March 7, 2019

Strategic Management

Executive Summary

THE STRATEGIC MANAGEMENT PAPER (Part 1)

Requirements:
1. Existing company for three yearsc
2. Submit Strama proposal for approval of the adviser. Please take note that once it’s
approved by the adviser, it’s already final and proponents are not allowed to change.
Reminders:
1. Submission of the Strama paper should be done per Batch. The adviser will check the
submitted paper per Batch also to avoid revising the whole paper.
2. Pre-defense, if time permits, should be done with the adviser or subject professor before the
students will be subjected to final defense. The assigned adviser or subject professor should submit
an approval sheet prior to the defense.

I.EXECUTIVE SUMMARY (To be written last)

Provide a brief summary or overview of the strategy paper (in two pages at most), stating what
the business of the company is, the main results of the external and internal analyses, results of
strategy formulation tools used, the key strategic management issues and the recommended
strategic and financial objectives (at least for the next three years), and strategies and significant
action plans.

Strategy management book guide

https://www.kau.edu.sa/Files/0057862/Subjects/Strategic%20Management%20Book.pdf

Nestle strama
https://www.slideshare.net/sitirizkymardhani/strategic-management-19302837

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Table of Contents

EXECUTIVE SUMMARY......................................................................................................... ......1

COMPANY BACKGROUND .......................................................................................... ..............2
2.0 Company Description ........................................................................................ 3
2.1 Nature of Business / Products / Services ....................................................................4
2.2 Current Revenue size and profit...................................................................................... .5
2.3 Major Markets served ................................................................................ .......6
2.4 Number of employees ...........................................................................................7
2.5 Other relevant basic information .....................................................................................8
COMPANY’s VISION AND MISSION .............................................................................9
EXTERNAL ANALYSIS
2.0 General Environment ........................................................................................ 3
2.1 Economic Developments ....................................................................4
2.2 Socio-Cultural, Demographic Trends, Lifestyle Changes ........................................5
2.3 Technological Developments ................................................................................ .......6
2.4 Political, Legal, Governmental Aspects .... .............................................. ....7
2.5 Ecological Aspects ............................................................................... .. ...8
2.5 Other external factors that may be more directly relevant to your business......................8

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II.COMPANY BACKGROUND
A. Company Description
-Levin’s International Corporation, a dynamic organization, is considered as one of the
leaders in the industry of marketing scientific, laboratory and diagnostic equipment and
instruments nationwide. It carries a wide range of products, from microscopes to centrifuges,
from bloodbank freezers to autopsy equipment, that are indispensable in the laboratory and
medical fields. Levin’s International Corporation also provides technical advice and services
to various hospitals, both private and government, oil refineries, pharmaceutical companies
as well as semiconductor companies.
https://www.jobstreet.com.ph/en/companies/495736-levins-international-corporation

B. Nature of business/products/services
- Trading of medical,scientific and laboratory equipments and supplies.

C. Current revenue size and profit

- Revenue P126, 323,465

- Net Profi Before Tax P8,737,725

D. Major markets served

- Private and government hospitals, universities

E. Number of employees
-1-50 employees

F. Other relevant basic information

-The company had very modest beginnings. Incorporated on the 10th of October, 1977 as
a simple trading firm, it gradually focused its line of business to medical and scientific
equipment, gaining the trust of foreign principals and suppliers. Because of its good
credit standing from foreign principals, exclusive distributorship agreements have been
awarded to the company.

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III.COMPANY’S VISION AND MISSION

 State the current vision, mission and objectives of the company
Vision
-We shall strive to be one of the leading companies in the Philippines which provide
high quality scientific equipment and service.

Mission

-To work hand in hand with government and non-government institutions to

responsibly provide state-of-the-art scientific equipment and to render efficient and
prompt service.

To pursue excellence in developing and establishing the highest level of training for
customers and our staff in the usage and maintenance of scientific equipment.

To assist institutions to develop and set up laboratory facilities and/or units in the
Philippines.

To create a work environment that encourages team work, recognizes individual

worth, and rewards outstanding performance.

To be able to analyze to support and nurture a service team capable of analyzing

technical problems and render quality service with determination and quick response.

