STRATEGIC MANAGEMENT

 IS A CONTINUOUS PROCESS OF STRATEGY CREATION.

 IT INVOLVES STRATEGIC PROCESSES LIKE STRATEGIC
ANALYSIS AND DECISION-MAKING, STRATEGY
FORMULATION, AND IMPLEMENTATION, AND STRATEGY
CONTROL WITH THE PRIMARY OBJECTIVES OF
ACHIEVING AND MAINTAINING BETTER ALLIGNMENT
OF CORPORATE POLICIES, PRIORITIES AND SUCCESS.
 THE SCIENCE OF CREATING, EXECUTING, AND
EVALUATING CROSS-FUNCTIONAL DECISIONS TO
ENABLE AN ORGANIZATTION 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

- Bringing together the right

resources for the right markets at
the right time.
STRATEGY FORMULATION

- Designing strategies on
the business and corporate
levels.
STRATEGY IMPLEMENTATION
 Employing crafted
strategies to achieve
organizational set goals
and objectives
STRATEGIC CONTROL
- The application of an
appropriate monitoring and
feedback system.
THE STRATEGIC MANAGEMENT PROCESS
 STRATEGIC INTELLIGENCE
- Is the capability of an organization to
possess relevant and related knowledge,
abilities, foresight, and systems thinking
to be able to assess its own strengths and
vulnerabilities, the pressing challenges
confronting the organization, as well as
the trends and opportunities existing in
the environment.
STRATEGIC THINKING
- Is the cognitive process of
competently and analytically
weighing factors and arriving at
critical decisions in the context of
the current milieu of which an
organization is part.
ORGANIZATIONAL
COMPETITIVENESS

- the ability of the

company/business to utilize its
resources optimally and sustainably
for maximum performance and
productivity.
COMPARATIVE ADVANTAGE

- refers to the ability of the

organization to produce a
particular good or service at lower
marginal and opportunity costs
than its competitors.
STRATEGIC PERFORMANCE

- Is the accomplishment of a
high level of productivity that is
characterized by efficiency in the
context of lean and quantifiable
management.
STRATEGIC MANAGEMENT MODEL
What is Strategic Planning?
- Is 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.
Strategic planning exhibits the
following properties:
1. It generates the blueprint of what the
organization intends to accomplish.
2. It presents the grand scheme of the
organization and outlines all the set
activities, ranging from the
organizational level to the
departmental level.
3. It is the process of developing a strategic fit between the
organization’s goals and capabilities in the context of
changing opportunities.
4. It is a process of carefully delineated steps.
5. It is proactive.
6. It is a philosophy because it evolves a dynamic way of
conducting and managing an organization.
7. It links the organizational plan with functional and
operational plans.
8. It is intricately interwoven within the defined managerial
functions of organizing, directing, staffing, and controlling.
9. It necessitates the leadership and support of top
management and at the same time, employee
participation and commitment.
TYPES OF STRATEGIC PLAN

1. Long-range plan
2. Medium term plan
3. Annual plan
Why is there a need for Strategic
planning?
WHAT ARE THE STRENGTHS AND
LIMITATIONS OF STRATEGIC
PLANNING?
STRENGTHS:
1. It defines an organization’s VMGO
2. It provides organizations the opportunity to assess
the milieu and specify strategies to achieve their
goals.
3. It helps the organization to stay focused.
4. It makes things happen.
5. Efficient allocation of organizational resources
6. Better collaboration among employees of all levels.
7. It provides leverage and competitive advantage to
the organization.
LIMITATIONS:
1. Sometimes, strategic
planning are good only on
paper.
2. Organizations may not be
flexible.
3. Costly and expensive.
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.
 It is short and succinct, but it carries an
extraordinary force that will stir, motivate, and
inspire employees to work and refocus toward its
desired optimal future state.
 It binds the company and its employees together.
SAMPLE VISION

The College of Maasin as a dynamic

learning institution committing its life
resources and ministry toward the
development of persons, nurtured by
faith in God, and the liberating process
of excellent learning toward wholistic
and creative action for social renewal.
SAMPLE VISION

