COLEGIO DE SAN JOSE

Member: Daughter of Charity St. Louise de Marillac Educational System

E. Lopez Street, Brgy. Our Lady of Fatima Jaro, Iloilo City

HIGHER EDUCATION DEPARTMENT

Name:Louie May Colacion Course & Year: BSBA IV-FM

Course Code : CBMEC 402 Course Title: Strategic Management
Term: Prelim Module No. 2
Schedule: August 06 – September 13, 2021

1. Intended Learning Outcomes

At the end of the lesson, the students can:

a. Explain and appreciate Porter’s Five Forces model related to business competition
b. Expound the concept of diversified companies and conglomerates in relation to corporate
strategy
c. Apprehend and describe Strategy and the Business Organization and the concept of value chain
d. Discuss the importance of some market and economic theories relevant to strategic management

11. Learning Content:

I. Business Competition, Corporate Level Strategies, Business and Functional Level

Strategies, and Value Chain
a. Theory of the Firm
b. Experience Curve
c. Other Relevant Theories Influencing Strategic Management
d. Porter’s Competition Model
e. Categories of Business Organizations
f. The Nature of Corporate Level Strategy
g. The Strategic Business Unit
h. Strategy and Business Organization
i. The Concept of Value Creation
j. Concept of Supply Chain
k. Concept of Value Chain

111. Materials/Reading:

A. Fundamentals of Strategic Management

B. Competitive Forces
1V. Overview

The five forces framework developed by Michael Porter is the most widely known tool for
analyzing the competitive environment, which helps in explaining how forces in the competitive
environment shape strategies and affect performance. By ownership and structure, business organizations
are generally organized either as a corporation (stock or non-stock corporation), sole or single
proprietorship, partnership, or an association like a cooperative. A highly diversified business
organization means a group of individual business organizations with individual charters or corporate
status registered in appropriate agencies of the government. However, as a part of a business family or
conglomerate so to speak, such organization is treated as a small or strategic business unit (SBU). The
business has to observe the norms and standards as needed or as it sees fit – and for certain strategic
reason. Direct involvement in a product-based business means creating, producing or assembling a
product through the use of in-house manpower and other forms of resources and facilities. The term
supply-chain is about the series of activities involved in the production or processing of a product or
rendering of a service. The value chain on the other hand, refers to the processes involved in converting a
product from raw material to its finished, saleable, and consumable stage.

V. Discussion/Activities:

Activity 2
Business Competition, Corporate Level Strategies, Business and Functional Level Strategies, and
Value Chain

Part 1. Matching Type: (2 points each)

Direction: Read the statement in Column A and match it in Column B. Write the letter of the
correct answer on the space provided.

Column A
 1. It advocates that other than the Column B
competition or rivalry among business a. Value Chain
organizations producing or selling the b. Department of Trade and
same products in the same market sector Industry (DTI)
or segment, there are other factors or c. Porter’s Five Forces
forces that drive business competition. Competition Model
____c_____ d. Strategic Business Unit (SBU)
2. This is where single or sole e. Bureau of Internal Revenue
proprietorship categories of business (BIR)
concerns are registered with. f. Securities and Exchange
_____f_____ Commission ( SEC)
3. This is where corporations and g. Supply Chain
partnerships are typically registered.
____b______
4. This is a unit that produces products or
services for which there is identifiable
group of customers. d____
5. It can be viewed as the sum total of the
supply and distribution chain.
____a______

Part 11. Diagram. (20 points)

Direction: Draw and interpret the typical value chain for a manufactured product.

Guidelines:
a. Draw the diagram of the typical value chain for a manufactured product.
b. Interpret each activity or process comprehensively.
c. Write your answer on the blank space provided below.

Answer: Typical value chain for a manufactured product.

Primary Product
Raw
Manufac- Fabrication Distributor Retailer
Material Producer
turing
Raw Materials- is the raw ingredients, components, or partially finished assemblies needed to construct
or manufacture a product.
Primary manufacturing-This procedure is used for transforming raw material or scrap to a primary
product of primary form and size.
Fabrication- process consists not of ready-made components but of semi-finished or crude materials.
Product producer- becomes part of or loses its distinctive character in the production process.
Distributor-purchase and sell products normally from the producer to merchants
Retailers -buy goods from the wholesaler or by the manufacturer directly. They will then sell these
commodities to end users in small amounts.

VI. Evaluation:

Essay. (20 points)

There is no doubt that in many ways, Michael Porter has made substantial contribution in the
field of strategic management via his business competition model which originally comes in five major
forces. Back in 1980s, the model espoused by Michael Porter was introduced and noticed by business
managers, eventually becoming a popular theory in business management in general and in the field of
strategic management in particular. As a student under this course, briefly discuss Porter’s competition
model and its importance in enhancing business competitiveness.

Guidelines:

a. Discuss Porter’s Model briefly.

b. Talk over its importance in enhancing business competitiveness.
c. Write your answer on the blank space provided below.

Answer:

Porter's Five Forces is a concept for business analysis that explains why different sectors can
sustain varied degrees of profitability.The Five Forces model is commonly used to examine a company's
industry structure and corporate strategy. With certain qualifiers, Porter identified five indisputable forces
that shape every market and business in the globe. The five forces are commonly used to predict an
industry's or market's efficiency, attractiveness, and profitability.The five forces referred to include
rivalry among competing sellers, suppliers of key inputs, substitutes, buyers and potential new entrants.
The important of these factor is outside of the traditional perception of competition in the
business is so strong that has somehow justified the need not only for simple business planning but unique
opportunity for practicing strategic management.

V11. Sources:

A. Books
 Orcullo Jr., Norberto A., Fundamentals of Strategic Management (2007), 856 Nicanor Reyes Sr.
St., Sampaluc, Manila, Rex Bookstore Inc.

B. References

https://gbpssi.in/admin/coursepack/MBR616Lect10.pdf

Just a gentle reminders:

1. Module 2 output is due on or before September 14, 2021

2. For Online submission:
3. Penalties shall be imposed for late submission and non-compliance with instructions.