PYAR PAOLO DELA CRUZ STRATEGIC MANAGEMENT BSA 3-1

Take-home Exam
Evaluation Guidelines:

IMPORTANT. Read and Re-read these instructions before and after you make your paperwork.

1. Each question will be worth 10 points. Answer with your own words. Copied answers will
automatically get only 3 points. Blank/unanswered questions will get zero points.
2. Each question should be answered in AT LEAST three paragraphs long, each paragraph is
approximately four sentences and the quality of the content will be the main basis of your score.
Below three paragraphs will automatically get only 3 points.
3. Please do your best to answer in English. Even though you can occasionally use Tagalog, this will
still affect your grades.
4. A basic answer will get 6 to 7 points. A good answer but lacks important factors can get 8 points.
A solid answer with good points, complete and well-presented will get 9 to 10 points. A wrong
answer can get 4 or 5 points.
5. You can choose from having it printed or handwritten. Handwritten papers should however be
legible.

In your Own Words, explain the following statements:

1. Define Strategic Management.

Strategic management encompasses both the art and science of crafting, executing, and
assessing cross-functional choices that empower an organization to attain its goals. This definition
underscores the central emphasis of strategic management, which revolves around harmonizing
management, marketing, finance/accounting, production/operations, research and development,
and information systems to realize organizational success. At its core, strategic management is a
continuous process of strategizing. It encompasses essential strategic stages such as in-depth
analysis and decision-making, the creation and execution of strategies, and the monitoring and
control of these strategies, all with the overarching aim of establishing and sustaining better
alignment among corporate policies, priorities, and achievements.

Strategic management constitutes a fundamental aspect of effective organizational leadership,

encompassing the development of a clearly defined strategy that serves as a guiding framework for
an organization's objectives and the requisite actions to attain them. This comprehensive strategy
encompasses the identification of the organization's competitive advantages, target market, value
proposition, and the optimal allocation of resources. It's worth noting that the terminology
surrounding strategic management can sometimes be used interchangeably with strategic planning,
although there are distinctions between the two. In some contexts, "strategic management" may
encompass the entire process, including strategy formulation, implementation, and evaluation,
whereas "strategic planning" might be limited to the initial phase of strategy formulation.
 The process of strategy formulation is characterized by meticulous analysis of both internal
factors (such as strengths and weaknesses) and external factors (such as opportunities and threats)
through tools like SWOT analysis. Once a robust strategy is established, the subsequent phase in the
realm of strategic management involves its implementation. This phase necessitates the alignment
of the organization's structure, processes, and human resources to effectively execute the defined
strategy.

2. Which do we need to study Strategic Management?

In the dynamic and swiftly evolving realm of modern business, the ability to adapt is crucial.
Strategic management imparts individuals with the tools and expertise needed to adeptly shift
uncertainty and adeptly react to changes in the market, technology, or regulatory landscapes. By
studying this field, individuals can acquire the knowledge to craft adaptable and responsive
strategies, empowering organizations to prosper in an ever-changing environment. Proficiency in
strategic management concepts such as scenario analysis, risk mitigation, and encouraging
innovation can empower organizations to maintain a competitive edge and proactively mold their
destiny.

Strategic management revolves around the central principle of effectively distributing an

organization's limited resources, including financial assets, human talent, and time, to optimize
returns and advance strategic goals. This essential skill is valuable for individuals aspiring to
managerial roles and those already in leadership positions. By delving into the field of strategic
management, individuals can acquire valuable knowledge about budgeting, cost control, and
performance evaluation, all of which play pivotal roles in realizing strategic objectives and ensuring
an organization's long-term viability.

Strategic management equips individuals with the essential tools and frameworks for
conducting a thorough analysis of both internal and external factors affecting an organization.
Through the study of this discipline, individuals can acquire the skills necessary to discern the
strengths and weaknesses within their organization, as well as identify opportunities and threats
within the market landscape. This newfound insight empowers them to craft strategies aimed at
capitalizing on their strengths, addressing weaknesses, exploiting opportunities, and safeguarding
against threats. This strategic process enables organizations to attain a competitive edge by aligning
their resources and capabilities with their overarching strategic objectives, ultimately leading to
sustained success in the marketplace.

