DATA CENTER COLLEGE OF THE PHILIPPINES OF LAOAG CITY, INC.

BACHELOR OF SCIENCE IN HOSPITALITY MANAGEMENT

LEARNING MODULE

STRATEGIC MANAGEMENT

MODULE 5
“STRATEGY FROM A DEEPER PERSPECTIVE
AND STRATEGIC ANALYSIS IN ACTION”

Prepared by:

MARK RONNEL A. ESPEDILLON

Instructor

markronnelespedillon@gmail.com

09275219101
 DATA CENTER COLLEGE OF THE PHILIPPINES OF LAOAG CITY, INC.
BACHELOR OF SCIENCE IN HOSPITALITY MANAGEMENT

THE STRATEGY FRAMEWORK

LEARNING OUTCOMES
Particularly at the end of this chapter, the students should be able to:
1. Define the word strategy;
2. Distinguish strategy as a concept;
3. Explain why strategy is a tool;
4. Analyze in what ways are people considered as strategy;
5. Evaluate strategy as both a learning and a mindset; and
6. Demonstrate the utility of the balanced scorecard and strategy maps.

Strategy
- A Business Strategy is a set of competitive moves and actions that a business uses to attract
customers, compete successfully, strengthening performance, and achieve organizational goals. It
outlines how business should be carried out to reach the desired ends.

Strategy as a Concept
1. Strategy is Intellectual Elasticity – this concept came from Kenichi Ohmae (Japan’s only management
guru). Ohmae wrote “The Mind of the Strategist in 1982”. He says, “Strategies stem from creative
minds and not from rote memory. There are no magic formulas for creating brilliant formulas”.
Intellectual Elasticity essentially refers to flexibility and adaptability in coming up with realistic responses
to changing situations.

2. Strategy is Mindset. Richard Pascale, in his book “Managing the Edge”, considers strategy as a
frame of mind and an attitude. He says, “Nothing fails like success”.

3. Strategy is learning. Change demands learning, and learning means continuous change. Learning
from an organizational perspective is a process of maintaining and improving performance experientially.
Based on facts and data, Learning is not an accidental activity although it may happen consciously or
otherwise.
Learning refers to any old and new knowledge and competencies. Here are the forms
of learning domains:
a. Innovation – learning new concepts and new ways of doing things. It means
creating new knowledge, new products, and new modes of thinking.
b. Differentiation – It is improving, enhancing, and enriching what is existent.
c. Continuous Improvement – is an ongoing constant process of doing things
better.
d. Continuous Adaptation – refers to responding to changes in the
environment. It implies flexibility, resilience, and a spirit of openness to change.
e. Benchmarking – the combination of continuous improvement and continuous
adaptation.

4. Strategy is natural capital – Hawken et al. enumerated the components of natural capital namely:
a. Natural resources
b. Living Systems
c. Ecosystems Services

5. Strategy is intellectual capital – the book “Intellectual Capital” published in 2004, consider 2
categories of knowledge; the common knowledge and the intellectual capital.
a. Common Knowledge – defined as trite and ordinary because it simply satisfies minimum
expectations and knowledge.
b. Intellectual Capital is the synergistic confluence and interrelationships of the organization’s
valued resources.

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 DATA CENTER COLLEGE OF THE PHILIPPINES OF LAOAG CITY, INC.
BACHELOR OF SCIENCE IN HOSPITALITY MANAGEMENT

Strategies as a Tool
1. Strategy as information technology
2. Strategy as balanced scorecard – Robert Kaplan and David Norton introduced the concept of the
balanced scorecard as a strategy in their book, “The Balanced Scorecard”.
Balanced Scorecard is a strategy template which illustrates four important
perspectives for performance measurement, namely: learning and growth, customer,
internal process and financial.
Perspectives

Learning and growth measures are the engines of the

other measures. They motivate employees to actualize
Learning and Growth
other measures. Otherwise, organizations will find difficulty
in translating strategies to workable performance.
Customer measures are used by organizations to increase
Customer
customer reach and satisfaction.
For operationally excellent organizations, relevant
measures are on supply chain. For product leader
Internal Process organizations, the measures are on innovation, while for
customer intimate organizations, focus is on customer
satisfaction.
This perspective stresses the need to define a mechanism
Financial
that measures growth and profitability.

People as Strategy
1. Strategy is Effective Management and Leadership o There are various examples of individuals who
exemplify strategy as both effective management and leadership:
a. Alfred Sloan was a professional manager. He was well known for his service at
General Motors in the 50s and 60s. He spelled out the role of a manager as a leader
and a decision-maker. He studied management as a discipline and believed that a
chief executive should not have friends on jobs.

Strategy Lessons from Alfred Sloan

1. Management is a profession. Today, they preach it but do not practice it.
2. The professional should subordinate his own interests to those of the clients.
3. Professionals do not make decisions by opinions and preferences but should be
according to facts.
4. The job of a professional manager is not to like people, not to change people. It is
only performance that matters.
5. Performance is above the “bottom line”. It is also setting an example like integrity
and tolerance for diversity.
6. Dissent and conflict are necessary and even desirable.
7. Leadership is not charisma, public relations and showmanship but performance,
consistent behavior, and trustworthiness.
8. Most important lesson: the professional is a servant.

b. Harold Geneen is said to be the greatest business manager after Sloan. He worked
for International Telephone and Telegraph Company (ITTC), a Cuban company in
1959. He became a symbol of excellence in business management and was called
the “Michelangelo of Management”.

