GOMLIME|o€d education Strategic Management 1 Suategy from a Deeper Perspective Module 009 Strategy from a Deeper Perspective -Avthe end ofthis module, you are expected to: 1. Cognitive: Recallimportant terms, concep's, and principles im the diffrent perspectives of strategy 2. Affective: Show interest in learning the different perspectives of strategy ‘and the horizontal nd vertical boandaries ofthe irm 3, Psychomotor: Wrap up important points pertaining to the different perspectives of strategy and horizontal and vertical boundaries ofthe firm Strategy froma Deeper Perspective Framework ofa Strategy Schemes and tactes were informally implemented when a person joined in a game, swhena govemment wentto war or whena business organization engaged in business, Their actions indicate an approach that is called as a srategy. Strategy took a more formal haracter through individuals who studies its varied forms and nature and modes of :mplementation tarcugh the years. Indviduals implement strategies in their personal lives and in the workplace. Individuals. organizations. groups. communities and governments devise strategies. Trwas stated and discussed in the previous module that swategies are plans which are formulated and smplemented with the purpose of attaining the ect goals and objectives of an organization, Likewise, the term is also associated with the map to chart, a plan to be executed, and 2 follow-up path. Moreover, itis an approach, a policy, @ tactic or a line of attack. this module, wewil scekto dig deeper into thetermstrategy sessence and diverge 4 litte or importantly, away from now it has always been treated and considered, THIS ‘module will focus onthe viewpoint of strategy as aconcept, 25a tool, and as people. Ssrategy as Concept ‘rough the years, the word strategy: due to st populanty, thoughts and erceptions evolved, Some matagenent guns consicer ae an ea concent Pereplons wrodnodel a ther or Eels anf views. Contes rated fo statgy are acording © Young. F.C. (2015).Strategic Management Made Simple(Firs). Manila ‘Rex Publishing Company, pp.140-142, are the following:|. Strategy is intellectual elastic, This concept came from 2 management guru {rom Japan in the name of Kenichi Ohmae, who wrote The Mind ofthe Strategist in 1992, For him, strategies orignate from creative minds and not from rote memory. Oamie is also Inown for developing a curious mode ofthinking called swategle thinking, which underscores that the stategst's mind Is characteristically intellecual. What is intellectual elasticity? According to the same source, intellectual elasticity refers to the adaptabilty and flexibility in coming up with realistic responses to changing situations. Three main players should be taken into account in designing business strategy and these are the customers the company, and the cempetitors. Strategy as intellectual elasticity canbe best portrayed according to Ohmae ir the following situations: "+ Strategy is referved to as creativity in radical infative launching. ‘+ Strategy may refer to an investment of additional time effort, and money im the factors that have the greatest potertial o identify the business's ‘key success factors, ‘+ Strategy has the flexibility to adapt and study to the environment segment. nd specify improvement strteges in matching the company’s ‘unique shillsto customers’ needs ‘+ Stretegy refere to comparing the company’s atrengthe with these of competitors and exploiting the advantages of building on superiority. For (Ohmae, the human mind has the infinite potential ofachlevinga creative mode ofstrategic thinking. 1. Strateay is @ mindset. Richard Pascale, a faculty of the Graduate Schcol of Business at Stanford University and an assodate professor at Oxford University in his book. Monaging the Edge. considers strategy 25 a frame of attitude ané mind. Forhim,an outlook that is deliberate end monitored should bedeveloped ‘yathia the business organization's aystem. any business cle begins with the business organization coming up with a strategic concept whichis of procuct ~ product or service, organizes itself around the basic product andin the process, (creates a personality and culture for itself. Then the business enjoys success for 4 whle but begins to fatter. ‘The business organization goes back to basics naturally and tres of rediscovering its old formula of success. Develoring 2 different mindset is Pascae's strategy concept. For him, business management should be future from the past. but the present should be managed from the future. In other words, the strtegces that should be adopted by companies are ‘those which are vealctic aut anticipatory and visionary. A.tratogie mindzot ie