Module 1 BA 414

COLLEGE OF COMMERCE
BUSINESS ADMINISTRATION AND ENTREPRENEURSHIP

PROGRAMS
COURSE MODULE FOR BA 414 – STRATEGIC

MANAGEMENT
COURSE ORIENTATION
Dear Augustinians:
Welcome to BA 411 - Strategic Management course! Managers are hired by organizations

to make skillful decisions and solve problems. For them to be effective and efficient in
achieving organizational goals, there is a need to conduct environmental scanning,
formulate appropriate and innovative strategies and program/action plans to address the
strategic issues and to achieve organizational objectives factoring in relevant external and
internal variables, implement the designed strategies, evaluate and control. The strategic
management course will help you do these with ease.
The adoption of online learning in the University is forced by the pandemic which everyone
has to face and deal with. This online learning is enhanced with the use of learning
modules.
This module packet has lessons and assignments you will see in every module. Module
packets can be used to supplement virtual class meetings/synchronous sessions and for
those who experience issues with internet access and/or connectivity. With this module
packet, you can review all course materials offline. However, you will still need to complete
assignments and activities, such as discussion posts, online.
Enjoy learning! Enjoy your strategic management journey!
COURSE DESCRIPTION:
AY 2021-2022 Module Packets for BA 411 (Strategic Management) | College of Commerce |

University of San Agustin, Iloilo City, 5000, Philippines
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The course deals with the comprehensive and strategic approaches to management
and the interaction between industry evolution, market structure, and strategies of
firms. The course will enable the students to assess environmental factors that impact
the organization, scan its internal and external environment, formulate corporate
strategies for a company understudy and do a strategic audit of a business
organization.
COURSE OUTCOMES:
Upon the completion of this course, learners are expected to:

1. Identify strategic issues and relevant external and internal factors that need to be
addressed by the company through the use of strategic management analytical tools
and craft vision and mission statements that are ethically sound and that take into
consideration corporate social responsibility and nation-building dimensions.
2. Formulate appropriate and innovative strategies and program/action plans to
address the strategic issues and to achieve company objectives through the use of
strategy formulation frameworks.
3. Design a Balanced Scorecard and a performance monitoring system
GRADING SYSTEM:
Term Grade:
Summative Tests/Research Proposal 40%
Performance-based Assessment 60%

Total 100%
Note:
• Final rating is the average of the prelim grade, midterm grade and final term grade

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• Passing grade for all activities, quizzes, assessments is 60%
COURSE POLICIES:
Communicating with the Teacher

It is your responsibility to communicate with your teacher about questions or issues
that prevent you from completing assignments or completing this course.
Plagiarism
Plagiarism is using someone else’s words instead of your own. In this course, you are
expected to use your own words and ideas, and to acknowledge any sources you use
to gather ideas. Plagiarism is not allowed in this course.
COURSE OUTLINE:
WEEK TOPIC ACTIVITIES

Interactive discussion
Course Orientation and Introduction to Question and Answer:
1
Strategic Management Recitation
Interactive Class Discussion

Assignment
Company Exposure
Data Gathering and Analyses
Collaborative Learning
2 Module 1: Company’s Direction Setting
Demonstration
Facilitation
Quiz
Summative Test

Assignment
Module 2. External and Industry
Company Exposure
3 Assessment
Demonstration
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Facilitation
Quiz
Summative Test

Assignment
Company Exposure
4 Module 3. Internal Assessment
Demonstration
Facilitation
Quiz
Summative Test

Assignment
Company Exposure
Module 4. Strategy Formulation:
5-6 Strategy Choices
Demonstration
Facilitation
Quiz
Summative Test

Assignment
Company Exposure
Module 5. Strategy Formulation
7 Framework
Demonstration
Facilitation
Quiz
Summative Test

Assignment
Company Exposure
Module 6. Strategy Implementation, Data Gathering and Analyses
Evaluation and Collaborative Learning
8
Control Demonstration
Facilitation
Quiz
Summative Test

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Assignment
Company Exposure
Module 7: Preparation for STRAMA
Paper
Demonstration
9 Financial Projections and Implications of
Facilitation
Strategies
Written Presentation of
Oral Presentation and Defense
STRAMA Paper
Oral Presentation of STRAMA
Paper
REFERENCES:
David, Fred R., David, Forest R., and David, Meredith E. (2017).
Strategic management: A competitive advantage approach, concepts
and cases. ( 16th ed.). Singapore: Pearson Education, Inc.
David, F.R. (2011). Strategic management: concepts and

cases (13TH ED.). New Jersey, USA: Pearson Education,
Inc.
Dess, Gregory, Mcnamara, Jerry, Eisner, Alan, and Lee,

Seung-Hyun. (2012) Strategic Management: Creating
Competitive Advantages (9 th Ed.). Singapore: Mcgraw-Hill
Printed Education.
Learning
Resources Hill, Charles E. L., Schilling, Mellisa A., and Jones, Gareth R. (2020).
Strategic management: Theory & cases: An integrated
approach.(13th ed.). Singapore: Cengage.
Hitt, Michael A., Ireland, R. Duane and Hoskisson, Robert E. (2020).

Strategic management: concepts, competitiveness and globalization.
(12th ed.). Singapore: Cengage.
Wheelen, Thomas L., Hunger, J. David, Hoffman, Alan N. and

Bamford, Charles E.(2017). Strategic management and
business policy: Globalization, innovation and
sustainability.(15th Ed.) Singapore: Pearson.

