STRATEGIC MANAGEMENT

MAY-ANN L. MARTIN

BSPA-3B

MODULE -1

LEARNING ACTIVITIES

A. Answer the following questions. Encode your answers in a short bond paper. (20 pts each)
1. Explain the importance of strategy in business organization.

Importance of strategy in business organization helping you identify your strengths

and weaknesses, an effective strategy will help you decide where your efforts and resources
are best spent. These decisions are crucial in ensuring your business has a profitable and
sustainable future explain us on how a business organization can gain more advantage with
other business organizations. A business strategy encourages businesses to introspect. It
offers a guide on how your business is performing internally and externally. Businesses that
can identify their strengths and weaknesses understand themselves better. This is crucial to
gaining a competitive advantage and securing future profitability.

2.Dicuss on how a business organization can gain more advantage with other business
organizations.

To maintain a competitive advantage in business, the points mentioned below might be of

assistance: Proper Investment: It’s necessary to identify the expertise of the area in which
the business excels than the other co-players in the market. With each passing day, there
are numerous innovations in infrastructure, technology, and new trends. By investing in all
the appropriate sectors, the business can experience a significant boost in the market. Build
a Strong Financial Stability: Monitoring the cash inflow and outflow is another significant
aspect of competitive strategy. As an efficient leader, it is vital to check any cash outflow
which can put the organization in financial jeopardy. Financial stability is the factor that
decides the existence of the company in the market. Hence it is always advised to
strengthen the company financially. Watch Out for Evolving Technologies: Technological
trends define the course of the market in the upcoming fiscal years. It’s not only necessary
to know about them but also to implement them in the business process to improve the
products and services. New-age technologies such as digitization, robotics, AI and MI
intelligence can benefit the business by improving the expertise of the business significantly.
Recognize Value of Customers: Customers decide the rise and fall of the empires in the
market. Reach out to maximum customers and try to get their feedback about particular
products and services. Interact with them about how to improvise your current products
and services. By reaching out maximum customers over time will not only give the business
a significant hike in revenue generation but will also help in creating a brand name. Work on
Self Improvement: As a business leader, it is obligatory to compete with self. Analyze the
factors that have helped your growth over the years and the ones which have hindered your
flow. The quality of products and services need to be improvised over time or5 else the
company will fade away from the market. Just like chess players might compete against
themselves as practice, you should challenge yourself to improve each day. If you achieved
great results for one client, try setting the goal of achieving even better results for the next
one, and strategize ways you can build off your takeaways from each previous engagement.
The key here is to learn from your successes and failures so you can double down on your
success and maintain a sharp competitive edge. Learn from Competitors: Thanks to the
advancement of the internet, we all are keeping track of each other. It is intelligent to use
time and money to research and learn about the innovations happening in the business
sector. Learn from the rise and downfall of the other companies. Think about new ideas that
can give you an edge in the industry. Keep innovating. Lon Musk recently defended the
importance of relentless innovation, saying, “If your only defense against invading armies is
a moat, you will not last long. What matters is the pace of innovation – that is the
fundamental determinant of competitiveness.” Ultimately, you achieve this by putting in the
time to practice and hone your craft. This gives you the confidence and the intuition to
adjust each time you face a new challenge, because things never happen the same way
twice – you always need to be able to adapt knowledge to new situations. So, if you are still
looking for your competitive advantage, be sure to keep these tips in mind. Ultimately, it
comes down to narrowing and refining your expertise, selecting the right clients and
continuously adapting to new situations. As long as you keep this up, you’ll keep a
competitive edge that no one else can beat – despite their attempts to try.

3.Explain: The relevance of predicting the future of the business organization.

Forecasting helps you predict potential issues, make better decisions, and measure
the impact of those decisions. Predicting the future is an important part of designing an
artificial driving intelligence. It allows us to evaluate the quality of a given action and
reason about scene dynamics: predicting how other pedestrians and cars will act around
us. Forecasting is valuable to businesses so that they can make informed business
decisions. Financial forecasts are fundamentally informed guesses, and there are risks
involved in relying on past data and methods that cannot include certain variables and it
is the process of projecting past sales demand into the future. Implementing a
forecasting system enables you to assess current market trends and sales quickly so that
you can make informed decisions about the operations.

4.How to organize the best strategy for the organization? Explain your answer.
Organization is key
Before we dive into this topic, I have to ask… are you running your projects, or are your
projects running you? I’ll admit when I first got my start back in 2017, my life was
definitely the latter. So, here’s a little about me: I’m currently balancing a full-time
career along with two businesses as a self-published author and lifestyle influencer. It
sounds like a lot, I know. One of the most frequent questions I’m asked is, “How are you
able to balance it all?” I have one word: organization. Being organized allows me to
manage and balance my projects without feeling constantly overwhelmed or
overworked. Being organized can also help you:1)Save time 2)Eliminate distractions
 3)Minimize stress and anxiety 4)Increase your productivity 5)Improve your focus. One of
the best pieces of business advice I learned is to make it less about the hustle and more
about the strategy. And guess what? When you’re strategizing, you’re organizing!

5.Why is it necessary that a business organization have sources of competitive

advantage? How can the business organization sustain its competitive advantage from
its rival organizations? Expound your answer.
Importance of Competitive Advantage ,It contributes to higher prices, more
customers, and brand loyalty. Establishing such an advantage is one of the most
important goals of any company. In today's world, it is in essential to business success.
Without it, companies will find it difficult to Advantage and explain some problems that
the business organization may encounter in developing strategy for the future. Having a
competitive advantage over your competition is essential to business success because: It
can contribute to higher profit margins. It may help attract more customers more
frequently. It helps maintain brand loyalty. Sustainable competitive advantages are a set
of assets, characteristics, or capabilities that allow an organization to meet its customer
needs better than its competition can. Sustainable competitive advantages are difficult
to duplicate or replicate.
Company with a patent on a technology may be able to sustain its competitive
advantage because rival firms cannot duplicate the product or service the company
offers. Even this advantage may not be permanent because competitors can develop
technological breakthroughs of their own. Maintaining a sustainable competitive
advantage requires flexibility in the marketing mix when facing uncertain competitive
environments. It is difficult to create a sustainable competitive advantage, but it can be
done by being a first-mover in a market or by offering the highest quality products. The
best way to achieve and sustain a competitive advantage is by consistently producing
top-quality products and services. Companies like Toyota, BMW, Nike, Apple, etc. work
very hard to achieve and maintain the highest possible standard of quality in everything
they do. They have a very elaborate system of checking their product & service quality
and getting feedback from customers. These companies follow what is known as the
process of continuous improvement. First, you have to develop a detailed process for
everything you do – processing a customer’s order, producing, assembling and testing
every product, processing invoices, purchase orders, customer complaints, etc. Then
they have quantifiable, measurable goals for each process so they can determine what
level of efficiency and customer satisfaction each process achieves. The next step is to
look for any step in the process that can be improved so they can achieve even greater
efficiency and eliminate waste. The combined effect of such dedication and laser-like
focus on the measurable performance parameters leads to competitive advantage over
those who do not operate with such dedication.