always innovative and active. It should be alive and fled with ideas. Itis more fon Tooking atthe future to deal with the present. Strategy 1s leaming_In the organizational learning model, change demands learning and the latter refers to continuous change. Likewise, the model refers ‘to the process of maintaining and enhancing performance experientaly, Learning is not an accidental activity based on facts and data although it may happen consciously or unconsciously. What is learning? According to the same ouree, leering refore te any imowiedge ané competenciesthat maybe old ané new, gained or mproved frompersons, books, institutions, training experiences tc. "Thiscomes in the form of data, information facts, sil, atitudes, values, orpailosoghies, Learning isnot limited to personal learning butit's centers iz organizations, An organization learningis easily determined and distingussheeONLINE, education o€ed Strategic Management Strategy from a Deeper Perspective imadivities, Moreover, cocording to the same source, thereare forms ofleerning domains, and these are continuousimprovement innovation and differentiation, benchmarking and continuous adaptation, Continuous improvement refers to constant ongomg process of doing things better. Life cycle improvement never tends, Innovation refere to leering nev’ conzepte and new ways of doing things ~new knowiedge, new modes of thinking and new preducts. Differentiation is a shade of inzovation ~ enhancing, improving aad enriching what § existent Benchmarking is the combination of contmuous adaptation which refers to responding toenvironmental changes and continuous improvement. The former also implies resilience, faxdblity and a spirit of openness te change. Strategy ic natural capital. Fer Hawken et Al(1996) as cited by Young, F.C. (2015), Strategic Management Made Sinple (First). Manila: Rex Publishing Company, pago 141, a strategy is atura capital. Natural capital components ‘include natural resources, ecosystem services ané living systems, The same source also states natural capitalism central strategiesand these are the following ‘+ Shift tobiolegicaly-inspired model to eliminate wastes 1+ Movingto a model of a solution-bared business where value is delivered as service flow “+ Reinvesting in natural capital to everse planetary destruction, It was emphasized that both economic and environmental priorities are compatible with one anether. Natural capital creates a compentive advantage ‘whea taken inthis ight - considering strategy asnatural capital Strategy is intellectual capital, Strategy is an intellectual capital in a loser perspective. Two categories of knowledge are considered in the book Intelectual Copital which is published in 2004 and these are the common Imowledge and intelectal capital, The frst one refers to stale and ordinary because minimum expectations and Inowiedge are satisfied by this knowledge category. A knowledge that Is important and cutstanding which is over and abote this category is called the intellectual capital. intellectual capital refers to synergistic convergence and interrelationships of the valued resources of 2 business organization, [tis intangble and can befelt. It createsimpact and can be assessed, In attaining sucress in business, itis critical. Strategy a2 Tool ‘Strategic guru consider also strategy as a tool, an approath mode by which goals ‘and objectives can be achieved. Strategy as a method, processor technique relevantly ‘catalyzes the growth and evecess af an organization. Some ofthess strategy ols are Course Modulethe information techrology anda balanced scorecard which was discussed flyin the previous module 1 Stralegy es information technology... Radical development of information technology iwas seen for the past 30 years. Things that have received impact of the said information technelogy are designing preducts and serces, domg ‘hings, and manufacturing Work becomes easier, simpler and more efficent because of information technology. According to Hammer and Champr (1998) as cted by Young, F.C. (2015), Stategie Monegement Made Simple (Firs). Manila: Rex Publichig Company. 