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http://202.28.25.105/e-
learning/courses/703309/document/StrategicManagementDavid.pdf?
cidReq=703309
https://onlinelibrary.wiley.com/journal/10970266, Strategic
Management Journal
https://www.emerald.com/insight/publication/issn/1755 -425x,
Journal of Strategy and Management
https://www.strategicmanagement.net/smj/overview/overview ,
Strategic Management Journal
https://ijsm-journal.org/IJSM-JOURNAL/Default.aspx, International
Journal of Strategic Management
http://www.sciedupress.com/journal/index.php/jms , Journal
of Management and Strategy
https://www.inderscience.com/jhome.php?jcode=ijssm ,
Web and International Journal of Sustainable Strategic Management
other
Learning https://www.sciencedirect.com/journal/international -strategic-
Resources management-review, International Strategic Management
Review
https://www.questia.com/library/p150926/academy-of-
strategic-management-journal, Academy of Strategic
Management Journal
http://www.sagepub.com/sites/default/files/upm-
binaries/53794_Chapter_1.pdf
http://rizvihmct.com/wp-content/uploads/2017/02/Semester-VI-
strategic-managment.pdf
https://youtu.be/CJm5l01l3Fw?t=39
https://youtu.be/m4O9JweJg-A?t=24
https://pressbooks.lib.vt.edu/fundamentalsofbusiness3e/chapter/chap
ter-4-ethics-and-social-responsibility/

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CONSULTATION HOURS:
FB Messenger: 11:00 AM – 12:00 NN Monday and Thursday

1:00 PM – 2:00 PM Tuesday and Friday
CONTACT INFORMATION:
ejbugos@usa.edu.ph 0939 8565597
TEACHING-LEARNING METHODS:
1. Video Conferencing/Meeting. A 60-minute online session will be held every first
hour of the scheduled class. In that session, the professor will review issues from
the previous week as well as discuss material from the current week and respond
to students’ questions. During some sessions, students will make individual or
group presentations. Student attendance and participation is required unless prior
arrangements have been made with the professor. The session will be archived for
student review and Power-Point slides used by the instructor and/or students will
be distributed to the class.
2. View Lesson. Each module contains voice-over Power-Point presentation
reviewing module topics.
3. Discussion Forum. Students will discuss topics relevant to the module material in
the Discussion Forum.
4. Individual/Group Homework/Assignment. Every week students will be assigned
individually and to groups to answer assignments assigned by the Professor. The
solution will be submitted in a Written Word Document/Power-Point presentation
and one or more groups will present their outputs to the class.

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5. Summary of Main Points. The professor will summarize the main points at the end
of each module.
6. Module Quiz/Test. A quiz will be given at the end of each module to assess the
student’s understanding of the theories/concepts. The results of the quiz will be
used to determine what further discussions are to be made.
7. Individual/Team Activity. Individual/team activities are used to further illustrate real-
world examples of subject/course topics or perform specific tasks. For all
assignments students should be prepared to answer questions about their outputs
and be able to illustrate in online class its subtler aspects. Online class discussion
of outputs serves to highlight analytical methods, indicating specifically, and ways
to discern the most relevant focal points. Written outputs serve to determine the
facility of students in application, analysis and creation of knowledge and
demonstration of skills expected from them. Team activity is a collaborative self-
learning activity using the module or similar materials as input intended to achieve
selected learning outcomes as outputs.
8. Midterm and Final Exam (Summative Test). The midterm and final exam
(summative test) will be given at the end of every term through NEO LMS.
STATEMENT OF EXPECTATIONS
This course is required for all BSBA students. It is generally considered somewhat a
demanding course. The goal is for students to learn a lot, work hard, and enjoy the
experience. Students are expected to attend online class and to study regularly. It is
expected that the faculty teaching the course will be available to help students.
The knowledge that students are expected to gain from this course is important. It can
impact their career and the competitiveness of the organization that looks to them for
a contribution. Much of the learning that takes place will not occur in the classroom. It
occurs when students are working on the material outside of class – as they read, think,
analyse, apply the concepts to real problems, and work in teams. The amount that

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students learn and the level of skill that each develops will be directly proportional to
the amount of effort put forth in preparing for class. The classes should be considered
as opportunities to discuss and apply the material, and to develop communication and
leadership skills. They are also opportunities for the professor to provide insight, to help
clarify issues, and to evaluate student performance. Like any athletic or artistic
endeavor, most of the knowledge acquisition and skill development takes place when
a student is practicing/studying.
As professionals, you are aware the importance of strong skills, oral and written.
Letters, reports, and short email notes all indicate to others our ability to communicate.
Since clear writing and speaking follow clear thinking, others will form opinion about
your ability and work ethic. Typographical errors, misspelled words, or poor diction and
an awkward writing and speaking style dramatically reduce the impact of your work no
matter how good the content, as do errors that come from not paying attention to details
such leaving off the peso or percent signs.
MEETING DEADLINES:
All assignments must be submitted not later than the date due to receive credit. The
only exception is if there are extenuating circumstances that are outside the student’s
control and prior arrangements have been made with the professor.
ACADEMIC INTEGRITY POLICY:
Each student is responsible to know the standard of conduct and expectations of

academic integrity that apply to academic undertakings. Academic dishonesty will not
be tolerated and will result in the maximum penalty allowable as defined in the Student
Handbook. The following are considered serious violations:
• Cheating during examinations
• Submitting spurious reports copied from previous materials other than his/her
own
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• Plagiarism. Details of what constitutes Plagiarism and how to avoid it are
elaborated in the following site:
https://www.plagiarism.org/article/what-is-plagiarism
https://link.springer.com/article/10.1007/s10439-012-0662-9
CLASS DISCUSSION PARTICIPATION RUBRIC
Criteria Weight Exemplary Effective Minimal Unsatisfactory

