BAM 200 Module 2 Strategic Management PDF

BAM 200: Strategic Management Module #2 Student Activity Sheet Name: _________________________________________________________________ Class number: _______...

BAM 200: Strategic Management Module #2 Student Activity Sheet Name: _________________________________________________________________ Class number: _______ N Section: ____________ Schedule: ________________________________________ Date: ________________ I O AT Lesson title: Strategic Management Process Materials: SAS, Learning Targets: At the end of the module, students will be able to: References: C 1. Identify the different elements of Strategic Management Kennedy, Reed (2020). Strategic U Process; Management. 2. Define each phase of Strategic Management Process. ED Productivity Tip: A “In order to SUCCEED we must first BELIEVE that WE CAN.” – Nikos Kazantzakis A. LESSON PREVIEW/REVIEW M IN Introduction PH Welcome to our Module #2! Now that we have learned what is Strategic Management is all about, its nature and benefits, are you ready to discover more of its exciting process? Now, we move to the define what is Strategic Management Process all about, its Basic Model F (elements) and the different phases we need to go through in order to finish the process of a successful O Strategic Planning. In this module, we will briefly discuss each Strategic Management phase, each phase will have concepts and tools that we will need to learn. TY Are you ready to learn more about Strategic Management? Now, let us get started …. R PE O PR This document is the property of PHINMA EDUCATION  BAM 200: Strategic Management Module #2 Student Activity Sheet Name: _________________________________________________________________ Class number: _______ N Section: ____________ Schedule: ________________________________________ Date: ________________ O B. MAIN LESSON I Content and Skill-Building l AT Topic #1 Basic Model (Element) of Strategic Management C A descriptive model of Strategic Management. The process of strategic management involves four (4) basic elements: (1) environmental scanning, (2) strategy formulation, (3) strategy implementation, and (4) U evaluation and control. Strategic Management is a systematic process. There are different strategic management models that you can use, but the model proposed by Wheelen and Hunger can be argued to be ED the most simple but effective. A M IN PH F O TY R PE Figure 1. Strategic Management model by Wheelen and Hunger O As you can see in the figure above, the process involves four (4) phases namely: 1. Environmental Scanning; 2. Strategy Formulation; 3. Strategy Implementation; and lastly 4. Evaluation and Control. There are PR activities to be performed at every phase. The model broadly shows the activities to be considered at every phase. It is straightforward and shows the process step by step. As you do your strategic planning, I advise you to always keep the model in mind. This document is the property of PHINMA EDUCATION  BAM 200: Strategic Management Module #2 Student Activity Sheet Name: _________________________________________________________________ Class number: _______ N Section: ____________ Schedule: ________________________________________ Date: ________________ O PHASES OF STRATEGIC MANAGEMENT I AT 1st Phase: Environmental Scanning This is the first phase of strategic planning where the environmental factors are taken into consideration. C It involves identifying, monitoring, evaluating, and communicating pieces of information for the internal and external environment to key people in the organization. The key purpose of environmental scanning is to identify U key factors that are critical to creating strategies. ED Internal Environment is the environment that exists within the organization and is controllable by the organization itself. An organization’s internal environment is composed of the elements within the organization, including current employees, management and especially corporate culture, which defines employee behavior. External Environment is where the organization interacts, it is outside the organization, and also uncontrollable A by the organization. An organization’s external environment is composed of the elements outside the M organization, including government policies, taxes, suppliers, competitors, inflation and etc. In order to find out these key factors, a SWOT analysis is usually conducted. SWOT stands for IN STRENGTH, WEAKNESS, OPPORTUNITY, and THREAT. SWOT Analysis helps you to identify your organization’s strength, weaknesses, opportunities, and threats. It guides you to build on what you do well, PH address what you’re lacking, seize new openings, and minimize risks. Apply SWOT Analysis to assess your organization’s position before you decide on any new strategy. Strength and Weaknesses are factors that can be observed in the internal environment, while Opportunity and Threat are commonly observed in the external environment. Tools such as the PESTLE F analysis and Porter’s 5 Forces are also used in order to have a better understanding of the different external environmental factors. O For instance, strategies are particularly more doable when you utilize the organization’s