BAM 200: Strategic Management

Student Activity Sheet Module #1

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

Lesson title: Introduction to Strategic Management Materials:

Lesson Objectives:
At the end of this lesson, I should be able to
1. Discuss the concept of strategic management References:
2. Differentiate strategy and policy Strategic Management and
1. Business Policy, Wheelen, T. and
Hunger, J.D.
Fundamentals of Strategic
Management, Orcullo, N.A.

Productivity Tip:
The Internet is a powerful tool to use to your advantage. Make sure to browse relevant topics to make
studying more enjoyable!

A. LESSON PREVIEW/REVIEW
1) Introduction (2 mins)
Strategic Management is a business function that helps determine long-term performance of an
organization. It is previously known as business policy. Seeing the word “management” with it, we can
expect its function to be performed: planning, organizing, leading, and of course, controlling.

Strategic management includes activities such as environmental scanning, formulating strategies,

budgeting, execution of said strategies, and evaluation of the effectiveness of strategies. By
participating in strategic planning, an organization can have a better understanding of how it will move
forward with its current resources.

2) Activity 1: What I Know Chart, part 1 (3 mins)

What I Know Questions: What I Learned (Activity 4)

1.What is strategy?

2.What is policy?

3. What is Strategic Management?

B.MAIN LESSON

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 BAM 200: Strategic Management
Student Activity Sheet Module #1

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

1) Activity 2: Content Notes (13 mins)

Highlight contents you think is very important to understand the topic. Write your ideas and questions
involving the subject matter

A strategy, in simple language, is an elaborate plan to achieve a

certain or specific goal. It utilizes strengths in order to achieve goals.
That is also true with business organizations. Businesses need
strategic plans in order for them to be competitive. The study of
strategic management helps understand how to build a sound
strategic plan in order to achieve organizational goals.

Nature of Strategic Management

Strategic management is a set of managerial activities and decisions that help determine the long-term
outcome of an organization. These activities and decisions decide the direction that the organization
might take. The process takes into account factors from internal and external environments to come up
with decisions for the organization. In conclusion, it becomes a framework that shapes the destiny of an
organization.

Specifically, one can say that strategic management is:

1.Putting the organization into a competitive position
Implementing strategic management helps the organization identify strengths, or if not, develop
strengths. This can help the organization fill a certain competitive position. The whole activity of
strategic planning helps an organization match its particular resources to the best route of success, and
to possibly sustain that success.

2.Sustaining competitive position by studying environmental factors, and responding to or getting

ahead of it.
Strategic planning puts the organization into a constant activity of learning environmental
factors, and because of that, organizations tend to see trends better and earlier, which gives an edge
when it comes to decision making, and exploiting opportunities.

3.Monitoring and responding to stakeholders’ interests.

Organizational goals have to reflect what stakeholders expect from the organization. Strategic
planning helps to take into account stakeholders’ interests and to answer to it without compromising
the organization.
Benefits of Strategic Management

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 BAM 200: Strategic Management
Student Activity Sheet Module #1

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

You might have understand already what strategic management is all about, but you might be
wondering “How will strategic management help an organization?”. The most obvious benefit of
strategic management is a better sense of organizational direction. Others are:

1.Clearer sense of strategic vision for the organization

Strategic planning helps the organization understand whether its vision is something realistic
and beneficial. Engaging in strategic planning can help rethink the vision for the organization and help
to communicate it to everyone in the organization.

2.Sharper focus on strategically important matters.

Strategic planning focuses on what helps achieve organizational goals. It aligns the resources of
an organization and utilize it to execute strategies. The activity also helps to prioritize goals to pursue.

3.Better understanding of environmental factors

The environment plays a critical role since the organization has to adapt to it. If an organization
constantly studies the environment through strategic planning, it is able to hold a better understanding
of the factors that play around it.

4.Ability to become proactive, rather than reactive.

Strategic planning practices foresight. This helps the organization to be proactive.

5.Operational efficiency
Since strategic planning emphasizes focus, efficiency becomes higher due to prioritizing
activities that create better or strategic impact for the organization. It helps you avoid doing
unnecessary activities. This results to a higher efficiency rate and minimizes unnecessary expenses.

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 BAM 200: Strategic Management
Student Activity Sheet Module #1

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

Terms to remember!