143, tecinology is significant strategy to moving business organizations toward the fast achievement of corporate. and enfreprenourial succers. According to the seme soure, there are steps tobe taken in optimizing technology and these are the following ‘2 Intaly, business organization begins en process improvement. Here, 21 initiating changes witin the organization te enue wordoree is empowered The said changes are minute enhancements that are confined to specife functions. Teerestes unique efect on work culture although ths approach ‘ng litle progress sine all are invlved in he process. »b, Process redesign follows when process improvement sin place, This step goes beyond ust manag changes thatinvowves amore thorough andserious study of thegoals, recor and plan in the light ofbusiness profitability and customer expectations. In this step, thereis a greater Heed ior information terhnotngy ands the same Ges high ewes of changes sent “in Parsakg process redesign and Tesstance to” change ‘here ae more risks because the common isue her is keeping the status quo. «The business organszstion can pursue business processre-engineering, ‘when the process redesign is inplace, Waatis business process re- engineering? According fo Hanmer and Champy (1993) as cted by Young F. (2035). Srategic Managemert Made Simple Firs’), Manila: Rex Publishing Company. page 143, business process re-engineering (BPR) refersto the fundamental rethineing ad radical redesign of business processes soas to achieve dramatic erhancements in contemporary critical measures of ‘performance cuch 22 quility,coste quality qpeedand service, The technology's rele here isimpertant. Expectations of results are higher, costs for improvement are bigger anc time for a substantial redesign to materialize is longer in business process re-engineering, 2 Strategy as. balanced scorecard. Te silty to quantity performanceis a competitive strategy, Real measurement figures are given by tha! competitive strategy wherein ‘business organization are allowed o plan and devise ways f achieving ther se: goals and objectives. A balanced scorecard is one cf the mast recent developments ia ‘measuring performancer. In the book, The Balanced Scorecard writen by. 09 management gurus in the rame of Robert Kaplan and David Norton, baanced scorvcardas astrategy tool was intcoduced. Whats abalanced scorecard? According to Kaplan and Norton as cited by Young F.C. (2015) Strategic Mangement Made Simple (First) Mania: Rex Publishing Company, rage 144, abalanced scorecard refers to asstrategy template that ilustrates four significant perspectives for performance ‘measurement: learring and growtt, customer, intemal process and financal.ONLINE Education Oed Suatesic Management Strategy from a Deeper Perspective ‘© Learning and growth These measures are the engines of other measures. Im actualizing other measures, learning and growth measures motivate ‘employees; otherwiso, the business firm will fnd difficulty im traralating ‘strategies to workable performance ‘© Customer - These measures are utilized by business organizations so as to increase customer reach and sitisfaction. ‘© Internal process - Important measures are on supply chains for operationally ‘excellent organizations. The measures are on innovation for prosuctleader ‘organizaticns, while focusis on customer satisfaction for customer intimate ‘organizaticns. ‘© Bnancial - The needto determine amechanism that measures growth and ‘profitability is sessed on this perspective, The said perspectives need to be aligned to the vision and mission of the organization. TE incudes the business functions of finance. accounting. management. marketing human resource ard production. Strategy maps wereintreduced by Kaplan and Norton, as citedby Young F.C (2025). Strategic Management Made Simple (Fir). Manila: Rex Publishing Company. p. 1440 as to concretize the balanced scorecard and make it workable, Strategy maps feferto visual tools utilized in determining strategic goals, designing strategies, and implementing them. They are utilized to connect the Yalue-creating processes to the intangible assets. Strategy maps show four perspectives of the balanced scorecard. Learning and growth are at the bottom, consisting of information capital, human capital and organization capital. It is followed by the internal process perspective where customers, operations innovation and regulatory processes are emphasized. Product and service attributes, image and relationships are emphasized by the customer perspective, Thelast one, which is the productivity and growth strategies make up the finaxcial perspective. Activities are mapped and liked by cause-and-effect arrows so as to achieve strateglegoals. The process is sequential. Utilizing the balanced scorecard is a strategy and allows for accurate assessments of organizational indicetors raw data and specific measurements and the results of which are helpful in planning and running a company. People: strategy Aside from being 2 concept and 2 tool, strategy is also people. People are strategies im themselves. People are the individuals who possess effective management and leadership, monopolistic intellectual capital and crestvity. They are managers, executives, supervisors, subordinates