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School of Accountancy, Business and Hospitality
Business Administration Department

Curriculum 2018-2019
COURSE LEARNING MODULE

MGMT 1063-Strategic Management
AY 2021-2022
Lesson 1: Introduction
Topic: The Strategic Management Process
Learning Outcomes: At the end of this module, you are expected to:
1. Discuss the concept on business policy and strategy

2. Describe the strategic-management process.
3. Identify the benefits of strategic management.
4. Explain the bases of Policies and Strategies
LEARNING CONTENT
Introduction:
This introductory lesson focuses on activating your knowledge on strategic management. This may no longer be
new to you as you are already on your third year in tertiary education. Often times, strategic management is used
interchangeably with decision making, however, these two are in a way similar when it comes to implementation. So
brace yourself and bring out all that strategy you know to learn with full understanding what strategic management is.
So, what comes then into your mind whenever you hear the words “strategic management”? Maybe it’s the
instructor who comes into your mind but whatever or whoever it is, strategic management will bring out all the best that
you learned in your business administration journey.
We’ve been into this pandemic for a long time now and it won’t be new anymore for you to know that majority
of the businesses from all around the world have been suffering because of the COVID-19. Nevertheless, it is interesting
to note that this time of difficulty faced by enterprises nowadays has something to do with strategic management. If it is
employed, do you think they all need to suffer from recession? All these and more we are to unfold as we go about this
course.
Lesson Proper:
MGMT 1063-Strategic Management| 1

The success of an organization is strongly linked to how the management perceives the goals to be achieved and
the ways devised to achieve those goals. These are two different but interrelated concepts of policy and strategy.
Organizational success or failure is largely dependent on how the various functional areas in the organization are
combined to produce and deliver value to different stakeholders. This integration of functions is taking place in a
continuously changing and complex environment. The formulation and implementation of policies and strategies is an
important issue as the organization strives to remain successful and grow in an increasingly complex, competitive and
globalized world. It is therefore interdisciplinary by nature and requires an understanding of all functional areas.
Business Policies – rules that guides the decisions and actions of the members of the organization. It guides the
conduct of the business in pursuit of profit and other objectives of the business.
Business policies are used to guide personnel in doing things right to be able to operate the business in a more
competitive manner. They serve as guideposts or perimeter within which decisions have to be based upon. Business
policies are set forth by the top management and hence must be adhered to. Policies are marching orders for middle
management to implement and rank and file has to do the actions. The more policies are clearly understood, the more
harmonious a workplace become.
Policies come from:

a. Operational manual- documentation by which an organization provides guidance for members and employees
to perform their functions correctly and reasonably efficiently
b. Personnel handbook - sometimes also known as an employee manual, staff handbook, or company policy
manual, is a book given to employees by an employer that used to bring together employment and job-related
information which employees need to know.
c. Memoranda - also called memo or memos — are specially formatted written communications within the
business
Business Strategy – refers to the top management’s plan to attain the outcomes consistent with the organization’s
mission and goals. It is a competitive moves and business approaches that management is employing to run the company.
It refers to the entire process of strategic decision making that relates to its environment, guides internal activities, and
determines the long term performance of the organization.
Business strategy is the Management’s “game plan” for the company to:
a. Attract and please customers
b. Stake out a market positions
c. Conduct operations
d. Compete successfully

The Bases of Policies and Strategies
 Legal mandate – must be based on the provisions of the articles of incorporation and by-laws of the
organization
 Vision and mission statement – sense of direction for which the organization was conceived or
established.
 Specific objectives – these are purposely developed for the organization and for its members to pursue.
 Programs and policies – these are set forth in pursuit of short and long-term goals given certain
considerations at hand.
Let’s twit the Twitter Case!
Why was twitter struggling in 2015? In contrast, why are facebook and Google so successful? For that matter,
why is any company successful? What enables some firms to gain and then sustain their competitive advantage over time?
why do once-great firms fail? How can managers influence firm performance? These are the big questions that define
strategic management. Answering these questions requires integrating the knowledge you’ve obtained in your studies of
various business disciplines to understand what leads to superior performance, and how can you help the organization
achieve it.
Strategic management - used synonymously with the term strategic planning. It takes into consideration various
external as well as internal factors and the environment in general as well as competitiveness and sustainability over the
long term period in the industry or sector it belongs.
Strategic plan- company’s game plan. It results from tough managerial choices among numerous good alternatives, and
it signals commitment to specific markets, policies, procedures, and operations.
The Strategic Management Process
Environmental
Strategy Strategy Evaluation
Scanning
Formulation Implementation & Control
Strategic management is the art and science of formulating, implementing, and evaluating cross- functional
decisions that enable an organization to achieve its objectives. Its basic elements are:

I. ENVIRONMENTAL SCANNING. This includes identifying an organization’s external opportunities and threats,
determining internal strengths and weaknesses.
A. External Environment. This consists of variables (Opportunities

