DR. YANGA’S COLLEGES, INC.

COLLEGE OF BUSINESS ADMINISTRATION

PLANNING AND STRATEGIC MANAGEMENT

In partial fulfilment of the subject requirements in

SPECIAL TOPICS in MANAGEMENT

1st Semester/ 2021-2022

Submitted to:

DEAN DONATO GALLEGO

Submitted by:

Group 2

BSBA 4A-FM

Bachelor of Science in Business Administration

FINANCIAL MANAGEMENT
CHAPTER 4
Planning and Strategic
Management
Based on the book Management “Leading and Collaborating in a Competitive World by Thomas S.
Bateman, Scott A. Snell and Robert Konopaske

DYCBAStf413
BSBA 4th Year | 1st Semester 2021-2022

Submitted by:

Leader: Lawrence R. Pascual

Members: Claudine C. Alejandro

Hazel G. Bonifacio
John Joshua S. Gerona
Michaela Mae M. Osias
Krizzia Mae F. Ruitas
Janiella Claire Sesaldo
 Ma. Clarissa C. Villamor

CHAPTER 4: PLANNING AND STRATEGIC MANAGEMENT

PLANNING
● Describes what managers decide to do and how they intend to do it.
● Provides framework, focus and direction for meaningful action.
● It is a purposeful effort that is directed and controlled by the managers and
often draws on knowledge and experience of employees throughout the
organization.
● It provides individuals and work units with a clear map to follow in their
future activities.

The Basic Planning Process

STEP 1. SITUATIONAL ANALYSIS
● It entails gathering, interpretation, and summary of relevant information for
the planning issue under consideration.

STEP 2. ALTERNATIVE GOALS AND PLANS

● It involves the generation and options for the identified problems in
situational analysis.
⮚ GOALS – are targets and ends that the manager wants to reach.
*NOTE: This goals should be SMART (Specific, Measurable, Attainable,
Realistic or Relevant, and Time-bound)
⮚ PLANS – are the actions or means that the manager intends to use to
achieve goals.
STEP 3. GOAL AND PLAN EVALUATION
● It involves the advantages and disadvantages of each goal, with the
objective of prioritizing or even removing some of the options.
STEP 4. GOAL AND PLAN SELECTION
● it involves the selection of the most suitable and viable option for the
identified problem.
STEP 5. IMPLEMENTATION
● it entails the mobilization of resources to put the goal into operation.
STEP 6. MONITOR AND CONTROL
● involves the measurement of accomplishment versus the goal, often
requiring the setting up of control systems to determine performance.

CONTINGENCY PLAN are “what if” plans. They include actions to be taken if
initial plans do not work well or if events demand a sudden change.

LEVELS OF PLANNING
Strategic Planning – involves making decisions about the organization's long
term goals and strategies.
Strategic Goals – are major targets or results that relate to the long term
survival, value and growth of the organization.
Strategic Managers / Top Level Managers
● usually established goals that reflect both effectiveness (providing
appropriate outputs) and efficiency (a high ratio of outputs to inputs).
⮚ Typical strategic goals achieving growth, increasing market share,
improving profitability, etc.
Strategy – pattern of actions and resource allocations designed to achieve the
goals of the organization.

TACTICAL AND OPERATIONAL PLANNING

Tactical Planning – translates broad strategic goals and plans into specific goals
that are relevant to a particular unit in the organization.
Operational Planning– identifies specific procedures and processes required at
the lower level of the organization.
 Managerial Level Level of Detail Time Horizon

Strategic Top Low Long (3 – 7 years)

Tactical Middle Medium Medium (1 – 2

years)

Operational Frontline High Short (Less than 1

year)

Aligning Tactical, Operational, and Strategic Planning

To be fully effective, the organization’s strategic, tactical, and operational

goals and plans must be aligned – that is, ideally they will be consistent, mutually
supportive, and focused on achieving the common purpose and direction.

Methods for Aligning Tactical, Operational, and Strategic Planning

⮚ Strategy Map – is a tool for communicating strategy goals and helping the
employees to understand the parts they will play in helping to achieve
them.

⮚ Strategic Decision Making – is a process charting a course based on

long-term goals and a long-term vision.

