SUMMARY OF SESSION 02

STRATEGIC MÂNGEMENT COURSE

I. Basic information
o Group number: 02.
o Number of members: 9 members.
o Group’s name: Cửu Long Phát Tài.
o Group’s slogan: “Cửu Long Dẫn Lối/Chiến Lược Vững Bền”.
o Group members’ information is as follow:

No. Members’ full name Students’ ID

1 Bùi Thị Như Quỳnh (nhóm trưởng) 11236763

2 Phạm Hải Ninh 11235920

3 Đinh Phương Uyên 11236973

4 Phạm Lê Phương Linh 11232013

5 Đào Thu Ngân 11233890

6 Trần Khánh Linh 11230349

7 Nguyễn Anh Thư 11232523

8 Nguyễn Ngọc Hà 11232624

9 Trịnh Thị Hồng Vân 11230166

II. Content of session 2 – Overview of strategic management

Due to the trend of internationalization along with the increasing scarcity of
resources, the rapid development of technology, the changing needs of the market, the
business environment is becoming more and more complex and constantly changing.
With such a business environment, businesses need to have the right business strategy to
be able to seize opportunities, avoid risks, and ensure stable and sustainable development
of the business. To clearly see the content and role of strategy and strategic management,
we have learnt an overview of strategy, strategic management, its origin and basic
characteristics of strategy.
1. Concept, characteristics, and role of strategy in enterprises
Origin of strategy and concept of business strategy
“Strategy” is a term derived from the Greek word “Strategos” in military, modern
military theorist Clawzevit also said: “Military strategy is the art of commanding in a
dominant position.” A publication of the Larous dictionary considers: strategy is the art
of commanding means to win.
Since the 60s of the 20th century, strategy has been applied to the business field
and the term “Business Strategy” was born. The concept of business strategy has
gradually developed over time and people approach it in many different ways.
Regardless of the approach, the essence of business strategy is still to outline
the future image of the enterprise in the field of operation and exploitation capabilities. In
this understanding, the term business strategy is used in the 3 most common meanings:
o Establish long-term goals of the business.
o Propose general action programs.
o Select action plans, deploy and allocate resources to achieve that goal.
Nowadays, the term strategy has been used quite commonly in Vietnam in many
fields at both macro and micro levels. In the business scope, we often encounter the terms
business strategy or corporate strategy, strategic management... The appearance of these
terms is not simply a borrowing. Strategic concepts all originate from the objective
necessity in the management practices of enterprises in the current market mechanism.
The necessity of business strategy:
(1) Globalization has increased economic interdependence among nations.
(2) Competition is becoming increasingly fierce.
(3) The present era is the era of information and telecommunications.
(4) The dissemination and spread of technology.
(5) The volume of knowledge is increasing rapidly.
(6) Resources are gradually depleting.

2. Basic characteristics of strategy

Although there are many different views and approaches to the concept of
strategy, the basic characteristics of strategy in business are relatively unified.
 The basic characteristics are:
(1) The strategy clearly defines the basic goals and business directions to be achieved
in each period and is fully implemented in all areas of the enterprise's management
activities.
(2) Business strategy only outlines the long-term operational directions of the
enterprise, the framework of the enterprise's future operations. It is only
directional, but in practice, business operations require combining strategic goals
with economic goals, considering the reasonableness and adjusting to suit the
business environment
(3) Business strategy is built on the basis of the competitive advantages of the
enterprise to ensure maximum mobilization and good combination with the
exploitation and use of resources.
(4) Business strategy is reflected in a continuous process from building, to organizing,
implementing, evaluating, testing and adjusting the strategy.
(5) Business strategy always carries the idea of attacking to win in competition.
Business strategy is formed and implemented on the basis of discovering and
taking advantage of business opportunities and comparative advantages of the
enterprise to achieve high business efficiency.
(6) All important strategic decisions are focused on the senior management group to
ensure the accuracy of long-term decisions and information confidentiality in
competition.

3. The classification by the level of proactiveness in Strategic Management

Strategic management can be categorized based on the level of proactiveness
an organization exhibits in its approach to planning and execution. These levels include:
Reactive Management: This approach focuses on responding to external
changes and challenges as they arise, without prior preparation or long-term planning.
Organizations using this strategy often prioritize short-term problem-solving over
proactive initiatives.
Example: A small retail business suddenly starts offering online delivery services only
after losing significant customers to competitors during the COVID-19 pandemic.

Adaptive Management: In this approach, organizations monitor external

environments and adjust their strategies accordingly. It involves a balance between
reacting to immediate needs and planning for anticipated changes, allowing
businesses to remain flexible and responsive.
 Example: A clothing company monitors fashion trends and adjusts its product lines
seasonally to meet changing consumer preferences, such as incorporating sustainable
fabrics in response to environmental concerns.