6.Enumerate and explain some problems that the business may encounter in developing strategy for
the future.

The five most common challenges in executing a strategic plan are:

 1. Poor goal setting –Strategic goals are often large and complex objectives that almost always
require many resources scattered across many departments and locations to accomplish
them. Establishing clear goals across teams will result in more clarity on priorities and
responsibilities. Ensure that your entire organization has adopted a goal-setting
methodology.
2.Lack of alignment –Even with proper goal-setting, teams and people can be challenged with a
lack of alignment that typically causes prioritization issues and collaboration conflict that can
derail the day-to-day work to achieve the strategic goal. The biggest cause of strategic
misalignment is the nonstrategic work that people are so used to doing.
3.Inability to track progress –Many organizations are still using spreadsheets to track objectives.
This can work between a manager and employee, however, these systems do not make it easy
to aggregate results or create transparency. Worse, their use limits the ability to real-time
manage the attainment of strategic goals. Consider using strategy execution platforms such as
Tanics, AchieveIt or Rhythm Systems to change the way this game is played.
4.People not connected to the strategy –People in general like order and routine, so we are
more likely to fall into an operational tactical focus where our efforts can result in immediate
results. Unfortunately, strategic goals are rarely this easy and small in scope, so how do we get
people working differently? The best way is to connect people more closely to strategy by
aligning professional goals with personal interests. For example, learning new skills, having more
responsibility, working with different people and teams, working outside their department on
what we refer to as “strategy teams.”
5. No measurements or leading indicators –The old proverb, “You manage what you measure,”
is paramount to strategy execution. Without measurement, how do you manage the people and
issues that can derail a strategic goal? You must set measurable goals, track them and manage
them Having leading indicators like predictive analytics stimulates the management discussions
at all levels.

B. Assignment.

1. The internet, search for success stories, “Life of a successful manager, What effective
manager really do?” (
A great manager is someone who can motivate their team to achieve results, while
also caring about their individual development and wellbeing. There are a few key things
that you can do to become a great manager:1. Set clear goals and expectations for your
team, and ensure that everyone is always aware of what needs to be done in order to
meet those goals.2. Encourage your team members to take ownership of their work,
and praise them when they go above and beyond.3. Be approachable and supportive,
and be willing to help out whenever needed.4. Foster a positive working environment
where everyone feels comfortable taking risks and making mistakes.5. Celebrate
successes together as a team, and learn from failures together as a team. Becoming a
great manager takes time, effort, and commitment, but it is definitely worth it in the
 end. By following these tips, you can help ensure that your team is productive and
happy, which will lead to better individual development and wellbeing.

2.How and when do managers develop their major strategies? What is the best strategic approach?

There is an idea that your business strategy needs to be well thought before you open shop. That
idea is wrong. Start with a simple idea and try to implement a prototype. Once you have that, try to see
if someone would pay for that prototype/beta product or service. Learn from that experience and revise
your strategy or enhance it. Again do not overthink your strategy, everything could change overnight.
Try to connect as much as possible to your potential customers and partners. Understand the pain
points and opportunities. Go meet them in person. Don’t always rely on a market survey on what your
customer needs, but meet with real people in the context of their organization, their industry or their
life. Remember you are trying to solve a problem or bring value with your product or service, not sell
something. Hence, your strategy needs to be built on creating real value for real people with specific
needs. Once you are bringing value and solving a problem for one person, now how can you get to more
people with similar problem and bring that same value, hopefully without pulling in as much resources
on your side. In summary, build and refine your strategy as you interact in real world with your potential
customers and partners.

VII. EVALUATION

1. Explain: The operations strategy must complement with the business strategy.
Operations strategy is to set up a clock wise operation system where an operation of any
management runs smoothly. like if you are travelling with an Ola cab till the time your booking
get finish they have every instructional tracking information by this this kind of start tortoises
there a need to assess risk in your operations by and how can you develop plan to reduce risks.
The role of operations strategy is to provide a plan for the operations function so that it can
make the best use of its resources. Operations strategy specifies the policies and plans for using
the organization’s resources to support its long-term competitive strategy. Strategy is a plan of
action for the future that defines how a company wants or plans to act in the overall economy.
It describes the long-term goals and a short-term vision, which will help the company achieve its
objectives within a given period. The main objective of the strategy is to maximize corporate
value independently of the specific direction chosen by management. It can be considered as an
intermediate step between current business (operational) strategies and tactics used at all levels
of control systems. The main function of strategic management is to develop concepts and ideas
that will describe the general direction of the development of a particular company. Strategy is a
set of specific objectives, which are meant to achieve the planned goals. Often, companies
already have some ideas about how to develop their business, but these decisions should be
clearly documented and approved by management. In this way, we get a
description/explanation of the actions that will be implemented in order to achieve strategic
 goals (strategic plan). It is primarily concerned with defining which market segment(s) have the
biggest potential for growth or profit maximization within a given period of time. The main
purpose is to identify opportunities for expanding business operations using various approaches
– either through organic growth (internal expansion), acquisitions, or mergers with other
businesses while maintaining the level of profit and market share for a given period of time.

