Central Luzon State University
Science City of Muñoz 3120
Nueva Ecija, Philippines
Instructional Module for the Course
Strategic Management
Module 1
Overview of Strategic
Management
In this module, we will focus on providing you an
overview of Strategic Management, its significance and scope. You
are expected to develop a clear understanding of the topic upon
completing this module.
Objectives:
Upon completion of this module, you are expected to:
• Describe the nature and concept of strategy and
Strategic Management
• Discuss the stages of a Strategic Management
• Determine the different impact of using Strategic
Management in an organization.
A. Strategy
-
A process of translating perceived opportunity into successful outcomes,
by means of purposive action sustained over a significant period of time
(White, 2004, p. 5).
A set of goal-directed actions a firm takes to gain and sustain superior
performance relative to competitors. (Rothaermel, 2017, p. 6)
The ideas, decisions, and actions that enable a firm to succeed. (Dess
et al., 2019, p. 6)
The means by which long-term objectives will be achieved. (David &
David, 2015, p. 40)
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MNGT 3108: Operations Management
B. Strategic Management
According to David & David (2015) indicated that Strategic Management is
the art and science of formulating, implementing, and evaluating crossfunctional decisions that enable an organization to achieve its objectives (p.
33). While for Dess et al. (2019) they have described that as it consists of the
analyses, decisions, and actions an organization undertakes in order to create
and sustain competitive advantages (p. 6).
Dess et al. (2019) presented the four attributes of Strategic Management:
1. Directs the organization toward overall goals and objectives;
2. Includes multiple stakeholders in decision making;
3. Needs to incorporate short-term and long-term perspectives;
4. Recognizes trade-offs between efficiency and effectiveness (pp. 7-8).
C. Stages of Strategic Management
The strategic management process consists of three stages:
1. Strategy formulation includes developing a vision and a mission,
identifying an organization’s external opportunities and threats,
determining internal strengths and weaknesses, establishing long-term
objectives, generating alternative strategies, and choosing particular
strategies to pursue;
2. Strategy implementation requires a firm to establish annual objectives,
devise policies, motivate employees, and allocate resources so that
formulated strategies can be executed;
3. Strategy Evaluation comprises reviewing external and internal factors
that are the bases for current strategies, measuring performance, and
taking corrective actions (David & David, 2015, p. 34).
D. Benefits of Applying Strategic Management
The primary benefit of strategic management has been to assistance
organizations in formulating better strategies through the use of more
systematic, logical, and rational approach for decision making. Furthermore,
Strategic management allows an organization to be more proactive than
reactive in shaping its own future; it allows an organization to initiate and
influence (rather than just respond to) activities—and thus to exert control over
its own destiny.
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MNGT 3108: Operations Management
a. Financial
- Improvement in Sales;
- Profitability;
- Productivity.
b. Non-Financial
- Enhanced awareness of external threats;
- Improved understanding of competitors’ strategies;
- Increased employee productivity;
- Reduced resistance to change;
- Clearer understanding of performance–reward relationships (David
& David, 2015, pp. 44-45).
References
David, F.R., & David, F.R. (2015). Strategic Management: A Competitive
Advantage Approach, Concepts & Cases (15th ed.). Pearson Education
Limited.
Dess, G.G., McNamara, G., Eisner, A.B., & Lee, S. (2019). Strategic Management:
Text and Cases (19th ed.). McGraw-Hill Education.
Rothaermel, F.T. (2017). Strategic Management (3 rd ed.). McGraw-Hill Education
White, C. (2004). Strategic Management. Palgrave Macmillan
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