic plan methodology.

SWOT: This analysis consists of two main scans: the internal scan, Strengths and
Weaknesses, and the external scan, Opportunities and Threats.
The internal scan should provide planners with an accurate assessment of the
division/unit/department’s capability before developing priorities, outcomes and action
plans. The analysis allows planners to build upon strengths and overcome weaknesses.
Internal considerations may include, but are not limited to, culture, finance, reputation,
faculty or staff commitment, skills or expertise, organizational systems, stakeholder
expectations, and demographics among others.
An external scan considers economic, social, demographic, political, legal,
technological, and/or international factors to identify opportunities for growth and
improvement, and barriers thereto. Identifying strengths, weaknesses, opportunities
and threats allow planners to recognize and address gaps between the
division/unit/department’s current status and vision for the future.

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 Republic of the Philippines
State Universities and Colleges
GUIMARAS STATE UNIVERSITY
McLain, Buenavista, Guimaras
__________________________________________________________________

SWOT Analysis

SWOT Matrix – Strengths, Weaknesses, Opportunities and Threats

Internal Strengths: resources or capabilities that help the unit accomplish its mission
and vision.
Internal Weaknesses: deficiencies in resources or capabilities that hinder a unit from
meeting its responsibilities and delivering its mission and vision.
External Opportunities: outside factors or situations that balance out any related
threats allowing the unit to meet its responsibilities and deliver its mission and vision.
External Threats: outside factors or situations that negatively affect a unit.
TOWS Matrix – “Turning Opportunities & Weaknesses into Strengths” - Used to develop
strategies that take into account the SWOT analysis.

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 Republic of the Philippines
State Universities and Colleges
GUIMARAS STATE UNIVERSITY
McLain, Buenavista, Guimaras
__________________________________________________________________

S-O strategies identify potential opportunities that are a good fit to the unit strengths.
W-O strategies identify potential opportunities to overcome weaknesses to pursue
opportunities.
S-T strategies identify ways that the unit can use its strengths to reduce its vulnerability
to external threats.
W-T strategies establish a defensive plan to prevent the unit’s weaknesses from making
it highly susceptible to external threats.

Gap Analysis
Identifying the variance between your current state and your envisioned state.
Review the Vision statement and the SWOT/TOWS results to identify the “gaps”
between the two. The gap between where the unit currently stands and the unit’s vision
for the future is the planning area. Your strategic plans will identify goals, outcomes,
actions plans and measurements to eliminate this gap.

TURNAROUND AND RETRENCHMENT

Retrenchment is a corporate-level strategy that involves reducing the size, scope,
or diversity of a company’s operations. Retrenchment aims to improve the company’s
financial performance by cutting costs, streamlining operations, and focusing on core
business activities.
Retrenchment strategies are often used when a company is experiencing
financial difficulties or facing intense market competition. By focusing on core activities
and cutting costs, a company can become more competitive and increase its chances of
long-term success.
There are several types of retrenchment strategies. The choice of retrenchment
strategy will depend on a company’s specific circumstances and goals. It is important to
carefully evaluate each option’s potential benefits and risks before making a decision.
However, retrenchment can also negatively affect morale and organizational
culture, so it should be implemented carefully and sensitively to employees’ needs.
Retrenchment strategy example
Suppose a company is facing financial difficulties due to declining sales and
increasing costs. In order to improve its financial position, it may decide to implement a

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 Republic of the Philippines
State Universities and Colleges
GUIMARAS STATE UNIVERSITY
McLain, Buenavista, Guimaras
__________________________________________________________________

retrenchment strategy. The company might decide to reduce its workforce, close some
of its unprofitable stores or facilities, and divest some of its non-core assets.
For instance, a retail company with multiple stores in different locations may
choose to close down some of the unprofitable stores and focus on the ones that
generate profits. This will help the company reduce costs and improve its overall
profitability.
Another example of a retrenchment strategy could be a manufacturing company
that discontinues the production of a certain product line that is not generating enough
sales. This will help the company reduce its production costs and focus on its core
product lines, generating more revenue.

Types of Retrenchment Strategies

Retrenchment strategy refers to the strategic decision of a company to downsize
its operations, reduce costs, and focus on its core competencies to improve its overall
performance. Companies can adopt several types of retrenchment strategies,
depending on their specific circumstances and goals.
Turnaround strategy:
A turnaround strategy is used when a company is experiencing financial
difficulties and needs to make significant changes to its operations in order to return to
profitability. It may involve restructuring the company, reducing costs, and selling non-
core assets.
There are several different approaches to implementing a turnaround strategy,
but some common steps include the following:
Identifying the root causes of the company’s financial difficulties, which could
include poor management decisions, increased competition, or changes in the market.
Developing a plan to reduce costs and improve efficiency could involve
downsizing the workforce, closing unprofitable business units, or selling off non-core
assets.
Communicating the strategy to employees, shareholders, and other stakeholders
to ensure everyone knows the company’s plans and goals.
Implementing the strategy carefully and systematically, focusing on minimizing
the negative impact on employees and maintaining the company’s reputation in the
market.
Monitoring the strategy results and adjusting as needed to ensure that the
company is moving in the right direction.
While turnaround retrenchment strategies can effectively improve a company’s
financial performance, they can also be disruptive, resulting in job losses and other
negative consequences.

REFERENCES:
Bryson, J. M., Anderson, S. R., & Alston, F. K. (2011). Implementing and sustaining
your strategic plan. San Francisco: Jossey-Bass/Wiley.

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 Republic of the Philippines
State Universities and Colleges
GUIMARAS STATE UNIVERSITY
McLain, Buenavista, Guimaras
__________________________________________________________________

Hinton, Karen E. (2012). A Practical Guide to Strategic Planning in Higher Education.

Society for College and University Planning.

The Strategy Story (n.d.). What is a Retrenchment strategy: Explained with types &
examples. Retrieved from [Link]