Strategy vs. Policy vs. Tactic

Strategy – elaborate plan to achieve a certain organizational goal. It is a comprehensive plan that
tells how an organization can attain its objectives. For example, Samsung trying to lead the market
by being available as for many markets as possible. When Samsung developed smartphones, they
produce different phones for the different levels of market. Galaxy S, A and J models all cater to
different markets of socio-economic levels.

Policy - a broad guideline for decision making of an organization. These guidelines make sure that
actions are aligned to make sure that strategies are implemented right, and that organizational
objectives are met. For example, Samsung being a market leader, should have a policy that when
making a product, market studies should always be a part of proposals, and products should
always have a different version for each target market. Another example is, Starbucks is pushing for
a fair practice employment. One of their policies is to make sure that the raw materials they buy
comes from an organization that is recognized by Rainforest Alliance, an organization that grants
certificates to nature and labor friendly organizations.

Tactic – day to day operational business activities that support strategies. As example, Samsung
can get information from time to time via surveys or digital info in order to make products that are
fit for the market.

2) Activity 3: Skill-building Activities (with answer key) (18 mins + 2 mins checking)
Exercise 1. From the lesson that you have read and learned, list down 5 1-liner sentences about what
strategic management is all about.

1.

2.

3.

4.

5.
Exercise 2. Tell whether the action being taken is either a strategy, a policy, or a tactic. Write down S for
Strategy, P for policy, and T for tactic.

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 BAM 200: Strategic Management
Student Activity Sheet Module #1

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

____1. Coca-Cola plans to create more profit by introducing new products to the market.
____2. PHINMA Education Network making sure that all activities are environmental – friendly.
____3. Facebook expanding its media reach by buying out its competitors such as Instagram.
____4. New products were to be sold along old products as a freebie.
____5. First In First Out to make sure products will not be spoiled.

3) Activity 4: What I Know Chart, part 2 (2 mins)

Now, let’s check your knowledge on the concept of strategic management. I hope that everything about
the topic is clear to you. This time you have to fill out the What I Learned column.

4) Activity 5: Check for Understanding (5 mins)

True or False. Write True on the blank before the number if you think the statement is correct/accurate,
otherwise write False.

_________1. Strategic planning helps the organization to be proactive.

_________2. Strategic management commonly plans for the short term.
_________3. Strategies are grand plans that executed to achieve organizational goals.
_________4. Operational efficiency becomes higher when practicing strategic management.
_________5. Policies are day to day activities that help execute strategies.

C. LESSON WRAP-UP
1) Activity 6: Thinking about Learning (5 mins)
A. Work Tracker
You are done with this session! Let’s track your progress. Shade the session number you just
completed.

B. Think about your Learning

1. Do you think you were able to grasp and learn something new today? What are they? What helped
you learn them? If not, why do you think so?

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 BAM 200: Strategic Management
Student Activity Sheet Module #1

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

_____________________________________________________________________________________________________________
_____________________________________________________________________________________________________________
_____________________________________________________________________________________________________________
_____________________________________________________________________________________________________________
_____________________________________________________________________

2. Which parts of the lesson do you have difficulty understanding? Do you have questions about the
lesson? List them down.
_____________________________________________________________________________________________________________
_____________________________________________________________________________________________________________
_____________________________________________________________________________________________________________
_____________________________________________________________________________________________________________
_____________________________________________________________________
FAQs
1. Can strategic management only be practiced by big companies or organizations?
No, it can also be practiced by smaller organizations. Strategic planning is scalable. You can use it even if you
are a micro-business. You will just have to revise it according to your need.

2. Is it difficult to conduct a strategic plan?

Yes, it can be. But it can be learned, and since it is systematic, you can approach it step by step.

KEY TO CORRECTIONS
Activity 3. Exercise 1. Suggested outputs
1. It is about putting the organization in a competitive position.
2. It is about sustaining competitive position.
3. It is about monitoring and responding to stakeholders’ interests.
4. It is about meeting the organization’s long term goals.
5. It is about directing the direction of an organization.

Exercise 2.
1. S 2. P 3. S 4. T 5. P

Activity 5.
1. True 2. False 3. True 4. True 5. False

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 BAM 200: Strategic Management
Student Activity Sheet Module #2

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

Lesson title: Strategic Management Model and its Phases Materials:

Lesson Objectives:
At the end of the lesson, I should be able to References:
1. Enumerate the different phases of strategic management. Strategic Management, Wheelen
2. Define each phase of strategic management. and Hunger
3. Discuss the relationship of strategy to SWOT

Since you are trying to learn at home on your own, use your own workspace for better concentration! Have
fun!