B. Internal Environment.
& Threats) that
Thisare
consists
outside
ofthe
variables
organizatio
(stre
within the short run control of top management. within the organization itself and are not usually within
Task environment - elements or groups that directly affect

Corporation
and arestructure
affected by
(chain
organization’s
of command) major operation
Societal environment - includes general forces that do=not
thedirectly
way a corporation
touch the short
is organized
run activities
in terms
of the
of commu
organi
Corporation’s culture (rule of conduct) = pattern of belie
Corporation’s resources =assets that are from the raw m
II. STRATEGY FORMULATION. This is the development of long range plans for the effective management of
environmental opportunities & threats in light of corporation’s strengths and weaknesses
Plans:
1. Mission- refers to the purpose or reason for the organization’s existence
- declaration of an organization’s “reason of being”
Example: To reinvent how people share knowledge, tell stories, and inspire their audiences to act
(Prezi)
2 Types:
a) narrow mission- it limits the scope of the organization’s activities in terms of:
product/service, technology used, market served
b) broad mission – widens scope of activities
Example: Narrow Mission Broad Mission
Railroads transportation
Insurance financial services
2. Objective-end results of planned activity

-state what is to be accomplished by when & should be quantifiable
Example: To sell more prezi licenses.
NOTE: Achievement of objective results in the fulfilment of corporation’s mission

3. Strategies – a statement of “how” an organization achieves its mission & objectives
-it maximizes competitive advantage(what the organization has that other do not have)
Example: Cornering a young market.
3-level Hierarchy of Strategy
A) Corporate strategy-explores the ways in which a firm can develop a favorable portfolio strategy. It
is a decision on:type of business, flow of financial resources, ROI
B) Business Strategy-emphasizes improvement of the competitive position of a corporation’s product
or services in the specific industry or market segment served by the division. Its SBE (Strategic
Business Unit) may be: overall cost leadership, differentiation, focus
C. Functional Strategies-it is maximizing of resource productivity
4. Policies- broad guidelines which serves to link formulation of strategy and its implementation
Example: Equal opportunity and non-discrimination of customers.
III. STRATEGY IMPLEMENTATION. This is the process by which strategies and policies are put into action through
the development of programs, budgets and procedures.
This element requires a firm to establish annual objectives, devise policies, motivate employees, and allocate
resources so that formulated strategies can be executed. It is often called the action stage whereby process by which
strategies and policies are put into action through the development of programs, budgets and procedures.
A. Programs–statement of the activities or steps needed to accomplish a single use plan; it makes the strategy
action oriented
B. Budgets-statement of program in financial terms
C. Procedures-are system of sequential steps or techniques that describe in detail how a particular task or job
is to be done
IV. EVALUATION & CONTROL. This is the process in which corporate activities and performance results are
monitored so that actual performance can be compared with desired performance.
This involves reviewing external and internal factors that are the bases for current strategies, measuring
performance, and taking corrective actions.Conducted through:
corrective
INFORMATION
action; problem
RESULT
resolution
Strategy formulation, implementation, and evaluation activities occur at three hierarchical levels in a large
organization: corporate, divisional or strategic business unit, and functional. Through this, strategic management
helps a firm function as a competitive team.

The Benefits of Strategic Management
Clearer sense of strategic vision for the firm.

Sharper focus on what is strategically important
Improved understanding of a rapidly changing environment
Historically, the principal benefit of strategic management has been to
help organizations formulate better strategies through the use of a more
systematic, logical, and rational approach to strategic choice
Historically, the principal benefit of strategic management has been to
help organizations formulate better strategies through the use of a more
systematic, logical, and rational approach to strategic choice
KEY TAKEAWAYS
 Strategy is the set of goal-directed actions a firm takes to gain and sustain superior performance
relative to competitors.
 A good strategy enables a firm to achieve superior performance.
 A successful strategy requires four integrative management tasks: environmental scanning, strategy
“Strategic Management is not a box of tricks or bundle of techniques. It is analytical thinking and committment
of resource to action. But quantification alone is not planning. Some of the most important issues in strategic
management cannot be quantified at all”.
~Peter Drucker
*** END of LESSON 1***
REFERENCES
Textbook:
Rothaermel, Frank. (2017). Strategic Management 3rd Edition.
References:
1. Montoya, Sheriff. (2017). Strategic Production and Operations Management. Unlimited Books Library
Services & Publishing Inc. Manila.
2. Stephens, Elisha, et.al. (2019). Business Policy and Strategic Management. ED-Tech Press, United
Kingdom.
3. Pereda, Pedrito. (2015). Strategic Management. Unlimited Books Library Services & Publishing Inc.
Manila.
4. Thompson, Arthur, et.al. ( 2015). Essentials of Strategic Management: The A Quest for Competitive
Advantage. McGraww-Hill Education, New York.