3. Briefly discuss the four stages of the Strategic Management Process. (Diagram on page 3)
SITUATION ANALYSIS
Environmental Analysis is the first step in the strategic planning process, where the organization
conducts a thorough examination of both its external and internal environments. External analysis
involves evaluating factors like customers, suppliers, creditors, market dynamics, competitive
landscape, economic conditions, and regulatory shifts. On the other hand, internal analysis delves
 into the organization's strengths, weaknesses, available resources, and capabilities. The primary
objective is to pinpoint potential opportunities and threats in the external environment, while also
recognizing the organization's core competencies
STRATEGY FORMULATION
Following the completion of environmental analysis, organizations progress to the formulation
phase of their strategic planning process. During this stage, they embark on the creation of company
strategies, encompassing the articulation of their mission, vision, and strategic objectives. Drawing
upon the insights obtain from the environmental analysis, organizations craft strategies aimed at
accomplishing these objectives. This phase may encompass the establishment of concrete goals, the
selection of competitive strategies such as cost leadership or differentiation, and the efficient
allocation of resources. Strategy formulation plays a pivotal role in ensuring that the organization's
actions are harmonized with its overarching long-term aspirations.

STRATEGY IMPLEMENTATION
During the strategy implementation phase, the organization actively translates its formulated
strategies into practical actions. This process encompasses the creation of an appropriate
organizational structure, the establishment of supporting processes and systems, and the smooth
integration of all management functions, including planning, organizing, staffing, leading, and
controlling. Specific roles and responsibilities are assigned to managers and employees, and detailed
action plans are devised. And also, effective communication and coordination play a vital role in
ensuring that every member of the organization comprehends their roles and collaborates
harmoniously towards the shared strategic objectives.

STRATEGY EVALUATION AND CONTROL

The last phase of the strategic management process entails ongoing evaluation and assessment
of the strategies that have been put into action. This involves assessing the company's performance
as well as the internal and external factors influencing it. In this process, all employees play a role in
strategy assessment because the business environment is continually evolving, necessitating
potential strategy adjustments. Key performance indicators serve as benchmarks for measuring
progress and measuring achievements. If any deviations from the planned course are identified,
corrective measures are implemented to realign the strategy or address any issues. Strategy
evaluation and control are vital for ensuring that the organization remains flexible and can adapt to
the changing dynamics of the business environment.

4. Define what comprises the Internal and External Environments, and how they affect our decision -
making.
The internal environment of an organization comprises factors that are within its direct sphere
of influence and control. This encompasses elements such as organizational culture, leadership, the
competencies of the workforce, and financial resources. In the context of individuals, the internal
environment pertains to their personal strengths, weaknesses, values, and beliefs. Decisions made
within this framework are frequently influenced by the organization's goals and objectives, as well
as an individual's own ambitions and principles.
On the other hand, the external environment comprises factors that are outside an organization's or
an individual's control but hold substantial influence over decision-making. This includes factors like
market dynamics, economic trends, changes in regulations, competitive pressures, and social
transformation. Decisions made in response to the external environment typically arise from the
need to adjust to changing conditions or take advantage of emerging opportunities. The external
environment requires organizations and individuals to thoroughly assess and react to external
challenges and opportunities.

In conclusion, decision-making processes are significantly influenced by both internal and

external environments. The internal environment encompasses factors within an organization or
individual's control, which impact decision-making through considerations of values, resources, and
goals. Conversely, the external environment introduces external factors beyond direct control,
demanding adaptation and response. Effective decision-making involves thoughtful evaluation of
both internal and external elements to ensure alignment with objectives, values, and the ever-
changing dynamics of the surrounding environment.