A. LESSON PREVIEW/REVIEW
1) Introduction (2 mins)
Hey there! Now that you have learned what strategic management is all about, are you ready to
discover more of its exciting process?

We move next to the basic model of strategic management and the different phases we need to go
through in order to finish the process of strategic planning. To start, we have four (4) phases in strategic
planning. In this module, we will have a brief discussion of each strategic management phase. Each of
the phase will have concepts and tools that we will need to learn in order to finish each. More of the
details about each phase will be discussed separately and chronologically in the modules to follow.

2) Activity 1: What I Know Chart, part 1 (3 mins)

What I Know Questions: What I Learned (Activity 4)

1. What are the phases of strategic
management?
2. What is environmental
scanning?

B.MAIN LESSON

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 BAM 200: Strategic Management
Student Activity Sheet Module #2

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

1) Activity 2: Content Notes (13 mins)

Figure 1. Strategic Management model by Wheelen and Hunger

Strategic Management is a systematic process. There are different strategic management models that you can
use, but the model proposed by Wheelen and Hunger can be argued to be the most simple but effective. As
you can see on the model above, the process involves four (4) phases namely: 1. Environmental scanning; 2.
Strategy formulation; 3. Strategy implementation; and lastly 4. Evaluation and control. There are activities to be
performed at every phase. The model broadly shows the activities to be considered at every phase. It is
straightforward and shows the process step by step. As you do your strategic planning, I advise you to always
keep the model in mind. You could download it to your mobile phone for easier access to guide you through
the process.

1st Phase: Environmental Scanning

This is the phase of strategic planning where the environmental factors are taken into consideration. It involves
identifying, monitoring, evaluating, and communicating pieces of information for the internal and external
environment to key people in the organization. The key purpose of environmental scanning is to identify key
factors that are critical to creating strategies. The internal environment is the environment that exists within the
organization and is controllable by the organization itself. The external environment is where the organization

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 BAM 200: Strategic Management
Student Activity Sheet Module #2

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

interacts, is outside of the organization, and is also uncontrollable by the organization. For example, the
government. The organization has to follow government policies and it has no control over what the
government sets as a rule. In order to find out these key factors, a SWOT analysis is usually conducted. SWOT
stands for STRENGTH, WEAKNESS, OPPORTUNITY AND THREAT. STRENGTH and WEAKNESS are factors that
can be observed in the internal environment, while OPPORTUNITY and THREAT are commonly observed in the
external environment. Tools such as the PESTLE analysis and Porter’s 5 Forces are also used in order to have a
better understanding of the different environmental factors.

Figure 2. The external and internal environment (source: Strategic Management by Wheelen and Hunger)
2nd Phase: Strategy Formulation

External
environment

Natural
Environment

This is the phase where you set strategic objectives and formulate strategies to achieve organizational and
strategic objectives. Information gathered during environmental scanning phase is taken into consideration in

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 BAM 200: Strategic Management
Student Activity Sheet Module #2

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

order to come up with long term plans of how the organization will achieve its goals and objectives.
Organizations need to understand how to use what they have in order achieve organizational goals. Activities
included in the phase are defining or refining corporate vision and mission, identifying organizational or
strategic objectives, developing strategies, and creating policies in order to enforce strategies. Formulation of
strategies are usually done by top-level management.

In order to better formulate strategies, an organization should understand the relationship of strategy to the
different environmental factors. It is easier to come up with sound strategies an organization knows how to
deal with specific environmental factors.

Strength
UTILIZE

EXPLOIT AVOID
Opportunity Strategy Threat
MINIMIZE

Figure 3. SWOT – Strategy relationship diagram Weakness

Looking at the diagram, you can already get an idea of what strategy means to each factor. For instance,
strategies are particularly more doable when you utilize the organization’s strength. Take an organization that
has a lot of money for instance. The easiest way it can lessen its competition is to use its money to buy off
competitors. SM used the same concept to enter the banking industry. SM bought Banco de Oro in order to
enter the industry, then merged with Equitable PCI to further expand its banking business.