(90-100%) (80-89%) (70-79%) (below 70%)
 Contributes  Contribut  Occasionally  Fails
to class es to contributes to to
activities by class class contri
offering activities activities by bute
quality ideas by offering ideas to
Level of and asking offering and asking class
Engage appropriate ideas and questions activiti
ment 50% questions on asking  Sometimes es
a regular questions engages  Fails to
basis on a others in invite
 Actively regular class comment/op
engages basis discussions inions from
others in  Often  Sometimes other
class engages has an students
discussions others in understandin  Demonstrat
by inviting class g of main es little
their discussio points understandi
comments ns by  Identifies and ng of main
 Constructivel inviting summarizes points
y challenges their some of the  Does not
the accuracy comment main points identify or
and s summarize
relevance of  Challenge main points
statements s the
made accuracy
 Effectively and
identifies and relevance
summarizes of
main points

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statement
s made
 Identifies
and
summariz
es main
points
 Always  Usually  Seldom  Consistently
prepared for prepared prepared with unprepared
class with with assignments for class
assignments assignme and required  Expresses
Prepare 25% and required nts and materials no relevant
dness materials required  Expresses foundational
 Accurately materials limited knowledge
expresses  Expresse foundational
foundational s basic knowledge
knowledge foundatio pertaining to
pertaining to nal class
issues raised knowledg discussions
during the e
discussion pertaining
to class
discussio
ns
 Consistently  Usually  Seldom  Rarely if
positive, positive actively ever
Attitude 25% cooperative and participates in participates
attitude cooperati classroom in classroom
during class ve with projects and projects and
 Always classroom discussions discussions
supportive of projects  Sometimes  Occasional
other and supportive of disruptive
students’ discussio other behavior
ideas ns students’
 Often ideas
supportiv
e of other
students’
ideas

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INDIVIDUAL ORAL PRESENTATION RUBRIC

(90-100%) (80-89%) (70-79%) (below 70%)
Body Movement Made Very little No movement
Langua seemed fluid and movements or movement or or descriptive
ge 20% helped audience gestures that descriptive gestures
visualize enhanced gestures
articulation
Holds attention of Consistent use Displayed No eye contact

entire audience of direct eye minimal use eye with audience
Eye 20% with the use of contact with contact with
Contact direct eye contact audience audience
Introduc Student delivers Student Student clearly Student does

tion and open and closing displays clear uses either not display clear
Closure 20% remarks that introductory introductory or introductory or
capture the and closing closing remark, closing remarks
attention of the remarks but not both
audience and set
the mood
Pacing 15% Good use of Delivery is Delivery is in Delivery is
drama and patterned but bursts and does either too quick
student meets does not meet not meet or too slow to
apportioned time apportioned apportioned time meet
interval time interval interval apportioned
time interval
Student displays Makes minor Displays mild Tension and
relaxed and self- mistakes, but tension; has nervousness
Poise 10% confident about quickly trouble in are obvious; has
self, with no recovers from recovering from trouble in
mistakes them displays mistakes recovering from
relaxed and mistakes
self-confident
about self, with
no mistakes;
displays little
or no tension
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Voice 15% Use of fluid Satisfactory Display some Consistently
speech and use of level of inflection uses a
inflection inflection, but throughout monotone voice
maintain the does not delivery
interest of the consistently
audience use fluid
speech
GROUP ORAL PRESENTATION RUBRIC

(90-100%) (80-89%) (70-79%) (below 70%)
Presentation Presentatio Presentation Presentation contained
had an n had a had moments little to no valuable
Content 25% exceptional good where valuable material.
amount of amount of material was
valuable material and present but as
material and benefited a whole
was extremely the class. content was
beneficial to lacking.
the class
The The The The teammates never
teammates teammates teammates worked from others’
Collabor 25% always worked worked from sometimes ideas. It seems as
ation from others’ others’ worked from though only a few
ideas. It was ideas most others’ ideas. people worked on the
evident that all of the time. However, it presentation.
of the group And it seems as
members seems like though certain
contributed every did people did not
equally to the some work, do as much
presentation. but some work as
people are others.
carrying the
presentation
.
The The There were The presentation
presentation presentation minimal signs lacked organization
25% was well had

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organized, well organizing of organization and had little evidence
Organiz prepared and ideas but or preparation. of preparation.
ation easy to follow. could have
been much
stronger
with better
preparation.
Presenters Presenters Presenters Presenters were
were all very were were not unconfident and
Present 25% confident in occasionally consistent with demonstrated little
ation delivery and confident the level of evidence of planning
they did an with their confidence/ prior to presentation.
excellent job of presentation preparedness
engaging the however the they showed
class. presentation the classroom
Preparation is was not as but had some
very evident. engaging as strong
it could moments.
have been
for the
class.

