Bukidnon State University

Kadingilan Satellite Campus

Poblacion, Kadingilan, Bukidnon

BSBA 2A – CBMEC 1
STARTEGIC MANAGEMENT
2:00 – 3:00PM
ROOM 6

PART 1: STARTEGIC ANALYSIS AND DECISION MAKING

CHAPTER 1: A STRATEGIC MANAGEMENT MODEL

Reality of Dynamism – fluidity

-changes and fluctuations are constantly happening in the surroundings.
Hypercompetition – is a fundamental feature of the new economy.
- Occurs when products/services offering and technologies are so new that
standards become unstable and competitive advantage is not sustainable.
- A condition where strategic maneuvering has escalated to bigger business
exposure more sophisticated marketing positioning, aggressive selling, and
innovative products and services.
- Businesses compete with each other.
Strategic Management – is a continuous process of strategy creation. It involves process like;
 Strategic analysis and decision-making
 Strategy formulation and implementation
 Strategy control with the primary objectives of achieving and maintaining better alignment of
corporate policies, priorities, and success.
 The science of creating, executing, and evaluating cross-functional decisions to enable an
organization to achieve its goals and objectives.
Strategic Analysis – consist 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 Formulation – is designing strategies on the business and corporate levels.
Strategy Implementation – is employing these crafted strategies to achieve organizational set goals and
objectives.
Strategic Control – is the application of an appropriate monitoring and feedbacks system.
 Strategic Analysis Strategic Intelligence

Strategic Decision- Strategic Thinking

making

Strategy Organizational
Fomulation Competitiveness

Strategy Comparative
Implementation Advantage

Strategic Control Strategic

Performannce

The Strategic Management Process

Strategic Management Organizational Success

Organizational Input
Process  Strategic
 Management/
 Strategic Analysis Intelligence
Employees
 Strategic Decision-  Strategic Thinking
 Financial
making  Organizational
Resources
 Strategy Competitiveness
 Facilities/Equip
Formulation  Comparative
ment
 Strategy Advantage
 Infrastructures
Implementation  Strategic
 processes
 Strategic Control Performance

A Strategic Management Tool

Strategic Panning – 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 assessments.
Types of Strategic Plans

1. Medium/long-range Plan – prepared in the context of the coming three to five, ten or more
years. It describes the major or forces that affect the organization’s long-term objectives,
strategies, and resources required.
2. Annual/yearly Plan – short-term; succinctly describes the organization’s present situation, its
goals and objectives, strategies, monitoring mechanisms, and the budget for the year ahead.

Why there is a need for Strategic Planning?

 Because of the reality of dynamism, complexity, and hypercompetition.

Strengths and Limitation of Strategic Planning

Strengths

 It defines the organization’s vision, mission, and set objectives.

 It provides and helps assess organization’s accomplishments and specify strategies to achieve
their goals.
 Helps reduce the chances of committing mistakes.

Disadvantages

 Some of the organizations are good “in paper”.

Organizational Vision, Mission, and Goals

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 – 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 – pursued to make the specified strategies succeed. It has the following
properties:

1. Goals provide organizations focus and direction.

2. Goals move organizations to action.
3. Goals develop in organizations the trait of persistence.

VISION

MISSION
GOALS Relationship of the Vision-Mission-Goals of an
Organization.
Organizational Objectives – micro and specific in perspective. It needs to be:

1. Clearly defined and formulated, carefully chosen, specific and definite.

2. Objective may be immediate or short-term.
3. They need to be prioritized into a hierarchy of objectives.
4. Objectives need to be realistic and attainable. They need to be flexible, consistent, and strategic.
5. Objectives need to be measurable over time.

Relationship between Organization

Goal and Objectives.

Organizational Goal
Objective 3

Objective 1
Objective 4
Objective 2

Strategic Objectives are generally external focused. (Peter Drucker - 2008)

Eight major Classifications of Obectives

1. Market Standing
2. Innovation
3. Human Resources
4. Financial Resources
5. Physical Resources
6. Productivity
7. Social Responsibility
8. Profit Requirements

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.

- It is generally exhibits in two words; beliefs and attitudes.

- Beliefs are cognitive manifestations while attitudes are characteristically
behavioral.
Value system of an Organization

Value System

Leadership and Management Styles Interests

Values Dreams and Aspirations Philosophies Expectations Ethical Practices

Organizational Climate – the regular and repetitive patterns of attitudes and behavior exhibited by
employees of an organization. It measures the health of the organization.

Organizational Culture – denotes a wide range of social phenomena, including an organization’s

customary dress, language, behavior, beliefs, values, symbols of status and authority, myths, ceremonies
and rituals, and modes of deference and subversions; all of which help to define an organizations
characters and norms.