Mastering Strategic Management: Key Concepts and Activities
School
San Roque Nationl High School**We aren't endorsed by this school
Course
BA 16C
Subject
Management
Date
Dec 10, 2024
Pages
58
Uploaded by SargentTeam17429
HRM 141: Strategic Management and TQM Student Activity Sheet Module #1This document is the property of PHINMA EDUCATIONProductivity Tip:The Internet is a powerful tool to use to your advantage. Make sure to browse relevant topics tomake studying more enjoyable!Name: Section: Schedule: Class number: Date: Lesson title: Introduction to Strategic Management Lesson Objectives:At the end of this lesson, I should be able to1.Discuss the concept of strategic management2.Differentiate strategy and policyMaterials:References:Strategic Management and Business Policy, Wheelen, T. and Hunger, J.D.Fundamentals of Strategic Management,Orcullo, N.A.A. LESSONPREVIEW/REVIEW1)Introduction (2 mins)Strategic Management is a business function that helps determine long-term performanceof an organization. It is previously known as business policy. Seeing the word “management” with it, we can expect its function to be performed: planning, organizing, leading, and of course, controlling.Strategic management includes activities such as environmental scanning, formulating strategies, budgeting, execution of said strategies, and evaluation of the effectiveness of strategies. By participating in strategic planning, an organization can have a better understanding of how it will move forward with its current resources.2)Activity 1: What I Know Chart, part 1 (3 mins)What I KnowQuestions:What I Learned (Activity 4)1.What is strategy?
HRM 141: Strategic Management and TQM Student Activity Sheet Module #1This document is the property of PHINMA EDUCATIONName: Section: Schedule: Class number: Date: 2.What is policy?3. What is Strategic Management?B.MAINLESSON1)Activity 2: Content Notes (13 mins)Highlight contents you think is very important to understand the topic. Write your ideas and questions involving the subject matterA strategy, in simple language, is an elaborate plan to achieve a certain or specific goal. It utilizes strengths in order to achieve goals. That is also true with business organizations. Businesses need strategic plans in order for them to be competitive. The study of strategic management helps understand how to build a sound strategic plan in order to achieve organizational goals.Nature of Strategic ManagementStrategic management is a set of managerial activities and decisions that help determine the long-term outcome of an organization. These activities and decisions decide the direction that the organization might take. The process takes into account factors from internal and external environments to come up with decisions for the organization. In conclusion, it becomes a framework that shapes the destiny of an organization.Specifically, one can say that strategic management is:1.Putting the organization into a competitive positionImplementing strategic management helps the organization identify strengths, or if not, develop strengths. This can help the organization fill a certain competitive position. The whole activity of strategic planning helps an organization match its particular resources to the best route of success, and to possibly sustain that success.2.Sustaining competitive position by studying environmental factors, and responding to or getting ahead of it.
HRM 141: Strategic Management and TQM Student Activity Sheet Module #1This document is the property of PHINMA EDUCATIONName: Section: Schedule: Class number: Date: Strategic planning puts the organization into a constant activity of learning environmental factors, and because of that, organizations tend to see trends better and earlier, which gives an edge when it comes to decision making, and exploiting opportunities.3.Monitoring and responding to stakeholders’ interests.Organizational goals have to reflect what stakeholders expect from theorganization. Strategic planning helps to take into account stakeholders’ interests andto answer to it without compromising the organization.Benefits of Strategic ManagementYou might have understand already what strategic management is all about, but you might be wondering “How will strategic management help an organization?”. The most obvious benefit of strategic management is a better sense of organizational direction. Others are:1.Clearer sense of strategic vision for the organizationStrategic planning helps the organization understand whether its vision is something realistic and beneficial. Engaging in strategic planning can help rethink the vision for the organization and help to communicate it to everyone in the organization.2.Sharper focus on strategically important matters.Strategic planning focuses on what helps achieve organizational goals. It aligns the resources of an organization and utilize it to execute strategies. The activity also helps to prioritize goals to pursue.3.Better understanding of environmental factorsThe environment plays a critical role since the organization has to adapt to it. If anorganization constantly studies the environment through strategic planning, it is able tohold a better understanding of the factors that play around it.4.Ability to become proactive, rather than reactive.Strategic planning practices foresight. This helps the organization tobe proactive.5.Operational efficiencySince strategic planning emphasizes focus, efficiency becomes higher due to prioritizing activities that create better or strategic impact for the organization. It helps you avoid doing unnecessary activities. This results to a higher efficiency rate and minimizes unnecessary expenses.
HRM 141: Strategic Management and TQM Student Activity Sheet Module #1This document is the property of PHINMA EDUCATION3SbuName: Section: Schedule: Class number: Date: Terms to remember!2) Ac Strategy vs. Policy vs.Tactic tiStrategy – elaborate plan to achieve a certain organizational goal. It is a comprehensiveplan thatv tells how an organization can attain its objectives. For example, Samsung trying tolead the market iby being available as for many markets as possible. When Samsungdeveloped smartphones, they t produce different phones for the different levels ofmarket. Galaxy S, A and J models all cater toy different markets of socio-economic levels.Policy - a broad guideline for decision making of an organization. These guidelines make sure that: actions are aligned to make sure that strategies are implemented right, and that organizational objectives are met. For example, Samsung being a market leader, shouldhave a policy that when making a product, market studies should always be a part of proposals, and products shouldk always have a different version for each target market. Another example is, Starbucksis pushing for i a fair practice employment. One of their policies is to make sure that the raw materials they buylcomes from an organization that is recognized by Rainforest Alliance, an organization that grantslcertificates to nature and labor friendly organizations.-Tactic – day to day operational business activities that support strategies. As example, Samsungcan get information from time to time via surveys or digital info in order to make products that are i fit for the market.lding Activities (with answer key) (18 mins + 2 mins checking)Exercise 1. From the lesson that you have read and learned, list down 5 1-liner sentences about what strategic management is all about.1.
HRM 141: Strategic Management and TQM Student Activity Sheet Module #1This document is the property of PHINMA EDUCATIONName: Section: Schedule: Class number: Date: 2.3.4.5.Exercise 2. Tell whether the action being taken is either a strategy, a policy, or a tactic. Write down S for Strategy, P for policy, and T for tactic.1. Coca-Cola plans to create more profit by introducing new products to the market.2. PHINMA Education Network making sure that all activities are environmental – friendly.3. Facebook expanding its media reach by buying out its competitors such as Instagram.4. New products were to be sold along old products as a freebie.5. First In First Out to make sure products will not be spoiled.3)Activity 4: What I Know Chart, part 2 (2 mins)Now, let’s check your knowledge on the concept of strategic management. I hope that everything about the topic is clear to you. This time you have to fill out the What I Learned column.4)Activity 5: Check for Understanding (5 mins)True or False. Write True on the blank before the number if you think the statement is correct/accurate, otherwise write False.1. Strategic planning helps the organization to be proactive.2. Strategic management commonly plans for the short term.3. Strategies are grand plans that executed to achieve organizational goals.4. Operational efficiency becomes higher when practicing strategic management.5. Policies are day to day activities that help execute strategies.C.LESSONWRAP-UP1)Activity 6: Thinking about Learning (5 mins)A.Work TrackerYou are done with this session! Let’s track your progress. Shade the session number you just completed.
HRM 141: Strategic Management and TQM Student Activity Sheet Module #1This document is the property of PHINMA EDUCATIONName: Section: Schedule: Class number: Date: B.Think about your Learning1.Do you think you were able to grasp and learn something new today? What are they? What helped you learn them? If not, why do you think so?2.Which parts of the lesson do you have difficulty understanding? Do you have questions about the lesson? List them down.FAQs1.Can strategic management only be practiced by big companies or organizations?No, it can also be practiced by smaller organizations. Strategic planning is scalable. You can use it even if you are a micro-business. You will just have to revise it according to your need.2.Is it difficult to conduct a strategic plan?Yes, it can be. But it can be learned, and since it is systematic, you can approach it step by step.KEY TO CORRECTIONSActivity 3. Exercise 1. Suggested outputs1.It is about putting the organization in a competitive position.
HRM 141: Strategic Management and TQM Student Activity Sheet Module #1This document is the property of PHINMA EDUCATIONName: Section: Schedule: Class number: Date: 2.It is about sustaining competitive position.3.It is about monitoring and responding to stakeholders’ interests.4.It is about meeting the organization’s long term goals.5.It is about directing the direction of an organization.Exercise 2.1.S2. P3. S4. T5. PActivity 5.1. True2. False3. True4. True5. False
HRM 141: Strategic Management and TQM Student Activity Sheet Module #2This document is the property of PHINMA EDUCATIONSince you are trying to learn at home on your own, use your own workspace for better concentration! Have fun!Name: Section: Schedule: Class number: Date: Lesson title: Strategic Management Model and its Phases Lesson Objectives:At the end of the lesson, I should be able to1.Enumerate the different phases of strategic management.2.Define each phase of strategic management.3.Discuss the relationship of strategy to SWOTMaterials:References:Strategic Management, Wheelen and HungerA. LESSONPREVIEW/REVIEW1)Introduction (2 mins)Hey there! Now that you have learned what strategic management is all about, are you ready to discover more of its exciting process?We move next to the basic model of strategic management and the different phases we need to go through in order to finish the process of strategic planning. To start, we have four (4) phases in strategic planning. In this module, we will have a brief discussion of each strategic management phase. Each of the phase will have concepts and tools that wewill need to learn in order to finish each. More of the details about each phase will be discussed separately and chronologically in the modules to follow.2)Activity 1: What I Know Chart, part 1 (3 mins)What I KnowQuestions:What I Learned (Activity 4)1. What are the phases of strategic management?2. What is environmental scanning?
