Strategic Management - Module

STRATEGIC MANAGEMENT: CREATING ONE’S FUTURE AND SUCCESS 1
“Draft. Not Intended for Publication. For Classroom Use Only.”

Strategic Management: Creating

One’s Future and Success
CBMEC1
(Strategic Management)
MARIA BLANCA S. SY

Strategic Management: Creating Ones’s Future and Success
Copyright @2020 Maria Blanca S. Sy
All rights reserved. No portion of this module may be copied or reproduced whether
printed, photocopied or in any other form, for distribution, without the written permission
of the author except in case of brief quotations embodied in this module.
Page and Cover Designed by Cj Lawrence Sy and Dwight Kent Sy
ISBN : ____________________
First Edition : ____________________

Course Introduction
Strategic Management is the process of formulating and implementing strategies

to accomplish long-term goals and sustain competitive advantage. It is a set of
management decisions and actions that determines the long-run performance of a
corporation or industry. Strategic Management eemphasizes the monitoring and
evaluating of external opportunities and threats in light of a corporation strengths and
weaknesses. It concerns the future, the direction a company moving forward say 5 years
from now. Strategic management involves making decisions for the whole organization
integrating the different functions of management -- marketing, finance/accounting,
production/operations, research and development, and information systems to achieve
organizational success (David, 2011).
This course will provide students with a detailed knowledge and understanding of
one of the most exciting and creative areas of business. By the end of their studies, they
will develop their capacity to think and execute strategically. They can demonstrate
effective application of concepts, tools & techniques to practical situations for diagnosing
and solving organizational problems. This course will equip them with with the subject
knowledge that they need there’s also case studies and visits from leading industry
experts. Online learning flatform will also support them with their studies. With flexible
learning package which includes the course requirements and what are the activities and
assessments to be accomplished, they will have the resources to ensure them get the
most out of the course.
This learning package is distinct from other books because it has the following
major parts:
Course Introduction. It presents the vital information about the course.
Course Syllabus. This provides vital information on the course outcomes, learning
outcomes, activities, assessments, grading system and the course requirements.
Learning Guide. This provides significant information as to the students’
schedules of submitting the output and the course requirements, feedback modality,
communication mechanism, and the contact information of the instructor/professor and
other authorities of the University/Campus.
Learning Contract. It is a document which contains the commitment of the
learners in accomplishing the activities which includes also the Data Privacy Act,
plagiarism rules, safety reminders, and parents’ support.
Summative Assessments. These are forms which include the summative
assessment plan, summative assessment instructions, and assessment rubrics.
Flexible Learning Module. This is the meat of the package that contains the front
contents, module content (learning outcomes, pretest, content, learning activities, and
assessments), and the back contents.

This material will offer variety of activities that will address the multiple intelligences
and diversity of students and worksheets will be provided. The use of online flatform will
be of help of this course in exploring a wide range of intellect in analyzing case studies
and come up with a specific marketing strategy.
I hope that they will have an expressive and productive learning in this course.
Maria Blanca Sy
Author

JOSE RIZAL MEMORIAL STATE UNIVERSITY

The Premier University in Zamboanga del Norte
Governor Guading Adasa Street
Santa Cruz, Dapitan City, 7101
Zamboanga del Norte, Philippines
Telephone No. (065) 908-8294
[email protected]
Preface
In my experience in teaching marketing, I was so challenge with so many changes

in every activity done in the business world. I saw changes in the study habits of so many
college students. When I started to teach part-time in this prestigious University, Jose
Rizal Memorial State University, I used foreign authors in Strategic Management of which
the students could not afford to buy. As what I have observed that not anyone of them
buys a book for their reference. I have observed also that the new technology right now is
the culprit as they provide competition to student’s focus on books. Students would rather
buy or spend their allowance to buy gadgets or mobile phones.
Such observable fact is a challenge to educators like me. So, I have thought of
writing this modular approach book. I aspire to provide an easy-to-understand module in
Strategic Management to my tertiary students. The writing of this book was inspired by the
Strategic Management books of David, F.R (2011) entitled “Strategic Management:
Concepts and cases” and Dr. C. Wally, a university professor of San Jose Recoletos,
Cebu City .
The course outcomes of this study are to utlize strategic frameworks and tools to
make decisions as to what to do and make actionable recommendations that orchestrate
resources and capabilities and make sense within the business environment. The set of
learning outcomes presented in this module should be achieved at the end of each
chapter. Also, pre-test is provided to serve as a diagnostic test to help measure the
student’s knowledge on a specific topic. Succeeding learning activities and assessment
are also provided after every chapter to measure the comprehension of the learners on
the concepts or theories discussed. A unified syllabus of the strategic management is also
included in this module.
It is the contentment of the author of this module to help upsurge the foundation of
students on strategic management concepts for them to build up skills in the field of
business and marketing.

Acknowledgment
My utmost gratitude to the Almighty God who give us strength especially in making
this module a possible one.
I am honored and thankful to the following persons who have provided assistance
and extended their help in accomplishing this module, to Dr. Daylinda Luz R. Laput,
University President of Jose Rizal Memorial State University, Dr. Alice Mae Arbon, OIC-
Vice President for Academic Affairs and Dr. Jannette J. Icao OIC-Vice President for
Research, Development and Extension for their guidance and valuable suggestions to this
module making. Dr. Wilfredo D. Carreon, Jr., system Dean a very supportive and active
mentor for his insights and inputs, Dr. Jovelyn M. Cantina, Director for Instructional
Materials and Development, for her valuable critiques, comments and suggestions and to
the faculty of the College of Business and Accountancy in Jose Rizal Memorial State
University who guided me in making this module as a successful one.
I am also grateful to express my gratitude to my family for their never-ending
support and encouragement. To my husband, Henry, and sons, Dwight Kent and Cj
Lawrence.
Lastly, I would like to express my heartfelt thanks to all my friends and colleagues
in giving their inspirations in realizing this module.

Table of Content
Title Page
Title page 2
Copyright Page 3
Course Introduction 4
Preface 6
Acknowledgment 7
Syllabus 9
Learning guide 11
Study Schedule 12
Evaluation/Grading Plan 14
Learning Agreement 15
Summative Assessment Plan 16
Front Cover 17
Module 1: Overview of Marketing: An Introduction
Unit 1: An Overview of Strategic Management and Analysis, 19

the Product Life Cycle, and Strategic Drift
Unit 2: Business Model Analysis 34

Unit 3: Macro-Environment Issues and Tools 56
Unit 4: Industry Analysis, Competitive advantage 62
Unit 5 Internal Analysis & Competitive Advantage 81
Unit 66 Business Level Strategy I & II, Innovation & Blue 90
Ocean Strategy
Unit 7 Corporate Strategy and Growth Strategies 104
References 116
Glossary 117
Rubrics 120
Answer key 125
User’s Evaluation Feedback Form 127

About the Author 128
Republic of the Philippines

Main Campus, Dapitan City
JRMSU CBA DEAN 006
Program Bachelor of Science in Business Administration
Department College of Business and Accountancy
Instructor Maria Blanca S. Sy
COURSE SYLLABUS
Course Title STRATEGIC MANAGEMENT
Schedule Business
Course Code CBMEC1 Finance None Unit 3
PHILOSOPHY Jose Rizal Memorial State University adheres to the principle of dynamism and cultural diversity in buidling a just and humane society.
VISION A dynamic and diverse internationally recognized University
Jose Rizal Memorial State University pledges to deliver effective and efficient services along research, instruction, production and
extension. It commits to provide advanced professional, technical and technoprenial training with the aim of producing highly
MISSION competent, innovative, and self renewed individual.
GOALS Jose Rizal Memorial State University focuses on developing graduates who are exemplars of Rizal's ideals that can:
E Exhibit relevant and responsive competencies across disciplines towards
X Xenial delivery services;
C Communicate ideas proficiently in both written and spoken form;
E Engage in lifelong learning;
L Lead effectively and efficiently amidst socio-cultural diversity;
L Live up the challenges of the global community;
E Embody professional, social and ethical responsibilities;
N Nurture a harmonious environment;
C Conserve and promote Filipino cultural heritage; and
E Evaluate their contribution to the local and global communities.
GRADUATE
ATTRIBUTES OF GLOBALLY COMPETITIVE. INDUSTRY RELEVANT. EFFECTIVE COMMUNICATOR. INNOVATIVE. SERVICE DRIVEN. LIFELONG
ILUSTRADO LEARNERS
TRIBE (GAIT)

COURSE SYLLABUS
Program Bachelor of Science in Business Administration
Department College of Business and Accountancy
Instructor Maria Blanca S. Sy
Course Title STRATEGIC MANAGEMENT
1 Demonstrate and act in recognition of corporate citizenship, critical and analytical skills,professional, ethical and social responsibilities.
Implement the basic functions of management (such as planning,leading, organizing,staffing, directing and controlling) in various functional
2 areas of business.
Demonstrate mastery of analytical concpets and tools of marketing, such as segmentation and targeting, branding, pricing, distribution and
3 promotion.
Engage in independent learning for continual development as a business professional, while generating new knowledge and keeping abreast
4 with the latest developments in the field of business.
5 Communicat effectively with stakeholders, both orally and in writing.
Program Outcomes 6 Achieve critical understanding of how a company can benefit from creating and delivering value to its customers and stakeholders.
The course emphasizes the value and process of strategic management. Students are expected to integrate and apply their prior learning to strategic
decision making in organizations. The Strategic Management course is designed to explore an organization’s vision, mission, examine principles,
techniques and models of organizational and environmental analysis, discuss the theory and practice of strategy formulation and implementation such
Course Description as corporate governance and business ethics for the development of effective strategic leadership.
On successful completion of the course, students be able to:

Course Outcome
1 Utlize strategic frameworks and tools to make decisions as to what to do
2 Make actionable recommendations that orchestrate resources and capabilities and make sense within the business environment.

College of Business and Accountancy
COURSE SYLLABUS
Course Title STRATEGIC MANAGEMENT Instructor M aria Blanca S. Sy
Summative Assessment
Form ative As s e s s m e nt (Each cours e outcom e will
(Each learning outcome w ill have have one s um m ative
Course Outcome Learning Outcomes Topics References Learning Activities Learning Materials one f ormative assessment) as s es s m ent)
evaluate challenges faced Strategy/Definition newspapers, Analyzing and creating Students will create a PESTEL
by managers in of Strategyby Oxford 1. The s tudent will magazines, Telivision m arketing s trategy: Us ing Analys is of the Ariline Indus try.
implementing and Dictionary on analalyze the Cas e viewing , Google your own ideas on s trategic Identify im portant is s ues NOW
evaluating strategies based Lexico.com als o s tudy of The Las t Kodak search , research m anagem ent and analys is , and what are likely to be
on the nature of business, m eaning of Strategy Mom ent ; 2. s tudent will papers/articles, create your own s trategy in is s ues in the FUTURE
Lexico m ake an as s es s m ent s olving the problem that influence which could be
industry, and cultural Unit 1 An Overview of Strategic Analys is , the caselets, youtube
Dcitionaries /Englis on the cas e that they Kodak faces im portant is s ues for airlines in
differences Product Lifecycle, and Strategic Drift viewing and other
h (2020) Retrieved have read. And give a the com ing five years . Pick a
social media
10 July 2020, s pecific ans wer of the geographic area.
from ques tion " What is the
https //www.lexico.co m ajor les s on you can
m /en/definition/s trat take away from this
egy cas e s tudy?"
1. The s tudents will newspapers,
as s es s an im dus try The s tudnet will create their
magazines, Telivision
us ing bus ines s Model own bus ines s m odel canvas
viewing , Google
Canvas '; 2. The s tudent for any of the following
search , research
will take a s naps hot indus tries /s ectors . Your
papers/articles, m odel m ay be the indus try
Utlize strategic picture of any caselets, youtube
es tablis hed bus ines s its elf or a s pecific bus ines s
frameworks and tools to Unit 2 Bus ines s Model Analys is viewing and other under the s aid indus try. The
m odel canvas and
make decisions as to social media indus try are as follows :
analyze the m odel
what to do Public trans portation,
banking & ins urance,
demonstrate the knowledge Inform ation s ervices
and abilities in formulating (m edia), Touris m and
strategies and strategic accom m odation and Utilities
plans (power and water)
David, F.R. (2011). newspapers,
Strategic magazines, Telivision
Managem et viewing , Google
Cancetps and search , research
cas es (13th ed). papers/articles,
Upper Saddle Create a PEST
caselets, youtube
Unit 3 Macro-Environm ent Is s ues and Tools River,N.J. analysis of Coronavirus
viewing and other
Pears on/Prentice that the whole world
social media
Hall experience right now.
Identify important
issues NOW and what
are likely to be issues
in the FUTURE.
Univers ity of Students will read the newspapers, Students will have to choos e Students will create their own
Minnes ola libraries iPad –The PC Killer magazines, Telivision one com pany (am ong the Cas e Study Analys is applying
Publis hing (2016). cas e s tudy viewing , Google top 10 perform ing the Porters Five Forces flat
Mas tering Strategic or they will click the link search , research com panies worldwide) by form about heir m odular or
Managem ent https ://www.bloom berg. papers/articles, us ing Google s earch and online clas s es and have their
com /news /articles /2012- caselets, youtube Identify the com petitors you reas ons /explainations about
03-21/ipad-the-pc-killer prim ary and s econdary heir output. :
viewing and other
or players ?2. Identify which
social media
https ://www.cbs news .co com petitors are the ones
Unit 4 Indus try Analys is , Com petitive
m /news /why-apples - firm s s hould be m os t
Analys is ,
ipad-will-kill-the-pc/ and concerned with and Why?3.
Ans wers the given Choos e two likely
ques tions ques tions com petitive dim ens ions that
des cribes the key s trategies
decis ions in the indus try You
Analyze bus ines s s ituations can us e your own m atrix in
to unders tand the im portant plotting your ans wer.
factors that are im pacting
them
David, F.R. (2011). Students will have an newspapers, Stduents will have SWOT Students will conduct and
Strategic Es s ay Writing activity by magazines, Telivision analys is activity in internal Audit of a certain
Managem et reading the cas e s tudy viewing , Google preparation for theirinternal com pany of their choice. They
Cancetps and on “The Prrils of Bad search , research audit as s es s m ent. will follow the lecture in the
cas es (13th ed). Strategy” or they will papers/articles, m odule and they can us e
Upper Saddle s im ply Click the link caselets, youtube SWOT analys is flat form for
River,N.J. _https ://www.m ckins ey. their ans wers .
viewing and other
Pears on/Prentice com /bus ines s -
Unit 5 Internal Analys is and Com petitive social media
Hall functions /s trategy-and-
analyze the competitive Advantage
corporate-finance/our-
situation and strategic ins ights /the-perils -of-
Make actionable
dilemma in dealing with bad-s trategy and read it
recommendations that
dynamic global business thoroughly and analyze
orchestrate resources
environment in terms of carefully and ans wers
and capabilities and
rapidly changing market ques tions given on the
make sense within the
trends and technological m odule.
business environment.
advancement
Unit 6 Bus ines s Level Strategy I & II, David, F.R. (2011). newspapers, Students will read the cas e
Stduents will have value Students will have their cas e
Innovation & Blue Ocean Strategy Strategic magazines, Telivision s tudy on Cirque du Soleil or
chain analys is activity. s tudy analys is on on
Managem et viewing , Google they will click thie link
The s tudent will Sym phony or they jus t click
Cancetps and search , research https ://www.blueoceans trategy.
cons truct the value the given link in the m odule.
cas es (13th ed). papers/articles, com /bos -m oves /cirque-du-
chain for a traditionaal They will develop aleternative
Upper Saddle s oleil/ and have them ans wer
furniture m anufacturer caselets, youtube value chain and give their
River,N.J. the given ques tions in the
(Six bas ic s teps s tarting viewing and other recom m endation to put
Pears on/Prentice m odule.
with des ign? Us ing a social media Sym phony back on s ound
Hall
given diagram financial footing.
Unit 7 Corporate Strategy and Growth David, F.R. (2011). Students will conduct newspapers, Students will have a Cas e Students will click the given link
Strategies Strategic growth s trategy s nalys is magazines, Telivision Study Analys is on Fuller’s https ://www.calltheone.com /en/
Managem et us ing the given flat form . viewing , Google and have them ans wer the cons ultants /did-nokia-go-
Cancetps and They will draw a circle to search , research given ques tions in the under-due-to-a-lack-of-vis io
cas es (13th ed). repres ent the s ize of the papers/articles, m odule. and read it thoroughly,
Upper Saddle m arketa nd have them unders tand and analyze
caselets, youtube
River,N.J. ans wer the given carefully. Thy will draw, create
viewing and other
Pears on/Prentice ques tions in the and analyze s trategic bus ines s
social media
Hall m odule. unit (SBU) us ing the BCG
Growth s hare m atrix of an
identified indus try in the link
s hared. They can us e the
tem plate given as their guide in
ans wering the requirem ents .
They will prepare a PowerPoint
pres entation on their output
and pres ent it via virtual
pres entation in any availability
of their tim e.