2. Why is there a need to assess risk in your operations strategy and how can you develop plan to
reduce risks?
Financial institutions should always focus on their risk management practices and have it
properly structured. Risk management is important for any financial institution in order to
define clear objectives. It is essential for FI’s to consider potential risks before drafting any
strategy so that it stays on track and doesn’t lose direction. It helps FIs to prioritize risks as per
the criticality and deal with it accordingly. Once risks are known, it becomes easy to mitigate
it.Risk Management helps financial institutions to make more informed decisions and ensure
that their operations and business remains profitable. Moreover, the regulators keep on
changing policies and impose it on the financial institutions. So, if a FI has proper risk
management process in place, it will help it will help it in adapting to the changes and making
sustainable improvements. Thus to conclude, risk management is the best way to be ready for
the contingencies that may come in the way of success and progress.
Planning helps you to decide your course of action within a time frame. Without doing that
duty you will have uncertainty in your mind about yourself. By doing that you reduce half of the
uncertainty. But you cannot be fully sure about the outcome, risk is involved there, as it is
dependent upon the external factors also. It’s simple. If you have planned something then you
know what u need to do to fulfill your plan. It has a low risk as u will know prior to the impact
what u gone lose. It will also give u less stress as compared to uncalculated risks. Planning at
least gives the picture of wider goal.

STRATEGIC MANAGEMENT
MAY-ANN L.MARTIN
MODULE -2

VI. LEARNING ACTIVITIES

A. Answer the following questions. (Answer must be encoded in short bond paper) Choose 4
questions to answer only.
1. Explain the importance of using the Porter’s Forces Analysis.
Porter’s Five Forces is a framework for analyzing a company’s competitive
environment. The number and power of a company’s competitive rivals, potential new
market entrants, suppliers, customers, and substitute products influence a company’s
profitability. Porters Five Forces is just one more market analysis that can provide very
useful information about the ‘profit squeeze’ factors of an industry where a startup is
looking to establish itself. I use it to understand the industry I am intending to enter and
teach my ‘start your own business’ students to use it as well. Porter discovered that every
industry faces a profit squeeze of some sort. Taken as a whole, some industries present
extensive barriers to profits while others are less so inclined. A startup should know the
intensity of the profit squeezes they are facing in the industry they intend to enter and
develop strategies or secure specific resources that will help them mitigate them. An
analysis of the Porters Five Forces helps startups in this regard. For example: A web based
startup faces an intensive profit squeeze from the fact that it is so easy for others to enter
the market and compete against them.
A beverage manufacturer startup faces an intensive profit squeeze from the fact that
established brands will wage a fierce battle to stop them gaining market share
A startup selling branded merchandise will face an intensive profit squeeze from the
supplier who can dictate trading terms for their own profit benefit
A startup selling to national chains will face an intensive profit squeeze from powerful
buyers who can dictate trading terms for their own profit benefit.
A startup’s margins in takeaway food will be capped by the fact that customers can find
substitutes (make it themselves) if the takeaway’s food offer gets too expensive.
Each of these profit squeeze forces was identified by Porter and an analysis of each should
be conducted by all startups to determine the strategy to mitigate the ones impacting the
most. So yeah, I use it and I suspect many of my students use it as well in the planning phase
of their startups.

2. Analyzing the environment of the organization where it operates is necessary for its
success, why do you think so? Explain.
All businesses and organizations operate in a changing world and are subject
to forces which are more powerful than they are, and which are beyond their
control. No business can survive without continued interaction with the external
environment, just as a ship at sea is subject to powerful natural forces of which it
needs to be aware and deal with, organizations are influenced by forces in their
external business environment. Any business strategy needs to take account of all
these forces so that opportunities and threats can be identified and the organization
can navigate its way to success by matching its internal strengths to external
opportunities. (A SWOT Analysis can help here.) As an aid to identifying all these
external forces, a couple of acronyms come in handy. Environmental analysis is an
important tool for understanding the various elements that make up the
environment in which a business operates. It includes assessing the physical, social,
and economic factors in order to understand how they affect the company’s
operations. Businesses use environmental analyses to identify and quantify the risks
associated with environmental changes. This can be done through a variety of
methods, including scenario analysis, sensitivity analyses, or other types of
modeling.
3. Enumerate and explain some problems that the business organization may
encounter in developing strategy for the future.
Challenges businesses facing that are best addressed with the help of a consultant
include
1. about the future-Being able to predict customer trends, market trends etc. is vital
to a changing economic climate, but not every CEO has Warren Buffett-like
predictive powers. Bringing in a consultant trained in reading and predicting those
all-important trends could be the difference between a bright future and a murky
one.2)Financial management-Many CEOs I know are ideas people; that means
they’re great at the big picture and disruptive thinking, but less good with things like
cash flow, profit margins, reducing costs, financing, etc. Small and medium
businesses may not require a full-time CFO but would do better to employ a
financial consultant who can step into the role as needed.3)Monitoring
performance-Using a meaningful set of rounded performance indicators that
provide the business with insights about how well it is performing is key. Most
business people I know are not experts in how to develop KPIs, how to avoid the key
pitfalls and how to best communicate metrics so that they inform decision-making.
In most cases, companies rely on overly simple finance indicators that just clog up
the corporate reporting channels.4)Regulation and compliance-As markets and
technologies shift, so do rules and regulations. Depending on your industry, it can
make much more sense to bring in a consultant to help with these areas rather than
trying to understand the complexities yourself — and risk fines or worse for non-
compliance.5)Competencies and recruiting the right talent-Again, a small or
medium-sized business might not need full-time human resources or recruiting staff,
but during peak growth periods, finding the right people and developing the right
skills and competencies is the key to a sustainable future. Bringing in a consultant
with the expertise to find exactly the workers you need would be a wise
investment.6)Technology-As technologies change practically at the speed of light,
it’s vital for companies to innovate or be left behind — but many CEOs started their
careers and businesses before many of these technologies even existed! Consultants
can be vital for integrating new technologies, in particular mobile, app
development, and cloud computing.7)Customer service-In a world of instant
gratification, customers expect instant customer service — and can take to the web
to share their displeasure at less than satisfactory service just as quickly. Consultants
can find ways to improve customer service and bring it into the 21 st
century.8)Maintaining a reputation-In a similar vein, because customers can voice
any displeasure so much more publicly and loudly than ever before, businesses have
to monitor and maintain their online reputations. And while it’s an important task,
it’s one best suited to a third party who can monitor and mediate with a certain
amount of distance.9)Knowing when to embrace change-Early adopter or late to the
game? Consultants can help CEOs determine when to embrace change and when to
stay the course. Not everything new is better, yet eschewing every change runs the
risk of becoming obsolete. A professional outside opinion can make all the
difference in these decisions.
 4. Explain the “ fit “ and “ stretch ” strategy for the growth of the business organization
in the future.
Strategic Fit– is the degree to which an organization is matching its resources and
capabilities with its opportunities. The matching takes place through strategy, and it’s vital that
the company have the actual resources and capabilities to execute and support the strategy.
Strategic fit is related to the resource-based view of the firm which suggests that the key to
profitability is, not only through positioning and industry selection, but rather through internal
focus which seeks to utilize the unique characteristics of the company’s resources and
capabilities. Strategic fit can also be used to evaluate specific opportunities; alliances,
partnerships, joint ventures, M&A… For example; strategic fit for M&A refers to how well the
potential business acquisition fits with the planned strategy of the acquiring company. A survey
conducted by ‘Bain & Company’ showed that 94% of interviewed CEO’s considered the strategic
fit as vital for the success or failure of an a Strategic Stretch– is a goal that cannot be achieved
with– what is known, today. Strategic stretch pushes the boundaries of what is assumed to be
impossible to strive for… Only when you aim for impossible, something that cannot be achieved
with existing practices, is there pressure to come up with radical new ideas, instead of just work
harder. According to ‘Frank Buytendijk’; strategic stretch is very much like working with an
elastic band. If you only pull it from one side, the other side will move in the same direction. You
can only stretch it if you pull from both sides. And the harder you pull in multiple directions at
the same time, the more space you create, which is the objective of strategic management. The
metaphor of elastic band is very appropriate because it implies that you can’t stop pulling,
otherwise it goes back to its neutral position. It’s the same with strategy; you need to keep
working on creating strategic stretch, otherwise, the organization will fall back to average
results. In the article “From Fit to Stretch: Strategy & Structure for Results in Organizations” by
Bruce Elkin writes: Long-term success comes from consistency of effort generated by focused
and shared intent throughout the organization: Strategic intent is not just wild ambition.