⮚ Strategic Management – involves managers from all parts of the

organization in the formulation and implementation of strategic goals and
strategies.
Strategic Management Process

1. Establishing mission, vision, and goals.

2. Analyzing external opportunities and threats.

3. Analyzing internal strengths and weaknesses.

4. SWOT (Strength, Weaknesses, opportunities and threats) analysis and

strategy formulation.

5. Strategy implementation.

6. Strategic Control.

EXHIBIT 4.5
The Strategic Management Process
INDUSTRY and MARKET ANALYSIS

● Industry profile: major product lines and significant market segments in

the industry.

● Industry growth: growth rates for the entire industry, growth rates for key
market segments, projected changes in patterns of growth, and the
determinants of growth.

● Industry forces: threat of new industry entrants, threat of substitutes,

economic power of buyers, economic power of suppliers, and internal
industry rivalry.

COMPETITOR ANALYSIS

● Competitor profile: major competitors and their market shares.

● Competitor analysis: goals, strategies, strengths, and weaknesses of each

major competitor.

● Competitor advantages: the degree to which industry competitors have

differentiated their products or services or achieved cost leadership.

POLITICAL and REGULATORY ANALYSIS

● Legislation and regulatory activities and their effects on the industry.

● Political activity: the level of political activity that organizations and

associations within the industry undertake.

SOCIAL ANALYSIS

● Social issues: current and potential social issues and their effects on the
industry.

● Social interest groups: consumer, environmental, and similar activist

groups that attempt to influence the industry.

HUMAN RESOURCES ANALYSIS

● Labor issues: key labor needs, shortages, opportunities, and problems

confronting the industry.

MACROECONOMIC ANALYSIS
 ● Macroeconomic conditions: economic factors that affect supply, demand,
growth, competition, and profitability within the industry.

TECHNOLOGICAL ANALYSIS

● Technological factors: scientific or technical methods that affect the

industry, particularly recent and potential innovations.

EXHIBIT 4.6
Environmental Analysis

FINANCIAL ANALYSIS

Examines financial strengths and weaknesses through financial statements such

as a balance sheet and an income statement, and compares trends to historical
and industry figures.

MARKETING AUDIT

Examines strengths and weaknesses of major marketing activities and identifies

markets, key market segments, and the competitive position (market share)
within key markets

OPERATIONS ANALYSIS

Examines the strengths and weaknesses of the manufacturing, production, or

service delivery activities of the organization.

OTHER INTERNAL RESOURCE ANALYSES

Examines, as necessary and appropriate, the strengths and weaknesses of other

organizational activities, such as research and development (product and
process), management information systems, engineering, and purchasing.

HUMAN RESOURCES ASSESSMENT

Examines strengths and weaknesses of all levels of management and

employees and focuses on key human resources activities, including
recruitment, selection, placement, training, labor (union) relationships,
compensation, promotion, appraisal, quality of work life, and human resources
planning.

EXHIBIT 4.7
Internal Resource Analysis

Corporate Strategy

● identifies the set of businesses, markets or industries in which the

organization competes and the distribution of resources among those
businesses.

Concentration Strategy

● focuses on a single business competing in a single industry.

Business Strategy

● defines the major actions by which of organization builds and strengthens

its competitive position.

Low-cost Strategy

● it attempts to be efficient and to offer standard, no frills products.

Differentiation Strategy

● a company attempts to be unique in the industry.

Strategic Control System

● It helps the managers evaluate the organization's progress with its

strategy.
EXPERIENTIAL EXERCISE

OBJECTIVE

To study why and how a company adjusts its business strategy to adapt to
changing external environments.

