1 Module 1 – Strategic Analysis and Decision-Making

2 Module 1 – Strategic Analysis and Decision-Making

PROGRAM OUTCOMES
By the time of graduation, the students of the program shall be able to:
1. Articulate and discuss the latest developments in the specific field of practice.
2. Effectively communicate orally and in writing using both English and Filipino
3. Work effectively and independently in multi-disciplinary and multi-cultural teams.
4. Act in recognition of professional, social, and ethical responsibility.
5. Preserve and promote "Filipino historical and cultural heritage".
6. Perform the basic functions of management such as planning, organizing, staffing, directing and
controlling.
7. Apply the basic concepts that underlie each of the functional areas of business (marketing, finance, human
resource management, production and operations management, information technology, and strategic
management) and employ these concepts in various business situations.
8. Select the proper decision making tools to critically, analytically and creatively solve problems and drive
results.
9. Express oneself clearly and communicate effectively with stakeholders both in oral and written forms.
10. Apply information and communication technology (ICT) skills as required by the business environment.
11. Work effectively with other stakeholders and manage conflict in the workplace.
12. Plan and implement business related activities.
13. Demonstrate corporate citizenship and social responsibility.
14. Exercise high personal moral and ethical standards.
15. Analyse the business environment for strategic direction.
16. Prepare operational plans.
17. Innovate business ideas based on emerging industry.
18. Manage a strategic business unit for economic sustainability.
19. Conduct business research.
20. To participate in various types of employment, development activities, and public discourse particularly in
response to the needs of the communities one serves.

COURSE TITLE:
CBMEC 2- STRATEGIC MANAGEMENT

COURSE DESCRIPTION
The course introduces students to the process of developing and managing marketing strategy,
examining how firms create and sustain customer value from market analysis and product positioning to
communications and channel system design.

COURSE OUTCOMES (CMO)

In this course, you should be able to:
1. explain that marketing strategy provides the guidelines for action that are essential in delivering
superior customer value;
3 Module 1 – Strategic Analysis and Decision-Making

2. comprehend customers, competitors, and the market environment requires the active involvement
of the entire organization to gain and manage market knowledge decisively;
3. demonstrate the powerful technologies provide by the Internet and World Wide Web, corporate
intranets, and advance communication and collaboration systems for customer and supplier
relationship management underpin effective strategy process;
4. explain marketing is a major stakeholder in the essential organizational core processes-new
product development, customer relationship management, value/supply-chain management, and
business strategy implementation; and
5. describe the environmental, ethical, and corporate responsibility aspects of business practice are
critical concerns for individual executives as well as their companies, requiring management
direction and active involvement by the entire organization.

INTRODUCTION
This module provides an overview of strategic management. It introduces a practical, integrative
model of the strategic management process, and it defines basic activities and terms in strategic
management.

It also focuses on the concept and tools needed to evaluate and write business vision and mission
statement. It also provides a practical framework for developing and creating effective vision and mission
statement. Actual mission statements from large and small organization and for-profit and non-profit
enterprises are presented and critiqued.

Vision and mission statements often can be found in the front of annual reports. They often are
displayed throughout a firm’s premise and are distributed with the company information sent to
constituencies, the statement are part of numerous internal reports, such as loan requests, supplier
agreements, labour relations contracts, business plans, and customer service agreements.

This module is divided into two lessons:

Lesson 1 A strategic Management Model
Lesson 2 Challenges in the External environment

MODULE LEARNING OUTCOMES

In this module, you should be able to:
1. defines strategic management;
2. identify each of the components of the strategic management process and its corresponding
outcomes; and
3. perform environmental scanning.
4 Module 1 – Strategic Analysis and Decision-Making

LESSON 1: Strategic Management Model

SPECIFIC LEARNING OUTCOMES

In this lesson, you should be able to:
1. identify the strategic management model;
2. differentiate strategic analysis from strategic decision-making and strategic intelligence from strategic
thinking;
3. explain the meaning of strategic planning;
4. formulate a sample company vision, mission statement, and company goals and objectives; and
5. compare organization climate and organizational culture.