5.Discuss the characteristics of possible good customers.

Good customer serviceis:Prompt,Professional,Comprehensive,Accessible,Consistent

Customers should always be taken care of as quickly as possible. People become agitated when forced
to wait an inordinate amount of time and may leave as a result. Communication must be professional. In
person, this means maintaining a neat appearance and clean workspace while employing active listening
to offer solutions to each customer’s specific problems. Online, this means crafting personable yet well-
written emails addressing each query in its entirety.Chatbots can be used, but complex queries should
be transferred to a live customer service agent to address as soon as possible. Ideally, a customer
shouldn’t have any unanswered questions or concerns upon completion of their customer service
experience. Of course, you also have to make sure customers can actually reach your service
department. This means maintaining a working phone number and email address, as well as some sort
of contact function on your company’s website. The goal is to make it quick and convenient for a
customer to ask a question and receive an answer, no matter who they are. The customer experience
should also be more or less the same every time you go through it. Otherwise, your efforts are in vain. A
customer might say, “gee, they were great to work with the first time, but after what happened with my
most recent purchase I’ll never buy from them again.” Stay on top of your game and don’t let this
happen. I’m sure there are other aspects you could add, but off the top of my head, these are most
important to models.

6.Explainn the advantages of avoiding competition for customers in the market.

It benefits consumers by keeping prices low and the quality and choice of goods and services high.
Competition makes our economy work. By enforcing antitrust laws, the Federal trade Commission helps
to ensure that our markets are open and free. Greater competitiveness creates more productivity and
better quality of products and services. Companies can satisfy consumer preferences and, consequently,
attain a better position in the market. The market grows steadily, and consumers benefit from lower
prices and a more comprehensive range of goods and services. A competitive advantage distinguishes a
company from its competitors. It contributes to higher prices, more customers, and brand loyalty.
Establishing such an advantage is one of the most important goals of any company. In today’s world, it is
essential to business success. If there was no competition in the markets, companies would neglect
technological development and cost reduction efforts. Price and service would become more
advantageous to companies, and consumers would result in no receipt of benefits.

7.Explain the 3 strategic approaches use to gain and maintain competitive advantage within the market.

advantage refers to factors that allow a company to produce goods or services better or more
cheaply than its rivals. Competitive advantage is the favorable position an organization seeks in order to
be more profitable than its rivals. To gain and maintain a competitive advantage, an organization must
be able to demonstrate a greater comparative or differential value than its competitors and convey that
information to its desired target market. For example, if a company advertises a product for a price
that’s lower than a similar product from a competitor, that company is likely to have a competitive
advantage. The same is true if the advertised product costs more, but offers unique features that
customers are willing to pay for. Examples :Louis Vuitton branded handbag is very expensive, but it is
still desired by many women round the world. It prices is fixed and limited in stock, the limited editions.
It creates the prestige and status of owning one. Being the only fruit store in a whole market, means
there is no competitors to challenge and pouch its customers. Hence, it can decide its prices it see fits. In
military scene, China is able to project its power in the South China Sea Region because countries
around the region are not as strong and not able to stand up to its giant neighbors, even if the smaller
countries are to join forces. Hence, in any competitive environment, planning to reduce risks, take
calculated risks are key to survival and success in any undertaking.

There are three strategies for establishing a competitive advantage: Cost

Leadership, Differentiation, and Focus (Cost-focus and Differentiation-focus).
 1. Cost Leadership -In a cost leadership strategy, the objective is to become the lowest-cost
producer. This is achieved through large-scale production, where companies can exploit
economies of scale. If a company is able to utilize economies of scale and produce
products at a cost lower than that of its competitors, the company is then able to
establish a selling price that is unable to be replicated by other companies. Therefore, a
company adopting a cost leadership strategy would be able to reap profits due to its
significant cost advantage over its competitors.. Differentiation 2. In a differentiation
strategy, a company’s products or services are differentiated from that of its competitors. This
can be done by delivering high-quality products or services to customers or innovating products
or services. If a company is able to differentiate successfully, the company would then be able to
set a premium price on its products or services.3.Focus-In a focus strategy, a company focuses
on a narrow target market segment. This strategy is successful if the company is able to
successfully create products/services that can cater to these customers. The focus strategy also
has two variants; Cost-focus: Lowest-cost producer in a narrow market segment.