Home
Code 165 - MGMT 1063 - Strategic Management (Short Term)
Midterm Week-3
Lesson 7: Internal Environment

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Previous Continue
MGMT 1063-Strategic Management and Total Quality Management
AY 2021-2022
Lesson 3: SWOT Analysis
Topic: Definition of SWOT Analysis, Matching and converting, Internal and External
Factors, Use of SWOT Analysis
1. Define and discuss SWOT analysis.

2. Match the SWOT components and convert them.
3. Identify internal and external factors affecting an organization
4. Determine the uses of SWOT Analysis
LEARNING CONTENT
We discussed in the previous module that strategic managers must manage and align the firm’s different
functional areas for competitive advantage. Also, as functional managers, they are responsible for implementing business
Introduction:
strategy within a single functional area. For this week, we’re going to deal more on one of the primary roles of strategic
leaders, the SWOT analysis.
Lesson Proper:
Definition of SWOT Analysis

A SWOT analysis must first start with defining a desired end state or objective. A SWOT analysis may be
incorporated into the strategic planning model. An example of a strategic planning technique that incorporates an
objective-driven SWOT analysis is Strategic Creative Analysis (SCAN). Strategic Planning, including SWOT and SCAN
analysis, has been the subject of much research. We synthesize insights from an internal analysis of the company’s
strenghts and weaknesses with those from an analysis of external opportunities and threats.
MGMT 1063- Strategic Management|

SWOT
Analysis
a strategic planning method used to evaluate the Strengths, Weaknesses,

Opportunities, and Threats involved in a project or in a business venture
It involves specifying the objective of the business venture or project and

identifying the internal and external factors that are favorable and unfavorable
to achieving that objective.
Provides information that is helpful in matching the firm’s resources and

capabilities to the competitive environment in which it operates
A SWOT Analysis allows the strategist to evaluate a firm’s current situation and future prospects by
simultaneously considering internal and external factors. The SWOT Analysis encourages managers to scan the internal
and external environments, looking for any relevant factors that might affect the firm’s current or future competitive
adavantage. The focus is on internal and external factors that can affect – in a positive or negative way – the firm’s ability
togain and sustain competitive advantage. So what are the components of the analysis?
Strengths: attributes of the

Weaknesses: attributes of
person or company that is
the person or company that is
helpful to achieving the
harmful to achieving the
objective. A firm’s strengths
objective. What is done
are its resources and
badly? What could be
capabilities than can be used
improved? What should be
as a basis for developing a
avoided? Are your
competitive advantage. What
competitors doing better?
do you do well? What are
your advantages?
Opportunities: external
Threats: external conditions
conditions that is helpful to
which could do damage to the
achieving the objective.
objective. What obstacles to
What are the interesting
you face? How are your
trends? Where are the
competitors fairing? Could
opportunities available to
changes in technology threaten
you?
your position? Do you have bad
debt or cash- flow problem?

Internal strengths and weaknesses concern resources, capabilities, and competencies. A resource is a weakness if
it is not valuable. In this case, the resource does not allow the firm to exploit an external opportunity or offset an external
threat. A resource, however is a strength and a core competency if it is valuable, rare, costly to imitate, and the firm is
organized to capture at least part of the economic value created.
On the other hand, external opportunities and threats are in the firm’s general environment. An attractive industry
for example, presents an external opportunity for firms not yet active in the industry. On the while, stricter regulation for
financial institutions, for example, might represent an external threat to banks.
To further understand the components SWOT, let’s take a look on the SWOT Analysis of Starbucks Company:
As noted above, both strenghts are weknesses are qualities internal to the company while opportunities and threats
are external, things that may be beyond the control of the company.

Let’s hear from you!
What is your self-SWOT?
Identify your strengths, weaknesses, opportunities and threats and be ready to share them in class.
 For the LMS, sharing via google meet/zoom shall be posted through our messenger group.
 For the modular, accomplish the worksheet attached.
Identification of SWOTs is essential because subsequent steps in the process of planning for achievement of the
selected objective may be derived from the SWOTs. To develop strategies that take into account a SWOT matrix can be
constructed. In this matrix, the horizontal axis is divided into factors that are internal to the firm and vertical axis into
factors that are external to the firm as shown below:
SWOT MATRIX
Strengths Weaknesses
Opportunities S-O Strategies (pursue W-O Strategies ( Overcome
opportunities that are good fit weaknesses to pursue
to the company’s strengths) opportunities)
Threats S-T Strategies ( identify ways W-T Strategies (Establish a
that the firm can use its defensive plan to prevent the
strengths to reduce its firm’s weaknesses from making
vulnerability to external threats) it highly susceptible to external
threat)
To use the SWOT matrix for strategy-making it is important to know how to match and convert the components
which is to be discussed next.
Matching and converting
In order to match and convert the components SWOT, managers gather information for a SWOT analysis
in order to link internal factors (strengths and weaknesses) to external factors (opportunities and