PRE-ASSESSMENT
True or False. Write T if the statement is correct and write F if the statement is wrong.

_______1. The 21st century epitomizes the reality of dynamism.

_______2. The certainty of change is universal and this foregone conclusion is largely experience by all
nations and peoples-whether developed or undeveloped, large or small, powerful or weak.
_______3. Strategic management is a continuous process of strategy creation.
_______4. Strategic analysis consists of a systematic evaluation of variables existing in the external and
internal environments.
_______5. Hypercompetition is a fundamental feature if the new economy.
_______6. Competitors continuously strive to outplay and outsmart each other.
_______7. If strategic analysis is accurately conducted, organizations can develop strategic intelligence.
_______8. Comparative advantage refers to the ability of an organization to produce a particular good or
service at lower marginal and opportunity costs that its competitors.
_______9. The strategic management process consists strategic analysis, strategic decision-making,
strategy formulations, strategy implementation, and strategic control.
_______10. Initially, an organization conducts an environmental scanning to determine where it is today.

LESSON MAP

Organizational Strategic Organizational

Input Management Success
•Management/Employees Process •Strategic Intelligence
•Financial Resources •Strategic Analysis •Strategic Thinking
•Facilities/Equipment •Strategic Decision •Organizational
•Infrastructures Making Competitiveness
•Processes •Strategy Formulation •Comparative
•Strategy Advantage
Implementation •Strategic Performance
•Strategic Control

The map above is an illustration of the strategic management process.

5 Module 1 – Strategic Analysis and Decision-Making

CORE CONTENTS

ENGAGE: Picture Analysis

Give at least two paragraph of your analysis on the image above.

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EXPLORE: Reading Concepts

THE REALITY OF DYNAMISM

The 21st century epitomizes the reality of dynamism. In fact, today’s milieu is in a state of fluidity. It
is not static. Rather, changes and fluctuations are happening in the surroundings. These actualities are
characterized by the occurrence of phenomenal situations, continuous challenges, and triggering forces that
provoke corresponding reactions. The certainty of change is universal and this foregone conclusion is largely
experience by all nations and peoples-whether developed or undeveloped, large or small, powerful or weak.

As a result, the current landscape of competition I highly threatening and daunting. With an
environment that is characterized by drive, energy, and pursuit and transformation, volatility is a ruthless
reality. Impermanence and unpredictability are certainties. Nothing is stable; neither is regularity a logical
expectation. Competition has gone beyond nations, people, cultures, geographic frontier, and industries. As
the global economy expand. Blurring boundaries, any business needs to create its own impact in any paper
of the world. Thus, it is urgent for organizations and business to strategize.
6 Module 1 – Strategic Analysis and Decision-Making

HYPERCOMPETITION
• Hypercompetition is a fundamental feature of the new economy. As the word implies, it carries a
note of overexcitement and agitation.
• Hypercompetition occurs when product/service offerings and technologies are so new that
standards become unstable and competitive advantage is not sustainable.
• It is a condition where strategic maneuverings have escalated to bigger business exposure, more
sophisticated marketing positioning, aggressive selling, and innovative products and services. Doing
business has become intense and more deliberate. It seems like a big waste not to discern and take
advantage of every opportunity.
• The business atmosphere is characterized by activities such as outdoing each other, surpassing
sales, taking competitors by surprise, capturing a bigger market share, winning the business battle,
and seizing the number one slot.
• In a strict sense, hypercompetition is a situation where both globalization and technology
collaborate to create a heightened cut-throat situation, it means that business compete with each
other whether they have same products, similar products, substitute products, and different products.
• Competitors continuously strive to outplay and outsmart each other. They need to devise ways and
means to survive and deal with this super competitive and turbulent reality.
• New value creation, competitive pricing, innovation in supply chain management, and high degrees of
quality are logical response of companies.
• In short, the name of the game today is tougher and smarter competition, quantitative and qualitative
organizational changes, and sustainable competitive advantage.
• In this hypercompetitive environment, only the most adaptive and nimble organizations will survive.
Thus, there is the need to strategize

