A STRATEGIC
MANAGEMENT MODEL
Topic 1
The Reality of Dynamism
• Today’s milieu is in a state of fluidity; not static
• Nothing is stable; neither is regularity a logical expectation
• Competition goes beyond borders and limits
Hypercompetition
• Hyper competition occurs when product/service
offerings and technologies are so new that standards
become unstable and competitive advantage is not
sustainable
• Doing business has become more intense and
deliberate
• A situation where both globalization and technology
collaborate to create a heightened cut-throat situation.
Strategic Management Defined
• Defined as the science of creating, executing, and evaluating
cross-functional decisions to enable an organization to
achieve its goals and objectives
• A continuous process of strategy creation
• Involves strategic processes like:
1. Strategic analysis and decision-making
2. Strategy formulation and implementation
3. Strategy control
Strategic Management Defined
• Strategic analysis – consists of a systematic evaluation of
variables currently existing in the external and internal
environments.
• Strategic decision-making – is deliberately bringing together
the right resources for the right markets at the right time.
• Strategy implementation – is employing these crafted
strategies to achieve organizational set goals and objectives.
• Strategic control - is the application of an appropriate
monitoring and feedback system.
The Strategic Management Process
Strategic Analysis Strategic Intelligence
Strategic Decision-Making Strategic Thinking
Strategy Formulation Organizational Competitiveness
Strategy Implementation Comparative Advantage
Strategic Control Strategic Performance
Definition
Relevant organizational knowledge, abilities,
foresight, and systems thinking Strategic Intelligence
Ability to weigh factors and arriving at critical
Strategic Thinking
decisions in the context of the organization
Optimum and sustainable utilization of resources for
Organizational Competitiveness
maximum performance and productivity
Production of goods/services at lower marginal and
opportunity costs than its competitors Comparative Advantage
High level of productivity characterized by efficiency Strategic Performance
Strategic Management Model
Organizational Strategic Organizational
Input Management Success
Process • Strategic Intelligence
• Management/ • Strategic Analysis • Strategic Thinking
Employees • Strategic Decision- • Organizational
• Financial Resources making Competitiveness
• Strategy Formulation • Comparative
• Facilities/Equipment
• Strategy Advantage
• Infrastructure • Strategic
Implementation
• Processes Performance
• Strategic Control
Questions for Discussion
• What roles do organizational input play in the attainment of
the success of an organization? Identify each of these input.
Question for Discussion
• What role does strategic control play in the strategic
management of an organization? Give examples from your
membership in a student organization in the past.
Questions for Discussion
• How will you define strategic management?
• What roles do organizational input play in the attainment of
the success of an organization? Identify each of these input?
• Differentiate strategic analysis from strategic decision-
making. Given an example from your experience as a
member of a student or youth group.
• When does an organization enjoy competitiveness? Explain
by giving an example.
• What is comparative advantage? Cite examples.
• What role does strategic control play in the strategic
management of an organization? Give examples.
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.
Properties of Strategic Plan
1. Blueprint of the org.
2. Grand scheme of the org. and outlines the set of activities from org.
to the dept. level
3. Fits strategically the orgs. goal and the capabilities w/n the org.
4. It is structured; involves carefully delineated steps
5. It is proactive; plans are made in anticipation of future changes and
developments
6. It is a philosophy; involves a unique way of thinking and doing
things
7. Links the org. plan w/ functional & operational plans
a) Organizational grand plan
b) Departmental tactical plans
Properties of Strategic Plan
8. It is subtly intertwined in all the other functions and responsibilities
of a manager
9. It necessitates the leadership and support of top management and
employee participation and commitment
2 Principal Types of Plans
1. Medium/Long-range plan
• For the next 3-5 years, or 10 or more years; long-term
2. Annual/Yearly plan
• Objectives, strategies, monitoring mechanisms, and
budget in a year; short-term
Steps in Strategic Planning
1. Situation audit
2. Goals and objectives, value and value systems, business
definition, and strategy statements
3. Delineating appropriate strategies to be carried out
4. Identifying and then choosing the soundest strategy
5. Monitoring the implementation of strategies
6. Conduct periodic and continuous reassessments
Question for Discussion
Is there a need for MICROENTERPRISES to conduct
strategic planning given their limitations in
organizational inputs?