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INDIVIDUAL WRITTEN PROJECT RUBRIC

(90-100%) (80-89%) (70-79%) (below 70%)
Paper is Paper has a There is some There is no
logically clear level of apparent
organized; organizational organization organization to the
Structure 25% Easily followed; structure with though paper; Difficult to
Effective, some digressions, follow; No or poor
smooth, and digressions, ambiguities, transitions; No
logical ambiguities or irrelevances format
transitions; irrelevances; are too many;
Professional Easily followed; Difficult to
format Basic follow;
transitions; Ineffective
Structured transitions;
format Rambling
format
Grammar Manipulates Uses complex Uses Uses simple
/ complex sentences; Few compound sentences
25% sentences for punctuation or sentences; Too
Mechanic effect/impact; mechanical many
s No punctuation errors punctuation
or mechanical and/or
errors mechanical
errors
Vocabulary is Vocabulary is Vocabulary is Vocabulary is
sophisticated varied, specific used properly unsophisticated,
and correct as and appropriate; though not used properly
Languag 25% are sentences Frequently uses sentences may in very simple
e which vary in subject specific be simple; sentences; Uses
structure and vocabulary Infrequently subject specific
length; Uses correctly; uses subject
and manipulate Writer’s tone specific vocabulary too
subject specific emerges and is vocabulary sparingly
vocabulary for generally correctly
effect; Writer’s appropriate to
tone is clear, audience
consistent and
appropriate for

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intended
audience
Central idea is Central idea and The central Central idea and
well developed clarity purpose idea is clarity purpose
and clarity are generally expressed are absent or
Content/ 25% purpose is evident though it may incompletely
exhibited throughout the be vague or expressed and
Informati throughout the essay; Evidence too broad; maintained; Little
on paper; of critical, Some sense of or no evidence of
careful thought purpose is critical, careful
Abundance of and analysis maintained thought analysis
evidence of and/or insight; throughout the and/or insight;
critical, careful There are good, essay; Some
thought and relevant evidence of There are too
analysis and/or supporting critic careful few, no examples
insight; examples and thought and and evidence or
Evidence and evidence analysis and/or they are mostly
examples are insight; irrelevant
vivid and
specific, while There are
focus remains examples of
tight evidence,
though general
GROUP WRITTEN PROJECT RUBRIC
Criteria Weigh Exemplary Effective Minimal Unsatisfactory

t
(90-100%) (80-89%) (70-79%) (below 70%)
All materials Most materials Some materials No movement
and are neat and are neat and or descriptive
Organizati 25% information are most information some gestures
on neat and easy is easy to information is
to understand understand easy to
understand
Subject area Subject Basic End result
mastery is undertaking is understanding of project
Content 25% demonstrated demonstrated subject area demonstrates
material is met lack of
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through end through end through end
result project result project result project understanding
of subject area
Each group Most group Some group Few group
member made members members members
Teamwork 25% contributions contributed to contributed to contributed to
to project project materials project materials project material
materials and and presentation and and
presentation presentation presentation
Information is Information is Information is Information is
presented with presented with presented with unclear or
Presentati 25% knowledge and acceptable limited lacking and is
on creativity knowledge and knowledge and presented with
creativity creativity little creativity
MODULE PACKET
MODULE 1 OVERVIEW
Welcome to Module 1 – Company’s Direction Setting
In this module, we will discuss the fundamentals of strategic management and the
stages managers will undergo in strategic management: environmental scanning,
strategy formulation, strategy implementation, evaluation and control. Moreover, we
will discuss how the company sets direction. You are going to be equipped with the
elements of a good vision, mission, goals and hierarchy of objectives of the company.
At the end of this module, you are going to revisit the chosen company’s vision,
mission, goals and objectives, analyze them and make some recommendations for
enhancement through a proposed vision, mission, goals and objectives. For those
chosen company which doesn’t have one, craft the vision, mission, goals and
objectives.
We are now set to conduct a strategic management! Enjoy your strategic management
endeavor!

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MODULE 1 LEARNING OBJECTIVES:
By the end of this module, the students will be able to:

1. Discuss what strategic management is all about and the strategic management
process
2. Explain the direction-setting tasks in strategic management.
3. Analyze and formulate vision and mission statements, their important components
and criteria of good and well-written mission and vision statements.
4. Identify the hierarchy of objectives and characteristics of good strategic and
financial objectives.
COURSE CONTENT FOR MODULE 1: COMPANY’S DIRECTION

SETTING
ACTIVITY DESCRIPTION TIME TO

COMPLETE
Lecture discussion Fundamentals of Strategic Management 1 hour
Question and Question and Answer on the Discussed
30 min.
Answer Topic
Lecture discussion Company’s Direction Setting 1 hour
Company
Online Research for Company
Exposure
understudy and it’s Vision, Mission and 1 hour and 30 min.
Data Gathering
Goals
and analyses
Collaborative Findings in the Conduct of Online
Learning Research and Company’s Direction 30 min.
(Team Discussion) Setting
Prepare Assignment on
-Company Background for Proposed
Demonstration
Strategic Management Paper I hour
and Facilitation
-Analysis of the company’s vision and
mission statements and objectives
Quiz Module 1 Quiz 30 min.
Summative Test for Module 1 as part of
Summative Test
Midterm Exam

