Chapter 7: STRATEGIC

ASSET MANAGEMENT
PREPARED BY:
BALASANOS, HONEYLYN
ERLANO, MICAH ELLA
NOVENO, KARL
UMLAS, KATRINA JANE
STRATEGY
DEFINED…
STRATEGIES ARE APPROPRIATE
COURSES OF ACTION FORMULATED BY
ORGANIZATIONS TO ATTAIN THEIR SET
OBJECTIVES IN THE LIGHT OF THEIR
VISION AND MISSION STATEMENT.
STRATEGIES INCLUDE:

• PLANNING
• SELECTION
• ANALYSIS
NOTE:
IN FORMULATING BUSINESS STRATEGIES,
THERE SHOULD BE CONSISTENCY IN THE
DIRECTION OF THE ORGANIZATION,
RESPONSIVENESS TO GLOBAL, AND
ORGANIZATIONAL ENVIRONMENTS, AND
CONFORMITY AND AGREEMENT WITH THE
FUNCTIONAL STRATEGIES OF THE
ORGANIZATION. AND STRATEGIES SHOULD BE:

• FEASIBLE
• FLEXIBLE
• SMART
• COMPETITIVE
COMPETITIVE ASSETS
DEFINED…
COMPETITIVE ASSETS ARE TALENTS,
ABILITIES, RESOURCES, PROPERTIES, AND
OTHER ENDOWNMENTS THAT PROVIDE PLUS
POINTS TO ORGANIZATIONS. THEY CAN TAKE
IN THE FORM OF:

• INTELLECTUAL PROPERTY ASSET

• HUMAN RESOURCE ASSET
• MARKETING ASSET
• INFRASTRUCTURE ASSET
INTELLECTUAL PROPERTY
ASSETS
• ASSET THAT RESULT FROM THE ACTIVITIES OF
THE MIND.
• MAY BE PRODUCTS OF PURPOSIVE RESEARCH
LIKE OUTCOMES OF A PERSON’S INGENUITY,
BRILLIANCE, AND CREATIVITY OR BY
ACCIDENTAL DISCOVERY.
• PROTECTED BY LAW

EXAMPLE:
1.TRADEMARKS 4. COPYRIGHTS
2.SERVICE MARKS 5. PATENTS
3.SOFTWARE 6. TRADE SECRETS
INTELLECTUAL PROPERTY OUTPUTS
• UNIQUE DESIGNS
• INNOVATIVE PRODUCTS
• BRILLIANT IDEAS AND CONCEPTS
• ONE OF A KIND PACKAGING
• NEW METHODS AND PROCESSING
• INVENTIONS
• CHEMICAL FORMULATIONS
• SOFTWARE
ORGANIZATIONAL
MONOPOLY
WHEN AN ORGANIZATION POSSESSES
INTELLECTUAL PROPERTY ASSETS, THEY SAID TO
HAVE CREATED A COMPETITIVE EDGE CALLED
ORGANIZATIONAL MONOPOLY.

• THE ORGANIZATION IS SOLELY ENJOYS THE

OPPORTUNITY TO USE ITS INTELLECTUAL
PROPERTY, TO OPTIMIZE ITS WORTH, AND
ENJOY THE BENEFITS AKIN TO IT;
• IT SAFEGUARDS CORPORATE ASSETS BY
PROVIDING A LEGAL MECHANISM FOR
BRAND PROTECTIONOF TRADE SECRETS
BY NON-DISCLOSURE AGGREEMENTS,
AND PROVISION FOR PATENTS AND
COPYRIGHTS; AND
• IT ALLOWS ORGANIZATIONS TO ENJOY
LOW COST LEADERSHIP AND INCREASE
LEGAL OWNERSHIP.
HUMAN RESOURCE ASSETS
• STRENGTHS OF ORGANIZATIONS
• CONSISTS OF COLLECTIVE “EXPERTISE”
PERSONAL TRAITS, CREATIVE AND
PROBLEM SOLVING CAPABILITIES,
MANAGERIAL, ENTREPRENEURIAL AND
COMPETENCY ASSET SKILLS, AND
ORGANIZATIONAL HUMAN-CENTERED
ASSETS.
COLLECTIVE “EXPERTISE” PERSONAL
TRAITS CAN RESULT FROM:

• IMPRESSIVE EDUCATIONAL ATTAINMENT;

• UNIQUE AND CUTTING-EDGE PROFESSIONAL
COMPETENCE;
• RELEVANT AND “INTELLIGENT”
ENVIRONMENTAL KNOWLEDGE;
• ADEPT BUT CREATIVE AND HIGHLY
DIFFERENTIATED WORK-RELATED KNOWLEDGE;
AND
• AN EXCLUSIVE, COMPLETE, BUT OBJECTIVE
HISTORICAL KNOWLEDGE.
PERSONAL TRAITS CONSIDERED AS HUMAN
RESOURCE ASSET INCLUDES:

• TRANSFORMATIONAL LEADERSHIP
• INGENUITY TO DIFFERENTIATE ESISTING IDEAS,
PRODUCTS OR SERVICES AND TO
CPONCEPTUALIZE NEW ONE
• FIRST-RATE PROBLEM-SOLVING CAPABILITIES
• SELF-MOTIVATED AND VIBRANT PERSONALITY
• SUSTAINED ENERGY
• OTHER ESSENTIAL ATTRIBUTES SUCH AS
ADAPTABILITY, PROACTIVITY, INITIATIVE,
INDUSTRY AND INTEGRITY
MANAGERIAL, ENTREPRENEURIAL, AND
COMPETENCY ASSET SKILL INCLUDE:

• PLANNING, ORGANIZING, DELEGATING, STAFFING,

AND MONITORING SKILLS THAT DO NOT SIMPLY
EMPHASIZE EFFICIENCY BUT RATHER
EFFECTIVENESS;
• CUTTING-EDGE BUSINESS EXPERTISE, CRITICAL AND
RELIABLE BUSINESS INTELLIGENCE, AND
“FUTURING” BUSINESS OUTLOOK OF THE
ENVIRONMENT; AND
• COMPETENCY ASSETS LIKE SKILLS IN
COMMUNICATION, EXPERTISE IN INFORMATION
TECHNOLOGY, PRACTCAL AND VOCATONAL
QUALIFICATIONS AND OTHER ALLIED ACIVITIES THAT
CAN CREATE A COMPETITVE ADVANTAGE OF THE
HUMAN-CENTERED ASSETS

• EMPLOYEES HAVE HIGH EMOTIONAL QUOTIENT

• SYNERGISTIC INTERRELATIONSHIPS EXIST
BETWEEN MANAGEMENT AND EMPLOYEES,
BETWEEN SUPERVISORS AND SUBORDINATES,
AMONG PEERS AND BETWEEN THE
ORGANIZATION AND ITS CUSTOMER, SUPPLIER,
THE COMMUNITY AND GOVERNMENT; AND
• COMMITMENT OF EMPLOYEES
HUMAN RESOURCE
LEVERAGE
1.ORGANIZATIONS WITH EMPLOYEES OWNING
REMARKABLE EXPERTISE ASSETS ARE DIFFERENT
FROM OTHERS.
2.GOD PERSONAL QUALITIES POSSESSED BY
EMPLOYEES ALTHOUGH UNIQUELY INDIVIDUALIZED
CAN CREATE A CONVERGENT IMPACT ON THE
ORGANIZATION.
3.MANAGERIAL, ENTREPRENEURIAL, AND
COMPETENCY ASSET SKILLS SHORE UP
EFFECTIVENESS AND ORGANIZATIONAL SUCCESS.
4.ORGANIZATIONAL HUMAN-CENTERED ASSET OPEN
MORE WINDOWS TO ORGANIZATIONAL
OPPORTUNITY, REALIZATION AND ACHIEVEMENT.
MARKETING ASSETS
• BRAND/BRAND NAME
• COMPANY NAME
• CUSTOMER LOYALTY
• EFFICENT DISTRIBUTION CHANNELS
• ORGANIZATIONAL ALLIANCES AND LINKAGES
NEED TO BE STRATEGIC AND COLLABORATIVE
MARKET DOMINANCE
THE COMPETITIVE EDGE OR DOMINANCE BROUGHT
ABOUT BY MARKET ASSETS INCLUDES:
• AN EFFECTIVE BUT LESS EXPENSIVE MEDIUM FOR
PRODUCT AND SERVICE IDENTIFICATION.
• A COMPANY NAME THAT IS WELL-KNOWN,
RECOGNIZED, ESTABLISHED AND REPUTABLE
SIGNIFICANTLY INCREASES THE FINANCIAL WORTH
OF AN ORGANIZATION.
• REPEAT BUSINESS IS A BY-PRODUCT OF CUSTOMER
LOYALTY.
• INCREASE PRODUCT AND SERVICE SALES RESULT
FROM EFFICIENT AND WELL-ORGANIZED MODES OF
BRINGING GOODS AND SERVIVES TO PUBLIC.
INFRASTRUCTURE
ASSETS
INFRASTRUCTURE ASSET INCLUDE POSITIVE
ORGANIZATIONAL FEATURES LIKE:

• STRUCTURE
• MANAGEMENT PHILOSOPHY
• ORGANIZATIONAL CULTURE
• HIGH INVOLVEMENT PRACTICES
• QUALITY STANDARDS AND
• TECHNOLOGY
COMPARATIVE ADVANTAGE
POSSESSION OF INFRASTRUCTURE ASSETS BRINGS ABOUT
A COMPARATIVE ADVANTAGE TO ORGANIZATIONS.

1. A STREAMLINED ORGANIZATIONAL STRUCTURE MAKES

COMMUNICATION BETWEEN MANAGEMENT AND
EMPLOYEES EASIER.
• JOB TASKS AND PROJECTS ARE COMPLETED FASTER
• FASTER DELIVERY OF GOODS, RENDERING SERVICES
AND PROVIDING AFTER-SALES SERVICE.
• PROBLEMS ARE SIGNIFICANTLY MINIMIZED.
• RESPONSIBILITIES ARE PERFORMED PROMTLY
• RELATIONSHIPS BETWEEN PEOPLE ARE NOT DISTURBED
• IMPROVED PRODUCTIVITY
2. ORGANIZATIONAL CULTURE CREATES
INFRASTRUCTURE IN THE FF WAYS:

• JUXTAPOSITION OF PERSONAL, ORGANIZATIONAL

AND UNIVERSAL BELIEFS, ATTITUDES AND VALUES
BRINGS ABOUT CORPORATE MILIEU THAT IS
CHARACTERIZED BOTH BY DIVERGENCE AND
COMMONALITY OF PURPOSE.
• DIVERSE INTERESTS AND EXPECTATIONS AMONG
MEMBERS IN THE ORGANIZATION ARE REALITIES.
• MANAGEMENT PHILOSOPHIES CONTEXTUALIZE
ORGANIZATIONAL THRUST.
• ETHICAL PRACTICES ADOPTED IN ORGANIZATIONS
ARE VIEWED AS INFRASTRUCTURE ASSETS.
3. HIGH INVOLVEMENT WORK PRACTICE

• HAVE SUBSTANTIAL AND POSITIVE IMPACT ON

ORGANIZATIONAL PERFORMANCE.
• MANAGERIAL AND FUNCTIONAL PROCESSES ARE
BOTH ADMINISTRATIVE AND OPERATIONAL.
• FUNCTIONAL PROCESS IS TROUBLE-FREE AND
COST EFFECTIVE = MINIMIZED OPERATIONAL
COSTS= INCREASE PROFITABILITY
• ADOPTION OF QUALITY STANDARDS
4. IMPACT OF TECHNOLOGY

