INSTRUCTIONAL MATERIALS

IN
BUMA 012 STRATEGIC MANAGEMENT

BSOAOU3-4L

MA. CONEY M. CONTRERAS

COURSE SPECIALIST
STRATEGIC MANAGEMENT

COURSE DESCRIPTION
Strategic Management is a study of how “managerial decisions and actions”
determine the sustainability of the long-run performance of a business organization
that should lead to business enterprise to sustainable and increasing levels of
production, profitability and growth. It includes the understanding of the
environment (both external and internal) in which the organization operates and is
part of, the formulating of strategy (strategic long range planning), implementing
the formulated strategy, evaluating the outcomes (results) of the implementation
process and controlling the continuous day to day operational processes to ensure
achievement of the set objectives. The study emphasizes the monitoring and
evaluating the business firm’s “external opportunities and threats” in the light of
the firm’s “strengths and weaknesses” which then enable management to review or
formulate a business firms’ mission, vision, objectives, strategy and policy.

PURPOSE OF THE COURSE

The major purpose of this course is to equip the students with skills, knowledge and
attitudes necessary for effective leadership and change management in dynamic
and multicultural organizations.

COURSE OBJECTIVES
1. To introduce the student to the concept of strategic management.
2. To introduce the student to the functioning of the organization as an organic
whole.
3. To develop an appreciation of the dynamic and intricate external environment
within which an enterprise functions and the need to plan and initiate appropriate
responses.
4. To develop an understanding of the intricacies of general management and the
role of the chief executive in the formulation and implementation of appropriate
strategies for his/her organization. 5. To enhance the integration and application of
principles learnt and knowledge gained from other academic disciplines and for
general experience.
6. When taken through the course, the student will be able to develop managerial
analytical skills that will enable him/her to face problem-solving and decision-
making situations with greater confidence.
7. To enable student solve problems with greater foresight and insight and thus
making sound decision

MODULE 1: Introduction and General Overview to Strategic

Management
The objective of this week is to introduce the student to strategic
management and the role it plays in corporate management affairs. The student is
required to explore and define concepts in strategic management, explore the
concept of strategic thinking, the role of the manager as a strategist, appreciate the
involvement of other stakeholders in strategic management and the varying levels
of strategies that are required in business organizations. It also introduces the
Strategic Management Model and Strategic Decision making process and the events
that triggers the process.
a) Learning Outcomes
b) Topics /Subtopics
 meaning of strategic management
Definition of key terms and concepts
 Nature and scope of strategic management
LESSON/CONCEPTS
Meaning of Strategic Management:
Strategic management refers to the process of formulating, implementing, and
evaluating decisions and actions that enable an organization to achieve its long-term objectives.
It involves setting goals, assessing internal and external factors, and allocating resources to
implement strategies.
Nature of Strategic Management:
1. Comprehensive Approach: It involves considering the organization as a whole and
aligning all aspects of the organization towards a common purpose.
2. Long-term Perspective: It focuses on achieving long-term goals and sustainable
competitive advantage rather than short-term gains.
3. Dynamic Process: Strategic management is not a one-time event but an ongoing,
dynamic process that adapts to changes in the internal and external environment.
4. Involves Decision Making: It requires making crucial decisions about resource
allocation, competitive positioning, and organizational direction.
5. Incorporates Feedback and Evaluation: Continuous monitoring and evaluation of
performance are integral parts of strategic management to ensure that strategies are
effective.
Essential Tasks of Strategic Management
Developing a Strategic Vision and Mission
The first step, developing a strategic vision and mission, involves putting management’s
long-term view of where the company is going on paper and making that known to the
employees of the company. This step is made up of both the vision and the mission. The mission
is used to define why the organization exists. Often companies within the same industry with
have similar mission statements. The vision is management’s view of where the company is
going. This task is usually the responsibility of the CEO.
Executive leadership should not be pulling the mission and vision from thin air. There is a
mission and a vision present for all companies. Sometimes the vision is present only as ideas in
the heads of top management. Management must find out what it is and communicate that to the
employees. A clear and concise mission and vision will help the company work together for the
same purpose. It is also used in the other steps of strategic management.
Setting Objectives
The second step, setting objectives, takes the strategic vision and creates specific goals that will
occur to accomplish what is laid out in the vision statement. Goals should be feasible but also not
easily attainable. These types of goals are called “stretch” goals because they force the company
to go as far as they can to attain the goal. If goals are set too low, complacency will occur.
Establishing these goals removes confusion employees may have on what should be
accomplished.
Managers can set both financial objectives and strategic objectives. Financial objectives
are those that state what management wants to achieve in “dollars and cents.” Strategic
objectives are goals that strive to increase competitive position, gain market share, or to develop
a competitive advantage. Strategic objectives have the power to motivate and prompt action
where financial objectives are seen more as a constraint. Managers should define both goals but
concentrate on strategic objectives will bring about better results.
Both long-term and short-term objectives should be set. Short-term objectives will
motivate present performance while long-term objectives will put the company in the proper
position to achieve what is outlined in the vision down the road. Priority should be placed on
long-term objectives over the short-term. Companies that stress short-term objectives end up in
business short-term.
Crafting Tactics to Achieve Organizational Objectives
The third step, crafting tactics to achieve organizational objectives, is where management
defines how to achieve the defined objectives. In this step, management decides how best to
respond to changes in the environment, how to rise above the competition, and how to move
towards the corporate vision and strategic objectives.
Implementing and Executing the Tactics
The fourth step, implementing and executing the tactics, includes determining what company
resources should be allocated to each activity, establishing policies, motivating employees,
providing the resources necessary to achieve objectives, and encouraging a continuous
improvement culture.
Tactics must be tailored to organizational capabilities and culture for them to work efficiently.
Change will most likely be needed, but the amount of change varies depending on how new the
tactics are. This usually involves revising policies or resource allocation, moving people around,
retraining and retooling, or making changes to reward systems. Each manager must look at the
tactics and their department to determine how best to implement each tactic correctly.
Evaluating and Measuring Performance
The fifth step, evaluating and measuring performance, is how management determines whether
or not the tactics implemented effectively to achieve organizational objectives and comply with
the strategic vision. If performance is not to expectations, corrective action must be taken.
Performance can be measured by various methods such as financial data, customer satisfaction,
quality reports, employee satisfaction, and capital utilization. Each of these types of measures
should be used to analyze tactics to get a full picture of a tactic’s success.
Reference:
5 Essential Tasks of Strategic Management, Eric Vanderburg, March 2004