Learning Guide
The key to positively finish this material lies in your determination to honestly and
reliably perform the learning activities and complete the assessments. This flexible
learning package is developed with the aim to aid your learning for this course. Aside from
meeting the content and performance standards of this course in performing all the
learning activities and assessments, you will be able to learn the skills and knowledge
which are needed in attaining the future skills and the graduate attributes to become
globally competitive individuals.
Classroom Rules and Conduct
The following are the house rules which will help you to be on track and
successfully finish this course:
1. The student’s responsibility is to manage their time to read and understand what
is written in the module.
2. The student’s expected to accomplish all learning activities and assessment on the
date scheduled.
3. Students should read the module in advance prior to the online class session.
4. Students are expected to actively participate in the online discussion and submit
course requirements (case analyses, reports, etc.) in order to complete the course.
5. Students are expected to be academically honest. Cheating, lying and other forms
of immoral and unethical behavior will not be tolerated. Any student found guilty of
cheating in examinations or plagiarism in submitted course requirements will (at a
minimum) be given attention for disciplinary action.
6. Before the end of the midterms, you are requested to send back the material trough
the pigeon boxes in your department. For online learners, you will turn in your
output and other tasks in the google classroom. While waiting for my feedback of
your accomplished module, you may continue on accomplishing the tasks in the
succeeding units that are scheduled for the finals.
7. Students are requested to do their own task in accomplishing the learning activities
and assessments in the module.
8. Course requirements will be submitted as to schedule.
9. All students should feel free to talk to the instructor face-to-face or through media
during office hours.
10. Academic accommodations are available for students with special needs.
Students with special needs should schedule an appointment with the instructor
early in the semester to discuss any accommodations for this course.

Study Schedule
Week Unit Title Activities

August 24-28, 2020 Orientation Reading of Learning
Package
September 1-September Virual discussion/google
18, 2020 class ; answering the Pre-
Test
September 18, 2020 Activity No. 1 The Last
deadline Unit 1 An Overview of Kodak Moment Case
Strategic Management and presentation
Analysis, the Product Life
Sept. 25, 2020 Activity 2. Case Study
Cycle, and Strategic Drift
Assessment submission,
submission of Assessment
#1 and Assessment #2
Analyzing and creating
marketing strategies
September 21-25, 2020 Virtial Discussion/google
class, answering for Pre-
Test;
September 28-October 9, Activity No. 1 The
2020 Unit 2 Business Model Business Model Canvas
Analysis submission
October 9, 2020 Activity 2. Visualizing
model canvas;
Assessment No.1
submission, assessment
#1 submission
October 12-16, 2020 Virtial Discussion/google
class, answering for Pre-
Test;
October 16, 2020 Unit 3 Macro-Environment Activity No. 1 PEST
Issues and Tools ANALYSIS; assessment
#1 submission
October 20-21, 2020 Midterm Assessment  Analyzing and

Requirements creating marketing
strategies
(Creation of
Business Model
Canvas)
 PESTEL
ANALYSIS
October 26- Nov. 6, 2020 Unit 4 Industry Analysis, Virtual Discussion/google
Competitive advantage class, answering Pre-test
and submission the same

Activity No. 1 iPad –The

PC Killer case study
November 9-13, 2020 Activity 2. Essay Writing,
answering assessment #1
Unit 5 Internal Analysis & and submission the same
November 16-20, 2020 Competitive Advantage Answering Pre-test for unit
5, Activity No. 1 Essay
Writing “The Perils of Bad
Strategy” submission
November 23-Dec.4, 2020 Answering assessment #1
& Assessment #2 “Conduct
Unit 6 Business Level and internal Audit of a
Strategy I & II, Innovation certain company of your
& Blue Ocean Strategy choice.” submission
Virtual discussion/google
class, answering Pre-test,
Learning activity #1 Value
chain analysis submission
December 7-11, 2020 Answering Pre-test,
Learning Activity #1
Unit 7 Corporate Strategy Identification and Creation
and Growth Strategies of SBU submission
December 14-18, 2020 Case Study Analysis: the
case study on Fuller’s
submission
December 21, 2020 to Final Examination  Assessment #2
January 6, 2021 Requirements Creation of Original
Case Study, case
study on
Symphony,
 Case study
analysis on Cirque
du Soleil
 Draw, create and
analyze strategic
business unit
(SBU) using the
BCG Growth share
matrix of an
identified industry
Evaluation
To pass the course, you must observe the following:

1. Read the course module and answer the pretest, quizzes, self-assessment
activities.
2. Write your thoughts and suggestions in the comment boxes.
3. Perform all the learning activities.
4. Accomplish the assessments.
5. Submit the course requirements.
6. Perform the Midterm and Final Assessments
Technology Tools
In order to accomplish all the learning activities and accomplish the assessments,
you will need these software applications: word processing, presentation, and
spreadsheet. These are applications that are available in your desktop or laptop that will
not require internet connection. All materials and activities that will involve reporting and
blogging will be video-recorded, and be saved in the CD or USB. These materials will be
submitted through the pigeon boxes. For online learners, materials will be uploaded in
google classroom.
Feedback Modality and Communication Mechanisms
Feedback system will be facilitated through FB messenger or text messaging. If
you need to call, inform me ahead and do not call after 9 pm. Do not give my CP number
to anybody. I will not entertain messages or calls from numbers that are not registered.
You may send your clarifications and questions through the google classroom or FB group
account.
Grading Plan
The term grade is computed using the formula:
Formative/student engagement - 30%
Summative (Major output and requirements) - 70%
TOTAL 100%
Midterm Grade = 100% of the Midterm Grade
Final Grade = 50% of the Midterm Grade + 50% of the Final Term Grade
Contact Information
Person/Office Email address CP number

Instructor [email protected] 09488689517
IMDO [email protected] 09399168104
FLS
DRMMO
DSAS
Library


LEARNING AGREEMENT
By signing this learning agreement, I commit to the following terms and conditions of Jose
Rizal Memorial State University in the implementation of Flexible Learning System.
Specifically, I commit to observe the following:
1. That I must observe all guidelines of the state pertaining to the prevention of
COVID, specifically to stay home, to observe physical distancing and the use of
face masks when interacting with others.
2. That I shall prioritize my health and safety while I comply with all the necessary
learning activities and assessments needed in my enrolled courses.
3. That I will exhaust all means of complying the requirements at home or in a less
risky place and location that will not allow me to be exposed to other people.
4. That I have already read and understood all instructions pertaining to my enrolled
courses.
5. That I commit to do all the learning activities diligently, following deadlines and the
learning guide enabling me to deliver the course requirements.
6. That I commit to answer all forms of assessment in the learning package honestly.
7. That I shall initiate in giving feedback to my instructor at least once every two
weeks.
8. That I shall not reproduce or publish any part of the learning package content
without the written consent of the University and the author/s.
9. That I shall not commit any form of plagiarism in all course requirements.
Conformed:
Name and signature of student Date signed
Name and signature of parent/guardian Date signed
Contact Number of Parent/Guardian
**Please email the signed copy of this learning agreement to your instructor as
soon as you have received the learning package.
Jose Rizal Memorial State University

Form No. F16: Summative Assessment Plan

Background:
This form aims to document the summative assessment strategies that a teacher deems appropriate to
the course being taught and its corresponding course outcomes. Summative assessments are methods
used to evaluate student learning, skill acquisition, and academic achievement at the conclusion of a
defined instructional period – typically at the end of a course or a semester. Summative assessments
are requirements across all courses in JRMSU. Please refer to the JRMSU Handbook on Flexible Learning
for the guidelines in designing summative assessments.
Course Title: Strategic Marketing Management
Course Code: BAMM105
Scoring/
Course Title of
No. Description Grading
Outcomes Assessment
Standard
Design  PESTEL • Students will create a PESTEL Rubrics

strategic Analysis Analysis of the Airline Industry. Identify 70%
marketing  SWOT important issues NOW and what are likely to
decision Analysis be issues in the FUTURE influence which
making and  Internal could be important issues for airlines in the
apply some of Audit coming five years. Pick a geographic area.
the practical  SBU • Students will conduct and internal
tools enabling creation Audit of a certain company of their choice.
development, using They will follow the lecture in the module and
evaluation and BCG they can use SWOT analysis flat form for their
implementation flatform answers.
of effective • Students will read the case study on
marketing Cirque du Soleil or they will click the link
strategies. https://www.blueoceanstrategy.com/bos-
. moves/cirque-du-soleil/ and have them answer
the given questions in the module.
• Students will click the given link
https://www.calltheone.com/en/consultants/did-
nokia-go-under-due-to-a-lack-of-visio and read
it thoroughly, understand and analyze
carefully. Thy will draw, create and analyze
strategic business unit (SBU) using the BCG
Growth share matrix of an identified industry in
the link shared. They can use the template
given as their guide in answering the
requirements. They will prepare a PowerPoint
presentation on their output and present it via
virtual presentation in any availability of their
time.
Prepared by. MARIABLANCA S.SY, DPA

College/Department : College of Business Administration


Unit 1 An Overview of Startegic Management and Analysis, the Product

Life Cycle, and Startegic Drift
Strategic Management process and concepts, value of vision,

mission and corporate objectives, the role of corporate governance and
stakeholder management, coherence in strategic direction. It concerns the
future, the direction a company moving forward say 5 years from now.
Strategic management involves making decisions for the whole
organization integrating the different functions of management -- marketing,
finance/accounting, production/operations, research and development, and
information systems to achieve organizational success (David, 2011).
Strategy can be defined as using 5Ps-- Plan, Ploy, Pattern, Position
and Perspective.
Learning Outcomes
After completing this unit, the student will be able to:
 demonstrate effective application of concepts, tools & techniques to practical

situations for diagnosing and solving organizational problems
 develop their capacity to think and execute strategically.
 Ensure to be aware of all the terms that are used in this course.
Pre-Test
Examines what Strategic Marketing cover. Multiple Choice

Directions: Read the following questions and encircle the letter of the correct answer.
You may view this test at ______. Use the code _____.
1. Discrete processes required to create, produce, sell, and deliver products?

a. marketing
b. Analysis
c. Activities
d. Acquisition
2. The process of gaining a better understanding of a complex topic by breaking it
into smaller parts?
a. Activities

b. Analysis
c. Acquisition
d. Action plan
3. Describes the rationale of how an organization creates, delivers, and captures

value.
a. Business model
b. Capability
c. Scope
d. Competence
4. The orchestration and use of firm resources
a. Capability
b. Competence
c. Challenge
d. Core business
5. A unique ability that a company develops and that cannot be easily imitated.
a. Core competence
b. Competence
c. Core Business
d. Competitive advantage
6. The primary activity that defines a fir’s main emphasis
a. Core competence
b. Competitive advantage
c. Corporate level
d. Core Business
7. Factual and verifiable statements
a. Findings
b. Feasibility
c. Fit
d. Factual information
8. Specific and quantifiable outcomes that when achieved propel the firm towards it
goals.
a. Oligopoly
b. Objectives
c. Outcomes
d. Conclusions
9. The assessment of a firm’s current competitive position and the identification of
future valuable competitive positions and how to achieve them.
a. Strategic Alliance
b. Strategic business unit
c. Strategic Analysis
d. Stakeholders
10. A collection of businesses (assets) owned by a single entity.
a. competition
b. Portfolio
c. Core Business
d. Objective
Thank you for answering the test. Please see page

___ or you may use this code to join our google class:
______ for the key answer.
If you got a score below 5, go to page ____or click
this link______
The next segment is the content of this unit. It contains

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Please read the content.
Content
Strategy Vocabulary
Acquisition. A corporate action in which a company buys most, if not all, of the target
company’s ownership stakes in order to assume control of the target firm.
Activities. Discrete processes required to create, produce, sell, and deliver products.
Action Plan. A sequence of steps that must be taken, or activities that must be
successfully performed for a strategy to succeed.
Analysis. The process of gaining a better understanding of a complex topic by breaking
it into smaller parts.
Barriers to Entry. Factors created by incumbent firms to deter competition.
Business Model. Describes the rationale of how an organization creates, delivers, and
captures value
Business Level Strategy. How an individual business competes in its particular
marketplace. It focus is orchestrating activities in the pursuit of competitive advantage.
Capability. The orchestration and use of firm resources
Challenge. Any feature of the business environment, either internal or external, which
necessitates the intelligent application of resources and capabilities to surmount.
Competitive advantage. How a business is able to orchestrate its activities to offer its
customers greater value, either by means of lower prices, or by providing greater benefits
and services that justifies a higher price.

Core business. The primary activity that defines a firms’ main emphasis.
Core Competence. A unique ability that a company develops and that cannot be easily
imitated.
Corporate-level strategy. Is concerned with the overall scope of the organizations and
how value is added to the constituent business of the organization as a whole.
Differentiation. Involves uniqueness in some dimension that is sufficiently valued by
customers to allow a price premium.
Diversification. When a firm enters an industry different from its existing businesses.
Exit Barriers. Factors making it more difficult for a firm to get out of a particular business
than it would otherwise have been.
Feasibility. Answers if a firm has the necessary components to achieve a result and if
that result is attractive in terms of return and risk.
Findings. Factual and verifiable statements.
Fit. Expresses the degree to which an organization matching its resources and capabilities
with the challenges and opportunities of the external environment.
Goal. The general direction that determine the focus of the organization.
Industry. A groups of firms producing similar products from similar supplies and selling to
similar customers.. A subset of a sector.
Innovation. Involves deliberate application of information, imagination, and initiative in
delivering greater or different values from resources. New ideas generated and converted
into useful products or to make existing products more profitable.
Joint venture. A contractual agreement joining together two or more parties for the
purpose of executing a particular business undertaking.
Market development. Offering existing products to new markets, either segments or
geographies.
Market Penetration. A measure of the amount of sales or adoption of a product compared
to the total theoretical market for that product.
Market Segment. A group of customers who have similar needs that are different from
customer needs in other parts of the market.
Mission statement. Aim to provide the employees and the stakeholders with clarity about
the overriding purpose of the organization.
Objective. Specific and quantifiable outcomes that when achieved propel the firm towards
it goals.
Portfolio. A collection of businesses (assets) owned by a single entity.

