Group 1

Government
Management and
Strategic
Management
Government Management Group 1
and Strategic Management

1.1.1 What is Strategic Management?

1.1.1.1 Strategy
1.1.1.2 Strategic Management Process
1.1.2 Components of Strategic Management
1.1.3 Strategic Management Models
1.1.4 Approaches to Strategic Management
Systems
1.1.5 What is Government Management?
1.1.5.1 Defining Governance
1.1.5.2 Levels of Government
 Group 1 Members
1. ABREGANA, ERGEN A. – GROUP LEADER
2. ADAMI, ANGELICA JEAN M. – MEMBER
3. ADORA, JUNY M. – MEMBER
4. ALABADO, JENNY A. – MEMBER
5. ALTICHE, ARVIES V. - MEMBER
6. ALVARADO, NIKKA L. – MEMBER
7. AMACIO, LOWELL JOEY S. – MEMBER
8. AMACIO, MARIA CANNA V. – MEMBER
9. ANGHAG, ANELYN B. – MEMBER
10. BABIA, ANDROW R. - MEMBER
11. BABIA, SHIELA MAE D. – MEMBER
12. BALACUIT, DON CARLO O. – MEMBER
13. BALAGOT, EMMYLOU A. – MEMBER
14. BALINDONG, FATMAH A. – MEMBER
15. BALOGO, FLORENCE C. - MEMBER
Strategic Management Process
The Components
of Strategic
Management
1.1.2
Strategic Management comprises the
following components

 Goal Setting
 Gathering Information
 Strategy Formulation
 Strategy
Implementation
 Strategy Evaluation
 Goal Setting

 Is the process of
deciding what you want
to achieve or what you
want someone to
achieve over a
particular period of
time.
 Gathering Information

The next component of strategic management pertains

to collecting information about all those internal and
external factors that could influence the
implementation and hence, the achievement of goals.
For example;

 Are there enough resources in terms of finances and manpower

to execute a process?
 Are there any laws or regulations to be taken care of?
 What are competitors doing in the same space?
 What are the problems and opportunities that may arise in the
future?
Strategy Formulation

 Strategy formulation is
the process of
establishing goals and
determining the proper
plan of action to achieve
those goals.
 Strategy Implementation

 The next component is to execute it seamlessly.

This is the practical and most rigorous part of
strategic management.
 Strategy implementation is also defined as the
manner in which an organization should
develop, utilize, and amalgamate
organizational structure, control systems, and
culture to follow strategies that lead to
competitive advantage and a better
performance.
Strategy Evaluation

 Strategy evaluation
is the process by which
the management
assesses how well a
chosen strategy has
been implemented and
how successful or
otherwise the strategy
is.
 Strategic
Management
Models
1.1.3
 INTRODUCTION

 Since the development of strategic management, there have been

many definitions of strategic management as there are many books
written in this area.

 According to Gluck and Jaunch (1984), strategic management refers

to a set of decisions and actions that lead to the formulation of an
effective strategy to achieve the objectives of the organization.

 Pearce and Robinson (1985) define strategic management as a set of

decisions and actions that lead to the formulation and implementation
of a strategy so as to achieve the objectives of the organization.
 INTRODUCTION

 Hunger and Wheelen (1996) define strategic management as a set of

managerial decisions and actions which determine the long-run
performance of an organisation. It also includes environmental
scanning, strategy formulation, strategy implementation, and
evaluation and control.

 David (2003) defines strategic management as the art and science of

formulating, implementing and evaluating cross-functional decisions
that enable an organization to achieve its objectives.
 STRATEGIC MANAGEMENT
MODEL

 The strategic management model is important as it provides the basic

framework for understanding how strategic management can be
operationalized at the firm level. Furthermore, the strategic
management model provides managers and strategists a greater
comprehension of the iterative approach in conducting real strategic
management in the organizational setting.
 TOPICS

1. SWOT Analysis Model

2. PEST Model
3. Porter’s Five Forces Model
 1. SWOT Analysis Model

 A basic model of strategic management, SWOT stands for

Strengths, Weaknesses, Opportunities and Threats. This
technique is instrumental in determining growth strategies. By
gauging available opportunities and addressing weaknesses,
organizations can leverage strengths and circumvent threats.
By utilizing this basic model of strategic management,
organizations can gain a competitive advantage over others.
 SWOT Table
1. What is our competitive advantage?
2. What resources do we have?
3. What products are performing well?
1. What technology can we use to
improve the operations?
2. Can we expand our core
operations?
3. What new market segments can we
explore?
1. Where can we improve?
2. What products are
underperforming?
3. Where are we lacking resources?
1. What new regulations threaten for
operations?
2. What do our competitors do well?
3. What consumer trends threaten
business?
How Do You Write a Good SWOT Analysis?

