FAR EASTERN UNIVERSITY

INSTITUTE OF ACCOUNTS, BUSINESS & FINANCE

Master in Business Administration

STRATEGIC MANAGEMENT
(MBA 705)
3rd Trimester, S.Y. 2019-2020

This module belongs to:

Rhaven Kurt L. Viray

____________________________________________________
MBA Student
Table of Contents Page
Title page

MBA 3rd Trimester S.Y. 2019-2020 Strategic Management – MBA 705 Prepared by: Antonino Arturo C Manahan, DBA; FRIBA; CPME 1
Table of Contents
Module 1 – May 2020
The Nature of Strategic Management 3
Objectives 4
Questions for discussion 4–6
Module 2 – May 2020
The Business Vision and Mission 7
Objectives 7
Questions for discussion 8 – 10
Module 3 – May 2020
The External Assessment 11
Objectives 11
Questions for discussion 12 – 15
Module 4 – June 2020
The Internal Assessment 15
Objectives 15
Questions for discussion 17 – 21
Module 5 – June 2020
Strategies in Action 22
Objectives 22
Questions for discussion 23 – 27
Module 6 – June 2020
Strategy Analysis and Choice 29
Objectives 29
Questions for discussion 30 – 34
Module 7 – July 2020
Implementing Strategies 35
Objectives 35
Questions for discussion 36 – 39
Module 8 – July 2020
Strategy Review, Evaluation, & Control 40
Objectives 40
Questions for discussion 40 -43
Midterm exam – June 15 to 20, 2020 (online written exam)
Final exam – August 3 to 8, 2020 (individual online defense)
Appendices
A – Strategic Management Format 44
B – Oral Defense (Rubrics) Scoring Sheet 46
C – Title Page Template 47
D – Approval Sheet Template 48
References

Module 1
The Nature of Strategic Management

Module objectives

MBA 3rd Trimester S.Y. 2019-2020 Strategic Management – MBA 705 Prepared by: Antonino Arturo C Manahan, DBA; FRIBA; CPME 2
After studying this module, you should be able to do the following:

1) Describe the strategic-management process.

2) Explain the need for integrating analysis and intuition in strategic management.
3) Define and give examples of key terms in strategic management.
4) Discuss the nature of strategy formulation, implementation, and evaluation activities
5) Describe the benefits of good strategic management.
6) Explain why good ethics is good business in strategic management.
7) Explain the advantages and disadvantages of entering global markets.
8) Discuss the relevance of Sun Tzu’s The Art of War to strategic management.
9) Discuss how a firm may achieve sustained competitive advantage.

-End-

Activity 1
The Nature of Strategic Management
- Distribution of modules, orientation, lecture and discussion

Requirements:
- Read, analyze and answer all questions/items given.

MBA 3rd Trimester S.Y. 2019-2020 Strategic Management – MBA 705 Prepared by: Antonino Arturo C Manahan, DBA; FRIBA; CPME 3
 - Prepare all answer/s in computerize form
- Each item is equivalent to (5) points, passing points is (3.5)

Questions for discussion

1) What is strategic management process?

- Strategic Management is the art and science of formulating and implementing, and evaluating
cross-functional decisions that enable an organization to achieve its objective. It is sometimes
used to refer to strategy formulation. Implementation, and evaluation, with strategic planning.
- The strategic management process consists of three stages.
o The strategy formulation
o The strategy implementation
o The strategy evaluation

2) Explain the need for integrating analysis and intuition in strategic management.

- Managers use their intuition and judgement into a strategic management analysis. Intuition comes
from experience, and it is the ability to acquire knowledge without conscious reasoning.
Managers and employees will have intuition from different kinds experiences and problems, for
example are stock brokers, traders. At first, they are “on the books” kind of person, but as time
pass, they experience different phenomena that cannot be taught by books. By integrating these
experiences into practical theories and “ways of working”, it can simulate how a strategic
management can duplicate what goes on the mind of a person by using intuition and analysis to
formulate effective strategies.

3) Define and give examples of key terms in strategic management.