threats. Then managers use the SWOT matrix to develop strategic alternatives. But what are matching and converting?
Matching
• used to find competitive advantages by matching the strengths to opportunities
Converting
• to apply conversion strategies to convert threats or weaknesses into strengths or opportunities
Note: If the threats or weaknesses cannot be converted a company should try to minimize or avoid them.
One example of conversion strategy is to find new markets. But let’s take a look on Google as an example. The
location of its headquarters is in Silicon Valley, near several universities as a key source of the firm. Most people would
consider this a strength for the firm. However, California has a high cost of living and is routinely ranked among the
worst of the US states in terms of ease of doing business. In addition, this area of California is along major earthquake
fault lines and is more prone to natural disasters than many other parts of the country. So is the location a strength or a
weakness? The answer is “it depends”. In a similar fashion, is global warming an opportunity or threat for car
manufacturers? If government enacts higher gasoline taxes and make driving more expensive, it can be a threat. If,
however, carmakers respond to government regulations by increased innovation through developing more fuel-efficient
cars as well as low- or zero-emission engines such as hybrid or electric vehicles, it may create more demand for new cars
and lead to higher sales.
Internal and external factors
The
aim of any SWOT analysis is to identify the key internal and external factors that are important to achieving the objective.
These come from within the company's unique value chain. SWOT analysis groups key pieces of information into two
main categories:
Internal factors – The strengths and

External factors – The opportunities and threats
weaknesses internal to the organization. The
presented by the external environment to the
factors may include all of the 4P's; as well as
organization.The external factors may include
personnel, finance, manufacturing capabilities, and
macroeconomic matters, technological change,
so on.
legislation, and socio-cultural changes, as well as
changes in the marketplace or competitive position.
MGMT 1063- Strategic Management| 5

To identify these internal and external factors, the following types of analyses will be helpful:
PESTLE (Political, Economic,
STEEPLEDSocial,
(Social,
and Technological,
Technological,Legal
Economic,
and Environmental)
Environmental,Analysis
Political, Legal and E
PEST (Political, Economic, Social, and Technological) Analysis
describes a framework of macro-environmental

allows scanning,
factors
monitoring,
used in the
andenvironmental
evaluating
It is a partchanges
ofscanning
the external
andcomponent
trends
analysis
in the
of
when
stra
firm
. It is a useful strategic tool for understa
Use of SWOT Analysis
In summary, the following therefore are the uses of SWOT Analysis:
SWOT analysis is used in any decision-making situation when a

desired end-state (objective) has been defined
SWOT analysis is used in pre-crisis planning and preventive crisis

management.
SWOT analysis is used in creating a recommendation during a

viability study.
LESSON KEY TAKEAWAY

Formulating a strategy that increases the chances of gaining and sustaining a competitive advantage is based on
synthesizing insights obtained from an internal analysis of the company’s strengths and weaknesses with those from an
analysis of external opportunities and threats.
PARTICIPATION(for recitation purposes)
For Modular, a separate worksheet is attached, to be submitted/ given back to the teacher.
What is your self-SWOT?
Identify your strengths, weaknesses, opportunities and threats and be ready to share them in class.

EVALUATION
For Modular, a separate quiz sheet is attached, to be submitted/ given back to the teacher.
Essay. I encourage you to apply what you have learned to your future career. Spend a few minutes looking at yourself to
discover your own competitive advantage. If you already have previous work experience, these questions should be
from a work environment perspective. If you do not have yet, use the questions to evaluate a new workplace or as
strategies for presenting yourself to a potential employer.
1. Basing from your self-SWOT, are some of your strengths valuable, rare, and costly to imitate? How can you
organize your work to help capture the value of your key strengths (or mitigate your weaknesses)? Are your
strengths specific to one or a few employers or are they more generally valuable in the marketplace? In general,
should you be making investments in your human capital in terms of company-specific or market-general skills?
Why should that distinction matter?
2. As an employee/future employee, how could you persuade your boss that you could be a vital source of
sustainable competitive advantage? What evidence could you provide to make such an argument? If you are
currently or previously employed, consider how your professional activities can help reinforce the key value-
added activities in your department or organization.
REFERENCES
Textbook:
References:
Kingdom.
Manila.
Learning Materials
1. Worksheets (teacher-made)

CORRESPONDENCE LEARNING MODULE

WORKSHEET
Identify your strengths, weaknesses, opportunities and threats

1. Strengths
2. Weaknesses
3. Opportunities
4. Threats

CORRESPONDENCE LEARNING MODULE

QUIZ SHEET
Essay. I encourage you to apply what you have learned to your future career. Spend a few minutes looking at yourself to
discover your own competitive advantage. If you already have previous work experience, these questions should be
from a work environment perspective. If you do not have yet, use the questions to evaluate a new workplace or as
strategies for presenting yourself to a potential employer.
1. Basing from your self-SWOT, are some of your strengths valuable, rare, and costly to imitate? How can you organize
your work to help capture the value of your key strengths (or mitigate your weaknesses)? Are your strengths specific to
one or a few employers or are they more generally valuable in the marketplace? In general, should you be making
investments in your human capital in terms of company-specific or market- general skills? Why should that distinction
matter?
2. As an employee/future employee, how could you persuade your boss that you could be a vital source of sustainable
competitive advantage? What evidence could you provide to make such an argument? If you are currently or previously
employed, consider how your professional activities can help reinforce the key value- added activities in your
department or organization.