 Creating a SWOT analysis involves identifying and

analyzing the strengths, weaknesses, opportunities, and
threats of a company. It is recommended to first create a
list of questions to answer for each element. The questions
serve as a guide for completing the SWOT analysis and
creating a balanced list. The SWOT framework can be
constructed in list format, as free text, or, most commonly,
as a 4-cell table, with quadrants dedicated to each element.
Strengths and weaknesses are listed first, followed by
opportunities and threats.
 What Are Threats in a SWOT?

 Threats are external forces that may adversely affect the

success of a company. They consist of competitive
advantages of rivals, uncontrollable influences such as
natural disasters, governmental policies, and more.
Identifying threats can help expose barriers to success and
position companies to develop strategies to overcome
them.
 What Are Strenghts in a SWOT?

 Strengths in a SWOT analysis are the favorable internal

activities, processes, and behaviors of a company (what a
company does well). These are the factors that contribute
to the success of the company and its brand. Strengths,
such as highly-rated customer service and effective
supply chain management, help companies sustain and
enhance their competitive advantage.
 The Bottom Line

 A SWOT analysis is a great way to guide business-

strategy meetings. It's powerful to have everyone in the
room discuss the company's core strengths and
weaknesses, define the opportunities and threats, and
brainstorm ideas. Oftentimes, the SWOT analysis you
envision before the session changes throughout to reflect
factors you were unaware of and would never have
captured if not for the group’s input.
 2. PEST Model

 This type of business model in strategic management is a

macro-level plan that helps organizations assess future
changes based on four factors—Political, Economic,
Social and Technological. It helps you analyze market
growth, standing and position with respect to your
competitors and customers in addition to assessing
growth strategies to expand your business. It helps you
strategize based on different geographies, demographics
and products/services.
 The Areas Assessed by PEST Analysis

 The political aspect of PEST Analysis focuses on the areas in which government
policy and/or changes in legislation affect the economy, the specific industry, and
the organization in question. Areas of policy that may particularly affect an
organization include tax and employment laws. 
 The economic portion of the analysis targets the key factors of interest and 
exchange rates, economic growth, supply and demand, inflation, and recession.
 The social factors that may be included in a PEST Analysis are demographics
 and age distribution, cultural attitudes, and workplace and lifestyle trends.
 The technological component considers the specific role and development of
technologies within the sector and organization, as well as the wider uses,
trends, and changes in technology. Government spending on technological
research may also be a point of interest in this area.
 Applications of PEST Analysis

PEST Analysis can assist an organization in recognizing

and thereby capitalizing on opportunities offered by
existing conditions in the business environment. It can
also be used for identifying current or possible future
challenges, allowing for effective planning of how to
best manage these challenges.
 3. Porter’s Five Forces Model

According to Porter’s Five Forces Model, there are five

forces that can strengthen or weaken your organization’s
position in the market. These are industry competition,
new entrants in the market, supplier power, buyer power
and threat of substitutes. This model helps in assessing
an organization’s competitive environment. You can
create, modify and update your business strategy based
on these five competitive forces.
 Porter's 5 forces are:

Potential
of new
entrants
into the
industry
Competition
in the Threat of
industry substitute
products
FIVE
FORCES
MODEL
Power of
suppliers Power of
customers
 1) Competition in the Industry

 The first of the Five Forces refers to the number

of competitors and their ability to undercut a
company. The larger the number of competitors,
along with the number of equivalent products and
services they offer, the lesser the power of a
company.
2) Potential of New Entrants Into an Industry

 A company's power is also affected by the force

of new entrants into its market. The less time and
money it costs for a competitor to enter a
company's market and be an effective competitor,
the more an established company's position could
be significantly weakened.
 3) Power of Suppliers

The next factor in the Porter model addresses

how easily suppliers can drive up the cost of
inputs. It is affected by the number of suppliers of
key inputs of a good or service, how unique these
inputs are, and how much it would cost a
company to switch to another supplier. The fewer
suppliers to an industry, the more a company
would depend on a supplier.
 4) Power of Customers

 The ability that customers have to drive prices

lower or their level of power is one of the Five
Forces. It is affected by how many buyers or
customers a company has, how significant each
customer is, and how much it would cost a
company to find new customers or markets for
its output.
 5) Threat of Substitutes

 The last of the Five Forces focuses on substitutes.

