Strategic

Management
 Conceptualization:
Choosing a company to
be part of the Strategic
Management research
paper
The company must be Filipino-owned, but can be of any size,
provided that the business is registered with the Securities and
Exchange Commission for corporations or with Department of
Trade and Industry and the local LGU (for a business permit) for
single proprietorships; and There is a formal management
structure in place and that the owner-investor shares decision
making functions with non-owner(s) holding management
positions. Small to Medium enterprises are preferred, as these
would be easier to view in their entirety
What Do We Want to
Become? A vision
statement should answer
this basic question
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What is our Business?
the mission statement
is a declaration of an
organization’s reason for being or
existence
 Mission Statement
Components
Concern for
Concern for
Products or survival, Self- Concern for
Customers Markets Technology Philosophy Public
Services growth, and Concept Employees
Image
profitability
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PESTLE analysis studies the
key external factors (Political,
Economic, Sociological,
Technological, Legal and
Environmental) that influence an
organization.
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Assessment of the
Industry through
Porter’s Five Forces
PORTER’S FIVE
FORCES
Porter's Five Forces of Competitive Position Analysis
were developed in 1979 by Michael E Porter of Harvard
Business School as a simple framework for assessing
and evaluating the competitive strength and position of a
business organization.
Competitive rivalry.
Rivalry among competing firms is usually the
most powerful of the five competitive forces.
The main driver is the number and capability of
competitors in the market. Many competitors,
offering undifferentiated products and services,
will reduce market attractiveness.
Supplier Power
An assessment of how easy it is for suppliers to
drive up prices. This is driven by the: number of
suppliers of each essential input;
uniqueness of their product or service; relative
size and strength of the supplier; and cost of
switching from one supplier to another.
Buyer Power
An assessment of how easy it is for buyers to drive
prices down. This is driven by the: number of
buyers in the market; importance
of each individual buyer to the organization, and
cost to the buyer of switching from one supplier to
another. If a business has just a few powerful
buyers, they are often able to dictate terms
Threats of Substitution
Where close substitute products exist in a market,
it increases the likelihood of customers switching to
alternatives in response to price increases. This
reduces both the power of suppliers and the
attractiveness of the market
Threats of New Entrants
Profitable markets attract new entrants, which
erodes profitability. Unless incumbents have strong
and durable barriers to entry, for example, patents,
economies of scale, capital requirements or
government policies, then profitability will decline
to a competitive rate.
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Competitive
Analysis through
Competitive Profile
Matrix
Competitive Analysis
Competitive Profile Matrix is a tool that compares the
firm and its rivals and reveals their relative strengths and
weaknesses. It identifies a firm’s major competitors and
its particular strengths and weaknesses in relation to a
sample firm’s strategic position.
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