With weaknesses, they key is to at least try to minimize the weakness, or much better, eliminate the weakness
itself. Weaknesses can expose organizations. It can make the impact of threats much greater. They can impose

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 BAM 200: Strategic Management
Student Activity Sheet Module #2

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

a hurdle for organizations to exploit opportunities. SnR had no milk tea offering which is popular and in
demand in the Philippines. Since they have no prior expertise with the product, it they can miss out on the
opportunity to make money from the said product. However, since it has a large network and high level of
assets, SnR was able to ride the wave for the milk tea demand by offering 3 milk tea products that they do not
have to manufacture themselves, but rather buy ingredients using their network, and make the product in
house.

Opportunities are reward gaining. Strategies to be should focus on how to capitalize on these opportunities to
profit from them in the long-run. The strategies should help exploit these opportunities. Think of opportunities
as way of making new income streams for an organization. Take for example, the crisis of Covid-19. Businesses
had to close and cease temporarily their operations, and once they were allowed to open, there were
limitations on the capacity of businesses, particularly for the food industry. One way of coping was to
strengthen delivery options for restaurants and food establishments. The courier industry saw this as an
opportunity. Many couriers opened more local based operations to serve the sudden increase in the demand
of food couriers.

Threats, on the other hand, are external factors that can negatively impact the organization. They are events
that can make it difficult for the organization to operate. The inherent weaknesses of an organization make the
organization more vulnerable to threats. Strategies should work to negate or mitigate the impact of threats. For
example, Covid-19 has made it difficult for other businesses to survive. Some have cope with the pandemic, but
many businesses struggled and were not able to continue, particularly, businesses that involve contact between
people.

3rd Phase: Strategy implementation

This phase is where an organization puts the strategies and policies into motion. This is done by coming up
with programs, budget, and procedures. By implementing the strategies, it could mean a little change in list of
products, or change in menu, up to a change in management, or organizational culture. Implementation is
usually done by the middle-level and lower-level managers, and ultimately the rank-and-file, along with the
supervision of top-level managers.

4th Phase: Evaluation and control

This is the process where the results and outputs of strategies is monitored. Performance is checked and
compared to desired results and objectives. If it does not live up to what is expected, then information is fed
back to where it is needed, and then revise parts of strategy where it is needed to be changed. It is also
possible to change the strategy wholly.

2) Activity 3: Skill-building Activities (with answer key) (18 mins + 2 mins checking)
Exercise 1.

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 BAM 200: Strategic Management
Student Activity Sheet Module #2

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

1.List down the phases of strategic management according to their step in the process.
Write them down on the upper portion of each box.
2. Define each phase meaningfully. Write down your answers on the lower portion of the box.
1st Phase

4th Phase
3rd Phase
2nd Phase

Exercise 2.
Discuss in a meaningful and concise manner the relationship of strategy to:
1. Strength 3. Opportunity

2.
Weakness 4. Threat

3) Activity 4: What I Know Chart, part 2 (2 mins)

Now, let’s check your knowledge on the phases of strategic planning. I hope that everything about the
topic is clear to you. This time you have to fill out the What I Learned column.
4) Activity 5: Check for Understanding (5 mins)
Exercise 1. Draw a plus sign “+” on the space provided if you believe that the statement is TRUE.
_____1. There are 4 phases in strategic planning.
_____2. Strengths should be utilized when formulating strategies.

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 BAM 200: Strategic Management
Student Activity Sheet Module #2

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

_____3. There are 3 kinds of external environment.

_____4. External environments are controllable by the organization.
_____5. Organizational goals are set during the Environmental analysis.
_____6. Weaknesses can make organizations more vulnerable to opportunities.
_____7. According to the strategic management model, feedback only exists during the 4th phase.
_____8. Strengths and weaknesses can be controlled by the organization.
_____9. Threats are profit rewarding occurrences.
_____10. Implementing strategies could mean organizational change.

C. LESSON WRAP-UP
1) Activity 6: Thinking about Learning (5 mins)
A. Work Tracker
You are done with this session! Let’s track your progress. Shade the session number you just
completed.

B. Think about your Learning

1. Three things you have learned from the lesson.
______________________________________________________________________________________________________________
______________________________________________________________________________________________________________
______________________________________________________________________________________
2. Two things that you want to understand more about.
______________________________________________________________________________________________________________
______________________________________________________________________________________________________________
______________________________________________________________________________________
3. One thing you would like to share with your classmates.
______________________________________________________________________________________________________________
______________________________________________________________________________________________________________
______________________________________________________________________________________

FAQs
1. Is it necessary to perform all activities under each phase?
Yes. The activities under each phase translate the whole strategy into realistic and doable plans.