strength. Take TY an organization that has a lot of money for instance. The easiest way it can lessen its competition is to use its money to buy off competitors. With weaknesses, the key is to at least try to minimize the weakness, or much better, eliminate the weakness itself. Weaknesses can expose organizations. It can make the impact of threats much greater. They can impose a hurdle for organizations to exploit opportunities. R PE Opportunities are reward gaining. Strategies should focus on how to capitalize on these opportunities to profit from them in the long-run. The strategies should help exploit these opportunities. Think of opportunities as a way of making new income streams for an organization. Threats, on the other hand, are external factors that can negatively impact the organization. They are events that can make it difficult for the O organization to operate. The inherent weaknesses of an organization make the organization more vulnerable to threats. Strategies should work to negate or mitigate the impact of threats. PR This document is the property of PHINMA EDUCATION  BAM 200: Strategic Management Module #2 Student Activity Sheet Name: _________________________________________________________________ Class number: _______ N Section: ____________ Schedule: ________________________________________ Date: ________________ I O AT C U ED A M IN PH F O Figure 2. The External and Internal Environments (Source: Wheelen and Hunger) TY 2nd Phase: Strategy Formulation This is the second phase where you set strategic objectives and formulate strategies to achieve R organizational and strategic objectives. Information gathered during the environmental scanning phase is taken PE into consideration in order to come up with long term plans of how the organization will achieve its goals and objectives. Organizations need to understand how to use what they have in order to achieve organizational goals. O Activities included in the phase are defining or refining corporate vision and mission, identifying organizational or strategic objectives, developing strategies, and creating policies in order to enforce strategies. Formulation of PR strategies is usually done by top-level management. In order to better formulate strategies, an organization should understand the relationship of strategy to the different environmental factors. It is easier to come up with sound strategies an organization knows how to deal with specific environmental factors. This document is the property of PHINMA EDUCATION  BAM 200: Strategic Management Module #2 Student Activity Sheet Name: _________________________________________________________________ Class number: _______ N Section: ____________ Schedule: ________________________________________ Date: ________________ I O 3rd Phase: Strategy implementation AT This is the phase wherein the process by which strategies and policies are put into action through the development of programs, budgets, and procedures. This process might involve changes within the overall C culture, structure, and / or management system of the organization. Except when such drastic corporate-wide changes are needed, however, the implementation of strategy is typically conducted by middle and lower-level U managers with review by top management. Sometime referred to as operational planning; strategy ED implementation often involves day-to-day decisions in resource allocation Program is a statement of the activities or steps needed to accomplish a single-use plan. It makes the strategy action oriented. It may involve restructuring the corporation or changing the company's internal culture concerning how people get things done. A M Budgets is a statement of a corporation's programs in dollar terms. Used in planning and control, it lists the detailed cost of each program. Many corporations demand a certain percentage return on investment, often IN called a hurdle rate, before top management will approve a new program. This is done to ensure that the new program will significantly add to the corporation's profit performance and thus build shareholder value. The budget thus not only serves as a detailed plan of the new strategy in action, it also specifies through proforma PH financial statements the expected impact on the firm's future financial situation. Procedures Sometimes termed standard operating procedures (SOP), are a system of sequential steps or techniques that describe in detail how a particular task or job is to be done. They typically detail the various F activities that must be carried out for completion of the corporation’s program. O 4th Phase: Evaluation and control TY This is the process where the results and outputs of strategies is monitored. Performance is checked and compared to desired results and objectives. If it does not live up to what is expected, then information is fed R back to where it is needed, and then revise parts of strategy where it is needed to be changed. It is also possible to change the strategy wholly. It is the process in which corporate activities and performance results are PE monitored so that actual performance can be compared with desired performance. Managers at all levels use the resulting information to take