STRATEGIC MANAGEMENT DEFINED

• Strategic management is a continuous process of strategy creation. It involves strategic process like
strategic analysis and decision-making, strategy formulation and implementation, and strategy control
with the primary objectives of achieving and maintaining better alignment of corporate policies
priorities and success.
• Strategic analysis consists of a systematic evaluation of variables currently existing in the external
and internal environments while strategic decision-making is deliberately bringing together the right
resources for the right markets at the right time.
• Strategy formulation is designing strategies on the business and corporate levels.
• Strategy implementation is employing these created strategies to achieve organization set goals
and objective while strategic control is the application of an appropriate monitoring and feedback
system.
• Strategic management is defined as the science of creating, executing, and evaluating cross-
functional decisions to enable an organization to achieve its goal and objectives, the components of
the strategic management process have to be effective.
7 Module 1 – Strategic Analysis and Decision-Making

• As shown in Figure 1.1, output may materialize when each of the components of the strategic
management is appropriately executed.

• If strategic analysis is accurately conducted organizations can develop strategic intelligence. Like an
antenna, strategic intelligence is the capability of an organization to possess relevant and related
knowledge, abilities, foresight, and systems thinking, such that it is able to assess its own strengths
and vulnerabilities, the pressing challenges confronting the organization, as well as the trends and
opportunities existing in the environment.
• If strategic decision-making is correctly affected, organizations can acquire the capability of thinking
strategically.
• Strategic thinking is the cognitive process of competently and analytically weighing factors and
arriving at critical decisions in the context of the current milieu of which an organization is part.
• If strategy formulation is uniquely designed and effected communicated, organizations have greater
possibilities of attaining organizational competitiveness.
• Organizational competitiveness pertains to the ability of any business/company to utilize its
resources optimally and sustainably for maximum performance and productivity.
• If strategy implementation is efficiently employed organizations can achieve comparative advantage.
• Comparative advantage refers to the ability of an organization to produces a particular good or
service at lower marginal and opportunity costs than its competitors.
• If strategic control is productively monitored, organizations can realize strategic performance.
8 Module 1 – Strategic Analysis and Decision-Making

• Strategic performance is the accomplishment of a high level of productivity tht is characterized by

efficiency in the context of lean and quantifiable management.

• The strategic management model (figure 1.2) shows the relationships between and among the input
process and output. The input in this model includes organizational variables like management and
employees, financial resources, facilities and equipment, infrastructures, and processes. The strategic
management process consists strategic analysis, strategic decision-making, strategy formulation,
strategy implementation, and strategic control.
• When these specific processes are executed and managed creativity, distinctly, and strategically, the
organization can ultimately achieve organizational success. In particular, the output are exhibited in
the strategic intelligence acquired, strategic thinking mode developed, organizational
competitiveness, comparative advantage, and strategic performance attained by the organization.

STRATEGIC PLANNING
Oftentimes, the word strategic planning is more popular than strategic management. Essentially,
these two words are the same. In terms of purpose, both strategic management and strategic planning have
the same goals and objectives, that is, to devise a strategic mode of preparing, addressing and steering
organizations to where they want to go. Particularly, both undertakings endeavour to understand the strategic
position of organizations-their set goals choices, and deliberate and calculate strategies. Furthermore both
strategic management and strategic planning use the same processes to attain their goals.
• On the other hand, strategic management differs from strategic planning, in that the former is tackled
in the context of an academic environment where it is approached and treated theoretically while the
latter is the buzzword in the business world.
• Practitioners and organizations conduct strategic planning yearly or as often as they feel the need to
do so. Secondly, strategic management generally presents all the possible strategic approaches and
techniques that organizations can avail of.
9 Module 1 – Strategic Analysis and Decision-Making