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 DATA CENTER COLLEGE OF THE PHILIPPINES OF LAOAG CITY, INC.
BACHELOR OF SCIENCE IN HOSPITALITY MANAGEMENT

Strategy Lessons from Harold Geneen

1. Theory G: You cannot run a business or anything else on a theory. There is no
secret, no formula, and no theory.
2. How to run a business: You read a book from the beginning to the end. You run a
business the opposite way. Start with the end and do everything you must to reach
it.
3. Experience and cash: Everyone is paid in two coins: cash and experience. Take
the experience first; the cash will come later.
4. Two organizational structures: every company has two organizational structures:
the formal one is written on the charts. The other is manifested in the everyday
living relationship of the men and women in the organization.
5. Management must manage.
6. Leadership cannot be taught. It can only be learned.
7. The worst disease that can affect business executives in their work is egotism, not
alcoholism.
8. The drudgery of numbers will make you free.
9. Cultivate corporate entrepreneurial spirit.
10. There is a need for a free and independent board of directors.
11. The key element in good business management is emotional attitude.

c. Lee Iacocca studied mechanical engineering, then shifted to industrial engineering.

After which he took up business courses like management and accounting. He worked
for Henry Ford, and one of his best car products was the Mustang.

Strategy Lessons from Lee Iacocca

1. When you borrow something, write it down lest you forget it.
2. Do not fight back using fist. Use Knowledge.
3. Establish priorities.
4. Use time well.
5. Managers are decision-makers and motivators with a team spirit.
6. The key to success is not information but people.
7. Do not waste.
8. Why walk when one can run.
9. Do not make the same mistake twice.
10. Get a good liberal arts education. The key is to get a solid grounding in reading,
writing, and psychology.
11. If he is bigger than you are, do not fight back. Use your head instead of your fist.
12. Shake hands and be friendly. It is an important lesson on leadership.
13. Learning salesmanship takes time, for some. One should practice it repeatedly.
14. You will never know happiness unless you have something to compare it to.
15. Do not engage in a capital-intensive business or else, bankers will end up owning
you.

2. Strategy is creativity – pushed companies to come up with unique products, services, and ways of
handling sales and relationships.

3. Strategy is monopolistic intellectual capital

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 DATA CENTER COLLEGE OF THE PHILIPPINES OF LAOAG CITY, INC.
BACHELOR OF SCIENCE IN HOSPITALITY MANAGEMENT

CASE ANALYSIS

LEARNING OUTCOMES
Particularly at the end of this chapter, the students should be able to:
1. Understand the different parts of a case study;
2. Analyze and prepare a given case;
3. Understand the different parts of a strategic analysis;
4. Develop a strategic analysis paper; and
5. Analyze cases according to a given format.

Conducting Case Analysis

 Case is essentially a situation that requires a decision. It may be business, technical, or administrative in
nature. The case method consists of various cognitive activities like interpretation, analysis, and synthesis
of facts and situations.

Case Method
 A systematic, logical, and formal process
 Consists of various cognitive activities like interpretation, analysis, and synthesis of facts and situations.

Contents of a Case Analysis

 A Case Analysis generally comprises the following components arranged in this order:

1. Title of the Case

2. Time Context
3. Perspective
4. Central Issue
5. Statement of Objectives
6. Areas of Consideration: Internal Environment
External Environment
7. Alternative Courses of Action
8. Decision Matrix
9. Conclusions
10. Recommendations
11. Action Plan

Time Context – refers to the duration of the case.

Perspective – the individual states specifically from whose point of view he/she is looking at the case.
Central issue – a condition that necessitates a resolution. It may be dilemma, an uncertainty, or simply a
major concern that needs to be addressed.

Statement of Objectives – enumerate the specific goals to be achieved. It helps to determine which
alternative courses of action can be taken to solve the case. Setting objectives requires following the SMART
Goals which means Specific, Measurable, Attainable, Realistic, and Time-bound.

Areas of Consideration – the facts of the case. They are dominant variables in organizational, local, and
even global environments that may have contributed to the problem or may have been the root cause of the
central issue itself.

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 DATA CENTER COLLEGE OF THE PHILIPPINES OF LAOAG CITY, INC.
BACHELOR OF SCIENCE IN HOSPITALITY MANAGEMENT

Alternative Courses of Action – an alternative is an option to take or a choice to make. Alternative courses
of action possess the following characteristics:
a. They are mutually exclusive with no redundancies or overlaps; they are independent of each other.
b. They specify the period.
c. They are realistic, relevant, and appropriate.

Decision Matrix – a decision is a judgment, a resolution, or a conclusion to make.

Decision Matrix Table
Alternatives 1 2 3
Variables
Risks Involved
Costs Incurred
Benefits Derived
Ease of Implementation

Conclusions and Recommendations

Action Plan – should accompany recommendations. It is a program of activities that includes the following:
activities to be implemented, objectives to be attained, department, division, or unit involved, the person
responsible, the costs involved, and other resources needed, and a timetable. The Gantt chart will be used in
this stage.

REFERENCE:

Young, F. (2015). Strategic Management Made Simple. Rex Book Store Inc. Sampaloc Manila.

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