- Competitive Advantage are any activity a firm does well compared to activities done by rival
firms. E.g., An example here in the Philippines is Minute burger, what’s so great about minute
burger is that unlike its competitors like, angel’s burger and burger machine. Minute burger’s
competitive advantage is social media. It utilized social media to market its products that most
millennials (the main users of social media) can relate to.

- Strategists are the individual that has the most responsibility on an organization. E.g., Henry Sy
the late owner of SM and its other affiliates. Henry Sy is a great example of strategists since he
was the man who pioneered the Mall industry in the Philippines, and he cannot achieve that
without formulating great strategies to conquer that industry.

- Vision and Mission Statements is the main ideology of an organization combining the vision or
“what we want to become”, with the mission or “what are we?” E.g., The vision and mission
statement of FEU; the vision is “Committed to the highest intellectual, moral and cultural
standards, it strives to produce principled and competent graduates”. While the mission is “It
nurtures a service-oriented community that seeks to contribute to the advancement of global
society.”.

- External Opportunities and Threats refers to the economic, social, cultural, demographic,
environmental, political, legal, government, technological, and competitive trends that could

MBA 3rd Trimester S.Y. 2019-2020 Strategic Management – MBA 705 Prepared by: Antonino Arturo C Manahan, DBA; FRIBA; CPME 4
 benefit or harm an organization. However, these are beyond the control of the company that is
why it is an external. E.g., New product from competitor and national catastrophes.

- Internal Strengths and Weaknesses are an organization’s controllable activities that are
performed. E.g., Changes in production, Marketing strategies.

- Long-Term Objectives is defined by specific results longer than one year. E.g., Getting a
Master’s degree in 2 years is a long-term objective.

- Strategies are the means by how long-terms objectives can be achieved. E.g., in relating to the
example above, the objective is to get a Material degree in 2 years, the strategy is studying in
FEU to attain that objective.

- Annual Objectives unlike Long-term objective, these are short-term goals in the organization
that they need to achieve to reach a long-term objective. E.g., implementing a new system in the
organization, the annual objectives are the training, beta testing, coordination with the employees,
and trial and finally implementation.

- Policies are the means by which annual objectives will be achieved. These include guidelines and
rules to support stated objectives. These are important in strategy implementation because it
allows consistency and coordination within organizational departments. E.g., When implementing
the examples above the annual objective needs to have its policies and rules to guide the decision
making towards the implementation of the new system.

4) Discuss the nature of strategy formulation, implementation, and evaluation activities.

- The strategy formulation includes the development of the vision and mission, identifying the
opportunities and threats, also the strengths and weaknesses, also choosing a particular strategy in
correlation with both external and internal forces.
- The strategy implementation is often called as the action stage, implementing employees and
managers to put formulated strategy into action. Successful strategy implementations rely on the
managers’ ability to motivate employees.
- The strategy evaluation is the final stage in the strategic management. Since all strategies
change because of the external and internal factors. The strategy needs to be evaluated and
changed depending on the necessity. There are three strategy evaluation
i. Review external and internal factors;
ii. Measure performance;
iii. Take corrective actions;

5) Describe the benefits of good strategic management.

- Allows an organization to be more proactive rather than being reactive. Another benefit is to help
organizations to formulate better strategies through a more systematic, logical and rational
approach to decision making. It also has the benefit of empowering individuals, since both
managers and employees must also be involved in strategy formulation, implementation, and
evaluation activities. To gain commitment for change is to let managers and employees

MBA 3rd Trimester S.Y. 2019-2020 Strategic Management – MBA 705 Prepared by: Antonino Arturo C Manahan, DBA; FRIBA; CPME 5
 participate in these strategy formulation activities. There is also a Financial and Non-Financial
Benefit.
o Financial Benefit – organizations that use a strategic management are generally more profitable
and successful it showed great improvement in sales, profitability and productivity. When firms
ten to do systematic planning, they are more prepared to the changes in external and internal
environments, they make more informed decisions.
o Non-financial Benefit. – Strategic Management enhances the problem-prevention capabilities of
organizations since it promotes the interaction between divisions and function levels. Managers
and employees feel empowered and that they have a big impact on the progress of their
organization. With this in mind it brings order and discipline, improved coordination,
communication decision making and synergy.

