FAR EASTERN UNIVERSITY

INSTITUTE OF ACCOUNTS, BUSINESS & FINANCE

Master in Business Administration

https://www.slideshare.net/AhmedBojrada/quiz-8quiz-strategic-management-concepts-cases-11th-
edition-by-fred-r-david-chap

STRATEGIC MANAGEMENT
(MBA 705)
2ndTrimester, S.Y. 2019-2020

This module belongs to:

____________________________________________________

MBA 2ndTrimester S.Y. 2019-2020Strategic Management – MBA 705 Prepared by: Antonino Arturo C Manahan, DBA; FRIBA; CPME
1
 MBA Student
Table of Contents Page

Title page
Table of Contents

Module 1 – January11, 2019

The Nature of Strategic Management 3
Objectives 4
Questions for discussion 4–6
Module 2 – January 11, 2019
The Business Vision and Mission 7
Objectives 7
Questions for discussion 8 – 10
Module 3 – January 18, 2019
The External Assessment 11
Objectives 11
Questions for discussion 12 – 15
Module 4 – January 18, 2019
The Internal Assessment 15
Objectives 15
Questions for discussion 17 – 21
Module 5 – January 25, 2019
Strategies in Action 22
Objectives 22
Questions for discussion 23 – 27
Module 6 – January 25, 2019
Strategy Analysis and Choice 29
Objectives 29
Questions for discussion 30 – 34
Module 7 – February 01, 2019
Implementing Strategies 35
Objectives 35
Questions for discussion 36 – 39
Module 8 – February 08, 2018
Strategy Review, Evaluation, & Control 40
Objectives 40
Questions for discussion 40 -43

Appendices
A – Strategic Management Format 44
B – Oral Defense (Rubrics) Scoring Sheet 46
C – Title Page Template 47
D – Approval Sheet Template 48

MBA 2ndTrimester S.Y. 2019-2020Strategic Management – MBA 705 Prepared by: Antonino Arturo C Manahan, DBA; FRIBA; CPME
2
References 49
Module 1
The Nature of Strategic Management

Module objectives

After studying this module, you should be able to do the following:

1) Describe the strategic-management process.

2) Explain the need for integrating analysis and intuition in strategic management.
3) Define and give examples of key terms in strategic management.
4) Discuss the nature of strategy formulation, implementation, and evaluation activities
5) Describe the benefits of good strategic management.
6) Explain why good ethics is good business in strategic management.
7) Explain the advantages and disadvantages of entering global markets.
8) Discuss the relevance of Sun Tzu’s The Art of War to strategic management.
9) Discuss how a firm may achieve sustained competitive advantage.

-End-

MBA 2ndTrimester S.Y. 2019-2020Strategic Management – MBA 705 Prepared by: Antonino Arturo C Manahan, DBA; FRIBA; CPME
3
Activity 1
The Nature of Strategic Management
- Distribution of modules, orientation, lecture and discussion
- Written exercise [Essay]
- Noon break

Requirements:
- Read, analyze and answer all questions/items given.
- Write legibly and avoid any form of erasures and/or modification/s.
- Each item is equivalent to (5) points, passing points is (3.5)

Questions for discussion

1) What is strategic management process?

- Strategic management process is comprised of three stages that include strategy
formulation, strategy implementation and strategy evaluation . It drives all the activities
of an organization.
a. Strategy formulation includes developing a vision and mission, identifying an
Organization’s external opportunities and threats, determining internal strengths and
weaknesses, establishing long-term objectives, generating alternative strategies, and choosing
particular strategies to pursue.

b. Strategy implementation requires a firm to establish annual objectives, devise policies, motivate
employees, and allocate resources so that formulated strategies can be executed; strategy
implementation includes developing a strategy-supportive culture, creating an effective
organizational structure, redirecting marketing efforts, preparing budgets, developing and utilizing
information systems, and linking employee compensation to organizational performance.

c. Strategy evaluation is the final stage in strategic management. Managers desperately need to
know when particular strategies are not working well; strategy evaluation is the primary means for
obtaining this information.

2) Explain the need for integrating analysis and intuition in strategic management.
- The strategic management process can be described as an objective, logical, systematic
approach for making major decisions in an organization. It attempts to organize qualitative and
quantitative information in a way that allows effective decisions to be made under conditions of
uncertainty. Yet strategic management is not a pure science that lends itself to a nice, neat, one-
two-three approach.
Based on past experiences, judgment, and feelings, most people recognize that intuition is
essential to making good strategic decisions. Intuition is particularly useful for making decisions

MBA 2ndTrimester S.Y. 2019-2020Strategic Management – MBA 705 Prepared by: Antonino Arturo C Manahan, DBA; FRIBA; CPME
4
in situations of great uncertainty or little precedent. It is also helpful when highly interrelated
variables exist or when it is necessary to choose from several plausible alternatives. Some
managers and owners of businesses profess to have extra ordinary abilities for using intuition
alone in devising brilliant strategies.
Although some organizations today may survive and prosper because they have intuitive
geniuses managing them, mostare not so fortunate. Most or ganizations can benefit from
strategic management, which is based upon integrating intuition and analysis in decision making.
Choosing an intuitive or analytic approach to decision making is not an either–orproposition.
Managers at all levels in an organization inject their intuition and judgment in to strategic-
management analyses. Analytical thinking and intuitive thinking complement each other

3) Define and give examples of key terms in strategic management.

A. Competitive Advantage
1. Competitive advantage is defined as anything that a firm does especially wellcompared to
rival firms.
2. Firms should seek a sustained competitive advantage by continually adapting tochanges in
external trends and internal capabilities and evaluating strategies thatcapitalize on those factors.
3. An increasing number of companies are gaining a competitive advantage by using theInternet
for direct selling and for communication with suppliers, customers, creditors, partners,
shareholders, clients, and competitors who may be dispersed globally.

B. Strategists
1. Strategists are in dividuals who are most responsible for the success or failure of
anorganization.2. Strategists hold various job titles, such as chief executive officers, president,
owner, chair of the board, executive director, chancellor, dean, or entrepreneur.3. Strategists help
an organization gather, analyze, and organize information. They track industryand competitive
trends, develop forecasting models and scenario analyses, evaluate corporateand divisional
performance, spot emerging market opportunities, identify business threats, anddevelop creative
action plans.

C. Vision and Mission Statements

1. Vision statements answer the question: “What do we want to become?”

2. Mission statements are “enduring statements of purpose that distinguish one business from
other similar firms. A mission statement identifies the scope of a firm’s operations in product and
market terms.” It addresses the basic question that faces all strategists:“What is our business?” It
should include the values and priorities of an organization.

C. External Opportunities and Threats

1. External opportunities and external threats refer to economic, social, cultural, demographic,
environmental, political, legal, governmental, technological, and competitive trends and events
that could significantly benefit or harm an organization in the future.2.

MBA 2ndTrimester S.Y. 2019-2020Strategic Management – MBA 705 Prepared by: Antonino Arturo C Manahan, DBA; FRIBA; CPME
5
Opportunities and threats are largely beyond the control of a single organization, thus the term
external.
3. To survive in a global economic recession, firms must be aware of the new opportunities and
threats that have surfaced as a result.
4. A basic tenet of strategic management is that firms need to formulate strategies to take
advantage of external opportunities and to avoid or reduce the impact of external threats.
5. The process of conducting research and gathering and assimilating external information is
called environmental scanning or industry analysis.

D .Internal Strengths and Weaknesses

1. Internal strengths and internal weaknesses are an organization’s controllable activities
that are performed especially well or poorly.
2. Identifying and evaluating organizational strengths and weaknesses in the functionalareas of a
business is an essential strategic-management activity.
3. Strengths and weaknesses are determined relative to competitors and may bedetermined by
both performance and elements of being.

E. Long-Term Objectives

1. Objectives can be defined as specific results that an organization seeks to achieve in pursuing
its basic mission.
2. Long term means more than one year.
3. Objectives state direction, aid in evaluation, create synergy, reveal priorities, focus
coordination, and provide a basis for effective planning, organizing, motivating and controlling
activities.
4. Objectives should be challenging, measurable, consistent, reasonable, and clear.