HRM 141: Strategic Management and TQM Student Activity Sheet Module #2This document is the property of PHINMA EDUCATIONName: Section: Schedule: Class number: Date: B.MAINLESSON1)Activity 2: Content Notes (13 mins)Figure 1. Strategic Management model by Wheelen and HungerStrategic 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 the most simple but effective. As you can see on the model above, the process involves four (4) phases namely: 1. Environmental scanning; 2.Strategy formulation; 3. Strategy implementation; and lastly 4. Evaluation and control. There areactivities 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. You could download it toyour mobile phone for easier access to guide you through the process.1stPhase: Environmental Scanning
HRM 141: Strategic Management and TQM Student Activity Sheet Module #2This document is the property of PHINMA EDUCATIONName: Section: Schedule: Class number: Date: This is the phase of strategic planning where the environmental factors are taken into consideration. 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 key factors that are critical to creating strategies. The internal environment is the environment that exists within the organization and is controllable by the organization itself. The external environment is where the organization interacts, is outside of the organization, and is also uncontrollable by the organization. For example, the government. The organization has to follow government policies and it has no control over what the government sets as a rule. In order to find out these key factors, a SWOT analysis is usually conducted. SWOT stands for STRENGTH, WEAKNESS, OPPORTUNITY AND THREAT. STRENGTH and WEAKNESS are factors that can be observed in the internal environment, while OPPORTUNITY and THREAT are commonly observed in the
HRM 141: Strategic Management and TQM Student Activity Sheet Module #2This document is the property of PHINMA EDUCATIONName: Section: Schedule: Class number: Date: external environment. Tools such as the PESTLE analysis and Porter’s 5 Forces are also used in order to have a better understanding of the different environmental factors.Figure 2. The external and internal environment (source: Strategic Management by Wheelen and Hunger)2ndPhase: Strategy FormulationThis is the phase where you set strategic objectives and formulate strategies to achieve organizational and strategic objectives. Information gathered during environmental scanning phase is taken 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 achieve organizational goals. Activities included in the phase are defining or refining corporate vision and mission, identifying organizational orExternal environmentstrategic objectives, developing strategies, and creating policies inNatural Environment
HRM 141: Strategic Management and TQM Student Activity Sheet Module #2This document is the property of PHINMA EDUCATIONName: Section: Schedule: Class number: Date: order to enforce strategies. Formulation of strategies are 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.StrengthOpportunityStrategyThreatFigure 3. SWOT – Strategy relationship diagramWeaknessLooking at the diagram, you can already get an idea of what strategy means to each factor. For instance,strategies are particularly more doable when you utilize the organization’s strength. Take an organization that has a lot of money for instance. The easiest way it can lessen its competition isto use its money to buy off competitors. SM used the same concept to enter the banking industry. SM bought Banco de Oro in order to enter the industry, then merged with Equitable PCIto further expand its banking business.With weaknesses, they 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. SnR had no milk tea offering which is popular and in demand in the Philippines. Since they have no prior expertise with the product, it they can miss out on theAVOIDUTILIZEEXPLOITMINIMIZE
HRM 141: Strategic Management and TQM Student Activity Sheet Module #2This document is the property of PHINMA EDUCATIONName: Section: Schedule: Class number: Date: opportunity to make money from the said product. However, since it has a large network and high level of assets, SnR was able to ride the wave for the milk tea demand by offering 3 milk tea products that they do not have to manufacture themselves, but rather buy ingredients using their network, and make the product in house.Opportunities are reward gaining. Strategies to be 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 way of making new income streams for an organization. Take for example, the crisis of Covid-19. Businesses had to close and cease temporarily their operations, and once they were allowed to open, there were limitations on the capacity of businesses, particularly for the food industry. One way of coping was to strengthen delivery options for restaurants and food establishments. The courier industry saw this as an opportunity.Many couriers opened more local based operations to serve the sudden increase in the demand of food couriers.Threats, on the other hand, are external factors that can negatively impact the organization. They are events that can make it difficult for the 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. For example, Covid-19 has made it difficult for other businesses to survive. Some have cope with the pandemic, but many businesses struggled and were not able to continue, particularly, businesses that involve contact between people.3rdPhase: Strategy implementationThis phase is where an organization puts the strategies and policies into motion. This is done by coming up with programs, budget, and procedures. By implementing the strategies, it could mean a little change in list of products, or change in menu, up to a change in management, or organizational culture. Implementation is usually done by the middle-level and lower-level managers, and ultimately the rank-and-file, along with the supervision of top-level managers.4thPhase: Evaluation and controlThis 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 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.2)Activity 3: Skill-building Activities (with answer key) (18 mins + 2 mins checking) Exercise 1.
HRM 141: Strategic Management and TQM Student Activity Sheet Module #2This document is the property of PHINMA EDUCATIONName: Section: Schedule: Class number: Date: 1.List down the phases of strategic management according to their step in the process. Write them down on the upper portion of each box.2.Define each phase meaningfully. Write down your answers on the lower portion of the box.Exercise 2.Discuss in a meaningful and concise manner the relationship of strategy to:1.Strength3. Opportunity2.Weakness4. Threat3)Activity 4: What I Know Chart, part 2 (2 mins)Now, let’s check your knowledge on the phases of strategic planning. I hope that everything about the topic is clear to you. This time you have to fill out the What I Learned column.4)Activity 5: Check for Understanding (5 mins)Exercise 1. Draw a plus sign “+” on the space provided if you believe that the statement is TRUE.1. There are 4 phases in strategic planning.2. Strengths should be utilized when formulating strategies.3. There are 3 kinds of external environment.1st Phase2nd Phase3rd Phase4th Phase
HRM 141: Strategic Management and TQM Student Activity Sheet Module #2This document is the property of PHINMA EDUCATIONName: Section: Schedule: Class number: Date: 4. External environments are controllable by the organization.5. Organizational goals are set during the Environmental analysis.6. Weaknesses can make organizations more vulnerable to opportunities.7. According to the strategic management model, feedback only exists during the 4thphase.8. Strengths and weaknesses can be controlled by the organization.9. Threats are profit rewarding occurrences.10. Implementing strategies could mean organizational change.C.LESSONWRAP-UP1)Activity 6: Thinking about Learning (5 mins)A.Work TrackerYou are done with this session! Let’s track your progress. Shade the session number you just completed.B.Think about your Learning1.Three things you have learned from the lesson.2.Two things that you want to understand more about.3.One thing you would like to share with your classmates.FAQs1.Is it necessary to perform all activities under each phase?Yes. The activities under each phase translate the whole strategy into realistic and doable plans.2.Should strategies always relate to strengths, weaknesses, opportunities and threats?
HRM 141: Strategic Management and TQM Student Activity Sheet Module #2This document is the property of PHINMA EDUCATIONName: Section: Schedule: Class number: Date: Yes, as long as the strategies can. However, it is normal for an organization to not employ strategies with all these internal and external variables. An organization needs to prioritizewhen strategizing since it has limited resources. There are also variables that can be neglected if it has very minimal impact.There is also an issue of relevance. Not all identified threats and opportunities are relevant to the organization. In that case, one should identify whether variables are relevant to ensure that actions will not waste any resources.KEY TO CORRECTIONSExercise 11stPhase: Environmental Scanning – phase where environmental factors are taken into consideration. It involves identifying environmental and evaluating environmental variables.2ndPhase: Strategy Formulation – phase where you set organizational objectives and devise strategies in order to achieve said goals.3rdPhase: Strategy Implementation – phase where strategies are executed and policies are put in motion. This is done by devising actionable plans with programs, budgets and procedures.4thPhase: Evaluation and control – phase where results and outputs are monitored in order to check whether the strategies are able to achieve wanted results.Exercise 21.Strength – Strategies should utilize strength. This can help to achieve results in an effective manner.2.Weaknesses – Strategies should minimize weaknesses. Weaknesses make an organization vulnerable, thus minimizing them makes the organization more defense-capable.3.Opportunities – Strategies should exploit opportunities. Opportunities when exploited can become a profit-making activity.4.Threats – Strategies should help avoid threats. By avoiding threats, firms can lessen negative effects to it.Activity 51. +2.+3.4.5.6.7.8. +9.10. +
HRM 141: Strategic Management and TQM Student Activity Sheet Module #3This document is the property of PHINMA EDUCATIONProductivity Tip:―It’s not always that we need to do more but rather that we need to focus on less.‖ = Nathan MorrisName: Section: Schedule: Class number: Date: Lesson title: Levels of StrategyLesson Objectives: At the end of the lesson, I should be able to1.Differentiate between the levels of strategy2.Define the different corporate strategic options.Materials:References:Strategic Management, Wheelen and Hunger.A. LESSONPREVIEW/REVIEW1)Introduction (2 mins)What’s up, Ketchup?! Before we fully tackle the phases of strategic management in a deeper level, there are a few more concepts we have to understand.For this lesson, we will focus on the levels of strategy, also known as the hierarchy of strategy. We will define each one of them, and try to differentiate the three levels of strategy from one another. Shall we begin?2)Activity 1: What I Know Chart, part 1 (3 mins)What I KnowQuestions:What I Learned (Activity 4)1.What are the different levels ofstrategy?2.What is a business unit?3.What is a function?B.MAINLESSON1)Activity 2: Content Notes (13 mins)In Module 1, we defined strategy as an elaborate plan to achieve organizational or strategic goals. It is how an organization will make sure it would be able to reach its mission and objectives. There are three(3) levels in the hierarchy. Each level also represents the level of management involved in the strategy itself. These are: (1) Corporate level strategy, (2) Business level strategy, and(3) Functional level strategy.