• It is conducted with a view of the individuality and distinctiveness of the organization, its current
conditions, specific needs, and desired outcomes. In this way we can say that strategic management
is the springboard of strategic planning.
• Strategic, management is a generic approach while planning is a distinct and focused approach that
is unique to the specific organization.
• Strategic planning is defined as continuous, repetitive and competitive process of setting the goals
and objectives that an organization aims to attain, defining the means to achieve them, and assessing
the best way to realize them in the context of the prevailing environment while measuring
performance through set standards and periodically but continuously conducting reassessments.
• Strategic planning exhibits the following properties:
o It generates the blueprint of what the organization intends to accomplish.
o The strategic plan presents the grand scheme of the organization and outlines all the set
activities ranging from the organizational to the department level. It formalizes all plans with
respect to type and extent.
o It is the process of developing a strategic fit between the organization’s goals and capabilities
in the context of changing opportunities.
o It is a process that involves carefully delineated steps. As stated in the defined, strategic
planning is structure in that it begins with reviewing the environment, setting goals, adopting
and monitoring strategies, and continuously redesigning them as the needs arise.
o It is proactive, in that it is written in the context of anticipated future realities. Strategic planning
does not make future decisions. Instead, plans are made in anticipation of future changes and
developments.
o It is a philosophy because it evolves a dynamic way of conducting and managing an
organization. Strategic planning involves a unique a way of thinking and doing things. It is an
intellectual exercise that embraces a belief that convinces organizations of their worth and
importance. In other words, values are integrated within the philosophy of an evolving
organizational culture.
o It links the organizational plan with functional and operational plans. Strategic planning speaks
of two types of planning: (a0 the organizational grand plan; and (b) the departmental; tactical
plans.
o It is intricately interwoven within the defined managerial functions of organizing, directing,
staffing, and controlling, although strategic planning is a strictly formal and separate function
of management, it is subtly intertwined in all the other functions and responsibilities of a
manager. In other words, no manager can fully accomplish his/her responsibilities effectively if
strategic planning is disregarded or overlooked.
o It necessitates the leadership and support of top management and, at the same time,
employee participate and commitment. Successful implementation of strategic planning is
largely dependent on responsibility, support and sustained leadership couple with acceptance
and involvement of employees. There should be synergistic interrelationships between
department and intra-relationships within departments.
10 Module 1 – Strategic Analysis and Decision-Making

TYPES OF STRATEGIC PLANS

There are two principal types of plans:
1. Medium/log-range plan – prepared in the context of the coming three to five, ten or me years. It
describes the major factors or forces that affect the organization’s long-term objectives, strategies,
and resources required.
2. Annual/yearly plan – short-term; succinctly describe the organization’s present situation, its
goals and objective, strategies, monitoring mechanisms, and the budget for the year ahead.

Whether the plan is long-range or annual, it can be strategic when the organization formulates its
action plans and take advantage of opportunities in the constantly changing environment while maintaining a
tactical alignment between the organization’s goals, capabilities, and opportunities. The steps involved in
strategic planning are iterative, cyclic, and integrative. They include:
1. making a situation audit to ascertain where the organization is today;
2. stating the respective goals and objectives of the organization, the values and value systems it
espouses, its business definition, and its corresponding strategy statements to determine where it
wants to go;
3. delineating appropriate strategies to be carried out in order to help direct the organization to
where it wants to be;
4. identifying and then choosing the soundest strategy to determine the best way for the
organization to be where it wants to be and to achieve its goals;
5. monitoring the implementation of strategies to erasure performances; and
6. conducting periodic and continuous reassessment in order to implement improvements and
suggested changes.

The steps in strategic planning will be tackled in detailed in the next lessons. Initially, an organization
conducts an environmental scanning to determine where it is today. Then, with respect to the organization’s
vision, mission, goals, and objectives, as well as its value system, apt strategies are identified to help direct
the organization to where it wants to go.

There can be more than one strategy of choice. Once the studied strategies are enumerated, the best
strategy that will significantly bring about the achievement of desired outcomes is specified for
implementation. Concomitant to the process of implementing the strategy/strategies, the monitoring system
has to set in place. Periodic assessments then follow to determine whether the chosen strategies were
worthwhile and effective.