VII. ASSIGNMENT (choose 2 questions to answer only)

1..Enumerate ways on how to avoid losing customers to competitors.

It’s no different with customers. When competitors come calling, your clients are ripe for the picking. All
of a sudden, the list of little things that have been festering over time is a little too long, and before you
know it, you’ve been replaced.

Here are 14 ways to prevent it from happening:

1) Keep your word. Little insults accumulate in a customer’s mind, tolerated and quietly dormant
until something triggers a reaction. “I’ll call you back about that,” but you forgot. “I’ll get on it
right now,” but you didn’t. They’re minor irritations, but over time, they become a big issue.
That’s when the competitor arrives.

2) Meet deadlines. You knew the due date well in advance, but end up saying, “Sorry, Susan, would
it be OK if I got that to you tomorrow?” If it happens once, it’s understandable. Twice, it’s seen
as a pattern.

3) Exhibit self-confidence. Few things raise red flags faster than those who come across as wishy-
washy or unsure of themselves.
4) Be a resource. Keep your antennae tuned for ideas that may be of interest to customers, and
remember to pass them along. It’s not only helpful, but also a way to let them know you’re
thinking of them.

5) Get more organized. Smart salespeople know the value of being organized. Intuitively, they
recognize that getting customers what they need quickly gives them a reputation as someone
clients can count on.

6) Don’t talk about yourself. Understandably, salespeople want to impress their customers. But
sometimes, they try too hard. It’s not what customers want to hear.

7) Ask questions. How many times do salespeople need to be reminded that telling isn’t selling?
Just remember, asking questions is always best—it gives prospects a chance to talk about
themselves and what they do.

8) Be attentive. Salespeople understand the danger of ignoring customers. Customers notice subtle
changes in how much you pay attention to them.

9) Be on time. Keeping customers waiting for any length of time is dangerous. Some may think
calling or texting that you’re running late lets you off the hook, but it doesn’t cut it. Even
customers who don’t say anything may feel differently. Being late might be overlooked, but it’s
never forgotten.

10) Respond rapidly. Customers have their own perception of “quick,” and it’s not necessarily the
same as yours. It seems tough, but a good rule of thumb is to aim to respond to phone calls and
emails within an hour. This includes simply letting someone know you received their message
and when you will get back to them.

11) Anticipate problems. While optimism is essential in sales, a little pessimism can be equally
useful. The element of doubt will help you spot potential problems before disaster strikes.
 12) Listen intently. We all find ourselves thinking, “What did I just read? I can’t remember a word!”
Our Listen intently. We all find ourselves thinking, “What did I just read? I can’t remember a
word!” Our eyes were moving across the page, but we were thinking about something else. It’s
the same with listening during sales situations. The customer is talking, but instead of listening,
we’re thinking about what we’re going to say next. Avoid this by taking notes to capture what
the customer is saying. Besides ensuring that you’re getting their message, you’ll show your
customers you’re focused on them.

13) Write simply. The goal is to make everything you write as easy to read as possible. Some
suggest shooting for a third-grade reading level. Don’t laugh—it requires skill to communicate
with that level of clarity. A fifth- or seventh-grade level also works well for capturing and holding
attention. In Microsoft Word, you can score your memos, emails, white papers, proposals and
other messages by selecting Tools, then Spelling and Grammar. This article, for example, has a
Fletch Readability Ease score of 66.8—fairly easy—along with a grade level of 6.8.
14) Express appreciation. Letting customers know you appreciate their business goes without
saying—they like knowing you care. But while tickets to sporting events, gifts, meals at popular
restaurants, or contributions to a customer’s favorite charity are thoughtful, they’re poor
substitutes for consistent top performance. Top-quality service is what justifies relationships.

2.Explain several strategies you should be using to ensure you stay ahead of your competitors.

Business competition can be fierce, especially in fast-moving markets where customers often shop
around. Use these ten ideas to defend your market position and build your competitive advantage
1.Know the competition-Find out who your competitors are, what they are offering, and what their
strengths and weaknesses are. This will identify the areas you need to compete in, and give you a
platform for differentiating yourself.2. Know your customers-You are competing to attract and retain
customers – so you need to understand what your customers (and potential customers) value. Customer
expectations can change dramatically. Find out what matters to your customers now – is it lower price, a
premium service or the latest products? Use what you know about your existing customers to get a
better understanding of what kinds of customers find your offer most appealing. This helps you define
your target market and the market segments where you are most competitive.3.Have all your
information in one place. Dedicated CRM systems allow you to join up your sales and marketing data
with other records, such as accounts, stock-keeping and delivery. That way you can know everything
about a customer’s dealings with your firm – from whether their goods arrived on time to whether they
are a late payer – helping you provide more efficient, personalized communications and service. The
best CRM software for your business depends on what your particular needs are. For example, you
might be focused on marketing to new sales leads, or on building relationships with your most
important customers and making sure you give them quality service. The more sophisticated packages
offer advanced analysis and automation tools, which can be particularly useful if you are trying to
manage a large number of contacts.4. Differentiate It’s essential to give your customers good reasons to
come to you rather than a rival. Develop a unique selling point (USP) that taps into what customers
want. It should be clear and obvious – no-one should have to ask what makes you different.
Differentiating yourself from the competition makes it easier to promote your business. You can win
customers because of what’s special about your offer, rather than competing on price.5.Step up your
marketing. Make more effort to tell people who you are, what you sell and why they should buy from
you. It doesn’t have to be expensive – cost-effective promotional ideas include everything from leaflet
drops to campaigns on social media. Aim to tie everything together in a sustained marketing campaign,
where you are consistently putting out the same key messages to your target customers. By doing this,
you help customers get a clearer picture of what you can offer and how you are better than the
competition. And you make it more likely that customers will see your marketing or remember you
when they are ready to make a purchase.6.Update your image.7.Simple steps such as painting the front
of your premises can make your business look more modern and inviting. Look at your business cards,
social media presence, your website, branded packaging. Over time, your image can easily become
outdated, as customers change what they look for and competitors up their game. Do things feel fresh
and exciting, or is your business becoming tired? Does your image still reflect how you want customers
to think of you now?8.Look after your existing customers. It can be easy to take loyal customers for
granted, but they will be your competitors’ target market. Don’t give your customers a reason to look
for alternative suppliers. Improve customer service by being more responsive to their needs and
expectations. Consider offering low-cost extras such as improved credit terms, discounts or loyalty
schemes. It’s cheaper and easier to keep existing customers than to find new ones.9.Target new
markets. Selling into new markets can increase your customer base and spread your risk. Make sure you
tailor your offer to each different market segment. Don’t assume that what has worked with your
existing customers is necessarily the best approach. Make sure you understand what different groups of
customers really want, what the competition is currently offering them, and how you can win their
business.10.Be the best employer Skilled, motivated employees underpin vibrant, growing businesses.
Attracting them means more than paying a competitive wage. People are often more impressed by a
good working atmosphere, and benefits such as flexible working and structured career development.
Motivated employees put more effort into making sure customers are satisfied. And customers respond
to dealing with people who have a positive attitude about the business they work for.11.Look to the
future. Businesses that plan for growth are more successful than those that stand still. Keep up with
developments in your sector, follow consumer trends, invest in new technology. Have a clear idea of
where you want to be in one, three and five years’ time. Other businesses will be continually improving
what they offer. You need to do the same if you are going to stay one step ahead of the competition

