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SAN BEDA COLLEGE ALABANG

Where we want to go?


Where are we today?
What you have to do to get there?
How do we measure success?

Where we want to go?


Where are we today?
What you have to do to get there?
How do we measure success?

Where we want to go?


Where are we today?
What you have to do to get there?
How do we measure success?

Where we want to go?


Where are we today?
What you have to do to get there?
How do we measure success?

Where we want to go?


Where are we today?
What you have to do to get there?
How do we measure success?

Where we want to go? (Planning Stage)

Vision

(3 to 5 years)

Defining the
business thru
matching
customer needs
/ wants vs.
Firms values
and direction

Creating of
Strategic
mission or policy
statement

Where are we today? (Planning of Strategy)


Industry / Task Environment
Societal Environment
-----

External and
Internal
Assessment

Capabilites

Identifying

Competence

TOWS

Management Structure
Firms Performance
Firms Culture

What you have to get there? (Formulation


and Implementation Stage)

Gap
Analysis

Matching Process

1. Developing distinctive
competence

1. How do SW compare
with accepted standards
of excellence?

2. Establishing competitive
advantage

2.How do SW compare
with competitors and
industry standards of
excellence?

4. Key vulnerability

3. How do SW be
affected by the task and
societal environmental
issues and concerns?

3. Meeting business
requirement

Formulating of Strategy

Implementing the strategy

How do we measure success? (Evaluation


Stage)
1. Strategic
competitiveness

Monitoring
and Review
of implemented
strategy

Compare
actual
performance vs.
Targets or
critical
success
indicators

Basis for
adjustment
or improvement of
strategy

2. Sustained
competitive
advantage
3. Above-average
returns

Where do you
want to go next?

Globalization:
The set of specific and general forces that work

together to integrate and connect economic,


political, and social systems across countries,
cultures, or geographic regions
Allows goods, services, people, skills, and ideas to
move freely across geographic borders
The integrated internationalization of markets
and corporations has changed the way modern
corporations do business

21st Century Values:


Flexibility
Speed to market

Innovation
Integration
Handling challenges from constantly changing

conditions
Hypercompetition

Four objectives:
Identify early signals of environmental changes
Detect meaning through ongoing observations of

environmental changes and trends


Develop projections of anticipated outcomes
based on monitored changes and trends
Determine the timing and importance of
environmental changes and trends for firms
strategies and their management

Source: Developed from Michael E. Porter, Competitive Strategy (New York: Free Press, 1980).

Michael E Porter proposes that managers


should view the organizational environments
in terms of five competitive forces:
The threat of new entrants
Competitive rivalry
The threat of substitute products
The power of buyers
The power of suppliers

The threat of new entrants


The extent to which new competitors can easily

enter a market or market segment.


Entrance is easier for market requiring a small
amount of capital to open and more difficult when
it takes a tremendous investment in plant,
equipment and distribution systems
The internet has reduced the costs and other
barriers of entry into many market segments so
the threat has increased for many firms.

Competitive rivalry
The nature of the competitive relationship

between firms in the industry.


Large firms, dominant in the field, engage in price
wars, comparative advertising and new-product
introductions.
Small establishments, in contrast, do not
generally engage in such practices.

The threat of substitute products


The extent to which alternative products or

services may take the place of or diminish the


need for existing products and/or services.

The power of buyers


The extent to which buyers of the products or

services in an industry have the ability to influence


the suppliers.

The power of suppliers


The extent to which suppliers have the ability to

influence potential buyers.


The power of the supplier depends on the product
being offered. The more restricted the service or
product, the more power to the supplier.

Aid to Strategic Decision Making


Provides a checklist of questions, by area or
issue, that enables a systematic analysis to be
made of various corporate functions and
activities

Technology has altered the way businesses


operate, with respect to:
Communications,

Distribution,
Sales and marketing,
Procurement, and
Information management

Increasing rate of technological change and


diffusion
Perpetual innovation

The information age


Personal computers, cellular phones, artificial

intelligence, virtual reality, massive databases,


electronic networks, e-business

Increasing knowledge intensity


Information, intelligence, expertise, strategic

flexibility.

Population ecology
once an organization

is successfully
established in a
particular
environmental niche,
it is unable to adapt
to changing
conditions

Institution theory
organizations can

and do adapt to
changing conditions
by imitating other
successful
organizations

Strategic choice perspective


not only do organizations adapt to a changing

environment, but they also have the opportunity


and power to reshape their environment

Organizational learning theory


an organization adjusts defensively to a changing

environment and uses knowledge offensively to


improve the fit between itself and its environment

Failure to understand the customer


Why do they buy
Is there a real need for the product
inadequate or incorrect marketing research

Inability to predict environmental reaction


What will competitors do
Fighting brands
Price wars

Will government intervene

Over-estimation of resource competence


Can the staff, equipment, and processes handle the

new strategy
Failure to develop new employee and management
skills

Failure to coordinate
Reporting and control relationships not adequate
Organizational structure not flexible enough

Failure to obtain senior management


commitment

Failure to get management involved right from the

start
Failure to obtain sufficient company resources to
accomplish task

Failure to obtain employee commitment

New strategy not well explained to employees


No incentives given to workers to embrace the new

strategy

Under-estimation of time requirements


No critical path analysis done

Failure to follow the plan

No follow through after initial planning


No tracking of progress against plan
No consequences for above

Failure to manage change

Inadequate understanding of the internal

resistance to change
Lack of vision on the relationships between
processes, technology and organization

Poor communications
Insufficient information sharing among

stakeholders
Exclusion of stakeholders and delegates