Objectives of the company

-We aim to provide clients with quality products, reliable recommendations, and
complete testing service. At the same time, we help our clients minimize cost, improve
their efficiency, meet safety standards, and ensure the operability of our installations.

 Comment or evaluate the vision and mission statements using David’s framework and
other criteria discussed in class.

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VISION
YES NO
"What do we want to become?" ✔️

MISSION
YES NO
"What is our business?" ✔️

9 Components of a Mission Statement

YES NO
Customers ✔️
Products or Services ✔️
Markets ✔️
Technology ✔️
Concern for survival, growth and profitably ✔️
Philosophy
Self-concept
Concern for Public Image ✔️
Concern for Employees ✔️
TOTAL

 Recommend changes if needed. Or, develop new vision and mission statements.
 Explain how the recommended vision and mission meets the criteria based on David’s
framework, including how it takes into account ethical principles and nation building.
 Give recommendations on how you will communicate the vision and mission to the
employees and other stakeholders.

IV.EXTERNAL ANALYSIS
A. General Environment
1. Discuss current and expected outlook in the following areas, focusing only on factors
that will have significant impact on your business. Consider the following areas only
insofar as they are relevant, and thus exert a significant impact on your industry.
a. Economic developments
b. Socio-cultural, demographic trends, lifestyle changes
c. Technological developments
d. Political, legal, governmental aspects
e. Ecological aspects
f. Other external factors that may be more directly relevant to your business.

2. Translate the above in terms of what it means for your business, identifying
opportunities and threats that may affect the following:

a. Market demand and opportunities

b. Types of products and services offered

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c. Intensity of competition
d. Suppliers and distributors
e. Costs of doing business
f. Other aspects of the business

B. Industry and Competitor Analysis

1. Analyze the industry’s situation and prospects by looking into the following:
a. Market size and/or growth rate and stage in the growth cycle
b. Number of players and their relative sizes; market share analysis
c. Market aspects (products or service, price, promotion, and channels of
distribution)
d. Buyer/Customer profile
e. Factors affecting costs of doing business
f. Operations/Production aspects
g. Technology developments
h. Industry financial analysis (growth, profitability, liquidity, leverage, efficiency)
i. Problems in the industry
j. Critical success factors in the industry

2. Analyze your industry using Porter’s Five Forces framework of competitive analysis and
based on the preceding analysis, state your conclusion for each force.

3. Do a competitor analysis:
a. Identify your major competitors and provide relevant information for each, e.g.
revenue size, financial health, market share, strategies, etc. If there are too many,
select and focus only on a few (about two or three) and explain why you chose to focus
on these competitors.
b. Evaluate your competitors and your company vis-à-vis the critical success
factors identified earlier. Do a Competitive Profile Matrix and explain the ratings.

C. Summary and Conclusion

1. Using the results of your general environment and industry analyses, identify and
summarize the major opportunities and threats.
2. Use the EFE matrix tool to assess how well your company is responding to the
opportunities and threats in the environment. Make sure that the factors included in your
EFE have been discussed in the external and industry analyses and the factors you
discussed in your analyses should be reflected in your EFE for consistency. Explain your
weights and ratings.
3. Draw your conclusion about the industry’s overall prospects and industry
attractiveness.
4. Make a conclusion about your current company’s competitive position or business
strength in the industry, e.g., very strong, strong, middle-ground, weak.
5. Identify key strategic issues related to the external environment that will have a
significant impact on your business.

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V.INTERNAL/COMPANY ANALYSIS
A. Review the company’s performance in terms of key performance indicators:
1. Revenue/sales in the past three years
2. How the company’s growth compares with industry growth or vis-à-vis the other
players
3. Profitability, other relevant performance indicators
4. Applicable financial ratios
5. Value Chain Analysis

B. From the above, identify the company’s major strengths and weaknesses
D. Use the IFE matrix to evaluate the overall internal strengths and weaknesses of the
company
E. Summary and Conclusion
1. Identify the major financial and internal strategic issues that the company must address
2. Identify key organizational elements that may hinder or promote growth and
productivity.

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