VIII. EVALUATION

Answer the questions.

1. How do outside factors affect your business organization ?

External environment factors are important because they can cause direct and indirect
effects on business operations, personnel and revenue. The external environment of a company
changes constantly in ways beyond the company’s control, but executives and managers can
track these changes and minimize their consequences.
2. How does your competitor contribute to your business success?
 Well, most of us think competition takes away business from us. But, there are many of the
same as well. If the company doesn’t differentiate, the competition will take over the business.
Ultimately, differentiation is better than losing to the market trend. And differentiation is
propagated due to the presence of competitors. Competition increases our presence on
awareness and market penetration. It influences us to increases product quality which interns
for higher quality for better prices. Due to competition, consumption increases, the company
will be able to satisfy customer needs and service, it also increases business efficiency The better
you serve them, the more they purchase your product. This positive feedback loop of customer
loyalty creates long-lasting customer relationships and builds trust and a strong bond that can
outlast any business challenge. Competition helps you learn from others’ mistakes. Know your
rivals’ products, market positioning and financial status. Learn how they engage users and which
tricks and strategies they use. At the same time, do all you can to study which tactics haven’t
worked for them.

STRATEGIC MANAGEMENT
MAY-ANN L.MARTIN
BSPA-3B
MODULE-3

VI. LEARNING ACTIVITIES

A. Answer the following questions.

1.Discuss some factors to consider in drafting the company’s strategy.

Strategies are really important because a strategy is a documented plan that helps the company
to achieve its goals. A company without a business strategy is destined to go downhill. A Business
strategy holds certain principles and detailed instructions about how the company is going to achieve its
goals. It is a guide that guides the company to its desired goals. Of course, every company should have a
business strategy because without a strategy they cannot go forward. A Strategy gives you a way to deal
with your competitors and the products that they produce. It gives the business a vision and guides that
business to the desired goal.

2.Explain on how to plan and evaluate strategic options.

Strategy evaluation is the process by which the management assesses how well a chosen
strategy has been implemented and how successful or otherwise the strategy is. To simply put,
strategy evaluation entails reviewing and appraising the strategy implementation process and
measuring organizational performance. Now that your strategic plan is all together in one place,
you should take a step back and evaluate. Did you create the strategy you intended to create?
More than likely, you and your team have put a lot of time into the document you now have in
front of you. The first step after you’ve assembled your strategic plan is put it away for a week
and don’t look at it. No peeking! After working on this document for months, you can easily get
so close to the plan that you miss obvious flaws (called the not-seeing-the-forest-for-the-trees
syndrome).When you pick your plan back up, reread it and answer these questions: Does your
plan connect your mission to your vision? Make sure that all your goals and strategies align with
your vision and support your mission. Modify or delete any outliers. You want all your energy
focused on reaching your vision. Is your plan realistic? Over planning is a common problem.
Consider pushing some deadlines out farther than you originally anticipated. Is your plan
integrated? Make sure that all the elements of your plan support each other. Is your plan
balanced? Make sure that you have a good balance between financial, customer, internal
business process, and employee and learning goals. Is the plan complete? Identify any holes in
your plan or potential activities that are unsupported. Is the document clear? Writing down an
action item or a goal that makes sense in the moment is easy, but making sure that the action
makes sense in six months is crucial. Make sure that every statement is explicit so everyone
knows what’s intended. Seek someone you trust outside of your organization to review your
plan for clarity and consistency.
3. The relevance of involving the interest of the stakeholders in crafting good organization’s
strategy.
Stakeholder consultation aims to build relationships based on mutual trust and
benefits. Listening to and understanding the views and feedback from stakeholders can help
shape and improve the overall operations of a business. Stakeholder consultation can be
project-based or on-going. High involvement in the process by a variety of stakeholders
tends to generate better outcomes and a greater sense of ownership. Many organizations
are using broad engagement strategies to increase participation in and commitment to
strategic planning. Early engagement with end users as stakeholders also builds
commitment within the end users toward the success of the new system. Commitment is
built when a change is not being done to them, but instead when end users have helped
develop the change and have become partially responsible for its success. Stakeholder
engagement is the systematic identification, analysis, planning and implementation of
actions designed to influence stakeholders. A stakeholder engagement strategy identifies
the needs of key groups and the sponsor plays a vital role in ensuring those business needs
are met. Engaging with stakeholders is crucial to the success of any organization. To
succeed, an organization must have a clear vision derived from a robust strategic planning
process, and an effective strategic plan or marketing plan can only come from stakeholder
engagement. Our consulting team work with organizations with a diverse range of
stakeholders. Key stakeholder opinions and insights are incredibly valuable in the early
stages of the planning and development processes . Robust consultation adds insight into
the operating environment, the marketplace, trends, user / customer need, and growth
opportunities, as well as to a vision of the organization’s future. Effective engagement helps
translate stakeholder needs into organizational goals and creates the basis of effective
strategy development. Discovering the point of consensus or shared motivation helps a
group of stakeholders to arrive at a decision and ensures an investment in a meaningful
outcome. Indeed, without internal alignment you cannot build an effective strategy or
implement change. Stakeholders can differ depending on the business or organization. They
 can include employees, customers, suppliers, shareholders, regulatory or government
agencies, boards of directors, and business owners. Each has a unique perspective about
what it will take for the organization to succeed. For example, internal stakeholders, like
employees, know the strengths and weaknesses of the organization from the ground up,
and have first-hand knowledge of what it takes to deliver. External stakeholders will have a
different, but equally valuable, perspective about how the organization and its operations
impact them. A shared understanding is essential to building a cohesive vision for the future.
We bring value to the strategic and marketing planning process by implementing an active
consultation and engagement process and providing an open forum for discussion and
debate. We help to align, impartially and objectively, an organisation around a common
vision and make recommendations on how the future ambition can be best achieved.

