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I. Introduction

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5 views

I. Introduction

Uploaded by

Mico Ugalde
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Unit 1:

General Business Policies/Strategic


Management: An Overview
Learning Objective:
At the end of the unit, student is able to:

• identify the origin of policies, procedures and rules and distinguish


the difference between them;
• list down the steps in formulating the implementing policies;
• identify the process on how to integrate objectives, strategies and
policies;
• define strategic management and strategic planning and explain the
purpose and process involved;
• identify the elements of strategic management model and their inter
relationship; and
• explain the effect of external environment on the planning process.
Overview of strategic management

• Strategic management
– Consist of the analysis, decisions and
actions an organization undertakes in order
to create and sustain competitive
advantage
Overview of strategic management

• Characteristics of strategic decisions


– strategic issues requires top management
decisions
– requires large amount of the firm’s resources
– affects the firm’s long term prosperity
Overview of strategic management

• Characteristics of strategic decisions


– future oriented
– have multifunctional or multi-business
consequences
– requires a consideration of the firm’s
external environment
Overview of strategic management

• Levels of strategic decisions

TOP

MIDDLE

LOWER
Benefits of strategic management

– decisions can be drawn from best


available alternatives
– involvement of employees improves their
understanding of every strategic plan
– enhance the firm’s ability to prevent
problems
– reduced resistance to change, gaps and
overlaps in activities
STRATEGIC MANAGEMENT
PROCESS
THE PROCESSES
• 1. ENVIRONMENTAL SCANNING
• 2.STRATEGY FORMULATION
• 3.STRATEGY IMPLEMENTATION
• 4.EVALAUTION AND CONTROL
ENVIRONMENTAL SCANNING
• Internal environment
- analyze the resources which can be a
source of the firm’s strength and
weakness
• External environment
- Analyze the macro environment of the firm
which can be a source of the firm’s
opportunity and threat
• ANALYZE THE STRUCTURE OF THE
ORGANIZATION
• UNDERSTAND THE CULTURE OF THE
ORGANIZATION
• DETERMINE THE RESOURCES OF THE
ORGANIZATION
STRATEGY FORMULATION
– Includes developing vision and mission
– objectives of the organization
– strategies
– policies
– Determining strength and weakness
– Identifying an organization’s opportunities
and threats
– Establishing long term objectives
• VISION STATEMENT
– Explains what the company wants to
become
• MISSION STATEMENT
– Tells the reason for the company’s
existence
MISSION STATEMENT
– defining the business
• Who is being satisfied?
• What is being satisfied?
• How are customer needs being
satisfied?
SAMPLE OF MISSION STATEMENT
• Microsoft:
We work to help people and business
throughout the world to realize their full
potentials

Nike:
To bring inspiration and innovations to
every athlete in the world
Mission Statement Analysis
• Elements:
1. customers
2. product
3. market
4. profitability
5. philosophy
6. self-concept
7. public image
8. employee
CHARACTERISTICS OF MISSION STATEMENT

– define what the company is


– broad enough to allow for creative
growth
– distinguish the company from all others
– serve as framework to evaluate current
activities
– stated clearly so that it is understood by
all
COMPONENTS of the MISSION STATEMENT

– Customer
– Product or service
– Markets
– Technology
– Concern for survival, growth and
profitability
COMPONENTS OF THE MISSION STEMENT

• Philosophy
• Competitiveness
• Concern for the employees and the
society at large
Strategy implementation
– Action stage
– Ensuring proper strategic controls and
organizational designs which includes
establishing effective means to
coordinate and integrate activities within
the firm and its external environment
– programs
– budgets
– procedures
STRATEGY EVALUATION AND CONTROL

– Final stage of strategic management


– Process of continuously monitoring the
company’s progress toward its long range
goals and mission.
– PERFORMANCE
– managers should ask: DOES THE
GRAND STRATEGY NEEDS REVISING?
– WHERE ARE THE PROBLEMS LIKELY
TO OCCUR?
ACTIVITY 1
• How do you position yourself for a career
advantage ?
• If you are about to embark on a new
career, discuss the effect of industry
growth in your decision?
ACTIVITY 2
• 1. FORMULATE A MISSION STATEMENT
OF YOUR CHOSEN COMPANY
• 2. FORMULATE A VISION STATEMENT
ACTIVITY 3
• IDENTIFY AN ORGANIZATION
• IDENTIFY TWO COMPETITORS
• ENUMERATE THE 10 STRENGTHS OF THE
ORGANIZATION
• ENUMERATE THE 10 WEAKNESSES
• IDENTIFY THE 10 THREATS
• IDENTIFY THE 10 OPPORTUNITIES
MAKE A DISCUSSION OF THESE STRENGTH,
WEAKNESSES, THREATS, AND
OPPORTUNITIES

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