A STRATEGIC

MANAGEMENT
MODEL

Chapter 1
The Reality of Dynamism

• The 21st century epitomizes the reality

of dynamism.
• Changes and fluctuations are constantly
happening in the surrounding and these
actualities are characterized by the
occurrence of phenomenal situations,
continuous challenges, and triggering
forces that provoke corresponding
reactions.
The Reality of
Dynamism
• The certainty of change is
universal and this foregone
conclusion is largely experienced
by all nations and people.
• The current landscape of
competition is highly threatening
and daunting.
 ❑ It implies excitement and agitation.
❑ It occurs when product/service offerings and
technologies are so new that the standards
become unstable and competitive advantage is
not sustainable.
Hypercompetition ❑ It is a condition where strategic maneuverings
have escalated to bigger business exposure, more
sophisticated marketing positioning, aggressive
selling, and innovative products and services
❑ In a strict sense, hypercompetition is a situation
where both globalization and technology
collaborate
Strategic Management

It is a continuous process of strategy

creation. It involves strategic processes
like strategic analysis and
decision-making, strategy formulation,
strategy implementation, and strategy
control with the primary objectives of
achieving and maintaining better
alignment of corporate policies,
priorities and success.
 Strategic Analysis- consists of a systematic
evaluation of variables currently existing in the
external and internal environments.
Strategic Decision-Making- is deliberately
bringing together the right resources for the right
Strategic markets at the right time.
Management Strategy Formulation- is designing strategies on
the business and corporate levels.
Strategy Implementation- is employing these
crafted strategies to achieve organizational set
goals and objectives
Strategic Control- is the application of an
appropriate monitoring and feedback system.
 Strategic
Strategic Analysis
Intelligence

The Strategic
Management Strategic
Decision-Making
Strategic
Thinking

Process
Strategic Organizational
Formulation Competitiveness

Strategy Comparative
Implementation Advantage

Strategic Strategic
Control Performance
 Fig. 1.2 A Strategic Management Model

Organizational
Strategic Structure
Organizational Input Management Process ▪ Strategic Intelligence
▪ Management/ ▪ Strategic Analysis ▪ Strategic Thinking
Employees ▪ Strategic ▪ Organizational
▪ Financial Resources Decision-making Competitiveness
▪ Facilities/Equipment ▪ Strategy Formulation ▪ Comparative
▪ Infrastructures ▪ Strategy Advantage
▪ Processes Implementation ▪ Strategic
▪ Strategic Control Performance
Strategic Planning
Is defined as a continuous, repetitive, and
competitive process of setting the goals and
objectives that an organization aims to attain,
defining the means to achieve them and
assessing the best way to realize then in the
context of the prevailing environment while
measuring performance through set standards,
and periodically but continuously conducting
reassessments.
 Strategic Planning
Strategic planning exhibits the following
properties:
1. It generates the blueprint of what the
organization intends to accomplish.
2. The strategic plan presents the grand
scheme of the organization and outlines all
set activities.
3. It is the process of developing a strategic fit
between the organization’s goals and
capabilities in the context of changing
opportunities.
4. It is a process that involves carefully
delineated steps.
Strategic Planning
Continuation…..
5. It is proactive, in that it is written in the
context of anticipated future realities.
6. It is a philosophy because it involves a
dynamic way of conducting and managing an
organization
7. It links the organizational plan with
functional and operational plans.
8. It is intricately interwoven within defined
managerial functions.
9. It necessitates the leadership and support of
top management and at the same time employee
participation and commitment.
 ❑ Medium/long-range plan- prepared in the
context of the coming three to five ten or more
years.

Types of ❑ Annual/yearly plan- short-term; succinctly

describes the organization’s present situation,
Strategic Plans its goals and objectives, strategies, monitoring
mechanisms, and the budget for the years
ahead.
Steps in strategic
planning
1. Making a situation to ascertain where
the organization is today;
2. Stating the respective goals and
objectives of goals and objectives;
3. Delineating appropriate strategies to be
carried out in order to help direct the
organization to where it wants to be;
Steps in strategic
planning
4. Identifying and choosing the soundest
strategy to determine the best way for the
organization to be where it wants to be and
achieve its goals;
5. Monitoring the implementation of
strategies to measure performance;
6. Conducting periodic and continuous
reassessments.
 Is an inspirational statement of what
the organization hopes to achieve at
Organizational some point in the future. It is the
Vision image of what an organization
desires to achieve.
Mission Statement

It defines the current purpose of an

organization; it answers what the
organization does, for whom it is done,
and how it does what it does.
Organizational Goals
and Objectives

• To operationalize the mission statement,

organizational goals and objectives are
defined.
• Organizational goals are pursued to
make specified strategies succeed.
Organizational Goals and
Objectives
Goals have the following properties:
1. Goals provide organizations focus and
direction
2. Goals move organizations to action
3. Goals develop in organizations trait and
persistence
 Objective should possess the following
characteristics:
1. Objectives need to be clearly defined and
formulated, carefully chosen, specific and
Organizational definite.
Goals and 2. Objectives may be immediate or short-term.
Objectives 3. They need to be prioritized into a hierarchy of
objectives.
4. Objectives need to be realistic and attainable.
5. Objectives need to be measurable over time.
 Figure 1.3 Relationship of the Vision- Mission-Goals

Organizational
Goals and
Objectives

https://www.magnatestrategies.com/vision-mission-values
 Organizational Goal
Organizational Objective
Goals and Objective
1
4

Objectives Objective
Objective
2
3

Figure 1.4 Relationship between organizational Goal and

Objectives
 According to Peter Drucker
Organizational (2008), objectives fall into eight
Goals and major classifications:
Objectives
• Market Standing
• Innovation
• Human resources
• Financial resources
• Physical resources
• Productivity
• Social responsibility
• Profit requirements
 Values
are inherent roots of motivation within an
individual, an organization, a community, or a
nation.
Are generally exhibited in two different ways,
namely, beliefs and attitudes.
Value and
Value System
Value System Is characteristically broader in scope; aside from
values, it includes other variables such as the
organization’s dreams, aspirations, interests,
expectations, philosophies, as well as leadership
and management styles and ethical practices.
 Value System

Value and Value Interests

Values
System
Dreams and Leadership and
Aspirations Management Styles

Philosophies Ethical Practices

Expectations

Fig. 1.5 Value System of an Organization

 Organizational climate- is often defined as the
regular and repetitive patterns of attitudes and
behavior exhibited by employees of an
organization

Organizational
Organizational Culture- denotes a wide range of
Climate and social phenomena, including an organization’s
Culture customary dress, language, behavior, beliefs,
values, symbols of status and authority, myths,
organization’s character and norms. (Scott et
al.2003)
END……..

Reference:
Strategic Management
made simple, Felina C.
Young, 2015