F. Strategies

1. Strategies are the means by which long-term objectives will be achieved. Business strategies
may include geographic expansion, diversification, acquisition, product development, market
penetration, retrenchment, divestiture, liquidation, and joint venture.
2. Strategies currently being pursued by Best Buy, Levi Strauss, and New York Times Company

H. Annual Objectives

1. Annual objectives are short-term milestones that organizations must achieve to reach long-
term objectives.
2. Like long-term objectives, annual objectives should be measurable, quantitative, challenging,
realistic, consistent, and prioritized.

I. Policies
1. Policies are the means by which annual objectives will be achieved. Policies include
guidelines, rules, and procedures established to support efforts to achieve stated objectives.

MBA 2ndTrimester S.Y. 2019-2020Strategic Management – MBA 705 Prepared by: Antonino Arturo C Manahan, DBA; FRIBA; CPME
6
2. Policies are most often stated in terms of management, marketing,
finance/accounting, production/operations, research and development, and computer information
systems activities.
3. Because smoking is a huge burden on companies worldwide, some firms are implementing
policies to curtail smoking.

4) Discuss the nature of strategy formulation, implementation, and evaluation activities.

5) Describe the benefits of good strategic management.

- The benefits of good strategic management allows an organization to be more proactive than
reactive in shaping its own future, it allows an organization to initiate and influence (rather than just
respond to) activities and thus to exert control over its own destiny. Historically, the principal benefit of
strategic management has been to help organizations formulate better strategies through the use of a
more systematic, logical, and rational approach to strategic choice.
Financial Benefits
Research indicates that organizations using strategic-management concepts are more profitable
and successful than those that do not.
Businesses using strategic-management concepts show significant improvement in sales,
profitability, and productivity compared to firms without systematic planning activities.

Nonfinancial Benefits

MBA 2ndTrimester S.Y. 2019-2020Strategic Management – MBA 705 Prepared by: Antonino Arturo C Manahan, DBA; FRIBA; CPME
7
Besides helping firms avoid financial demise, strategic management offers other tangible
benefits, such as an enhanced awareness of external threats, an improved understanding of
competitors’ strategies, increased employee productivity, reduced resistance to change and a
clearer understanding of performance-reward relationships.
Strategic management enhances the problem-prevention capabilities of organizations because
it promotes interaction among managers at all divisional and functional levels.Firms that have
nurtured their managers and employees, shared organizational objectives with them,
empowered them to help improve the product or service, and recognized their contributions
can turn to them for help in a pinch because of this interaction.

6) Explain why good ethics is good business in strategic management.

- Every strategic decision has a moral consequence. The main aim of business ethics is to
provide people with the means for dealing with the moral complications. Ethical decisions in
a business have implications such as satisfied work force, high sales, low regulation cost, more
customers and high goodwill, having a code of ethics helps your company define and maintain
standards of acceptable behavior. A good ethical framework can help guide your company
through times of increased stress, such as rapid growth or organizational change, and decreases
your firm's susceptibility to misconduct.

7) Explain the advantages and disadvantages of entering global markets.

International trade allows countries, states, brands, and businesses to buy and sell in foreign
markets. This trade diversifies the products and services that domestic customers can receive. It
offers the potential for development and expansion, but without the risks of internal research and
development. Trade is not without its problems. One country can profit greatly from it by
exporting, but not importing, goods and services. It can also be used to undercut domestic
markets by offering cheaper, but equally valuable goods.There are many advantages and
disadvantages of international trade to consider, in all its various forms. Here are the key points
to consider.

MBA 2ndTrimester S.Y. 2019-2020Strategic Management – MBA 705 Prepared by: Antonino Arturo C Manahan, DBA; FRIBA; CPME
8
Here Are the Advantages of International Trade

1. It provides a foundation for international growth.

Companies that are involved in exporting can achieve levels of growth that may not be possible
if they only focus on their domestic markets. This allows brands and businesses an opportunity to
achieve sustained revenues from a diversified portfolio of customers in several markets instead
of a limited customer base in a single home market.
2. International trade improves financial performance.
Brands and businesses which assert themselves in foreign trade work can increase their financial
performance. This allows them to augment the returns they achieve on their investments into
research and development. By rotating the products or services through the global market, the
commercial lifespan of each opportunity can be amplified, expanding what existing products and
services can provide. This benefit can even be achieved if a domestic market is no longer
interested.
3. It spreads out the risk a brand and business must assume.
Organizations can better protect themselves from risk thanks to international trade because of the
amount of diversification that can be achieved. Whether it is a financial disaster, like the Great
Recession of 2007-2009, or a natural disaster like Hurricane Katrina, a company with an
international presence can survive and even maintain profitability without domestic customer
support. A home market may be unstable, but international trade can still let the brand and
business be stable.
4. International trade encourages market competitiveness.
When a brand and business competes in several markets simultaneously, then it must focus on its
competitiveness for it to be able to thrive. By observing a larger range of trends because of their
greater level of global market access, brands and businesses can focus on quality, design, and
product development improvements so that they can continuously improve and diversify.
5. International exchange rates can be beneficial to a business.
Brands and businesses involved with international trade can further reduce their risk by taking
advantage of monetary exchange rates. If a company does most of its trading in US dollars, then
trading with Japan to spread the risk of the exchange rate between the yen and the dollar can
potentially add to the profits of the company. The same could be said of the euro or the pound to
the dollar.
6. Revenue streams have some protection.
Although all risk cannot be eliminated from international trade, a series of contracts, insurance,
and financial instrument trading can help to protect the revenue streams a brand and business is
able to develop.
7. It can be used as a way to get around high levels of domestic competition.
A domestic market can have several products or services that are like what a new brand and
business is trying to offer. Instead of competing for a small sliver of that domestic market, going
through international trade can help an organization target similar foreign markets where
competition may be much lower. Over time, the experiences gained in the foreign market can
help an organization be able to establish a stronger domestic presence as well.

MBA 2ndTrimester S.Y. 2019-2020Strategic Management – MBA 705 Prepared by: Antonino Arturo C Manahan, DBA; FRIBA; CPME
9
Here Are the Disadvantages of International Trade

1. There is always a political risk involved with international trade.

If you were a brand and business that was counting on the TPP, then the words of Donald Trump
represent a high political risk. Different countries provide their own political risks at varying
levels, while domestic politics changes over time and presents an ongoing challenge. A
government can change laws in a discriminatory fashion or create regulations that directly
impact a specific organization.
2. There can be severe exchange rate risks.
Many businesses focus on emerging markets for their products or services because it can greatly
extend the lifespan of them. This also means the exchange rates in those emerging markets may
fluctuate wildly, making it difficult to forecast finances for budgeting purposes. The value of
assets and liabilities that are in foreign currencies creates the potential of a brand and business
becoming immediately less competitive overnight, resulting in steep revenue losses.
3. International trade also presents cultural complications.
Different cultures have different attitudes, standards, and expectations that can create problems
for a brand and business. Failing to consider the expectation a different culture may have can
lead to mistakes that damage the reputation of the brand and can be very costly to the bottom
line. Any step of the sales process could create an offense. Something as simple as inappropriate
packaging can be enough to permanently damage a brand’s reputation.
4. It has a credit risk that must be specifically managed.
Many brands and businesses tend to overlook the risk of non-payment when they begin to
operate in the world of international trade. Credit risks can be managed by obtaining insurance or
a letter of credit, but customer finances and credit can still impact the number of potential sales
that can be received within a market. Without an understanding of the B2B and B2C credit
potential of an international market, the success a brand and business can receive will be hit or
miss at best.
5. International trade increases the risk of proprietary information theft.
Going into an international market with a product or service increases the risk of another brand
or business stealing proprietary information, marketing concepts, or even a personal identity.
China has a reputation of doing this, even if there isn’t a business presence in the local market.
Do you remember the Obama Fried Chicken billboard from 2011?
The advantages and disadvantages of international trade can all be managed appropriately with
good market research and an understanding of foreign cultures. There will always be brands and
businesses that succeed more than others in any trade deal. The goal must be to evaluate these
key points so that a full understanding of what to expect can be obtained so participation levels
can be properly gauged.