• A DATABASE OF HUMAN RESOURCE SKILLS AND

COMPETENCIES FACILITATES ACCURATE
MATCHING OF EMPLOYEE ABILITIES WITH
CORRESPONDING JOB TASKS.
• A DATABASE OF CUSTOMERS FOR ANTICIPATION
OF THEIR NEEDS AND WANTS
• A DATABASE OF SUPPLIERS WHICH MONITORS
INVENTORY REQUIREMENT, DELIVERY AND
SUPPLYING MATTERS AND RAW MATERIAL
ACQUISITION ETC.
• A DATABASE OF BUYERS THAT HELPS
ORGANIZATION TO CREATE TIMELY “SWITCHING
INTELLECTUAL PROPERTY
MONOPOLY
OWNERSHIP ASSETS

HUMAN RESOURCES
LEVERAGE
ASSETS

MARKET ASSETS DOMINANCE

INFRASTRUCTURE COMPARATIVE
ASSETS ADVANTAGE

FIGURE 7.1 STRATEGIC ASSET MANAGEMENT

 ASSET MANAGEMENT
STRATEGIES
COMPETENCY LEARNING

ASSET
MANAGEMENT
STRATEGIES

STRATEGIC ENHANCEMENT COMPETITIVE INNOVATION

FIGURE 7.2 FACETS OF ASSET MANAGEMENT

STRATEGIES
COMPETENCY LEARNING:
“LAYING THE GROUNDWORK”
• COMPETENCY REFERS TO THE KNOWLEDGE,
ATTITUDES, AND SKILLS EXPECTED OF AN
INDIVIDUAL IN CARRYING OUT HIS JOB TASKS.
• ALIGNED TO THE ORGANIZATIONS’S VISION AND
MISSION.
• NECESSARY TOOL FOR THE ACTUALIZATION OF
ORGANIZATIONAL PLANS AND IMPLEMENTATION
OF STRATEGIES.
• PUTS EMPHASIS ON EVALUATION AND
ACCOUNTABILITY OF PERFORMANCE.
• ESSENTIAL IN ATTAINING OPTIMUM
PRODUCTIVITY.
BENEFITS OF PRECISE AND CLEAR JOB
DESCRIPTIONS OF EMPLOYEES
1.PROVIDE EMPLOYEES A PERFORMANCE
FRAMEWORK WITH RESPECT T REQUISITE
KNOWLEDGE, SKILLS AND ATTITUDES.
2.ASSURE MANAGEMENT THAT EMPLOYEES
PERFORMING DEFINITE JOB TASKS
3.STREAMLINE ORGANIZATIONAL MANAGEMENT
4.SERVE AS BASES FOR EVALUATING WORK
OUTPUT FOR REWARD AND PROMOTION
PURPOSES, MONETARY OR OTHERWISE.
5. PROVIDE THE BLUEPRINT FOR PREPARING
AND CONDUCTING RECRUITMENT, SELECTION,
HIRING AND TRAINING DEVELOPMENT
PROGRAMS.
6. ALLOW YOUNG PEOPLE POSSESSING
COMPETENCIES TO MOVE UP THE CORPORATE
LADDER FASTER THAN THOSE WO ARE INEPT
AND DEFICIENT.
CLASSIFYING
COMPETENCIES CORE

FUNCTIONAL

MANAGERIAL

FIGURE 7.3 CLASSIFICATIONS OF COMPETENCIES

CLASSIFICATION OF
COMPETENCIES
1.CORE COMPETENCIES
• BASIC
• INCLUDES ALL FUNDAMENTAL COMPETENCIES
EXPECTED
• MINIMUM REQUIREMENTS SET BY THE
ORGANIZATION
2.FUNCTIONAL COMPETENCIES
• EXPECTED OF EMPLOYEES PERFORMING JOB
FUNCTIONS IN MARKETING, PRODUCTION,
HUMAN RESOURCE, TECHNOLOGY AND FINANCE.
• POSSESSION OF THESE ASSUMES HAVING CORE
COMPETENCIES.
3. MANAGERIAL COMPETENCIES
• ADMINISTRATIVE AND ATTITUDINAL IN NATURE.
• INCLUDE COMPETENCIES IN PLANNING,
ORGANIZING, DELEGATING, STAFFING, AND
MONITORING AS WELL AS PEOPLE SKILLS,
LEADERSHIP, AND BEHAVIORAL MATURITY.
• BOTH CORE AND FUNCTIONAL COMPETENCIES
ARE ASSUMED TO BE MINIMUM REQUIREMENT
FOR MANAGERIAL POSITIONS.
STRATEGIC
ENHANCEMENT: “WIDENING
DIFFERENT
THE WAYS IN STRATEGICALLY ENHANCING
HORIZON”
AN ORGANIZATIONAL MEMORY-BASED SYSTEM:

1.MAXIMIZE THE REACH OF THE ORGANIZATION’S

INFRASTRUCTURE TECHNOLOGY.
2.CORPORATE ENTITIES NEED TO APPRECIATE
THE BUSINESS VALUE OF KNOWLEDGE,
INFORMATION, AND COMMUNICATION
TECHNOLOGY.
3.CONTINUOUSLY CONDUCT FORMAL AND
INFORMAL TYPES OF TRAINING.
4. SYSTEMATIZE A PROCESS OF ENRICHING JOB
PATHING OF EMPLOYEES BEGINNING FROM
BEING STARTERS WITH ZERO OR NEGLIGIBLE
KNOWLEDGE TO BECOMING LEARNERS
THROUGH SUPERVISED APPRENTICESHIP.
5. EMPOWER EMPLOYEES TP REACH
SUSTAINABLE SELF-DEVELOPMENT BY
PROMOTING VALUABLE KNOWLEDGE,
REWARDING THOSE WHO UNSELFISHLY SHARE
THEIR KNOWLEDGE TO OTHERS AND TO THE
ORGANIZATION.
6. INTERACT WITH EXPERTS WHO HAVE PROVEN
THEIR WORTH AND EXPERTISE IN THEIR
SPECIALIZED FIELDS.
7. PREPARE PROGRAMS FOR EMPLOYEES
LEADING TO ATTITUDINAL CHANGE.
8. PROVIDE ACCESS TO NEEDED RESOURCES.
RESOURCES CAN BE IN THE FORM OF:
• MARKET DATA
• INFRASTRUCTURE TECHNOLOGY
• HUMAN RESOURCE EXPERTISE
• INTELLECTUAL PROPERTY RIGHTS
• FINANCIAL RESOURCES
• MANAGEMENT RESOURCES
9. BROADEN NETWORKING THROUGH STRATEGIC
ALLIANCES, WHICH CAN COME FROM WITHIN
AND FROM THE OUTSIDE.
10.ANALYZE CULTURE.
COMPETITIVE INNOVATION:
“CREATING BARGAINING POWER”
INNOVATION IS THE BEST ASSURANCE IN
ACHIEVING BUSINESS
SUSTAINABILITY,COMPETITIVE ADVANTAGE AND
CONSEQUENTLY CREATING BARGAINING POWER.
INNOVATION MAY REFER TO ANY OF THE FF:

1. CREATING, CONCEPTUALIZING, OR INVENTING

NEW IDEAS.
2. BRINGING A PARADIGM SHIFT FROM THE
USUAL.
2 EFFECTS OF THIS ARE THE FF:
a. REVITALIZES AN INNOVATIVE CLIMATE
3. REVOLUTIONIZING A SYNERGISTIC OUTLOOK
AND WILLINGNESS TO INVENT A SPECTRUM OF
NEW PERSPECTIVES, UNIQUE INSIGHTS AND
KNOWLEDGE BETWEEN AND AMONG
ORGANIZATIONAL UNITS AND DEPARTMENTS.
INNOVATION SCENARIOS
TO INNOVATE IS TO PRESENT ANY OF THE
FOLLOWING SCENARIOS:

1.DIFFERENTIATING EXISTING PRODUCTSAND

SERVICES
2.REINVENTING PRODUCTS AND SERVICES.
CHANGING THE ANY OF THE FF:
• THE PRODUCT ITSELF
• PRICING SCHEMES
• ATTRACTIVE PROMOTIONS
• SUPPLIER-CUSTOMER INTIMACY RELATIONSHIP
• CHANNELS OF DISTRIBUTION
3. CONTINUOUSLY EXPERIMENTING
• PRODUCING NEW PRODUCTS OR SERVICES THAT
ARE DEMANDED BY LOCAL AND GLOBAL
MARKETPLACES
• DESIGNING NEW APPROACHES
• RESHAPING FOR A ROBUST ORGANIZATIONAL
BUILT
• STREAMLINING PROCESSESS AND OPERATIONS
FOR MAXIMUM PRODUCTIVITY

4. APPLYING RECENT AND NEW TECHNOLOGIES IN

INFORMATION OR COMMUNICATION THAT WILL
SIGNIFICANTLY CHANGE ORGANIZATIONAL
5. CHANGING BUSINESS MODELS
• GENERATING A NEW FRAMEWORK AND APPROACH

6. CREATING NEW PRODUCTS AND SERVICES TO

FUTURIZE THE ORGANIZATION.

7. WIDENING THE BREADTH AND DEPTH OF

INTELLECTUAL CAPITAL
• THE BEST PROOF OF COMPETITIVE INNOVATION IS
BILL GATES
 WARREN BUFFET:
BERKSHIRE HATHAWAY STRATEGIES
AT 83, WARREN BUFFET IS
CONSIDERED A LEGENDARY • SOMEONE IS SITTING IN THE SHADE TODAY BECAUSE SOMEONE
INVESTOR WHO REMAINS AT THE PLANTED A TREE A LONG TIME AGO.
TOP OF HIS GAME. HE IS A
VISIONARY VALUE CREATOR WITH • IT TAKES 20 YEARS TO BUILD A REPUTATION AND FIVE MINUTES TO
ONE-OF-A-KIND MIND. BERKSHIRE RUIN IT. IF YOU THINK ABOUT THAT, YOU WILL DO THINGS
HATHAWAY LOOKS STRONGER
DIFFERENTLY.
THAN EVER, WITH SHARES NEAR A
RECORD HIGH, CAPPING A 9,000-
FOLD INCREASE DURING HIS • RISK COMES FROM NOT KNOWING WHAT YOU’RE DOING.
TENURE.
• IT IS BETTER TO HANGOUT WITH PEOPLE BETTER THAN YOU. PICK
BUFFET CONTINUES TO OUT ASSOCIATES WHOSE BEHAVIOR IS BETTER THAN YOURS AND
FORTIFY BERKSHIRE FOR THE
YOU WILL DRIFT IN THAT DIRECTION.
FUTURE AND FOR HIS YET
UNNAMEND SUCCESSOR. THE
COMPANY INVESTED $10 BILLION • WALL STREET IS THE ONLY PLACE THAT PEOPLE RIDE TO IN ROLLS
LAST YEAR IN THE HEINZ BUYOUT ROYCE TO GET ADVICE FOM THOSE WHO TAKE THE SUBWAY.
AND KEEPS SEARCHING FOR AN
“ELEPHANT-SIZE” DEAL TO DEPLOY • PRICE IS WHAT YOU PAY. VALUE IS WHAT YOU GET.
A CHUNK OF ITS $42 BILLION IN
CASH.
• CHAINS OF HABIT ARE TOO LIGHT TO BE FELT UNTIL THEY ARE TOO
BERKSHIRE’S NEXT CEO HEAVY TO BE BROKEN.
WILL GET TO RUN A COMPANY
WITH MORE THAN $15 BILLION OF • THERE SEEMS TO BE SOME PERVERSE HUMAN CHARACTERISTIC THAT
ANNUAL EARNINGS POWER AND LIKES TO MAKE EASY THINGS DIFFICULT.
AN IMPRESSIVE PORTFOLIO OF
BUSINESSES. BUFFET HAS BUILT A
LEGACY AND HE IS STILL ADDING
WARREN BUFFET