strategic management

1. Strategic Management
Genevieve L. Cavaiani

4. The reality of business dynamism
• Business today is in the a state of fluidity.
• It is not static, its dynamic.
• Changes and fluctuations are constantly happening in the
surroundings.
• The actualities are characterized in continuous challenges and
triggering forces that provoke corresponding reactions. As a result
the current landscape of competition is threatening, nothing is
stable. Thus it is urgent for organizations and businesses to
STRATEGIZE.

5. HYPERCOMPETETION
• It is a fundamental feature of the new economy. It occurs when
product/device offerings and technologies are so new that
standards become unstable and competitive advantage is not
sustainable.
• It is a condition where strategic maneuverings have escalated to
bigger business exposure, more sophisticated marketing
positioning, aggressive selling and innovative products and
services.

6. HYPERCOMPETETION
• It is a situation where both globalization and technology
collaborate to create a heightened cut-throat competition. It
means that business compete with each other.

8. • For any organization to operate and effectively its efforts on
certain tasks and avoid astray or deviate away from targets, a
sense of direction needs to be set and some sort of rules or
guidelines have to be established and observed.
• These rules or guides are in the minds of founders, leaders and
mangers, put either or not in writing.

11. • Business compete with each other, whether they have similar
products, substitute products, and different products, competitors
continuously strive to outplay and outsmart each other. They
needed to devise ways and means to survive and deal wit this
super competitive reality. New value creation, competitive
pricing, innovation in supply chain management and high degree
of quality product.
• In short, the name of the game today, is tougher and smarter
competition. Thus, there is the need to strategize.

12. STRAGTEGY IS DEFINED AS:
• Strategy originated from the Greek word “Stratego” means to
“plan the destruction of one’s enemies through effective use of
resources
• Refers to top management’s plan to attain the outcomes
consistent with the organization’s mission and goals.
• Refers to it as a set of competitive moves and business approaches
that management is employing to run the company

13. Strategy
• It is a management “game plan” to achieve the following:
1. Attract and please customers
2. Stake out a market position
3. Conduct operation and
4. Compete successfully

14. STRATEGIC MANAGEMENT DEFINED
1. A set of managerial decisions and actions that determine the
long-run performance of a corporation
2. Refer to the entire process of strategic decision-making that
relates to its environment, guides of internal activities, and
determines the long term performance of the organization.

15. BENEFITS OF STRATEGIC MANAGEMENT
1. Clearer sense of strategic vision for the firm
2. Sharper focus on what is strategically important
3. Improved understanding of rapidly changing environment

16. STRENGTH OF STRATEGIC MANAGEMENT
Defines and organization’s vision, mission and set objectives. It
provides organizations the opportunity to assess and specify
strategies to achieve their goals.
Helps organization to stay focused and makes things happen
Help reduce the chances of committing mistakes, thus increasing
the organization’s efficiency.

17. STRENGTH OF SM
It helps in the more efficient allocation of organizational
resources, better collaboration among cross-departmental
employees and functional units, and communication between
managers/ supervisors of all levels
Lastly, when cautiously and clearly undertaken, SM provide
competitive advantage to the organization.

18. LIMITATIONS OF STRATEGIC MANAGEMENT
× It conducted yearly or even more often but in some instances are
good only on “paper” some organizations fail to follow faithfully
their prepared Strategic management.
× If in case these SM, are followed religiously, some organizations
may not be flexible enough t make the necessary adjustments and
realignments to address forthcoming external and internal
challenges

19. THE STRATEGIC MANAGEMENT PROCESS
1. Strategic analysis
2. Strategic decision making
3. Strategic formulation
4. Strategic implementation
5. Strategic control

21. The importance of SM due to the dynamic
nature of business
• The address the following circumstances and realities:
1. The ever changing market conditions-driven by the supply and demand
situations, businessmen are obligated to respond that changing market
scenario.
2. The changing taste of the market- taste and preferences of the
consumers change over time thereby compelling businesses to make
product of service innovation
3. Socio- political changes- political changes in a country have a domino
effect of the business
4. The impact of global development vis-à-vis the local markets
5. The changes in the conduct of business- the increasing role of
technology