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LECTURE DISCUSSIONS
1.1 FUNDAMENTALS OF STRATEGIC MANAGEMENT
You’re here starting to study strategic management: its basic concepts and its
process. Strategic Management is all about identification and description of the
strategies that managers can carry so as to achieve better performance and a
competitive advantage for their organization. An organization is said to have
competitive advantage if its profitability is higher than the average profitability for all
companies in its industry. (https://www.managementstudyguide.com/strategic-
management.htm)
Strategic management can also be defined as a bundle of decisions and acts
which a manager undertakes and which decides the result of the firm’s performance.
The manager must have a thorough knowledge and analysis of the general and
competitive organizational environment so as to take right decisions. They should
conduct a SWOT Analysis (Strengths, Weaknesses, Opportunities, and Threats), i.e.,
they should make best possible utilization of strengths, minimize the organizational
weaknesses, make use of arising opportunities from the business environment and
shouldn’t ignore the threats. https://www.managementstudyguide.com/strategic-
management.htm)
Strategic management is nothing but planning for both predictable as well as
unfeasible contingencies. It is applicable to both small as well as large organizations
as even the smallest organization face competition and, by formulating and
implementing appropriate strategies, they can attain sustainable competitive
advantage. https://www.managementstudyguide.com/strategic-management.htm)
It is a way in which strategists set the objectives and proceed about attaining
them. It deals with making and implementing decisions about future direction of an

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organization. It helps us to identify the direction in which an organization is moving.
https://www.managementstudyguide.com/strategic-management.htm)
Strategic management is a continuous process that evaluates and controls the
business and the industries in which an organization is involved; evaluates its
competitors and sets goals and strategies to meet all existing and potential competitors;
and then reevaluates strategies on a regular basis to determine how it has been
implemented and whether it was successful or does it needs replacement.
One of the major role of strategic management is to incorporate various functional
areas of the organization completely, as well as, to ensure these functional areas
harmonize and get together well. Another role of strategic management is to keep a
continuous eye on the goals and objectives of the organization.
Strategic management is a set of managerial decisions and actions that determines
the long-run performance of a corporation which includes:
✓ Internal and external environmental scanning

✓ Strategy formulation
✓ Strategy implementation
✓ Evaluation and control
Phases of Strategic Management
1. Basic financial planning
2. Forecast-based planning
3. Externally oriented strategic planning
4. Strategic Management
Benefits of Strategic Management

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✓ The attainment of an appropriate match, or “fit,” between an organization’s
environment and its strategy, structure and processes has positive effects on
the organization’s performance.
Strategic planning becomes increasingly important as the environment becomes more
unstable.
✓ Clearer sense of strategic vision for the firm
✓ Sharper focus on what is strategically important
✓ Improved understanding of a rapidly changing environment
Impact of Globalization
Globalization -- the integrated internationalization of markets and corporations
✓ has changed the way modern corporations do business
Impact of Innovation
Innovation -- describes new products, services, methods and organizational
approaches that allow the business to achieve extraordinary returns
✓ is the implementation of potential innovations that truly drives
businesses to be remarkable
Impact of Sustainability
Sustainability - refers to the use of business practices to manage the triple bottom line
The triple bottom line involves:
1. the management of traditional profit/loss;
2. the management of the company’s social responsibility; and
3. the management of its environmental responsibility.
Theories of Organizational Adaptation
Population ecology
– once an organization is successfully established in a particular
environmental niche, it is unable to adapt to changing conditions
Institution theory
– organizations can and do adapt to changing conditions by imitating other
successful organizations

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• Strategic choice perspective
– not only do organizations adapt to a changing environment, but they also
have the opportunity and power to reshape their environment
• Organizational learning theory
– an organization adjusts defensively to a changing environment and uses
knowledge offensively to improve the fit between itself and its
environment
Creating A Learning Organization.
Strategic flexibility.
- the ability to shift from one dominant strategy to another and
requires:
✓ Long-term commitment to the development and nurturing of critical
resources
✓ Learning organization
Learning organization.
-an organization skilled at creating, acquiring and transferring
knowledge and at modifying its behavior to reflect new knowledge and
insights
Organizational Learning is a critical component of
competitiveness in a dynamic environment.
Learning organizations are skilled at four main activities:
✓ Solving problems systematically
✓ Experimenting with new approaches
✓ Learning from their own experiences and past history as well as
from the experiences of others
✓ Transferring knowledge quickly and efficiently throughout the
organization

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Basic Model of Strategic Management
Strategic management consists of four basic elements:
❑ Environmental scanning
❑ Strategy formulation
❑ Strategy implementation
❑ Evaluation and control

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Environmental scanning
- the monitoring, evaluating and disseminating of information from the external and
internal environments to key people within the organization
- SWOT analysis
Environmental Variables.
Strategy formulation
- process of investigation, analysis and decision making that provides the company
with the criteria for attaining a competitive advantage
- includes defining the competitive advantages of the business (Strategy), crafting the
corporate mission, specifying achievable objectives and setting policy guidelines
Strategy implementation
-is the translation of chosen strategy into organizational action so as to achieve
strategic goals and objectives.

