Chapter 1: A

Strategic
Management
Model
HAZELYN BIAG, MBA

INSTRUCTOR
The Reality of Dynamism
1. The 21st century epitomizes the reality of dynamism.
Dynamism - the quality of being characterized by vigorous activity and
progress
2. The 21st century is in a state of fluidity, it is not static
3. Current landscape of competition is threatening and daunting
4. Business needs to create its own impact in any part of the world.
5. Hypercompetition
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.
 A STRATEGIC MANAGEMENT MODEL

STRATEGIC
ORGANIZATIONAL
MANAGEMENT ORGANIZATIONAL
INPUT
PROCESS SUCCESS
-Management/
-Strategic Analysis -Strategic Intelligence
Employees
-Strategic Decision- -Strategic Thinking
-Financial Resources
Making -Organizational
-Facilities/Equipment
-Strategy Formulation Competitiveness
-Infrastractures
-Strategy -Comparative
-Process
Implementation Advantage
-Strategic Control -Strategic Performance
STRATEGIC MANAGEMENT
Strategic management is a continuous process of strategy
creation.
It involves strategic processes 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

Strategic analysis consists of a systematic

evaluation of variables currently existing in
the external and internal environments.
STRATEGIC DECISION-MAKING
Strategic decision-making is deliberately
bringing together the right resources for the right
markets at the right time.
STRATEGY FORMULATION
Strategy formulation is designing strategies on
the business and corporate levels.
STRATEGY IMPLEMENTATION
Strategy implementation is employing these
crafted strategies to achieve organizational set
goals and objectives.
STRATEGIC CONTROL
Strategic control is the application of an
appropriate monitoring and feedback system.
 THE STRATEGIC MANAGEMENT PROCESS

STRATEGIC
STRATEGIC ANALYSIS
INTELLIGENCE
STRATEGIC DECISION STRATEGIC
MAKING THINKING
STRATEGY ORGANIZATIONAL
FORMULATION COMPETITIVENESS

STRATEGY COMPARATIVE
IMPLEMENTATION ADVANTAGE

STRATEGIC
STRATEGIC CONTROL PERFORMANCE
STRATEGIC PLANNING
Strategic planning is defined as a 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.
TYPES OF STRATEGIC PLANS
•Medium/long-range plan - prepared in the context of the
coming three to five, ten or more years.
•Annual/yearly plan - short-term
RELATIONSHIP OF THE
VISION-MISSION-
GOALS OF AN
ORGANIZATION
ORGANIZATIONAL VISION
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.
MISSION STATEMENT
The 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.
ORGANIZATIONAL GOALS
Organizational goals are pursued to make the specified strategies
succeed. They vary and are essentially dependent on their respective
purpose and direction.
Goals have the following properties:
•Goals provide organizations focus and direction.
•Goals move organizations to action.
•Goals develop in organizations the trait of persistence.
 OBJECTIVES
Objectives are different from goals, in that they are micro and specific in perspective
They should possess the following characteristics:
•Objectives need to be clearly defined and formulated, carefully chosen, specific, and
definite.
•Objectives may be immediate or short-term.
•They need to be prioritized into a hierarchy of objectives.
•Objectives need to be realistic and attainable. They need to be flexible, consistent, and
strategic.
•Objectives need to be measurable overtime
 MAJOR CLASSIFICATIONS OF
OBJECTIVES
1. MARKET STANDING

2. INNOVATION

3. HUMAN RESOURCES

4. FINANCIAL RESOURCES

5. PHYSICAL RESOURCES

6. PRODUCTIVITY

7. SOCIAL RESPONSIBILITY

8. PROFIT REQUIREMENT
 VALUES AND VALUE SYSTEM
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 bases for the organization's actions and way of thinking.
Beliefs are cognitive manifestations 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.
The value system is characteristically broader in scope; aside from values, it includes other variables
such as the organization’s dreams, aspirations, interests, expectations, philosophies, as well as
leadership and management styles and ethical practices
 ORGANIZATIONAL CLIMATE AND
CULTURE
Organizational climate is often defined as the regular and repetitive patterns of attitudes
and behavior exhibited by employees of an organization. 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.
Organizational culture denotes a wide range of social phenomena. Culture, in the sense
that it is used hue. Can be understood as an idealized system because a system focuses on
types of meaning; represented by values, formal rules, knowledge, beliefs, and expressive
forms
THANK YOU AND GODBLESS!