HRM 141: Strategic Management and TQM Student Activity Sheet Module #3This document is the property of PHINMA EDUCATIONName: Section: Schedule: Class number: Date: Figure 1. Hierarchy of strategy by Wheelen and Hunger.1. Corporate level strategy – at this level, the main concern is the overall direction of the organization. Top level managers like the CEO and the Board of Directors need to plan on how they want the organization to move forward. Whatever is planned here will become the guide of the whole organization to which steps it will take towards the future. Mission and vision is particularly discussed or reviewed at this level. Strategic objectives are also specified by top level managers. Three main categories of strategy in this level is stability, growth, and retrenchment.Growth pertains to expanding the business. An organization might want to enter new industries, put up new businesses and business models, or add new products to its existing portfolio, or create better market share.Stability refers to sustaining current business. Businesses might want to focus on enhancing their product offering. They can also look into improving level of assets by cost cutting techniques, increasing operational efficiency and such.Retrenchment strategies are more conservative. This approach could mean cutting off expenses, decreasing production, divesting money from business, or ultimately, an exit strategy.Focus: Competitiveposition of a brandor productFocus: Mission VisionOrganizationalobjectives StrategicobjectivesFocus: utilizationof resourcesDevelopment ofcompetencies
HRM 141: Strategic Management and TQM Student Activity Sheet Module #3This document is the property of PHINMA EDUCATIONName: Section: Schedule: Class number: Date: 1.Business level strategy – strategies on the business unit level. At this level, the main concern is the competitive position of a certain business unit in a specific industry. For example, Jollibee Foods Corporation has different business units, all under the fastfood restaurant category, such as Jollibee, Greenwhich, Mang Inasal, Red Ribbon, Chowking, and added to their lineup is Burger King. Each brand is considered a business unit. The concern here is how each business unit can attain or sustain a competitive position against competitors. Let’s take a single business unit as an example. When Mang Inasal, entered the market, it offered unli-rice with its meals. The concept of ―lutong-bahay‖ fast food style brought out this idea, and gave it its competitive position ever since.2.Functional level strategy – this level pertains to strategies in the different functional areas of an organization such as marketing, human resource, operations, finance, accounting, research and development, and so on. The different departments can be universal amongst businesses but there are occasions where a business might have a different of set functions it performs. Strategies in this level contribute to achieving to business level and corporate level strategies. It is mainly concerned in creating or gainingcompetencies that will set up a competitive advantage for a business unit or a corporation. A very good example for this is 7-Eleven’s ability to judge to locations for potential businesses. 7-Eleven has become very keen in understanding which locations can be very viable for their expansion. Together with the products that they carry, this has given them a great competitive advantage against Mini-Stop and AlfaMart.These levels of strategy do not work individually. It is a scaling process, both downward and upward. This means that whatever is decided on a corporate level is communicated to the business unit and functional levels, and is interpreted to each level accordingly. In return, whatever happens at the functional level will dictate whether an organization can achieve its business level and corporate level strategies and objectives.As an example, let’s take McDonald’s who wants to expand its market by offering healthy alternatives to its consumers as a corporate level strategy. This would mean that on a business level, it has to expand its menu in order to accommodate vegetarian and vegan consumers. What McDonald’s did was to offer salads that does not shy away too much from the products that they are already using such as lettuce and tomatoes. On a functional level, Purchasing department now made sure to avail more raw materials to provide the planned products, marketing would now need to advertise their new products on appropriate channels, and operations will now customize their work stations in order to prepare for serving vegetable based products.Terms to remember!1.SBU (strategic business unit or more commonly known as business unit) – these are commonly
HRM 141: Strategic Management and TQM Student Activity Sheet Module #3This document is the property of PHINMA EDUCATIONName: Section: Schedule: Class number: Date: independently operating unit of business that is under a large organization. Althoughindependent, it plays an important role in achieving organizational goals. For smallerbusinesses, business units could mean their product lines/categories.2.Function – these are business activities/departments that are interdependent on one another in order to run a business unit. Different functions existing in an organization can differ from one another, according to their structure. Most common functions are management, marketing, human resource, finance, purchasing, logistics, production, and research and development.2)Activity 3: Skill-building Activities (with answer key) (18 mins + 2 mins checking)Exercise 1. Identify which level of strategy the activity belongs to. Write TL for top level, BL for business level, and FL for functional level.1. Communicating the vision of the company.2. Hiring of employees.3. Choosing a positioning strategy.4. Setting organizational goals.5. Developing competencies.6. Investing in business ventures.7. Gathering marketing intel.8. Establishing a mission statement.9. Developing brand image.10. Looking for brand partnerships.Exercise 2. Define the different strategic corporate options listed below in a brief and concise manner.1.Growth2.Stability3.Retrench
HRM 141: Strategic Management and TQM Student Activity Sheet Module #3This document is the property of PHINMA EDUCATIONName: Section: Schedule: 3)Activity 4: What I Know Chart, part 2 (2 mins)Class number: Date: Now, let’s check your knowledge on levels of strategy. I hope that everything about the topic is clear to you. This time you have to fill out the What I Learned column.4)Activity 5: Check for Understanding (5 mins)Exercise 1. Identification. Identify the term being described in each number.1. Level of strategy that concerns itself with competitive position.2. Corporate strategy that focuses on expanding the organization.3. This involves business actions such as cost—efficient methods.4. An independent operating unit under a larger organization.5. Level of strategy concerned with overall direction of organization.C.LESSONWRAP-UP1)Activity 6: Thinking about Learning (5 mins)1.Work TrackerYou are done with this session! Let’s track your progress. Shade the session number you just completed.2.Think about your Learning1.Do you think you were able to grasp and learn something new today? What are they? What helped you learn them? If not, why do you think so?2.Which parts of the lesson do you have difficulty understanding? Do you have questions about the lesson? List them down.FAQs1.Do business units exist in every organization?No, not necessarily. If a business is small, then it can be a single unit on its own. It can, however, consider its different product lines to be separate business units.
HRM 141: Strategic Management and TQM Student Activity Sheet Module #3This document is the property of PHINMA EDUCATIONName: Section: Schedule: Class number: Date: 2.Are growth, sustainability, and retrenchment the only corporate strategies available?No. there are several strategic options available for any organization, but they will be categorized among the three, in one way or another. These three strategies all general in nature. Corporate strategies will become much more detailed when performing strategic planning.KEY TO CORRECTIONSExercise 1.1. TL2. BL3. FL4. TL5. FL6. TL7. FL8. TL9. BL10. BLExercise 2.1.Growth – corporate strategy that focuses on expansion. Businesses can enter new industries, enter new markets, develop new products, or improve market share.2.Stability refers to sustaining current business. Businesses can focus on improving product quality to sustain competitive position, apply cost cutting techniques to protect and increase profit margins.3.Retrenchment refers to a defensive strategy. Businesses can cut cost, decrease production, or exit the industry.Activity 5.1.Business level strategy2.Growth3.Stability4.Business unit5.Top level strategy
HRM 141: Strategic Management and TQM Student Activity Sheet Module #4This document is the property of PHINMA EDUCATIONName: Section: Schedule: Class number: Date: Lesson title: Strategic typesLesson Objectives: At the end of the lesson, I should be able to:1.List down the different strategic types2.Define each strategic type3.Differentiate one strategic type to another.Materials:References:Strategic Management, Wheelen and HungerOrganization Strategy, Structure, and Process, Miles and SnowA. LESSONPREVIEW/REVIEW1)Introduction (2 mins)Hola! Are you enjoying learning Strategic Management? It sure is fun, isn’t it?Today, we will learn about strategic types. Learning about different strategic types helps an organization to predict what kind of actions competitors might take when you begin implementing strategies. It helps an organization assess the level of competitive intensity within a specific industry.2)Activity 1: What I Know Chart, part 1 (3 mins)What I KnowQuestions:What I Learned (Activity 4)1. What is a strategic type?2. What is a prospector?3. What is a defender?B.MAINLESSON1)Activity 2: Content Notes (13 mins)Miles and Snow argued that competing firms within a specific industry can be classified into four (4) strategic types. A strategic type is the firm’s general behavior when it comes to implementing strategies. By categorizing organizations into the different strategic types, you would be able to conclude or predict how different organizations willconduct themselves when facing the same situation. The strategic types are:1.Defenders – these are organizations who value efficiency. They have limited product lines orProductivity Tip:Keep a study routine. This helps you be more productive and focused!