Recommendation. Clear and concise proposal of what should be done and why.
Resources. Inputs into a firm’s production processes.
Stakeholders. Individuals or groups who can affect or be affected by the actions of a firm.
Strategic Analysis. The assessment of a firm’s current competitive position and the
identification of future valuable competitive positions and how to achieved them.
Strategic Business Unit (SBU). A distinct business within a corporation that has its own
customers, competition, and draws upon its own resources and capabilities.
Strategic direction. The basic scheme for how the organization will achieve its vision.
Strategic drift. The tendency for strategies to develop incrementally on the basis of
historical and cultural influences, but fail to keep pace with a changing environment.
Strategic Gap. A market opportunity that is either not recognized or fully exploited by
competitors.
Strategy. The direction and scope of an organization over the long term, which aims to
achieve advantage in a changing environment by configuring resources and capabilities
to satisfy stakeholder expectations.
Strength. A superior resource and or capability that a firm can leverage to outperform
competition and or meet challenges in an environment.
Structure. Relate to how a business is organized in terms of businesses, and
management.
Tactics. The doing aspect that follows the planning.
Tool. An implement used in the practice of a vocation to get a predetermined result. In
terms of strategy tools are the frameworks, language, matrices, and other techniques used
to make decisions.
Value Chain. A framework that is used to organize the activities a business must perform
to create, make, distribute, sell, and service a product.
Values. The guiding principles of the firm. Creates procedure for How a firm will fulfill its
mission and achieve its vision.
Weaknesses. An inferior or absent resource and or capability that competition may exploit
to gain advantage.
What is strategic Management?

Strategic Management is the art and science of formulating, implementing, and
evaluating the overall organization’s plans to achieve its long-term objectives. It concerns
the future, the direction a company moving forward say 5 years from now. Strategic

management involves making decisions for the whole organization integrating the different
functions of management -- marketing, finance/accounting, production/operations,
research and development, and information systems to achieve organizational success
(David, 2011).
When we say strategic management, it involves formulating a strategy. A strategy
is a master plan, a plan of action or policy designed to achieve a major or overall aim
("Strategy | Definition of Strategy by Oxford Dictionary on Lexico.com also meaning of
Strategy", 2020). To understand strategy in a simple way, Professor Henry Mintzberg of
McGill University in Montreal, Canada (as cited by Mastering Strategic Management,
2016) defined strategy using the mnemonics 5 Ps -- Plan, Ploy, Position, Pattern and
Perspective. Familiarizing these five concepts is important as a jumpstart to grasp the
definition of strategic management.
Plan. First, one can view a strategy as a plan. A strategic plan is a carefully crafted set of
steps that a firm intends to follow to be successful. Every organization or even an individual
creates a strategic plan to guide one’s future (Mastering Strategic Management, 2016).
Say for instance, a college student studies hard and earns good grades to land a good job
after graduation for future success.
Ploy. Another way to view strategy is to equate it as a ploy. A strategic ploy is a specific
move designed to outwit or trick competitors. Ploys are actions that turn a situation to
one’s own advantage and it often involves creativity (Mastering Strategic Management,
2016). For example, Jollibee Food Corporation started as a small ice cream store but
evolved into a fast food chain giant when it learned that burgers and fried chicken are
more profitable from its international competitors such as the number one food chain in
the world--McDonald’s.
Pattern. The third way is to view strategy as a pattern. This emphasizes the actions of the
company as consistent over time. Let’s take Apple Inc. as an example. Apple has been
consistent over the years in introducing innovative products in the market, always the
trendsetter and first mover in the computer industry, may it be smartphone, tablet,
lightweight and compact computers. But take note, it is not also good to follow a pattern

too closely. A consistent pattern can make a company predictable, a possibility that a firm
may be outwitted by other competitors (Mastering Strategic Management, 2016).
Position. Viewing strategy as a plan, a ploy, and a pattern involve only the actions of a
single firm. In contrast, the fourth P—strategy as position—considers a firm and its
competitors. Strategy as position refers to a firm’s place in the industry relative to its
competitors (Mastering Strategic Management, 2016). McDonald’s, for example, has long
been and remains the clear leader among fast food chains. Being the market leader,
however, also makes McDonald’s a target for rivals such as Burger King and Jollibee.
These firms create their strategies with McDonald’s as a primary concern. Jollibee even
surpassed McDonald’s in terms of market share in the Philippines.
Perspective. The fifth and final P shifts the focus to inside the minds of the executives
running a firm. Strategy as perspective refers to how executives interpret the competitive
landscape around them. Because each person is unique, two different executives could
look at the same event—such as a new competitor emerging—and attach different
meanings to it. One might just see a new threat to his or her firm’s sales; the other might
view the newcomer as a potential ally (Mastering Strategic Management, 2016). Say for
instance, Amazon.com--the largest online retailer in the world, does not consider other
online sellers as competitors but instead it offers them a platform to sell their products at
a larger scale and market reach with the best customer service and logistics system in
place.

Nature of Strategy
There are various definitions of marketing as given various authors:
To Drucker (1954), Strategy is analyzing the present situation and changing it
whenever necessary. Incorporated within this is finding out what one’s resources are or
what they should be.
To Porter (1996), Strategy means performing different activities to those
performed by rivals or performing the same activities differently.
To Thompson & Strickland III (1995), Strategy is a set of competitive changes
and business approaches that managers perform to achieve the best performance of the
company. It is the managerial plan to enhance the organization’s position in the market,
boost customer satisfaction and achieve performance targets.
To Wright, Kroll & Parnell (1997), Strategy is the set of plans from top
management to achieve results consistent with the organizational mission and objectives.
Features of Strategy
Strategy is significant because it is not possible to foresee the future. Without a

perfect foresight, the firms must be ready to deal with the uncertain events which constitute
the business environment. Strategy deals with long term developments rather than routine
operations, i.e. it deals with probability of innovations or new products, new methods of
productions, or new markets to be developed in future. Strategy is created to take into
account the probable behavior of customers and competitors. Strategies dealing with
employees will predict the employee behavior. It is the direction and scope of a firm over
the long term, which achieves advantage in a changing environment by configuring
resources and capabilities in order to meet stakeholder expectation. This involves
analysis, Trade-offs and Execution.
Three levels of Strategy
1. Corporate-level strategy. Explains what businesses or markets a firm should
compete in. Answers what the firm’s overall portfolio of businesses should contain.
2. Business-level strategy. Relates to how a firm should operate with its selected
businesses. What products or services a firm should offer, how the firm should
create those products or services; how the firm should take its products or services
of the marketplace. It should articulate what advantage a firm should aim for to
achieve its desired results.
3. Operational-level strategy. Dictates how a firm should operate within specific
functional areas (eg. Marketing, production, finance & etc.)

Strategy Model
Direction
The firm’s vision as evidenced by its values scope of operations in

terms of products and markets.
Strategic Map
How a firm positions itself in the market and develops and

coordinates its resources and capabilities to drive the firm in its direction.
Strategic Actions
The discrete choices a firm makes to execute the strategic map to

follow its direction
3 C’s of A Strategic Action
A strategic choice must take into account:
 Delivering Customer value

 Optimizing the Company’s resources and capabilities
 Understanding Competitors and their possible retaliation
Strategic Decisions are about:
 The long-term direction of an organization

 The scope of an organization’s activities
 Gaining advantage over competitors
 Addressing changes in the business environment
 Building on resources and capabilities
 Understanding expectations and stake and shareholders
Therefore they are likely to:
 Be complex, sticky, messy, seemingly

 Be made in situations of uncertainty
 Affect operational decisions
 Involve considerable change

The Product Life Cycle
 Virtually all products have a limited life span until a better solution to the
customer’s problem comes along.
 Life cycles follow for the most part predictable patterns
 Market conditions, opportunities and challenges vary over the cycle
 Marketing strategies need to adapt over the life cycle
Introduction
 Stimulate demand
 Promotion campaigns to get increase public awareness
 Explain how the product is used. Feature, advantages, benefits
 Need to spend a lot of money on promotion
 You will likely lose money, but expect to make profits in the future
 High risk as product is new
Growth
 Significant sales. The seller tries to sell as much as possible

 Other competitor companies watch, and decide about joining in with a
competitor product
 Growth will continue until too many competitors in the market and the market
is saturated
 At the end of the growth, profits start to decline when competition means you
have to spend more money on promotion to keep sales going
Maturity
 Many competitors have joined. The market is saturated

 It is difficult to tell the different between products since most have the same
FAB ( Features, Advantages and Benefits)
 The only way to sell is to begin to lower the price, thus profits decrease
 Competition can get “nasty” and promotion is intense.
Decline
 Newer products are now more attractive even a low price does not make
consumers want to buy
 Profit margin declines and so the only way to make money is to sell a high
volume or become the lowest cost producer
Strategic Drift. Company goes slowly off course and return decrease.
Strategic Drift occurs:
 Alignment with environmental change . The environment/market needs are

changing slowly so business sees no reason for dramatic change.
 Past success. Been successful, no need to change
 Relationships become shackles
 Not that easy to spot
Transformational change or Death. Making changes that will better align resources and
capabilities to better navigate the long term or get bought out to go out of business.
How firms deal with change?
 Adaptation. The extent of change that can be accommodated in a current culture

 Evolution. Managers have planned for change and fostered cultural components
to be able to support gradual but significant change
 Revolution. Requires major culture change and rapid and major strategic
transformation
Thank you for reading the whole content for this unit 1
session. It’s now time for you to evaluate your thoughtful
readings. The higher score that you gain in the case analysis,
the more points that you have…
Now that you had learned about the Overview of
Strategic Management and Analysis, the Product Lifecycle,
and Strategic Drift, do the succeeding learning activities. If you
have questions regarding the activity, you may visit our google
class with this code________ or contact me to the number
indicated in the course guide. If you had poor connectivity, you
are given another week to accomplish the tasks.

Learning Activities
Activity No. 1 The Last Kodak Moment Case

Directions: Complete the requirements below and submit your work in the pigeon
boxes which are provided in your departments/college, or to google class on or before the
date as reflected in your study schedule. Click this link _________ and read it thoroughly
and analyze carefully. Answers the questions and use the space below for your answer.
See attach rubrics in the google class or you may access on your module on page____.
Question #1 Identify four errors in strategy that Kodak made.
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Question #2 Identify four positive strategic moves that Fuji made.
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Thank you for completing the task. If you have

not completed the task, or you have difficulty in
accomplishing the activity, please send me a message
to our google class or you may ask clarifications
through a text message or phone calls on the contact
number included in your course guide.
And now, you are ready for the next learning
activity.
Activity 2. Case Study Assessment

Directions: Complete the requirements below and submit your work in the pigeon boxes
which are provided in your departments/college, or to google class on or before the date
as reflected in your study schedule. See attach rubrics in the google class or you may
access on your module on page____. Make an assessment on the case that you have
read. What is the major lesson you can take away from this case study? Use the space
for your writing. Use the space below as your draft.
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Congratulations!!!!!! You did a great job! You may now

take the assessment. If you have not completed the
task, or you have difficulty in accomplishing the activity,
please send me a message to our google class or you
“Draft. Not Intended
may ask clarifications through afor Publication.
text message orFor Classroom Use Only.”
phone
calls on the contact number included in your course
guide.
Assessment
Directions: Read the following statements, and identify your correct answer and write
your answer on the space provided before each number. See page _____. The case study
“The last Kodak Moment” is also uploaded in our google class under classwork. Use this
class code: __________.
_________________1. Dictates how a firm should operate within specific functional
areas.
________________ 2. Explains what businesses or markets a firm should compete in.
Answers what the firm’s overall portfolio of businesses should contain.
_________________3. Relates to how a firm should operate with its selected businesses.
_________________4. Profits start to decline when competition means you have to
spend more money on promotion to keep sales going
_________________5. The market is saturated.
_________________6. Company goes slowly off course and return decrease.
_________________7. Managers have planned for change and fostered cultural
components to be able to support gradual but significant change
_________________8. Requires major culture change and rapid and major strategic
transformation
_________________9. Performing different activities to those performed by rivals or
performing the same activities differently.
_________________10. The assessment of a firm’s current competitive position and the
Good job. Thank you for answering the test. If you got a score
below 5, go to page____ or click this link
___________________________________________for further
readings) If you have difficulty in accessing the material online,
you may read the material uploaded in google class using this
class code _____________.
And now, you are ready to level up your performance. Do the
succeeding assessment.
Title : Analyzing and creating marketing strategies

Directions: Using your own ideas on strategic management and analysis, create your
own strategy in solving the problem that Kodak faces. Please click this link
___________________________________________________ as your material on the
basis of your output. Using your initiative, compile videos that support your ideas and turn
in the Google class using this code ______ or may burn in a CD and submit your work in
the pigeon boxes which are provided in your department/college on or before the date as
reflected in your study schedule. See Rubric on page ____. You may view the rubric in
the classwork.

If you have poor connectivity, unavailability of internet

connection and resources (CP, video camera, laptop
etc.) please notify me though my FB account so I could
extend the deadline of the submission of your output.
Hurray!!!!! You did a great job! If you have not completed the task, or
you have difficulty in accomplishing the activity, please send me a message
to our google class, or you may ask clarifications through online, just
message me in my FB account or may text on the contact number included
in your course guide. You may write your insights or thoughts about the
activity on the space provided.
You had just completed this unit. You are now ready to take Unit 2.
Write your
You may insert
thoughts your picture
Here!!!!!

Unit 2 Business Model Analysis
Analyzing your business model can help to determine whether a

venture is, or will be, viable and valuable. This requires insight into several
elements of the business model, attributes of these elements and the
relations between different elements. Analyzing these elements will
provide the foundation for business model change and innovation in an
organization. You can analyze a business model from several different
perspectives.
Learning Outcomes
 Develop business models that support a company's strategic objectives.

 Analyze and create business model from several different perspectives.
Pre-Test
Examines what Strategic Marketing cover. Objective Type

Directions: Read the following questions. Select the most appropriate out of the
various alternatives given in each of the following questions. Encircle the letter of the
correct answer. You may view this test at ______. Use the code _____.
1. Describes the rationale of how an organization creates, delivers, and captures

value.
a. Business model
b. Business Analysis
c. Model Analysis
d. Business management
2. Describes what creates value for a targeted customer segment
a. Customer segment
b. Value propositions
c. channels
d. value analysis
3. Delivered to customers through communication, distribution and sales channels.
a. transaction
b. sales
c. channels
d. customer relationships
4. the types of relationships the firm establishes with its customers.
a. Suppliers relationship
b. Owners relationship
c. Channel relationship
d. Customer relationship
5. The most important assets required to deliver our value proposition, distribution
channel, and customer relationships
a. Key capabilities
b. Key resources
c. Key result area
d. None of the above
6. The most important activities a company must do, in order to deliver its value
proposition
a. Key capabilities
b. Key result area
c. Key resources
d. Key informants
7. The most important costs inherent in deliver the value proposition
a. structure
b. cost infrastructure
c. cost structure
d. infrastructure
8. For what value are our customers really willing to pay?
a. Revenue
b. Streams
c. Revenue streams
d. Economic streams
9. Motivations for partnership
a. Industry
b. supplier
c. Key partner
d. partnership
10. A tool to help you understand a business model in a straightforward, structured
way.
a. Model canvas
b. Business canvas
c. Business model
d. Business model canvas

Thank you for answering the test. Please

see page ___ or you may use this code to join our
google class: ______ for the key answer.
If you got a score below 5, go to page
____or click this link______
The next segment is the content of this unit.
It contains vital information of the topics based on
the learning outcomes. Please read the content.
Content
A Business Model
A business model describe the rationale of how an organization creates, delivers,
and captures value. It can best be described through nine basic building blocks that show
the logic of how a companyintends to make money. The business model is like a blueprint
for a strategy to be implemented through oranizational structures, processes, and
systems. The business model defines the manner by which the enterprise creates and
delivers value to customers, entices customers to pay for value and converts those
payments to profits.
Key
Partners Channels
Value
Key Proposition: Customer
Activities Products & Segments

Services
Key Customer
Resources Relationships
Cost Structure Revenue Streams

The Business Model Canvas
The Business Model Canvas is a useful tool to help you understand a business
model in a straightforward, structured way. Using this canvas will lead to insights about
the customers you serve, what value propositions are offered through what channels, and
how your company makes money. The Business Model Canvas reflects systematically on
your business model, so you can focus on your business model segment by segment.
This also means you can start with a brain dump, filling out the segments the spring to
your mind first and then work on the empty segments to close the gaps. The following list
with questions will help you brainstorm and compare several variations and ideas for your
next business model innovation. You can also use the business model canvas to
understand your own business model or that of a competitor (Osterwalder, 2009).
How to use the canvas?
The business model canvas is a shared language for describing, visualizing,

assessing and changing business models. It describes the rationale of how an
organization creates, delivers and captures value.
1. Customer segments
 List the top three segments. Look for the segments that provide the most revenue.
 For whom are we creating value?
 Who are the most importnat customers?
2. Value proposition
 Describes what creates value for a targeted customer segment such as

accessibility, convenience, usability,design, performance, brand/status
 What are your products and services? What is the job you get done for your
customer?