DIMENSIONS OF STRATEGIC DECISION

Scope of Strategic Management:

1. Environmental Analysis: This involves assessing the external factors that can affect an
organization, including industry trends, competition, regulatory changes, and economic
conditions.
2. Internal Analysis: This focuses on evaluating the organization’s strengths, weaknesses,
resources, and capabilities.
3. Formulation of Strategy: It encompasses the process of developing a clear and
feasible strategy based on the analysis of internal and external factors.
4. Implementation of Strategy: This involves executing the chosen strategy through the
allocation of resources, structuring of operations, and setting up mechanisms for
monitoring progress.
5. Evaluation and Control: Continuous assessment of performance against strategic
goals to identify any necessary adjustments or changes.
Importance of Strategic Management:
1. Provides Direction: It sets a clear path and purpose for the organization, ensuring that
all efforts are aligned with long-term goals.
2. Enhances Adaptability: It helps organizations proactively adapt to changing market
conditions, technology, and customer preferences.
 3. Optimizes Resource Allocation: Strategic management ensures that resources are
allocated efficiently to areas that will have the most significant impact on achieving
objectives.
4. Fosters Innovation and Creativity: It encourages a culture of innovation by constantly
seeking new and better ways to achieve organizational goals.
5. Improves Organizational Performance: Effective strategic management can lead to
improved financial performance, increased market share, and enhanced competitive
advantage.
6. Facilitates Risk Management: It enables organizations to identify and mitigate risks by
anticipating potential challenges and developing contingency plans.
REFERENCES:
https://easynotesstore.com/meaning-nature-scope-and-importance-of-strategic-management/

Recommended Reading Pearce J. and Robinson, R. (2009), Strategic Formulation and

Implementation, (Homewood, Illinois: Irwin Publishers, Chapter 1 Pearce J. and Robinson, R.
(2007), Strategic Formulation and Implementation, (Homewood, Illinois: Irwin Publishers, d)
Assignment 1

A. Give a brief description of your present workplace (if you are not working at
present, you may use your previous workstation). Include its organizational
mission, vision, short-term objectives, and long-term objectives.
B. After graduation, you are likely to move directly to a top-level management
position. In fact, few members of your class will ever reach top management
level. Why, then, it is important a college student like you to study the field of
strategic management?