HRM 141: Strategic Management and TQM Student Activity Sheet Module #4This document is the property of PHINMA EDUCATIONName: Section: Schedule: Class number: Date: categories, and does not usually push for innovation. Businesses under this type usually concerns itself with employing and improving cost-efficient methods. Most defender type organizations have already strong roots on specific markets and is keen on protecting their competitive positions within these markets. They focus on markets they are already prosperous in. One could say that a defender type, is a slow-and-steady type. Companies like ARC Refreshments, maker of RC Cola, are more likely to bedefenders. They don’t offer too much innovation, but rather focus on current products andlowering cost.2.Prospectors – competing firms that focus on innovation belong to this type. Prospectors have high appetite for risk, and lean toward creativity. Prospectors are heavilyinvested in marketing and research and development. Dynamic and competitive industriesand market tend to have prospectors. This is due to the ever-changing demand, thus organizations continuously moving from one product to another. Companies like Samsung and Apple are obvious prospectors. They try to beat each other through constant technological innovation, and trying to bring it to the market first.3.Analyzers – companies that are known to belong to this type tend to create a balance between innovation and efficiency. Quite difficult to attain, but when a firm is successful, itis easy for them to gain and control leadership in a market or industry space. It is commonfor analyzers to operate in at least two product-market areas, a stable one, and a dynamicone. In stable areas, they try to be efficient, while in dynamic areas, they try to be innovative. It is also common for analyzers to be efficient and innovative at the same time in a single product-market area. Analyzers avoid excessive risk but still pursue new markets and products. Jollibee can be put under analyzer. The firm likes to take hold in therestaurant industry, but also keeps exploring other industries such as infrastructure (i.e. CityMall).4.Reactors – firms that lack structure and consistency belong under reactors. They lack understanding in strategy and just keeps moving from one solution to another. It does not have consistency in its operations. They are often ineffective in responding to environmental changes and cannot do things efficiently. Reactors either go out of business or evolve into other strategic types.There is no specific type that will dictate the success of an organization. Miles and Snow noted that a company’s success can be attained realistically by establishing a systematic strategy that takes into account environmental factors.2)Activity 3: Skill-building Activities (with answer key) (18 mins + 2 mins checking)Exercise 1. Below is box of word/s that describe the different strategic types. Fill the columns with word/s that best describe each strategic type from the words below.InnovativeConservativeBalanceLack consistencyLacks structureIneffectiveAlways offeringnewCost-efficientProduct varietySingleproduct/market
HRM 141: Strategic Management and TQM Student Activity Sheet Module #4This document is the property of PHINMA EDUCATIONName: Section: Schedule: Class number: Date: focusRisk-averseRisk-takerVery calculatedrisksInnovative andefficientDifficult to attainDefenderProspectorAnalyzerReactorConservativeInnovativeBalanceLacks structureCost-efficientAlways offering newVery calculated risksIneffectiveSingle product/marketfocusProduct varietyInnovative and efficientLack consistencyRisk averseRisk-takerDifficult to attain3)Activity 4: What I Know Chart, part 2 (2 mins)Now, let’s check your knowledge about the different Strategic Types. I hope that everything about the topic is clear to you. This time you have to fill out the What I Learned column.4)Activity 5: Check for Understanding (5 mins)Exercise 1. Write T on the space before the number if the statement is correct. If it is incorrect, write F.1. Defenders want to protect their current market position rather than try new ones.2. Prospectors are slow-and-steady type of companies.3. Companies who don’t like to take risks are known as defenders.4. Firms with no structure for strategy usually ends up closing.5. Innovativeness carries low risk with it.6. Analyzers like to distance themselves from excessive risk.7. If businesses do not have a specific strategic goal, it ends up reacting to what comes next.8. Cost-efficient methods help defend a competitive position.9. Analyzers rely heavily on research and development.10. Dynamic industries and markets tend to create prospector firms.C.LESSONWRAP-UP1)Activity 6: Thinking about Learning (5 mins)A.Work TrackerYou are done with this session! Let’s track your progress. Shade the session number you just completed.
HRM 141: Strategic Management and TQM Student Activity Sheet Module #4This document is the property of PHINMA EDUCATIONName: Section: Schedule: Class number: Date: B.Think about your Learning1. Please read again the learning targets for the day. Were you able to achieve those learning targets. If yes, what helped you achieve them? If no, what is the reason for not achieving them?2.What question(s) do you have as we end this lesson?FAQs1.Can an organization belong to two strategic types?No. An organization would usually stick with a distinct style, but it can also change from type to another. It cannot, however, be classified into two types at once, since each type has a very distinct feature. An organization who can balance creativity and efficiency is already an analyzer.2.Can a reactor turn to other strategic types?Yes, definitely. If a reactor organization becomes more careful in planning and sets clear goals, it can start thinking for strategies to move forward that are aligned with its goals. Itshould be, however, permissible by their circumstance and resources.KEY TO CORRECTIONSExercise 1.DefenderProspectorAnalyzerReactor
HRM 141: Strategic Management and TQM Student Activity Sheet Module #4This document is the property of PHINMA EDUCATIONName: Section: Schedule: Class number: Date: ConservativeInnovativeBalanceLacks structureCost-efficientAlways offering newVery calculated risksIneffectiveSingle product/marketfocusProduct varietyInnovative and efficientLack consistencyRisk averseRisk-takerDifficult to attainActivity 5.1.T2. F3. T4. T5. F6. T7. T8. T9. F10. T
HRM 141: Strategic Management and TQM Student Activity Sheet Module #5This document is the property of PHINMA EDUCATIONProductivity Tip:It is always good to read other materials so that you could learn more!Name: Section: Schedule: Class number: Date: Lesson title: Approaches in Formulating StrategiesLesson Objectives: At the end of the lesson, I should be able to:1.Enumerate the different approaches in strategic planning.2.Differentiate the different approaches from one another.Materials:References:Fundamentals of Strategic Management, N.A. Orcullo, Jr.A. LESSONPREVIEW/REVIEW1)Introduction (2 mins)You might be wondering, “Is strategic management a rigid process?”. Well, here’s the news. There are different approaches in devising strategies. Today, we will explore those approaches.2)Activity 1: What I Know Chart, part 1 (3 mins)What I KnowQuestions:What I Learned (Activity 4)1. What is a top-bottomapproach?2. What is a bottom-topapproach?3. What is a top-bottom-topapproach?B.MAINLESSON1)Activity 2: Content Notes (13 mins)Approaches in formulating strategiesFormulating policies and strategies is not necessarily a one-man job for the organization, nor is the concern of only the top-level management. Everyone in the organization can contribute to strategic planning, however, dealing with and making sure everyone is involved is highly inefficient. There are, however, ways wherein the participation of everybody can be accounted for. Also, the initiative of devising policies and strategies commonly come from the top-level management. The approach on how to conduct strategic planning is up to them. The different approaches can be classified into three(3) categories:
HRM 141: Strategic Management and TQM Student Activity Sheet Module #5Name: Section: Schedule: 1.Top-bottom approach - is anClass number: Date: approach that starts from the top-level management. The plans and decisions are all according to what top-level managers think and visualize and the rank and file or the bottom-level management and employees are the ones who execute the strategy. This kind of approach usually aligns the whole organization to the wants and the vision of the top-level managers such as the CEO, Senior Executives, and the Board of Directors.Top-levelmanagementMiddle-levelmanagementBottom-levelmanagementRank andFilePlanningand formulationCommunicateFollow andFollow andTop-levelmanagementMiddle-levelmanagementBottom-levelmanagementRank andFileReview and finalizeCommunicatePlanning and2.Bottom-top approach – approach where the initiative to devisepolicies and strategies come from the bottom-level. After planning, the plan is then submitted to top- level management and they develop the policies and strategies according to plan. These plans shall now be enforced and followed by the bottom-level and rank and file.3.Top-bottom-top approach – the approach starts by the top-level management taking initiative in formulating policies and strategies, and afterwards, funneled down to the middle-level and bottom- level management in order to gather opinions and consults. Thishelps the top-level management understand concerns from the bottom-level who will execute hands-on the plan. By doing so, strategies and plans are refined from different point of views. From the bottom, it will be returned to the top-level for review and refining,approval. The approved plans will then be communicated and executed. The approach helps lessen resistance from the people in the organization, since they know that they area part of the whole planning process before it was executed.Planningand formulationTop-level managementMiddle-level managementReviewideas gathered, Revise planIt is the choice ofConsultBottom-level managementCommunicateThis document is the property of PHINMA EDUCATIONRank and File
