PRESENTATION

OVERVIEW OF
STRATEGIC
MANAGEMENT
 TOPICS
• The Nature of Strategic Management
• Definition and Key Terms in Strategic
Management
• A Strategic Management Model
• Benefits of Strategic Management
• Pitfalls in Strategic Planning
• Guidelines for Effective Strategic Planning
Process
 THE NATURE OF
STRATEGIC
MANAGEMENT
LEARNING OBJECTIVES

1. Discuss the Strategic Management

Process
2. Differentiate Strategic Management
and Strategic Planning
3. Describe the three (3) Fundamental
Stages of Strategic Management
“Strategy is typically a higher level, broad goal, without a
lot specifics. It is long term in nature. It provides the
direction that an organization wants to move toward to be
more successful.”

—Kennedy (2020)
 Defining Strategic Management

“Strategic Management can be defined as the art and

science of formulating, implementing, and evaluating
cross-functional decisions that enable an organization to
achieve its objectives.”
—Fred David (2015)
 Strategic Management vs.
Strategic Planning

Strategic Management is used to refer to strategy

formulation, implementation and evaluation while
Strategic planning refers only to strategy formulation.
 Strategic Management vs.
Strategic Planning

The purpose of strategic management is to exploit and create

new and different opportunities for tomorrow while Long-
range planning tries to optimize for tomorrow the trends of
today.
 3 Stages of Strategic
Management

Strategy Strategy Strategy

Formulation Implementation Evaluation
 Strategy Formulation Stage

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.
 Strategy Implementation Stage

Strategy implementation is often called the “action

stage” of strategic management. It requires a firm to
establish annual objectives, devise policies, motivate
employees, and allocate resources so that formulated
strategies can be executed.
 Strategy Evaluation Stage
Strategy evaluation is the final stage in strategic management.
Three fundamental strategy-evaluation activities are (1)
reviewing external and internal factors that are the bases for
current strategies, (2) measuring performance, and (3) taking
corrective actions.
 DEFINITION AND KEY
TERMS OF STRATEGIC
MANAGEMENT
LEARNING OBJECTIVES

• Define the different terms in strategic

management
 WHAT IS STRATEGIC MANAGEMENT?
• According to Tucci, L. (2022), Strategic management is the ongoing
planning, monitoring, analysis and assessment of all necessities an
organization needs to meet its goals and objectives.
• To Yousuf, M. (2022), Strategic Management can be define as an art
and science of formulating, implementing, and evaluating cross-
functional decisions that enable an organization to achieve its
objectives.
 10 KEY TERMS IN STRATEGIC MANAGEMENT
1. COMPARATIVE ADVANTAGE- It is an economy’s ability to produce a particular
good or service at a lower opportunity cost than its trading partners.
2. COMPETITIVE ADVANTAGE- It refers to any activity a firm does well compared
to activities done by rival firms, or any resource a firm possesses that rival firms desire.
3. STRATEGISTS-It refers to individuals most responsible for the success or failure of
an organization. They help an organization gather, analyze, and organize information.
4. CHIEF STRATEGY OFFICERS (CSOs)-It refers to a position given to the
company’s senior executives who hold the top strategy role.
5. VISION AND MISSION STATEMENTS- A VISION STATEMENT answers the
question, “What do we want to become?” On the other hand, MISSION STATEMENTS
are “enduring statements of purpose that distinguish one business from other similar
firms”.
 10 KEY TERMS IN STRATEGIC MANAGEMENT
6. EXTERNAL OPPORTUNITIES AND THREATS- Refers 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.
7. INTERNAL STRENGHTS AND WEAKNESSES- It refers to an organization’s
controllable activities. It identifies and evaluates organizational strengths and weaknesses in
the functional areas of a business, which is an essential strategic-management activity.
8. LONG-TERM OBJECTIVES- Refers to objectives more than a year. Objectives can be
defined as specific results that an organization seeks to achieve in pursuing its basic mission.
9. ANNUAL OBJECTIVES- It refers to short-term milestones that organizations must achieve
to reach their long-term objectives.
10. POLICIES- It is the means by which annual objectives will be achieved.
 A STRATEGIC
MANAGEMENT MODEL
LEARNING OBJECTIVES