MBA 2ndTrimester S.Y. 2019-2020Strategic Management – MBA 705 Prepared by: Antonino Arturo C Manahan, DBA; FRIBA; CPME
10
8) Discuss the relevance of Sun Tzu’s The Art of War to strategic management.
Sun Tzu's Art of War is considered to be the ultimate business strategy guide. Its
principles aim to enable leaders, their teams, and organizations to know themselves, know
their 'enemy', and know their terrain. They are widely used to help businesses today sustain
a competitive advantage and succeed.
Sun Tzu postulated two forces--the Zheng element, which fixes the enemy in place, and the
Qi element, which flanks or encircles the enemy, either actually or psychologically. The
Zheng (ordinary) force is direct and more obvious, while the Qi (extraordinary) is indirect,
unexpected, distracting, or unorthodox. Using both elements ensures that decisive blows will
fall where the enemy does not anticipate them, and is least prepared.
The two factors are fluid. History shows many examples when what is Zheng becomes Qi,
and Qi becomes Zheng.
When strategy is in place, the organization sits in a position the Sun Tzu called shih. Sun
Tzu's army did not have a specific program or plan, but understood the compeititive
landscape and all of its options. As the battle begins, decision-makers high and low know
what to do as each contingency plays out.
Strategy is, simply, the art and science of options. It’s a matter of understanding current
options, creating new options, and choosing among them.
Strategic decision-making involves thinking about the long-term course one will take through
a broad competitive landscape. Strategy provides the direction for operations. Operational
planning and decision-making, in turn guides the tactical decisions made in the heat of battle

9) Discuss how a firm may achieve sustained competitive advantage.

- Porter outlined the three primary ways companies achieve a sustainable advantage. They are
cost leadership, differentiation, and focus. ... Cost leadership means companies provide
reasonable value at a lower price. Firms do this by continuously improving operational
efficiency.

MBA 2ndTrimester S.Y. 2019-2020Strategic Management – MBA 705 Prepared by: Antonino Arturo C Manahan, DBA; FRIBA; CPME
11
 Module 2
The Business Vision and Mission

Module objectives

After studying this module, you should be able to do the following:

1) Describe the nature and role of vision and mission statements in strategic management.
2) Discuss why the process of developing a mission statement is as important as the resulting
document.
3) Identify the components of mission statements.
4) Discuss how clear vision and mission statements can benefit other strategic management
activities.
5) Evaluate mission statements of different organizations and/or your organization.
6) Identify established mission statements using the nine criteria.

MBA 2ndTrimester S.Y. 2019-2020Strategic Management – MBA 705 Prepared by: Antonino Arturo C Manahan, DBA; FRIBA; CPME
12
Activity 2
The Business Vision and Mission
- Lecture and discussion
- Written exercise [Essay]
- Noon break

Requirements:
- Read, analyze and answer all questions/items given.
- Write legibly and avoid any form of erasures and/or modification/s.
- Each item is equivalent to 5 points, passing points is 3.5 points

Questions for discussion

1) Describe the nature and role of vision and mission statements in strategic management.

-Mission and vision both relate to an organization’s purpose and aspirations, and are typically
communicated in some form of brief written statements. A mission statement communicates
the organization’s reason for being and how it aspires to serve its key stakeholders. The vision
statement is a narrower, future-oriented declaration of the organization’s purpose and
aspirations. Together, mission and vision guide strategy development, help communicate the
organization’s purpose to stakeholders, and inform the goals and objectives set to determine
whether the strategy is on track.
Mission statements are a declaration of an organization’s “reason for being”. It answers the
question of what is this business and effectively establishes objectives and formulating strategies.
Vision statements answer the question of what do we want to become. Collectively the mission is
what the organization wants to be and the vision is how they plan on getting there.

2) Discuss why the process of developing a mission statement is as important as the resulting
document.

- In order to facilitate the growth of an organization as many mangers as possible should be

involved to develop statements that promote involvement. As the mangers meet and give their
ideas through the modification process, deleting and adding text where necessary, the support for
further ideas is fostered through their active participation. Through this collective process
garners the necessary support for further implementation and evaluation as the company moves
forward.

MBA 2ndTrimester S.Y. 2019-2020Strategic Management – MBA 705 Prepared by: Antonino Arturo C Manahan, DBA; FRIBA; CPME
13
3) Identify the components of mission statements.

Mission statements can and do vary in length, content, format and specificity. Most practitioners
and academicians of strategic management consider an effectively written mission statement to
exhibit nine characteristics or mission statement components. Since a mission statement is often
the most visible and public part of the strategic management process, it is important that it
include most, if not all, of these essential components. Components and corresponding questions
that a mission statement should answer are given here.

1. Customers: Who are the enterprise's customers?

2. Products or services: What are the firm's major products or services?
3. Markets: Where does the firm compete?
4. Technology: What is the firm's basic technology?
5. Concern for survival, growth, and profitability: What is the firm's commitment towards
economic objectives?
6. Philosophy: What are the basic beliefs, core values, aspirations and philosophical priorities of
the firm?
7. Self-concept: What are the firm's major strengths and competitive advantages?
8. Concern for public image: What is the firm's public image?
9. Concern for employees: What is the firm's attitude/orientation towards employees?

MBA 2ndTrimester S.Y. 2019-2020Strategic Management – MBA 705 Prepared by: Antonino Arturo C Manahan, DBA; FRIBA; CPME
14
4) Discuss how clear vision and mission statements can benefit other strategic management
activities.

- Vision and mission statements help a company articulate long-term goals and concepts for a business
and should be considered when crafting new strategic approaches to business problems or service
expansion. The statements summarize strategy in an easily communicated and understandable format.
Well-written vision and mission statements ensure that each element of the strategic management
process is aligned to the company's long-term goals. Managers use clear and concise vision and
mission statements to communicate their aspirations to stakeholders. Employees understand
where to focus their efforts if they align their daily work with the vision and mission. Clear
vision and mission statements allow customers, suppliers and shareholders to choose whether or
not they want to do business with the company.

5) Evaluate mission statements of different organizations or your organization using the nine
criteria.

6) Identify established mission statements given, using the nine criteria.Properly label the
corresponding criterion using the blank symbol “( )” provided. [Use red ball-point pen in this
section.]

MBA 2ndTrimester S.Y. 2019-2020Strategic Management – MBA 705 Prepared by: Antonino Arturo C Manahan, DBA; FRIBA; CPME
15
 Dell Corp.

6.1) Dell’s mission is to be the most innovative consumer electronics products company ( 2 ),
in the world ( 3 ), reaching out to businesses, institutional organizations, and individual
customers ( ). Dell strives to produce the most technologically advance ( ) products to make
life and work easier and more enjoyable. Dell’s uniqueness centers around its tailoring of
products and services for individual customers ( ). Dell employees ( ) respect all laws,
values, and cultures wherever the firm does business ( ). As America’s most admired firm,
Dell strives to profitably grow ( ) in all markets while contributing positively in every
community we call home ( ).

Source: David, Fred R. (2007). Strategic Management 11th Edition, Case Instructor’s Manual. Pearson Prentice Hall,
Singapore. p.16.

Pepsi Co. (2005)

6.2)To be the world’s ( ) premier consumer products company focused on convenient foods
and beverages ( ). We strive for healthy financial rewards to investors ( ) as we provide
opportunities for growth and enrichment to our employees ( ), business partners, and the
communities ( ) in which we operate. We have outstanding technological ( ) and
marketing ( ) systems to continually innovate and crat differentiated products for our
customers ( ) worldwide. And in everything we do, we strive for honesty, fairness, and
integrity ( ).

Source: David, Fred R. (2007). Strategic Management 11th Edition, Case Instructor’s Manual. Pearson Prentice Hall, Singapore.
p.32.