HRM 141: Strategic Management and TQM Student Activity Sheet Module #5This document is the property of PHINMA EDUCATIONName: Section: Schedule: Class number: Date: an organization to settle with what approach they are comfortable with. Usually, choices preferred mirror the type of leadership and organization has. For organizations that are largely authoritative, they tend to stick with a conventional, top-bottom approach, while lenient corporations might use bottom- top approach in order to show appreciation for employees. The approach is quite unsuccessful if not thoroughly given thought, so it is not very popular with businesses. Top-bottom-top approach is ideal, but is a contemporary technique. Not so many organizations favor a very lengthy ideal process over a straight-forward efficient approaches.2)Activity 3: Skill-building Activities (with answer key) (18 mins + 2 mins checking) Exercise 1. Complete the table by writing down the information based on your notes.Top-bottomBottom-topTop-bottom-topWho initiates theprocess?Who executes the plan?Who finalizes the plan?Exercise 2. Answer the question in a meaningful manner. Justify your answer.It has been argued that a top-bottom-top approach is the best one to use? Do you agree? Why?Why not?.3)Activity 4: What I Know Chart, part 2 (2 mins)Now, let’s check your knowledge about the Approaches in Formulating Strategies. I hope that everything about the topic is clear to you. This time you have to fill out the What I Learned column.4)Activity 5: Check for Understanding (5 mins)Exercise 1. Write T if the statement is True and F if the statement is False.1. A top-bottom approach is known as a traditional approach.2. In bottom-top approach, the top-level managers either approve or reject strategic ideas.3. Using a top-bottom approach aligns the firm according to the vision of the bottom level.4. A top-bottom-top approach is the most ideal but very time consuming.5. All the rank and file and bottom level management execute the strategic plan.GatherFollow and
HRM 141: Strategic Management and TQM Student Activity Sheet Module #5This document is the property of PHINMA EDUCATIONC.LESSONWRAP-UP1)Activity 6: Thinking about Learning (5 mins)
HRM 141: Strategic Management and TQM Student Activity Sheet Module #5This document is the property of PHINMA EDUCATIONName: Section: Schedule: A.Work TrackerClass number: Date: You are done with this session! Let’s track your progress. Shade the session number you just completed.B.Think about your Learning1. Please read again the learning targets for the day. Were you able to achieve those learning targets? If yes, what helped you achieve them? If no, what is the reason for not achieving them?2. In today’s session, which part of the lesson was least clear to you?FAQs1.Can the approach to be used be particular to the type of the organization?Yes, it can be. For example, a top-bottom approach is very ideal for government agencies, wherein the ideas of the bottom level will be too confusing when considered. A non-profit organization that exists for specific reasons can use bottom-top approach much better, likea community sports team where the main consideration is the players and not organization itself.KEY TO CORRECTIONSExercise 1.Top-bottomBottom-topTop-bottom-topWho initiates the process?Top-level managementBottom-levelmanagement, rank and fileTop level managementWho executes the plan?Bottom levelmanagement, rank Bottom levelmanagement, rank Bottom levelmanagement, rank
HRM 141: Strategic Management and TQM Student Activity Sheet Module #5This document is the property of PHINMA EDUCATIONandandand
HRM 141: Strategic Management and TQM Student Activity Sheet Module #5This document is the property of PHINMA EDUCATIONName: Section: Schedule: Class number: Date: filefilefileWho finalizes the plan?Top level managementTop level managementTop level managementExercise 2.1. Yes, I agree that the top-bottom-top approach is the best one to use. It is very effective in gathering ideas from all the levels of the organization, and is advantageous when it comes to implementing strategic plans because the bottom-level managers would feel that they were part of the process in the strategic plan.Alternative answer:No, I do not agree that the top-bottom-top approach is the best one to use because it can take too much time, which is also a valuable resource for the organization. It can also be inefficient since there are so many ideas that would need to be considered. The process will take too long and make it difficult to implement strategies ahead of time.Activity 5.1. T2. T3. F4. T5. T
HRM 141: Strategic Management and TQM Student Activity Sheet Module #6This document is the property of PHINMA EDUCATIONProductivity Tip:After finishing this module, try to explain quickly what you have learned to others. This can helpyou retain your knowledge!Name: Section: Schedule: Class number: Date: Lesson title: Environment Scanning – STEEP AnalysisLesson Objectives: At the end of the lesson, I should be able to1.Identify the different factors in the Societal environment2.Evaluate whether a particular environmental variable is an opportunity or threat.Materials:Strategic Management, Wheelen and Hunger, pp. 101, 106, Table 4-1and 4-3.References:Strategic Management and Business Policy, Wheelen and HungerA. LESSONPREVIEW/REVIEW1)Introduction (2 mins)Hello there, future manager! Are you ready to learn more about the external environment? Be excited, because we are going to be productive today!Our lesson for today is Environmental Scanning, which starts with the STEEP analysis. Canyou take a guess what STEEP analysis is?2)Activity 1: What I Know Chart, part 1 (3 mins)What I KnowQuestions:What I Learned (Activity 4)1. What are the different variables in the external environment?2. What does STEEP stand for?B.MAINLESSON1)Activity 2: Content Notes (13 mins)1stPhase: Environmental ScanningIn Module #2, we defined environmental scanning as the phase where environmental factors are taken into consideration when doing a strategic plan. The purpose of environmental scanning is to identify key factors that would be crucial in developing a strategic plan. There are two (2) environments that an organization has to be aware of: 1. External environment and 2. Internal environment.
HRM 141: Strategic Management and TQM Student Activity Sheet Module #6This document is the property of PHINMA EDUCATIONName: Section: Schedule: Class number: Date: The external environment is made up of variables that are outside the control of the organization. Within this environment is where the organization exist. We identify the variables from the external environment as either a threat or opportunity. A threat is any environmental variable that could have a negative impact to the organization, while an opportunity is a variable that could become a profitable event for the organization. The external environment can be categorized into two: the SOCIETAL and TASK environment. The SOCIETAL environment consists of variables concerned with socio-cultural, technological, economic, ecological, and political-legal factors (STEEP), while the TASK environment variables revolve around industry concerns like the competition of firms, the availability of supply, etc. Figure 1. The external and internal environment (modified from Strategic Management by Wheelen and Hunger)External environmentNatural EnvironmentIn strategic planning, you have to use two (2) external environmental scanning tools: the STEEPAnalysis (also known as PESTEL Analysis) and the Porter’s 5 Forces Analysis. For this module, we will study on how to conduct a STEEP Analysis first.
HRM 141: Strategic Management and TQM Student Activity Sheet Module #6This document is the property of PHINMA EDUCATIONName: Section: Schedule: Class number: Date: What is STEEP Analysis?STEEP stands for SOCIO-CULTURAL, TECHNOLOGICAL, ECONOMIC, ECOLOGICAL, POLITICAL-LEGAL.This analysis tool allows an organization to look into external variables that could impact the organization, either in the short-run or the long-run. The analysis is done by looking for pieces of information that could be relevant to how the organization or business firm operates, categorizes them, and afterwards, identify the level of priority that each variable should have. The greater and the more immediate the impact of a certain variable, the higher it is on the priority list. To furtherunderstand STEEP, let’s dig deeper into each factor.Socio-cultural factors – these are variables that describe the values, norms, and the customs of a certain society. Discussed within the category are demographic variables such as birth rate, population, marital rate, mortality rate, morbidity rate, etc.Technological factors – technological variables that relate to the organization.These are problem- solving inventions, like new medicinal discovery, machines, newraw materials, patents, new ways of productions, enhanced systems, software,hardware, etc.Economic factors – variables that affect the value of materials, money, resources,information, etc. These can be exchange rates, GDP and GNP, interest rates, disposableincome, employment rate, etc.Ecological factors – includes physical resources, climate, weather, and any innate planetary variable.Political-legal – variables that affect an organization via government policies and laws. Political issues, government regulations, sanctions, international treaties, export and import policies, and such can affect how a business operates.Let’s try an example!Assume that we are running a school business here in the Philippines , and we want to understand the factors that could affect us as we pursue business growth. Let’s list down the variables in a table.Socio-culturalTechnologicalEconomicEcologicalPolitical-legal1. Education, particularly college degree is still very important, butemployers are1.Availability of online teaching online platformsare high, such as Google Classroom,1.Income is down due to pandemic and loss of jobs.2.People are 1.Rainy weather in August (start ofschool)1.Schools are being encouraged to move start of school year to August.