• Define vision, mission and their importance

• Establish organizational direction

• Formulate and implement organization strategy

• Evaluate and control strategy

 WHAT IS STRATEGIC MANAGEMENT MODEL?
A Strategic Management model is a framework or approach used by organizations
to make strategic decisions and plan for the future.

STEPS IN MAKING A STRATEGIC MANAGEMENT MODEL

1. Strategy Formulation
2. Strategy Implementation
3. Strategy Evaluation
STEPS IN MAKING A STRATEGIC MANAGEMENT MODEL
STRATEGY FORMULATION
Strategy Formulation is the process of using available knowledge to document the
intended direction of a business and the actionable steps to achieve its goals.

STRATEGY IMPLEMENTATION
Strategy Implementations the process of executing plans and strategies or the action
stage.

STRATEGY EVALUATION
Strategy Evaluation is the process of determining the effectiveness of a given strategy in
achieving the organizational objectives and taking corrective action wherever required.
STEPS IN MAKING A STRATEGIC MANAGEMENT MODEL
STRATEGY EVALUATION
The three (3) fundamental strategy- evaluation activities are:
1. Examining the underlying bases of a firm’s strategy
2. Comparing expected results with actual results
3. Taking corrective actions to ensure that performance conforms to
plans.
 • A strategic vision
statements concerns a IMPORTANCE OF MISSION
firm's future business STATEMENT
path. • Provides the organization
• It answer the question, "
Where we are going?"
ION with a clear and effective

S
guide for making decisions.

VI
ION
S
IMPORTANCE OF VISION
STATEMENT
IS
• Ensures that all the
decisions made are M • A mission statement
talks about the answers
properly aligned with to the question- "Who we
what the organization are and What we do?
hopes to achieve
STRATEGIC MANAGEMENT MODEL EXAMPLES
STRATEGIC MANAGEMENT MODELS
A number of authors have profounded a variety of models identifying a series of
tasks or activities that need to be done to put forward the idea of strategic management.
Among these models are those espoused by Wheelen and Hunger (2004), Thompson
and Strickland (1999), F.R. David (1998), Rayport and Jaworski (2004), and Wright,
Kroll, and Parnell (1996), etc. Briefly, these models are presented and discussed
hereunder.
STRATEGIC MANAGEMENT MODEL EXAMPLES
1. Strategic Management Model by Wright, Kroll, 2. The Five Tasks of Strategic Management-
and Parnell (1996) Thompson and Strickland Model (1999)
STRATEGIC MANAGEMENT MODEL EXAMPLES
3. Comprehensive Strategic Management- 4. Wheelen And Hunger Strategic Management
F.R. David Model Model (Adapted from Wheelen and Hunger, 2004)
STRATEGIC MANAGEMENT MODEL EXAMPLES
5. Classical Framework of strategic management 6. Strategic Management Process by Pitts and Lei
(Rayport and Jaworski, 2004- with Modification) (2000)
BENEFITS OF STRATEGIC
MANAGEMENT
LEARNING OBJECTIVES

• Identify financial benefits of strategic Management

• Identify the reasons why some firms do no strategic

Mangement
 Benefits of Strategic Management
According to Wright, Kroll and Parnel (1996)- embracing
the ideas of strategic management and doing it well does not
only stand to benefits business owners but the industry and
the society at large, as it factors in the internal and
environmental considerations in light of offering products
and services to satisfy target markets.
Financial Benefits

Research indicates that organizations using strategic-management

concepts are more profitable and successful than those do not. Below
are the financial benefits of businesses who are using Strategic
Planning.
1. Profitability
2. Sales
3. Productivity
Nonfinancial Benefits