and anyone who directs, leads and supports the business fim towardreallzing goalsand objectives They are strategy personified, Course Module1. Strategy is effective management and leadership. Effectiveness is the common denominator of effective management and leadership, Peter Drucker, who has been considered the "guru of all management gurus” has placed management's study and practiceto a level of great relevance, The same source cited examples of individuals who exemplify strategy as beth effective management aad leadership, ard these ae the following fa. Alfred Sloan - He was a professional manager and well known for his service at General Motors in 1950s and 1960s. For him, amanager should bee a decision-maker and aleader, He has a belief that a chef executive shoulénot have friends onthe job and studied management as discipline Some ofhisteachinge are the fllowing, ‘© Management is aprofession and usually, peogle inthe management preach but failed to practice ‘+ The professional should lessen his own interests and consider mere on the interest of customers. ‘© Professionals should make decisions according te facts but not by preferences and opinions. ‘+ Professional manager should see to it that only performance matters and notto change orlike people. ‘+ Performance is above the "bottom ine "and professional managers should set examples lke tolerance for diversity and integrity. ‘© Division and confit are desirable and necessary because these ‘bring about consensus, understanding and commitment. ‘© Leadership is performance, trustworthiness and consistent behavior and not public relations, charisma and showmanship. ‘© Professionals are servarés. bb. Harold Geneon - After Sloan, Concon is aid to be the greatest business manager. He became an excelent symbol in business maragement and was called the “michael angelo of Management’. His growth and acquisition policies made the International Telephone and Telegraph Company (ITTC) ‘the biggest empire inthe 1960s. He san ultimate and genius manager and. remembered with deep appreciation and fondness for impact on his people's careersand lives; he had a natural enthusiasm, high energy evel, land a quick mind. Some of his teachings or strategy lessons are the fallowing: ‘= One cannot run anything, even bueinese on a theory. There ie n0 formula, secret and no theory. +m runnng a busmess, one should start with the end and do everything one must doo reech it ‘© Everyone is paid m two coms: experience and cash. Take the former first ard the latter wil come later. ‘© Every business firm has two organizational structures. The first fone is the formal one which i wntten on the charte and the other one is shown in the everyday living relationship of people in the organization, ‘+ Management should manage. ‘© Leacership can only be learned and camotbe taught.gonuine Garten 0€9 suey amagenene : Suntegy froma Deer Perspective ‘© Egotum is the worst disease which can affect business executives in their werk and not alecholism. ‘The tol ofaumbers will make you fee. Develop aspirt of corporate entrepreneurship. ‘Theres a need for an independent and freeboard of directors. Emotional attitude is the Key clement in good business management. ‘e. Lee Lacocea - In management and leadership, Lacocca is one of the most ‘widely read biographies. He worked for Henry Fordand Mustang isone of hisbestcar He had amazing ideas ou adninistration which are ‘workable, For him, customer are very important. Lacocca conducted a ‘management system, which is the quarter'y review system. Some of his, ‘aching or arategy lessons are the fllowng ‘© When one borrows something it is advised to wnte it down so as not toforgetit. ‘© Use knowledge in fighting back andnot your ist. ‘© Establish prionties. Utilize time well, Managers are motivators and decision-makers with a team spirit. People ic the key to success and not the information, Do nct waste. un instead of ust walkang, Never make the same mistake twice. Geta good liberal arts education. The key ste get solid grounding in wring reading and psychology. ‘© Donet fight back with your fst when heis bigger than you. Bo friendly andshakw hands, Ire a signiicant ecoon onleaderchip, For some people leerning salesmanship takes time. One should practice it fepeatedly. ‘+ Unless one has something to compare to happiness, you will never Inowit ‘+ Bankers will end up owning an individual when he engage in a capital-intensive business. . Jack Welch known asthe "Tiger Woods of Management” who succeeded Reginald jonesas CEO of General Electric. Welch also created 2 learning enterprise wherein he emphasized that there is a philosophy on management and no gespel. Wen he