NEED FOR STRATEGIC PLANNING

Why is there a need for strategic planning? As earlier states, the reality of dynamism, complexity, and
hypercompetition characterizes today’s environment. To survive, organizations need to plan carefully and
efficient implementation, thus, leading to the attainment of their set objective. The benefits of designing and
putting into effect a strategic plan cannot be overemphasize.
11 Module 1 – Strategic Analysis and Decision-Making

STRENGTHS AND LIMITATIONS OF STRATEGIC PLANNING

Strategic planning defines an organization’s vision, mission, and set objectives. It provides
organizations the opportunity to assess the milieu ad specify strategic to achieve their goals. Strategic
planning helps organizations to stay focused. It makes things happen.
• Furthermore, strategic planning helps reduce the chances of committing mistakes, thus increasing the
organization’s efficinecy.
• Strategic planning helps in the more efficient allocation of organizational resources, better
collaboration among cross-department employees and functional units, and communication between
managers/supervisors of all levels.
• Lastly, when cautiously, clearly, and proactively undertaken, strategic planning provides leverage and
competitive advantage to the organization.
• While strategic planning has its advantages, it also has its limitations. Although conducted yearly or
even more often, the strategic plan prepared is some instances are good only “in paper”.
• Some organization fail to follow faithfully their prepared strategic plans. If in cases these strategic
plans are followed religiously, some organizations may not be flexible enough to make the needed
adjustments and realignments due to inevitable or forthcoming extern; or internal; challenges.
• Similarly, conducting strategic planning session may entail costs that can be expensive to
organizations.

ORGANIZATIONAL VISION
To help organizations achieve strategic direction, they need to articulate and have a commonality in
vision, mission, and goals. The interrelationships between ad among these three variables are essential in
the organizations’ thrust of achieving competitiveness.

• The organizational vision is an inspirational statement of what the organization hopes to achieve at
some point in the future. It is the image of what an organization desires to achieve.
• It is short and succinct, but it carries an extraordinary force that will stir, motivate and inspire
employees to work and refocus toward its desired optimal future state.
12 Module 1 – Strategic Analysis and Decision-Making

• Having a strong sense of vision can move the organization to be what it wants to be. Like an unseen
force, the organizational vision binds the company and its employees together.
• An example of vision statements is: “An educational institution ablaze with the Spirit of Excellence.”
This is the vision statement of the educational institution, college of the Holy Spirit Manila.
• The statement energizes the administrators, faculty, students, and staff. It brings singleness in their
desire and coherence in their efforts, although difficult and in fact, not measurable, the organizational
vision is an effective mode of binding everyone to a company’s ultimate goal.

MISSION STATEMENT
• The mission statement differs from the organizational vision.
• The mission statement defines the current purpose of an organization; it answers what the
organization does, for who it is done, and how it does what it does.
• The mission statement of the college of the Holy Spirit Manila is as follows: “We build through
Christian and holistic formation, new generation of responsible citizens who are agents of
transformation”. Here, what the organization does is “to build”; it does this “for new generation of
responsible citizens”; and how it does is “through Christina and holistic formation.”
• Mission statements are likewise short and easy to remember. It gives employees a better perspective
on how their tasks contribute to the attainment of organization goals. Oftentimes, vision statements
are more enduring compared to mission statements.
• Mission statements are expected to change in the context of shifting economic realities or unexpected
circumstances like callings, threats, and even opportunities.

Vision-Mission of the college of the Holy Spirit Manila

Vision: An educational institution ablaze with the Spirit of Excellence
Mission: We build thorough Christian and holistic formation, new generations of responsible
citizens who are agents of transformation.
Strategic Goals
In living out the ideals of St. Arnold Janssen, CHSM aims at the total formation of authenticity
Christian Filipinos who are:
• humane and committed to the care of creation;
• professionally competent and dedicated to service;
• socially and critically conscious of the realities of life;
• motivated to proactively respond to the call of the times; and
• just and other-centered leaders.