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.
Greenley stated that strategic management offers the
following benefits:
1. It allows for identification, prioritization, and exploitation of opportunities.
2. It provides an objective view of management problems.
3. It represents a framework for improved coordination and control of
activities.
4. It minimizes the effects of adverse conditions and changes.
5. It allows major decisions to better support established objectives.
6. It allows more effective allocation of time and resources to identified
opportunities.
7. It allows fewer resources and less time to be devoted to correcting
erroneous or ad hoc decisions.
Greenley stated that strategic management offers the
following benefits:

8. It creates a framework for internal communication among personnel.

9. It helps integrate the behaviour of individuals into a total effort.
10. It provides a basis for clarifying individual responsibilities.
11. It encourages forward thinking.
12. It provides a cooperative, integrated, and enthusiastic approach to
tackling problems and opportunities.
13. It encourages a favourable attitude toward change.
14. It gives a degree of discipline and formality to the management of a
business.
 Wheelen and Hunger (2004)

 Clearer sense of strategic vision for the firm

 Shaper focus on what is strategically important, and
 Improved understanding of a rapidly changing
environment.
 Why Some Firms Do No Strategic
Planning
• Lack of knowledge or experience in strategic planning
• Poor reward structures
• Firefighting
• Waste of time
• Too expensive
• Fear of failure
• Prior bad experience
• Fear of the unknown
• Lack of consensus
PITFALLS IN STRATEGIC
MANAGEMENT
LEARNING OBJECTIVES

• Identify the pitfalls in strategic planning and

guidelines for effective strategic management

WHAT IS PITFALL?

A problem, used especially about problems that may

happen in the future.
INTRODUCTION

For business owners and leaders, strategic planning is the time

to reflect on the past year, examine the competitive landscape,
explore possible strategic initiatives, and set company goals. But
the idea of establishing strategic planning goals can feel
overwhelming – especially if you don’t have a good process and
method for facilitation. So, what does a good process look like
and what pitfalls should you avoid? 
A good strategic planning process
will help you:

1. Align company goals with your company mission and vision

2. Define steps to achieve company goals
3. Assign responsibility and timelines
4. Track progress toward short-term and long-term goals
Pitfalls to avoid in strategic planning
Strategic Planning can be a powerful process if done well. It can
be the difference between driving straight to your business goals or
taking a long, winding road to get there. As you look forward,
consider these common pitfalls:
1. The plan is too complex
Operational Plans essentially bring your strategic plan to life and
map out the where’s, how’s, why’s and when’s required to ensure
successful plan implementation.
 Pitfalls to avoid in strategic planning
2. The plan doesn’t address and resolve current problems
planning for future can be exhilarating, but sometimes the present
is the more pressing issue.

3. The plan is actually just a budget

If your planning session is little more than a discussion of how to
fund current projects based on your existing resources, you’re not
really breaking new strategic ground, you’re simply just updating
the budget.
 Pitfalls to avoid in strategic planning
4. The plan doesn’t emphasize accountability
Before the plan is implemented, you need to ensure that everyone
is on the same page and willing to make the necessary changes for
success and align with your strategic plan.

5. A reliance on spreadsheets is slowing you down

Everyone knows how to use Excel, but that doesn’t mean it’s a
complete reporting and business intelligence solution.
 GUIDELINES FOR
EFFECTIVE STRATEGIC
PLANNING PROCESS
LEARNING OBJECTIVES

• Identify the guidelines for effective strategic

planning process.
GUIDELINES FOR EFFECTIVE STRATEGIC PLANNING

1. It should be a people process more than a paper process.

2. It should be a learning process for all managers and employees.
3. It should be words supported by numbers rather than numbers supported
by words.
4. It should be simple and non-routine. Strategic planning process must
keep simple and non-routine as possible
5. It should vary assignments, team memberships, meeting formats, and
even the planning calendar
6. It should challenge the assumptions underlying the current corporate
strategy.
GUIDELINES FOR EFFECTIVE STRATEGIC PLANNING