berame the CEO of General Electric, there are several organizational realities he fixed, according to Young, F.C. (2035). Strategic Course ModuleManagement Made “Smipe (First), Mana: Rex Publishing Company. pp. 148-149, these are the fling He went ox to create a at management hierarchy because he sawv that G€ hat too mary organizational layers. He Was abolished in ‘rows postions, + He deat with the reality of supericial congentalty were on the surface: people in the company were pleasant out infact distrustful sand beneat it vith savagery boling beneath E + “He challenged hie members to actcn. He crested a vision, which io tobe number one or number two, tobe the learest and lowestin cost dnd to excel in productng qually products andservces. He cauped the said vision with excellence, quality and human element. He ropagated the strategy, “ix it sell or close it“ which means If Enull business units were notin rank 1 or 2. the said businesses Shoulé be sold or closed dovn. +) Ho called the GE asa poeple factory where be created the vitality cirve which is ike a normal cure where employees were classified {nto athe top 20, the val 70 and the bovom 10. The a people sess the 4Es of GEleadershio, namely: abilty to ENERGIZE, hi ESRI ives Suip o NEREIZE ther around he common goes sad the EDGE tomake tough yer-and-no decisions and the ality EXECUTE and deliver on their promises consstently. Allo these reed passion, The Beare the heart and pessiox of the compary. The (sarethose whe eannot have the werk done so must be removed. He pursued four major intatves: engaging in services of thelr Frodusts, globalization and esllaborating in Japen, adopting Sx Sama and pursuing E-business Si Sigia refers to 2 sated ‘ality tool which espouses 0/034% waste reductin, 2. Strategyismonopolisticintellectual capital, As mentioned inthe previous module, ‘ho otrategy i inteloctoal capital and competitive advantage, which ie crested by business organizations to be in the foreirontof business andindustry. When this ‘intelectual Capital is one-of-a-kind, monopolisticand only ene, then itis aunque stretegy. 3. Strategy is creativipy_ Crestivity is the challenge today for every business organization. Creativiy means that people should have unique atmbutes: imagination or a minds eye which generates bright ideas, inspiration which motivates people; orignality which innovates products, plans and processes ‘ingenuity which is markedly resourceful: foresight which isstrategic and prudent and highly competent expertise. People with these qualies drive ther ‘organizations to reach broader and higher perspectives. These kind of people creates 2 pulsating accomplishment environment and pride in the organizatioa. Creativity is the mind of the strategist. Creativity is strategy and strategy is creativity. A Guide Questions: “Answer the folowing to checkwhat you learned from the discussions so far. Check yourgonuine Goto O€d Sertosic Management Strategy from a Deeper Perspective answers from theprovided answer key atthe ond ofthis module. There is ro need to submit your ‘answers to Od. 1, Whatare the concepts relatedto strategy? 2, (te the steps to be taken n optimiaing technology. Different Perspectives of Strategy Aside from considering strategy 25 a concept tool and people, there are also other ‘ways oflockingat strategy. Some managers consider doing business like engaging in a war; others consider it as playing a game wherein one alms to Win. 1, Military Perspective of Strategy Business boardrooms are like battlefields. according to Yong F.C. (2015), Strategic Management Mad: Simple (First), Manila: Rex Publishing Company, pp. 280-265, Engaging m busine is ike fighting in war where gang and ammunition are used as their strategies during any engagement. To further understand this perspective, let us consider the contenis of two popular books written on warfare, ‘which will enable usto relate business strategy to military srategy. Accordingto the same author, these ae the following: a. The Artof War This books written by Sun Tau who is Chinese in origin. An ‘oldest military classic in Chinese literature in 400 to 320 BC, Here, Sun Tzu ‘was the commander-in-chief of HO Lu, the King of Wu of China in 500 BC. Based on this book Sun Tzu waged and won many battles, Some pieces of ‘advice which Sun Teu gave tohis military leaders which made them won in the said battles wherein present business manggers can relate and consider inrmning their own business. according tothe same author. are the flloving: + mplanning ¥ SunTau’s writing ‘War ig a matter afimportance tothe Sate, It concerns the lives and deaths of people and affects the survival or demise cf ‘the State, Ieneedscareful