-End-

MBA 2ndTrimester S.Y. 2019-2020Strategic Management – MBA 705 Prepared by: Antonino Arturo C Manahan, DBA; FRIBA; CPME
16
 Module 3
The External Assessment

Module objectives

After studying this module, you should be able to do the following:

1) Describe how to conduct an external strategic-management audit

2) Discuss 10 major external forces that affect organizations: economic, social, cultural,
demographic, environmental, political, governmental, legal, technological, and
competitive.
3) Identify key sources of external information, including the internet.
4) Discuss important forecasting tools used in strategic management.
5) Discuss the importance of monitoring external trends and events.
6) Explain how to develop an EFE Matrix.
7) Explain how to develop a Competitive Profile Matrix (CPM).
8) Discuss the importance of gathering competitive intelligence.
9) Describe the trend toward cooperation among competitors.
10) Discuss the political environment in Philippines.
11) Discuss the global challenges facing Philippine firms.
12) Discuss market commonality and resource similarity in relation to competitive analysis.

MBA 2ndTrimester S.Y. 2019-2020Strategic Management – MBA 705 Prepared by: Antonino Arturo C Manahan, DBA; FRIBA; CPME
17
Activity 3
The External Assessment
- Lecture and discussion
- Written exercise
- Presentation of output
- Synthesis
- End of session

Requirements:
- Read, analyze and answer all questions/items given.
- Write legibly and avoid any form of erasures and/or modification/s.
- Each item is equivalent to 5 points, passing points is 3.5

Questions for discussion

1) Explain how to conduct an external strategic-management audit.

- An effective approach for conducting an external strategic management audit consists of

four basic steps:
Select key variables
Select key source of information
Use forecasting tools and techniques
Construct an EFE Matrix

2) Identify a recent economic, social, political, or technological trend [at least three factors]
that significantly affects [your choice of company/institutions/industry].
Economic interest rates remain low
Social in many states are passing no smoking ordinaries
Political Eastern European countries are experiencing political instability
Technology use of the internet is doubling every 100 days

MBA 2ndTrimester S.Y. 2019-2020Strategic Management – MBA 705 Prepared by: Antonino Arturo C Manahan, DBA; FRIBA; CPME
18
3) Identify two industries experiencing rapid technological changes and three industries that
are experiencing little technological change. How does the need for technological
forecasting differ in these industries? Why?
- The computer industry, communication industry and aerospace industry are experiencing
rapid change. Three industries that are experiencing little technological change are the
forest products industry, the shipping industry and the dairy industry.

4) As the owner of a small business, explain how would you organize a strategic-information
scanning system? How would you organize such system in a large organization?
- In both small and large organization, strategic could assign specific publications to
particular individual who could then monitor their assigned source and regularly report
strategic information to a coordinator. Also both small business people and chief executive
officers of large business could effectively use on line databases

MBA 2ndTrimester S.Y. 2019-2020Strategic Management – MBA 705 Prepared by: Antonino Arturo C Manahan, DBA; FRIBA; CPME
19
 5) Construct an External Factor Evaluation Matrix for an organization of your choice. Assign
corresponding weights and ratings accordingly.

External Factor Evaluation Matrix (EFE)

Key External Factors Weights Ratings AS

Opportunities
1.

2.

3.

4.

5.

6.

Threats
1.

2.

3.

4.

5.

6.

Total Attractiveness Score

Analysis and interpretation:

Strategic External Issues:

MBA 2ndTrimester S.Y. 2019-2020Strategic Management – MBA 705 Prepared by: Antonino Arturo C Manahan, DBA; FRIBA; CPME
20
 6) Develop a Competitive Profile Matrix for your university, identify at least ten critical
success factors and then assign a corresponding weights and ratings equivalence. Discuss
level of importance and confidence accordingly.

Competitive Profile Matrix (CPM)

University 1 University 2
Critical Success Factors Weight Rating Score Rating Score
1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

Totals 1.00

Analysis and interpretation:

MBA 2ndTrimester S.Y. 2019-2020Strategic Management – MBA 705 Prepared by: Antonino Arturo C Manahan, DBA; FRIBA; CPME
21
 Module 4
The Internal Assessment

Module objectives

After studying this module, you should be able to do the following:

1) Describe how to perform an internal strategic-management audit.

2) Discuss the Resource-Based View (RBV) in strategic management.
3) Discuss key interrelationships among the functional areas of business.
4) Compare and contrast culture in Philippines versus other countries.
5) Identify the basic functions or activities that make up management, marketing,
finance/accounting, production/operations, research and development, and management
information systems.
6) Explain how to determine and prioritize a firm’s internal strengths and weaknesses.
7) Explain the importance of financial ratios.
8) Discuss the role of management information systems in strategic management.
9) Develop an IFE Matrix.
10) Explain benchmarking as a strategic management tool.

MBA 2ndTrimester S.Y. 2019-2020Strategic Management – MBA 705 Prepared by: Antonino Arturo C Manahan, DBA; FRIBA; CPME
22
Activity 4
The Internal Assessment
- Lecture, and discussion
- Written exercise
- Presentation of output
- Noon break
- Orientation of module 5, Lecture and discussion
- Written exercise
- Presentation of output
- Synthesis of module 4 and 5
- End of session

Requirements:
- Read, analyze and answer all questions/items given.
- Write legibly and avoid any form of erasures and/or modification/s.
- Each item is equivalent to 5 points, passing points is 3.5

Questions for discussion:

1) Explain why prioritizing the relative importance of strengths and weaknesses to include in
an IFE Matrix is an important strategic-management activity.
- IFE Matrix stands on Internal Factor Evaluation Matrix that is one of the most significant
and innovative tools for today’s business firms in assessing the main strengths as well as
weakness in the functional areas of the business. At the same time, it is also found that, this
matrix is also valuable for the companies in identifying and analyzing the connection among
the various functional areas of the business. Along with this, as per the strategic
management, it is also valuable, imperative, and significant to prioritize every strength as
well a weakness to a number of weighting level such (1.0 for all significant and 0.0 for not
vital). It is because each and every strengths and weaknesses would not give the equal weight
or effect. In other words, it can be said that, all strengths will not supply uniformly to the
whole strength of the business.

MBA 2ndTrimester S.Y. 2019-2020Strategic Management – MBA 705 Prepared by: Antonino Arturo C Manahan, DBA; FRIBA; CPME
23
2) Which of the three basic functions of finance/accounting do you feel is most important in
small electronics manufacturing concern? Justify your position.

3) Why do you think production/operations managers are often not directly involved in
strategy-formulation activities? Why can this be a major organizational weakness?

- Production / operations managers are involved in day to day running of the business. Their
main role is to ensure the operations run smoothly on a daily basis, the primary reason why
production and operation managers are not directly involved in strategy-formulation
activities is because they are seen as strategy-implementers. It should be noted that
often -80% of firm resources in terms of employees and assets are involved in
operations and therefore these people should play an integral role in strategy-
formulation.

4) Would you ever pay out dividends when your firm’s annual net profit is negative? Why?
What effect could this have on a firm’s strategies?

Firms can pay out dividends in the event of negative annual net profit as the driving force
behind dividend payments is in excess cash or retained earnings.

MBA 2ndTrimester S.Y. 2019-2020Strategic Management – MBA 705 Prepared by: Antonino Arturo C Manahan, DBA; FRIBA; CPME
24
5) After conducting an internal audit, a firm discovers a total of 100 strengths and 100
weaknesses. What procedures could then be used to determine the most important of
these? Why is it important to reduce the total number of key factors?

Nominal grouping is an effective procedure for reducing many strengths and weaknesses to
a manageable number of from 5 to 20. It is important in strategy formulation to identify the
most important (10 to 20) key factors rather than including all factors in an Internal Factor
Evaluation Matrix. Nominal grouping is also an effective approach for developing an
External Factor Evaluation Matrix

6) Do you agree or disagree with the Resource-Based View (RBV) theorists that internal
resources are more important than external factors for a firm in achieving and sustaining
competitive advantage? Explain your and their position.

I don’t agree with this as a firm’s resources and capabilities may help it in attaining
competitive advantage, but to sustain competitive advantage it is crucial to consider
external factors such as social, economic, political, technological, legal, and
environmental aspects. With increasing globalization and firms operating in an
international business environment it is critical for firms to keep analyzing and adapting
external factors and business environment trends. Without considering external factors, it
is not possible for firms to sustain their competitive advantage in long run as well as
attain a global position.

