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The Nature of

Strategic
Management

Bemi Garcia, Jr., - MBA-HROD


Strategic Management Class
June 2019
The Strategic-Management Model

Where are we now?

Where do we want to go?

How are we going to get there?

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Copyright ©2013 Pearson Education
A Comprehensive Strategic-
Management Model

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Copyright ©2013 Pearson Education
Industry Analysis: The External
Factor Evaluation (EFE) Matrix
 Economic  Political
 Social  Governmental
 Cultural  Technological
 Demographic  Competitive
 Environmental  Legal

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OPPORTUNITIES & THREATS ANALYSIS TABLE
EFE Matrix for a Local Ten-
Theater Cinema Complex

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A Comprehensive Strategic-
Management Model

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Copyright ©2013 Pearson Education
SWOT BASED STRATEGIC PLANNING GUIDE

1. GENERAL SITUATION REVIEW


2. INTERNAL APPRAISAL
3. EXTERNAL ASSESSMENT
4. OBJECTIVE SETTING
5. GENERATION OF ALTERNATIVES
6. EVALUATING THE ALTERNATIVES
7. IMPLEMENTING THE PROGRAM
8. MONITORING & CONTROL SYSTEM
Epitaph Exercise
Here lies Susan. She dedicated her life at work, giving
her best and all without minding the boundaries
between personal and career at all. Who treats her
business seriously in an exceptional service manner
and goes beyond the extra-mile. She envisions her
business towards a friendly service operation. She
values trust, loyalty, established harmonious
relationship with her stakeholders and customer
satisfaction more than what is expected. Committed
to meet their obligations to their partners without
compromising its dignity and integrity.
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Epitaph Exercise
A Comprehensive Strategic-
Management Model

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Copyright ©2013 Pearson Education
Assignment # 2:
SWOT Exercise

1. Identify ten (10) opportunities and ten (10) threats that could
represent key factors facing The University of Mindanao.
2. Point of View: Consultants
3. Identify ten (10) Strengths and ten (10) Weaknesses that
could represent key factors facing The University of
Mindanao.
4. Point of View: Consultants
5. Submit the output on February 20 thru email
@bogarciajr@addu.edu.ph

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Copyright ©2013 Pearson Education
A Comprehensive Strategic-
Management Model

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Copyright ©2013 Pearson Education
SWOT BASED STRATEGIC PLANNING GUIDE

1. GENERAL SITUATION REVIEW


2. INTERNAL APPRAISAL
3. EXTERNAL ASSESSMENT
4. OBJECTIVE SETTING
5. GENERATION OF ALTERNATIVES
6. EVALUATING THE ALTERNATIVES
7. IMPLEMENTING THE PROGRAM
8. MONITORING & CONTROL SYSTEM
Assignment # 3:
Matching and Decision Exercises

1. Identify ten (10) opportunities and ten (10) threats that could
represent key factors facing The University of Mindanao.
2. Point of View: Consultants
3. Identify ten (10) Strengths and ten (10) Weaknesses that
could represent key factors facing The University of
Mindanao.
4. Point of View: Consultants
5. Submit the output on February 20 thru email
@bogarciajr@addu.edu.ph

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Copyright ©2013 Pearson Education
SWOT BASED STRATEGIC PLANNING GUIDE

1. GENERAL SITUATION REVIEW


2. INTERNAL APPRAISAL
3. EXTERNAL ASSESSMENT
4. GENERATION OF ALTERNATIVES
5. OBJECTIVE SETTING
6. EVALUATING THE ALTERNATIVES
7. IMPLEMENTING THE PROGRAM
8. EVALUATION, MONITORING & CONTROL
SYSTEM
Stages in the Strategy
Formulation Analytical Framework

Stage 1: Stage 2: Stage 3:


Matching Decision
Input Stage Stage Stage

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Copyright ©2013 Pearson Education
Assignment #4 - Exercise
to be emailed on Wednesday, 04 August
1. Conduct an analysis of the stakeholders of The University of
Mindanao. Present your analysis in a Stakeholder Analysis
Worksheet Table.
2. Construct a Stakeholder-Goal Matrix for the subject company.
3. Formulate a set of goals for the company based on this matrix.
Ensure that each goal should pass the SMART criteria for goal
statements.
4. In the MATCHING stage, an enumeration of the various strategic
options of the company and an explanation on how each strategic
option was arrived at. (The SWOT Matrix would be helpful)
5. Finally, for DECISION stage, A statement of the core strategy you
are proposing for the company and the justifications why you think
this is the best strategy from among the array of options you
generated. (Use QSPM as a tool)
Stakeholders Analysis Table
Stakeholders Expectations Service Opportunity
(What do our stakeholders expect (What can we do for our stakeholders?)

from us?)
Clients/Customers Exceptional quality and customer Provide them excellent service and ensure customer
satisfaction that aims to deliver satisfaction by exceeding expectation that is worthy
services at competitive prices. of their hard earned money.

Staff/Workforce/ HR A safe, enjoyable and rewarding Providing them fun yet meaningful experiences at
workplace for all personnel in work, enhance their skills professionally and become
return of excellent service they a better person/worker that they may not feel of
invest on their specific work working at all.