INSTRUCTION

Using an Internet browser or a college’s library research por- tal, identify a recent
article from such business news outlets as The Wall Street Journal, Bloomberg
Business, Forbes, or Fast Company that describes a company that is changing
its short- and long-term business strategies. Please read the article and provide
answers to the following questions:

Article from:
https://www.forbes.com/sites/bernardmarr/2020/03/20/why-companies-turn-to-dig
ital-marketing-to-survive-covid-19/?sh=765133c42425

Mar 20, 2020,01:32am EDT|130,114 views

Why Companies Turn To Digital Marketing To Survive COVID-19

Bernard Marr Contributor Enterprise Tech

1. How would you describe the company’s former business strategy?

Traveling is one of the popular leisure activities in the Philippines but in

other countries. Philippine Airlines is one of the popular airlines in the
Philippines, a flag carrier and the national airline. Their former strategy
was differentiation strategy wherein they offered unique and different
services and products among their competitors at reasonable competitive
prices and at the highest level of quality consistent with such prices. Even
its prices are indeed expensive, but will surely give you more quality travel
and satisfaction. In terms of their destinations, it has many choices
compared to the other airlines in the Philippines. Their main strength is
their own products and services to encourage the consumer to choose
their brand or product over another in a crowded field of competitors.
2. Why is the company changing its strategy? What external forces are
encouraging it to change?

In the year 2020, an unexpected pandemic called COVID19 were spread

quickly all over the world. It causes lockdowns, closes the operation of the
companies and other businesses and has strict restrictions especially to
those who have a lot of people. Philippine airlines had a hard time during
this pandemic because all flights were cancelled and they needed to close
and stop the operation to avoid the contamination of the virus. As time
went by, the PAL slowly fell down. PAL is running less than 15% of its
normal number of daily flights after the Philippine government imposed
travel curbs. The company started to make a change and fight the virus.
They change their strategy into more competitive, can operate amid
pandemic and it is also safe for the people, the digital strategy. This
strategy is indeed helpful not only for this pandemic but for its long term.

3. How would you describe the new business strategy?

Philippine Airlines turned to digital marketing by joining a global trial for the
International Air Transport Association’s (IATA) COVID-19 digital passport,
part of a worldwide effort to safely ease travel restrictions. The Travel
Pass program aims to create a digital health ID based on standards of the
International Civil Aviation Organization. The IATA Travel Pass will help
the passengers to verify that they comply with health rules and COVID test
requirements, so they can board their flights with assurance and
confidence. In fact that Philippines Airlines is the first airlines in the
Philippines to trial this app and they assured that this technology can
securely, conveniently and efficiently help manage passenger travel health
credentials, The IATA Travel Pass will be available for iOS and Android
users and It will allow travelers to upload their passport for digital
biometrics and COVID-19 test results. PAL passengers using the app can
add their itinerary, review health rules and receive verification that they
have complied with requirements at their destinations. Moreover, the
Travel Pass will also fast-track the airport check-in process, reduce
passenger congestion at the airport and ensure seamless onward travel.
4. What strategic goals or major targets does the company hope to
achieve?

Philippine Airlines maintains aircraft with the highest degree of

airworthiness, reliability and presentability in the most cost-effective
manner and conducts and maintains safe, reliable and cost-effective flight.
It continues to achieve on-time performance on all flights it operates, as
well as providing safe, on time, quality and cost effective in-flight service
for total passenger satisfaction. And due to the evolving COVID-19
situation, PAL added more safety measures to protect their passengers. In
line with the highest standards, to ensure that the travelers enjoy a
healthy, safe, and clean environment. because PAL is committed to
providing the total quality travel experience to all the customers.

5. How does the company intend to translate its new strategic goals
into tactical or operational plants? Which levels of management will
carry out these plants?

By applying their vision, objective and values and making it possible to

achieve the ambitions of the company and run it day by day. Those things
really did and make it possible for Philippine airlines because Airlines
maintain aircraft with the highest degree of airworthiness, reliability and
presentability in the most cost-effective manner; and conduct and maintain
safe, reliable and cost-effective flight. It continues to achieve on-time
performance on all flights it operates, as well as providing safe, on time,
quality and cost effective in-flight service for total passenger satisfaction.
The Philippines Airlines offers services at reasonable, competitive prices,
and at the highest level of quality consistent with such prices. It meets the
needs of the public for moving people, goods, information, and in
particular for safe and reliable travel, transport, communication,
distribution, and related services. The company’s products and services
are the core company’s strength since these are what they mainly offer
and, in return, where the company generates its profit. On the other hand,
the decline in the number of the passengers carried placed the major
weakness of PAL since the passengers are relevant to the revenue the
company could earn. All levels of management are important in this
matter but for me the most important to carry out these plans is the
top-level managers because these managers are responsible for
controlling and overseeing the entire organization. They develop goals,
 strategic plans, company policies, and make decisions on the direction of
the business. In addition, top-level managers play a significant role in the
mobilization of outside resources. Top-level managers are accountable to
the shareholders and general public. The board of directors, president,
vice-president, and CEO are all examples of top-level managers.