3. Revenue streams
 For what value are our customers really willing to pay? Like usage free,
subscripotion fee, advertising, licensing and service
 List your top three revenue streams. If you do things for free, add them here too.
4. Channels
 How do you communicate with your customer? How do you deliver the value
proposition?
 Which channels do our customer segments want to be reached? How are we
reaching them now? Which are wroking best or not working?
 Enabling customers to evaluate a firm’s products
 Allowing customers to purchase
There are five phases through which a channel passes. A channel can be
covering more than one of these phases at a time.
Phase 1: Awareness. How do we educate customers about the characteristics of our
products and services? This is the marketing and advertising phase. It is about how the
company informs its customer about the value proposition.
Phase 2: Evaluation. How can we aid customers in evaluating our value proposition?
This is the promotion or ‘Try me before you buy me’ phase. The customer will evaluate,
read about or use the product and form an opinion about it.
Phase 3: Purchase. How can we help customers in buying their preferred product or
service? This is the sale process and indicates money that is exchanged for specific goods
and services.
Phase 4: Delivery. How do we deliver the promised value proposition to the
customer? This is the fulfillment stage and defines how the product will reach the
customer.
Phase 5: After Sales. How can we provide after sales customer care and support?
This stage provides a person for the customer to call when they have a problem or
question about the product. The higher the value of the product, the more likely it is that
customer will require after sales support.
5. Customer relationships
 The types of relationships the firm estbalishes with its customers.

 What types of relationships does our customer expect and how much does this
cost.
 How does this show up and how do you maintain the relationship?
6. Key activities

 What do you do every day to run your business model?

7. Key resources
 The most imporatnt assets rewuired to deliver our value proposition, distribution
channel, and customer relationships
 The people, knowledge, means, and money you need to run your business.
8. Key partners
 List the partners that you can’t do business without (not suppliers).
 Who are key partners in terms of suppliers and intermediaries between the firm
and its end-users?
 Which key resources are we acquiring from partners?
 Which key activities do partners perform?
9. Cost structure
 List your top costs by looking at activities

 What are the most important inherent in delivering the value proposition?
 Which key resources are most expensive and which key capabilities are most
expensive?
 Is our business model more cost driven or value driven?
Business Model Analysis

Analyzing your business model can help to determine whether a venture is, or will
be, viable and valuable. After completing a Business Model Canvas for a current or future
business model, designers often ask the following questions:
 Where are our revenues coming from?

 What value is delivered to which markets?
 What costs are involved in delivering that value?
 Are our perceived key activities and key resources as important for gaining
revenue as we think they are?
 If we change our model in a specific way, what are the effects?
This requires insight into several elements of the business model, attributes of
these elements and the relations between different elements. Analyzing these elements
will provide the foundation for business model change and innovation in an organization.
You can analyze a business model from several different perspectives.
Below is an example of model canvas with each possibility is analyzed from a
different perspective, and answers a specific question.

Case and tool introduction

Using the Nextpresso example, present different possibilities for analysis on the
Business Model Canvas.
Introduction
The Nextpresso machines brew espresso from coffee capsules, a type of pre-
apportioned single-use aluminium container of roasted coffee in a variety of flavours.
Nextpresso initially operates in the Dutch coffee market and intends to “cuppify” the
traditional coffee world from there.
Using a tool for Business Modelling is useful since the model is created and stored
in a central place, reducing the risk of miscommunication and maximizing the effect of
collaboration. Furthermore, communication is made easier through publication functions
(html, word, pdf-posters), making the business model more accessible. Needless to say,
this is quite important for models that describe how your company creates value.
Especially in the case of Business Model Analysis, tooling can help identifying strengths
and weaknesses through relating building blocks, and providing insight in cash flows by
calculations. Finally, tools help you to work your way “downstream” from your high level
business model, to more detailed implementation views e.g. process models, customer
journey maps and enterprise architecture models.
Business Model Canvas for ‘Nextpresso’
The Canvas below presents the current business model of Nextpresso.
Nextpresso provides “Great espresso experiences at home and at the office”.
Business Model Canvas made for Nextpresso
Comparison of business models

If Nextpresco enter a new market, how will this affect their revenues? If they stop
providing certain services, will they decrease their costs? Why is their competitor’s model
more successful than their company? Comparing different business models is useful in
addressing such questions. The Nextpresso case provides a good example of such an
analysis:
New Business Model Canvas Nextpresso
The Canvas represents the business model of Nextpresso according to the

situation before the value proposition ‘Great espresso experience at the office’ was added.
At first Nextpresso provided machines and cups for households only. You can see the
differences in Customer Segments, Channels, Customer Relationships and Revenue
Streams. When elements from the other business model are removed, these elements
should be indicated in red. By knowing these differences, Nextpresso can calculate the
differences in revenues and costs before and after this change.
In the next example, presents an example of calculating these costs and revenues.
Typical usage of business model comparison addresses questions regarding GAP-
analyses (difference between as-is and to-be models), analyses on optional changes to a
business model and comparison of alternative business models for the future. (Note: the
feature to compare business models canvasses is available on BiZZdesign Enterprise
Studio).
Analyzing Revenues and costs
What value do the company deliver to which markets and what costs are involved
in delivering that value? Where are their revenues coming from? What prices generate
what sort of revenues? The ‘Costs and revenues’ function provides a useful way of
addressing these questions. Organizations get a simple and clear view of the size of the
markets they operate in, revenues per revenue stream and costs per cost structure.

Costs and Revenues. Business Model Canvas Nextpresso
Detailed costs structure. Business Model Canvas Nextpresso
Analyzing the customer relations

In the Nextpresso case, management might ask: Do we have different operating
concepts for our segments ‘Households’, ‘Office users’ and ‘Companies’? Why? How
many? An answer can be found by using the Customer Relations Landscape Map in
Enterprise Studio:
Analyzing the channels

If you want to analyze, in addition to standard PMCs, through what channels your
value propositions are delivered to your market segments, the ‘Channels Landscape Map’
can be of service. With this matrix, organizations can get better insight in how they deliver
value.
Channels. Business Model Canvas Nextpresso

session. It’s now time for you to evaluate your kind readings.
The higher score that you gain in the case analysis, the more
points that you have…
Now that you had learned about the Business Model
Analysis, do the succeeding learning activities. If you have
questions regarding the activity, you may visit our google class
with this code________ or contact me to the number indicated
in the course guide. If you had poor connectivity, you are given
another week to accomplish the tasks.
Learning Activities
Activity 1: Reflection Paper Writing and Publishing
Activity No. 1 The Business Model Canvas

as reflected in your study schedule. Click this link https://bizzdesign.com/blog/strategic-
use-of-business-models-the business-model-canvas/. Read and analyze the blog and
check if every customer segment is linked to a value proposition and a revenue stream.
Make sure everything on the left side of the canvas is needed to support the right side of
the canvas. Answers the questions and rank your business model’s performance from 1
to 10 (0:bad, 10:excellent) for each of the following questions and use the space below for
your answer. See attach rubrics in the google class or you may access on your module
on page____.
1. How much does switching costs prevent your customers from churning?
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2. How scalable is your business model?
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3. Does your business model produce recurring revenues?

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4. Do you earn before you spend?

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5. How much of the work can be done by others?

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6. Does your business model provide built-in protection from competition?

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7. On what cost structure is your business model based?
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to our google class or you may ask clarifications
activity.
Activity 2. Visualizing model canvas

as reflected in your study schedule. See attach rubrics in the google class or you may
access on your module on page____. Visualize your business model base on the given
instruction. Take a snapshot picture of any established business model canvas and
discuss the model. Filter out the design criteria and test your assumptions. Click the links
for your reference.
 https://www.youtube.com/watch?v=f60dheI4ARg
 https://drive.google.com/drive/folders/0BwfwDyIjqrFeRnFMb1FDUVRuRDA;
 https://drive.google.com/drive/folders/0BwfwDyIjqrFeRnFMb1FDUVRuRDA;
 https://www.cleverism.com/key-activities-block-business-model-canvas/
Use the space for your writing. Use the space below as your draft.


task, or you have difficulty in accomplishing the
activity, please send me a message to our google
class or you may ask clarifications through a text
message or phone calls on the contact number
included in your course guide.
Assessment
your answer on the space provided before each number. See page _____ for more
readings. Use this class code: __________.
_________________1. Business model can help to determine whether a venture is, or
will be, viable and valuable.
_________________2. A shared language for describing, visualizing, assessing and
changing business models.
_________________3. Describe the rationale of how an organization creates, delivers,
and captures value.
_________________4. This is the promotion or ‘Try me before you buy me’ phase.
_________________5. This stage provides a person for the customer to call when they
have a problem or question about the product.
_________________6. This is the marketing and advertising phase.
_________________7. This is the sale process and indicates money that is exchanged
for specific goods and services.
_________________8. This is the fulfillment stage and defines how the product will
reach the customer.
_________________9. Look for the segments that provide the most revenue.
_________________10. Describes what creates value for a targeted customer segment
such as accessibility, convenience, usability, design, performance, and brand/status.
Good job. Thank you for answering the test. If you got a
score below 5, go to page____ for further readings. If you have
difficulty in accessing the material online, you may read the
material uploaded in google class using this class code
_____________.
And now, you are ready to level up your performance.
Title : Analyzing and creating marketing strategies
Do the succeeding assessment.
Title: Creation of Business Model Canvas
Directions: Based on your profound understanding of unit 2, create your own business
model canvas for any of the following industries/sectors. Your model may be the industry
itself or a specific business under the said industry. The industry are as follows: Public
transportation, banking & insurance, Information services (media), Tourism and
accommodation and Utilities (power and water). Please use google search as your
reference on the basis of your output. Turn in your output in the Google class using this
code ______ or you may print and submit your work in the pigeon boxes which are
provided in your department/college on or before the date as reflected in your study
schedule. See Rubric on page ____ or you may view the rubric in the classwork.
If you have poor connectivity, unavailability

of internet connection and resources (CP, video
camera, laptop etc.) please notify me though my FB
account so I could extend the deadline of the
submission of your output.
Hurray!!!!! You did a great job! If you have not

completed the task, or you have difficulty in
accomplishing the activity, please send me a
message to our google class, or you may ask
clarifications through online, just message me in my
FB account or may text on the contact number
included in your course guide. You may write your
insights or thoughts about the activity on the space
provided.
You had just completed this unit. You are now
ready to take Unit 3

Unit 3 Macro-Environment Issues and Tools
The macroenvironment encompasses a number of

variables that are beyond the control of an organization, but
which nonetheless require analysis to realign corporate and
marketing strategy to shifting business environments. The
major external and uncontrollable factors that influence an
organization's decision making, and affect its performance
and strategies. The major forces in the macroenvironment are
viewed to be political, economic, socio-cultural, technological,
demographics and ecological. There are three interrelated
tools for analyzing the broad macro-environment of an
organization.
Learning outcomes
At the end of this unit, you will be able to:
 Apply relevant tools and identify key drivers in this macro-environment and use
these key drivers to construct alternative scenarios with regard to environmental
change.
 Analyze the broad macro-environment of organizations in terms of political,
economic, social, technological, environmental (green) and legal factors
(PESTEL).
Pre-Test
Multiple Choice
Directions: Read the following questions and encircle the letter of the correct answer.
You may view this test at ______. Use the code _____.
1. The sum total of all surroundings of a living organism.
a. External environment
b. Internal environment
c. Environment
d. Surroundings

2. Consisting of the general and global (or national) factors which might influence the
lower layers in the economic activities.
a. Internal environment
b. Environment
c. Macro environment
d. Geographical
3. Group of companies producing the same products and services
a. Customer
b. Industry
c. Supplier
d. Intermediaries
4. A social unit of people that is structured and managed to meet a need or to pursue
collective goals
a. Company
b. Organization
c. Society
d. Customer
5. An analysis examines the influences of political, economic, social, and
technological factors of a business
a. PESTEl
b. PEST
c. DESTEP
d. All of the above
Thank you for answering the test. Please see page

___ or you may use this code to join our google class:
______ for the key answer.
If you got a score below 3, go to page ____or click
this link______
The next segment is the content of this unit. It

contains vital information of the topics based on the
learning outcomes. Please read the content.

Content
Environment
The environment is something we are very familiar with. It's everything that makes
up our surroundings and affects our ability to live on the earth. The sum total of all
surroundings of a living organism, including natural forces and other living things, which
provide conditions for development and growth as well as of danger and damage.
Layers of the Business Environment
Source: Exploring strategy, 10th edition, Gerry J, Richard W, etc. Pearson
Layers of business environment categorizes the complex business world into four
basic levels:
1. The macro-environment.
2. The industry (or sector).
3. Competitors.
4. The organization.
Macro-environment ranks the highest level, consisting of the general and global (or
national) factors which might influence the lower layers in the economic activities. It is the
fundamental guiding factor throwing light on the overall market conditions like nature and
kind of people, society, culture, lifestyle, the role of the government economic condition

along with presence and use of technology. PESTEL framework is favored in this condition
to grasp a whole picture of the market.
Role of Macro Environment in Business
As the principle guiding force, macro environment agents play a pivotal role in
determining the decisions of an organization. It helps the management to have a complete
understanding of the external or bigger environment. It further facilitates the decision-
making bodies to plan and devise the most appropriate strategies and goals and shall hit
the target in the given market scenario.
Such aspects make the macro environment the parent arm where planning,
strategizing and decision making are performed with the microenvironment organ of all
these features in the practical field.
The industry (or sectors) with a group of companies producing the same products and
services can be analyzed based on Porter’s Five Forces Framework.
Overview of Porter’s Five Forces

Michael Porter first outlined the five forces in a 1979 Harvard Business Review
article, and later in his book “Competitive Strategy: Techniques for Analyzing Industries
and Competitors” (1980).
The threat of new entrants to the market. Companies in markets with high
barriers to entry – whether through regulation, high fixed and/or start-up costs, protected
intellectual property, etc. – face less competition than companies in markets with lower
barriers. Oil and gas exploration is an example of a tough market to enter because it

requires a lot of capital to be able to spread the risks of an unprofitable drill across multiple
leases.
The power of the suppliers. If the number of suppliers for a sector is limited, then
those suppliers have a lot of pricing power over their client companies. This can lead to
the suppliers doing better than the buyers.
The power of the buyers. If an industry moves product through retailers or
distributors, then the buyers can exert the same type of pricing power to eat up the profit
margin. When an industry has to deal with the Wal-Marts of the world, they sometimes
have to give up more than a simple volume discount to get their goods listed. And if they
try to push back, there will be another supplier willing to bend over backward to work with
that buyer.
Availability of substitutes. Substitutes are the products or services a customer
can use to fill the same need. For example, if a cup of coffee costs too much to buy, a
customer can switch to tea or simply start brewing their own at home.
Competitive rivalry. This last force is used to sum up the level of competition
within an industry. If there are a multitude of players all trying to undercut each other, then
profit margins will reflect that. The airline industry is a great example of this: Carriers are
always attacking each other with competing routes and trying to steal customers away. A
lot of money has been lost in airlines.
Competitors and markets take into consideration of the two major issues: the strategic
groups and market segment. Strategic groups are defined as organizations within an
industry or sector with similar strategic characteristics, following similar strategies or
competing on similar bases (Exploring Strategy, Gerry J. Richard W. etc., Pearson). The
understanding of strategic groups can help better understand the competition and then
figure out strategic opportunities.
Organizations. A social unit of people that is structured and managed to meet a need or
to pursue collective goals. All organizations have a management structure that determines
relationships between the different activities and the members, and subdivides and
assigns roles, responsibilities, and authority to carry out different tasks. Organizations are
open systems--they affect and are affected by their environment. Market segment focuses
on the customers’ side, referring to groups of consumers who share similar needs that are
different than needs in other parts of the market. Specifically, consumer profiles can be
constructed based on certain indicators, for instance, demographic information (age,
gender, ethnicity), consumption power (disposable income), lifestyle etc.
Environmental Analysis
Scanning and monitoring an environment to identify both present and future
positives (opportunities) and negative trends (threats) that can impact a firm’s ability to
survive and thrive. Environmental analysis identifies:
 The attractiveness of an environment