and detailed planning to win, ¥ Present-day Swategy Course ModuleIn doing business, its necessary to have thorough planing IE there will be no planning, there vill be dificult to attain + Onthebusinessenvironment ¥ Sun Teu'swriting ‘Victory will not be threatened if one knows his enemy and himself. One should lnow the terain, weather and there willbe acomplete vicery. v Present-day Strategy a any business venture, business organizations should competertiy familiarize with its extemal and internal envionment. += Onmeasurement © Sun Tau's writing Environment gives birth to measurement and mecsurement produses the force artimation. Farce estimation provides rise te Calculating the number of men, which gives rise to weighing strength. Thus, weighing strength ges birthto victory + Present-day Strategy ‘It must have an accurate mecsurement of performance such 2s sles figures, precision in preductivity, business expenses and investments in facilities, technology and others. Krowing its resources will ensure the achievement of set goals and objectives + On competence © Sun Tau's writing Generals should have the following strengths: Inowledge ‘wisdom, strictness, credibility, courage, benevolence, stillful unconcerned by punishment, unconcemed by fame, tranquil, place army first obscure, celf-discpline, uprght and dever with all-encompassing talents, + Present-day Strategy Eusiness executives and managers should possess qualities ‘that epitomize expertise, strong character, leadership, good ‘values, managementsklls and ethical standards. Convergence of ‘waits enables business organizations to attain suceess. © OtherLessons fromSun Tzu + sun Tews writing #2ONLINE! o€. GAT OK Strategic Management a Strategy froma Deeper Perspective “Compare the amy of your enamy with yours 2022 to now ‘your strengths and weaknesses.” ‘© Present-day Strategy #1 Change your strategies continuously, There should be predictablity. + Sun Tan's writing #2 "Whoever is the frst im the field will be fresh to await the ‘exemy. The second will hasten and arrive exhausted.” + Present-day Strategy #2 “al men can see tactics witereby one conquers but none can see strategy out of which victory evolved. + SunTax's writing #3 ‘The resultis insubordination whenthe common soldiers are too strong and their officers aretoo weak but the results collapse ‘when the common soldiers aretoo weak and their officers are too strong + Present-day Strategy #3 you attach places which are not defended, you can be sure ofvictary. . The Book of Five Rings - This bock is written by Miyamoto Musashi who is Japanese in origin, The way of strategy was discussed in this book. ‘According to the author, there are four ways by which men pass through life and these are the following + Gentlemen and samurai - belonged to highest category and included wealthy people and officals. + Farmers - nest in rank because they provided rice crops. + asticans or carpenters + Merchants - lster rose to prominence because of the wealth they ‘sccumulated, Musashi considered the said ways by which men pass through life in giving ppoin:s on how to run a business, specfically im using busness strategies to sttalh success and according tothe same source these are the following; |L. The Way of the Gentlemen Warrior“Tomaster the virtue of his weapons isthe way ofthe warzior. The gentleman wwillnot appreciate the beneiits of weaponry if e disikes the strategy.” Present-day Strategy ‘Businessmen or executives should learn how to appreciate the worth of his sllle capabilities and expertce. He should value rerources like capital people, facilites, technology, equipment and other assets at his disposel. This is what value means. 2, TheWay of the Farmer Farmer sees springs through autumns with an eye ox the changes of the ‘season using agricultural instruments. Present day Strategy “A businessman or executive can successfully manage 2 business ‘organization by being attuned to the environments changes with adequate andvalusble mformation. This i what observing means. 3. The Way of the Carpenter ‘To become proficientinthe utilization of histoolsis the way of the artisan. Firs, to lay his plans with a true measure and then to perform his work ‘according plan. Presentday Strategy ‘Business organi2ations have to be expert in sing business models tools ‘andrresources such that plans are achievable and accurate. Thus, goals can bbe concretized and achieved, This is wnat doing means. 4. The Way of the Merchant "The winemaker obtains his ingredients and puts them to use to make his living, To live by making profit ie alwaye the way ofthe merckant, Presentday Strategy Every businessman or executive shouldoptimize his human resources and ppotentias, His goal is to create growth opportunities, make profit and gain ‘every benefit or advantage available. This s what creating means. 