2. Should strategies always relate to strengths, weaknesses, opportunities and threats?

Yes, as long as the strategies can. However, it is normal for an organization to not employ strategies

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 BAM 200: Strategic Management
Student Activity Sheet Module #2

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

with all these internal and external variables. An organization needs to prioritize when strategizing since
it has limited resources. There are also variables that can be neglected if it has very minimal impact.
There is also an issue of relevance. Not all identified threats and opportunities are relevant to the
organization. In that case, one should identify whether variables are relevant to ensure that actions will
not waste any resources.

KEY TO CORRECTIONS
Exercise 1
1st Phase: Environmental Scanning – phase where environmental factors are taken into consideration. It
involves identifying environmental and evaluating environmental variables.
2nd Phase: Strategy Formulation – phase where you set organizational objectives and devise strategies
in order to achieve said goals.
3rd Phase: Strategy Implementation – phase where strategies are executed and policies are put in
motion. This is done by devising actionable plans with programs, budgets and procedures.
4th Phase: Evaluation and control – phase where results and outputs are monitored in order to check
whether the strategies are able to achieve wanted results.

Exercise 2
1. Strength – Strategies should utilize strength. This can help to achieve results in an effective manner.
2. Weaknesses – Strategies should minimize weaknesses. Weaknesses make an organization vulnerable,
thus minimizing them makes the organization more defense-capable.
3. Opportunities – Strategies should exploit opportunities. Opportunities when exploited can become a
profit-making activity.
4. Threats – Strategies should help avoid threats. By avoiding threats, firms can lessen negative effects
to it.

Activity 5
1. + 2.+ 3. 4. 5. 6. 7. 8. + 9. 10. +

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 BAM 200: Strategic Management
Student Activity Sheet Module #3

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

Lesson title: Levels of Strategy Materials:

Lesson Objectives: At the end of the lesson, I should be able to
1. Differentiate between the levels of strategy References:
2. Define the different corporate strategic options. Strategic Management, Wheelen
and Hunger.

Productivity Tip:
“It’s not always that we need to do more but rather that we need to focus on less.” = Nathan Morris

A. LESSON PREVIEW/REVIEW
1) Introduction (2 mins)
What’s up, Ketchup?! Before we fully tackle the phases of strategic management in a deeper level, there
are a few more concepts we have to understand.

For this lesson, we will focus on the levels of strategy, also known as the hierarchy of strategy. We will
define each one of them, and try to differentiate the three levels of strategy from one another. Shall we
begin?

2) Activity 1: What I Know Chart, part 1 (3 mins)

What I Know Questions: What I Learned (Activity 4)

1.What are the different levels of
strategy?
2.What is a business unit?

3.What is a function?

B.MAIN LESSON
1) Activity 2: Content Notes (13 mins)
In Module 1, we defined strategy as an elaborate plan to achieve organizational or strategic goals. It is
how an organization will make sure it would be able to reach its mission and objectives. There are three
(3) levels in the hierarchy. Each level also represents the level of management involved in the strategy
itself. These are: (1) Corporate level strategy, (2) Business level strategy, and (3) Functional level strategy.

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 BAM 200: Strategic Management
Student Activity Sheet Module #3

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________
Focus: Mission Vision
Organizational objectives
Strategic objectives

Focus: Competitive
position of a brand or
product

Focus: utilization of
resources
Development of
competencies

Figure 1. Hierarchy of strategy by Wheelen and Hunger.

1. Corporate level strategy – at this level, the main concern is the overall direction of the organization.
Top level managers like the CEO and the Board of Directors need to plan on how they want the
organization to move forward. Whatever is planned here will become the guide of the whole
organization to which steps it will take towards the future. Mission and vision is particularly discussed or
reviewed at this level. Strategic objectives are also specified by top level managers. Three main
categories of strategy in this level is stability, growth, and retrenchment.

Growth pertains to expanding the business. An organization might want to enter new industries, put up
new businesses and business models, or add new products to its existing portfolio, or create better
market share.

Stability refers to sustaining current business. Businesses might want to focus on enhancing their
product offering. They can also look into improving level of assets by cost cutting techniques,
increasing operational efficiency and such.

