STRATEGIC MANAGEMENT

(Strategic Mngt Model)

The major content of this presentation draws from the book of Dr. Felina C. Young. In particular, Young,
Felina C. (2015). Strategic Management Made Simple, Rex Book Store Inc. (RBSI).
Learning Objectives
• Define Strategic Management
• Identify the components of
strategic management
process and its outcomes.
• Explain the meaning of
strategic planning.
• Compare organization
climate and organizational
culture
Reality of Dynamism
 The 21st century is in a state
of fluidity, it is not static
 Current landscape of
competition is threatening
and daunting
 Business needs to create
its own impact in any part
of the world.
 Hypercompetition
What is Strat. Mngt?
• A continuous process of
strategy creation:
1. Strat. Analysis
2. Strat. Decision-making
3. Strat. Formulation
4. Strat. Implementation
5. Strat. Control.
1. Strategic Analysis

STRATEGIC STRATEGIC
ANALYSIS INTELLIGENCE

• Strategic Intelligence is the capability of an

organization to possess relevant and related
knowledge, foresight, and systems thinking,
such that it is able to assess its own strengths
and weaknesses, challenges, threats and
opportunities existing in the environment.
 Ariel Finally
7.50 campaign
consumer after consumer
told P&G Philippines that
they know it is the most
superior laundry detergent
in the market. However a lot
of them said that they found
the price point too high,
especially for the smallest
sachet. This, among the
reasons, led to the highly
successful campaign.
2. Strat. Decision-Making
STRAT.
STRATEGIC
DECISION-
MAKING THINKING

• Strategic thinking is the cognitive process of

completely and analytically weighing factors
and arriving at critical decisions in the
context of the current state of which the
organization is part.
3. Strat. Formulation

STRATEGIC ORGANIZATIONAL
FORMULATION COMPETITIVENESS

• Organizational Competitiveness is the ability

of every business or company to utilize its
resources optimally and sustainability for
maximum performance and productivity.
4. Strat. Implementation

STRATEGIC COMPARATIVE
IMPLEMENTATION ADVANTAGE

• Comparative Advantage is the ability of the

organization to produce a particular good or
service at lower marginal and opportunity
costs than its competitors.
5. Strat. Control

STRATEGIC STRATEGIC
CONTROL PERFORMANCE

• Strategic Performance is the accomplishment of a

high level of productivity that is characterized by
efficiency in the context of lean and quantifiable
management.
 STRATEGIC MANAGEMENT MODEL

ORGANIZATIONAL
INPUT ORGANIZATIONAL
OUTPUT/ SUCCESS
STRAT. MNGT
• Management/ PROCESS • Strategic
Employees Intelligence
• Financial • Analysis • Strategic Thinking
Resources • Decision-making • Organizational
• Facilities/ • Formulation Competitiveness
• Implementation • Comparative
Equipment • Control Advantage
• Infrastructures • Strategic
• Processes Performance
Strat. Planning VS Strat. Mngt
 Essentially, these terms are the same. In terms of
purpose, both have the same goals and objectives, that
is, to devise a strategic mode of preparing organizations
to where they want to go. Both use the same process to
attain goals.
 Strat. Management is tackled in the context of an
academic environment, its approach is theoretical.
 Strat. Planning is a buzzword in business; practitioners
and organizations conduct Strat. Planning yearly or as
often as they feel the need to do so.
Strat. Planning VS Strat. Mngt
 Strategic Management presents all possible
strategic approaches and techniques that
organization can avail of, it is the springboard
of Strat. Planning.
 Strategic Management is a generic approach
while Strategic Planning is a distinct and
focused approach that is unique to specific
organization.
STRATEGIC PLANNING
STRENGTHS
• Defines organizations VMGO
(Vision, Mission, Goals &
Objectives).
• Helps organizations stay focused,
reduces chances of committing
mistakes, thus, increasing
efficiency
• Helps in efficient allocation of
resources
• Provides leverage and competitive
advantage to organizations
LIMITATIONS
• Sometimes only good ‘in paper’
and failed to follow faithfully the
prepared strategic plans.
• Some organizations may not be
flexible enough to make the
needed adjustments and
realignments due to internal and
external challenges.
• Planning entails costs that can be
expensive to organizations.
Why there is a need for
Strategic Management?
ORGANIZATIONAL VISION
• an inspirational statement of what the
organization hopes to achieve in the future.
• It is an image of an organization’s desire, it
is short and succinct, but carries an
extraordinary force that will stir, motivate,
and inspire employees to work.
• Like an unseen force, Vision binds the
company and its employees together.
MISSION STATEMENT
• Defines the current purpose of an
organization; it answers what the
organization does, for whom it is done and
how it does what it does.
• It gives employees a better perspective on
how tasks contribute to the attainment of
organizational goals.
• Is expected to change in the context of
shifting economic realities.
GOALS & OBJECTIVES
• To operationalize the mission statement,
organizational goals are defined.
• Goals vary and are essentially dependent
on their respective purpose and direction.
• Goals represent the overall vision of the
organization
• Goals move the organizations to action!
• For GOALS to be attained, they have to be
supported by OBJECTIVES, which are micro and
specific in perspective.

GOAL

OBJECTIVE
3
OBJECTIVE
1
OBJECTIVE
2

OBJECTIVE
OBJECTIVE 6
4
OBJECTIVE
5
 OBJECTIVES CLASSIFICATION
(Drucker 2008)
1. Market Standing (e.g., desired market share)
2. Innovation (e.g., development of new goods)
3. Human Resources (e.g., selection & development)
4. Financial Resources (e.g., identify sources of capital)
5. Physical Resources (e.g., equipment and facilities)
6. Productivity (e.g., efficient use of resources)
7. Social Responsibility (e.g., awareness to effects on community)
8. Profit Requirements (e.g., achievement of financial growth)
VALUES
• Values are inherent roots of motivation within an
individual, organization, community or a nation.
• They are both intellectual and behavioral, serving
as bases of for the organization’s actions and way
of thinking.
• Exhibited in two ways:
1. Beliefs- cognitive manifestations
2. Attitudes- characteristically behavioral
TAKE NOTE: The values projected by organizations are largely dependent
on Stockholders, Board of Directors, and Top Management.
VALUE SYSTEM

VALUE SYSTEM

ETHICAL
VALUES PRACTICES

INTERESTS EXPECTATIONS

LEADERSHIP PHILOSOPHIES
STYLES

DREAMS/
ASPIRATIONS
ORG. CLIMATE & CULTURE
• ORG. CLIMATE- the regular and repetitive patterns
of attitudes and behavior exhibited by employees of
an organization. It is the measure of health of an
organization.
• ORG. CULTURE- denotes a wider range of social
phenomena, including organization’s customary
dress, language, behavior , beliefs, values, symbols
of status and authority, myths, ceremonies and
rituals, and modes of deference and subversion
(Scott, et al. 2003)