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- the manner in which an organization should develop, utilize, and amalgamate
organizational structure, control systems, and culture to follow strategies that lead to
competitive advantage and a better performance.
Strategy evaluation and control
- is the final phase of strategic management
- as significant as strategy formulation because it throws light on the efficiency and
effectiveness of the comprehensive plans in achieving the desired results. The
managers can also assess the appropriateness of the current strategy in today’s
dynamic world with socio-economic, political and technological innovations.
- its significance lies in its capacity to co-ordinate the task performed by managers,
groups, departments etc., through control of performance.
- significant because of various factors such as - developing inputs for new strategic
planning, the urge for feedback, appraisal and reward, development of the
strategic management process, judging the validity of strategic choice etc.
1.2 COMAPANY’S DIRECTION SETTING
“The best visions imply whom the company serves, what it provides, and what
distinguishes it from other companies providing the same products and services. Your
vision lays out a destination; your destination guides your strategy and chooses action.
It’s action that leads to success. In those moments of action, having clear direction is
crucial for building momentum. If your organization is like most, you spent weeks
debating every word crafting your vision, mission, strategy and goals. But no matter
how lofty, if they are not created in a way that provides direction, those statements are
little more than high-priced indulgences. Every company means something different by
the word “vision” and “strategy”.
(https://www.steverrobbins.com/articles/vision-strategy-tactics/)

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Mission
- the purpose or reason for the organization’s existence
Vision
- describes what the organization would like to become
Objectives
- the end results of planned activity
Strategy
- forms a comprehensive master approach that states how the corporation will achieve
its mission and objectives
- maximizes competitive advantage and minimizes competitive disadvantage
corporate, business, functional
Hierarchy of Strategy
Policy
- a broad guideline for decision making that links the formulation of a strategy with its
implementation

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Strategy implementation
- a process by which strategies and policies are put into action through the development
of programs, budgets and procedures
Evaluation and control
- a process in which corporate activities and performance results are monitored so that
actual performance can be compared with desired performance
Performance
-the end result of organizational activities
-includes the actual outcomes of the strategic management process
Feedback/Learning process
revise or correct decisions based on performance
INITIATION OF STRATEGY
Triggering event
- something that acts as a stimulus for a change in strategy and can include:
✓ New CEO
✓ External intervention
✓ Threat of change of ownership
✓ Performance gap
✓ Strategic inflection point
STRATEGIC DECISION MAKING
Strategic decisions
- deal with the long-term future of an entire organization and have three characteristics:
✓ Rare
✓ Consequential
✓ Directive
Rare
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- Strategic decisions are unusual and typically have no precedent to
follow.
Consequential
- Strategic decisions commit substantial resources and demand a great
deal of commitment from people at all levels.
Directive
- Strategic decisions set precedents for lesser decisions and future actions
throughout an organization
Mintzberg’s Modes of Strategic Decision Making
✓ Entrepreneurial
✓ Adaptive
✓ Planning
✓ Logical Incrementalism
STRATEGIC DECISION-MAKING PROCESS

1. Evaluate current performance results
2. Review corporate governance
3. Scan and assess the external environment
4. Scan and assess the internal corporate environment
5. Analyze strategic (SWOT) factors
6. Generate, evaluate and select the best alternative strategy
7. Implement selected strategies
8. Evaluate implemented strategies

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Strategic audit
- aid to strategic decision making
✓ provides a checklist of questions, by area or issue, that enables a
systematic analysis to be made of various corporate functions and
activities
VISION STATEMENT
➢ a document that states the current and future objectives of an organization
➢ intended as a guide to help the organization make decisions that align with its
philosophy and declared set of goals

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➢ a roadmap to where the company wants to be within a certain timeframe.
- describes what a company desires to achieve in the long-run, generally in a time

frame of five to ten years, or sometimes even longer
- depicts a vision of what the company will look like in the future and sets a defined
direction for the planning and execution of corporate level strategies
Key Elements of a Vision Statement
✓ Forward-looking
✓ Motivating and inspirational
✓ Reflective of a company’s culture and core values
✓ Aimed at bringing benefits and improvements to the organization in the future
✓ Defines a company’s reason for existence and where it is heading
Example: Microsoft’s Vision Statement
“To create local opportunity, growth and impact in every community and country
around the world.”
Analysis:
✓ forward-looking because delivering growth and impact in every
community would conceivably take a lifetime or many lifetimes to
achieve

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✓ brings the message of leading to changes and improving the quality of
living standards all around the world, which strongly reflect Microsoft’s
values of innovation, diversity and inclusion, corporate social
responsibility, and environment.
An effective vision statement must have following features:
a. It must be unambiguous.
b. It must be clear.
c. It must harmonize with organization’s culture and values.
d. The dreams and aspirations must be rational/realistic.
e. Vision statements should be shorter so that they are easier to
memorize.
 In order to realize the vision, it must be deeply instilled in the organization, being
owned and shared by everyone involved in the organization.
MISSION STATEMENT
- defines what line of business a company is in, and why it exists or what purpose
it serves.
❑ Every company should have a precise statement of purpose that gets people
excited about what the company does and motivates them to become part of the
organization.