6) Explain why good ethics is good business in strategic management.

- One explanation is that being unethical can be expensive since there is more incurred cost rather
than minimizing cost. This is the result of dishonesty in the business, once sued the company
would pay millions of dollars for damages whether minimal or to such an extent that a whole
community is affected. That is why high performing companies generally exhibit high business
ethics because they do honest business practices and with it comes less lawsuits and costs from
unnecessary reparations to damages.

7) Explain the advantages and disadvantages of entering global markets.

- Advantages
o One of the greatest advantages is that firms can gain new customers for their products and service
which increases their revenue, firms can establish low-cost production facilities in other much
cheaper locations, reduced taxes, competition might not exist or less intense.
- Disadvantages
o The disadvantages of entering global market usually is about political causes, for examples are
different culture and demographic, local laws and government. Different culture might create
communication barrier, local competitors might be a problem such as the case of Jollibee to
McDonalds. Some countries have restrictions set by different superpower countries that the firm
will need to follow, if not followed the firm might be subjected to different lawsuits.

8) Discuss the relevance of Sun Tzu’s The Art of War to strategic management.

- Warfare is based on deception a firm must hide all of its advantages, and strike at the right time
when it is most advantageous, A firm must also know its limits, It is no use to face a company
much stronger than you are, to know a firms limits is to formulate a strategic plan to cater those
limits. Also, in the business world a firm must make sure to focus on having a speedy victory, this
is to save minimize unnecessary expenditures and exhausting all resources and strategies. A firm
must also know the enemy’s plan and shortcomings so that a firm can know what to focus on

MBA 3rd Trimester S.Y. 2019-2020 Strategic Management – MBA 705 Prepared by: Antonino Arturo C Manahan, DBA; FRIBA; CPME 6
 developing, and for me the most important tactic of all is to appoint skillful and knowledgeable
leaders to lead and take charge, every companies should be led by the best individuals,
embodiment the traits of what the firm and what a leader should have.

9) Discuss how a firm may achieve sustained competitive advantage.

- To achieve a sustained competitive advantage a firm must adapt to the changes of internal
and external trends, a firm must be fluid in its decision because even though a firm fixed
one problem there might arose multiple additional problem, A firm and its head, manager
and its employees, should always strive to create contingency plans to combat the
changes and that they will be prepared. This can be achieved by continuously
formulating, implementing, and evaluating strategies. A firm must always be at its feet
ready to face other problems especially when dealing with a competitor, A firm must
always be one step ahead against its competitor there should always be strategies at place.

Module 2
The Business Vision and Mission

Module objectives

After studying this module, you should be able to do the following:

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.

MBA 3rd Trimester S.Y. 2019-2020 Strategic Management – MBA 705 Prepared by: Antonino Arturo C Manahan, DBA; FRIBA; CPME 7
 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 and/or your organization.
6) Identify established mission statements using the nine criteria.

Activity 2
The Business Vision and Mission
- Lecture and discussion

Requirements:
- Read, analyze and answer all questions/items given.
- Prepare all answer/s in computerize from.
- Each item is equivalent to 5 points, passing points is 3.5 points

Questions for discussion

1) Describe the nature and role of vision and mission statements in strategic management.

MBA 3rd Trimester S.Y. 2019-2020 Strategic Management – MBA 705 Prepared by: Antonino Arturo C Manahan, DBA; FRIBA; CPME 8
 - A new business starts of as a set of beliefs that the owner visualizes as the public image of the
company; what will we be known for, and what we do. Soon enough those sets of beliefs will be
revised into vision and mission statement for the company .

o Vision statement answers the question “What do we want to become?” in the word vision itself it
is the goal of the firm, and this sets the image of the company to consumers.

o Mission statement sometimes called as a creed statement, answers the question, “what is our
business?” it symbolizes the set of beliefs, philosophy and business principle, it reveals and
defines what the firm wants to be and whom it wants to serve.