Proactive Management: This level emphasizes anticipating future trends,

challenges, and opportunities, and preparing strategic plans in advance. Proactive
organizations often lead innovation and set industry standards, positioning themselves
for long-term success.
Example: Tesla invests heavily in research and development of electric vehicles and
autonomous driving technology well before market demand peaks, establishing itself as a
leader in the industry.

Interactive Management: This approach actively engages with stakeholders,

both internal and external, to shape strategies. It involves continuous communication,
collaboration, and feedback to refine and align organizational goals with the dynamic.
Example: The image of upstream flow.

4. The key factors in setting a strategy

QUESTION: Think about the picture and come up with four related words?

When discussing strategic management on a personal level, understanding and

addressing the four key factors – environment, context, internal elements, and action –
is crucial. These elements are interconnected and ensure that your personal strategy is not
only well-constructed but also practical, adaptable, and effective. Below is an in-depth
exploration of each factor and why it is indispensable in personal strategic planning.
Environment
 The environment refers to the external circumstances and factors that
influence your ability to set and achieve goals. It includes social, economic, cultural, and
technological conditions that shape opportunities and constraints. External factors are
often beyond your control, yet they significantly impact your decisions. For instance, a
person living in a rapidly evolving technological environment needs to adapt by
continually upgrading their skills to remain competitive. Similarly, societal norms or
economic trends might dictate what goals are realistic or desirable at any given time.
Example: Imagine you are planning a career switch to a field like data science. Understanding
the environment – such as job market trends, demand for specific skills, or the availability of
online learning platforms – enables you to align your personal strategy with opportunities in the
external world.

Context
Context is the specific set of circumstances or conditions in which you find
yourself at a given moment. It includes factors like your financial situation, time
availability, current priorities, and life stage. Context grounds your strategy in the here
and now. It ensures that your plans are not only aspirational but also realistic. For
example, a person working full-time while raising a family might not have the bandwidth
to pursue a full-time degree, even if it aligns with their goals.
Example: If you’re considering starting your own business, your context might include your
savings, market connections, and current obligations. Someone with limited financial resources
might begin with a side hustle rather than immediately leaving a stable job.

Internal Elements
Context requires you to honestly evaluate your current situation and its
limitations. It teaches humility and patience, as it reminds you that while ambition is
vital, the timing and method of pursuing your goals must align with your circumstances.
By understanding your context, you avoid overcommitting or setting yourself up for
failure. Internal elements include your personality traits, values, skills, motivations, and
emotional resilience. These factors define who you are and how you approach challenges,
making them foundational to any personal strategy.
Example: If you are a highly empathetic person, a career in counseling or social work might
align better with your values and strengths than a high-pressure sales role. Similarly,
recognizing your limitations – like a tendency to procrastinate – allows you to build strategies
that counteract those tendencies, such as setting deadlines or working in accountability groups .

Action
 Action is the process of putting your plans into motion. It involves setting
clear objectives, taking consistent steps toward them, and adjusting your approach based
on feedback and results.
Example: If your goal is to become fluent in a new language, you might start by enrolling in a
structured course, practicing daily for 30 minutes, and seeking opportunities for conversation.
Tracking your progress regularly ensures that your efforts are aligned with your goal, and
adjusting your methods (e.g., switching from apps to in-person practice) keeps your strategy
effective.

Ultimately, these four factors together form a comprehensive framework that

allows you to navigate life’s complexities with clarity, adaptability, and purpose.
Strategic personal management is not just about achieving goals; it’s about creating a
meaningful and sustainable path toward personal fulfillment.
5. An mini exercise on strategic perspective
QUESTION: Look at the picture and answer who are you and what are you doing?

 THE SUGGESTED ANSWER: “I am the strongest person in the team, so I stand

at the back to conserve energy and provide the strongest pulling force, helping the
whole team maintain strength and complete the task, because I understand that
this position will optimize the team’s abilities in challenging situations and ensure
that we overcome the challenge effectively.”
ANALYSIS:
(1) Subject of the action – “I am the strongest person in the team...”
(2) Purpose of the action – “To conserve energy and provide the strongest pulling
force, helping the whole team maintain strength and complete the task...”
 (3) Reason or rationale for the action – “Because I understand that this position
will optimize the team’s abilities in challenging situations...”
(4) Consequences of the action – “Ensure that we overcome the challenge
effectively.”