2. Game Perspective of Strategy Strategy can be viewed from the standpoint of playing games which is based on the mathematical model called game theory, What is game theory? According to Game Theory (nd). Revieved December. 20, 2019 from eH ~ theory refers to ‘the study of strategy from a mathematics perspective. In game, decision-makers are called game players. Strategies are the alternatives or options from which the Players must choose from. Meanwhile, according to Young F.C. (2015) Straagie ‘Management Made Simple (First). Manila: Rex Publishing Company, pp. 168-171, ‘game theory is essentially lmked to neoclassical economics. The concept of ‘tioralityistheir commonality. Based on the assumption of neoclassical economics, ‘uma beiags are logical when making econcmc choloes wich means that a persongonuine GSTs O€d swap amagenene 3 Steg ftom Deper Perspective mates adecison in thelightof targeting to maximize is rewards. The said rewards may be in the form of returns or income. Tarough game strategies, «framework for a reality check is given, Games may be clasified into those waich are played with different moves and according to the same author these are the following: 4. Games with sequential moves ~ Sequential moves refer to the ctepe taken chronologically where an action is a consequence of a previous move. 2. Games with simultaneous moves - These are taken concurrently under conditions of imperfect or incomplete information. Here, movement saould ‘be dene by the players without the knowledge of what their co-players have decided todo. 3. Games with strategic moves ~these are device that ae appliedto work to onesadvantage. The action should be reverse and observable to adopt {his mode. Tare pes of statepc moves ean bea commitment heats and promses. Ths prncipe may be appled in ststions ike markets bargaining auction competition labor arbitration and policy setng whick arealimgortat in malg thebusnesssueess Styles in Game Strategies -There are certain styles in undertaking game strategies anc these include rational rationality, use of surprise, debberate study of previous moves undertaken, collection of information an earnest mave togo back to the root problem, collaborative action, effort to monitor moves, sometimes not doing anythingand abandonment. In essence, winning and achieving a reward is the focus of game perspective of strategy. In winning a game, information isa critical component. Camemoves can follow one another, bet the same time or simply smart which are all applicable to Dousiness, where different strategies can be formulated implemented and cevaluatod using the cad game moves, Dominant etratogioe give the highest payof! Therefore, appiying game strategies to business necessitates intuiive sills consideration of the environment, and utlization of surprise. 43, Economics Perspective of Strategy Analyss of business strategy fom the angle of economics should also be considered, There are durable principles that are applicable in business nowadays. although different strategic solutions continually evolve due to inevitable growth and change variables, The said theories or principles can guide business atrategiste to ‘understand better how business firms compete, thereby providing them bases when making decisions strategically. Acording to the same author, economists Course Moduleemphasized some adaptive stretegy principles in dealing with the different parameters in economics and these arethe following: A. Conditions ‘There 1s a continuous change in environmental conditions, The said ‘conditions affect the business evolution from simple to the mere complicated. ‘The preduct of development is growth so strategies should be sensitive to dereloping business conditions. BB, Infrastructure © Transportation ‘The need to transier products, services and people accelerated mobility and development. In any business activity. effciency delivery. shipping, hauling, storage of goods, money and services should be ‘considered in the formulated strategy, = communication sn trngng ideas and informatio to business entities, markets and agents communication plays an mportatros. Srateses should ‘ake rovsions foreficent inferaton tarsmsionand exchange et ‘usitzs information anéidess. = Financing ‘The role of financing dictates the strategies te be adopted by, firms. The degree, depth and extent of business strategies are cependentlargely on the business entiqy'sfmancng cmponent ‘© Production technology Strategies for competitiveness, profitability and cost effectiveness are largely dependent on the expertise's sophistication equipment proces: and tool while technology has catalyzed production. = coverment As the business grows in operations and size. the government regulates its activities. Great consideration cf goremment laws, policies and regulations chould be mcluded in tretegies. B. Guide Questions: “Arswver the following to check what you earned from the discussions so jar. check your answers from the provided answerkey ct theend of this madule. There is no need to submit your ‘answers t0 OE4.gontine GAT O€d sate Management, = Seategy froma Depes Ferspecive 1 Whatare the diferent perspectives of strategy? 