Strategic Management

4/12/21

Prepared by:

Dr. Fershie D. Yap

College of Accountancy and Business Administration
Strategic Management Model

• Strategic Management Process

- Dynamic & continuous
- More formal in larger organizations
• Communication is a Key to Successful Strategic Management
Benefits of Strategic Management
Benefits of Strategic Management

• Non-financial Benefits
- Enhanced awareness of threats
- Improved understanding of competitors’ strategies
- Increased employee productivity
- Reduced resistance to change
- Clearer understanding of performance-reward relationship
- Enhanced problem-prevention capabilities
Why some Firms Do No Strategic Planning

• Lack of knowledge of strategic planning

• Poor reward structures
• Fire fighting
• Waste of time
• Too expensive
• Laziness
• Content with success
Why some Firms Do No Strategic Planning

• Fear of failure
• Overconfidence
• Prior bad experience
• Self-interest
• Fear of the unknown
• Honest difference of opinion
• Suspicion
Pitfalls in Strategic Planning

• Strategic planning is an involved, complicated, and complex

process that takes an organization into unexpected territory
Effective Strategic Planning
• A people process more than a paper process
• A learning process
• Words supported by numbers
• Simple and non-routine
• Varying assignments, team membership, meeting formats, and planning
calendars
• Challenging assumptions underlying corporate strategy
• Welcomes bad news
• Requires open-mindedness and a spirit of inquiry
• Is not a bureaucratic mechanism
Effective Strategic Planning
• Is not ritualistic or stilted
• Is not too formal, predictable, or rigid
• Does not contain jargon or arcane language
• Is not a formal system for control
• Does not disregard qualitative information
• Is not controlled by technicians
• Does not pursue too many strategies at once
• Continually strengthens the good ethics is good business policy
Comparing Business and Military Strategy
• Strategic planning started in the military
• Similarity
-Both business and military organizations must adapt to change
and constantly improve
• Difference
-Business strategy assumes competition
-Military strategy assumes conflict