HRM 141: Strategic Management and TQM Student Activity Sheet Module #6This document is the property of PHINMA EDUCATIONQuipper and such,spending less to
HRM 141: Strategic Management and TQM Student Activity Sheet Module #6This document is the property of PHINMA EDUCATIONName: Section: Schedule: Class number: Date: demanding more for specific skills.2. Increasing demand to incorporate technology in schooling3. Covid-19 Pandemic disturbed the normal face to face routine forclassesand gadgets are widely used by students.ensure money for necessities3. Migration of students from private schools to public schoolsdue to loss of jobs.2. Emergency policy on limited face to face classes due to pandemic.Socio-culturalIn the Philippines, education is still deemed very important especially graduating with a degree. This mindset ensures that the rate of enrollees are still expected to be high since education cannot be neglected. Although the presence of Covid-19 pandemic expects theenrollees to decrease, there is still a large percentage of enrollees particularly in college. Alternative ways of learning are also need to be sought since the traditional mode will be limitedly available. Available technologies can be tested in order to overcome learning barriers due to the COVID-19 pandemic.TechnologicalThe current generation is a tech-native one. They are very familiar with the use of current technologies, particularly electronics. Smartphones are rampant with secondary-level and tertiary-level students.Tablets, on the other hand, are very popular with grade schoolers and toddlers. If schoolswant to take advantage of these gadgets, they need to think of ways to integrate these into school activities and curriculum.EconomicThe biggest challenge of private schools is the migration of students from private topublic schools due to lack of money for tuition fees. Compared to private schools,public schools have much lower fees to be paid for. For parents who lost jobs, thisbecomes their option.EcologicalSince most schools are being transitioned to an August – May school calendar, one problem with school operations, particularly here in the Philippines, is the weather. Rainy season usually starts
HRM 141: Strategic Management and TQM Student Activity Sheet Module #6This document is the property of PHINMA EDUCATIONName: Section: Schedule: around that time of the year and can affect the yearly school schedule. Political-legalClass number: Date: Urgent need for attention on limited face to face classes this school year due to COVID 19 pandemic.Alternatives have to be decided on if schools will operate through the pandemic crisis.These assessments can now help us in deciding how to deal with these external variables. When you are done with your assessment, you now need to consider whether a variable is either an OPPORTUNITY or a THREAT. I’ll do the first one for you! In socio-cultural, it says that education is deemed to still be very important, however, more corporations want to hire people with specific set of skills. This can be taken as an opportunity. Why? Because if we try to think about it, if we are a school who primarily focuses on academic, and has less focus on skills, we might get left behind if we do not offer curriculums that hone skills. However, that does not mean we cannot reform our curriculum to include specific skill sets. So, this can be an opportunity for the school to offer programs that also focus on honing skills in order to attract more students.Once finished with the STEEP Analysis, we move on to the next analysis tool, the Porter’s 5 Forces, which will be discussed in the next module.2)Activity 3: Skill-building Activities (with answer key) (18 mins + 2 mins checking)Exercise 1. Using the example in the lesson above, evaluate whether the different variables listed is an opportunity or threat. You can use the example given in the lesson as a guide, but do not use the example anymore as an answer. You may use the back of this page to write your answer.3)Activity 4: What I Know Chart, part 2 (2 mins)Now, let’s check your knowledge about STEEP analysis. I hope that everything about the topic is clear to you. This time you have to fill out the What I Learned column.4)Activity 5: Check for Understanding (5 mins)Exercise 1. Identify which factor the given specific variable belong to. Write S for Socio-cultural, T for technological, ECL for ecological, ECN for economical, and P for political-legal.1. The population rate in the Philippines is 1.4% annually.2. Weather changes are being felt as summer begins to start earlier the past 5 years.
HRM 141: Strategic Management and TQM Student Activity Sheet Module #6This document is the property of PHINMA EDUCATIONName: Section: Schedule: 3. Minimum taxable income has gone up from 10,000 to 20,000 Php.4. Revised sin tax from 7% to 15%.5. E-Books have become widely available.6. People are becoming more conscious about global warming.7. Global warming is changing the climate in the Philippines8. Implementation of Social Distancing policy.9. Disposable income has become higher due to tax reforms.10. NFC is now replacing the use of swiping machines for credit cards.C.LESSONWRAP-UP1)Activity 6: Thinking about Learning (5 mins)A.Work TrackerClass number: Date: You are done with this session! Let’s track your progress. Shade the session number you just completed.B.Think about your Learning1.Three things you have learned today.2.Two things you would want to know more about3.One thing you would like to share to your classmates.FAQs1.Is the political factor any different from the legal factor?Yes, there is a difference between the two. Although they are usually put together due to their nature, there are still differences between these two factors. For example, if a certain department of the government is pushing for a certain program to happen, that is political in nature. A new law that is
HRM 141: Strategic Management and TQM Student Activity Sheet Module #6This document is the property of PHINMA EDUCATIONName: Section: Schedule: implement, however, is a legal concern.2.Can an opportunity be a threat at the same time?Class number: Date: Yes and no. Yes, because you can see it in both perspectives, however, when we want to act upon it, we can only do so as either an opportunity or threat. The more common confusion is between a strength and opportunity. People tend to see an opportunity as strength, or vice versa. But there is a clear difference between them.KEY TO CORRECTIONSExercise 11.Increasing demand to incorporate technology in schooling has become more apparent.Schools are being encouraged to use technology in operating their classes. This can bean opportunity for schools to attract younger generation by making classes interactivethrough technology.2.Covid-19 occurrence has discouraged face to face contact. This meant finding new waysto interact with students. Most students and parents do not want to have physical schooling as it can pose danger to their health. This presents itself as a threat as the biggest and most efficient way operating schools is face to face classroom interaction.3.Online teaching platforms, particularly those that are free, can be viewed as an opportunity. This can help schools overcome the restriction with face to face classes.4.Lower income means that parents would have to think twice about sending their kids to school. For private schools, this is indeed a threat as lower income means insufficiency in providing tuition fees.5.Necessities become more important than ever, and will overshadow the need for education. It is indeed a threat, since most families would need to think first of providingbasic needs that education.6.Due to loss of income and jobs, students have begun migrating from private to public schools. For private schools this is indeed a threat. Schools need to find a way to bridgethose students who are lacking.7.Rainy weather in August will be inevitable. This can be considered a threat, however with the current pandemic, the presence of the rainy weather will less likely have an impact since face to face classes are limited.8.With the current pandemic, schools that are being urged to move to August will most likely have an easier time for transitioning. Since students will not be physically present at schools, facilities can be
HRM 141: Strategic Management and TQM Student Activity Sheet Module #6This document is the property of PHINMA EDUCATIONName: Section: Schedule: prepared better. This can present itself as anopportunity.Class number: Date: 9.Emergency policies for limited face to face classes due to pandemic means that facilities will be underused. Although the expenses will be cut, facilities of the school will need to be modified to fit the current setting. This can be considered a threat.Activity 5.1.S2.ECL3.ECN4.P5.T6.S7.ECL8.P9.ECN10. T
HRM 141: Strategic Management and TQM Student Activity Sheet Module #7This document is the property of PHINMA EDUCATIONProductivity Tip:Reading is essential for those who seek to rise above the ordinary – Jim Robin.Name: Section: Schedule: Class number: Date: Lesson title: Environmental Scanning – Porter’s 5 Forces Lesson Objectives: At the end of the lesson, I should be able to1.Enumerate the different forces in the industry.2.Evaluate the intensity of competition of the industryMaterials:Visit site: https://strategiccfo.com/porters- five-forces-of-competition/Strategic Management, Wheelen and Hunger, pp. 111-114 References:Strategic Management, Wheelen and HungerA. LESSONPREVIEW/REVIEW1)Introduction (2 mins)Welcome back bud! Did you practice performing the STEEP Analysis? That’s great! In this module, we will move to the next analysis tool known as the Porter’s 5 Forces. This gives us insight with what we call the TASK Environment. The tool helps us understand more from an industry perspective. Are you ready? Let’s jump in!2)Activity 1: What I Know Chart, part 1 (3 mins)What I KnowQuestions:What I Learned (Activity 4)1. What is a substitute?2. How does the number of buyers affect price?B.MAINLESSON
HRM 141: Strategic Management and TQM Student Activity Sheet Module #7This document is the property of PHINMA EDUCATIONName: Section: Schedule: 1)Activity 2: Content Notes (13 mins)Porter’s 5 ForcesClass number: Date: Porter’s 5 Forces is an analysis tool that tries to measure the intensity or level of competition of a certain industry. He argues that the joint measure of the different industrial forces help determine the potential for profitability in the industry, and that potential is measured by the long-term return of investment. The stronger the forces are, the lower the probability of potential for profitability in the industry. If the forces are strong, it makes it difficult for firms to put better prices on their products, and most likely spend money trying to create and sustain competitive advantages.Figure 1. Porter’s 5 Forces showing variables for each force (source: https://www.business-to-you.com/porters-five-forces/)The figure above shows the 5 Forces of the industry and the variables that are considered for each force. The different forces are more relevant with each other than it seems. All the other factors affect the existing level of rivalry/competition, and can somehow also affect each other.1.Rivalry – this force refers to the intensity of competition in the industry. This force is directly affected by all the other forces. High level of intensity of competition in an industry would signify difficulty in