Stockholders/Owners A sound and profitable return on Maximizing its business profit with Integrity
their investments

Partners/Suppliers/ Deliver their expectations with ease By operating ethically with good judgment
Government and satisfaction
Stakeholders Goal Matrix Table

Stakeholders Key Results Area Performance Indicator Historical Proposed Goal


(KRA) (PI) Performance
Clients/Customers  Customer Satisfaction  Implementation of  None  30 customers per
Satisfaction ratings to  .9 visits per month
 Service Level respondents month  5 visits per month
 Increase number of
visits per month
Staff/Workforce/  Employee  Tardiness/Absenteeism  2 resignations  No resignation every
Human Resource Satisfaction  Satisfaction Ratings per year year
 Increase Capabilities,  Turnover Percentage  Quarterly
Satisfaction &Work  Employee Productivity implementation of
life Balance  Employee Performance satisfaction ratings
Stockholders/  Market Penetration  Increase customer  210 customers  400 customers by 2016
Owners  Increase Awareness base  None  Add 1 subdivision per
of business image  Expand subdivision to year
 Net/Return Profit neighboring cities  none  Sponsor and Join
 Social media presence  none organized event to
 Involvement in promote the business
organized events for  P37, 070 NP in (2 events per year)
promotion 2015  By 2016, Net Profit
 Increase net profit should hit P70, 000
Partners/Suppliers/  Satisfying relationship  Increase awareness of  No initiatives  Implement this
Government with partners the ordinances of the initiatives twice a year
 Committed to follow government by 2016
and abide by the  Continuous education  No established
ordinances thru seminar and in- programs
house workshop
Proposed Goals of Khanj Tshirt Maker

1. Conduct a customer satisfaction survey to 30 customers


per month
2. Increase the frequency of visits to 5 visits per month
3. To attain that no resignation will happen by 2016
4. Quarterly implementation rating to employee by 2016
5. Increase customer base to 400 in 2016
6. To add 1 subdivision as market per year
7. To involve in events to promote the business and expand
its advertising and not limited to word of mouth
8. To gain a net profit of P70, 000 by 2016
9. Implement initiatives twice a year by 2016 in accordance
to the city ordinances
SWOT Matrix of Khanj T-shirt Maker

Goals:
1. Satisfaction survey to 30 customers per
Strengths Weaknesses
month
2. Maintain Empoyees 1. Customers are loyal. (Repeat Orders) 1. Increasing liabilities
3. Employee ratings by 2018 2. Good Market Share 2. Aggressive in financing
4. Bad orders to three (3) in 2018 3. Growth and Profitability arrangement
5. To come up with the job descriptions, duties 4. Very high gross margins in the span 3. Still practicing manual printing
and responsibilities for all employeees by of three years 4. Long production cycle
2018 5. Employees are highly motivated 5. Staff issues. No clear job definition
6. 5 more davao based and davao region 6. Efficient in the movement of of job functions
schools by 2018 collection and disbursement of cash 6. Not updated to printing technology
7. To create social networking sites and operate 7. Depicts good performance and 7. Low social media presence
24/7 by the end 2018 stability of company 8. Un-established company core
8. To sponsor and join organized event to 8. Increased productivity and improves values
promote the business (4 events per year) job satisfaction 9. Low product limitations
9. NET profit to 50% by 2018 9. Established their own t-shirt line
10. Initiatives twice a year by 2018 in accordance
to the ordinances
Opportunities
1. Untapped rural market in the Davao Strength – Opportunity
provincial areas Weakness – Opportunity
2. Linkages in network will increase (S1, S8, S9, O2, O8) – Continuously enhance
(W3, W4, W6, W9, O4, O5, O7, O8) – Invest in
3. Can expand easily products and services that focuses on
new technology for printing that can help
4. Investing in new technologies would create providing the clients with Khanj Brand of
increase production capacity (e.g. subli-
niche in the market excellent customer service.
machine), innovative, and can compete in
5. Demands online are increasing (S2, S3, S4, O1, O3, O7) – Expand market and the market
6. Customer can order using their phones distribute products and services region
7. Large domestic market wide.
8. T-shirt making and printing service demands
are increasing
SWOT Matrix of Khanj T-shirt Maker

Goals: Strengths Weaknesses

Threats
1. Other competitors will offer Strength – Threat
alternative printing services (S4, S7, S9, T1, T2, T3, T6) – Take Weakness – Threat
2. Directing more traffic to the advantage of being in the (W3, W4, W6, W7, W9, T1, T2, T3,
official media accounts market by creating a social T4, T5, T6) – Expand market and
3. Competitors with social media media accounts to entice more develop new products and
accounts customers. services region wide by
4. Numerous established T-shirt
and Printing services (S2, S5, S9, T4, T5, T6) – Invest and investing on sponsored events
5. Lacks of organic promotional for sponsor events to promote the and creating social media
product and attract more accounts.
events
6. Entrants in the T-shirt and customers.
Printing industry will arise

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