 An industry’s main economic traits

 Key drivers of change
 Factors which are creating changes in competition dynamics
 The environmental factors that they are key to the organization’s competitive
success.
 Identify opportunities and threats portion of SWOT
 Identify and understand key factors driving change
 Identify and understand an environment’s constraints
The macro environment affects every business. It consists of many factors that, if left
unchecked, can destroy a business. To reduce the effects of negative factors, you must
first understand what macro environment analysis is and how to do it yourself. The Macro
environment is everywhere. A macro environment involves influences which affect the
entire economy of business. How much influence the macro environment has on a
company depends on how interlaced they are. Some factors, such as the economy, will
slowly affect every and all business. But companies facing economic downfall, and
potentially bankruptcy, are hurt more significantly than businesses in booming industries.
To do macro environment analysis, it’s wise to utilize accurate tools which are built
for this specific study. In this case, it’s PEST analysis.
PEST analysis examines the influences of political, economic, social, and
technological factors of a business. These factors can’t be controlled by firms directly.
Political factors may be related to the government. They consist of legislative bills, tax
policies, health and safety laws, and government stability. The average businessman can’t
lower taxes or introduce new legislation that’ll affect the entire economy. They must
instead understand these factors on a grand level and ensure their business aligns to
laws, regulations, and policies.
Economic factors, as discussed above, are related to inflation, taxes, unemployment, and
the recession. While people in business can track trends and implement planning, many
businesses are not recession proof.
Social factors consist of people (or consumers). They buy products based on many
different factors. This includes their demographic location, ethnic background, social
status, immediate needs, lifestyle changes and trends.
Technological factors are often referred to advancements in technology. Not only
technology used to develop and deliver products to consumers. But also the technology
used to run businesses efficiently. The company who is fastest, with the best agile
technology, can easily out beat the competition in any market. Keeping an eye out on
which technology is used in the industry can mean life or death for the firm.
SWOT Analysis
Use SWOT Analysis to assess your organization's current position before you
decide on any new strategy. Find out what's working well, and what's not so good. Ask

yourself where you want to go, how you might get there – and what might get in your way.
These are big issues, and you'll need a powerful but simple technique to help you: SWOT
Analysis.
What Is a SWOT Analysis?
SWOT stands for Strengths, Weaknesses, Opportunities, and Threats, and so a
SWOT Analysis is a technique for assessing these four aspects of your business. Click
this link http://www.mindtools.com/rs/SWOT for more details in a deeper understanding
how to conduct SWOT analysis. Below is the template for SWOT analysis
Figure 1 Template for SWOT Analysis
To clarify which section an idea belongs to, it may be useful to think of Strengths
and Weaknesses as internal factors – that is, to do with the organization, its assets,
processes, and people. Think of Opportunities and Threats as external factors, arising
from your market, your competition, and the wider economy.
Strengths. Strengths are things that your organization does particularly well, or in
a way that distinguishes you from your competitors. Think about the advantages your
organization has over other organizations. These might be the motivation of your staff,
access to certain materials, or a strong set of manufacturing processes.
Weaknesses. Now it's time to consider your organization's weaknesses. Be
honest! A SWOT Analysis will only be valuable if you gather all the information you need.
So, it's best to be realistic now, and face any unpleasant truths as soon as possible.
Weaknesses, like strengths, are inherent features of your organization, so focus on your
people, resources, systems, and procedures. Think about what you could improve, and
the sorts of practices you should avoid.
Opportunities. Opportunities are openings or chances for something positive to
happen, but you'll need to claim them for yourself! They usually arise from situations
outside your organization, and require an eye to what might happen in the future. They
might arise as developments in the market you serve, or in the technology you use. Being
able to spot and exploit opportunities can make a huge difference to your organization's
ability to compete and take the lead in your market. Think about good opportunities you
can spot immediately. These don't need to be game-changers: even small advantages
can increase your organization's competitiveness. What interesting market trends are you
aware of, large or small, which could have an impact?
Threats. Threats include anything that can negatively affect your business from
the outside, such as supply chain problems, shifts in market requirements, or a shortage
of recruits. It's vital to anticipate threats and to take action against them before you become
a victim of them and your growth stalls. Think about the obstacles you face in getting your
product to market and selling. You may notice that quality standards or specifications for
your products are changing, and that you'll need to change those products if you're to stay
in the lead. Evolving technology is an ever-present threat, as well as an opportunity!
The PESTEL
PESTEL framework is composed of the following ingredients and identify
important issues now and what are they likely to be issues in the future.
Politics. The role of government as an owner or customer.

Economic. Macro-economic factors such as exchange rates, business cycles and
differential economic growth rate, exchange rate, unemployment rates
Social factors. Changing cultures and demographics
Technology. Innovations such as communication, Internet revolutionizes series of
industries, nanotechnology, or composite materials
Ecological concerns. Pollution, waste, climate changes and certain environmental
issues are calling for more and stricter regulations, in a way that promote and/or limit the
investment and development of industries.

Legal factor. Legislative constraints or changes such health and safety,

competitive law, policies, regulations or regulatory guidance’s that could influence the
restore of the market.
Identifying Factors Driving Change
 Generic environmental analysis process. (Time Intensive)

1. Collect information (press, reports, competitors & etc.)
2. Categorize PESTEL data into Key Trends
3. Analyse (determine relevance, trends & etc.)
4. Frame as OPPORTUNITY or THREAT
5. Prioritize (focus on the most relevant)
6. Formulate assumptions and scenarios
7. Factors must relate to industry and market (segment and geography)
 Will vary by industry or sector
 Example: What are potential key drivers of change for a clothing retailer?
 Concern with social changes that drive consumer tastes and behaviour
 Forces affecting online shopping
 Scenarios: “What if…….”
 Managers must think about and consider different possibilities about how
the future may impact the firm
 Not intended to create a definite prediction of the future but rather
keep manager’s aware of possibilities
 Debate and learning are key to this process that tries to predict an uncertain
future
 Typically a best, worst and middle case scenario is created. Your
objective-build possible options
 Scenarios typically start from the key drivers with the greatest uncertainty.
 Such key drivers could create radically different views of the future
according to how they turn out.
 Scenarios are especially useful where:
 There are limited number of key drivers influencing the success of
the strategy
 There is a high degree of uncertainty about such influences
 Outcomes could be radically different
 Organizations have to make substantial commitments into the
future
Scenarios examples
 In the oil business, key drivers might be:

 Technological change
 Oil reserves
 Economic growth
 International political stability

 It might be assumed that technological change and oil reserves are relatively
stable, while economic growth and political stability are not
 Scenarios could be constructed around different views about future political
stability and economic growth.
PESTEL Common Errors
 Not selecting a geographic region

 When in a multi-country area- not giving specific examples (potential solution-
group into segments and name countries involved and approximate rates)
 Not giving data that substantiates the factor chosen (population growth)
 Confusing Technology: Factors should be new technologies that can affect the
business environment
 Inferring actions of the industry on particular PESTEL factors
 Mentoring your company in the analysis- A PESTEL analysis is pertinent to the
entire industry
Thank you for reading the whole content for this

unit 3 session. It now time for you to evaluate your
thoughtful readings. The higher score that you gain in the
learning activity, the more ideas that learned…
Now that you had scholarly about the Business
Model Analysis, do the succeeding learning activities. If
you have questions regarding the activity, you may visit
our google class with this code________ or contact me to
the number indicated in the course guide. If you had poor
connectivity, you are given another week to accomplish
the tasks.
Learning Activities
Activity No. 1 PEST ANALYSIS

which are provided in your departments/college, or turn in to google class on or before the
date as reflected in your studly schedule. Create a PEST analysis of Coronavirus that the
whole world experience right now. Identify important issues NOW and what are likely to
be issues in the FUTURE. Use the template below for your answer. See attach rubrics in
the google class or you may access on your module on page_. Refer below as your guide
of your output:
Political factors: Explanation of how political factors can affect your business.
Specifically breaking down laws and regulations you must follow for products to be sold
legally.
Economic factors: Address current sales and revenue; where the money is
coming from. What expenses and which laws/taxes/inflation percentages are affecting the
current cash flow.
Social factors: Looking at your target customer. Who are they? Why do they need
your product? What is affecting their spending habits?
Technological factors: What technology does your business rely on each day?
Go into depth, from manufacturing to website design, and everything in between.
Political Economic
Socio-cultural Technological

Congratulations!!!!!! You did dazzle output! You may

now take the assessment. If you have not completed
the task, or you have difficulty in accomplishing the
activity, please send me a message to our google class
or you may ask clarifications through a text message or
phone calls on the contact number included in your
course guide.
Assessment
Directions: Read the following statements and analyze. Write COBID 19 if the statement
is True and COVID Free if the statement if False. Write your answer on the space provided
before each number. See page _____. This material is also uploaded in our google class
under classwork. Use this class code: __________.
____________1. Action Plan is a sequence of steps that must be taken, or activities that
must be successfully performed for a strategy to succeed.
____________2. Analysis is the process of gaining a better understanding of a complex
topic by breaking it into smaller parts.
-------------------3. External forces is a feature of the business environment, either internal
or external, which necessitates the intelligent application of resources and capabilities to
surmount.
____________4. Relative advantage is how a business is able to orchestrate its activities
to offer its customers greater value, either by means of lower prices, or by providing
greater benefits and services that justifies a higher price.
____________5. Market Penetration is a measure of the amount of sales or adoption of
a product compared to the total theoretical market for that product.
____________6. Market Segment is a group of customers who have similar needs that
are different from customer needs in other parts of the market.
____________7. Vision statement aims to provide the employees and the stakeholders
with clarity about the overriding purpose of the organization.
____________8. Mission statement is specific and quantifiable outcomes that when
achieved propel the firm towards it goals.
____________9. TQM is a framework that is used to organize the activities a business
must perform to create, make, distribute, sell, and service a product.
____________10. Values is the guiding principles of the firm. Creates procedure for How
a firm will fulfill its mission and achieve its vision.

score below 5, go to page____ or click this link
___________________________________________for
further readings) If you have difficulty in accessing the
material online, you may read the material uploaded in
Google class using this class code _____________.
And now, you are ready to level up your performance. Do
the succeeding assessment
Title : PESTEL ANALYSIS

Direction: Complete the requirements below and submit your work in the pigeon boxes
which are provided in your departments/college, or turn in to Google class on or before
the date as reflected in your study schedule. Create a PESTEL analysis of the Airline
Industry. Select or pick a geographic region. Identify important issues NOW and what are
likely to be issues in the FUTURE. You can use any template for your answer. Make a
PowerPoint presentation on your output and present it via virtual presentation. See attach
rubrics in the Google class or you may access on your module on page_.

Unit 4 Industry Analysis, Competitive advantage
Industry analysis is a market assessment tool used

by businesses and analysts to understand the competitive
dynamics of an industry. It helps them get a sense of what is
happening in an industry, e.g., demand-supply statistics
degree of competition within the industry, state of
competition of the industry with other emerging industries,
future prospects of the industry taking into account
technological changes, credit system within the industry, and
the influence of external factors on the industry. And a
competitive advantage is an attribute that enables a
company to outperform its competitors. This allows a
company to achieve superior margins compared to its
competition and generates value for the company and its
shareholders.
Learning Outcomes
 to determine the opportunities and threats that exists for firms within a competitive
environment. They should be able to appreciate how the various forces operating
in an industry create or limit the chances for survival.
 to determine the strengths and weaknesses of a firm and to determine the core
competence that can be built on to establish a competitive advantage.
Pre-Test
Define the following using your own words of at least 50 words per terminology: Write
your answer in any sheet of paper using blue or black ball pen and turn in in the Google
class.
1. Industry
2. Analysis
3. Industry analysis
4. Sector
5. Segment
6. Competition
7. Concentration

Thank you for answering the test. Please see

page content for reference of your answer.
If you got a score below 5, go to page content

and review reading.
The next segment is the content of this unit. It

contains vital information of the topics based on the
learning outcomes. Please read the content.
Content
What is Industry ?
An industry is a group of companies that are related based on their

primary business activities. A group of productive enterprises or organizations that
produce or supply goods, services, or sources of income.
Defining the industry is an important part of the strategic process. Defining the
industry too broadly obscures differences among products, customers, or geographic
regions that are important to competition, strategic positioning, and profitability.
The boundaries of an industry consist of two primary dimensions:
 Scope of products
 Geographic scope
Product scope refers to the number of different items your company offers for sale. Your
business goals usually determine the scope of products you carry. You may run a
successful business based on a single product strategy or offer a much deeper line of
products to serve a wider range of customers. Your product scope determines your future
marketing strategies, profit goals and territory saturation.
Geographic Scope is the set of places with which a Web resource is associated.
What is Industry Analysis?

Industry Analysis is a market assessment tool designed to provide a business with an idea
of the complexity of a particular industry. Industry analysis involves reviewing the
economic, political and market factors that influence the way the industry develops. Major
factors can include the power wielded by suppliers and buyers, the condition of
competitors, and the likelihood of new market entrants.
Read more: http://www.businessdictionary.com/definition/industry-analysis.html

Industry analysis is conducted by the business entity or specifically an entrepreneur to

identify the factors which are influencing the sector that they have already or thinking
about investing in.
Sector vs. Industry vs. Segment
 A Sector is one of a few general segments in the economy within which a large
group of companies can be categorized. For example “tourism” would be a
sector.
 An Industry is a subset of a sector. It is a group of firms producing a close if not
identical product, in terms of composition and function that compete for buyers
seeking to satisfy specific needs and or desires. For example “Hotels” is an
industry.
 A segment is a subset of an industry. For example, Luxury Hotels is a segment
within the hotel industry. (Segment is interchangeable with the term strategic
groups)
Degrees of Industry Competition
 Perfect competition. Characterized by many buyers and sellers, many products

that are similar in nature and, as a result, many substitutes. It means there are few,
if any, barriers to entry for new companies, and prices are determined by supply
and demand. Thus, producers in a perfectly competitive market are subject to the
prices determined by the market and do not have any leverage.
 Monopolistic competition. A type of competition within an industry where all
firms produce similar yet not perfectly substitutable products. However, all firms
are profit maximizers, and all firms have some market power which means none
are price takers.
 An Oligopoly. Occurs when there are only few firms that make up an industry.
This select group of firms has control over the price and has high barriers to entry.
The products that the firms produce are often nearly identical and, therefore, the
companies, which are competing for market share, are interdependent as a result
of market forces. For example, Philip Morris International, British American
Tobacco companies.
 A monopoly. Is a market structure in which there is only one producer/seller for a
product. In other words, the single business is the industry. Entry into such a
market is restricted due to high costs or other impediments, which may be
economic, social or political.
Degrees of Industry Concentration
 Concentration within an industry refers to the degree to which a smaller number

of firms provide a major portion of the industry’s total production. A low
concentration ratio indicates greater competition among the firms in that industry
than one with a ratio nearing 100%, which would be evident in an industry
characterized by a true monopoly.