HRM 141: Strategic Management and TQM Student Activity Sheet Module #7This document is the property of PHINMA EDUCATIONName: Section: Schedule: Class number: Date: succeeding in such industry. This means that the potential for profit becomes lower. There are a number of variables you can look at in order to determine the level of competitiveness. One indicator is the number of competitors. The higher the number of competitors, the higher the level of competition. Changing prices would instantly make competitors react to such move and may follow suit.2.Threat of new entrants – typically, an industry would have firms competing for long periods of time already. However, if an industry is attractive, it typically attracts new entrants. The goal is of course to gain share over the profitable market. The number of new entrants, however, are limited according to the entry barriers existing in the industry. High entry barriers help lower new entrants, and as it goes lower, it typically attracts more entrants. For example, capitalization. High initial capital requirements tend to be a high a barrier for new entrants. That is the case with hospitals. They are very difficult to enter into since the amount needed is very high. Land and construction alone is very expensive, much more are the equipment needed to provide medical services.3.Threat of substitute products – substitutes are products that appear to be different from your usual product, but can perform the same or satisfy the same need. Take for example, bottled mineral water. It can be a substitute for soda. Bottled mineral water can quench thirst the same as any other soda. If substitutes are available, it can steal some of the market share a particular product is enjoying. The presence of substitutes can also limit the price firms can place on their products. If products become more expensive, consumers will begin seeking substitutes that have lower prices. Ultimately, the presence of strong substitute dictates a high level of threat.4.Bargaining power of buyers – buyers can influence the prices of products. This can happen if some conditions are met. The previous image shows some variables that affect bargaining power of buyers. For example, if the number of buyers is few, they can have a greater influence on the prices, especially when other brands or substitutes are present. Otherwise, if the number of buyers is really high, they can have a lower impact on prices, given other factors are constant.5.Bargaining power of suppliers – suppliers can affect prices in a similar way the buyers can. Given that some conditions are present, suppliers can influence prices. For example, when there are only few suppliers, but they are selling to many, the suppliers gain more freedom in charging prices with their products. Take for example premium housing subdivisions. Since there are only a few competitors, and a lot to sell to, they can impose better or higher prices for their products.Remember!1.The forces commonly affect one another, meaning, if one of the forces goes high, another force might follow the same trend. The forces are usually rated “High”, “Moderate”, or “Low”, or you can also
HRM 141: Strategic Management and TQM Student Activity Sheet Module #7This document is the property of PHINMA EDUCATIONName: Section: Schedule: use “Strong”, “Moderate”, or “Weak”.Class number: Date: 2.When an industry is given a high or strong rate, it means that the industry is quite unattractive and that the potential for profitability might be low, or return of investment can take too long. This can be your indicator whether you should enter the industry. If you are already participating in the industry, this can help determine your competitive position.2)Activity 3: Skill-building Activities (18 mins + 2 mins checking)Exercise 1. Below is a list of industry information for the soft drink industry. Classify the given pieces of information according to the force they belong to. Write down your answers on the table provided below.Industry Information of Soft drink IndustryInitial investment: 20M PhpMarket size: 20 M per yearPresence of carbonated fruit juiceAbundant supply of raw materialsDifference of product quality of brands is minimalLow brand loyaltyBuyers tend to buy other brands if the usual is not availableLogistics provider is easily accessibleConsumers switch brands when pricedifference becomes more than 10%Carbonated juice, bottled water, and tasty energy drinkshave either similar or lower pricesIndustry decline is at 2.5% annuallySuppliers’ products are easily replicated.RivalryThreat of substitutesThreat of new entrantsBargaining power of buyersBargaining power of suppliersExercise 2. Given the pieces of information for the soft drink industry above, create an industry analysis showing the intensity of competition for the said industry.1.Threat of substitutes
HRM 141: Strategic Management and TQM Student Activity Sheet Module #7This document is the property of PHINMA EDUCATIONName: Section: Schedule: Class number: Date: 2.Threat of new entrants3.Bargaining power of buyers4.Bargaining power of suppliers5.Intensity of rivalryDecision/Analysis
HRM 141: Strategic Management and TQM Student Activity Sheet Module #7This document is the property of PHINMA EDUCATIONName: Section: Schedule: Class number: Date: 3)Activity 4: What I Know Chart, part 2 (2 mins)Now, let’s check your knowledge about Porter’s 5 Forces. I hope that everything about the topic is clear to you. This time you have to fill out the What I Learned column.4)Activity 5: Check for Understanding (5 mins)Exercise. Write T if the statement is True and F if the statement is False.1. Intensity of rivalry is affected by all the other forces.2. A strong rivalry among competitors would signify a great profit opportunity.3. The number of buyers can help determine the bargaining power of suppliers.4. If substitutes are less costly, consumers are less likely attracted to it.5. A high barrier of entry would mean that the business is easier to put up.C.LESSONWRAP-UP1)Activity 6: Thinking about Learning (5 mins)A.Work TrackerYou are done with this session! Let’s track your progress. Shade the session number you just completed.B.Think about your Learning1.Do you think you were able to grasp and learn something new today? What are they? What helped you learn them? If not, why do you think so?2.Which parts of the lesson do you have difficulty understanding? Do you have questions about the lesson? List them down.
HRM 141: Strategic Management and TQM Student Activity Sheet Module #7This document is the property of PHINMA EDUCATIONName: Section: Schedule: FAQsClass number: Date: 1.Are substitute products always cheaper?No, not necessary. When the substitutes available are cheaper, it can affect consumer’s tendency to buy them. There are instances, however, that substitutes become more expensive, thus lessening the probability of consumers switching to them.2.Are there barriers to exit?Yes. Barriers to exit are also present, and varies from industry to industry. A high barrier to exit would mean that exiting the business is not easy to do. This is common with businesses that have very specialized machines that can only perform a single or few function.KEY TO CORRECTIONSExercise 1.RivalryThreat of substitutesThreat of new entrantsBargaining power of buyersBargaining power of suppliersDifference of product quality is minimalPresence of carbonated fruit juiceInitial investment:20MMarket size: 20 M per yearAbundant supply of raw materialsIndustry decline is at 2.5% annuallyCarbonated juice, bottled water, andtasty energy drinks have either similaror lower pricesLow brand loyaltyBuyers tend to but other brands if the usual is not availableSuppliers’ productsare easily replicated.Logistic provider is easily accessibleConsumers switch brands when pricedifference becomes more than 10%Exercise 2.1.Threat of substitutes - Presence of carbonated fruit juice can cut into the market share of the industry. There is also the threat of bottled mineral water and energy drinks. The availability of these products helped to offer more variety in consumer drinks. When consumers are buying and are craving for new flavors, these products cut into the line. Overall, there is a moderate threat of substitutes.2.Threat of new entrants - Initial capitalization is moderately high for the soft drink industry. With capitalization as high as 20 M and too many brands to choose from, the return of investment can be slow. Most brands also come from the same companies that produce soft drinks with variations in
HRM 141: Strategic Management and TQM Student Activity Sheet Module #7This document is the property of PHINMA EDUCATIONName: Section: Schedule: Class number: Date: flavor. Even though brands are crowded in the marketplace, getting your product into the market is much easier due to easy access to logistics, together with a low brand loyalty, people will try new products. Altogether, the threat of new entrants is high.3.Bargaining power of buyers - Large consumer base of 20 M consumers a year makes pricing a little more controllable, however, buyers can buy other brands as easily when prices are too high or product is not available. This situation can signify a moderate level of bargaining power for buyers.4.Bargaining power of buyers - The abundance of suppliers and the lack of specialty in the products of suppliers erases any leverage for them. This can contribute to a low bargaining power of suppliers.5.Rivalry - With the lack of difference in the quality of products, and no apparent product advantage makes the competition very strong. The decline of the industry would make the competition stronger since, existing competitors would fight hard to make sure they do not lose consumers/market share. Overall, the level of rivalry becomes strong.Decision/AnalysisOverall, the competitiveness of the industry is moderate to high. This makes the industry unattractive and profitability can be lower than expected. The advice to enter the industrywould be probable if the firm has a product offering that creates a gap in quality difference amongst existing competitors.Activity 5.1. T2. F3. F4. F5. F
HRM 141: Strategic Management and TQM Student Activity Sheet Module #8This document is the property of PHINMA EDUCATIONName: Section: Schedule: Class number: Date: Lesson title: Environmental Scanning – Vision and Mission Lesson Objectives: At the end of the lesson, Ishould be able to:1.Define mission and vision.2.Enumerate what makes a good mission-vision.3.Design an effective mission-vision.Materials:References:Strategic Management and Business Policy, Wheelen and Hungerhttps://lsaglobal.com/blog/5- components-4-criteria-effective- strategic-vision/https://strategicmanagementinsight. com/tools/mission-statement.htmlA. LESSONPREVIEW/REVIEW1)Introduction (2 mins)Goals are essential for organization. When an organization have goals to strive for, they continually work in order to attain those. Goals also help determine whether certain actions are necessary or not.The topic for this module is Vision and Mission. They are part of the essential goals an organization wants to achieve. Be excited, and brain it up!2)Activity 1: What I Know Chart, part 1 (3 mins)What I KnowQuestions:What I Learned (Activity 4)1 What is a vision statement?2 What is a mission statement?3 What is the purpose of a missionstatement?B.MAINLESSON1)Activity 2: Content Notes (13 mins)Strategic point of viewProductivity Tip:Try to keep a book of reference beside you. This will help you learn easier when studying on your own!