ORGANIZATIONAL GAOLS AND OBJECTIVES

To operationalize the mission statement, organizational goals and objectives are defined. All
organizational have set goals. These are referred to as organizational goals.
• Organizational goals are pursued to make the specified strategies succeed. They vary and are
essentially dependent on their respective purpose and direction. One of the implied basic goals of any
13 Module 1 – Strategic Analysis and Decision-Making

organization is to use economic resources efficiently and effectively such that survival, if not profits, is
at least secured, thus ensuring the continuity of the organization.
• Goals are macro, encompassing in perspective, and prospective in nature.
• In fact, goals represent the overall vision of an organization. By their very nature, goals have the
following properties:
1. Goals provide organizations focus and direction. They neatly converge toward the purpose of any
time, thus, streamlining all unnecessary and redundant considerations.
2. Goals move organization to action. Because goals have to be attained, organizations are
motivated to function and perform toward their vision.
3. Goals develop in organizations the trait of persistence. Thus, organization continue tp persevere
until they achieve their desired success.

Nevertheless, for goals to be attained, they have to be supported by objectives. Objectives are
different from goals, in that they are micro and specific in perspective. They should possess the following
characteristics:
1. Objectives need to be clearly defined and formulated, carefully chosen, specific, and definite.
2. Objectives may be immediate or short-term.
3. They need to be prioritized into a hierarchy of objectives.
4. Objectives need to be realistic and attainable. They need to be flexible, consistent, and strategic.
5. Objectives need to be measurable over time.

The relationship between goals and objectives can be concretely illustrated. In figure 1.4, organization
have overall referred to as the organizational goal. To support and achieve this grand goal, objectives are
enumerated. These mentioned objectives are actually the goals of the respective departments or business
units that will likewise have their own objectives. Because of these interrelationships, objective’s need to be
consistently aligned and be within the framework of the given goal.

Strategic objectives are, in general, externally focused. According to Peter Drucker (2008), objectives
fall into eight major classifications:
1. Market standing (e.g., desired share of the current and new markets);
2. Innovation (e.g., development of new goods, services, and of skills and methods required to
supply them); human resources (e.g., selection and development of employees);
3. Financial resources (e.g., identification of sources of capital and their uses);
14 Module 1 – Strategic Analysis and Decision-Making

4. Physical resources (e.g., equipment and facilities and their uses);

5. Productivity (e.g., efficient use of the resources relative to output);
6. Social responsibility (e.g., awareness and responsiveness to the effects on the community of the
stakeholders); and
7. Profit requirements (e.g., achievement of measurable financial well-being and growth)

VALUES AND VALUE SYSTEM

• Organizations are guided by values, which vary from one organization to another.
• Values are inherent roots of motivation within an individual, an organization, a community, or a
nation. They are by nature, ingrained and thus, are more stable and enduring. They are both
intellectual and behavioral, serving as base for the organization’s actions and way of thinking.
• Values are generally exhibit in two different ways, namely, beliefs mad attitudes.
• More particularly, beliefs are cognitive manifest while attitudes are characteristically behavioral.
• They are fundamental and intricately integrated in the particular organization’s value system. Take
note that the values projected by organizations are largely dependent on any or all of the following:
the stockholders, the Board of Directors, and the top management.

Strictly speaking, the values of an organization are not synonymous to its value system. The value
system is characteristically broader in scope; aside from values, it includes other variables such as the
organization’s dreams, aspirations, interest, expectations, philosophies, as well as leadership and
management styles and ethical practices. Moreover, the value system indicates the hierarchy of values
ranked by organizations. Because values are distinct, they differ from one organization to another. This
explains why one organization may be perceived as socially and community-active, while another is
business-oriented. Hence, the importance of these value qualities are value system for organizations cannot
be underestimated.