Retrenchment strategies are more conservative. This approach could mean cutting off expenses,
decreasing production, divesting money from business, or ultimately, an exit strategy.

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 BAM 200: Strategic Management
Student Activity Sheet Module #3

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

1. Business level strategy – strategies on the business unit level. At this level, the main concern is the
competitive position of a certain business unit in a specific industry. For example, Jollibee Foods
Corporation has different business units, all under the fastfood restaurant category, such as Jollibee,
Greenwhich, Mang Inasal, Red Ribbon, Chowking, and added to their lineup is Burger King. Each brand
is considered a business unit. The concern here is how each business unit can attain or sustain a
competitive position against competitors. Let’s take a single business unit as an example. When Mang
Inasal, entered the market, it offered unli-rice with its meals. The concept of “lutong-bahay” fast food
style brought out this idea, and gave it its competitive position ever since.

2. Functional level strategy – this level pertains to strategies in the different functional areas of an
organization such as marketing, human resource, operations, finance, accounting, research and
development, and so on. The different departments can be universal amongst businesses but there are
occasions where a business might have a different of set functions it performs. Strategies in this level
contribute to achieving to business level and corporate level strategies. It is mainly concerned in
creating or gaining competencies that will set up a competitive advantage for a business unit or a
corporation. A very good example for this is 7-Eleven’s ability to judge to locations for potential
businesses. 7-Eleven has become very keen in understanding which locations can be very viable for
their expansion. Together with the products that they carry, this has given them a great competitive
advantage against Mini-Stop and AlfaMart.

These levels of strategy do not work individually. It is a scaling process, both downward and upward.
This means that whatever is decided on a corporate level is communicated to the business unit and
functional levels, and is interpreted to each level accordingly. In return, whatever happens at the
functional level will dictate whether an organization can achieve its business level and corporate level
strategies and objectives.

As an example, let’s take McDonald’s who wants to expand its market by offering healthy alternatives to
its consumers as a corporate level strategy. This would mean that on a business level, it has to expand
its menu in order to accommodate vegetarian and vegan consumers. What McDonald’s did was to offer
salads that does not shy away too much from the products that they are already using such as lettuce
and tomatoes. On a functional level, Purchasing department now made sure to avail more raw materials
to provide the planned products, marketing would now need to advertise their new products on
appropriate channels, and operations will now customize their work stations in order to prepare for
serving vegetable based products.

Terms to remember!
1. SBU (strategic business unit or more commonly known as business unit) – these are commonly

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 BAM 200: Strategic Management
Student Activity Sheet Module #3

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

independently operating unit of business that is under a large organization. Although independent, it
plays an important role in achieving organizational goals. For smaller businesses, business units could
mean their product lines/categories.

2. Function – these are business activities/departments that are interdependent on one another in
order to run a business unit. Different functions existing in an organization can differ from one another,
according to their structure. Most common functions are management, marketing, human resource,
finance, purchasing, logistics, production, and research and development.

2) Activity 3: Skill-building Activities (with answer key) (18 mins + 2 mins checking)

Exercise 1. Identify which level of strategy the activity belongs to. Write TL for top level, BL for business
level, and FL for functional level.
_____1. Communicating the vision of the company.
_____2. Hiring of employees.
_____3. Choosing a positioning strategy.
_____4. Setting organizational goals.
_____5. Developing competencies.
_____6. Investing in business ventures.
_____7. Gathering marketing intel.
_____8. Establishing a mission statement.
_____9. Developing brand image.
_____10. Looking for brand partnerships.

Exercise 2. Define the different strategic corporate options listed below in a brief and concise manner.
1. Growth
______________________________________________________________________________________________________________
______________________________________________________________________________________________________________
______________________________________________________________________________________
2.Stability
______________________________________________________________________________________________________________
______________________________________________________________________________________________________________
______________________________________________________________________________________
3. Retrench
______________________________________________________________________________________________________________
______________________________________________________________________________________________________________
______________________________________________________________________________________

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 BAM 200: Strategic Management
Student Activity Sheet Module #3

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

3) Activity 4: What I Know Chart, part 2 (2 mins)

Now, let’s check your knowledge on levels of strategy. I hope that everything about the topic is clear to
you. This time you have to fill out the What I Learned column.