MBA 2ndTrimester S.Y. 2019-2020Strategic Management – MBA 705 Prepared by: Antonino Arturo C Manahan, DBA; FRIBA; CPME
25
7) Define and explain value chain analysis (VCA)

Value chain analysis (VCA) is a process where a firm identifies its primary and support
activities that add value to its final product and then analyze these activities to reduce
costs or increase differentiation, by looking into internal activities, the analysis reveals where
a firm’s competitive advantages or disadvantages are. The firm that competes through
differentiation advantage will try to perform its activities better than competitors would do. If it
competes through cost advantage, it will try to perform internal activities at lower costs than
competitors would do. When a company is capable of producing goods at lower costs than the
market price or to provide superior products, it earns profits.

8) Explain Benchmarking.
- Benchmarking is a process of measuring the performance of a company’s products,
services, or processes against those of another business considered to be the best in the
industry, the point of benchmarking is to identify internal opportunities for improvement.
By studying companies with superior performance, breaking down what makes such
superior performance possible, and then comparing those processes to how your business
operates, you can implement changes that will yield significant improvements.
That might mean tweaking a product’s features to more closely match a competitor’s
offering, or changing the scope of services you offer, or installing a new customer
relationship management (CRM) system to enable more personalized communications
with customers.
There are two basic kinds of improvement opportunities: continuous and dramatic.
Continuous improvement is incremental, involving only small adjustments to reap
sizeable advances. Dramatic improvement can only come about through reengineering
the whole internal work process.

MBA 2ndTrimester S.Y. 2019-2020Strategic Management – MBA 705 Prepared by: Antonino Arturo C Manahan, DBA; FRIBA; CPME
26
9) Construct an Internal Factor Evaluation Matrix for an organization of your choice. Assign
corresponding weights and ratings accordingly.

Internal Factor Evaluation Matrix (IFE)

Key Internal Factors Weights Ratings AS

Strengths
1.

2.

3.

4.

5.

6.

Weaknesses
1.

2.

3.

4.

5.

6.

Total Attractiveness Score

Analysis and interpretation:

Strategic Internal issues:

MBA 2ndTrimester S.Y. 2019-2020Strategic Management – MBA 705 Prepared by: Antonino Arturo C Manahan, DBA; FRIBA; CPME
27
 Module 5
Strategies in Action

Module objectives

After studying this module, you should be able to do the following:

1) Discuss the value of establishing long-term objectives.

2) Identify the types of business strategies.
3) Identify numerous examples of organizations pursuing different types of strategies.
4) Discuss Porter’s generic strategies.
5) Discuss the balance scorecard.
6) Explain the First Mover Advantages concept.
7) Discuss recent trends in outsourcing.
8) Discuss strategies for competing in turbulent, high velocity markets.

MBA 2ndTrimester S.Y. 2019-2020Strategic Management – MBA 705 Prepared by: Antonino Arturo C Manahan, DBA; FRIBA; CPME
28
Activity 5
Strategies in Action
- Lecture and discussion
- Written exercise
- Presentation of output
- Synthesis of module
- End of session

Requirements:
- Read, analyze and answer all questions/items given.
- Write legibly and avoid any form of erasures and/or modification/s.
- Each item is equivalent to 5 points, passing points is 3.5

Questions for discussion:

1) How does strategy formulation differ for a small versus large organization? For a for-profit
versus a nonprofit organization?

- Strategy formulation is conceptually the same for both small and large organizations. However, for large firms, there
are more variables to include in both the external and internal audits. The process is usually more formal in a large
firm.

MBA 2ndTrimester S.Y. 2019-2020Strategic Management – MBA 705 Prepared by: Antonino Arturo C Manahan, DBA; FRIBA; CPME
29
2) Give hypothetical examples of market penetration, market development, product
development, forward integration, backward integration, horizontal integration, concentric
diversification, horizontal diversification, conglomerate diversification, joint venture,
retrenchment, divestiture, and liquidation.
Market penetration means selling more products to existing markets by advertising more oradding
sales reps, such as PepsiCo’s strategy in Russia. Market development means selling an existing
product to a new market. YUM! Brands is opening 500 new stores in China. Product development
means developing and selling a new product to an existing market. An example of this is Google’s
new Chrome OS operating system, which is expected to overtake Microsoft Windows by2015.
5-26. Give hypothetical examples of forward integration, backward integration, and horizontal
integration. Answer: Forward integration means purchasing or developing a distributor for a
product. For instance, Microsoft is opening its own retail stores. Backward integration means
owning a supply source for production. For example, Apple is working to produce its own
internally developed chips for its iPhone and iPod Touch devices. Horizontal integration means
acquiring like operations. For instance, a hospital group may purchase another hospital.
5-27. Give hypothetical examples of related and unrelated diversification. Answer: Related
diversification, also called concentric diversification, means adding new, but related products. When
Under Armour began selling running shoes for the first time, this represented related diversification.
Unrelated, or horizontal, diversification means adding new, unrelated products for customers. For
instance, Qualcomm Inc. recently diversified beyond cell phones into desktop hardware.
5-28. Give hypothetical examples of joint venture, retrenchment, divestiture, and liquidation.
Answer: A joint venture is a partnership between two companies. As part of a joint venture, Nokia
and Facebook are partnering to embed parts of the social network into some Nokia
games. Retrenchment occurs when an organization regroups through cost and asset
reduction to reverse declining sales. Recently, J.C. Penney has launched a massive
retrenchment strategy in efforts to save the company. Divestiture is selling a division or
part of a company. PepsiCo is considering divesting its Snacks division. Liquidation is
selling all of a company’s assets.

MBA 2ndTrimester S.Y. 2019-2020Strategic Management – MBA 705 Prepared by: Antonino Arturo C Manahan, DBA; FRIBA; CPME
30
3) Consumers can purchase tennis shoes, food, cars, bats, and insurance on the Internet. Are
there any products today that cannot be purchased online? What is the implication for
traditional retailers?
- Nowadays almost all products can be purchased online. This had made it easier for the
consumer to shop for different products and services.

4) Compare and contrast financial objectives with strategic objectives. Which type is more
important in your opinion? Why?
The financial objectives means the goals of the company which are related to finance and money
which are to be achieved as decided by the company which may be monthly, quarterly, half yearly or
yearly. These objectives are very crucial as the goals have to be achieved for the running of the
company and smooth operations. This increases the goodwill and the worthiness of the firm.
Strategies objective means the strategies which the companies have planned for the betterment of the
firm so that the products and services of the company are preferred by the end users and consumers
and hence increases the revenue and sales of the company which shall lead to help the financial
objectives of the company. The tactics of the companies are formulated and framed such that the
promotions are done for creating a brand image in the market it also helps in customer loyalty, brand
positioning etc....
We require both financial and strategic objectives but , whatever may be the situation ,We select the
objectives based on the present performance of organization and do accordingly

MBA 2ndTrimester S.Y. 2019-2020Strategic Management – MBA 705 Prepared by: Antonino Arturo C Manahan, DBA; FRIBA; CPME
31
5) Define and explain “first mover advantages”
Refer to the benefits a firm may achieve by entering a new market or developing a new
product or service prior to rival firms, some advantages of being a first mover include
securing access to rare resources, gaining new knowledge of key factors and issues, and carving
out market share and a position that is easy to defend and costly for rival firms to overtake For
example, Amazon.com may not have been the first seller of books online, but
Amazon.com was the first significant company to make a entrance into the online book
market.

6) Define and explain outsourcing.

- Involves companies hiring other companies to take over various parts of their functional
operations, such as human resources, information systems, payroll, accounting, customer
service, and even marketing. companies choose to outsource their functional operations for
several reasons:
(a) It is less expensive,
(b) It allows the firm to focus on its core businesses
(c) It enables the firm to provide better services

MBA 2ndTrimester S.Y. 2019-2020Strategic Management – MBA 705 Prepared by: Antonino Arturo C Manahan, DBA; FRIBA; CPME
32
7) What strategies are best for turbulent, high velocity markets?
Invest aggressively in R&D t stay on the leading edge of technological know-how.
Pursue rapid product innovation to – Set a company's product offering apart from rivals –
Incorporate attributes to appeal to growing numbers of customers

MBA 2ndTrimester S.Y. 2019-2020Strategic Management – MBA 705 Prepared by: Antonino Arturo C Manahan, DBA; FRIBA; CPME
33
 Module 6
Strategy Analysis and Choice

Module objectives

After studying this module, you should be able to do the following:

1) Discuss a three-stage framework for choosing among alternative strategies.

