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1st Strategic Management

This document discusses the strategic management process. It outlines the objectives of understanding strategic vision, the business landscape, developing competitive advantages, and understanding trends that impact competition. It then defines strategic management as a dynamic process involving commitment to decisions and actions to achieve corporate goals. Key steps in the strategic process are identified as assessing the current strategy and environment, setting goals and objectives, developing a team, collecting and analyzing data, and developing strategies. Porter's five forces model of competitive strategy is also introduced.

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Jojie Genayas
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17 views18 pages

1st Strategic Management

This document discusses the strategic management process. It outlines the objectives of understanding strategic vision, the business landscape, developing competitive advantages, and understanding trends that impact competition. It then defines strategic management as a dynamic process involving commitment to decisions and actions to achieve corporate goals. Key steps in the strategic process are identified as assessing the current strategy and environment, setting goals and objectives, developing a team, collecting and analyzing data, and developing strategies. Porter's five forces model of competitive strategy is also introduced.

Uploaded by

Jojie Genayas
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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STRATEGIC

MANAGEMENT
Chapter 1
OBJECTIVES:
After this lesson, you should be able to:
 Understand the strategic management process;
 Formulate strategic vision and mission of the company;
 Know the landscape of business in the new century;
 Know how the Philippines will be able develop competitive
advantage for its products;
 Understand the trends and condition that alter competition;
 Know how the internal and external factors affects the
condition of business;
 Develop environmental scanning strategies of the industry
as factor in return on investments.
Strategic Management

Is the dynamic process that is full of


commitment to decisions and actions to
deliver strategic competencies to achieve
the desired results in terms of corporate
profitability and growth.
• How to create products that attract and please
• How to position the company in the industry
• How to deploy the resources to build value
• How each function will be operated
• How to achieve performance targets
The strategic process is used to match
the ever-changing market environment
and the competitive structure of the
business involving material and
production resources.
Several Steps of Strategic Process:

1. Assess your current business strategy and


business environment.
2. Identify your company’s goals and
objectives.
3. Develop your team and schedule.

4. Collect data and analyze it.


5. Develop strategies to reach your goals.
The corporate achievements of successful
firms are the result of strategic competiveness
of the managers, employees and their
organization towards continuous improvement
and commitment to corporate goals and
targets.
• The corporate competiveness in the
new century is created primarily by the
emergence of the global economy and
the rapid technological changes in the
production of goods and services.
The competitive advantage could be divided into two different strategies;

1. Industry-Based Model
It refers to the analyses of the prevailing industry where
the firm has its competitive advantages over other firms
in the environment. The corporate strategy must be
focused on industry search and scanning of the most
profitable business activities that would give the best
returns on investments
2. Resource-Based Model

It refers to the analyses of the prevailing resources


available to the firm that are present in the internal
environment which could then be utilized in the
development of competitive advantage. This may refer to
the capabilities of the human resources that could be linked
to the need of the present technological development as
highly trained manpower could develop new products.
PORTER’S MODEL
The Five (5) Competitive
Forces that Shape
Strategy”
1. Competitive Rivalry
Several factors contribute to the intensity of competitive rivalry in an
industry:

• The number of competitors


• Industry growth
• Similarities in what's offered
• Exit barriers
• Fixed costs
2. Threat of New Entry
Here are factors in measuring how much new entrants threaten an
industry:

• Economies of Scale
• Product Differentiation
• Capital Requirements
• Access to Distribution Channels
• Regulations
• Switching Cost
3. Supplier Power

• Number of Suppliers
• Uniqueness
• Switching Costs
• Forward Integration
• Industry Importance
4. Customer Power
• Number of Customers
• Size of Each Order
• Switching Cost
• Price Sensitivity
• Informed Buyers
5. Threat of Substitutes

• Relative price performance


• Customer willingness to go elsewhere
• The Sense that products are similar
• Availability of close substitutes

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