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❑ A mission statement should also define the company’s strategy and is generally
a couple of sentences in length.
Example: Microsoft’s Mission Statement
“To empower every person and organization on the planet to achieve more.”
Analysis:
✓ provides a broad enough scale of scope to explain what the company
can do
✓ inspirational – it’s all about empowering people
✓ the kind of statement that people can get excited about
✓ defines Microsoft’s strategy, which is reaching out to the whole world and
making an influence on all individuals and organizations
- Mission statement is the statement of the role by which an organization intends
to serve it’s stakeholders. It describes why an organization is operating and thus
provides a framework within which strategies are formulated. It describes what
the organization does (i.e., present capabilities), who all it serves (i.e.,
stakeholders) and what makes an organization unique (i.e., reason for
existence). (https://www.managementstudyguide.com/strategy-statement-
components.htm)
- A mission statement differentiates an organization from others by explaining its
broad scope of activities, its products, and technologies it uses to achieve its
goals and objectives. It talks about an organization’s present (i.e., “about where
we are”). (https://www.managementstudyguide.com/strategy-statement-
components.htm)
Features/Characteristics of a Good Mission
a. Mission must be feasible and attainable. It should be possible to achieve it.
b. Mission should be clear enough so that any action can be taken.
c. It should be inspiring for the management, staff and society at large.
d. It should be precise enough, i.e., it should be neither too broad nor too narrow.
e. It should be unique and distinctive to leave an impact in everyone’s mind.

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f. It should be analytical,i.e., it should analyze the key components of the
strategy.
g. It should be credible, i.e., all stakeholders should be able to believe it.
GOALS AND OBJECTIVES
Goal
A goal is a desired future state or objective that an organization tries to achieve.
Goals specify in particular what must be done if an organization is to attain mission or
vision. Goals make mission more prominent and concrete. They co-ordinate and
integrate various functional and departmental areas in an organization. Well made
goals have following features:
a. These are precise and measurable.
b. These look after critical and significant issues.
c. These are realistic and challenging.
d. These must be achieved within a specific time frame.
e. These include both financial as well as non-financial components.
(https://www.managementstudyguide.com/strategy-statement-components.htm)
Objectives
Objectives are defined as goals that organization wants to achieve over a period of
time. These are the foundation of planning. Policies are developed in an organization

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so as to achieve these objectives. Formulation of objectives is the task of top-level
management. Effective objectives have following features:
a. These are not single for an organization, but multiple.
b. Objectives should be both short-term as well as long-term.
c. Objectives must respond and react to changes in environment, i.e., they must
be flexible.
d. These must be feasible, realistic and operational.
(https://www.managementstudyguide.com/strategy-statement-components.htm)

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VISION, MISSION AND HIERRACHY OF GOALS & OBJECTIVES

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HIERARCHY OF OBJECTIVES
Corporate Objectives
Functional Objectives
Operational Objectives
Strategic Business Unit (SBU)

Objectives

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Corporate Objectives
- relate to the organization’s overall direction in terms of its general attitude
towards growth
- managers of the company are likely to be concerned with long-term profitability.
(Note: In a not-for-profit organization: to relate to the efficient use of resources rather
than profitability.)
- to increase operating profit by 30 percent over three years
❑ The method proposed to achieve this objective is by growing market share to
25 per cent of the market
❑ At this corporate level expanding market share becomes a strategy for
achieving the organization’s principal objective.
Functional Objectives
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❑ At a functional level expanding market share becomes an objective.
❑ Each functional area – finance, human resources, operations and marketing –
will develop a strategy to support this objective.
❑ In terms of the marketing function it is concerned about which products/services
should be sold into which markets.
❑ At a fundamental level marketing strategy is about products and markets.
In this example the strategy at the marketing function’s level is to provide the best
facilities for key market segments, provide the best standards of service and ensure
that they are adequately promoted
Illustrative Example:
Goals or targets that must be achieved by the individual functional areas into
which a business is divided (e.g. Marketing, Human Resources) to ensure that the
overall corporate objectives are met. They must be consistent with, and supportive of,
the overall corporate objectives.
Business’s overall corporate objective may be to achieve a 10% increase on
profit for the year and it may set the following functional objectives to ensure this
corporate objective is achieved:
Marketing: To increase sales from P45,000 to P50,000 per month;
Human Resources: To reduce total average unauthorized absence from 10
days to 2 days per month;
Finance: To eliminate the need for a bank overdraft (and, thus interest
payments) by reducing the average number of days it takes customers to pay from 73
to 56 days within the next 3 months;
Production: To reduce the number of rejects / defective products from 2.5% to
1.5% over the next 6 months.
(https://www.apt-initiatives.com/glossary/functional-objectives/)
Operational Objectives
❑ At this level the functional level marketing strategy becomes the objective.
❑ Strategies have to be developed for each element of the marketing mix to
support these operational objectives.
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Strategic Business Unit (SBU) Objectives

❑ In an organization with a divisional structure this hierarchy will have an additional
level of the business (or SBU) level objectives.
❑ These will be derived from the corporate level objectives and strategy and then
feed into the functional level objectives.
Objectives set out what the business is trying to achieve.
Objectives can be set at two levels:
a) Corporate level
These are objectives that concern the business or organisation as a whole
Examples of corporate objectives:
• For a return on investment of at least 15% at the end of the year
• To achieve an operating profit of over P10 million on sales of at least P100 million at
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the end of the month
• To increase earnings per share by at least 10% every year for the foreseeable
future
b) Functional level
A functional objective is an objective set for an area/department of a business which
contributes to the overall corporate objectives.
Examples of functional marketing objectives might include:
• To build customer database of at least 250,000 households within the next 12
months
• To achieve a market share of 10% within the next 12 months
• To achieve 75% customer awareness of our brand in our target markets at the end
of the quarter
Both corporate and functional objectives need to conform to the commonly
used SMART criteria.
Business Strategy: the medium-to-long term plans through which an organization

aims to attain its objectives
Objectives form the basis for decisions on strategy. Such plans include details
about what is to be done and the financial, production and personnel resources
required to implement the plans.