 The most common measure of concentration is the four-firm concentration

ratio, which is defined as the percentage of the industry’s output sold by the four
largest firms. An industry with a four- firm concentration ratio less than forty
percent is generally considered to be competitive.
Concentrated Industries
 Medical Imaging Equipment (World)) Whole body cylindrical scanners.
Examples: Siemens, Philips, Toshiba manufacturing company
 Lighting & Bulb Manufacturing (USA). Top four market share. To mention with:
 General Electrical Company
 Philips Electronics
 Siemens
 Toshiba
 Search Engines (USA). Example: Google, Yahoo, Microsoft (these are USA
market
 Mobile Providers (France). Example. France Telecom, SFR, Bouygues
Telecom
Fragmented Industries
An industry where the majority of the output is produced by many firms. There is
no clear leader whose actions impact the rest of the industry. Examples: advertising
agencies, auto repair shop, hotels, clothes and food retail, restaurants and airlines.
Porter Five Forces Model

Five competitive forces determine how the economic value is created by the
industry and divided among the companies that compose the industry versus value that
needs to be bargained away by customers and suppliers, or constrained by potential
new entrants ( or substitute products).
Therefore the 5f model helps to determine the industry’s attractiveness ( potential
profit). The right industry makes a huge difference in a firms chances for success. Also
helps to identify what factors can vary for the industry’s attractiveness to change as well.
Managerial Implications
 Which industries should be enter or leave?
 Help to determine degree of investment
 What influence can we exert?
 How are competitors differently affected?

Figure 1 – Porter's Five Forces
Competitive Rivalry. This looks at the number and strength of your competitors. How
many rivals do you have? Who are they, and how does the quality of their products and
services compare with yours? Where rivalry is intense, companies can attract customers
with aggressive price cuts and high-impact marketing campaigns. Also, in markets with
lots of rivals, your suppliers and buyers can go elsewhere if they feel that they're not getting
a good deal from you. On the other hand, where competitive rivalry is minimal, and no one
else is doing what you do, then you'll likely have tremendous strength and healthy profits.
Supplier Power. This is determined by how easy it is for your suppliers to increase their
prices. How many potential suppliers do you have? How unique is the product or service
that they provide, and how expensive would it be to switch from one supplier to another?
The more you have to choose from, the easier it will be to switch to a cheaper alternative.
But the fewer suppliers there are, and the more you need their help, the stronger their
position and their ability to charge you more. That can impact your profit. Firms that supply
the organization with the necessities to produce its product or service, including raw
materials, labor and finance.
Buyer Power. Here, you ask yourself how easy it is for buyers to drive your prices down.
How many buyers are there, and how big are their orders? How much would it cost them
to switch from your products and services to those of a rival? Are your buyers strong
enough to dictate terms to you?
When you deal with only a few savvy customers, they have more power, but your power
increases if you have many customers. The organizations immediate buyers, not
necessarily the end consumer.
Threat of Substitution. This refers to the likelihood of your customers finding a different
way of doing what you do. For example, if you supply a unique software product that
automates an important process, people may substitute it by doing the process manually
or by outsourcing it. A substitution that is easy and cheap to make can weaken your
position and threaten your profitability. So, this is simply offering similar product or services
with similar benefits to an industry’s product or services, but by a different process.
Threat of New Entry. Your position can be affected by people's ability to enter your
market. So, think about how easily this could be done. How easy is it to get a foothold in
your industry or market? How much would it cost, and how tightly is your sector regulated?
If it takes little money and effort to enter your market and compete effectively, or if you
have little protection for your key technologies, then rivals can quickly enter your market
and weaken your position. If you have strong and durable barriers to entry, then you can
preserve a favourable position and take fair advantage of it.
Rivalry among Existing Firms
 The nature and intensity of competition among firms. The more intensity, the more
industry profits are driven down.
 Rivalry will be affected by:
 Competitors balance – when rivals are similar in size, intense competition
can result as each striven to gain dominance
 Industry growth rate – when one rival grows more than the industry it may
come at expense of another firm
 Degree of Differentiation - firms with low differentiation compete on cost
 Competitive – are certain firms being aggressive in pursuing market share
Strategic Lock-in When suppliers “locks in” customers by creating high barriers to
switching to a competitor. Likely dependent on: market dominance, first mover advantage,
self-reinforcing commitment, ability, determination, and wherewithal to preserve the lock-
in position
Typical Steps in Industry Analysis
1. Define the relevant industry
 What products are in it? Omit the ones which are part of another distinct
industry?
 What is geographic scope of competition?
2. Identify the participants and segment them into groups, if appropriate
 Who are the buyers and buyer
 The suppliers and suppliers groups
 The competitors
 The substitute
 The potential entrants
3. Assess the underlying drivers of each competitive force to determine

which forces are strong and which forces are strong and which are weak
and why
4. Determine overall industry structure, and test the analysis for consistency
 Why is the level of profitability what it is?
 Which are the controlling forces for profitability
 Is the industry analysis consistent with actual long-run profitability
 Are more-profitable players better positioned in relation to the five forces
5. Analyse likely future changes in each force, both positive and negative
Competitive Analysis
A competitive analysis is a critical part of your company marketing plan. With this
evaluation, you can establish what makes your products or service unique--and therefore
what attributes you play up in order to attract your target market. A competitive analysis is
a strategy where you identify major competitors and research their products, sales, and
marketing strategies. By doing this, you can create solid business strategies that improve
upon your competitor's.
A competitive analysis helps you learn the ins and outs of how your competition
works. It also helps you identify what they're doing right and opportunities where you can
easily one-up them by using a strategy they haven't taken advantage of.
How to do a Competitive Analysis
1. Determine who your competitors are.
2. Determine what products your competitors offer.
3. Research your competitors sales tactics and results.
4. Analyze how your competitors market their products.
5. Take note of your competition's content strategy.
6. Analyze the level of engagement on your competitor's content.
7. Observe how they promote marketing content.
8. Look at their social media presence, strategies, and go-to platforms
9. Perform a SWOT Analysis to learn their strengths, weaknesses, opportunities, and
threats.
Determine who your competitors are.

First, you'll need to figure out who you're really competing with so you can compare
the data accurately. What works in a business similar to yours may not work for your brand.
So how can you do this? Divide your “competitors” into two categories: direct and
indirect.
Direct competitors are businesses that offer a product or service that could pass as a
similar substitute for yours, and that operate in your same geographic area. On the flip
side, an indirect competitor is one that provides products that are not the same but could
satisfy the same customer need or solve the same problem.

2. Determine what products your competitors offer.

At the heart of any business is its product or service, which is what makes this a
good place to start. You'll want to analyze your competitor's complete product line and the
quality of the products or services they're offering.
3. Research your competitors sales tactics and results.
Running a sales analysis of your competitors can be a bit tricky. You'll want to track down
the answers to questions such as:
1. What does the sales process look like?
2. What channels are they selling through?
3. Do they have multiple locations and how does this give them an advantage?
4. Are they expanding? Scaling down?
5. Do they have partner reselling programs?
6. What are their customers reasons for not buying? For ending their relationship with
the company?
7. What are their revenues each year? What about total sales volume?
8. Do they regularly discount their products or services?
9. How involved is a salesperson in the process?
4. Analyze how your competitors market their products.
Analyzing your competitor's website is the fastest way to gauge their marketing
efforts. Take note of any of the following items and copy down the specific URL for future
reference:
1. Do they have a blog?
2. Are they creating whitepapers or ebooks?
3. Do they post videos or webinars?
4. Do they have a podcast?
5. Are they using static visual content such as info graphics and cartoons?
6. What about slide decks?
7. Do they have a FAQs section?
8. Are there featured articles?
9. Do you see press releases?
10. Do they have a media kit?
11. What about case studies?
12. Do they publish buying guides and data sheets?
13. What online and offline advertising campaigns are they running?
5. Take note of your competition's content strategy.

Then, take a look at the quantity of these items. Do they have several hundred blog posts
or a small handful? Are there five white papers and just one e-book?
Next, determine the frequency of these content assets. Are they publishing something
new each week or once a month? How often does a new e-book or case study come out?
6. Analyze the level of engagement on your competitor's content.

To gauge how engaging your competitor's content is to their readers, you'll need to see
how their target audience responds to what they're posting.
7. Observe how they promote their marketing content.
From engagement, you'll move right along to your competitor's content promotion
strategy.
1. Keyword density in the copy itself
2. Image ALT text tags
3. Use of internal linking
8. Look at their social media presence, strategies, and go-to platforms
The last area you'll want to evaluate when it comes to marketing is your
competitor's social media presence and engagement rates. How does your competition
drive engagement with their brand through social media? Do you see social sharing
buttons with each article? Does your competitor have links to their social media channels
in the header, footer, or somewhere else? Are these clearly visible? Do they use calls-to-
action with these buttons?
9. Perform a SWOT Analysis to learn their strengths, weaknesses, opportunities,
and threats
As you evaluate each component in your competitor analysis (business, sales, and
marketing), get into the habit of performing a simplified SWOT analysis at the same time.
This means you'll take note of your competitor's strengths, weaknesses, opportunities,
and threats any time you assess an overall grade.
Competitors and Markets
An industry or sector may be too high a level to provide for detailed understanding
of the competition. The five forces can act differently on various kinds of players. For
example: Renault and Porche may be in the same broad industry, but they are positioned
in different market segments, and therefore face different types of buyers power and
supplier power.
Make industries contains a range of companies, different capabilities, and compete
on different bases. These competitor differences can be thought of as strategic groups.
Customers can also differ significantly.
Strategic Groups
Strategic groups are organizations within an industry with similar strategic
characteristics, similar strategies, or competing on similar bases. For example: grocery
retailing industry like hypermarkets, supermarkets, grocery stores, convenience store,
corner stores. It can be grouped into two major categories:

 Scope of an organization ( product range, geographic coverage, range of

distribution channels used)
 Resource commitment ( brands, marketing spend, and extent of vertical
integration)
Usefulness of Strategic Groups
 Understanding competition. Managers can focus on their direct competitors

within their strategic group rather than the whole industry
 Analysis of strategic opportunities. Strategic group maps can identify the
attractive “ strategic spaces” within an industry: example under-developed spaces
which can be exploited)
 Analysis of mobility barriers (barriers to entry). Obstacles to movement from
one group to another.
Market Segments
A market segment is a group of customers who have similar needs that are
different from customers’ needs in other parts of the market.
The concept of market segments are important for the following reasons:
 Customer needs vary for a variety of reasons and it is essential to consider which
bases of segmentation are the most important in the market.
 Relative market share – the larger the market share, normally the lower the costs,
and the better the relationships.
 Identification and serviceable – its fine to identify the best segments of the market,
but one must also be able to provide the needed products and services.
The Segment Customer
The person(s) at whom the strategy is primarily addressed because they have the
most influence over which goods or services are purchased. Unless there is clarity on who
the strategic customer is, managers can end up analysing the end targeting the wrong
people. In order to succeed, it is vital to understand the Key success Factors (KSF)
particularly valued by the group of customers identified as strategic.
Competitors Analysis Objectives
 Who is winning in our market and why?

 Should we protect against particular competitor’s strength?
 Can we take advantage of particular competitor’s weaknesses?

 Will ours or their strategy transform the nature of competition?
 Do the ways in which our competitors are trying to compete suggest an even
better alternative we might try?
 What might our competitors do next?
Competitors Objectives and Strategies Profiling

A summary of the positions, capabilities, goals, objectives, and strategies of key

competitor firm is helpful in thinking about what strategies to employ. The profiling should
identify:
 Competitive scope
 Strategic intent
 Market share objective
 Competitive position/situation
 Competitive strategy
 Other important business or current situation information
Competitor Analysis framework
The competitor Analysis framework draws linkages between value creation and
the various competences, resources, and strategies of a competitive peer group.
Competitor Analysis should deepen our understanding of competitors’ position,
motivations, and outlooks. Internalized knowledge of competitors makes it easier to
anticipate future moves.
6 Steps in Competitor Analysis
Step 1: Identify Competitors

The definition of the competitive market must balance breadth and
practically. Limiting the definition to current direct competitors ignores the potential for
competitors to emerge from the periphery of the industry. Steps in identifying Competitors:
 Determine the scope and purpose of the competitor analysis yo be done
 Identify the standard set of competitor ( industry, markets)
 Isolate competitors that can be safely eliminated from the analysis
 Identify competitors that should be added for consideration
Sept 2 Assess Competitive Performance

There are two traditional ways to measure competitive success: value creation
and market share.
Value creation. Profiling value creation identifies the links between value and
competitive capabilities and positions.
Market share. Analyzing market share gains and losses identifies competitive
advantages and successful strategic positioning. So, you need to determine who’s the
winners and who’s the losers.
Step 3. Strategic Group Analysis
A strategic group is a grouping of firms which have similar competitive

approaches. Strategic group analysis also ties to value profiling; if one finds clusters and
a correction to value creation, the competitive dimensions are probably important.
Steps in Strategic Group Analysis
1. Choose two likely competitive dimensions that describe the key strategic
decisions in the industry.
Suggested dimensions:
 Product range
 Distribution channel
 Price/Quality
 Innovation
2. Plot firms in the industry on a matrix using the chosen dimensions as axes.
3. Assess the usefulness of the chosen dimensions
Frequent questions being raised:
 Do clusters of firms emerge?
 Do the implied strategic positioning choices make sense?
 Do the strategic position help explain value creation?
4. Repeat the process with different dimensions until the best fir is formed.
Example of strategic Group Analysis:

Share growth assessment help to identify who is leading and who is
trailing within an industry. (Please search the case of US Domestic Beer Industry:
Annual Growth in Production 1984-1994)
Step 4: Identify Critical Success Factors

In every industry, cusses will be thought to be tied to certain crucial
characteristics, strategies, or activities.
Critical Success Factors (CSFs) are factors that are particularly valued by
customers (strategic customer) or provide a significant advantage in terms of cost. CSFs
are generally few in number and are common to nearby every firm in the industry.
Strategic groups often have specific CSFs that contribute to success in that particular
competitive position.
Steps in Identifying Key Success Factors (CSFs)
1. Identify probable critical Success Factors (CSFs) for the industry.
Most CSFs fall into five broad areas:
 Technology
 Manufacturing
 Distribution
 Marketing
 Organization & Structure
2. The identified CSFs to value creation within the industry.
 Does performance of each CSF help explain variations in value
creation among competitors? If not, it is probably not a CSF
3. Identify probable CSFs for the strategic groups
 Each strategic group will likely have one or two CSFs that
separate winners from losers in that competitive territory.
4. To identified CSFs to value creation within the strategic group
5. Prioritize the CSFs
 The core of CSF identification is finding the most important
success factors. Normally, there will be few in number.
Structural Competitive advantages of CSF includes:
 Experience (learning)
 Scale

 Scope
 Distribution access
 Access to inputs
 Other value chain linkages
In some industries, it can be difficult or impossible to compete without a structure
advantage. For example, scale is crucial in cola drink distribution and marketing.
Step 5 Benchmarking Competitors

Firms utilize competitive benchmarking to answer many questions:
 Do our competitors perform the same activities we do?
 Do our competitors use the same level of effort (resources and time) in
the same activities as we do?
 How is the quality of our product/service offerings perceived relative to
those of our competitors?
 Do some of our business processes create a relative cost
advantage/disadvantage?
 Might any competitors be doing something fundamentally different to
create competitive advantage?
Competitive benchmarking is difficult and time consuming. The single most important
ingredient in successful competitive benchmarking analysis is determining the criteria
you want to compare.
Step 6 Competitors’ Objectives and Strategies

Until this step, Competitive Analysis focused on the past and present. Focus on
the following questions:
 How have competitors aligned themselves strategically? Any alliances?
 How have competitive positions determined value creation?
 What capabilities and resources have been necessary to create value
within the industry and within individual competitive positions?
 How well equipped are our competitors in CSFs?
Competitor objectives and strategies profiling is an attempt to understand the
future:
 Who is likely to change their competitive position in the future?
 How likely are the strategic moves?
 How might competitors respond to my actions?
Steps in Profiling Competitor’s Objectives and Strategies
1. For each key competitor, summarize its competitive position, capabilities,
goals, objectives, and strategies.
 This summary will largely draw on information already gathered in the
market and competitive analysis
2. Determine who will be the major players in the future
 Given beliefs about the market environment and CSFs in the future,
who is already positioned to succeed tomorrow? Who can we see
moving in that direction?
3. Who is likely to make significant strategic moves?
 Who is unsatisfied with current performance?
 Which competitors are characteristically aggressive?
4. What competitive moves are likely?
Thank you for reading the whole content for this unit
4 session. It’s now time for you to evaluate your thoughtful
readings. The higher score that you gain in the case analysis,
the more points that you have…
Now that you had learned about industry analysis and
competitive analysis, do the succeeding learning activities. If
you have questions regarding the activity, you may visit our
Google class (the module) with the class code given or
contact me to the number indicated in the course guide. If
you had poor connectivity, you are given another week to
accomplish the tasks.
Learning Activity
Activity No. 1 iPad –The PC Killer case study

which are provided in your departments/college, or to Google class on or before the date
as reflected in your study schedule. Click this link
https://www.bloomberg.com/news/articles/2012-03-21/ipad-the-pc-killer or
https://www.cbsnews.com/news/why-apples-ipad-will-kill-the-pc/ and read it thoroughly
and analyse carefully. Answers the questions and use the space below for your answer.
See attach rubrics in the Google class or you may access on your module on page____.
Answer the following questions:

1. Identify the two most important of the Five Forces factors that are affecting the
PC market, why?
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2. Why will it be difficult to dislodge iPad as the clear market leader in the tablet
market?
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3. In addition to PC markets, what other two companies are clearly affected by
iPad’s success?
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to our Google class or you may ask clarifications
activity.
Activity 2. Essay Writing

as reflected in your study schedule. See attach rubrics in the Google class or you may
access on your module on page____. Choose one company (among the top 10 performing
companies worldwide) by using Google search. Use the space for your writing and answer
the following questions:
1. Identify the competitors you primary and secondary players?
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2. Identify which competitors are the ones firms should be most concerned with and
Why?
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3. Choose two likely competitive dimensions that describes the key strategies
decisions in the industry You can use your own matrix in plotting your answer.
4. Briefly describe the CSFs for the chosen company?