2) Explain how to develop a SWOT matrix, SPACE Matrix, BCG Matrix, IE Matrix, and
QSPM.
3) Identify important behavioral, political, ethical, and social responsibility considerations in
strategy analysis and choice.
4) Discuss the role of intuition in strategic analysis and choice.

MBA 2ndTrimester S.Y. 2019-2020Strategic Management – MBA 705 Prepared by: Antonino Arturo C Manahan, DBA; FRIBA; CPME
34
Activity 6
Strategies Analysis and Choice
- Orientation of module 6, Lecture, and discussion
- Written exercise
- Presentation of output
- Noon break
- Presentation of output
- Synthesis of module 6
- End of session

Requirements:
- Read, analyze and answer all questions/items given.
- Write legibly and avoid any form of erasures and/or modification/s.
- Each item is equivalent to 5 points, passing points is 3.5
- Answer questions for discussion on page 30.

MBA 2ndTrimester S.Y. 2019-2020Strategic Management – MBA 705 Prepared by: Antonino Arturo C Manahan, DBA; FRIBA; CPME
35
Questions for discussion:

1) Given the following factors under Strengths, Weaknesses, Opportunities, & Threats,
identify SO, WO, ST, and WT strategies using the following given data thereafter. Label
your answer/s using the corresponding letters ONLY.

TOWS/SWOT Matrix

Strengths – S Weaknesses – W
1. Good grades 1. No work
2. Financial experience
resources available 2. No foreign
for education language skills
3. Strong 3. Degree from
communication regional university
skills with little brand
4. Motivated recognition
5. Good team player

Opportunities – O SO Strategies WO Strategies

1. Potential to advance
education with 1. __________ 1. ___________
MBA (S1, S2, 01) (W1, 02)
2. Many industries and
locations with job
growth (especially 2. __________ 2. ___________
health care and (S1, S3, S4, S5, (W2, O1)
biotechnology) O2)

Threats – T ST Strategies WT Strategies

1. Many students
graduate each year 1. ___________ 1. ___________
with same degree (S1, T1) (W2, T1)
2. Potential for
recession or slow
economic growth 2. ___________ 2. ___________
(fewer jobs (S2, T2, T3) (W1, T2, T3)

MBA 2ndTrimester S.Y. 2019-2020Strategic Management – MBA 705 Prepared by: Antonino Arturo C Manahan, DBA; FRIBA; CPME
36
 available, salaries
lower)
3. Jobs outsourced
overseas

Choices of Possible Strategies:

A. Seek out internship in growing industry

B. Apply to graduate school
C. Pursue foreign language training and other skills that can differentiate from others
D. Enter industries with strong potential for growth
E. Emphasize good grades to potential employers
F. Seek out an internship
G. Consider pursuing MBA if job market is weak
H. Minimize importance of foreign language by improving other aspects of education

2) Given the following data, compute and draw the (X) and (Y) axis with conclusion. Identify the
vertical point axis decision as to: Aggressive; Conservative; Competitive; and Defensive.
Determine possible strategies allocated for such decision.

2.1 FS = 4.8; ES = -3.4 Conclusion: Strategies:

CA = -2; IS = 5.2 y-axis =
x-axis =

2.2 FS = 3.6; ES = -4.0 Conclusion: Strategies:

CA = -3.2; IS = 4.6 y-axis =
x-axis =

MBA 2ndTrimester S.Y. 2019-2020Strategic Management – MBA 705 Prepared by: Antonino Arturo C Manahan, DBA; FRIBA; CPME
37
3) Given the following data, illustrate BCG Matrix and address final decision making:

% of students Market Share % Growth Rate

enrolled Position BC
School of Business 40 1 Medium G
School of Education 30 2 Low Mat
School of arts 10 3 Low rix
School of Science and Humanities 20 4 Medium
Relative Market Share

High 1.0 Medium .50 Low 0.0

High +20
Stars Question marks

Medium 0
Cash cows Dogs

Low - 20

Strategic decision:

MBA 2ndTrimester S.Y. 2019-2020Strategic Management – MBA 705 Prepared by: Antonino Arturo C Manahan, DBA; FRIBA; CPME
38
 4) Given the following data, illustrate Internal-External (IE) Matrix, label each item with
conclusions.

Given Data

Item IFE weighted EFE weighted Conclusion

score score
1 2.8 1.3
2 3.5 1.5
3 1.2 2.4
4 2.0 1.2
5 1.8 1.7
6 3.8 3.5
7 3.1 1.6

IE Matrix

IFE
Strong Average Weak
3.0 to 4.0 2.0 to 2.00 1.0 to 1.99

High I II III
3.0 to 3.99

EFE
IV V VI
Medium
2.0 to 2.99

VII VIII IX
Low
1.0 to 1.99

5) Using the given data below, illustrate QSPM and compute the Total Attractiveness Scores.

MBA 2ndTrimester S.Y. 2019-2020Strategic Management – MBA 705 Prepared by: Antonino Arturo C Manahan, DBA; FRIBA; CPME
39
 A. Have a free benefit concert to raise money for the new World Center every three months.
B. Develop a branch of Metro Ministries in Staten Island because it holds 5% of New York
City’s total population and is the fastest growing borough in the city.
QSPM
Strategic Alternatives
Key Internal Factors Weight Strategy A Strategy B
Strengths AS TAS AS TAS
1. Metro Ministries operates the largest Sunday school program 0.15
in the country with over 20,000 kids.
2. Affiliations with 11 foreign countries. 0.05
3. Location in the ghetto of Brooklyn. 0.02
4. Free transportation to and from the ministries. 0.04
5. Exempt from federal income taxes. 0.08
6. The Menorah site to be the new Metro World Ministries
Center. 0.10
7. Spanish-speaking services. 0.03
8. Bill Wilson’s speaking ability that gains revenue for the
ministries. 0.01
9. Truck conversations and custom-built trailers. 0.05
10. User friendly Website. 0.05
Weaknesses
1. Bill Wilson has too many titles. “founder, chairman, and
senior pastor” 0.03
2. Lack of help with renovation of Metro World Ministries
Center. 0.04
3. Understaffed with the addition of the New World Center. 0.10
4. The belief in patterns that worked in Europe will also work in
Africa. 0.10
5. 9 of 11 foreign countries are only administrative offices. 0.10
6. Only women are staffed in “Chinatown” leaving young men
without male role models. 0.05
Opportunities
1. There are many other markets in need of Metro Ministries
Centers. 0.08
2. Many families could afford to pay small amount for their
children to attend functions. 0.05
3. There is an increasing need for larger classes. 0.06
4. Ensure business understand their donations are tax
deductible. 0.10
5. Large cities are well suited to fundraising projects. 0.10
6. Mobile bakery projects are successful. 0.10
7. Teens and adults would also benefit from ministry. 0.12
Threats
1. Rough environment. 0.03
2. Resistance from parents to let children to go to church by bus. 0.04
3. Vandalism of the new Metro Ministries World Center. 0.02
4. Depletion of funds to support renovation of World Center. 0.07
5. Lack of employment to support such a large expansion. 0.08
6. The threat that Spanish-and-Chinese-speaking citizens will
develop their own services without Metro’s involvement. 0.08

MBA 2ndTrimester S.Y. 2019-2020Strategic Management – MBA 705 Prepared by: Antonino Arturo C Manahan, DBA; FRIBA; CPME
40
7. Lack of financial support to renovate the Metro World
Center. 0.07
SUBTOTAL

TOTAL ATTRACTIVENESS SCORE

Module 7
Implementing Strategies: Management and Operations;
Marketing, Finance/Accounting; R&D, and MIS Issues

Module objectives

After studying this module, you should be able to do the following:

1) Explain why strategy implementation is more difficult than strategy formulation.