RUBRIC FOR ESSAY
CRITERIA 25 20 15 10
Identifies & understands Identifies and understands Identifies and understands Identifies and
Identification of the Main all of the main issues in most of the main issues in some of the issues in the understands few of the
Issues/ Problems the case study the case study case study issues in case study
Insightful and thorough Thorough analysis of Superficial analysis of Incomplete analysis of the
analysis of all the issues most of the issues some of the issues in the issues
Analysis of the Issues case
Well documented, Appropriate, well thought Superficial and/or Little or no action

reasoned and out comments about inappropriate solutions to suggested, and/or
Comments on effective
pedagogically appropriate solutions, or proposals for some of the issues in the inappropriate solutions to
solutions/strategies (The
comments on solutions, solutions, to most of the case study all of the issues in the case
solution may be in the
or proposals for issues in the case study study
case already or proposed
solutions, to all issues in
by you)
the case study

AY 2021-2022
Lesson 4: Business SWOT Analysis
Topic: Business SWOT Analysis, How to Use the Tool, Examples of SWOT
1. Apply SWOT analysis in business.

2. We
Determine how to use
have discussed theprevious
in the SWOT analysis
module atool.
general SWOT Analysis procedure including its uses. You have now
3. Conduct SWOT analysis of a business basing from
acquired the toolkit with which to conduct a complete samples.
strategic analysis of a firm’s internal and external environments.
For the next discussion, we consider SWOT Analysis more in business.
LEARNING CONTENT
Introduction:
Lesson Proper:
Business SWOT Analysis

SWOT Analysis is a useful technique for understanding your Strengths and Weaknesses, and for identifying both
the Opportunities open to you and the Threats you face. So what makesSWOT particularly powerful in business?
SWOT Analysis is a simple but useful framework for analyzing your organization's strengths and weaknesses,
and the opportunities and threats that you face. It helps you focus on your strengths, minimize threats, and take the
greatest possible advantage of opportunities available to you. It can be used to "kick off" strategy formulation, or in a
more sophisticated way as a serious strategy tool. You can also use it to get an understanding of your competitors, which
can give you the insights you need to craft a coherent and successful competitive position.
WARNING: No part of this E-module/LMS content can be reproduced or transported or shared to others
without permission from the University. Unauthorized use of the materials, other than personal learning use, will be
penalized. Please be guided accordingly.
MGMT 1063-Strategic Management Page
How to Use the Tool
When carrying out your analysis, be realistic and rigorous. Apply it at the right level, and supplement it with other
option-generation tools where appropriate. But how exactly are you going to apply SWOT analysis in business?
In looking at your strengths, think about them in relation to your competitors - for example, if all your competitors
provide high quality products, then a high quality production process is not strength in the market, it is a necessity.
Strengths: Figure out

your strengths. Think • What advantages does your company have?
• What do you do better than anyone else?
about the questions • What unique or lowest-cost resources do you have
from your point of access to?
• What do people in your market see as your strengths?
view and from others. • What factors mean that you "get the sale"?
Examples:
 We can respond very quickly as we have no red tape, no need for higher management approval.
 We can give really good customer care, as the current small amount of work means we have plenty of time to
devote to customers.
 Our lead consultant has strong reputation within the market.
 We can change direction quickly if our approach isn't working.
 We have little overhead, so can offer good value to customers.
 Patents, strong brand names, good reputation among customers, cost advantages from proprietary know-how,
exclusive access to high grade natural resources, and favorable access to distribution networks
For weaknesses, again, consider this from an internal and external basis: Do other people seem to perceive
weaknesses that you do not see? Are your competitors doing any better than you? It is best to be realistic now, and face
any unpleasant truths as soon as possible.
Weaknesses: Determine your
weaknesses. Deal with any negative • What could you improve?
answers as soon as you can. You • What should you avoid?
should think about these questions • What are people in your market likely to see as
from your point of view and from weaknesses?
others.
• What factors lose you sales?
Examples:
 Our company has no market presence or reputation.
 We have a small staff with a shallow skills base in many areas.
 We are vulnerable to vital staff being sick, leaving.
 Our cash flow will be unreliable in the early stages.
 Lack of patent protection, a weak brand name, poor reputation among customers, high cost structure, lack of
access to the best natural resources, lack of access to key distribution channels.
For opportunities, a useful approach is to look at your strengths and ask yourself whether these open up any
opportunities. Alternatively, look at your weaknesses and ask yourself whether you could create opportunities by
eliminating them.
Opportunities: Recognize your