Substitute goods or services that can be used in place of
a company's products or services pose a threat.
Companies that produce goods or services for which
there are no close substitutes will have more power to
increase prices and lock in favorable terms. When close
substitutes are available, customers will have the option
to forgo buying a company's product, and a company's
power can be weakened.
 What Are Porter's Five Forces Used For?

 Porter's Five Forces Model helps managers and

analysts understand the competitive landscape
that a company faces and to understand how a
company is positioned within it.
Approaches in
Strategic
Management
System
1.1.4
Four Approaches

CLASSICAL
EVOLUTIONARY
PROCESSUAL
SYSTEMIC
 As Whittington (2000, p. 11) explains the
‘Classicists’ achieve their profit-oriented
goal of strategy through a long-term
planning process using resources most
effectively.
 Developed and propounded by The
management strategists in the 1960s such Classical
as Igor Ansoff and Alfred Sloan.
 The classical approach relies on the
Approach
strategic capability being concentrated in
the organisational leader and his or her
ability to suitably commanding the
organization.
 The processual view is that the business
environment is messy and largely
unpredictable (Richard Whittington,
2001).
 Maximising profit is not within the The
control of the strategist and sufficient
profit becomes the goal.
Processual
 The ‘Processualists’ doubt the value of Approach
rational long-term planning describing
strategy as an emergent process of
learning and adapting
 Tend to follow rules and routines
already existing in the organisation
 Based on the belief that the economic
environment is continuously changing
Evolutionists’ “believe that high The
profitability and efficiency are essential Evolutionary
for the survival of the firm” (Analoui &
Approach
Karami, 2003, p. 50) try to keep the
costs low, increase efficiency and keep
their options open.
 The systemic approach is taken by
those that understand the need to play
by the local rules (Richard Whittington,
2001)
 Deliberate development of a strategy to
meet cultural and societal needs while
maintaining sufficient profit.
 Strategy must be ‘sociologically The Systemic
sensitive’ as according to Whittington Approach
(2000, p. 39) both outcome and process
depend on the character of the local
social systems that the firm is acting in,
appropriate to particular social
contexts.
Keep in mind:

"The judgment of success

of a strategy is always
measured by whether the
desired goals and
outcomes have been
achieved regardless of the
actual theoretical approach
taken“.
CLAUS KAZMAIER, BBUS (HONS), MSC
FEBRUARY 2016
 Topics:

1.1.5 What is
Government
Management

1.1.5.1 Defining
Governance
1.1.5.2 Levels of
Government
What is Government
Management?

 Governance
management refers to
establishing policies
and continually
monitoring proper
implementation of
them by the governing
body of an
organization, which is
usually the board of
directors.
 What is Government Management?

 Determining the
Organization’s  Determining the
Organization’s Ethical Standard
Goals and
Objective  Ethic policy defines the rules
 Define the purpose or standards for governing
of the organization the behavior of the people
and how the board who work in an organization.
will fulfill that  The Code of Ethics policy
purposes. creates vision of the level of
importance that the company
 To ensure that the
gives to factors such as
goals and objectives sustainability, corporate
are aligned with the social responsibility, and
mission and vision stakeholder engagement over
and to implement their efforts to increase profits
them through the and reach their goals.
strategic plan.
 What is Government Management?

 Determine the
Organization’s Culture  Ensuring Compliance
 Organization’s
culture which refers  All organization must
to how people know and understand
within the the laws and
organization
regulations that
interact with each
other. govern their
 Organizational organization.
culture is largely  The board must ensure
influenced by the that the organization is
organization’s continually in good
mission, vision, and legal standing at all
values statements. times
 Overseeing the Governance
Framework Defined by the
Board of Directors
 Establishing a
framework that governs
all department, people,
and operations.
 Responsible to see that
management is carrying
out the task that will
lead to sound
performance,
profitability, and
sustainability.
 1.1.5.1 Defining Governance

DEFINITION: PURPOSE:

 Governance is the  Governance ensures

process of everyone in an
interactions through organization follows
the laws, norms, appropriate and
power or language of transparent decision-
an organized society making processes and that
over a social system. the interest of all
It is done by the stakeholders (shareholder's,
government of a managers, employees,
state, by a market, or supplier, customers, among
by a network. others) are protected.
  1.1.5.2 Level of
Government

1. National Government.
2. Local Government.
Levels of Government in the Philippines