Adaya, Reymond

MKT-MGT 4102
Strategic Management

Video No. 1. The Steps of the Strategic Planning

The steps in the strategic planning process include identifying vision statements, mission
statements, goals and objectives, strategies and tactics. The vision statement explains what a
company wants to achieve in the long run, usually within a period of 5 to 10 years, and in some
cases longer. It represents the vision of the company for the future and provides a clear direction
for planning and implementing strategies at the enterprise level. Mission statements, on the other
hand, are used by businesses to explain their purpose in simple and concise terms. This is usually
a sentence or short paragraph that describes the culture, values, and ethics of the company. In
connection, goals are the specific outcomes an organization wants to achieve, whereas objectives
are the specific actions and measurable steps that they need to take in order to achieve a goal.
Goals and objectives work in coherence to achieve success. Meanwhile, strategies are the set of
plans to achieve the goals while tactics are the specific actions or steps they need to undertake to
accomplish that strategy. These are the steps on how to conduct a strategic planning.

Video No. 2. Seven Steps in Strategic Planning Process.

I learned the 7 Steps in the strategic planning process. The first step is to develop vision
and mission by examining the business from the point of view of a consumer; analyzing its core
competencies; and identifying its major competitors. Next is to establish values and goals by
planning the future of the organization, implementing strategies to achieve that future and
defining business priorities. The process of providing choices to ensure the future success of the
organization and what differentiates the company from competition is the third step which is to
develop strategic options. After having the options, these should be evaluated by considering the
impact and determining the most appropriate and effective option. After drafting the final choice
of strategy, the possible risk should be assessed by performing a risk analysis. Key performance
indicator is also crucial for strategic planning as it helps to evaluate strategies in terms of
customer satisfaction, financial performance, internal processes, and employees. The last process
is the review of the strategy which includes the pre-implementation review before finalizing the
decision.

Video No. 3. Six Steps of Marketing Planning

I learned the six steps in the marketing planning process which include the following.
First is the situation analysis wherein the organization gathers information about the company
along with its mission, vision, organizational structure, strategies etc. After that, an external
analysis should be done by scanning the macro and meso environment. The macro analysis
includes the demographic economic social technological economic and political factors while the
meso analysis consists of the distribution, branch, competitive, and customer analysis. The third
step is the internal analysis wherein the organization assesses its micro environment using
strategic tools like 7s McKinsey, BCG matrix, and Porter’s value chain. Next is to run through
the strategic analysis by conducting a SWOT analysis, portfolio analysis, and evaluating some of
the major issues that may hinder the success of the plan. Step five is to formulate a marketing
strategy that is sustainable and is best suited to what the organization aspires to achieve.
Segmenting, targeting, and positioning are also crucial in this step. The final step is the
implementation plan wherein the company has to work with the marketing mix elements.

Video No. 4 Business Strategy– SWOT analysis

To sum up what I have learned, SWOT analysis is a very useful tool for assessing the
internal and external environment of an organization. Internal analysis should properly assess the
strengths and weaknesses to determine the factors that can capitalize the company and the areas
that limit the achievement of its strategic goals. After analyzing the internal environment, it
needs to be combined with external factors within the company to better understand the possible
opportunities and threats that have a significant impact on the company. Therefore, internal
audit helps identify internal factors such as strengths and weaknesses while the external audit is
geared towards the scanning of the external factors that might impact the business. These help in
the decision making and strategy development. Nevertheless, organizations need to maintain the
accuracy of internal and external analysis by avoiding prejudice and focusing on practical
solutions.

Video No. 5.
The Strategic Position and Action Matrix is a tool used by companies focused on
developing strategies related to an organization's competitive positioning. This tool helps in
developing the strategy that best suits the company based on resources and key strengths and
weaknesses. This matrix uses two criteria: environmental stability and industry appeal. In this
regard, the four quadrants contain aggressive strategies that lie between financial strength and
industry appeal. This is an attractive and relatively stable organization that chooses to compete
with similar companies. However, the conservative strategy lies between the company's financial
strength and its competitive advantage. This is usually a stable, low-growth organization which
should protect its successful products and develop new ones and think of penetrating new
industries. Defensive strategies lie between environmental stability and competitive advantage.
These lack competitive products and financial resources. If they don't take action, they probably
won't be able to survive. Finally, the competitive strategy of the SPACE Analysis is located
between industry attractiveness and environmental stability. These are companies that are
competitive but not stable..

Video No. 6. The BCG Matrix

 I learned that Boston Consulting Group (BCG) Matrix is a tool that is used to evaluate the
strategic business units in two dimensions- growth rate and relative market share. Growth rate
pertains to how the business is rapidly increasing while market share refers to the number of
shares of the market of a particular business. The tool classifies the business units as cash, stars,
question marks, or dogs. Cash cows operate are those business units that are dominant in the
industry with a large market share. Organizations need not to spend more cash and investment
since the company already earns a positive cash flow.  Stars are business units with large market
share in a rapidly growing industry. These are attractive units and can earn positive cash flow as
the industry matures and the market growth slows. Moreover, question marks are risky business.
It has the potential to become a star by investing the cash from cash cows or it could fail. Finally
dog provides litte profit for the company since it is a poor performer and can be considered for
divestment or liquidation.

Video No 7. The IE Matrix

I learned that one of the tools used in analyzing the internal and external factors in
business is called the IE matrix. The internal-external matrix is based on two dimensions– the
IFE weighted mean on the x-axis and the EFE weighted mean on the y axis. An organization has
to compute the weighted score of both the internal and external factors and check for its
corresponding score on the matrix. Basically, the three regions are: growth and build strategy
(cells I II IV) wherein the strategies should focus on intensive and integrative growth in order to
tap in opportunities for growth; then second is the hold and maintain strategy (III IV VII)
wherein market penetration and product development can be an option in order to sustain its
current position; and finally, the harvest and divest strategy (cells VI VIII IX) for retrenchment
and divestiture since it doesn’t provide the much needed cash flow for the organization.

Video No. 8. QSPM Matrix Strategic Management

The Quantitative Strategic Planning Matrix is a strategic management tool used to
evaluate strategic options and determine the relative attractiveness of a strategy. It determines
which among the selected strategy options are feasible and actually prioritizes these strategies.
The basic principle of the matrix is that a company systematically evaluates and investigates the
external and internal environments, carefully weighs the strengths and weaknesses of various
alternatives, performs an analysis, and then decides on a specific approach. Is to do. QSPM
basically consists of three steps. The first step is to identify the key strategic elements. Once
established, a SWOT or other similar form of analysis is performed to objectively assess the
strengths and weaknesses of each strategic element in a numerical format. Finally, based on the
information gained from the analysis, decide which strategy is best to implement. The
Quantitative Strategic Planning Matrix is useful because it allows strategists to explore different
strategies based on identified external and internal critical success factors.