opportunities. Helpful opportunities • What are the interesting trends you are aware of?
can come from things like lifestyle • What good openings do you have?
events and variations in societal
patterns. A good method for looking
at opportunities is to evaluate your
strengths and weaknesses.
Examples:
 Our business sector is expanding, with many future opportunities for success.
 Our local council wants to encourage local businesses with work where possible.
 Our competitors may be slow to adopt new technologies.
 An unfulfilled customer needs, arrival of new technologies, loosening of regulations, removal of international
trade barriers
Hence, useful opportunities can come from such things as:
Changes in Changes in
technology Changes in social
and markets government patterns,
policy related Local events
on both a population
to your field
Lastly, threats are concerned with the following questions: profiles,
broad and
• What obstacles do you face?
• What is your competition doing that you should be
worried about?
Threats: Discover your threats. Ask: • Are the required specifications for your job, products or
Doing this will let you know what services changing?
should be done to put things in
perspective. • Is changing technology threatening your position?
• Do you have bad debt or cash-flow problems?
• Could any of your weaknesses seriously threaten your
business?
Examples:
 Will developments in technology change this market beyond our ability to adapt?
 A small change in focus of a large competitor might wipe out any market position we achieve.
 Shifts in consumer tastes away from the firm’s products, emergence of substitute products, new
regulations, and increased trade barriers
Examples of SWOT Analysis
Example #1
This SWOT analysis example is based on an imaginary situation. The scenario is based on a business- to-business
manufacturing company, who historically rely on distributors to take their products to the end user market. The
opportunity, and therefore the subject for the SWOT analysis, is for the manufacturer to create a new company of its own
to distribute its products direct to certain end-user sectors, which are not being covered or developed by its normal
distributors.
Subject of SWOT analysis example: the creation of own distributor company to access new end-user
sectors not currently being developed.
Strengths Weaknesses
 End-user sales control and direction.  Customer lists not tested.
 Right products, quality and reliability.  Some gaps in range for certain sectors.
 Superior product performance vs competitors.  We would be a small player.
 Better product life and durability.  No direct marketing experience.
 Spare manufacturing capacity.  We cannot supply end-users abroad.
 Some staff have experience of end-user sector.  Need more sales people.
 Have customer lists.  Limited budget.
 Direct delivery capability.  No pilot or trial done yet.
 Product innovations ongoing.  Don't have a detailed plan yet.
 Can serve from existing sites.  Delivery-staff need training.
 Products have required accreditations.  Customer service staff need training.
 Processes and IT should cope.  Processes and systems, etc
 Management is committed and confident.  Management cover insufficient.
Opportunities Threats
 Could develop new products.  Legislation could impact.
 Local competitors have poor products.  Environmental effects would favor larger
competitors.
 Profit margins will be good.
 End-users respond to new ideas.  Existing core business distribution risk.
 Market demand very seasonal.
 Could extend to overseas.
 Retention of key staff critical.
 New specialist applications.
 Could distract from core business.
 Can surprise competitors.
 Support core business economies.  Possible negative publicity.
 Could seek better supplier deals.  Vulnerable to reactive attack by major
Example #2
Using SWOT to analyze the market position of a small management consultancy with specialism in
HRM.
Strengths Weaknesses Opportunities Threats
Reputation in marketplace Shortage of consultants at Well established position Large consultancies
operating level rather than with a well-defined market operating at a minor level
partner level niche.
Expertise at partner level in Unable to deal with multi- Identified market for Other small consultancies
HRM consultancy disciplinary assignments consultancy in areas other looking to invade the
because of size or lack of than HRM marketplace
ability
Track record – successful

assignments
LESSON KEY TAKEAWAY

SWOT Analysis is a simple but powerful framework for analyzing your company's Strengths and Weaknesses, and
the Opportunities and Threats you face. This helps you to focus on your strengths, minimize threats, and take the greatest
possible advantage of opportunities available to you.
REFERENCES
Textbook:
References:
Kingdom.
Manila.
AY 2018-2019
Lesson 5: The Segments of the General Environment
Topic: The Segments of the General Environment (Societal Environment): Economic Forces;
Socio-cultural; Demographic
1. Determine the segments of the general environment.