B. Evaluation

1. Discuss the importance of right timing in making strategic decisions. Give an

example.
My perspective on strategic decision making is this: “Strategic decisions redistribute
a major portion of a firm’s resources in order to be more competitive.”
Netflix chose to focus their payroll dollars, technology spend, product fulfillment
and marketing on an e-commerce business model instead of a traditional in-store
business model. Their strategic decision gave them a long-term competitive edge
over Blockbuster Video and other in-store movie companies. When pizza companies
introduced 30-minute delivery, they had to rethink their production processes and
invest in faster cooking methods in order to achieve that goal. $5 Tuesdays and
other marketing gimmicks are not considered strategic plans, because they do not
require a major redistribution of the firm’s resources. Amazon made the strategic
decision to focus on electronic delivery of books through the Kindle Reader and the
Kindle Read App and gained an unstoppable competitive edge vs Borders and
Barnes & Noble, eventually forcing Borders to close stores due to declining traffic.
Strategic decisions are the decisions that are concerned with whole environment in
which the firm operates, the entire resources and the people who form the
company and the interface between the two. Characteristics/Features of Strategic
Decisions Strategic decisions have major resource propositions for an organization.
These decisions may be concerned with possessing new resources, organizing others
or reallocating others.
Strategic decisions deal with harmonizing organizational resource capabilities with
the threats and opportunities.
Strategic decisions deal with the range of organizational activities. It is all about
what they want the organization to be like and to be about.
 Strategic decisions involve a change of major kind since an organization operates in
ever-changing environment.
Strategic decisions are complex in nature.
Strategic decisions are at the top most level, are uncertain as they deal with the
future, and involve a lot of risk

2.Discuss: When to make change in your strategy?

Change management is a structured approach for ensuring that changes are thoroughly
and smoothly implemented, and that the lasting benefits of change are achieved. The focus is on
the wider impacts of change, particularly on people and how they, as individuals and teams,
move from the current situation to the new one. The change in question could range from a
simple process change, to major changes in policy or strategy needed if the organization is to
achieve its potential. There Are Some Ways To Handle Change management Set the Expectation
that Change is Inevitable
Never Package a Negative Change as a Positive One
Embrace the Change Cycle
Provide Resources and Use Data for Evaluation
Monitor and Manage Resistance, Dependencies, and Budgeting Risks. Strategic change is
necessary to anticipate changing market conditions. There are a number of tools available for
this. Change in a strategic respect is often prompted by developments in the internal and
external environment of a business. These can be identified using a SWOT Analysis.

Assignment

1.Discuss the relevance of the organization’s strategic plan in forging links with other organization.

Strategic planning is a tool for organizing the present on the basis of the projections of the
desired future. That is, a strategic plan is a road map to lead an organization from where it is
now to where it would like to be in five or ten years. The purpose of strategic or long-range
planning is to assist the Association in establishing priorities and to better serve the needs of the
membership. A strategic plan must be flexible and practical and yet serve as a guide to
implementing programs, evaluating how these programs are doing, and making adjustments
when necessary. A strategic plan must reflect the thoughts, feelings, ideas, and wants of the
developers and mold them along with the Association’s purpose, mission, and regulations into
an integrated document. The development of a plan requires much probing, discussion, and
examination of the views of the leaders who are responsible for the plan’s preparation.
However, more often than not, the development of the plan is less complicated than is the
implementation. Strategic objectives are statements that indicate what is critical or important in
your organizational strategy. In other words, they’re goals you’re trying to achieve in a certain
period of time—typically 3-5 years. Your objectives link out to your measures and initiatives.
Strategic planning Based On Your Industry What business are you in? If you’re operating in a
fast-growing industry like IT, technical services, or construction, you should choose objectives
that match your growth goals and include movement in a positive direction. For example, those
 might include launching a new product or increasing gross revenue within the next year. If
you’re in a slow-growing industry, like sugar manufacturing or coal-power production, choose
company objectives that focus on protecting your assets and managing expenses, such as
reducing administrative costs by a certain percentage. Strategic planning Based On Your
Strategy. To further explain, here’s a business objectives example based on strategy. Think of
two financial services companies: Goldman Sachs and E*TRADE. Both handle customer finances
and investments, but (generally speaking) Goldman Sachs prioritizes high-touch, personal
relationships, while E*TRADE values high-tech, self-service relationships. As a result, the two
organizations undoubtedly have distinct objectives. From a marketing perspective, Goldman
Sachs might focus on referrals and connections, and E*TRADE on social media and customer
service automation. Or from an HR perspective, Goldman Sachs could set objectives based on
retention and client relationships, and E*TRADE on technical skills and product development.
Your business could have the same mission and purpose as another, but if it takes a different
approach to achieve that purpose, you should have a strategic planning. A strategic plan is an
important tool to guide the work of any organization. It will help maintain a focused, long term
vision of the organization’s mission and purpose, and aid decisions about the allocation of
human and financial resources.

STRATEGIC MANAGEMENT
MAY-ANN L.MARTIN
BSPA-3B
MODULE-4

VI. LEARNING ACTIVITIES (encode your answers in short bond paper)

A. Answer the following questions.

1. What makes a good strategic leader? Explain.
Strategic Leadership is the ability to influence others to voluntarily make decisions that
enhance the prospects for the organization’s long-term success while maintaining short-term
financial stability. To recap, effective, good strategic leaders are strong communicators, active
listeners, passionate, positive, innovative, collaborative, honest, diplomatic, empathetic, and
humble. By taking the steps to embody these qualities, you’re already becoming a better leader
and can help move your team towards success. Key traits of an effective strategic leader include
loyalty to the organization’s vision, judicious use of power, transparency, effective
communication, problem-solving, readiness to delegate, passion for their job, compassion, and
empathy for others and self-awareness.