2) Discuss why the process of developing a mission statement is as important as the resulting
document.

- The process of developing a mission and vision creates an emotional bond and entitlement and a
sense of mission between the organization and its employees, an emotional bond comes when an
employee identifies the values and behavior of a firm, creating a send of commitment to the set of
beliefs and business practice of the firm.

3) Identify the components of mission statements.

- A mission has nine components:

o Customers
o Products or services
o Markets - Where does the firm compete?
o Technology - Whether if the firm is updated technologically
o Survival, growth, and profitability - is the firm committed to growth and financial stability?
o Philosophy – What is the set of beliefs, values, and priorities of the firm.
o Self-Concept – what is the firm’s competitive advantage
o Public Image – what it portrays to the community.
o Employees

4) Discuss how clear vision and mission statements can benefit other strategic management
activities.

- The importance of a vision and mission statement to a strategic management activity are to make
sure that the employees and managers understand the firm’s purpose or understand the sense of
direction the leaders want to go. It also prioritizes internal and external factors to provide and
formulate feasible strategies. It is also the basis for the allocation of resources, whether the firm
wants to be ethical in sourcing resources. Lastly it provides organization of work, departments
and common purpose.

5) Evaluate mission statements of different organizations or your organization using the nine
criteria.

- The mission (purpose) of Ericsson Telecommunication Inc., is as follow;

MBA 3rd Trimester S.Y. 2019-2020 Strategic Management – MBA 705 Prepared by: Antonino Arturo C Manahan, DBA; FRIBA; CPME 9
 o Our purpose is to empower an intelligent, sustainable and connected world. For more than a
century, we have been putting smart tools in the hands of people in every sector of our society,
creating intelligent technologies that drive positive change. We remain committed to this effort,
leaving no one behind.

- Using the nine components of a mission statement.

o The Customers are everyone, the world. Ericsson wants our customers to be connected using our
products and services.
o The Products or services are the smart tools that we’ve created to hand out to people in every
sector.
o The Market is every sector of our society.
o The Survival, Growth, and Profitability is evident in the phrase “For more than a century” It is
clear that Ericsson survived and is committed to growth.
o The Philosophy is to empower an intelligent, sustainable and connected world.
o The Self-Concept is by pioneering and creating intelligent technologies.
o The Public Image is again the passion to provide every sector with technology, and in result
connecting the world.
o The Employees are the ones that help to create that vision that Ericsson wants. Since without the
employees themselves, the company will never make their vision a reality.

6) Identify established mission statements given, using the nine criteria. Properly label the
corresponding criterion using the blank symbol “( )” provided. [Use red colored number in
this section.]

Dell Corp.

6.1) Dell’s mission is to be the most innovative consumer electronics products company (6),
in the world (3), reaching out to businesses, institutional organizations, and individual
customers (1). Dell strives to produce the most technologically advance (4) products to make
life and work easier and more enjoyable. Dell’s uniqueness centers around its tailoring of
products and services for individual customers (2). Dell employees (9) respect all laws,
values, and cultures wherever the firm does business (8). As America’s most admired firm,

MBA 3rd Trimester S.Y. 2019-2020 Strategic Management – MBA 705 Prepared by: Antonino Arturo C Manahan, DBA; FRIBA; CPME 10
 Dell strives to profitably grow (5) in all markets while contributing positively in every
community we call home (7).

Source: David, Fred R. (2007). Strategic Management 11th Edition, Case Instructor’s Manual. Pearson
Prentice Hall, Singapore. p.16.

Pepsi Co. (2005)

6.2) To be the world’s (3) premier consumer products company focused on convenient foods
and beverages (2). We strive for healthy financial rewards to investors (5) as we provide
opportunities for growth and enrichment to our employees (9), business partners, and the
communities (1) in which we operate. We have outstanding technological (4) and marketing
(7) systems to continually innovate and crat differentiated products for our customers (6)
worldwide. And in everything we do, we strive for honesty, fairness, and integrity (8).