HRM 141: Strategic Management and TQM Student Activity Sheet Module #8This document is the property of PHINMA EDUCATIONName: Section: Schedule: Class number: Date: You must be thinking, “What is the relationship of strategy to vision and mission?”. An organization that does not have any vision-mission is an organization that can get easily lost. These organizations do not have focus, and therefore, they do not know which activities they should perform. They usually end up doing anything and everything. Given the limitations of resources of an organization, doing everything can be a little out of reach. Ultimately, the vision and mission is the guide of the actions of an organization. Strategies set in place will be directed towards achieving these organizational goals.The Mission and Vision StatementMission- is a statement that defines what an organization does.- it tells the purpose of an organization- it dictates what kind of business/es an organization is participating in.-it is “who we are and what we do”.The mission is the core purpose of an organization. It tells you what a company does. According to Peter Drucker, the mission statement is the primary guide in developing plans and strategies. A mission statement tells you whether every organization action or activity is supposed to be done.Vision-is what the organization sees for itself in the future.-the organization works toward this ultimate goal.-it is “what we want to be”.The vision statement is the overall direction of the organization. It provides asthe ultimate goal of any organization. In a practical sense, it is where you want to be in the future. If the VISION is ta place you want to be in the future, your MISSION is what will bring you there. Visionstatements are better when they are easy to memorize and take to heart. Many companies today create modern vision statements with a few lines.The assessment of an organization starts here. We try to understand our current situation,and then we measure it up to our vision. Are we any closer to our vision? If not, then ask yourself, “what are welacking?”, “what is it that we need to do?”. This helps identify the gap between your current status and
HRM 141: Strategic Management and TQM Student Activity Sheet Module #8This document is the property of PHINMA EDUCATIONName: Section: Schedule: the vision that you want.How do you make a good mission statement?Class number: Date: Some organizations do not have a separate vision and mission statement. They might have one single statement that might signify as their mission-vision. Some have what they call their creed or credo which sums up their mission and vision.Examples of Mission statement:1.SM SupermallWe provide the family fun mall experience (1)(2) that makes every day better for all. Together with our partners and employees (7) , we commit to a better quality of life forthe communities we serve byAn effective mission statement should include the following components:1.Customers – Who are you serving?How do they benefit from you?2.Products or services – What are your main product offering? What is unique about them?3.Markets – Where are your markets in terms of geography? Worldwide? Local?4.Technology – Technology/competency you use to deliversatisfaction to your consumers.5.Concern for survival – Commitment togrowth and sustainability.6.Philosophy – What are your core values guiding the organization?7.Self-concept – Competitive advantage that help you deliver your promise.8.Concern for public image – Socialand ethical responsibility of the firm.9.Concern for employees – How doyou treat your employees?Aneffective vision statement should have the following characteristics:1.Future-oriented – Your vision should state what you want in the future.2.Inspiring and challenging – Your vision should push people forward3.Customer-product-technology oriented – Organization’s vision should be clear on what it wants to offer to who in the future.4.Core values – vision should reflect the core values of an organization5.Ambitious – Vision should always be motivating. It should be something big but achievable and doable.6.Competency – vision is clearer when you include the competitive advantage or the competency that you have in order to perform as an organization.
HRM 141: Strategic Management and TQM Student Activity Sheet Module #8This document is the property of PHINMA EDUCATIONName: Section: Schedule: Class number: Date: supporting programs and activities that are socially responsible and environmentallysustainable (6)(8).2.Coca Cola – Their vision is more of a mission.Our vision is to craft the brands and choice of drinks that people love, to refresh them in body & spirit (1)(2). And done in ways that create a more sustainable business (5) and better shared future that makes a difference in people’s lives, communities and our planet(6)(8).Examples of vision statements:1.IKEA (ever present vision)To create better everyday life for the many people.2.AmazonTo be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online, and endeavors to offer its customers the lowest possible prices.Tips to Remember!1. When formulating your mission statement, a broad but clear statement is better. A broad perspective lets the organization leave room for growth, and does not strictly limit the business ventures it can enter.2)Activity 3: Skill-building Activities (with answer key) (18 mins + 2 mins checking) Exercise 1. Write what is being asked for.A.Give 5 components of an effective mission.1. 2. 3. 4. 5. B.Give 5 characteristics of an effective vision.1. 2. 3.
HRM 141: Strategic Management and TQM Student Activity Sheet Module #8This document is the property of PHINMA EDUCATIONName: Section: Schedule: Class number: Date: 4. 5. Exercise 2. Below is a mission statement. Identify which parts are present that make it an effective mission statement. Underline the words/phrase and write the number that corresponds to your answer. Use the notes above for reference.Toyota will lead the way to the future of mobility, enriching lives around the world with the safest and most responsible ways of moving people. Through our commitment to quality, constant innovation and respect for the planet, we aim to exceed expectations and be rewarded with a smile. We will meet challenging goals by engaging the talent and passion of people, who believe there is always a better way.3)Activity 4: What I Know Chart, part 2 (2 mins)Now, let’s check your knowledge about the Mission and Vision statements. I hope that everything about the topic is clear to you. This time you have to fill out the What I Learned column.4)Activity 5: Check for Understanding (5 mins)Exercise 1. Identify the terms being described in each number.1. Part of mission statement that pertains who your buyers are.2. Characteristic of vision describing how big your vision should be.3. This signifies the location of your consumers in your mission statement.4. Part of mission that portrays sustenance of the organization.5. Described as “what the organization wants to be”.6. Part of vision which talks about the values of the organization.7. Part of the mission statement describing the core values of the organization.8. Known as the purpose statement.9. It tells the overall direction of an organization.10. Tells people what an organization does.C.LESSONWRAP-UP1)Activity 6: Thinking about Learning (5 mins)A.Work TrackerYou are done with this session! Let’s track your progress. Shade the session number you just completed.
HRM 141: Strategic Management and TQM Student Activity Sheet Module #8This document is the property of PHINMA EDUCATIONName: Section: Schedule: Class number: Date: FAQsB.Think about your LearningThree important things you learned today1.2.3.Two things you would like to learn more about1.2.One thing you would like to share to your classmates1.1.Do small businesses also have a mission-vision?Not all businesses have a vision-mission statement, but all business SHOULD have one. Anorganization that has no mission-vision most likely would have difficulty to grow in a larger scale. If you want direction for your organization, then having a mission-vision is a must.2.Do you always need to have the mission-vision separately?No, not necessarily. Although it is easier for organizations to have separate statements forthe mission and vision, some organizations put them altogether as one. One example is Johnson & Johnson who uses a credo instead of two separate mission and vision statements.KEY TO CORRECTIONSExercise 1A.1.An effective mission statement should describe its consumers.2.An effective mission statement should include its product offering.3.An effective mission statement should identify the geographical characteristics of its consumers.4.An effective mission statement should include their competitive advantage.5.An effective mission statement should put their philosophy in it.
HRM 141: Strategic Management and TQM Student Activity Sheet Module #8This document is the property of PHINMA EDUCATIONName: Section: Schedule: Class number: Date: Exercise 1B.1.An effective vision statement should be futuristic. It should let you visualize something youwould like to achieve in the future.2.An effective vision statement should inspire and challenge people. It should push people to do better until they achieve the vision.3.An effective vision statement should include its core values or principles.4.An effective vision statement should be ambitious. It should be big enough of a goal to motivate people.5.An effective vision statement should include its competencies that will help them achieve the vision.Exercise 2.Toyota will lead the way to the future of mobility(2), enriching lives around the world(3) with the safest and most responsible(6) ways of moving people(1). Through our commitment to quality, constant innovation(4,7) and respect for theplanet(8), we aim to exceed expectations and be rewarded with a smile. We will meet challenging goals (5) by engaging the talent and passion of people(9), who believe there is always a better way.(6)Activity 5.1.Customer2.Ambitious3.Markets4.Concern for survival5.Vision6.Core values7.Philosophy8.Mission 9.Vision10. Mission