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task, or you have difficulty in accomplishing the activity,
please send me a message to our Google class or you
may ask clarifications through a text message or phone
calls on the contact number included in your course
guide.
Assessment
Assessment #1. Identification.

your answer on the space provided before each number. See page _____ for your key
answer.
_____________1. Characterized by many buyers and sellers, many products that are
similar in nature and, as a result, many substitutes.
_____________2. A type of competition within an industry where all firms produce similar
yet not perfectly substitutable products.
_____________3. Occurs when there are only few firms that make up an industry.
_____________4. A market structure in which there is only one producer/seller for a
product. In other words, the single business is the industry.
_____________5. A group of companies that are related based on their primary business
activities.
_____________6. Refers to the number of different items your company offers for sale..
_____________7. Is the set of places with which a Web resource is associated.
_____________8. Is a market assessment tool designed to provide a business with an
idea of the complexity of a particular industry
_____________9. It examines the influences of political, economic, social, and
technological factors of a business.
_____________10. One of a few general segments in the economy within which a large
group of companies can be categorized.

Assessment #2 Creation of Original Case Study

Direction: Create your own case study analysis applying the Porters Five Forces to your
modular or online class. Be sure to indicate: the place/location where you conducted your
study in; the geographic region your strategy will deal, whether the power of the force is
high/medium/low, whether the force presents a threat or opportunity-briefly explain why.
Turn in your answer/output in our Google class using the required format as given in unit
1 requirements. Use the space below for your draft.


Hurray!!!!! You did a great job! If you have not completed the task, or
you have difficulty in accomplishing the activity, please send me a message
to our Google class, or you may ask clarifications through online, just
message me in my FB account or may text on the contact number included
in your course guide. You may write your insights or thoughts about the
activity on the space provided.
You had just completed this unit. You are now ready to take Unit 5
Write your
thoughts You may insert
Your pic here!!!

Unit 5 Internal Analysis & Competitive Advantage
Internal analysis is an objective audit of the

characteristics of your enterprise that leads to identifying
strengths and weaknesses, relative to rivals and in the
context of different markets. An internal analysis is an
exploration of your organization’s competency, cost
position and competitive viability in the marketplace.
Conducting an internal analysis often incorporates
measures that provide useful information about your
organization’s strengths, weakness, opportunities and
threats – a SWOT analysis. The data generated by an
internal analysis is important because you can use it to
develop strategic planning objectives to sustain and grow
your business.
Learning Outcomes
At the end of the course, students will be able to:

 Identify and create strategies in order to analyze the internal performance of an
organization/industry.
 Conduct internal analysis
Pre-Test
Directions: Define the following terms in 50 words each.

1. Analysis?
2. Internal Analysis?
3. Competitive advantage?
Content
What is Internal Analysis?
A firm’s performance depends on:

 Resources which are the assets that a firm owns or can call upon (what we
have)
 Capabilities which are the way those assets are used or deployed
effectively9what we do well)

Resources
 Physical – machines, buildings, software, production capacity. Its usefulness
determined by age, condition, capacity and location
 Financial -capital, cash, debtors, creditors and other supplier of money
 Human resources- skills, knowledge, experience, network of employees and
associates
 Intellectual capital-as an intangible resource, includes patents, brands,
business, systems and customer databases
 Unique resources- those resources that critically underpin competitive
advantage and that others cannot easily imitate or obtain (VRIO) Valuable, Rare,
Inimitable, Organizational
Capabilities
Capabilities are what a firm can do (skills and activities) such as marketing,
managing, designing, recruiting, etc.). They should be deployed effectively throughout
an organization’s activities and process. It involves coordinating primary and support
activities to achieve results.
Core Competencies
Core competencies are the linked set of key capabilities and resources that,
together:
 Make a significant contribution to the perceived customer benefits of the end
product (deliver additional customer value)
 Differentiates a business from its competitors
 Provides potentials access to a wide variety of markets
 Is difficult for competitors to imitate because it is a complex harmonization of
individual resources and capabilities
Competitive Advantage
How a business is able to orchestrate its activities to offer its customers greater
value, either by means of lower prices, or by providing greater benefits and services that
justifies a higher price. Therefore, it is a distinct and defensible position a business
occupies in its industry that enables it to generate and maintain above average
profitability. Normally, this advantage allows an organization to outperform its
competition.
Therefore, competitive advantage is the product of the conscious coordination of
resources and key capabilities (core competencies) that either:
 Allow a company to produce more efficiently than competitors (cost leadership).
 Create more products uniqueness than competition offer and, hence, command a
premium price (differentiation).
Fit
Firms need appropriate positioning in their environment, for example in terms of
the extent to which products of services meet clearly identified market shares.
Fit has to do with the ways a company’s activities interact and reinforce one
another. It expresses the degree to which an organization matches its resources and
capabilities with the challenges and opportunities of the external environment.
Organizational Analysis
SWOT analysis is a tool for auditing an organization and its environment. The
SW of the tool examines the organizational strength and weaknesses (internal).
The Internal Value Chain

Primary Activities
Primary activities relate directly to the physical creation, sale, maintenance and
support of a product or service. They consist of the following:
Inbound logistics – These are all the processes related to receiving, storing, and
distributing inputs internally. Your supplier relationships are a key factor in creating value
here.
Operations – These are the transformation activities that change inputs into
outputs that are sold to customers. Here, your operational systems create value.
Outbound logistics – These activities deliver your product or service to your
customer. These are things like collection, storage, and distribution systems, and they
may be internal or external to your organization.
Marketing and sales – These are the processes you use to persuade clients to
purchase from you instead of your competitors. The benefits you offer, and how well you
communicate them, are sources of value here.
Service – These are the activities related to maintaining the value of your product
or service to your customers, once it's been purchased.
Support Activities
These activities support the primary functions above. In our diagram, the dotted
lines show that each support, or secondary, activity can play a role in each primary activity.
For example, procurement supports operations with certain activities, but it also supports
marketing and sales with other activities.
Procurement (purchasing) – This is what the organization does to get the

resources it needs to operate. This includes finding vendors and negotiating best prices.
Human resource management – This is how well a company recruits, hires,

trains, motivates, rewards, and retains its workers. People are a significant source of
value, so businesses can create a clear advantage with good HR practices.
Technological development – These activities relate to managing and

processing information, as well as protecting a company's knowledge base. Minimizing
information technology costs, staying current with technological advances, and
maintaining technical excellence are sources of value creation.
Infrastructure – These are a company's support systems, and the functions that
allow it to maintain daily operations. Accounting, legal, administrative, and general
management are examples of necessary infrastructure that businesses can use to their
advantage.
In such a way, companies use these primary and support activities as "building
blocks" to create a valuable product or service.

Internal Organization Audit

Identifying value must do the following:
 Survey and list all the activities the firm is performing
 Categorize the activity into the value chain
 Investigate if and how the activity is adding value in terms of Value,
Rarity, imitate ability, organization willingness to maintain.
 Evaluate which activities must be acquired, need investment, or
abandoned, and why.
Stage 1 Survey
List resources and activities that are employed to execute its business model.
Activity/Resources- List will vary by business

Website HR Management Promotion Manager
Party Planning Buyer Team Catalogue Production
Data Analytic Accounting Office Category Manager
Management
Floor Management Merchandising Real Estate
Employee Training Maintenance Relationship Managers
Marketing Logistics IT Department
Design Team Production Social Media Team
Figure 1 Example of fast fashion business
How to Determine the Activity’s Value?

To assess the extent of the strength or weaknesses first define whether it is a
resource or capability, then determine its competitiveness.
 Inadequate. Below the minimum required to compete
 Adequate. The minimum required to be in this business or to minimally
compete.
 Potential. Can be useful and therefore represents an important strategic
consideration
 Competitive. Represents a clear competitive strength/weakness relative
to members of the strategic group
 Distinctive. Represents a unique value that cannot be duplicated
Stage 2 Categorize Table
Activity Category Value

Social Media Marketing Inadequate
Management
Design Team Product R & D Competitive
Merchandising Operations Potential
Store Locations Procurement Adequate
Logistics Outbound Distinctive
CRM Marketing Adequate
Employee Training HR Sales/Operations Potential

Stage 3 Investigate
Investigate deeper relationships and determinehowand where these factors add
value. Objective: Pinpoint the primary or support value activities that possessess the
potential for building or losing competitive advantage.
 Explore the value proposition of the firm in order to determine the key activities
 For the key activities identified determine whether they are a strength or a
weaknesess of the firm
 Key questions to ask (VRIO)
Value: Do capabilities exist that are valued by customers and enable the
organization to reposnd to environmental opportunities or threaths?
Rareness: Do the capabilties exist that no or few competitors possess?
Imitability. Are capabilities difficult and costly to imitate or obtain?
Organization: Is the organization appropriately organized to exploit the
capabilities?
Stage 4 Evaluate
Determine which activities are critical to creating competitive advantage and what
resources and capabilties are necessary to successfully perform those activities.
What needs to be maintaianed, invested in, acquired, or potentially abandoned or
outsourced. Belwo is the example.
Strategic Implications to Competitive Advantage
Strategic Strategic Implication
Strength/Weakness
Employee Training As evidenced by a spike in customer
complaints and tracking of customers
either getting out of payment queue or
existing, the store after speaking to staff,
we need to explore optionsequipping
frontline ersonnel with the skills to more
successfully sell and cope with difficult
situations.
Recommendation: Invest
sessions. It’s now time for you to evaluate your thoughtful readings.
The higher score that you gain in the case analysis, the more points
that you have…
Now that you had learned about the internal analysis and
competitive advantage, do the succeeding learning activities. If you
have questions regarding the activity, you may visit our Google
class with this code________ or contact me to the number indicated
in the course guide. If you had poor connectivity, you are given
another week to accomplish the tasks.

Learning Activities
Activity No. 1 Essay Writing “The Prrils of Bad Strategy”

as reflected in your study schedule. Click this link _https://www.mckinsey.com/business-
functions/strategy-and-corporate-finance/our-insights/the-perils-of-bad-strategy and read
it thoroughly and analyze carefully. Answers the questions and use the space below for
your answer. See attach rubrics in the Google class or you may access on your module
on page____.
1. Identify the key resources and capabilties.
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
________________________________________________________________.
2. Ascertain the Competitive advantage for the company and have it summarized.
Illustrate your answer with examples.


to our Google class or you may ask clarifications
And now, you are ready for the assessment.
Assessment
your answer on the space provided before each number. See page _____. Upload your
output in our Google class under classwork. Use this class code: __________.
________________1. This is what the organization does to get the resources it needs to
operate. This includes finding vendors and negotiating best prices.
________________2. This is how well a company recruits, hires, trains, motivates,
rewards, and retains its workers
________________3. These activities relate to managing and processing information, as
well as protecting a company's knowledge base.
________________4. These are a company's support systems, and the functions that
allow it to maintain daily operations.
________________5. These are all the processes related to receiving, storing, and
distributing inputs internally. Your supplier relationships are a key factor in creating value
here.
________________6. These are the transformation activities that change inputs into
outputs that are sold to customers. Here, your operational systems create value.
________________7. These activities deliver your product or service to your customer.
These are things like collection, storage, and distribution systems, and they may be
internal or external to your organization.
________________8. These are the processes you use to persuade clients to purchase
from you instead of your competitors.
________________9. These are the activities related to maintaining the value of your
product or service to your customers, once it's been purchased.
________________10. List all the activities the firm is performing

Assessment #2
Direction: Conduct and internal Audit of a certain company of your choice. Follow the
lecture in the module and you can use SWOT analysis flat form for answering. Use the
space below for your draft.

Congratulations!!!! You did a great job! If you have not completed the
task, or you have difficulty in accomplishing the activity, please send me a
message to our Google class, or you may ask clarifications through online,
just message me in my FB account or may text on the contact number
included in your course guide. You may write your insights or thoughts about
the activity on the space provided.
You had just completed this unit. You are now ready to take Unit 6.
Write your
thoughts You insert
Your pic here!!!

Unit 6 Business Level Strategy I & II, Innovation & Blue Ocean Strategy
A business level strategy definition can be

summarized as a detailed outline which incorporates a
company’s policies, goals, and actions with the focus on
being how to deliver value to customers while
maintaining a competitive advantage. It will determine
your position in your industry as well as the direction of
your profits.
Innovation the process of translating an idea or
invention into a good or service that creates value or for
which customers will pay.
Blue ocean strategy is the simultaneous pursuit
of differentiation and low cost to open up a new market
space and create new demand.
Learning Outcomes
At the end of this unit, students be able to:
 Create business strategy
 Conduct /develop product innovation using blue ocean strategy
Pre-test
Directions: Answer the following questions with your words/ideas at least 150
words. Upload your answer in our Google class.
1. What is a business strategy?

