Week 2

Chapter-1

Strategic Management
The Challenge of the new century

Strategic management is a comprehensive and systematic approach to managing an

organization's resources and activities in order to achieve its long-term goals and objectives. It
involves a series of processes that guide the organization in making decisions, allocating resources,
and adapting to its external environment. The overarching purpose of strategic management is to
create and sustain a competitive advantage, ensuring the organization's long-term success and
viability.

Strategic management is the dynamic process that is full of commitment to decisions and
actions to deliver strategic competencies to achieve the desired results in terms of corporate
profitability and growth.

The Strategic competitiveness is the result of the international and external analyses of the
corporate environment for the formulation of the strategy and action plans that are directed to set
goals and targets.

Effective strategic actions are prerequisites to achieving the desired corporate profit goals
and above average return on investment.

The strategic process is used to match the ever-changing market environment and
competitive structure of the business involving material and production resources.
The changing technology and resources capabilities of companies are competing with the local and
the global market for greater market share . The desired outcome is the product of carefully
conceived plan of action and concerted strategy formulation in the context of its corporate objective.

Strategic Vision and Intent

Strategic vision is the advantage of the firm’s resources and core competencies to
accomplish its goals in the competitive environment.

Strategic vision and intent exist when all employees and its executives are committed to the
pursuit of a specific performance criterion. Strategic vision provides the manpower resource with the
commitment to remain the best in the industrial world and unseat the best in their ranks competitors.
It is the power to effectively and fervently believe that they produce and market quality products as
they focus their firm’s ability to outperform their industry competitors.

Strategic Vision:

What it is: Think of it like a big dream for a company or organization.

What it does: Describes what the organization wants to become in the future. It's like a picture of
where they see themselves years down the line.
Example: "Our dream is to be the very best in creating new and amazing things that help people in
their daily lives."

Intent:
What it is: Imagine it as a promise or a plan for how to make that big dream come true.
What it does: Explains how the organization is going to work to achieve its vision. It outlines the
important things they will focus on and how they will do them.
Example: "We promise to always come up with new ideas, make our customers really happy, and
make sure everything we do is good for the world."
Intent:
1. Innovation Leadership: We are committed to pushing the boundaries of technological innovation.
Our intent is to consistently lead the market by introducing groundbreaking solutions that redefine
industries and enhance the way people live and work.

2. Customer-Centric Focus: Our vision is grounded in a deep understanding of our customers' needs.
We intend to foster strong and lasting relationships by delivering products and services that not only
meet but exceed their expectations, anticipating future needs through proactive engagement.

3. Global Impact: We aspire to make a positive global impact by leveraging technology for the greater
good. Our intent is to address societal challenges, contribute to sustainable development, and bridge
digital divides, ensuring the benefits of our advancements are accessible to all.

4. Talent Development: Our vision includes being recognized as a magnet for top talent. We intend to
cultivate a culture of continuous learning and collaboration, providing our employees with
opportunities to grow personally and professionally as they contribute to our collective success.

5. Operational Excellence: We are dedicated to operational excellence in every aspect of our business.
Our intent is to optimize efficiency, streamline processes, and uphold the highest standards of quality
and reliability, ensuring the long-term success of our organization.

6. Ethical and Responsible Practices: Our vision includes being a model for ethical and responsible
business practices. We intend to conduct our operations with integrity, embracing sustainability and
corporate social responsibility to create value not just for our shareholders, but for society as a whole.

Strategic Vision and Intent:

So, in simple terms, a "Strategic Vision and Intent" is like a BIG GOAL (vision) and a PLAN
(intent) for how a company wants to grow and do good things in the future. It's a bit like saying, "This
is our dream, and here's how we're going to make it happen!"

STRATEGIC MISSION
A strategic mission is a concise statement that outlines the fundamental purpose and long-
term objectives of an organization. It serves as a guide for decision-making, goal-setting, and resource
allocation. A well-defined strategic mission helps align the efforts of individuals within an organization
toward a common vision and direction.

The strategic mission serves as a foundation for developing strategies and action plans. It
provides a road map for the organization's leaders to make decisions that are in alignment with its
overall purpose and goals. Regular review and refinement of the strategic mission are essential to
ensure that it remains relevant in a dynamic business environment.

Key elements typically included in a strategic mission statement are:

Purpose: Clearly articulates the reason for the organization's existence, answering the question of
why it exists and what it hopes to achieve.

Values: Communicates the core beliefs and principles that guide the organization's behavior and
decision-making. Values are the ethical foundation of the organization.

Vision: Describes the desired future state or the long-term aspirations of the organization. It provides
a compelling image of what success looks like.

Goals and Objectives: Outlines the high-level, overarching goals and objectives that the organization
aims to accomplish. These goals are aligned with the organization's purpose and vision.

Scope of Operations: Defines the industries, markets, or areas in which the organization operates or
intends to operate.
Stakeholders: Identifies the primary stakeholders and beneficiaries of the organization's activities.
This includes customers, employees, shareholders, and the broader community.

Competitive Advantage: Highlights the unique capabilities or advantages that set the organization
apart from others in the same industry or sector.

Long-term Perspective: Emphasizes the enduring nature of the mission, providing a sense of
continuity and stability despite changing external conditions.

The Landscape of Business in the New Century

The business landscape in the new century is marked by a strong focus on technology, with
companies leveraging digital tools like artificial intelligence and e-commerce. Remote work has
become more common, and there's a growing emphasis on sustainability and social responsibility.
Businesses are also adapting to changing consumer behaviors and expanding globally. The rise of
startups and a need for agility are transforming traditional business models. Overall, the business
world is dynamic, shaped by technology, globalization, and a changing societal landscape.

New Horizon for the Philippines Strategic Competitiveness

The Philippines is in the center in the Asian region which could serve as the transient point in
the flow of goods and resources for its neighboring countries. The development of new instructures
and the liberalization of trade and commerce will create new investment for its vast natural and
human resources. It is only through the development of our natural resources and the development
of new work values and skills of our manpower that we could achieve the creation of new
investments that will create new job opportunities.

New investments create new businesses that will generate employment sustaining the
economic well-being of the Filipino people. Changing the Philippine sceneario for business
development is the creation of more honest governance and the development of more attractive
investment policy without sacrificing the opportunity of its people for growth and economic
development. The country’s economic development and global competitiveness are not the makings
of its people alone but of the more sincere and honest commitment to the achievement of good
governance and transparency in the conduct of business.

In simple terms, for the Philippines to enhance its strategic competitiveness, it should focus
on investing in technology and innovation, improving infrastructure, developing a skilled workforce,
promoting sustainability, simplifying regulatory processes, fostering international trade partnerships,
boosting tourism, promoting financial inclusion, and ensuring resilience to external challenges.
Collaboration between the government and the private sector is crucial for success.