corrective action and resolve problems. Although evaluation and control is the final major element of strategic management, it also can pinpoint weaknesses in previously implemented O strategic plans and thus stimulate the entire process to begin again. PR For evaluation and control to be effective, managers must obtain clear, prompt, and unbiased feedback from the people. This document is the property of PHINMA EDUCATION  BAM 200: Strategic Management Module #2 Student Activity Sheet Name: _________________________________________________________________ Class number: _______ N Section: ____________ Schedule: ________________________________________ Date: ________________ O Check for Understanding I AT Exercise 1. Write True on the blank before the number if you think the statement is correct and write False if you think it is not correct. C _____1. There are four phases in strategic planning. U _____2. Strength and Weaknesses are factors that can be observed in the internal environment, while ED Opportunity and Threat are commonly observed in the external environment. _____3. Strategies should focus on how to capitalize on these opportunities to profit from them in the long-run. A _____4. External environments are controllable by the organization. M _____5. Strategy Formulation is the process where the results and outputs of strategies is monitored. IN _____6. Weaknesses can make organizations more vulnerable to opportunities. PH _____7. Implementing strategies could mean organizational change. _____8. Strengths and weaknesses can be controlled by the organization. F _____9. Procedure is a statement of the activities or steps needed to accomplish a single-use plan. O _____10. Strategies should work to negate or mitigate the impact of threats. TY Exercise 2: Identification. Identify what is being asked. Write your complete answer. R _____1. This phase is where an organization puts the strategies and policies into motion. PE _____2. This is a phase where you set strategic objectives and formulate strategies to achieve organizational and strategic objectives. O _____3. It is a phase wherein it involves in identifying, monitoring, evaluating, and communicating pieces of PR information for the internal and external environment to key people in the organization. _____4. It is a statement of a corporation's programs in dollar terms. _____5. It is composed of the elements within the organization, including current employees, management and especially corporate culture, which defines employee behavior. This document is the property of PHINMA EDUCATION  BAM 200: Strategic Management Module #2 Student Activity Sheet Name: _________________________________________________________________ Class number: _______ N Section: ____________ Schedule: ________________________________________ Date: ________________ I O _____6. It is uncontrollable by the organization. AT _____7. These are system of sequential steps or techniques that describe in detail how a particular task or job is to be done. C _____8. This is the process where the results and outputs of strategies is monitored U _____9. It’s key purpose is to identify key factors that are critical to creating strategies. ED _____10. It is an analysis that the goal is to increase awareness of the factors that go into making a business decision or establishing a business strategy. A Exercise 3: M 1. List down the phases of Strategic Management. Write them down on the upper portion of each box. IN 2. Briefly define each phase meaningfully. Write down your answers on the lower portion of the box. PH F O TY R C. LESSON WRAP-UP PE In a nutshell, the four phases of the Strategic Management Process O PR Feedback This document is the property of PHINMA EDUCATION  BAM 200: Strategic Management Module #2 Student Activity Sheet Name: _________________________________________________________________ Class number: _______ N Section: ____________ Schedule: ________________________________________ Date: ________________ I O Thinking about Learning AT Congratulations for finishing this module! Shade the number of the module that you finished. C U ED Did you have challenges learning the concepts in this module? If none, which parts of the module helped you learn the concepts? A ________________________________________________________________________________________ ________________________________________________________________________________________ M ________________________________________________________________________________________ ________________________________________________________________________________________ IN Some question/s I want to ask my teacher about this module is/are: PH ________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ F O Answer Key TY Exercise 1: 1. True 6. False – More vulnerable 2. True 7. True R 3. True 8. True 4. False – Internal Environment 9. False– Program PE 5. False – Evaluation and Control 10. True Exercise 2: O 1. STRATEGY IMPLEMENTATION 6. EXTERNAL ENVIRONMENT PR 2. STRATEGY FORMULATION 7. PROCEDURES 3. ENVIRONMENTAL SCANNING 8. EVALUATION AND CONTROL 4. BUDGETS 9. ENVIRONMENTAL SCANNING 5. INTERNAL ENVIRONMENT 10. SWOT ANALYSIS This document is the property of PHINMA EDUCATION