ORGANIZATIONAL CLIMATE AND CULTURE

The concepts of organizational climate and culture are interrelated, interdependent, and sequential.
They are interrelated, in that organizational climate is often defined as the regular and repetitive patterns of
attitudes and behavior exhibited by employees of an organization. It is a measure of the health of an
organization. It manifests whether its employees are happy, hard working. and motivated, or otherwise;
15 Module 1 – Strategic Analysis and Decision-Making

whether good interpersonal relationships exist between and among different levels of management; and
whether the work environment is acceptable and conducive to productivity, Organizational climate is easier to
assess and change. It lends to flexibility. It precedes and somehow contributes to the solidification of the
culture of an organization.
• On the other hand, organizational culture has been variously defined (Hofstede 1980a; Schein 1990).
• Organizational culture denotes a wide range of social phenomena, including an organization's
customary dress, language, behavior, beliefs, values, symbols of status and authority, myths,
ceremonies and rituals, and modes of deference and subversion; all of which help to define an
organization's character and norms (Scott et al. 2003).
• Culture, in the sense that it is used here, can be understood as an idealized system (Schein 1999)
because a system focuses on types of meanings represented by values, formal rules, knowledge,
beliefs, and expressive forms (Pettigrew 1990; Parker 1992; Patrick 2010).
• The conceptual aspect perceives organizational culture as a system of knowledge and common
values which can be exhibited and evaluated similarly by people even with different backgrounds and
at different levels within the organization.
• Thus, organizational culture is more solid, stable, and long-term because it presents the
organization's culture from its inception to where it is, showing how the culture of an organization
evolved through the years.
• The organizational culture is largely and generally influenced by the leadership of the top
management.

EXPLAIN: Review Questions

Intense comprehension of the context
1. How will you describe in your own words the reality of dynamism? Cite examples to prove why the
environment is considered dynamic.
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2. How will you define strategic management?

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3. What roles do organization inputs play in the attainment of the success of an organization? Identify
each of these inputs.
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16 Module 1 – Strategic Analysis and Decision-Making

4. Differentiate strategic analysis from strategic decision-making. Give an example.

5. Explain in what ways strategic management and strategic planning are similar. In what ways are the
two different?
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6. Define organization vision by using an example of your own.

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7. Why is the mission statement important to an organization?

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TOPIC SUMMARY
In this lesson, you learned that:
• The 21st century epitomizes the reality of dynamism. In fact, today’s milieu is in a state of fluidity. It is
not static. Rather, changes and fluctuations are happening in the surroundings. These actualities are
characterized by the occurrence of phenomenal situations, continuous challenges, and triggering
forces that provoke corresponding reactions.
• Strategic management is a continuous process of strategy creation. It involves strategic process like
strategic analysis and decision-making, strategy formulation and implementation, and strategy control
with the primary objectives of achieving and maintaining better alignment of corporate policies
priorities and success.
17 Module 1 – Strategic Analysis and Decision-Making

• Strategic planning defines an organization’s vision, mission, and set objectives. It provides
organizations the opportunity to assess the milieu ad specify strategic to achieve their goals. Strategic
planning helps organizations to stay focused.
• To help organizations achieve strategic direction, they need to articulate and have a commonality in
vision, mission, and goals. The interrelationships between ad among these three variables are
essential in the organizations’ thrust of achieving competitiveness.
• The mission statement differs from the organizational vision. The mission statement defines the
current purpose of an organization; it answers what the organization does, for who it is done, and how
it does what it does.
• The concepts of organizational climate and culture are interrelated, interdependent, and sequential.
They are interrelated, in that organizational climate is often defined as the regular and repetitive
patterns of attitudes and behavior exhibited by employees of an organization.

REFERENCES

• Young, Felina C. Strategic Management Made Simple. Rex Book Store. 2016.m
• Retrieved from: https://www.google.com/search?q=images+on+understanding+why+customer+buy+
products&oq=images&aqs=chrome.0.69i59l2j69i57j69i59j0i131i433i512j0i433i512j0i131i433i512j0i13
1i433j0i433i512j0i512.4958j0j15&sourceid=chrome&ie=UTF-8ag:Retrieved on February 28, 2022.-
photo/businessman-hand-moving-gold-chess