Strategic Management

- Strategic management is a set of decisions and actions that lead to the

formulation and implementation of a strategy so as to achieve the objectives of
the organization. It is a set of decisions and actions that lead to the formulation of
an effective strategy to achieve the objectives of the organization. It is a set of
managerial decisions and actions which determine the long-run performance of
an organization.

Strategic Plan

- a formalized document that describes business' goals, and the actions needed to
achieve them.

Environmental Scanning

- Is the study and interpretation of the forces existing in the external and internal
environment.

Business Plan

- business plan is another important tool in the implementation process. The

business plan is typically a short-term and more concrete document than the
strategic plan. It tends to focus more closely on operational considerations such
as sales and cash flow trends. Your business plan can help you set out actions
that drive growth and the implementation of your strategy.

Environmental Monitoring

- Process of tracking the environmental trends or sequence of events.

Horizontal Integration

- Is a strategy where the organization acquires another competing business to:

a) eliminate competition
b) expand its reach, expand its market demographically, and maintain its market status
as a: market leader, market challenger or market follower
c) Increase its revenues

Culture

- Culture is a communal divergence. It includes:

1) the trait of hospitality
2) the practice of bayanihan
3) takes care of their parents, old relatives, and siblings
4) Pakikisama and utang na loob
5) the habits of ningas kugon, maṅana, and Filipino time
6) the attitude of crab mentality and bahala na
7) the virtue of resiliency
8) the idea of kanya-kanya
9) the consciousness of being politically involved

Vertical Integration

- is the process of consolidating into an organization other companies involved in

all aspects of a product’s or a service process from raw materials to distribution.

Competitors

- Competitors are the business threats.

Categories of competition:
When companies:
1) sell exactly the same product or offer the same service
2) sell similar products or service
3) sell substitute products or service
4) sell different products but to the same market segment

Forward Integration

- when the organization buys distribution companies that are part of its distribution
chain. used to remove intermediary, thus, eliminating distribution costs

Strategic Intelligence

- Relevant organizational knowledge, abilities, foresight, and systems thinking

Political Forces

- Political independence/Changing governments

Power-driven countries fight wars to attain and maintain political supremacy; colonized
territories are waging their own wars to attain independence
- Terrorism/Suicide bombings
- Chemical and nuclear threats
- Global alliances

Strategic Performance

- High level of productivity characterized by efficiency

Supply Management

- includes the sourcing, ordering, and inventory storing of raw materials, parts, and
services.

Social Forces

- Changing social structures

Family size are decreasing in developed countries; larger family size in underdeveloped
countries

- Aging population/Demand for health services

Baby Boomers are greater in number (born in 1940’s) and they need more medicine
and health services

- Sophisticated lifestyles of people

The new generation are more demanding, complicated, varied, and unique; want to
own houses and live extravagantly

- Cross-cultural diversity
Global community is getting figuratively smaller; people are either working or migrating
to every part of the world

Value Chain

- Is a general term that refers to a sequence of interlinked undertakings that an

organization operating in a specific industry engages in

Community

- the intermixture of people coming from all walks of life with different “provincial
or city cultures,” different values, attitudes, aspirations, traditional beliefs,
standards of living, family backgrounds, religions, and educational attainments. It
is essentially heterogeneous but characteristically homogeneous in its end goal
of attaining quality life

Market Share

- Is the relative sales percentage of a company in relation to the total sales

percentage of the market in consideration
- this metric value gives a general idea of how the company stands with respect to
the market and its competitors
Strategic Planning

- It is a systematic process that helps to set an ambition of a business' future and

determine how best to achieve it.

Market Growth

- refers to an increase in demand over time. it may be high or low

Organizational Competitiveness

- an organization's ability to efficiently use its resources to offer products and

services that exceed customer expectations.

Strategy Gap Analysis

- looks at where your business is now, where it wants to be, and how to bridge the
gap between

Strategy Formation

- is the process of using available knowledge to document the intended direction of

a business and the actionable steps to reach its goals. This process is used for
resource allocation, prioritization, organization-wide alignment, and validation of
business goals.

Sourcing and Ordering

- In sourcing and ordering, value is generated when supplier relationships are

created and managed in delivering quality products, delivering on time, delivering
at competitive prices, providing good service back-up when needed, and keeping
promises.

Technological Forces

- Communication technology
Mobile phones, text messaging, fax messages, CCTV cameras, video conferencing,
etc.
- Computer-integrated business
Use of enterprise resource planning (ERP) in business operations
- E-banking
Convenience in doing bank transactions may it be intra-banking or international banking
- E-learning
Distance or online learning; open-university
- Digital medicine
Computer-guided robots perform surgical procedures
Inventory Management

- The role of inventory is to buffer uncertainty. It includes all purchased materials

and goods, partially completed materials and component parts, and finished
goods. The aim is to order the right quantity of SKUs at minimum inventory costs.

International Strategies

- Companies sell their excess products outside their home markets. Do

international business but focus in the home market.

Strategy Mapping

- visually communicates the strategic plan and high-level business goals.

Multinational Strategies

- When a company is involved in a number of markets outside the home country.

Sell competitive and distinct products and services that are suited to the
customer demands of different countries.

Suppliers

- Suppliers are the business partners. It refer to individuals and companies

engaged in the delivery of raw materials, machinery, technology, labor, expertise,
skills, and other forms of services.

Porter’s Five Forces

- The Five Forces model aims to help businesses assess how competitive a
market is. The model looks at:

- your customers' bargaining power - the higher it is the more downward

pressure on prices and revenue they will be able to exert

- your suppliers' bargaining power - the ability of suppliers to push prices up can
impact significantly on costs and profitability

- the threat of new competitors entering your market or industry - more

businesses competing makes it harder to retain market share and maintain price
levels

- the threat of customers switching to newer products and services - eg the

threat to DVD manufacturers posed by online video streaming
 - the level of competition between businesses in the market - this depends on a
wide range of factors, including the number and relative strength of the
businesses and the cost to customers of switching between them

Lead Time

- the span of time (in days) it takes for a stock to be delivered from the time it was
ordered

Transformational Process

- is a long-term change management process that is driven by the external

pressure to adapt to new conditions and requirements and meet business goals.
It involves radical changes to business processes and must be aligned with
company strategy.

SWOT Analysis

- is a high-level model often used at the beginning of the strategic planning

process. It identifies the internal and external factors that are favourable and
unfavourable to achieving a business goal:
• Strengths - aspects of the business that can help achieve the objective
• Weaknesses - aspects of the business that could hinder achieving the objective
• Opportunities - external factors that could help achieve the objective
• Threats - external factors that could hinder achieving the objective

Global Strategies

- The company treats the world as a whole, one market and one source of supply
w/ slight local variations

PESTLE Analysis

- is a fundamental tool for business strategy and planning. It is a method of

assessing your business' environment and its possible impact on the
performance of your company.
• Political - eg changes to taxation, trading relationships or grant support for businesses
• Economic - eg interest rates, inflation and changes in consumer demand
• Social - eg demographic trends or changing lifestyle patterns
• Technological - eg emerging technologies or productivity-improving equipment
• Legal - eg changes to employment law or to the way your sector is regulated
• Environmental - eg changing expectations of customers, regulators and employees on
sustainable development
Backward Integration

- where the organization buys one of its suppliers

- used to better control its supply chain and ensure a more reliable or cost-
effective supply of input