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To enhance your knowledge on Fundamentals of Strategic Management and
Company’s Direction Setting:
Read web resources listed below:

http://202.28.25.105/e-
learning/courses/703309/document/StrategicManagementDavid.pdf?cidReq=703309
http://www.sagepub.com/sites/default/files/upm-binaries/53794_Chapter_1.pdf
http://rizvihmct.com/wp-content/uploads/2017/02/Semester-VI-strategic-
managment.pdf
http://crectirupati.com/sites/default/files/lecture_notes/Strategic%20Manageme
nt%20Notes-CREC.pdf
Watch the following videos:
https://youtu.be/m4O9JweJg-A?t=24
https://youtu.be/DB90xGiWHIA?t=120

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Module 1 BA 414

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COLLEGE OF COMMERCE

BUSINESS ADMINISTRATION AND ENTREPRENEURSHIP

COURSE MODULE FOR BA 414 – STRATEGIC

Welcome to BA 411 - Strategic Management course! Managers are hired by organizations

Enjoy learning! Enjoy your strategic management journey!

AY 2021-2022 Module Packets for BA 411 (Strategic Management) | College of Commerce |

Upon the completion of this course, learners are expected to:

Performance-based Assessment 60%

AY 2021-2022 Module Packets for BA 414 (Strategic Management) | College of Commerce |

Communicating with the Teacher

WEEK TOPIC ACTIVITIES

Interactive Class Discussion

Interactive Class Discussion

Interactive Class Discussion

Interactive Class Discussion

Interactive Class Discussion

Interactive Class Discussion

AY 2021-2022 Module Packets for BA 414 (Strategic Management) | College of Commerce |

David, F.R. (2011). Strategic management: concepts and

Dess, Gregory, Mcnamara, Jerry, Eisner, Alan, and Lee,

Hitt, Michael A., Ireland, R. Duane and Hoskisson, Robert E. (2020).

Wheelen, Thomas L., Hunger, J. David, Hoffman, Alan N. and

AY 2021-2022 Module Packets for BA 414 (Strategic Management) | College of Commerce |

AY 2021-2022 Module Packets for BA 414 (Strategic Management) | College of Commerce |

FB Messenger: 11:00 AM – 12:00 NN Monday and Thursday

ejbugos@usa.edu.ph 0939 8565597

AY 2021-2022 Module Packets for BA 414 (Strategic Management) | College of Commerce |

AY 2021-2022 Module Packets for BA 414 (Strategic Management) | College of Commerce |

ACADEMIC INTEGRITY POLICY:

Each student is responsible to know the standard of conduct and expectations of

CLASS DISCUSSION PARTICIPATION RUBRIC

Criteria Weight Exemplary Effective Minimal Unsatisfactory

AY 2021-2022 Module Packets for BA 414 (Strategic Management) | College of Commerce |

AY 2021-2022 Module Packets for BA 414 (Strategic Management) | College of Commerce |

Criteria Weight Exemplary Effective Minimal Unsatisfactory

Holds attention of Consistent use Displayed No eye contact

Introduc Student delivers Student Student clearly Student does

GROUP ORAL PRESENTATION RUBRIC

Criteria Weight Exemplary Effective Minimal Unsatisfactory

AY 2021-2022 Module Packets for BA 414 (Strategic Management) | College of Commerce |

AY 2021-2022 Module Packets for BA 414 (Strategic Management) | College of Commerce |

Criteria Weight Exemplary Effective Minimal Unsatisfactory

AY 2021-2022 Module Packets for BA 414 (Strategic Management) | College of Commerce |

GROUP WRITTEN PROJECT RUBRIC

Criteria Weigh Exemplary Effective Minimal Unsatisfactory

Welcome to Module 1 – Company’s Direction Setting

AY 2021-2022 Module Packets for BA 414 (Strategic Management) | College of Commerce |

By the end of this module, the students will be able to:

COURSE CONTENT FOR MODULE 1: COMPANY’S DIRECTION

ACTIVITY DESCRIPTION TIME TO

AY 2021-2022 Module Packets for BA 414 (Strategic Management) | College of Commerce |

1.1 FUNDAMENTALS OF STRATEGIC MANAGEMENT

AY 2021-2022 Module Packets for BA 414 (Strategic Management) | College of Commerce |

✓ Internal and external environmental scanning

AY 2021-2022 Module Packets for BA 414 (Strategic Management) | College of Commerce |

AY 2021-2022 Module Packets for BA 414 (Strategic Management) | College of Commerce |

AY 2021-2022 Module Packets for BA 414 (Strategic Management) | College of Commerce |

AY 2021-2022 Module Packets for BA 414 (Strategic Management) | College of Commerce |

AY 2021-2022 Module Packets for BA 414 (Strategic Management) | College of Commerce |

1.2 COMAPANY’S DIRECTION SETTING

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AY 2021-2022 Module Packets for BA 414 (Strategic Management) | College of Commerce |

STRATEGIC DECISION MAKING