Philippine Christian University

1648 Taft Avenue., corner Pedro Gil St., Manila

Tel. Nos. 526-2261 to 64, 524-6671

GRADUATE SCHOOL OF BUSINESS ADMINISTRATION

Master in Business Administration

In Partial Fulfillment of the Requirements in

Strategic Management 2

Narrative Report:
Assumptions

Submitted by:
Desinydia S. Rasid
Student, Master in Business Administration

Submitted to:
Professor: Lagunda
Assumptions
Planning would be impossible without assumptions. According to
McConkey defines assumptions as the “best present estimates of the
impact of major external factors, but which may exert a significant impact
on performance or the ability to achieve desired results”
Assumptions are ideas that we presume to be true before taking
decisions. Assumptions are also made in businesses for developing a
strategy, planning and making decisions. 

Strategists are faced with countless variables and imponderables that

can be neither controlled nor predicted with 100 percent accuracy. Wild
guesses should never be made in formulating strategies, but rather
reasonable assumptions based on available information must always be
made.

Assumptions is needed to be able to reach a conclusion, to support the

conclusion and to strengthen the conclusion.
By identifying future occurrences that could have a major effect on the
firm and by making reasonable assumptions about those factors,
strategists can carry the strategic-management process forward.
Assumptions are needed only for future trends and events that are most
likely to have a significant effect on the company’s business. It is serves
as checkpoints on the validity of strategies. Firms that have the best
information generally make the most accurate assumptions, which can
lead to major competitive advantages.
Assumptions:
• Needs to be solid
• Well researched
• Defensible
• Must have best information
• Must Validate the information
• Explain and give examples of why your assumptions are probably
true