BATANGAS STATE UNIVERSITY

College of Accountancy, Business,

Economics and International Hospitality
Management Batangas City

Graduate School

GS- Strategic Management MBAT 1102

Theory Mastering Strategy: Art and Science

Lecturer: PROF. NICKIE BOY MANALO

Student: ANDAL, AARON V.
Student No.: 21-56664
Course: MASTER IN BUSINESS
ADMINISTRATION Date: 27 AUGUST 2022
I. Objectives

After reading this chapter, you should be able to understand and articulate
answers to the following questions:

1. What are strategic management and strategy?

2. Why does strategic management matter?

3. What elements determine firm performance?

II. Definition of Terms

 Management - The managing or directing of anything (such as
a business) The management of the new owners enhanced
the company. 2: When it comes to money management, wise
use of resources to achieve an end requires exercising
extraordinary caution.
 Strategy - a broad direction is established for the business and
all of its parts to follow in order to reach the desired state in the
future. The thorough strategic planning process yields
strategy.
 Prescriptive- giving detailed guidelines or instructions on how
to perform a task. The new laws/regulations have drawn
criticism for being overly prescriptive.
 Descriptive - giving observations on a subject's traits: used to
characterize a descriptive narrative. The descriptive basis of
science is something that is mentioned, included in, or based
on things of observation or experience.
 Intended- It has been designed to accomplish that goal. When
something is intended for a certain individual, it has been
thought out to be used by them or to have some sort of effect
on them.
 Emergent- Without conscious planning, an opportunity
(product, organization, or market) can materialize.
 Realized- are the result of a firm's deliberate strategy, which
consists of the components of the intended strategy that the
firm continues to pursue over time, and its emergent strategy.
A firm's intended strategy is what the firm intended to do.

III. Summary

The goal of this introductory chapter is to help you comprehend what

strategic management is and why it is significant. Because strategy is a
complicated idea, we start by outlining The Five Ps, which are five
different approaches to consider what strategy entails. The evolution of
strategy from ancient times to the present is then examined as we go
through many centuries. We conclude this chapter with a conceptual
model that illustrates one path executives can take to become masters of
strategy. 

The Five P’s:

1. Planning is A carefully crafted set of steps that a firm
intends to follow in order to be successful.
2. Ploy is a specific move designed to outwit or trick
competitors.
3. Pattern is the degree of consistency in a firm’s strategic
actions.
4. Position is the firm’s place in the industry relative to its
competitors.
5. Perspective is How executives interpret the competitive
landscape around them.

Strategic management is crucial in business because it enables an

organization to identify areas for operational development. They
frequently have two options: either they can use an analytical method to
find prospective risks and possibilities, or they can just adhere to broad
rules. An organization may opt to use a prescriptive or descriptive
approach to strategic management depending on the nature of the
business. A prescriptive model outlines tactics for creation and
implementation. A descriptive method, on the other hand, explains how a
business can create these plans. Strategic management focuses on
firms and the different strategies that they use to become and remain
successful. Multiple views of strategy exist, and the 5 Ps described by
Henry Mintzberg enhance understanding of the various ways in which
firms conceptualize strategy.

Setting policies, procedures, and goals in order to increase a company's

or organization's competitiveness is the process of strategic
management. Strategic management typically focuses on efficiently
allocating personnel and assets to accomplish these objectives.
Strategic management frequently entails strategy assessment, internal
organizational analysis, and company-wide strategy implementation.

Most organizations create intended strategies that they hope to follow to

be successful. Over time, however, changes in an organization’s
situation give rise to new opportunities and challenges; Organizations
respond to these changes using emergent strategies. Realized
strategies are a product of both intended and realized strategies.

The strategy that a company intends to implement is referred to as its

intended strategy. An organization's strategic plan often includes a
detailed description of its intended strategies. A business plan is the
name given to a strategy plan developed for a new firm. Frederick Smith
was required to complete a business plan for a hypothetical corporation
as part of his Yale undergraduate studies in 1965. His proposal outlined
an efficient delivery system that would move packages through a central
hub before delivering them to their final destinations. A few years later,
Smith founded Federal Express (FedEx), a business whose approach
was largely consistent with the framework presented in his class
 assignment.

The plan that an organization really employs is known as a realized

strategy. A firm's intended strategy, or what it had planned to do, its
deliberate strategy, or the aspects of the intended strategy that the firm
has continued to pursue over time, and its emergent strategy combine to
create its realized strategies (i.e., what the firm did in reaction to
unexpected opportunities and challenges). Fast package delivery
through a centralized hub was the founder of FedEx's planned strategy,
and it continues to be a key component of the company's actualized
strategy. The intended and emergent strategies of Southern Bloomers
Manufacturing Company, which focus on underwear and gun-cleaning
patches, have had a significant impact on the company's realized
strategy.

IV. Literature of the Study

Ineffective implementation of strategy is one of the most frequent causes

of business bankruptcy (Hosiery, Chambermaids, Onerous, & Saudi,
2013). The adaptation to a market that is always changing and seems to
be getting more complicated defines strategy in significant part. Making
intricate bets and then making difficult decisions afterward constitute true
strategy. Markets that have historically been stable allowed managers to
rely on sophisticated plans that were based on projections of the future.
But opportunity seizing may call for a different strategy in the current fast-
paced economy and the ascent of the millennial millionaires.

Internet businesses appear to be using tactics that demonstrate one or

more points of difference simultaneously. Despite the controversy, Porter
is frequently quoted in the literature and is held in high regard by both his
admirers and detractors, who agree that he has significantly advanced the
area of strategic management. Strategic management, according to Nag,
Humpback, and Chin (2007), lacks an identity.

The managers will be able to act rapidly to seize possibilities more quickly
thanks to the straightforward guidelines. Customers will choose to spend
their money with the business that offers the best value. The second
guideline of Martin (2014) is that strategies do not need to be perfect. The
plan should contain some element of risk, and boards shouldn't forbid
management from doing so when establishing the strategy. The plan is
actually weakened by this.

The first is the mission, which outlines the long-term objectives. The
second is a list of the projects the organization will undertake in order to
achieve its objective. The initiatives' financial impact is the third factor.
Martin (2014) suggests three guidelines for strategic planning to avoid the
trap of concentrating on internal metrics rather than the external client.
Rule number one is to keep the strategy straightforward by concentrating
on what will draw clients.

An intriguing viewpoint on strategic management and its connection to

 time is offered by Multicast (2009). The most common way that strategic
planning is envisioned is as long-term business planning. The author
advises management to make strategic planning decisions while also
taking into account the past, the present, and the immediate future.

V. Caricature

“Strategic management is not a box of tricks or a bundle of techniques. It is

analytical thinking and commitment of resources to action. But quantification
alone is not planning. Some of the most important issues in strategic
management cannot be quantified at all.”

-Peter Drucker

VI. Conclusions

This topic provides an overview of strategic management and strategy.

The discussions helped us to realized numerous conceptualizations of the
concept of strategy and how crucial effective strategic management is to a
company's long-term success, and can make an informed decision. The
study of strategic management provides tools for successfully directing
firms, but it also necessitates mastering the skill of knowing when and how
to use unique thought. Understanding both the science and the art of
strategic management is necessary to support firms as their plans evolve
and change over time. These tools will also assist you in efficiently
 planning your career path and understanding the strategic management
practices of the organizations you will work for.

VII. Bibliography

Dave Ketchen, Jeremy Short (2016). Mastering Strategic Management,

Auburn University, University of Oklahoma
https://2012books.lardbucket.org/books/strategic-management-evaluation-
and-execution/s05-mastering-strategy-art-and-sci.html