22. OVERVIEW SUMMARIZE
• to summarize, due to business fluidity and dynamism, business
challenges are constantly happenings in the surroundings,
customer buying behaviors changes unpredictably,
hypercompetitive business maneuverings, competitive pricing,
innovation in supply chain management, aggressive selling, cut-
throat competition ( business compete with each other and for
any business organization to survive and to avoid business failures,
top management and managers must focus ont

23. WORLD’S GREATEST STARTEGIES
• Howard Schultz: Starbucks
Schultz, somehow knew, back in 1985, that we would pay up if he turned
an ordinary cup of “Joe” into a Venti latte. He also hoped his cool coffee
cafes would change the culture, as they have in cities and suburbs alike.
Roughly, 30 years later, 20,000 Starbucks stores circle the globe,
generating $15 billion in annual revenues.
Now, the boy from Brooklyn is pushing into tea, baked goods, and digital
commerce with Starbucks $25 million equity stake in square, a mobile
payment start up. Following a record year with the stock nearing an all-
time high, Schultz is turning his focus to Starbucks mission, growth
initiatives, the convergence and integration of retail and e-commerce,
digital card, and mobile assets around the world.

24. Questions
1. From the management, result-driven, practical and inspirational
strategies implemented by Schultz at Starbucks, which struck you as
something worth imitating? Explain your answer in 3 paragraphs.

25. VISION-MISSION STATEMENT
• An organization – is an inspirational statement of what the
organization hopes to achieve at some point in the future.
• Concerns a firm’s future business path – “where we are going”
these addresses the following:
1. Markets to be pursued
2. Future technology-product- customer focus
3. Kind of company that management is trying to create

26. • Generally, the vision statement for the organization talks about
the founders and managers or leaders of the business
organizations would like to see or become in the long term
• MISSION statement, focuses on current business activities-” who
we are and what we do.”

27. The mission statement address the following:
1. Current product and service offerings
2. Customers needs being served
3. Technological and business capabilities
IMPORTANCE OF VISION-MISSION STATEMENT
- Served as a guiding principle of competitive- conscious business
organization. It also served as the guiding star to achieving
something and a unifying element promoting a culture of unity of
purpose within the organization.

31. SETTING STRATEGIC GOALS AND OBJECTIVES
• After having set the vision and
mission statements, it is a must to
transform the qualitative context of
vision and mission statement into
something quantifiable
• While the vision and mission
statements guide the top
management as what to achieve and
how to go about it, the strategic
objectives are expressed in specific
quantifiable terms what is envisioned
behind the vision and mission
statement

32. • Where, vision amend mission
statement addresses the question of
who the company is and the reason
for existence, GOAL represent the
desired general ends towards which
effort are directed
• OBJECTIVES on the other hand are
specific and quantified versions of
goals.
• A goal, say: to expand market
coverage and achieved substantial
growth
• A objective, say: to have a market
share of 25% and achieve a gross
profit of 15%

33. CHARACTERISTICS OF STRATEGIC OBJECTIVES
1. Converts vision and mission into specific performance target
2. They serve as yardsticks to track performance
3. It pushes the firm to be inventive and focused results
4. It helps prevent complacency
5. The objectives serve as pull or magnet towards common
direction

34. What ere considered good Objectives
1. SPECIFIC- the objective must be concrete and
specific to the last detail and itys quantifiable.
2. MEASURABLE- the objective must be tied up or
related to the mission statement and should be
measurable.
3. ACHIEVABLE- the objective should not be a dream or
desire but should be something attainable.
4. REALISTIC- the vision and mission must be realistic
5. TIME-BOUND- these must be timeframe or period and
limit as to how soon the objective can be achieved.

41. ORGANIZATIONAL CLIMATE AND CULTURE
• The concept of organizational climate and culture are
interrelated, interdependence and sequential.
• ORGANIZATIONAL CLIMATE- is the regular and repetitive patterns
or attitudes and behavior exhibited by the employees of an
organization.
• It manifests whether its employees are happy, hardworking and
motivated, whether good interpersonal relationship exist between
and among different levels of management; and whether the work
environment is acceptable and conducive to productivity

42. • Organization culture- organizational customary dress, language
, beliefs , values, symbols of status and authority.
• A system of knowledge and common values which can exhibited
and evaluated similarly by people even with different
backgrounds and different levels within the organization
• Organization culture is largely and generally influence by the
leadership of top management.