4) Activity 5: Check for Understanding (5 mins)

Exercise 1. Identification. Identify the term being described in each number.
_________________________1. Level of strategy that concerns itself with competitive position.
_________________________2. Corporate strategy that focuses on expanding the organization.
_________________________3. This involves business actions such as cost—efficient methods.
_________________________4. An independent operating unit under a larger organization.
_________________________5. Level of strategy concerned with overall direction of organization.

C. LESSON WRAP-UP
1) Activity 6: Thinking about Learning (5 mins)
A. Work Tracker
You are done with this session! Let’s track your progress. Shade the session number you just
completed.

B. Think about your Learning

1. Do you think you were able to grasp and learn something new today? What are they? What helped
you learn them? If not, why do you think so?
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2. Which parts of the lesson do you have difficulty understanding? Do you have questions about the
lesson? List them down.
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FAQs
1. Do business units exist in every organization?
No, not necessarily. If a business is small, then it can be a single unit on its own. It can, however,
consider its different product lines to be separate business units.

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 BAM 200: Strategic Management
Student Activity Sheet Module #3

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

2. Are growth, sustainability, and retrenchment the only corporate strategies available?
No. there are several strategic options available for any organization, but they will be categorized
among the three, in one way or another. These three strategies all general in nature. Corporate
strategies will become much more detailed when performing strategic planning.

KEY TO CORRECTIONS
Exercise 1.
1. TL 2. BL 3. FL 4. TL 5. FL 6. TL 7. FL 8. TL 9. BL 10. BL

Exercise 2.
1. Growth – corporate strategy that focuses on expansion. Businesses can enter new industries, enter
new markets, develop new products, or improve market share.
2. Stability refers to sustaining current business. Businesses can focus on improving product quality to
sustain competitive position, apply cost cutting techniques to protect and increase profit margins.
3. Retrenchment refers to a defensive strategy. Businesses can cut cost, decrease production, or exit the
industry.

Activity 5.
1. Business level strategy
2. Growth
3. Stability
4. Business unit
5. Top level strategy

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 BAM 200: Strategic Management
Student Activity Sheet Module #4

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

Lesson title: Strategic types Materials:

Lesson Objectives: At the end of the lesson, I should be able to:
1. List down the different strategic types References:
2. Define each strategic type Strategic Management, Wheelen
3. Differentiate one strategic type to another. and Hunger
1. Organization Strategy, Structure,
and Process, Miles and Snow

Productivity Tip:
Keep a study routine. This helps you be more productive and focused!

A. LESSON PREVIEW/REVIEW
1) Introduction (2 mins)
Hola! Are you enjoying learning Strategic Management? It sure is fun, isn’t it?

Today, we will learn about strategic types. Learning about different strategic types helps an organization
to predict what kind of actions competitors might take when you begin implementing strategies. It
helps an organization assess the level of competitive intensity within a specific industry.

2) Activity 1: What I Know Chart, part 1 (3 mins)

What I Know Questions: What I Learned (Activity 4)

1. What is a strategic type?

2. What is a prospector?

3. What is a defender?

B.MAIN LESSON
1) Activity 2: Content Notes (13 mins)
Miles and Snow argued that competing firms within a specific industry can be classified into four (4)
strategic types. A strategic type is the firm’s general behavior when it comes to implementing
strategies. By categorizing organizations into the different strategic types, you would be able to
conclude or predict how different organizations will conduct themselves when facing the same
situation. The strategic types are:

1. Defenders – these are organizations who value efficiency. They have limited product lines or

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 BAM 200: Strategic Management
Student Activity Sheet Module #4

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

categories, and does not usually push for innovation. Businesses under this type usually concerns itself
with employing and improving cost-efficient methods. Most defender type organizations have already
strong roots on specific markets and is keen on protecting their competitive positions within these
markets. They focus on markets they are already prosperous in. One could say that a defender type, is a
slow-and-steady type. Companies like ARC Refreshments, maker of RC Cola, are more likely to be
defenders. They don’t offer too much innovation, but rather focus on current products and lowering
cost.

2. Prospectors – competing firms that focus on innovation belong to this type. Prospectors have high
appetite for risk, and lean toward creativity. Prospectors are heavily invested in marketing and research
and development. Dynamic and competitive industries and market tend to have prospectors. This is due
to the ever-changing demand, thus organizations continuously moving from one product to another.
Companies like Samsung and Apple are obvious prospectors. They try to beat each other through
constant technological innovation, and trying to bring it to the market first.

