Strategic Management

Pointers to Review

-Understanding Business Organization

A business organization can be a sole proprietorship, partnership, or corporation

-Strategy Implementation
refers to activities or processes which ensure that comprehensive plans formulated at the three levels of
management are efficiently executed to achieve the goals and objectives of a company.

-Management Control System

tool that collects and uses information to assist managements in monitoring and reviewing the activities.

-VMGO
The VMGO must be consistent from the corporate level down to the functional level of a company. It must have
a hierarchical order from the vision to the policies.

-Policies
are internal broad guidelines intended to support the formulation of a strategy in order to achieve organizational
goals and objectives through the proper utilization of resources

–Strategy Implementation at Corporate Level including KPI

-Approaches to Corporate Level Performances

Traditional Approach
The traditional approach to evaluating the corporate level performance involves the use of accounting data
presented in the financial statements of a company.
Total Perspective Approach
Total perspective approach does not only evaluate the performance of a company in terms of its financial areas
but also considers the non-financial areas.

-The Hierarchy and Consistency of the VMGO

Consistency is important in the implementation of a strategy. The VMGO must not only be vertically consistent
but also horizontally consistent among the different functional levels. It cannot attain horizontal consistency if
one or more functional units cannot align its or their activities with other units.

-Functional Level Strategy Evaluation Approaches

Responsibility Center Approach
Benchmarking Approach
Management Audit Approach
-Different Organizational Structures that Influence the Patterns of Relationship
1. Flat structure.
2. Functional structure.
3. Divisional structure.
4. Matrix structure.

-Different Leadership Style Employed by the Managers

1. Autocratic
2. Laissez-faire
3. Democratic
4. Bureaucratic
5. Transformational
6. Transactional
7. Situational

-3 Preparation to Implement Business and Functional Level Strategies

1. Programs
2. Budgets
3. Procedures

-Classification of the Roles and Responsibilities of Managers at Various Level.

Planning. Organizing. Staffing. Directing. Controlling

-Different Approaches to Evaluate the Strategy Implemented at Functional Level.

Responsibility Center Approach- a unit in a company that is controlled by a manager who is accountable based
on an entrusted responsibility.
Benchmarking Approach- process of comparing the current products, services, and processes against those
considered the best.
Management Audit Approach- systematic process of evaluating the performance, competence, and capabilities
of functional level managers

-Formulation to Implement a Corporate Level Strategy.

1. Vision and Mission
2. Goals and Objectives
3. Strategy and Policies