2) Explain why organizational structure is so important in strategy implementation.
3) Compare and contrast restructuring and reengineering.
4) Explain market segmentation and product positioning as strategy-implementation tools.
5) Discuss procedures for determining the worth of a business.
6) Explain why projected financial analysis is a central strategy-implementation tool.
7) Discuss the nature and role of research and development in strategy implementation.
8) Explain how management information systems can determine the success of strategy-
implementation efforts.

MBA 2ndTrimester S.Y. 2019-2020Strategic Management – MBA 705 Prepared by: Antonino Arturo C Manahan, DBA; FRIBA; CPME
41
Activity 7
Implementing Strategies
- Orientation of modules 7 and 8, Lecture, and discussion
- Written exercise
- Presentation of output
- Noon break
- Presentation of output
- Synthesis of modules7 and 8
- End of session

Requirements:
- Read, analyze and answer all questions/items given.
- Write legibly and avoid any form of erasures and/or modification/s.
- Each item is equivalent to 5 points, passing points is 3.5

Questions for discussion:

1) Explain why strategy implementation is more difficult than strategy formulation.

Strategy formulation focuses on effectiveness, whereas strategy implementation focuses

on efficiency, effectiveness is to evaluate every process that makes your business run.
Efficiency is especially important when it comes to measuring the return-on-investment
of marketing and sales.

2) Explain why organizational structure is so important in strategy implementation.

Organizational structure deals with how your company, institution, or collaborative body is
organized. It considers formal structures like corporation formation (LLC, corporation, B-
Corp etc) and the workforce organization (hierarchy).

This is important to strategy because

1. Formal structure deals heavy with employee benefits and incentive structures. In
companies where employees are given shares, the structuring of the corporation
per SEC and IRS regulations is important. In corporations where top ranking
management become “partners” there can be delineation between “income”

MBA 2ndTrimester S.Y. 2019-2020Strategic Management – MBA 705 Prepared by: Antonino Arturo C Manahan, DBA; FRIBA; CPME
42
 partners and “equity” partners. This is extremely important with regards to talent
Acquisition and management. Quality talent want to make sure there is room to
grow professionally and financially: companies that have competitive rewards
packages must have formal structures to support that.
2. Workforce organization is more of what most people think about when they think
of organizational structure. It is your company's pecking order: who reports to
who, what departments do what, how much freedom is permitted, how accessible
is your direct supervisor, her supervisor’s supervisor, and so forth. This too, is
clearly coupled with strategy since it deals with the social processes of how things
get done. Structures that adequately support strategy mean that efficiency and
effectiveness are routinely achieved.

There are a number of factors that differentiate small-business operations from large-
business operations, one of which is the implementation of a formal organizational
structure. Organizational structure is important for any growing company to provide
guidance and clarity on specific human resource issues, such as managerial authority.
Small-business owners should begin thinking about a formal structure early in the growth
stage of their business.

3) Compare and contrast restructuring and reengineering.

Restructuring is concerned primarily with shareholder well-being rather than employee well-
being. In contrast, reengineering is concerned more with employee and customer well-being than
share- holder well-being

MBA 2ndTrimester S.Y. 2019-2020Strategic Management – MBA 705 Prepared by: Antonino Arturo C Manahan, DBA; FRIBA; CPME
43
4) Explain market segmentation and product positioning as strategy-implementation tools.

5) Diagram and label clearly a product-positioning map that includes six fast-food restaurant
chains. These are: 1. Wendy’s, 2. McDonald’s, 3. Burger King, 4. Taco Bell, 5. Jollibee, 6.
KFC.
Geared to kids

Variety of items
on menu: High

Geared to adults

6) Discuss procedures for determining the worth of a business.

When deciding to sell your business, it’s important to have an understanding of what
your business is worth as you enter the M&A process. Here are five common business
valuation methods that can assist you in determining the value of your business.

1. Asset Valuation

Your company’s assets include tangible and intangible items. Use the book or market
value of those assets to determine your business’s worth. Count all the cash, equipment,
inventory, real estate, stocks, options, patents, trademarks, and customer relationships as
you calculate the asset valuation for your business.

MBA 2ndTrimester S.Y. 2019-2020Strategic Management – MBA 705 Prepared by: Antonino Arturo C Manahan, DBA; FRIBA; CPME
44
 2. Historical Earnings Valuation

A business’s gross income, ability to repay debt, and capitalization of cash flow or
earnings determines its current value. If your business struggles to bring in enough
income to pay bills, its value drops. Conversely, repaying debt quickly and maintaining a
positive cash flow improves your business’s value. Use all of these factors as you
determine your business’s historical earnings valuation.

7) 3. Relative Valuation

With the relative valuation method, you determine how much a similar businesses would
bring if they were sold. It compares the value of your business’s assets to the value of
similar assets and gives you a reasonable asking price.

4. Future Maintainable Earnings Valuation

The profitability of your business in the future determines its value today, and you can
use the future maintainable earnings valuation method for business valuation when
profits are expected to remain stable. To calculate your business’s future maintainable
earnings valuation, evaluate its sales, expenses, profits, and gross profits from the past
three years. These figures help you predict the future and give your business a value
today.

5. Discount Cash Flow Valuation

If profits are not expected to remain stable in the future, use the discount cash flow
valuation method. It takes your business’s future net cash flows and discounts them to
present day values. With those figures, you know the discounted cash flow valuation of
your business and how much money your business assets are expected to make in the
future.

For the best and most accurate results, compare two or more methods so you’re prepared
for the merger and acquisition process and can confidently stand by the value of your
business.

MBA 2ndTrimester S.Y. 2019-2020Strategic Management – MBA 705 Prepared by: Antonino Arturo C Manahan, DBA; FRIBA; CPME
45
8) Explain why projected financial analysis is a central strategy-implementation tool.

9) Discuss the nature and role of research and development in strategy implementation.

The most important research and development strategy issue concerns

the relationship of R&D to corporate strategy. The more important
innovation is to the strategy of the organization, the more
implementation will require consideration of strategic issue in R&D.

Moreover, if R&D is part of an aggressive new product development

strategy, a series of decisions logically follow from such a link, including
funding levels, project selection decisions, and the structure for R&D. If
R&D is used primarily for process improvement, the decisions are more
conservative.

10) The most important research and development strategy issue

concerns the relationship of R&D to corporate strategy. The more
important innovation is to the strategy of the organization, the more
implementation will require consideration of strategic issue in R&D.
11) Moreover, if R&D is part of an aggressive new product
development strategy, a series of decisions logically follow from such a
link, including funding levels, project selection decisions, and the

MBA 2ndTrimester S.Y. 2019-2020Strategic Management – MBA 705 Prepared by: Antonino Arturo C Manahan, DBA; FRIBA; CPME
46
 structure for R&D. If R&D is used primarily for process improvement, the
decisions are more conservative.

12) Explain how management information systems can determine the success of strategy-
implementation efforts.

MBA 2ndTrimester S.Y. 2019-2020Strategic Management – MBA 705 Prepared by: Antonino Arturo C Manahan, DBA; FRIBA; CPME
47
 Module 8
Strategy Review, Evaluation, and Control

Module objectives

After studying this module, you should be able to do the following:

1) Explain why strategy evaluation is complex, sensitive, and yet essential for organizational
success.
2) Discuss the importance of contingency planning in strategy evaluation.
3) Discuss the role of auditing in strategy evaluation.
4) Discuss the Balanced Scorecard.

Questions for discussion:

1) Why has strategy evaluation become so important today?

Strategic evaluation is an important tool for assessing how well your business has
performed, relative to its goals. It's an important way to reflect on achievements and
shortcomings, and is also useful for reexamining the goals themselves, which may have
been set at a different time, under different circumstances.

MBA 2ndTrimester S.Y. 2019-2020Strategic Management – MBA 705 Prepared by: Antonino Arturo C Manahan, DBA; FRIBA; CPME
48
2) As owner of a local, independent supermarket, explain how you would evaluate the firm’s
strategy?
For small business such as a local supermarket, strategy evaluation is less formal than in
large organization. However, both qualitative and quantitative criteria should be used
evaluate the small supermarket’s strategies, because large supermarket stores that offer one-
stop shopping for virtually everything are proliferating across the country

3) Identify the type of organizations that may need to evaluate strategy more frequently than
others. Justify your choices.