3. Analyzers – companies that are known to belong to this type tend to create a balance between
innovation and efficiency. Quite difficult to attain, but when a firm is successful, it is easy for them to
gain and control leadership in a market or industry space. It is common for analyzers to operate in at
least two product-market areas, a stable one, and a dynamic one. In stable areas, they try to be efficient,
while in dynamic areas, they try to be innovative. It is also common for analyzers to be efficient and
innovative at the same time in a single product-market area. Analyzers avoid excessive risk but still
pursue new markets and products. Jollibee can be put under analyzer. The firm likes to take hold in the
restaurant industry, but also keeps exploring other industries such as infrastructure (i.e. CityMall).

4. Reactors – firms that lack structure and consistency belong under reactors. They lack understanding
in strategy and just keeps moving from one solution to another. It does not have consistency in its
operations. They are often ineffective in responding to environmental changes and cannot do things
efficiently. Reactors either go out of business or evolve into other strategic types.

There is no specific type that will dictate the success of an organization. Miles and Snow noted that a
company’s success can be attained realistically by establishing a systematic strategy that takes into
account environmental factors.

2) Activity 3: Skill-building Activities (with answer key) (18 mins + 2 mins checking)
Exercise 1. Below is box of word/s that describe the different strategic types. Fill the columns with
word/s that best describe each strategic type from the words below.
Innovative Conservative Balance Lack consistency Lacks structure

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 BAM 200: Strategic Management
Student Activity Sheet Module #4

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

Ineffective Always offering Cost-efficient Product variety Single

new product/market
focus
Risk-averse Risk-taker Very calculated Innovative and Difficult to attain
risks efficient

Defender Prospector Analyzer Reactor

Conservative Innovative Balance Lacks structure

Cost-efficient Always offering new Very calculated risks Ineffective

Single product/market Product variety Innovative and efficient Lack consistency

focus
Risk-taker Difficult to attain
Risk averse

3) Activity 4: What I Know Chart, part 2 (2 mins)

Now, let’s check your knowledge about the different Strategic Types. I hope that everything about the
topic is clear to you. This time you have to fill out the What I Learned column.

4) Activity 5: Check for Understanding (5 mins)

Exercise 1. Write T on the space before the number if the statement is correct. If it is incorrect, write F.
_____1. Defenders want to protect their current market position rather than try new ones.
_____2. Prospectors are slow-and-steady type of companies.
_____3. Companies who don’t like to take risks are known as defenders.
_____4. Firms with no structure for strategy usually ends up closing.
_____5. Innovativeness carries low risk with it.
_____6. Analyzers like to distance themselves from excessive risk.
_____7. If businesses do not have a specific strategic goal, it ends up reacting to what comes next.
_____8. Cost-efficient methods help defend a competitive position.
_____9. Analyzers rely heavily on research and development.
_____10. Dynamic industries and markets tend to create prospector firms.

C. LESSON WRAP-UP
1) Activity 6: Thinking about Learning (5 mins)
A. Work Tracker
You are done with this session! Let’s track your progress. Shade the session number you just
completed.

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 BAM 200: Strategic Management
Student Activity Sheet Module #4

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

B. Think about your Learning

1. Please read again the learning targets for the day. Were you able to achieve those learning targets.
If yes, what helped you achieve them? If no, what is the reason for not achieving them?
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2. What question(s) do you have as we end this lesson?

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FAQs
1. Can an organization belong to two strategic types?
No. An organization would usually stick with a distinct style, but it can also change from type to
another. It cannot, however, be classified into two types at once, since each type has a very distinct
feature. An organization who can balance creativity and efficiency is already an analyzer.

2. Can a reactor turn to other strategic types?

Yes, definitely. If a reactor organization becomes more careful in planning and sets clear goals, it can
start thinking for strategies to move forward that are aligned with its goals. It should be, however,
permissible by their circumstance and resources.

KEY TO CORRECTIONS
Exercise 1.
Defender Prospector Analyzer Reactor

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 BAM 200: Strategic Management
Student Activity Sheet Module #4

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

Conservative Innovative Balance Lacks structure

Cost-efficient Always offering new Very calculated risks Ineffective

Single product/market Product variety Innovative and efficient Lack consistency

focus
Risk-taker Difficult to attain
Risk averse

Activity 5.
1. T 2. F 3. T 4. T 5. F 6. T 7. T 8. T 9. F 10. T

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