7. It should welcome bad news.

8. It should welcome open-mindedness and a spirit of inquiry and
learning.
9. It should not be a bureaucratic mechanism.
10. It should not become ritualistic, stilted, or orchestrated.
11. It should not be too formal, predictable or rigid.
12. It should not contain jargon or arcane planning language.
GUIDELINES FOR EFFECTIVE STRATEGIC PLANNING

13. It should not be a formal system for control.

14. It should not disregard qualitative information.
15. It should not be controlled by “technicians”.
16. Do not pursue too many strategies at once.
17. Continually strengthen the “good ethics is good business”
policy.
THANK
YOU
TOPIC 1: THE NATURE OF STRATEGIC MANAGEMENT

References:
Chyba. (n.d.). The Nature of Strategic Management. Retrieved on February 7, 2023 from
https://elearning.tul.cz/pluginfile.php/542998/mod_folder/content/0/1+-+The+Nature+of
+Strategic+Management_PDF.pdf?forcedownload=1

Dharmarajan, Ashwini (2016). Strategic Management- A Dynamic Process. Retrieved on

February 6, 2023 from
https://www.linkedin.com/pulse/strategic-management-dynamic-process-ashiwini-dhar
marajan

Kennedy, Reed (2020). Strategic Management. Retrieved on February 6, 2023 from

https://doi.org/10.21061
TOPIC 2: DEFINITION AND KEY TERMS IN STRATEGIC
MANAGEMENT

References:
Tucci, Linda (2022). IT Strategy- Definition Of Strategic Management . Retrieve on
February 8,2023 from https://www.techtarget.com/searchcio/definition/strategic-
management?

Key Terms In Strategic Mangement. (2021, May 15). Retrieved from HKT Consultants:
https://phantran.net/key-terms-in-strategic-management/

Udanga, Generoso. Strategic Management; Work text for Students(2021).

 TOPIC 3: A STRATEGIC MANAGEMENT MODEL

References:

N.A. Orcullo,Jr.,Ph.D. (2009, March). Fundamentals of Strategic Management.

Udanga, Generoso. Strategic Management; Work text for Students(2021).

 TOPIC 4: BENEFITS OF STRATEGIC MANAGEMENT

References:

N.A. Orcullo,Jr.,Ph.D. (2009, March). Fundamentals of Strategic Management.

Udanga, Generoso. Strategic Management; Work text for Students(2021).

 TOPIC 5: PITFALLS STRATEGIC PLANNING

References:

GreatAmerica. (2023, January 9) Four Common Pitfalls in Strategic Planning. Retrieve on

February 08,2023 from;

5 Strategic Planning Pitfalls and How to Avoid Them. Retrieve on February 10, 2023 from;
https://envisio.com/blog/5-strategic-planning-pitfalls/

Udanga, Generoso. Strategic Management; Work text for Students(2021).

 TOPIC 3: GUIDELINES FOR EFFECTIVE STRATEGIC
PLANNING PROCESS

References:

Udanga, Generoso. Strategic Management; Work text for Students(2021).

 GROUP 1
REPORTERS

SHYLA P. MORENO
TOPIC 2: Definition
and Key Terms in
Strategic Management

JOAN M. NERVIOL KATELYN M. PALMA

TOPIC 1: The Nature of TOPIC 3: A Strategic
Strategic Management Management Model
 GROUP 1
REPORTERS

JESABEL C. ROGELIO
TOPIC 5: Pitfalls in
Strategic Planning

VANESSA MAE R. JOVELYN D. VIZARRA

VIZARRA
TOPIC 4: Benefits of TOPIC 6: Guidelines for
Strategic Management Effective Strategic
Planning Process