2, Digeuss the military perspective ofetrategy. Horizontal and Vertical Boundaries / Strategies of the Firm 4. Yertial Boundartes/Strategtesof the Firm ‘A.whole range of actvities are involved in the production of any product er ‘operation of any service. It starts with the raw material acquisition and ends with the finished gocd distribution and sale. Accordingto Young F. C. (2013). Strategic Manggement Made Simple (First). Manila: Rex Publishing Company. page 173, this is referredto as supply chain management or the vertical chain, Major and support tacks are prevent in the vertical chain, Examples of major activites may include production, sales and distribution, while support activities may include a promotion, market research and janiterial and secunty services, The said activities may be classified as upstream activities vhichare conductedin the eariy processes of vertical cham and under downstream activities when conducted ia the latter stages. There are two choices available for a business frm: to perform the activity oF buy specialized providers in the market called market foms 2. Horizontal Boundaries/Strategies ofthe Firm ‘There are parameters that consider the horizontal boundaries of company, ‘The horizental boundaries of business include twothings and these are the variety of products and services and tie quantiy ofthe products produced and services rendered. One reason why companies produce the same products but cell them at ‘afferent pricesat reasonable margns ofprofrs may bein the quantity of products sold, Both economies of scale and scope are generaly present whenever there is large-scale production and marketing due to cost advantage, affecting and even shaping strategy decsions in business. ‘Whatis economies of scale? Accordingto the samesource, economies cf scale pertain toa condition exhibited when the average cost (AC) or the cost per unit of ‘output detlines over a range of output which cen be product ar cervice, Fer average cost to decline as output increases, the marginal cost or the cost of te last ‘unit produced should be less than the overall average cast, © Guide Questions Answer the following to check what you learmed from the discussions so far. heckeyour answers from the provided answer key at the end of this module, There is no need to Course Modulesubmit your answers to OEé 4. What is supply chain management? 2. Givethe horizontal boundaries ofa business. Answers to the Guide Questions Framework of Strategy Question 1: The concepts related to strategy are te following: strategy is intellectual elasucty; strategy is a mindset; strategy 1s learning sirategy is natural ‘capital and strategy is intellectual capital. Question 2: The steps to be taken n optimizing technology are the following: 1. Processimprovenent 2. Process redesign 43, Processre-engineering Different Perspectives of Strategy Question 1: The different perspectives of strategy ane multary perspective, game perspective and economics perspertive. Question 2: Military perspective of strategy states that engaging in businessis like fighting in war where guns ard anmurition are used as their strategies during ary engagement, Itempbasized thst planning and thorough knowledge ofthe external ard internal environment should alvayebe consiceredin running abusinese, Appredation ‘the shils, capabilities aud expertise of managers and it people should also be considered Horizontal and Vertical Boundaries / Strategies of the Firm. Question 1: Supply chain management or vertical chain refers to a whcle range of activities wherein the product ofany product or operation ofany service are involved, It starts with the raw material acquisition and ends with ‘he fniched good distabution and eae, Question 2: The horizontal boundaries of abusiness are the variety of products and services and the quantity of the products preduced and services rendered. References and Supple Books and Journals, 41. Hill, harles W.L, et. Al. (2015). Strategic Management: Theory (Eleventh). USA: Ccengage Learning. jentary Materials