Source: David, Fred R. (2007). Strategic Management 11th Edition, Case Instructor’s Manual. Pearson
Prentice Hall, Singapore. p.32.

-End-

Module 3
The External Assessment

Module objectives

After studying this module, you should be able to do the following:

1) Describe how to conduct an external strategic-management audit

2) Discuss 10 major external forces that affect organizations: economic, social, cultural,
demographic, environmental, political, governmental, legal, technological, and
competitive.
3) Identify key sources of external information, including the internet.
4) Discuss important forecasting tools used in strategic management.

MBA 3rd Trimester S.Y. 2019-2020 Strategic Management – MBA 705 Prepared by: Antonino Arturo C Manahan, DBA; FRIBA; CPME 11
 5) Discuss the importance of monitoring external trends and events.
6) Explain how to develop an EFE Matrix.
7) Explain how to develop a Competitive Profile Matrix (CPM).
8) Discuss the importance of gathering competitive intelligence.
9) Describe the trend toward cooperation among competitors.
10) Discuss the political environment in Philippines.
11) Discuss the global challenges facing Philippine firms.
12) Discuss market commonality and resource similarity in relation to competitive analysis.

Activity 3
The External Assessment

Requirements:
- Read, analyze and answer all questions/items given.
- Prepare all answer/s in computerize form.
- Each item is equivalent to 5 points, passing points is 3.5

Questions for discussion

1) Explain how to conduct an external strategic-management audit.

- To conduct an External strategic management audit, it must involve as many manager and
employees as possible, especially when individuals appreciate the opportunity to share ideas and
get a better view on their firm’s industry. First a company must gather information’s from all
external factors, by doing this it can provide the company a timely information, after is has been

MBA 3rd Trimester S.Y. 2019-2020 Strategic Management – MBA 705 Prepared by: Antonino Arturo C Manahan, DBA; FRIBA; CPME 12
 gathered it must be evaluated. Managers should create a priority list of these factors from 1 to 20
and among those prioritize the top 10 factors. Since it is essential to prioritize the most important
opportunity and threat to create a strategic planning.

2) Identify a recent economic, social, political, or technological trend [at least three factors]
that significantly affects [your choice of company/institutions/industry].

- An example would be is the current coronavirus outbreak since it affected our services
and sales that we provide worldwide, it is so difficult to operate in a time like this. One
technological trend is the invention and implementation of 5G worldwide, during the sea
games Ericsson along with smart utilized the Sea-Games to introduce 5G in the country.
A political trend would be China favoring its own brand of 5G by Huawei.

3) Identify two industries experiencing rapid technological changes and three industries that
are experiencing little technological change. How does the need for technological
forecasting differ in these industries? Why?

- Two industries experience rapid technological changes.

o Telecommunication industry – Since there is a technological race to stay

dominant in this market, by inventing new means of communication with a faster
speed it is sure that all of the countries and other businesses would buy their
services.

o Space industry – Since there are competing companies now like SpaceX and
Boeing and Blue origin. They realized that the market of satellites and space
travel is the next biggest market, since most telecommunication industry uses
satellites to pass on signals and data. That is why They need to be technologically
advanced to stay in this industry

- 3 industries experiencing little technological change

o Service Industry – Service industries such as massage parlor, hairdressing

industry requires little to none technology since they solely require services only a
person can give. It is no use to add a few technologies to this kind of industry
except for maybe a few.

o Taxi Industry – Again another service industry, even though there are companies
like uber and grab which utilized this kind of service, the taxi industry has no
technological change whatsoever since most of their income is based on rides and
rates. This differs greatly to the companies specified above since they started a
new industry altogether.

MBA 3rd Trimester S.Y. 2019-2020 Strategic Management – MBA 705 Prepared by: Antonino Arturo C Manahan, DBA; FRIBA; CPME 13
 o Funeral Industry – The funeral industry has been unchanged for years; a few
changes have been made but the process altogether has been the same. No
technological change has been advanced.

4) As the owner of a small business, explain how would you organize a strategic-
information scanning system? How would you organize such system in a large
organization?