4) Identify some key financial ratios that would be important in evaluating a bank’s strategy.

5) As owner of a chain of hardware stores, describe how you would approach contingency
planning.

MBA 2ndTrimester S.Y. 2019-2020Strategic Management – MBA 705 Prepared by: Antonino Arturo C Manahan, DBA; FRIBA; CPME
49
6) Explain and discuss the Balanced Scorecard.
The Balanced Scorecard is a management system. It’s a way of looking at your
organization that focuses on your big-picture strategic goals. It also helps you choose the
right things to measure so that you can reach those goals.

Traditionally, companies have judged their health by how much money they make.
Financial measures are definitely important, but they only give you part of the picture.
They focus on the short-term, and you’re trying to build an organization to stand the test
of time. The name “balanced scorecard” comes from the idea of looking at strategic
measures in addition to traditional financial measures to get a more “balanced” view of
performance.
It’s this focus on both high-level strategy and low-level measures that sets the balanced
scorecard apart from other performance management methodologies. It takes your big,
fuzzy strategic vision and breaks it down into specific, actionable steps to take on a day-
to-day basis.

MBA 2ndTrimester S.Y. 2019-2020Strategic Management – MBA 705 Prepared by: Antonino Arturo C Manahan, DBA; FRIBA; CPME
50
7) Why is the Balanced Scorecard an important topic both in devising objectives and in
evaluating strategies?
Balanced scorecard is system of management for strategic planning is used by the entities
so that
They can communicate the thing which they want to achieve.
They can prioritize the work
They can monitor where they have reached in terms of targets.
Align the daily works with everyone who are doing with a strategy.
So we can say that it helps to connect various elements of planning and management to
achieve the proposed goal.
Balanced scorecard helps in the optimum use of financial resources
It helps to manage the organization according to the stakeholders
It helps to view the efficiency of internal process of the organization
It views the capacity of the organization in terms of infrastructure, culture and overall
capacities.

MBA 2ndTrimester S.Y. 2019-2020Strategic Management – MBA 705 Prepared by: Antonino Arturo C Manahan, DBA; FRIBA; CPME
51
 8) Develop a Balanced Scorecard for a local fast food restaurant. Use the template given
below.

Area of Objectives Measure or Target Time Expectation Primary Responsibility

Customers
1.

2.

3.
Managers/Employees

1.

2.

3.
Operations/Processes

1.

2.

3.
Community/Social Responsibility

1.

2.

3.
Business Ethics/Natural Environment

1.

MBA 2ndTrimester S.Y. 2019-2020Strategic Management – MBA 705 Prepared by: Antonino Arturo C Manahan, DBA; FRIBA; CPME
52
2.

3.
Financial

1.

2.

3.

-End-

Appendix A
Strategic Management Format
(Refer to syllabus for details)

Approval Sheet
Title Page
Executive Summary
List of Tables
List of Figures

I. Introduction

II. Research Design and Methodology

III. Vision and Mission Statements

Current Vision and Mission Statement
Evaluation of Vision and Mission Statement
Revised Vision and Mission Statement
Recommendation on how to address Vison and Mission statement
to stakeholders.

IV. Macro Environment Analysis

A. General environment
Social, cultural, and demographic
Economic
Legal, political, & government
Technological
Global/International
B. Industry Analysis
Michael Porter’s Framework
Summary of Porter’s Framework
C. Competitive Profile Matrix
Company B situational analysis

MBA 2ndTrimester S.Y. 2019-2020Strategic Management – MBA 705 Prepared by: Antonino Arturo C Manahan, DBA; FRIBA; CPME
53
 Company C situational analysis
CPM Analysis and Interpretation
D. External Factor Evaluation (EFE) Matrix
External Strategic Issues

V. Micro Environment analysis

A. Internal Functional Audit
Marketing
Management
Finance/Accounting
Productions/Operations
Research & Development
Management Information Systems (MIS)
B. Internal Factor Evaluation (IFE) Matrix
Internal Strategic Issues
VI. Strategy Formulation
SWOT Matrix
SPACE Matrix
SPACE Matrix with diagram
BCG Matrix
IE Matrix
Grand Strategy Matrix
Summary of Matrix and Analysis
Quantitative Strategic Planning Matrix (QSPM)

VII. Objectives, Strategy Recommendation and Action Plans

A. Strategic and Financial Objectives
B. Recommended Business Strategies for
Marketing
Management
Operations
Finance/Accounting
MIS
C. Recommended Organizational Strategies
Performance Culture in the Organization
Specific Actions and Plans in Business Units
D. Strategy Map
E. Strategy Positioning
F. Financial Projections for years 2020 to 2022.
Assumptions
Income Statement
Balance Sheet
Cash-flow
G. Departmental Programs and Action Plans

VIII. Strategy Evaluation, Monitoring and Control

MBA 2ndTrimester S.Y. 2019-2020Strategic Management – MBA 705 Prepared by: Antonino Arturo C Manahan, DBA; FRIBA; CPME
54
 The Balance Scorecard
IX. Appendices
Bibliography/References
Curriculum Vitae

Appendix B
Scoring Sheet

MBA 2ndTrimester S.Y. 2019-2020Strategic Management – MBA 705 Prepared by: Antonino Arturo C Manahan, DBA; FRIBA; CPME
55
 Appendix C
Title Page

The Strategic Management for XYZ Corp.

For the Year 2019-2022

A Strategic Management Paper

Presented to
The Faculty of Institute of Accounts, Business, & Finance
Far Eastern University

In Partial Fulfillment
of the Requirements
for the Degree in
Master of Business Administration

By:

(Full-name of the student)

MBA 2ndTrimester S.Y. 2019-2020Strategic Management – MBA 705 Prepared by: Antonino Arturo C Manahan, DBA; FRIBA; CPME
56
 (Month & Year)

Appendix D
Approval Sheet Template

FAR EASTERN UNIVERSITY

Institute of Accounts, Business, & Finance
MASTER IN BUSINESS ADMINISTRATION

APPROVAL SHEET

In partial fulfillment of the requirements for the degree, MASTER IN BUSINESS

ADMINISTRATION, this strategic management paper for XYZ Corporation has been
prepared and submitted by MR. JUAN JIMENEZ, JR. is hereby recommended for admission
to the oral examination.

ANTONINO ARTURO C. MANAHAN, DBA; FRIBA; CPME

Adviser/Professor in-charge

Approved by the Tribunal at the Oral Examination conducted on 13th day of April 2018
with the grade of ______

THE EXAMINING TRIBUNAL

_________________________

MBA 2ndTrimester S.Y. 2019-2020Strategic Management – MBA 705 Prepared by: Antonino Arturo C Manahan, DBA; FRIBA; CPME
57
 Chairperson

_________________________ _________________________
Member Member

Accepted as partial fulfillment of the requirements for the degree, MASTER IN

BUSINESS ADMINISTRATION.

__________________________
Dean
References:

David, Fred R. & David, Forest R. (2015) Strategic Management Concepts and Cases 15th
Edition. Singapore. Pearson Education South Asia Pte Ltd.

Gallardo, Maybelle, Manahan, Antonino Arturo, Tendero, Ma. Pamela, et.al. (2018)
Entrepreneurship. Anvil Publishing, Inc. Mandaluyong City. Philippines

Manahan, Antonino Arturo C., Toribio, Mark Lester D. &Viray, Edilberto Jr., (2014) Principles
of Management (Simplified). National Bookstore. Philippines

Ryan, Tracy Tuten& Seifert Charles F. (2007) Instructor’s Resource Manual with Test Item File.
Saddle River, New Jersey. Pearson Prentice HallTM Pearson Education, Inc.

Thompson, Arthur A., Peteraft, Margaret A., Gamble, John E., et.al. (2012) Crafting and
Executing Strategy. New York, NY. McGraw-Hill Irwin Companies, Inc.

Viloria, Yves Jerome B. (2015) Strategic Management on Energy Development Corporation.

Unpublished Strategic Management. San Beda College – Manila. Mendiola, Philippines

MBA 2ndTrimester S.Y. 2019-2020Strategic Management – MBA 705 Prepared by: Antonino Arturo C Manahan, DBA; FRIBA; CPME
58