6. To what extent do you think the new strategy will be successful in

addressing or adapting to the external forces? Explain.

The new strategy is the most effective way to assist and prevent the
virus's spread. It would be successful because some countries are still
dealing with pandemics. PAL now generates QR codes from the
Passenger Profile and Health Declaration (PPHD) Form. As a result, PAL
can continue to provide quality services while also protecting the health of
all passengers and the entire country.
CONCLUDING CASE

WISH YOU WOOD TOY STORE

Wish You Wood is a toy boutique located in the main shopping strip of a resort
town near Piney Lake. People who own cabins near the lake or come to visit the
local state park enjoy browsing through the town’s stores, where they pick up
pottery, landscape paintings, and Wish You Wood’s beautifully crafted wooden
toys. For these shoppers, Wish You Wood is more than a store; it is a destination
they associate with family and fun. The store’s owners, Jim and Pam Klein,
personally select the toys from craftspeople and toymakers around the world.
They enjoy their regular customers but believe selling mostly to vacationers has
limited the company’s growth. They decided that the lowest-cost way to expand
would be to sell toys online. However, after several years, they had to admit that
traffic to the store’s website was unimpressive. Thanks to e-mail and Facebook
reminders, they were luring some of their loyal in-store shoppers to the site to
make off-season purchases, but few other people looking for toys ever found
Wish You Wood online. Jim and Pam concluded that the next-best way to sell
online would be to partner with Amazon.com. Amazon’s Marketplace service lets
other retailers sell products on Amazon. The Kleins signed an agreement to list
the store’s most popular items with Amazon. For example, if a shopper is
searching for wooden dollhouses, Wish You Wood’s dollhouses will be included
in the search results. A customer who chooses to buy from Wish You Wood
places the order right on Amazon’s website. Under Amazon’s participation
agreement, the listings must be honest and may not link to Wish You Wood’s
own website or invite phone calls from customers. In exchange for giving the
products exposure on the site, Amazon charges a monthly fee plus a commission
on each sale.

Initially, Jim and Pam were thrilled about their decision to partner with Amazon.
They tracked each month’s sales and compared them with in-store sales. In the
first five months, sales jumped 45 percent, mainly because of sales on Amazon.
Then, suddenly, sales of popular toy train sets, which were particularly profitable,
stopped altogether. Puzzled, Jim visited Amazon to make sure the train sets
were still listed. To his surprise, he found that the train set was there, at the usual
price of $149, listed right after the same set available directly from Amazon, at
$129. He and Pam concluded that shoppers were now buying the product
directly from Amazon. It appeared that their store had helped Amazon identify a
product's consumer value.

The Kleins worried that they needed a new strategy. If they matched Amazon’s
price, they would lose most of the profit on their most popular items. Wish You
Wood was too small of a business to negotiate better prices from its suppliers. If
the store didn’t match Amazon’s price, it would continue to lose sales at the
Amazon site. Jim and Pam wondered whether they should pull out of Amazon
altogether or find a way to continue working with the partner that had become a
competitor. They also considered rethinking which toys to offer on Amazon.

DISCUSSION QUESTIONS

1. Prepare a SWOT analysis for Wish You Wood, based on

the information given.

Internal External

Strength: Upon researching, given Opportunities: The store can

the location of their store, Piney Lake
is one of the best holiday destinations
for tourists all over the world where
the store is located. At the point when
the families visit the lake, they enter
introduce its item to the worldwide
market by its own advertising and
business methodology. The level of
deals will be supported at the store
simply by improving items and
this store whether willing to purchase contributions. They can likewise grow
wooden toys or just pulled in towards to their e-clients by doing exceptional
its feature. Numerous sightseers are offers, discounts and
drawn in towards the store since the enrollment/membership programs.
area is in a decent state, this was their
primary strength and furthermore
individuals who live in cabins around
this state park are probably going to
be their clients. Also, unmistakably the
proprietors actually investigate and
pick admirably the wooden toys from
the chosen handcrafts around the
world and by that, it shows their
concerned administration to their
business. The other primary strength
was the craving for development since
they worked together with
Amazon.com and they benefit a
decent sum more than by selling it at
their place.