2. Enumerate factors affecting the economic force.
3. Identify the elements of socio cultural and economic forces.
LEARNING CONTENT
We have discussed in the previous module SWOT Analysis being applied in business. For this week, we will be
going deeper into a company’s/firm’s external environment by looking into three (3) factors that affect it.
Introduction:
Lesson Proper:
The Segments of the General Environment (Societal Environment)

A firm’s external environment consists of all the factors that can affect its potential to gain and sustain a
competitive advantage. By analyzing the factors in the external environment, managers can mitigate threats and leverage
opportunities. One common approach to understanding how external factors impinge upon a firm

is to consider the source or proximity of these factors.
General environment -
managers have little direct
influence over such as
macroeconomic factors Task environment - managers
(interest/currency do have some influence over
exchange rates) such as the composition of their
strategic groups (a set of close
rivals) or the structure of the
industry
Economic Forces
Economic factors in a firm’s external environment are largely macroeconomic, affecting economy-wide phenomena.
Managers need to consider the following five macroeconomic factors can affect firm strategy:

Growth • This is a measure of the change in the amount of goods and
services produced by a nation's economy.
Rates • Real growth rate - indicates the current business cycle of the
economy, whether business activity is expanding or contracting.
Levels of • These are directly affected by growth rates.

employment • In boom times, unemployment tends to e low and skilled human
capital becomes scarce and more exoensive resources
• In economic downturns, unemployment rises.
Interest • It is the amount that creditors are paid for use of their money and the
amount that debtors pay for the use, adjusted for inflation.
rates • Low interest rates have a direct bearing on consumer demand.
Price • Refers to the lack of change in price levels of goods and services
• Inflation - too much money chasing too few goods and services
stability • Deflation - describes a decrease in the overall price level.
Currency exchange • It determines how many dollars one must pay for a unit of foreign
currency
rates • It is a critical variable for any company that buys or sells products and
services across national borders.
In summary, economic factors affecting businesses are ever-present and rarely static. Managers need to fully
appreciate the power of these factors, in both domestic and global markets to assess their effects on firm performance.
Sociocultural Forces

Sociocultural factors – capture a society’s cultures, norms,
and values. Because they not only are constantly in flux but also
differ across groups, managers need to closely monitor such
trends and consider the implications for firm strategy.
In recent years for example, a growing number of U.S. consumers have become more health-conscious about
what they eat. This trend led to a boom for businesses such as Chipotle, Subway, and Whole Foods. At the same time,
traditional fast-food companies McDonald’s and Burger King, along with grocery chains such as Albertsons and Kroger,
have all had to scramble to provide healthier choices in their product offerings.
Demographic Forces
Demographic factors – trends that capture

population characteristics related to age, gender,
family size, ethnicity, sexual orientations,
religion, and socio-economic class. They can
present opportunities but can also pose threats.
A recent census revealed that 51 million Americans (16.4 percent of the total population in US) are Hispanic. It is
now the second largest ethnic group in US and growing fast. On average, Hispanics are also younger and their incomes
are climbing quickly. This trend is not lost on companies trying to benefit from this opportunity.
Minicase to Ponder on

What went wrong?
 Read the case below to serve as an example of how the external environment affects a company/organization.
Blackberry’s Bust
A pioneer in smartphones, BlackBerry was the undisputed industry leader in the early 2000s, which were
preferred by IT managers. Its devices allowed users to receive e-mail and other data in real time globally, with enhanced
security features. For executives, a BlackBerry was not just a tool to increase productivity – and to free them from their
laptops – but also an important status symbol. As a consequence, by 2008 BlackBerry’s market cap had peaked at $75
billion. Yet by 2015, this valuation had fallen more than 90 percent, to less than
$7 billion. What happened?
The introduction of the iPhone by Apple in 2007 changed the game in the mobile device industry. Equipped with
a camera, the iPhone’s slick design offered a user interface with a touchscreen including a virtual keyboard. The iPhone
connected seamlessly to other cellular networks and Wi-Fi. Combined with thousands of apps via the Apple iTunes store,
the iPhone provided a powerful user experience, or as the late Steve Jobs said, “The Internet in your pocket.”
However, BlackBerry engineers and executives initially dismissed the iPhone as a mere toy with poor security
features. Everyday users thought differently. They has less concern for encrypted software security than they had desire
for having fun with a device that allowed them to text, surf the web, take pictures, play games, and do e-mail. Although
BlackBerry devices were great in productivity applications, such as receiving and responding to e-mail via typing on its
iconic physical keyboard, they provided a poor mobile web browsing experience.
Initially, mobile devices were issued top-down by corporate IT departments. The only available device for
executives was a company-issued BlackBerry. This made life easy for IT departments, ensuring network security.
Consumers, however, began to bring their personal iPhones to work and used them for corporate communication and
productivity applications. This bottom-up groundswell of the BYOT (“bring your own technology”) movement forced
corporate IT departments to open up their services beyond the BlackBerry.
LESSON KEY TAKEAWAY
The framework to analyze the firm’s external environment is the industry in which the firm operates, and the
competitive forces that surround the firm from the outside.
REFERENCES
Textbook:
References:

Kingdom.
Manila.

NEOLMS LEARNING MODULE
MGMT 1063- Strategic Management and Total Quality Management
AY 2020-2021
Lesson 6: Other Segments of the Environment
Topic: Environmental Forces; Political, Governmental and Legal Forces; Technological Forces
1. Determine environmental forces affecting the firm/company.