2.Discuss the role of leadership in strategy implementation.

Strategic leadership role in strategy implementation include shaping effective organizational

culture, determination of strategic direction, effective management of organizations resource portfolio,
building an organization, enforcement of ethical compliance, development of short- term objectives and
plans. For it is character through which leadership is exercised, it is character that sets the example and
is imitated in turn.The more successfully tomorrow’s manager does his work, the greater will be the
integrity required of him….No matter what a man’s general education or his adult education for
management, what will be decisive above all, in the future even more than in the past, is neither
education nor skill; it is integrity of character. The role of any leader is to create success for their team
and the organization. Leaders then go on to develop a vision and a strategy that will get the team there.
Leaders need to be authentic and be able to provide inspiration, motivation, and guidance. They also
need the ability to lead teams effectively. This person has to have some qualities that make them a good
leader. It is important that they are knowledgeable in their field, but they also need to have the
knowledge and skills necessary to motivate people, delegate tasks appropriately and be able to solve
problems when challenges arise. It is up to the leader to set a good example for their team members.
They also need to provide direction and support in order to help them reach their goals. Leaders also
need to be able to understand and build on the strengths of their team members. The attributes of a
good leader include: Leadership skills, Motivation skills, Organizing skills, Problem-solving skills.

3.It is unrealistic to assume every change you implement will be unanimously welcomed, accepted, and
supported by all staff members, discuss the causes of resistance and propose measures on how a leader
would overcome resistance in the implementation of strategy in the organization.

Some level of resistance is inevitable. Don’t fight it. Welcome it because it lets you know
where the pain points are. If you get no resistance, either you are not asking people to do
something that is much different from what they are currently doing, or they are only
pretending to support the change, which, by definition, is a form of resistance. You should want
to know what people struggle with as early into the change process as possible so you know
where to direct your efforts. If you don’t quickly learn what people find hard about the change,
you will be surprised and derailed before you reach your goal. People hate to have things done
to them. They are much more willing to support something they co-create. Probe deep to learn
the pain points of the change—the things people find hardest to accept—and find ways to get
your resistors involved finding solutions to those challenges. Here are some specific steps to
take in any change process that will help you reduce resistance: Educate everyone directly on
the reasons for the change including why it matters for the success of the business unit.
Make the masses part of the execution. Include them in group deliberations about how to
achieve the goal the best way possible. Don’t merely gather their ideas and leave them out of
the decision process.
Make implementation the primary responsibility of those affected by the change.
Practice trust, transparency, and authenticity in all aspects of the process, particularly with the
core workforce.
Enable front line teams to report to the entire unit their progress implementing changes.
Hold celebratory events with all employees for important achievements pertaining to the
change.
B.Evaluation

1.Why is it necessary to monitor the implementation of the company’s strategy? Discuss some
ways on how to implement a successful monitoring strategy.
It is critical for developing objective conclusions regarding the extent to which programmes
can be judged a “success”. Monitoring and evaluation together provide the necessary data to
guide strategic planning, to design and implement programmes and projects, and to allocate,
and re-allocate resources in better ways. Without monitoring, an implementation effort can
perform poorly without anyone noticing. Use progress reports to monitor the execution. After
translating the strategy and its execution into clear objectives, they must be monitored through
progress reports. It is important to monitor and review your progress, so you can see how you
are tracking and measure the effectiveness of your initiatives. Plan your review process before
you start implementing any actions. Monitoring allows results, processes and experiences to be
documented and used as a basis to steer decision-making and learning processes. Monitoring is
checking progress against plans. The data acquired through monitoring is used for evaluation. A
monitoring and evaluation (M&E) plan is a document that helps to track and assess the results
of the interventions throughout the life of a program. It is a living document that should be
referred to and updated on a regular basis. While the specifics of each program’s M&E plan will
look different, they should all follow the same basic structure and include the same key
elements. An M&E plan will include some documents that may have been created during the
program planning process, and some that will need to be created new. For example, elements
such as the logic model/logical framework, theory of change, and monitoring indicators may
have already been developed with input from key stakeholders and/or the program donor. The
M&E plan takes those documents and develops a further plan for their implementation. It is
important to develop an M&E plan before beginning any monitoring activities so that there is a
clear plan for what questions about the program need to be answered. It will help program staff
decide how they are going to collect data to track indicators, how monitoring data will be
analyzed, and how the results of data collection will be disseminated both to the donor and
internally among staff members for program improvement. Remember, M&E data alone is not
useful until someone puts it to use! An M&E plan will help make sure data is being used
efficiently to make programs as effective as possible and to be able to report on results at the
end of the program.

C .Assignment

1.What is Knowledge Management Strategy? Discuss the importance of developing a clear and effective
knowledge management strategy.
 A knowledge management strategy is a plan of action that outlines how your organization will
manage and centralize company information, data, and knowledge to improve your productivity and
efficiencies. The most successful of these strategies are closely aligned with individual department and
company-wide objectives. Knowledge management is important because it boosts the efficiency of an
organization’s decision-making ability. A knowledge management strategy is a plan of action that
outlines how your organization will manage and centralize company information, data, and knowledge
to improve your productivity and efficiencies. The most successful of these strategies are closely aligned
with individual department and company-wide objectives. By investing in an organization-wide
knowledge management strategy, businesses can empower their teams to tap into shared knowledge
and make informed decisions that impact revenue, retention, and innovation. Benefits of a successful
knowledge management strategy include: Boosted productivity as employees spend less time looking
for information and more time applying in,a decrease in duplicated work and errors, faster and better
informed decision-making, Accelerated employee onboarding (and a better onboarding
experience),Customer service improvements due to frontline employees having fast access to the
knowledge they need, Increased employee self-sufficiency and confidence, Better collaboration and
cross-functional collaboration on new ideas and information. Developing a clear and effective KM
strategy allows you to: Increase internal awareness and understanding of knowledge management.
Make a strong business case for potential benefits to your organization. Get buy-in from senior
management. It helps in Achieving Group Goals – It arranges the factors of production, assembles and
organizes the resources, integrates the resources in effective manner to achieve goals. It directs group
efforts towards achievement of pre-determined goals.