Weakness: In this modern era, I think Threats: It is understandable that

the owners have poor marketing skills
wherein they failed in pushing their
own store website since most of the
people nowadays are techy and it is
more convenient. Also, the reviews
given by local customers will be
known only in that town but not to
the world out there since their
customers are only based in their
district location. They also did not
widen their taste product since they
only focus on their wooden toys rather
than think innovatively to introduce
new products.
there will always be competition. Many
business owners are in the market
with the same platform. There is likely
a high chance that the product can be
easily replicated and put a bad image
to the original innovation from
craftsmen. Also one thing, price
difference will always be a threat since
some customers will likely look for less
price in a particular item in search list
especially in online shopping.

2. Using the SWOT analysis, what general corporate strategy would you
recommend for Wish You Wood? Should the store continue or change its
current approach?

In view of the SWOT Analysis that was created above, we propose them
to pick the methodology which totally keeps an eye on Client needs and
experiences. The grouping of the proprietors, Jim and Pam Klein, ought to be
more on gathering the client experiences. Thinking concerning what the client
needs is significant. They need to have input structures on their stores or
probably basically they need to refresh their framework in a manner to send an
input structure straightforwardly to their mobile once they make a purchase.
Along these lines, every one of the experiences of the clients will be gathered
and will work on the deals on the off chance that they make changes as per their
desire.
Second point that needs fixing is: Publicizing the store. Handouts are the
coolest alternative. They need to print out the leaflets with the pictures of the
items accessible alongside the store data which may draw in individuals from
various urban areas to purchase the items. Visiting cards additionally should be
appended alongside the leaflets.
Third point is: rather than having just the toy segment, lottery segment,
painting area and so forth it is better to have a little child furniture segment too as
it is a wood store. Each parent will be anxious to enrich their children's room with
the exceptional furnishings. This may likewise bring clients from various areas
Also, the store can apply two Strategic Management Processes, first, A
pricing approach in which a business sets different rates for the same product
depending on the client type and time of purchase. And since they got a partner
in amazon their price got higher, like in price differentiation strategy the price of
the same product is different in the store and online. In terms of price
differentiation strategy it is possible if they make their own online platform, they
will make varieties of choices of their product selection for example if you buy 5
pieces where there is a discount or if a bundle prices also discount based on
criteria is included. Also they can be a distributor of amazon, so it's possible to
propose a bulk price for amazon. Last is just like in the promo of other brands if
you purchase 2,000 then there is a discount on the second purchase.
Second, Low Cost Strategy wherein it is a pricing strategy in which a
company offers a relatively low price to stimulate demand and gain market share.
It can be adopted by any company, and is usually employed where the product
has few or no competitive advantage or where economies of scale are
achievable with higher production volumes since the customers want to buy a
product on amazon because they focused on keeping prices low and offering a
wide selection. Also this allows them to gain higher market shares and achieve
their high sales volume. Amazon is viewed as innovative but does not really
focus on having competition.
In the end, the store lacks the utility of making their store known, the
publicity that they need to put an effort into to make their product familiar and the
marketing strategy that most of the companies are applying to their own. We live
in a technological era where technology rules by just putting a minimal effort, you
can achieve what things in life you want.
REFERENCES:

Bateman, T., Snell S., and Konopaske, R., 2019. MANAGEMENT: LEADING
AND COLLABORATING IN A COMPETITIVE WORLD. Thirteenth Edition. New
York City: McGraw-Hill Education, pp.102-129.

Garalde-Orjalo, V., Frias, S. A., and Perfianco, E. C., 2018. ORGANIZATION

AND MANAGEMENT: CONCEPTS, CASELETS AND EXERCISES. English
Series. Philippines: Rex Book Store, Inc, pp. 30-31.