Republic of the Philippines

DON HONORIO VENTURA STATE UNIVERSITY

LUBAO, PAMPANGA

COLLEGE OF BUSINESS STUDIES

CBME 21:
STRATEGIC
MANAGEMENT

Class No: Prepared by:

Name: ISAAC S. RONQUILLO, MBA, CB
Course, Yr. & Sec: INSTRUCTOR I
 COURSE SYLLABUS

1.0 COURSE CODE : CBME 21

2.0 COURSE TITLE : Strategic Management
3.0 NO. OF UNITS : 3
4.0 SCHEDULE : (as seen in the instructor’s program)
5.0 INSTRUCTOR : ISAAC S. RONQUILLO, MBA, CB

6.0 PHILOSOPHY
This course examines the fundamental concepts of Strategic Management which is
essential in successful entrepreneurial venture. In addition to traditional business
knowledge, the business world now demands increasing employee competence in
developing effective service processes, customer satisfaction and service quality
measurement, as well as service recovery skills that are essential in growing and
sustaining the existing customer base..

7.0 AUDIENCE
The course is intended for the third year BSBA Major in Marketing.

8.0. UNIVERSITY VISION AND MISSION

UNIVERSITY VISION

A lead university in producing quality individuals with competent capacities to generate

knowledge and technology and enhance professional practices for sustainable national
and global competitiveness through continuous innovation.

UNIVERSITY MISSION

DHVSU commits itself to provide an environment conducive to continuous creation of

knowledge and technology towards the transformation of students into globally
competitive professionals through the synergy of appropriate teaching, research, service
and productivity functions.

9.0 COLLEGE GOAL AND PROGRAM OBJECTIVES

COLLEGE GOAL

To produce marketing experts, entrepreneurs, and economists in the local and global
business arena.

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Ins. 1.Isaac S. Ronquillo, MBA,CB
 PROGRAM OBJECTIVES

Being one of the most promising College of DHVSU, the College of Business Studies is
committed to achieve the following objectives:
 To develop entrepreneurs who are motivated and knowledgeable in identifying
opportunities, developing and preparing business plans and actually starting and
managing a business.
 To equip students with the theoretical and analytical skills about the new trends,
strategies and issues in business that will give them the proper orientation and
motivation;
 To make students realize the socio-economic benefits and impact in pursuing the
program and eventually starting their own business, thus actively contributing to
the development of the country’s economy and achieving competitive advantage in
the global environment.

TEACHING STRATEGIES/METHODOLOGIES/ENRICHMENT ACT

1. Modules
2. Individual and group reporting
3. Online and offline activities
4. Facilitated learning

COURSE REQUIREMENTS
1. Attendance
2. Recitations and Major Examinations
3. Active participation in online and offline class activities
4. Final output

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Ins. 1.Isaac S. Ronquillo, MBA,CB
 MIDTERM: PART B

THE BUSINESS VISION AND MISSION

After studying this part, you should be able to:

1. Describe the nature and role of vision and mission statements in strategic management.
2. Discuss why the process of developing a mission statement is as important as the resulting
document.
3. Identify the components of mission statements.
4. Discuss how clear vision and mission statements can benefit other strategic-management
activities.
5. Evaluate mission statements of different organizations.
6. Write good vision and mission statements.

What Do We Want to Become?

It is especially important for managers and executives in any organization to agree on the basic
vision that the firm strives to achieve in the long term. A vision statement should answer the basic
question, “What do we want to become?” A clear vision provides the foundation for developing a
comprehensive mission statement. Many organizations have both a vision and mission statement,
but the vision statement should be established first and foremost. The vision statement should be
short, preferably one sentence, and as many managers as possible should have input into
developing the statement.

What is Our Business?

Current thought on mission statements is based largely on guidelines set forth in the mid-1970s by
Peter Drucker, who is often called “the father of modern management” for his pioneering studies at
General Motors Corporation and for his 22 books and hundreds of articles.

Drucker says that asking the question “What is our business?” is synonymous with asking the
question “What is our mission?” An enduring statement of purpose that distinguishes one
organization from other similar enterprises, the mission statement is a declaration of an
organization’s “reason for being.” It answers the pivotal question “What is our business?” A clear
mission statement is essential for effectively establishing objectives and formulating strategies.

Vision versus Mission

Many organizations have both a mission and vision statement. It can be argued that profit, not
mission or vision is the primary corporate motivator. But profit alone is not enough to motivate
people. Profit is perceived negatively by some employees in companies. Employees may see profit
as something that they earn and management then uses and even gives away to shareholders.
Although this perception is undesired and disturbing to management, it clearly indicates that both
profit and vision are needed to motivate a workforce effectively.