- As a small business I would keep record of customer feedback and I would take those as
a next step for improvements. And also, to attend conferences to improve my business
but as a large organization a team should gather data by developing a system this can
result in an improved data quality and quicker results. Delegate tasks and responsibilities
is also important while evaluating all of the process in a timely manner.

5) Construct an External Factor Evaluation Matrix (hypothetical) for an organization of your

choice. Assign corresponding weights and ratings accordingly.

- The organization I am using for this EFE matrix is my company Ericsson.

External Factor Evaluation Matrix (EFE)

MBA 3rd Trimester S.Y. 2019-2020 Strategic Management – MBA 705 Prepared by: Antonino Arturo C Manahan, DBA; FRIBA; CPME 14
 Key External Factors Weight Rating AS
s s
Opportunities
1. Connectivity is a global need 0.05 4 0.20

2. There is a demand for connection 0.08 4 0.32

especially in rural areas

3. The company has been recognized as the 0.12 3 0.36

pioneer for internet.

4. Strengthen partnerships with different 0.15 3 0.45

companies
5. Advanced Technologies 0.10 4 0.40

Threats
1. Rivalry with Huawei to be dominant in 0.05 2 0.10
other countries.

2. Huawei provides a cheaper option than our 0.05 3 0.15

services.

3. Towers are prone to guerilla attacks from 0.13 3 0.39

terrorist group.

4. The recent outbreak slowed down 0.15 3 0.45

production and service

5. Unable to fix and provide services for 0.12 3 0.36

countries in need due to the outbreak.

1.00 3.18
Total Attractiveness Score

Analysis and interpretation:

- According to the results, the total weighted average score amounted to 3.18 which is
considered high than the average score of 2.50. This means that the strategies of Ericsson
and current ways of working is effective in handling those threats presented.

Strategic External Issues:

MBA 3rd Trimester S.Y. 2019-2020 Strategic Management – MBA 705 Prepared by: Antonino Arturo C Manahan, DBA; FRIBA; CPME 15
 - Ericsson even though has a high rating needs to create a strategy for its rival and
competitor because when left unchecked, Huawei might find an edge that can defeat
Ericsson. Ericsson need to also make sure that even though there is an outbreak now, to
do everything they can to continue servicing its customer especially connectivity is a big
need right now.

6) Develop a Competitive Profile Matrix (hypothetical) for your university, identify at least
ten critical success factors and then assign a corresponding weights and ratings
equivalence. Discuss level of importance and confidence accordingly.

Competitive Profile Matrix (CPM)

MBA 3rd Trimester S.Y. 2019-2020 Strategic Management – MBA 705 Prepared by: Antonino Arturo C Manahan, DBA; FRIBA; CPME 16
 FEU UST UE
Critical Success Factors Weight Rating Score Rating Score Rating Score
1.Location 0.10 3 0.30 3 0.30 3 0.30

2.Facilities 0.13 2 0.26 4 0.52 2 0.26

3.Infrastructure 0.08 2 0.16 4 0.32 2 0.36

4.Tuition fee 0.12 2 0.24 3 0.36 3 0.36

5.Technology 0.10 2 0.20 3 0.30 3 0.30

6.Faculty 0.07 3 0.21 3 0.21 3 0.21

7.Student Diversity 0.05 4 0.20 2 0.10 2 0.10

8.College Brand 0.12 3 0.36 4 0.48 3 0.36

9. Financial Position 0.13 3 0.39 4 0.52 3 0.39

10.Management 0.10 3 0.30 3 0.30 3 0.30

Totals 1.00 2.62 3.41 2.94

Analysis and interpretation:

- UST has a higher CPM compared to FEU and UE because of the higher rating for its
facilities and infrastructure and college brand and financial position. While UE scored
higher than FEU due to a higher rating on tuition fee. Technology, technology, and
faculty.

MBA 3rd Trimester S.Y. 2019-2020 Strategic Management – MBA 705 Prepared by: Antonino Arturo C Manahan, DBA; FRIBA; CPME 17