Strategic

Management
Jhonrey Quizeo
MBA 6008B
 Learning Objectives

01 02 03
Define Strategic Define Competitive Illustrate the strategic
Management Advantage management process

04 05 06
Analyzing the external & BCG Matrix Discuss the Strategic
internal environment management in today’s
environment
 STRATEGIC
MANAGEMENT
is the art and science of formulating,
implementing, and evaluating
cross-functional decisions that enable an
organization to achieve its objectives.
(David, et. al, 2017)

is the integrative management field that

combines analysis,
formulation, and implementation in the
quest for competitive advantage.
(Rothaermel, 2019)
 Strategic Planning Vs. Strategic Management
Strategic management is used to
Strategic planning referring only
refer to strategy formulation,
to strategy formulation.
implementation, and evaluation

Strategic Planning is more often Strategic Management is often

used in the Business world used in academia or academe.

Strategic management is used at

A strategic plan is, in essence, a many colleges and universities as
company’s game plan. the title for the capstone course in
business administration.
Benefits of Strategic
Management

● Strategic management is generally

thought to have financial and
nonfinancial benefits.
● A strategic management process
helps an organization and its
leadership to think about and plan
for its future existence, fulfilling the
organizational goals.
● Strategic management sets a
direction for the organization and its
employees.
 Strategy
a set of goal-directed actions a firm takes to gain and
sustain superior performance relative to competitors
(Rothaermel, 2019).
 What is a good strategy?

Competitive Guiding Policy Coherent Actions

Challenge
This element is accomplished
This element is accomplished through strategy
through analysis This element is
formulation, resulting in the
of the firm’s external and accomplished through
firm’s corporate, business,
internal environments strategy implementation
and functional
strategies
A firm that achieves superior
performance relative to other
competitors in the same industry or
the industry average has a
competitive advantage.

A firm that is able to outperform its

competitors or the industry average
over a prolonged
period has a sustainable competitive
advantage.

If a firm underperforms its rivals or the

industry average, it has a competitive
disadvantage.
 Competitive Advantage

VISION MISSION VALUES

What do we want to How do we accomplish What commitments do
accomplish ultimately? our goals? we make, to act
both legally and ethically
as we pursue our vision
and mission?
 Vision
captures an organization’s aspiration and
spells out what it ultimately wants to
accomplish.

Strategic Intent
A stretch goal that pervades the
organization with a sense of winning,
which it aims to achieve by building the
necessary resources and capabilities
through continuous learning.
 Mission
Description of what an organization
actually does—the products and services
it plans to provide, and the markets in
which it will compete.

Customer Product
Oriented Oriented
Core Value Statement
provides touchstones for the employees
to understand the company culture. Such
statements can help provide the
organization’s employees with a moral
compass.

Organizational Core Values

Ethical standards and norms that govern
the behavior of individuals within a firm
or organization.
AFI Framework
Strategic Leadership
Executives’ use of power and influence to
direct the activities of others when pursuing
an organization’s goals.

Upper-Echelons Theory
A conceptual framework that views
organizational outcomes—strategic choices
and performance levels—as reflections of
the values of the members of the top
management team.
PESTEL
FRAMEWORK
Political Factors
result from the processes and
actions of government bodies that
can influence the decisions and
behavior of firms.

Economic Factors
● Grow rates
● Levels of employment
● Interest rates
● Price stability
● Currency exchange rates
SocioCultural Factors Legal Factors
capture a society’s cultures, norms, and
values.

Technological Factors
Capture the application of knowledge to
create new processes and products.

Ecological Factors
involve broad environmental issues such
as the natural environment, global
warming, and sustainable economic
growth.
 INDUSTRY VS. FIRM EFFECTS

INDUSTRY EFFECTS FIRM EFFECTS

Firm performance attributed Firm performance attributed
to the structure of the to the actions managers take.
industry in which the firm
competes.
Porter’s Five
Forces Model
 INTERNAL ANALYSIS

CORE
RESOURCES CAPABILITIES
COMPETENCIES

Unique strengths, embedded Any assets that a firm can Organizational and
deep within a firm, that are draw on when formulating managerial skills necessary to
critical to gaining and and implementing a strategy. orchestrate a diverse set of
sustaining competitive resources and deploy them
advantage. strategically.
Resource-Based
View
 SWOT
ANALYSIS
AFI Framework
 Strategic Business
Implementation Strategy

Strategic
Process
Strategic Corporate Functional
Formulation Strategy Strategy
 BCG GROWTH
SHARE MATRIX

The growth share matrix is a portfolio

management framework that helps
companies decide how to prioritize their
different businesses by degree of
profitability.
 BCG GROWTH
SHARE MATRIX

1. CASH COW
2. STARS
3. QUESTION MARKS
4. PETS
 “At the end of the day, that's the point of
strategic management - to be able to keep
up with the constant pace of change in
the business environment.”