2. Recognize the interrelatedness of political, governmental and legal forces
3. Enumerate technological factors affecting the organization
LEARNING CONTENT
We have learned last week that economic factors to be considered are growth rates, interest rates, levels of
employment, price stability and currency exchange rates while sociocultural factors capture a society’s cultures, norms,
Introduction:
and values.
Lesson Proper:
Environmental Forces
Organizations and the natural environment coexist in an interdependent relationship. Managing these relationships
in a responsible and sustainable way directly influences the continued existence of human societies and the organizations
we create. Managers can no longer separate the natural and the business worlds; they are enextricably linked.
Environmental factors –
involve broad issues such as the
natural environment, global
warming, and sustainable
economic growth.

Negative examples come readliy to mind, as many business organizations have contributed to the pollution of air,
water, and land, as well as depletion of the world’s natural resources.
Political, Governmental and Legal Forces
Political, government and legal factors are closely related, as political pressure often results in changes in
legislation and regulation.
• This results from the processes and

actions of government bodies that can
influence the decisions and behavior of
Political firms.
• Nonmarket strategies - lobbying, public
relations, contributions, litigation, and so
on, in ways that are favorable to the
firm.
• can directly affect firm performance by

exerting both political and legal
sanctions, including court rulings and
Governmental industry regulations
• can often wield positive legal and political
mechanisms to achieve desired changes
in consumer behavior.
• include the official outcomes of political

processes as manifested in laws,
Legal mandates, regulations, and court decisions
- all
of
whic
h
can
have
a
dire
ct
bear
ing
on a
firm'
s
profi
t
pote
ntial
.

Technological Forces
Technological factors – capture the application of knowledge to create new processes and
products.
Nanotechnology revolution – promises significant upheaval for a vast array of industries
ranging from tiny medical devices to new-age materials for earthquake-resistant buildings.
Not surprisingly, changes in the technological environment bring both opportuites and threats for companies.
Firm’s innovation strategy is important to competitive advantage.
LESSON KEY TAKEAWAY
A firm’s macroenvironment consists of a wide range of environmental, political, governmental, legal, and
technological factors that can affect industry and firm performance. What matters is that managers must know how to
deal/address their domestic and global aspects.
REFERENCES
Textbook:
References:
Kingdom.
Manila.

Home
Midterm Week-3
Lesson 7: Internal Environment

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School of Accountancy, Business and Hospitality

Business Administration Department

COURSE LEARNING MODULE

Topic: The Strategic Management Process

1. Discuss the concept on business policy and strategy

MGMT 1063-Strategic Management| 1

Policies come from:

MGMT 1063-Strategic Management| 2

Let’s twit the Twitter Case!

The Strategic Management Process

MGMT 1063-Strategic Management| 3

A. External Environment. This consists of variables (Opportunities

Task environment - elements or groups that directly affect

2. Objective-end results of planned activity

MGMT 1063-Strategic Management| 4

MGMT 1063-Strategic Management| 5

Clearer sense of strategic vision for the firm.

*** END of LESSON 1***

Rothaermel, Frank. (2017). Strategic Management 3rd Edition.

MGMT 1063-Strategic Management| 6

Code 165 - MGMT 1063 - Strategic Management (Short Term)

Lesson 7: Internal Environment

Knoywouinrg competiataidvasevantages foutnedainamgndvenisturkeetoy

The glue that organiztaotgioe ecmaepragboeivliteiers time throug

Lesson 3: SWOT Analysis

1. Define and discuss SWOT analysis.

Definition of SWOT Analysis

MGMT 1063- Strategic Management|

a strategic planning method used to evaluate the Strengths, Weaknesses,

It involves specifying the objective of the business venture or project and

Provides information that is helpful in matching the firm’s resources and

Strengths: attributes of the

MGMT 1063- Strategic Management|

MGMT 1063- Strategic Management|

What is your self-SWOT?

Matching and converting

MGMT 1063- Strategic Management|

Internal and external factors

Internal factors – The strengths and

MGMT 1063- Strategic Management| 5

describes a framework of macro-environmental

Use of SWOT Analysis

In summary, the following therefore are the uses of SWOT Analysis:

SWOT analysis is used in any decision-making situation when a

SWOT analysis is used in pre-crisis planning and preventive crisis

SWOT analysis is used in creating a recommendation during a

LESSON KEY TAKEAWAY

*** END of LESSON 3***

PARTICIPATION(for recitation purposes)

What is your self-SWOT?

MGMT 1063- Strategic Management|

Rothaermel, Frank. (2017). Strategic Management 3rd Edition.

MGMT 1063- Strategic Management|

CORRESPONDENCE LEARNING MODULE

Identify your strengths, weaknesses, opportunities and threats

MGMT 1063- Strategic Management|

CORRESPONDENCE LEARNING MODULE

MGMT 1063- Strategic Management|

* END of LESSON 1*

* END of LESSON 3*

* END of LESSON 4*

* END of LESSON 5*

* END of LESSON 6*