WRITTEN REPORT ON

CHAPTER 8
(STRATEGY FORMULATION AND IMPLEMENTATION)

Submitted by: Summitted to:

Mhace Ehrin F. Aniban Mr. Ariel Vibar
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I. INTRODUCTION

“The art of creating specific business strategies, implementing them, and evaluating the results
of executing the plan, in regard to a company's overall long-term goals or desires” This is Strategic
Planning defined and illustrated by the Corporate Finance Institute, and I agree with the quoted text.
Strategy is a Form of art. Why? It is simple, when people strategize, they think of creative ways to do
something. It is to form an edge to their competition, and that is beautiful. The people thinking of
Artistic Vision to gain their edge is one of the great qualities of strategy. Now, why am I even talking
about Strategy? Simple, it is because it is the basis of everything that I will be dealing with in my report.

We have different Approaches in Strategic Planning. These approaches are, Economic

Imperative, Political imperative, Quality Imperative, Total Quality Management, and Lastly,
Administrative Coordination. I was tasked to delineate Quality Imperative and Total Quality
Management. Before I dwell into the specific details of the Two topics, I would like to give first the
relevance of studying these approaches in Strategic Management. These Approaches will help the entity
or the business formulate careful decisions and tactics for the betterment of their business. The common
misconception nowadays is that if the company is earning enough that is okay, but no it is not right. The
company should not settle to the safe guard zone, they must do continuous search for different ways to
improve their marketability. Cash Cows are not enough for a company to settle, they are not low in
market growth rate, this is similar to what will happen if we do not apply these Approaches into our
business.

Handling a business, either big or small is challenging. So, having these approaches as a guide is
a great opportunity for your business to grow. Coming from a family of full entrepreneurs, I have
observed our greatest hit and saddest fall. But we did not let that fall defined the journey of our business,
we searched for the right techniques, approaches and strategies that will work for our business. And that
is similar to the lesson that I will be dealing with in this paper. These Approaches will highlight what to
press on and what to penetrate in order for your business to grow. To ascertain the success of these
approaches you must bear in mind that it will be efficient if used correctly and with caution. We must
not only understand yet we must comprehend. Moving on I will now be discussing my disseminated
topic which are Quality Imperative and Total Quality Management.
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II. THE TOPICS

Quality Imperative
Before diving into the topic of Quality Imperative itself, let us first define what is Imperative.
Imperative is from Latin imperare, "to command," and its original use was for a verb form expressing a
command: "Do it!" is an imperative sentence. The word is still used that way, but it's more commonly
applied to something so pressing it cannot be put off: "It's imperative that we hire more workers if we
want to complete the job on time." Imperative has more immediate force than pressing but less
than urgent. Defined by Vocabulary dictionary, in simple terms its prominent idea is to give instructions
and to command.

Now, in quality imperative, we have these particular topics that we will be discussing. One is the
Two Paths of quality Imperative; in this topic it has key points which are;

1. Change in attitudes and a raising of expectation for service quality.

In business our attitude is always relevant and needed that is why this is tackled key
points to key points to produce efficient service. The quality of our service depends on our
attitude. When we change the way that we see things and our perspectives it will immediately
change the output of our performance.

2. implementation of management practices designed to make quality improvement an

ongoing process

In the implementation of the management practices, I will be elaborating few examples;

one is being a transparent manager, to build trust and foster fairness in the workplace a
manager needs to be transparent. Another example is Efficient Communication. This does not
only apply to the managers but of course also to the whole workplace, because having efficient
communication saves the entity the trouble of undergoing unnecessary misunderstandings. Last
example is Rewarding Efforts, not only this encourages the workers to be motivated in working
but also serves as an acknowledgement for their work.
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Another particular topic that is discussed in Quality Imperative is Total Quality Management,
diving deep into the topic of Total Quality Management I will first discuss what it is. A core definition
of total quality management (TQM) describes a management approach to long-term success through
customer satisfaction. In a TQM effort, all members of an organization participate in improving
processes, products, services, and the culture in which they work. In this topic many variables will be
discussed e.g., Benchmarking, Leadership, Customer Focus, Quality assurance and many more. Now
upon discussing TQM of course it has its benefits. Having TQM in business will produce the following:

 Higher Profitability because the entity will be taught different financial handling techniques
 Improved Employee Morale it is through the knowledge that we must recognized and
acknowledge the efforts and work of our employee producing a better work environment.
 Removal of defects and waste because TQM will teach the relevance of discarding
unnecessary products in your business.
 Improved customer focus and satisfaction this is already simple because I have already
discussed that TQM also focuses in the entity’s customer.
 Enhanced Shareholder and stakeholders Value An increase in shareholder value is created
when a company earns a return on invested capital that is greater than its weighted average
cost of capital. Put more simply, value is created for shareholders when the business
increases profits.
 Improved Innovative Processes because the entity is learning to utilize different ways to
innovate to produce better outputs and products.
 Reduced cost and better cost management
 Increased Customer Loyalty and Retention since the entity is being marketed better with the
right approaches and techniques.
 Flexibility to changing market conditions
 Strengthened Competitive Position
 Higher Productivity Increased productivity indicates greater output from the same amount of
input. It means higher efficiency with which a company or economy can transform resources

into goods. Thus, productivity growth is our opportunity to create more from less.
 Cross training personnel to do the jobs of all members in their work group
 Process re-engineering designed to help identify and eliminate redundant tasks and wasteful
effort
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 Reward systems designed to reinforce quality performance.

Another definition of Total Quality Management in Approach in Strategic Management is, it is a

system of management based on the principle that every staff member must be committed to maintain
high standards of work in every aspect of company’s operation. Meaning that the participation of every
member and workers is critical in the maintenance of the quality of the entity’s performance.

Proceeding, I will elaborate this meaning more by broadening each of these given points;

 Quality is operationalized by meeting or exceeding customer expectations meaning

when we exceed the customers’ expectations, we will be having quality operations that
will attract more future target market knowing that we have produced top tier output and
outcome.
 The quality strategy is formulated at the top management level and is diffused
throughout the organization Strategy formulation at this level involves integrating and
managing the diverse businesses and realizing synergy at the corporate level. The top
management team is responsible for formulating the corporate strategy. This Delivers
quality products or services to internal and external customers.
 We also have TQM Techniques which are;
a. Traditional inspection (no!) and statistical quality control
In this technique it involves inspecting a random sample of the output from a process
and deciding whether the characteristics of the products in the sample fall within a
predetermined range. SPC is used to determine whether the process is functioning
properly or not.
b. Cutting-edge human resource management techniques, such as self-managing
teams and empowerment
In having this quality in the company such as self-managing teams it will cut the
unnecessary costing and effort to produce quality teams. When the team is aware to
self-manage, they can move swiftly without timely consultancies of the managers and
heads. This is also effective in such emergencies when the team needs to decide an
immediate action.
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III. CONCLUSION/CLOSING

That concludes the topics that I will be discussing and elaborating. I hope that I am able to give
you the enlightenment that you need upon this discussion and reporting. All in all, this is all about the
Quality. As I remember from the famous philosopher Aristotle “Quality is not an act, it is a habit” this
simple implies the thought that we must always practice quality performance in the long run to sustain
efficient quality because for quality to be a habit it must be continuous and pursued. It will be retained if
we keep on putting and entailing it to our minds that We must always practice producing quality work to
be an efficient student, learner, worker and most importantly a Quality Person all at once.