MGT 301: Strategic Management

January 21, 2025 4.​ Customer Strategy- How will we reach customer
Strategic Management or Planning effectively?
-​ the art and science of formulating, implementing and 5.​ Sales Strategy- How do we generate enough to sustain
evaluating cross-functional decisions that enable an the business?
organization achieve its objectives 6.​ Innovation Strategy- How do we produce new ideas that
-​ Examines how actions and events involving top will help growth?
executives, firms, and industries influence an 7.​ Communication Strategy- How will we explain all of
organization’s success or failure—how the business can these to colleagues, staff, customers, and other
be the very best it can be stakeholders?
-​ involves the utilization or planned allocation of resources
to implement major initiatives to improve the firm’s Benefits
performance and achieve its goals and objectives 1.​ Financial- Improvement in sales, profitability and
-​ Managing a plan of action designed to achieve a productivity.
long-term or overall aim -​ Readiness for future external or internal fluctuations.
-​ It is stating the intention and direction in such a clear 2.​ Non-Financial- Enhanced awareness of opportunities
way that everybody knows what they are doing. and threats
-​ Managing to achieve what you have decided to do -​ Better understanding of competitor strategies
-​ More focused on problem prevention
Strategic Management Process -​ Continuous improvement in product or service delivery
1.​ Strategy Formulation
-​ vision and mission Pitfalls
-​ strengths and weaknesses -​ Doing strategic planning for the wrong purpose.
-​ opportunities and threats -​ Failing to communicate the strategies to the organization.
-​ strategies to pursue -​ Top managers not fully buying to the strategic planning
2.​ Strategy Implementation process.
-​ organizational structure -​ Making the planning process too technical thereby
-​ corporate policies lacking flexibility and creativity.
-​ resource allocation
3.​ Strategy Evaluation January 28, 2025
-​ performance measurement Vision Statement
-​ learning and growth of employees What do we want to become?
-​ business process improvement -​ provides the foundation for a comprehensive mission
-​ customer satisfaction statement
-​ financial impact Characteristics
4.​ Business Ethics -​ short- 1 sentence max but should reveal the what the
-​ good governance business is into
-​ corporate social responsibility -​ can be personal vision statements of people in the
-​ environmental sustainability organization
-​ global issues -​ recent focus is on 3Ps of sustainability
-​ from the customer perspective
Strategic Management Process -​ be careful to focus on profit
-​ Strategic Formulation 3Ps of Sustainability
-​ Strategy Implementation -​ people
-​ Strategy Evaluation -​ planet
-​ Business Ethics -​ Profit

1.​ Commercial Strategy- It going to make money? Mission statement

2.​ Brand Strategy- How good is the image that people want Declaration of an organization’s “reason for being”
to be associated with us? Components:
3.​ People Strategy- How will the people in the organization 1.​ Customers- Who are the firm’s customers?
make this all happen? 2.​ Products and Services – What are the firm’s major
products and services?
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3.​ Markets – Geographically, where does the firm compete? 1.​ Potential Entrants/ New Entry
4.​ Technology – Is the firm technology current? -​ If it is easy to establish a business that can compete with
5.​ Concern for survival, growth and profitability – Is the you, then the threat is high (ex: Food Cart Businesses).
firm committed to growth and financial soundness? Otherwise, threat is low (ex: banks/ financial institutions)
6.​ Philosophy, Beliefs, Principles – What are the basic -​ If is not easy to get in but there is big opportunity for
beliefs, values, aspirations, and ethical priorities of the other businesses to invest to become your competitors,
firm? threat is medium (ex: gasoline stations)
7.​ Self-concept – What are the firm’s major competitive
advantage? 2.​ Potential Substitutes
8.​ Concern for employees – Are employees valuable assets -​ If it is easy to find replacement products for your
of the firm? industry, then the threat is HIGH (ex: Mobile Devices).
9.​ Concern for public image (environmentally and socially Otherwise, threat is LOW (ex: Petroleum products)
responsible) – Is the firm responsible to social, -​ If it is not as easy to find replacements for your product
community and environmental concerns? but there are substitutes, threat is MEDIUM (ex:
10.​ Concern for nation-building Laptops)

Characteristics 3.​ Power of Suppliers

-​ broad in scope and does not include monetary amounts, -​ If there is only one or a limited number of suppliers for
numbers, percentages or ratios your raw materials or the products you sell, then the
-​ fewer than 150 words threat is high (ex: BPO’s relying on IT products).
-​ inspiring Otherwise, threat is low (ex: restaurants relying on
-​ reconciliatory agriculture products)
-​ enduring -​ If there are a lot of suppliers but there is a standard
pricing across the industry for your raw materials, threat
Importance/ Benefits of Vision and Mission Statements is medium (ex: parcel delivery business relying on car/
-​ To provide a basis for organizing work, departments, motorcycle vehicle suppliers).
activities, and segments around a common purpose.
-​ To make sure all employees/managers understand the 4.​ Power of Customers/ Buyers
firm’s purpose or reason for being. -​ If customers as a group can simply say not to purchase
-​ To provide a basis for prioritization of key internal and your products, then the threat is high (ex: fast food
external factors utilized to formulate feasible strategies. chains). Otherwise, threat is low (ex: fuel business)
-​ To provide a basis for the allocation of resources. -​ If the customers always have the option to whether to
buy or not an essential commodity, threat is MEDIUM
February 7, 2025 (ex: Meat/Poultry business).
Analyzing Business Factors
I.​ PESTLE ANALYSIS 5.​ Industry competition
II.​ PORTER’S FIVE FORCES -​ Number of competitors
-​ Industry -​ Quality and other differences
-​ There are three ratings you can use for Porter’s Five -​ Switching costs
Forces Model: -​ Customer loyalty
-​ High
-​ Medium Conditions that cause high rivalry among competing firms
-​ Low 1.​ When the number of competing firms is high
-​ If it is easy to have competition or the power is not 2.​ When competing firms are of similar size
dictated by your company in the industry you operate in, 3.​ When competing firms have similar capabilities
the threat of the force is highly 4.​ When the demand for the industry’s products are falling
-​ If it is difficult for competition to gain market share or 5.​ When the prices for the industry’s products or services
you can dictate how the market in the industry will go, are falling
the threat is low 6.​ When consumers can switch brands easily
-​ Any combination of low and high depending on the 7.​ When barriers to leaving the market are high
situation, the threat is medium 8.​ When barriers to entering the market are low
9.​ When fixed costs are high among competing firms
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10.​ When the product is perishable
11.​ When rivals have excess capacity
12.​ When consumer demand is falling
13.​ When rivals have excess inventory
14.​ When rivals sell similar products / services
15.​ When mergers are common in the industry

III.​ COMPETITIVE PROFILE MATRIX AND

CRITICAL SUCCESS FACTORS

DO A COMPETITIVE PROFILE MATRIX FOR THE

FOLLOWING 3 MALLS:
-​ McDonald’s
-​ Jollibee
-​ Wendy’s
Write in the group chat you think is critical to make the fast-food
chain profitable.

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Quiz #1
1.​ What is strategic planning/ strategic management?
2.​ Name 2 characteristics of Vision statements
3.​ What are the 4 parts in the Strategic Management
process?
4.​ Name 1 benefit and 1 pitfall of strategic management
5.​ Name 2 factors evaluated in Porter’s Five Forces
6.​ Name 2 components of mission statements