In what way can microenterprises conduct strategic
planning at the least cost possible?
Organizational Vision
• Is an inspirational statement of what the organization hopes
to achieve at some point in the future
• A sky blue assumption.
Example: NDMU Vision
Inspired by the charism of St. Marcellin Champagnat, the Notre
Dame of Marbel University envisions to be a Catholic Marist
Institution of learning dedicated to the spiritual, moral and
academic formation of men and women who exemplify competence
and social responsibility in the service of God and humanity.
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.
• Must be short and easy to remember
Example: NDMU Mission
As a Catholic institution founded on Marist traditions, Notre Dame of
Marbel University commits itself to:
• Build character
• Develop competence
• Respect culture
Organizational Goals and
Objectives
• Operationalization of the mission statement
• Pursued to make the specified strategies succeed
Properties of Organizational Characteristics of
Goals Organizational Objectives
1)Goals provide organizations 1) Objectives need to be clearly
focus and direction. defined and formulated, carefully
chosen, specific, and definite.
2)Goals move organizations to
action. 2) Objectives may be immediate or
short-term.
3)Goals develop in organizations
3) They need to be prioritized into a
the trait of persistence. hierarchy of objectives.
4) Objectives need to be realistic and
attainable; flexible, consistent and
strategic.
5) Objectives need to be measurable
over time.
Example
NDMU Organizational Goals
•S
•s
Classifications of Objectives
(Peter Drucker, 2008)
1. Market standing
2. Innovation
3. Human resources
4. Financial resources
5. Physical resources
6. Productivity
7. Social responsibility
8. Profit requirements
Relationship of the Vision-Mission-
Goals of an Organization
Vision
Goals Mission
Assignment 1 (for recording):
• Envision of what you wanted to become in the future. Describe it.
• Create a vision, mission, and goals for your future self that would
serve as your blueprint in the implementation of that big idea.
• Computerize your output in 1 sheet of short bond paper, (back-
to-back, if necessary), font size: 12, font style: Arial, font color:
Black, margin: 1 inch in all sides, line spacing: 1.5 only
• Write your name on the upper left portion of the bond paper, the
subject, your section, schedule of class (time and day) in one
horizontal line only
• Date submission: Next meeting
Values Value System
• Are inherent roots of motivation • Includes:
within an individual, or • Values
organization, a community, or a • Organization’s dreams
nation • Aspirations
• Can be seen in one’s: • Interests
• Expectations
• Beliefs – cognitive • Philosophies
manifestations • Leadership and management
• Attitudes - behavioral styles
• Ethical practices
Organizational Climate Organizational Culture
• A regular and repetitive patterns • Denotes a wide range of social
of attitudes and behaviour phenomena, including an
exhibited by employees of an organization’s customary dress,
organization. language, behaviour, beliefs,
• As a manager, ask yourself: Are values, symbols of status and
my employees happy, authority, myths, ceremonies and
hardworking, motivated, etc. or rituals, and modes of deference
otherwise? Is it because of the and subversion, and etc.
organizational climate or • Give one example of activities or
because of reasons outside the customs in NDMU that you
org.? Then resolve the issue. observe to influence the
organizational culture in the
university.
Summary of Topic 1
• Vision projects the image that an organization wants to
attain reinforced by the mission statement that specifies how
the organization intends to actualize this vision.
• Thus, goals and objectives are clearly enumerated.
• Any organization has its own value system that inevitably
becomes part of its organizational culture.
World’s Greatest Strategists
Howard Schultz: Starbucks
End of Topic 1