“ We envision the University of San

Jose-Recoletos to be a premiere Gospel
and Community-oriented educational
institution committed to transforming
individuals to become more responsive
leaders of the society through
innovative integral information”
ORGANIZATIONAL MISSION
 It defines the current purpose of an
organization.
 It answers what the organization does,
for whom it is done, and how it does and
what it does.
 It is short and easy to remember.
 It gives employees a better perspective
on how their tasks contribute to the
attainment of organizational goals.
SAMPLE MISSION STATEMENT
 The College of Maasin, with the dynamic
integration of instruction, research and extension
commits itself in seeking a life of faith, learning
and action to develop people into becoming
intellectually competent and honest, morally
and ethically sensitive, creatively aware and
responsive to the needs and aspirations of people
for the realization of a just, free and responsible
social order.
SAMPLE MISSION

We are a Catholic University

imbued with the spirit of
“Caritas et Scientia”
committed to provide Quality
Christian Community-
Oriented Education.
ORGANIZATIONAL GOALS AND
OBJECTIVES
ORGANIZATIONAL GOAL PROPERTIES:

 It provide organizations focus and

direction.
 It move the organizations to action.
 Goals develop in organizations the
trait of persistence
ORGANIZATIONAL OBJECTIVES

 Characteristics:

1. Objectives need to be clearly defined and formulated, carefully

chosen, specific and definite.
2. Objectives 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 overtime.
Major classifications of Objectives

 Market standing
 Innovation
 Human Resource/Managerial Performance & Development
 Financial Resources
 Physical Resources
 Productivity
 Social Responsibility
 Profit requirements/Profitability
Illustrative Goals and Objectives
for a Department store
 Market Standing
Goal: Improve market standing
Objective: Increase sales by 10% each year in the next five years.

 Innovation
Goal: Become more Innovative
Objectives: Increase product lines or services to include supermarket,
boutiques(for upper middle income group), sports products, and jewelry
items, and increase the share of revenues from these products to 25%
of total sales at the end of five years.
 Human Resource
Goal: Improve Workers Skills, Capabilities and Attitudes
Objectives: Install In-service training programs, and organize Total
Quality Control circles by phases in all store locations.
 Financial Resources
Goal: Improve Financial Resources
Objectives: Increase the proportion of borrowed funds to 25% of
the total assets.

 Physical Resources
Goal: Upgrade Physical Resources
Objectives: Double total parking space in five years.
 Productivity
Goal: Improve Productivity
Objectives: Complete installation of computer systems to facilitate
inventory control and faster service at the cashier’s area within three
years.

 Social Responsibility
Goal: Enhance company’s image for social responsibility
Objectives: Allocate 2% of annual profits to undertake projects or
programs to improve image in community such as donations for
scholarship grants and donations to calamity victims.

 Profitability
Goal: Improve Profitability
Objectives: Maintain a minimum of 20% ROI on stockholders’ equity for
the next five years.
VALUES AND VALUE SYSTEM
ORGANIZATIONAL CLIMATE AND
CULTURE

Organizational climate
It is defined as the regular and repetitive
patterns of attitudes and behavior exhibited by
employees of an organization
It is a measure of the health of an
organization.
It precedes and contributes to the
solidification of the culture of an organization.
 ORGANIZATIONAL CULTURE
It 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 subversion.
HOWARD SCHULTZ: STARBUCKS

STRATEGIES:
 “ But when you really believe in yourself, in your dream-you
just have to do everything you possibly can take control and
make your vision a reality. No great achievement happens by
luck.”
 “ It’s one thing to dream, but when the moment is right,
you’ve got to be willing to leave what’s familiar and go out to
find your own sound.”
 “ Whatever your culture, your values, your guiding principles-
you have to take steps to inculcate them in the organization
early in its life so that they can guide every decision, every
hire, every strategic organizations you set.”
ASSIGNMENT:

 1. Read Topic 2- Challenges in the external Environment

 2. Study the SWOT analysis matrix.