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Ins. 1.Isaac S. Ronquillo, MBA,CB
The Process of Developing Vision and Mission Statements

A widely used approach to developing a vision and mission statement is first to select several
articles about these statements and ask all managers to read these as background information.
Then ask managers themselves to prepare a vision and mission statement for the organization.

A facilitator, or committee of top managers, should then merge these statements into a single
document and distribute the draft statements to all managers. A request for modifications,
additions, and deletions is needed next, along with a meeting to revise the document.

To the extent that all managers have input into and support the final documents, organizations can
more easily obtain managers’ support for other strategy formulation, implementation, and
evaluation activities. Thus, the process of developing a vision and mission statement represents a
great opportunity for strategists to obtain needed support from all managers in the firm.

Importance (Benefits) of Vision and Mission Statements

The importance (benefits) of vision and mission statements to effective strategic management is
well documented in the literature, although research results are mixed. King and Cleland
recommend that organizations carefully develop a written mission statement and vision statement
in order to reap the following benefits:

1. To ensure unanimity of purpose within the organization

2. To provide a basis, or standard, for allocating organizational resources
3. To establish a general tone or organizational climate
4. To serve as a focal point for individuals to identify with the organization’s purpose and
direction, and to deter those who cannot from participating further in the organization’s
activities
5. To facilitate the translation of objectives into a work structure involving the assignment of
tasks to responsible elements within the organization
6. To specify organizational purposes and then to translate these purposes into objectives in
such a way that cost, time, and performance parameters can be assessed and controlled.

Characteristics of a Mission Statement

1. A Declaration of Attitude

A mission statement is more than a statement of specific details; it is a declaration of attitude and
outlook. It usually is broad in scope for at least two major reasons. First, a good mission statement
allows for the generation and consideration of a range of feasible alternative objectives and
strategies without unduly stifling management creativity.

Second, a mission statement needs to be broad to reconcile differences effectively among, and
appeal to, an organization’s diverse stakeholders, the individuals and groups of individuals who
have a special stake or claim on the company. Thus a mission statement should be reconcilatory.

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Ins. 1.Isaac S. Ronquillo, MBA,CB
 2. A Customer Orientation

A good mission statement describes an organization’s purpose, customers, products or services,

markets, philosophy, and basic technology. A good mission statement reflects the anticipations of
customers. Rather than developing a product and then trying to find a market, the operating
philosophy of organizations should be to identify customers’ needs and then provide a product or
service to fulfill those needs.

The following utility statements are relevant in developing a mission statement:

Do not offer me things.

Do not offer me clothes. Offer me attractive looks.
Do not offer me shoes. Offer me comfort for my feet and the pleasure of walking.
Do not offer me a house. Offer me security, comfort, and a place that is clean and happy.
Do not offer me books. Offer me hours of pleasure and the benefit of knowledge.
Do not offer me CDs. Offer me leisure and the sound of music.
Do not offer me tools. Offer me the benefits and the pleasure that come from making beautiful
things.
Do not offer me furniture. Offer me comfort and the quietness of a cozy place.
Do not offer me things. Offer me ideas, emotions, ambience, feelings, and benefits. Please, do not
offer me things.

Mission Statement Components

Mission statements can and do vary in length, content, format, and specificity. Most practitioners
and academicians of strategic management feel that an effective statement should include nine
components. Because a mission statement is often the most visible and public part of the strategic-
management process, it is important that it includes the nine characteristics:

 Customers
 Products or services
 Markets
 Technology
 Concern for survival, growth, and profitability
 Philosophy
 Self-concept
 Concern for public image
 Concern for employees

Writing and Evaluating Mission Statements

Perhaps the best way to develop a skill for writing and evaluating mission statements is to study
actual company missions.

There is no one best mission statement for a particular organization, so good judgment is required
in evaluating mission statements. Realize that some individuals are more demanding than others in
assessing mission statements in this manner.

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Ins. 1.Isaac S. Ronquillo, MBA,CB
Characteristics of a Good Vision

1. A vision must be clear and written in well articulated words

2. A vision must drive the organization to a common goal
3. A vision must be capable of attract / retains people to organization
4. A vision must guide the organization’s decision makers
5. A vision must establish a standard of excellence
6. A vision bridges the present to the future for an organization

Good vision statements have common components:

 It is written in the present, not future tense.

 It is summarized with a powerful phrase.
 It describes an outcome, the best outcome we can achieve.
 It uses unequivocal language.
 It evokes emotion. It is obviously and unashamedly passionate.
 It helps build a picture, the same picture, in people’s minds.

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Ins. 1.Isaac S. Ronquillo, MBA,CB