MODULE 2 Strategies of Strategic Management

 Essential tasks of strategic management
 Dimensions of strategic decisions
 Meaning and process of strategic thinking
 Strategic management encompasses various approaches to strategizing in public
organizations or other entities. These approaches include strategic planning, which involves
formulating strategies and ways of implementing them, as well as continuous strategic learning
Another approach is the integrated units of management approach, which involves
layered or stacked units of management.
The strategic issues management approach focuses on addressing challenges and
identifying solutions.
The contract approach involves establishing agreements and partnerships.
The collaboration approach includes lead organization, shared governance, and
network administrative organization approaches.
The portfolio management approach involves managing a portfolio of strategies. The
goal or benchmark approach focuses on setting goals and benchmarks for performance.
Finally, hybrid approaches combine different elements from various approaches to suit
specific contexts.
.

DIMENSIONS OF STRATEGIC DECISION

What is strategic decision?
Decision may be related day to day operations, major or minor decisions or strategic
decision. Strategic decisions are about an organization’s strategy. It is obvious that strategic
decisions have a major impact on any organization. To develop great strategies, it is essential to
comprehend the true nature of strategic decisions.
Further, strategic decision making is combination of strategy and management. It is a
managerial process and function of choosing a particular course of action out of several
alternatives in order to achieve organizational goals. Major dimensions are as follows.

Strategic decision require top management involvement

It is impossible to form a strategy in an organization without the involvement of top
management. Since strategic decisions consider the organization in totality, and since there is
lot of risk involved, involvement of top management is practically inescapable.
Strategic decisions involves the allocation of large resource:
Just making a decision makes no sense at all unless it is executed in the fashion the
strategy was framed.
 In order to execute the decision effectively, the entity may require huge investment or a
huge number of manpower. Further, there is the need to manage funds to venture into a new
area business
Strategic decisions have long term impact:
Strategic decisions are made considering the factors of business environment and their
probable bearing on the operation. Generally the result of strategic implementation are seen as
on long term basis and not immediately after the decision is executed.
Strategic decisions are future oriented:
Strategic decisions are taken based on what our position would be in the near future and
how we would achieve our expected results. Strategic thinking involves predicting the future
environmental conditions and how to be prepared for changed conditions in the future.
Strategic issues necessitate considerations of factors in the firm’s external
environment
While making strategic decisions, one should know the external environment well. It is
the external environment which offers the opportunities for growth and decisions have to made
considering the opportunities and threats. It enforce orienting its internal environment to the
changes of external environment.
At last, Strategic decisions determine the grand direction upon which an entity will utilize
its resources. Always, strategy demands action. The object of strategy is to achieve its goals
within which action will take place.

REFERENCES:
https://www.thakurani.in/shocksnmocks/Others-14-group/dimensions-of-strategic-decisions-
3859/

Strategic management process has following four steps:

1. Environmental Scanning- Environmental scanning refers to a process of collecting,
scrutinizing and providing information for strategic purposes.
It helps in analyzing the internal and external factors influencing an organization.
After executing the environmental analysis process, management should evaluate it on a
continuous basis and strive to improve it.
2. Strategy Formulation- Strategy formulation is the process of deciding best course of
action for accomplishing organizational objectives and hence achieving organizational
purpose.
 After conducting environment scanning, managers formulate corporate, business and
functional strategies.
3. Strategy Implementation- Strategy implementation implies making the strategy work as
intended or putting the organization’s chosen strategy into action.
Strategy implementation includes designing the organization’s structure, distributing
resources, developing decision making process, and managing human resources.
4. Strategy Evaluation- Strategy evaluation is the final step of strategy management
process.
The key strategy evaluation activities are: appraising internal and external factors that
are the root of present strategies, measuring performance, and taking
remedial/corrective actions.
Evaluation makes sure that the organizational strategy as well as it’s implementation
meets the organizational objectives.

Components of Strategic Management Process

These components are steps that are carried, in chronological order, when creating a
new strategic management plan.
Present businesses that have already created a strategic management plan will revert to these
steps as per the situation’s requirement, so as to make essential changes.

Strategic management is an ongoing process. Therefore, it must be realized that each

component interacts with the other components and that this interaction often happens in
chorus.
https://www.managementstudyguide.com/strategic-management-process.htm

Assignment #2
A. In your line of work, several strategic management are being implemented
by yourself/by your top management. What approach/es have you
observed that is/are being implemented in your organization? Cite a
specific situation when these approaches are observed.
B. You must have experienced challenges in your workplace. Cite 2
challenges that you encounter as a member/leader of your
organization/workplace. What specific strategy did you apply to eliminate