9/8/17

Strategic Management

BA 101 – Introduction to Management

Louie Lee

What is Planning?

PLANNING
The cumulative process of defining an
organization's goals, establishing overall strategies
to achieve said goals, and developing tactics to
integrate and coordinate work

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Types of Plans

Breadth Strategic Operational

Time
Long-Term Short-Term
Frame

Specificity Directional Specific

Frequency
of Use
Standing Single Use

ORGANIZATIONAL PROJECT
PLAN PLAN

Advantages and Disadvantages of Planning

ADVANTAGES DISADVANTAGES

• Provides direction
• Constricts an
organization
• Reduces uncertainty
• Stifles intuition and
• Minimizes waste and
creativity
uncertainty
• “Ivory Tower Planning”
• Establishes goals and
controls

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Organizational Planning Elements / Components

Goals Objectives Strategies Tactics

What is your What are your What are your What are your
organization’s organization’s organization’s key organization’s
mission and vision? specific milestones directions in order periodic activities?
for the near future? to achieve them?
Why are you How do you How do you What should
doing what know you’re actually get to you do now?
you’re doing? getting to where you want
where you want to go?
to go?

Organizational Planning Elements / Components

Goals Objectives Strategies Tactics

What is your What are your What are your What are your
organization’s organization’s organization’s key organization’s
mission and vision? specific milestones directions in order periodic activities?
for the near future? to achieve them?

To enrich Filipino To become the Provide complete, Launch To-Go No-

lives through food market leader in value-for-money Heat Meals for P70
consumer foods in meals fit for the
the Philippines by lifestyle of each Hire credible
2040 member of the endorsers
family
Advertise using
above-the-line media

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Organizational Planning Elements / Components

BHAG
Goals

Big, Hairy, Audacious Goals

Methods for Goal Development:

What is your • Traditional (Top-Down Approach)

organization’s
mission and vision?
• Means-End Chain (Interconnected Goals)

• Management by Objectives (Goals Set by the

Entire Organization)

Organizational Planning Elements / Components

SMART
Objectives

Specific, Measurable, Achievable, Realistic, Time-Bound

þ ý
What are your Detailed, focus Woolly, vague
organization’s
specific milestones
Know when achieved Estimate when done
for the near future?

Stretching, but Demotivating, because

attainable impossible

Resources are available Overshadowed by

priorities
Clear deadlines General timeframe

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Organizational Planning Elements / Components

SWOT
Strategies

Strengths, Weaknesses, Opportunities, Threats

STRENGTHS WEAKNESSES

What are your

Key competitive Competition’s key
organization’s key
directions in order advantages versus the advantages versus the
to achieve them? organization’s industry organization

OPPORTUNITIES THREATS

External environment External environment

trends that organization trends that organization
can capitalize on will be challenged by

What is Strategy?

STRATEGY
Plans an organization undertakes to compete
successfully in an uncertain environment in order to
achieve its goals and objectives

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Types of Corporate Strategy

GROWTH STABILITY RENEWAL

• Concentration • Retrenchment
• Vertical Integration • Turnaround
• Horizontal Integration
• Diversification

Boston Consulting Group (BCG) Matrix

MARKET SHARE
MARKET GROWTH

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Porter’s Five Forces

Ease or difficulty of entry

into the market
BARRIERS
Imminence or
distance of
substitution threats

RIVALRY
Intensity of
SUBSTITUTES competition BUYERS
among key
players

Relative power of
consumers to
SUPPLIERS impact market

Relative power of suppliers

to impact market