When formulating a strategy, these four elements help you build and execute
a plan in a systematic and effective way:
Subject of the Action (The sentence can start with “I AM…”, “WE
ARE…”)
The subject refers to the individual or group responsible for the action and
strategy being executed. In strategic planning, clearly defining the subject is crucial
because they are the ones who make decisions and implement the plans. The subject
could be an individual (such as a leader) or a collective (like a team or organization). This
person or group takes responsibility for creating the strategy, deciding what actions to
take, and ensuring the strategy aligns with long-term goals.
Purpose of the Action (The sentence has the structure likes “S + V+ …
TO…”)
The purpose is the core reason for the strategy, reflecting what you aim to
achieve through implementing it. The purpose should be clear, specific, and measurable.
Setting clear goals provides strong motivation and helps identify practical steps for
executing the strategy effectively.
The goal is not only to achieve financial success (revenue growth), but also to
improve productivity and effectiveness within the team, ensuring they can work
efficiently and sustainably.
Reason or rationale for the action
This refers to the reason why this particular strategy or action was chosen. The
rationale is based on specific factors such as analyzing the current situation, available
resources, and external opportunities and threats. The decision may also be informed by
research, data, or past experiences to ensure that the action is feasible and optimal for
achieving the desired results.
The decision to choose this strategy is driven by a deep understanding of the
team's strengths and the external challenges (such as industry competition or market
changes). The rationale reflects a key element in strategy formulation: adapting to the
environment and seizing opportunities when possible.
 Consequences of the action
The consequences refer to the effects or outcomes of the action, not only for
the individual but also for the group or organization. This is an essential part of
evaluating the effectiveness of the strategy, as it shows whether the action will lead to
success or if any adjustments are needed. Understanding the consequences helps assess
whether the strategy is working and provides feedback
for future improvements.
The consequence of this action can be seen
from two perspectives. First, it will bring tangible
results, such as goal achievement (increased revenue,
improved productivity, etc.). Second, it demonstrates the
sustainability of the strategy, strengthening the team’s
trust and building a foundation for long-term success.
The creativity in strategy management
Moreover, when looking at this picture, we
may think that it is just about the tug-of-war game
between two teams. However, if we look at the same
photo from a different perspective, as if it were an image
of a mountain climber, we gain a completely different
understanding of strategy. This picture can also be an
image of a group of people testing the durability of a
rubber band. Therefore, this transformation symbolizes
the creative thinking in strategic management, where a strategy is not fixed to a single
approach but can be adapted and flexible to suit specific situations.
Thinking about a strategy can be compared to a long journey with many
obstacles and opportunities to overcome. In the context of tug-of-war, the strategy
focuses on cooperation and dividing the task efficiently among team members. Each
individual plays a specific role, and the success of the team relies on synchronized efforts
and mutual support. This is a collective strategy, where every member must persist,
coordinate, and unite to achieve the common goal. In organizations, this type of strategy
reflects a team-based work model, where members share responsibility and support one
another to accomplish a task.
However, when we shift the image to that of a mountain climber, we see an
entirely different side of strategy. Climbing a mountain is not a group effort but an
individual challenge filled with obstacles. A climber must confront these challenges
alone, adjusting their strategy with every step and being prepared to deal with unforeseen
difficulties. This symbolizes long-term strategies that require patience and a high level of
self-reliance. Leaders and strategic managers in such situations must make independent,
creative decisions and adjust their strategies to handle dynamic, evolving circumstances.
In the context of strategic management, this creative way of looking at
strategies goes beyond merely selecting one approach. It highlights the ability to
transform strategies depending on specific circumstances. Just like in the example of tug-
of-war, one can see a strategy focused on collaboration and division of labor, but when
we "rotate" the image to visualize a mountain climber, we realize that sometimes a
strategy requires independence, adaptability, and perseverance to overcome personal
challenges.
This shows that in strategic management, there is no fixed strategy or one-
size-fits-all approach. Strategic managers must be flexible and creative in applying
strategies suited to different situations. When facing challenges that require cooperation
between departments or individuals in an organization, a collective strategy (like in tug-
of-war) works best. But when dealing with more complex issues that demand self-
reliance and persistence, a personalized strategy (like mountain climbing) is the optimal
choice. This is the essence of creativity in applying strategy and the ability to view
problems from multiple perspectives.
Ultimately, creativity in strategic management comes not only from the ability
to develop a strategy but also from understanding that strategy is a flexible process, one
that can change and adapt depending on the context and real-world conditions. Leaders
need not only to have a strategic vision but also the ability to skillfully adapt strategies to
help their organization overcome challenges and reach its ultimate goal.
6. The role of business strategy
(1) Business strategy helps businesses clearly identify their future goals and directions
as a guideline for all business activities.
(2) Business strategy helps businesses grasp and take advantage of business
opportunities, while proactively dealing with risks and threats in the business
marketplace.
(3) Business strategy contributes to improving the efficiency of resource use,
strengthening the position of the enterprise, ensuring continuous and sustainable
development of the enterprise.
(4) Business strategy creates a solid foundation for businesses to make decisions that
are appropriate to market fluctuations.