2. What is innovation.
3. Compare and contrast Innovation and Blue Ocean strategy?
Content
Business Level Strategy

Business Level Strategy relates to how a firm should operate withinits selected
business. It answers the following quetions:
 What aproducts or services a firm should offer?
 How the firm should create those products or serices?
 How the firm should take itsproducts or services to the market place?
It should articulate what competitive advantage a firm should aim for to achieve it
desired results.
To determine Business level strategy we need to understand the value chain. The
value chain is the string of activities thatmoves a product from the raw material stage,
through manufacturing and distribution, and ultimately ot the end user. By studying a
product’sor services value chain, an organization can identify ways to creaate
additionalvalue and assess whether ithas the means to do so ( has the resources and
capabalities). Value Chain analysis is also a helpful in identifying opportrunities for new
business and indesigning innovative business models. See example below.
New Vehicle Supply chain assembly Distribution aftermarket

Development channel
t Firgure 1 The basic value Chain for new vehicles
Business Level Strategic Choices

 Bases of Competitive strategy. The choice as to how an organizatyion positions
itself in realtion to competitors ( cost leadership, differentiation)
 Strategy Direction. The choice of products and markets available to a firm (Ansoff
Matrix)
 Mehtods for pursuing strategies. The choice about how strategies are to be
pursued ( deploying capabilities and resources toachieve obejctives)
Business Level Strategy

A fundamental strategic choice:What competitive strategy should we adopt in
order togain competitive advantage in a maarket at the business unit level? Example:
“ Severaal years ago, faced with increasing competition from easyJet and
Ryanair, Air force recognized it needed to change its businessmodel. It had to determine
whether it should seek to compete on price, or improve its strategy of differentiating itself
from its competiion in contenenta Europe? “ What were it’s option? .
General Types of Strategies

By disaggregating, analysing and building scenarious youshould be able to
recogize general trends in overarching strategies. These are referred to as Genereic
Strategies; either Cost leadership, Differentiationand Focus Cost leadership or
Differentiation).
Success with each generic strategy depens on different resources, capabilities,
success factors, etc. To ensure a successful strategy you have to identify a competitive
advantage that you exploit.
Generic Strategies
Basic positions a firm may occupywithin an industry.
 Cost Leadership. Occurs when a firm can orchestrate its activities in
order to sell its products eitherat averageindustry prices to earn a profit
higher thant its rivals, or below verage industryprices to gain additional
market share.

 Differentiation. Involves uniqueness in some dimensions that is

sufficidntly valued by customers to allow a price premium.
 A Focus Strategy. Concentrates onachieving either a cost or
differentiation advantage in a particular buyer group, segment of the
product line, or geographic market.
Porter’s Generic Strategy Grid
Cost Leadership
This strategy generally consists of an organisation attempting to gain a market
share by appealing to cost-conscious or cost-restricted customers or consumers.
Therefore, it is the aim of the organisation to become the lowest-cost producer in their
chosen industry. Although any organisation will aim to remove any unnecessary costs,
those employing this strategy prioritise lowering all overheads.
Often, this can be achieved through mass-production of products, allowing the
organisation to exploit the economies of scale; however, costs can be cut during many
stages of the production process. This will allow the organisation to sell products or
services for around or below the average price for the industry, and as a result of cost-
limitation will achieve the greatest profits. These mass-produced products will often be
very standard, and will exhibit little-to-no differentiation.
Some organizations with cost leadership may also sell products for below the
market average, allowing them to gain a greater share of consumers than their competitors
- particularly if their profit margins can still remain high due to low production costs.

These organizations cannot afford to be merely among the lowest-cost producers

- this leaves them open to undercutting from rivals - instead, they need to be the lowest-
cost producer.
Organizations exhibiting cost-leadership often exhibit a number of traits and attributes
which make them suited for this approach: Access to capital or technology required to
drive costs down, High levels of productivity, High efficiency and capacity utilization, A
low-cost base (e.g. labor, materials, facilities) and a method of maintaining this. Use of
bargaining power to negotiate low production costs and Access to effective distribution
channels.
Differentiation
The general focus of differentiation-led organizations is to make their products

different or more attractive than any other within the industry to achieve a competitive
advantage. These organizations generally target larger markets and focus on
differentiation on a much wider scale within the industry than would a cost-led company.
The methods of achieving differentiation can vary broadly across industries, products and
services; however, it can involve various features, functionality, durability, and also how
the brand and the product are marketed to achieve an image which customers value.
When designing products, the organization will focus on various criteria considered by
consumers within the industry, and will then orient themselves uniquely to meet those
criteria.
Though not universally, this strategy is often associated with charging premium
prices for the products or services in question. This reflects the potentially higher
production costs associated with developing unique items, and also the extra features and
uniqueness exhibited by said product. As higher prices are often a forced measure to
cover production costs, it is crucial that the differentiation of the product is appealing
enough to justify these prices to consumers.
Here are the most important traits associated with differentiation-led organizations:
 Strong research, development and innovation
 Superior product quality
 Recognizable branding, effective branding and marketing
 Industry-wide distribution within all major channels (stocked by most
retailers)
Cost Focus
Cost-focus refers to organizations who seek to develop a lower-cost advantage, but only
within a small market segment. These products will generally be basic, vaguely similar to
the average market-leading products (though more popular products can be charged at a
higher price) and will be acceptable to a sufficient number of customers in order to make
a profit.
An example would be budget food items or other household tools stocked only by small,
local supermarkets. Another would be a low-cost regional airline which focuses only on
specific routes. These products are often referred to as "me too's".

Differentiation Focus
Differentiation-focus strategy, the organization will look to develop product

differentiation, but only within one or a smaller number of market segments. As these
organizations have identified a smaller consumer group to focus on, they can more
specifically appeal to the needs and wants of this group than could an organization which
is attempting to differentiate for a wider population.
For this strategy to succeed, the organization will have to first identify that a
consumer group has a different set of needs than does the wider market population. If
there is no variation in need, then there is no valid basis for differentiation. Alongside this,
the organization also must ensure that another competitor is not already appealing to the
specific and unique needs that they have identified. A good example would be craft beer
companies, who can charge a higher price compared with large breweries due to the
uniqueness of their products.
Choosing the Correct Strategy
The generic strategy effectively underpins the majority of business and competitive
decisions made by an organization. Therefore, it is crucial that it is chosen correctly. Porter
emphasized the importance of not trying to utilize more than one strategy, as each appeal
to a different consumer base, and to different organizational strengths and attributes.
For example: a small business may sometimes struggle to compete on cost within
an industry dominated by large multinational organizations.
To develop and maintain a competitive advantage, businesses should look within
and identify where their strengths lie. One way of doing so would be to perform a SWOT
Analysis of the organization. This allows a business to identify both strengths and
weaknesses, but also any specific opportunities and threats that they may face along the
way. Consider your SWOT analysis in the context of the generic strategies. For example:
can your organization possibly reduce costs? Does it have the resources or individuals to
create differentiated products?
On top of this, different analyses can be used to help with the process. Value
Chain Analysis can be utilized to identify tools and processes which are valuable to the
organization and its products, and which can be used to gain a competitive advantage. On
top of this, Porter's Five Forces can be used to develop a greater understanding of the
industry in which the organization lies, and the level of competitiveness within it. By
applying these two analyses alongside an organizational SWOT analysis, a business can
cross-reference its strengths and attributes to the nature of the industry, and identify
whether a cost-based or a differentiation-based strategy would be most suited to them,
and whether they should be focused on a small or large segment of the market.
Cost Leadership Strategy

Cost leadership strategy involves becoming the lowest-cost organization in an
industry. There are four key cost drivers that help deliver cost leadership:
1. Input costs: example. Labor or raw materials
2. Economies of scale: example. Increasing output generally reduces costs as fixed
costs are spread over more products (purchasing in greater quantity reduces
cost through greater leverage in negotiations.

3. Product/process design. Example, suing inexpensive standard components

rather than expensive specialized parts
4. Experienc3: the more experience a firm gets, the more efficient it becomes
(higher productivity)
Differentiation Strategy
Can take many forms including but not limited to: design, brand, technology,
customer service, dealer or channel network. In this strategy, products generally require
more cost to produce, marketing, sales and service competency necessary, targeting and
price premium are critical. Less Price sensitive target customers- often smaller segments
which make purchase decisions based on specific and are less-likely to choose “one size
fits all” or common solutions. Extra cost are absorbed by the retail price. Therefore,
differentiation strategies require clarity about two keys factors. (the strategic customer and
Key competitors).
Understanding the strategic customer

Precisely define customer value. Engage in dialogue with customers (talk to them
and/or surveys). Determine the elements of your value proposition that your customer’s
find the most significant. Continuously improve them and ensure you communicate the
difference.
Strategic Gap
A strategic gap is an opportunity in the competitive environment that is not being
fully exploited by competitors. There are five types of opportunity :
1. Substitute industries (software companies substituting electronic versions
Apps for dieting programs for instance)
2. Strategic groups or market spaces (deregulation of electricity or advance in IT
serving remote learning or health care)

3. In targeting buyers ( buyers that have not previously addressed)

4. Complementary products or services (coffee and books)
5. New market segments (no frills model)
What is Innovation?
“Innovation is the process of creating value by applying novel solutions to meaningful

problems.”
Innovation is the specific instrument of entrepreneurship… the act that endows resources
with a new capacity to create wealth.” (Ducker)
Innovation is significant positive change. That’s starting to sound better. He adds the
notion of “significance.” If it doesn’t matter (to someone), should we call it innovation? I
think not. (Berkun)
Innovation is “not just having an idea—but executing it so that it creates value.” I like that
he incorporates three key concepts: an idea, execution, and value creation. You’ll see
below this is probably the closest to our definition. (Kastelle)
Impetus for Innovation (Push & Pull strategy)
Technology push. This strategy is dependent on generous Research & Development,

research in laboratories used to create new knowledge. It use to create new products,
processes or services that are handed over the organization. Susceptible to technology
for technology sake pattern may also apply.
Market Pull. A strategy that combines invention to actual use. Lead-users drive
useful innovations. It depends on effective process for identifying relevant market
representatives.
What can be Innovated?
Innovation
Products. (goods, services, Process. (Making, selling,

features, attributes) distributing)

Process Innovation
Create new and more efficient processes that boost productivity, product reach
and product utility.
Product Innovation. Increase Product Utility. Below are the examples:
 Customer Savings. Getting the result for less
 Customer productivity. Help customers perform tasks faster, better and or in
different ways
 Simplicity. Make life easier
 Convenience. Save time, prevent frustration, easy access
 Compatibility. How does it fit current infrastructure, Many DD-ONS?
 Risk. Reduce purchase risk
 Fun and Image. Enhance image and simply have fun
 Environmental friendliness. Green
Timing. Not too early, obviously not too late. Some examples from too early. Social
networking, Internet TV
Innovation: Disruptive vs. Incremental

Disruptibe. A new product or process that completely reorganizes an industry.
Example; Netflix, amazon Kindle-ebooks, iPhone
Incremental. Small adjustments within the scope of current processes and
products. Example: Microsoft Wwindows since 1995, iPhone since 2008
A Threat for Incumbent Companies

Think what the digital camera did to Kodak. How can big companies hedge this
threat?
1. Create Real Options. Limited investments that keep opportunities open in
the future. Example: R & D and locking in entrepreneurs and technologies to
either develop or keep off the market.
2. Develop independent business unit. Keep in mind the case of continental
Lite. That is how to do it wrong. Better to completelydivorce operations,
develop and look to use in parent organization-like with Delta and Song.
Blue Ocean Strategy
Blue ocean strategy is the simultaneous pursuit of differentiation and low cost to
open up a new market space and create new demand. It is about creating and capturing
uncontested market space, thereby making the competition irrelevant. It is based on the
view that market boundaries and industry structure are not a given and can be
reconstructed by the actions and beliefs of industry players.
Blue Ocean Strategy is referred to a market for a product where there is no

competition or very less competition. This strategy revolves around searching for a
business in which very few firms operate and where there is no pricing pressure.
Blue Ocean Strategy can be applied across sectors or businesses. It is not limited
to just one business. But, let's first understand what is Blue Ocean and how it is different
from Red Ocean strategy.
One Market Universe, Two Worlds......
The aim of BOS is not

EXISTING INDUSTRY to out-perform the
competition in the
Fiercely Competitive + existing industry, but to
increased create a new market
commoditization=Blood space or blue ocean,
in the water thereby making the
comoetition irrelevant
BOS Cornerstone #1 Value Innovation

Objective is to create a completely new industry through fundamental
differentiation as opposed to competing in an existing industry by tweaking established
models. BOS advocates creating new uncontested space through that the authors term
“value innovation”. This means increasing value by introduing new benefits and services,
while simultaneously reduing costs by eliminating less valuable features or services.
Below is the fomula:
Value innovation = Costs + value
To achieve value innovation Kim and Mauborgne propose an analytical tool called
the Four Actions Framework. Four key questions challenge an industry’s strategic logic
and established business model.
Eliminate Raise
Which factors can you eliminate that your Which factors should be raised well
industry has long competed on? above the industry’s standard
Reduce Create
Which factors should be reduces well Which factors should be created that the
below the industry standard industry has never offered?
Figure 2 Four Factors Framework
BOS Cornerstone #2 New Masrkets
Explore non-customer groups to create Blue Ocean and Tap untouched markets.The best
example is Business Travel
1st Tier Non-Customers. Soon to be non-customers who are on the edge-ready to jump
ship due to dissatisfaction with current product/service.
2nd Tier Non-Customers. People who do not use or cannot afford to use the current
market offerings because they find the offerings unacceptable or beyond their means.
3rd Tier Non-Customers. Unexplored customers who have not been targeted or
thoughtof as potential customers because opportunities associated with them have been
assumed to belong to other markets or nonexistent.
Blending the BlueOcean Strategy (BOS) Framework with the Business Model
Canvass (BMC)
BusinessModel Canvass. Consists of right-hand value and customer-focused side, and

a left-hand cost and infrastructure side. Changing elements on the right side has
implications for the left-hand side.
Value Innovation. BOS is about simultaneously increasing value while reducingcosts.

This is achieved by identifying which elements of the value proposition can be eliminated,
reduced, raised or newly created.
Blended Approaches. Blending BOS and the BMC lets you systematically analysis a
business modelinnovationin its entirely. You can ask the Four Actions Framework
questions foreach business modelbuilding block and immediately recorginze implications
for the other parts of the business model.
Thank you for reading the whole content for this

unit 6 sessions. It now time for you to evaluate your
thoughtful readings. The higher score that you gain in the
learning activity, the more ideas that learned…
Now that you had scholarly about Business Level
Strategy I & II, Innovation & Blue Ocean Strategy, do the
succeeding learning activities. If you have questions
regarding the activity, you may visit our Google class with
this code________ or contact me to the number indicated
in the course guide. If you had poor connectivity, you are
given another week to accomplish the tasks.
Learning Activities
Activity No. 1 Value chain analysis

the date as reflected in your study schedule. Create a value chain analysis by answering
the questions below. Use the template below for your answer. See attach rubrics in the
Google class or you may access on your module on page_. Refer below as your guide of
your output:

1. Construct the value chain for a traditionaal furniture manufacturer (Six basic
steps starting with design? Refer this diagram below.
Diagram of IKEA furniture
Design parts Assembly Ship and Channels/s Delivery

warehouse store
2. Given the above the diagram of IKEA, depict the value chain
3. Idnedity the advantages it gives the company
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
______________________________________________________.
4. Determine the four key capabilties IKEA needs to make its business model work.

Assessment
Assessment #1: Case study analysis
Direction: Read the case study on Symphony or click this link
:https://case.edu/artsci/music/ensembles/symphony-orchestra.Develop three alternatives
and then make a single recommendation to put Symphony back on sound financial footing.
Use the space below for your draft.
score below 5, go to page____ for further readings. If you have
difficulty in accessing the material online, you may read the
material uploaded in Google class using this class code
_____________.
And now, you are ready to level up your performance.
Do the succeeding assessment.

Assessment #2. Read the case study on Cirque du Soleil or click this link
https://www.blueoceanstrategy.com/bos-moves/cirque-du-soleil/ and then answer the
following questions: Use the flatform below.
1. Using the Four Framework, identify what Cirque de Soleil eliminated/reduced from
traditional circuses and what unique additions they created/raised.
Eliminate Raise
Reduce Create
2. Using the Business Model Canvass (BMC) insert the elements noted aboveinto
the correct building and then identify the other building block elements that are
impated by the first set.
KP KA VP CR CS
CH
KR
C$ R$

3. What is the primary lesson learned from the Cirque du Soleil case?
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
___________________________________________________.
4. What barriers to entry has Cirque du Soleil established to deter competitors.

________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
______________________________________________________.
If you have poor connectivity, unavailability

of internet connection and resources (CP, video
camera, laptop etc.) please notify me though my FB
account so I could extend the deadline of the
submission of your output.
Hurray!!!!! You did a great job! If you have not

completed the task, or you have difficulty in
accomplishing the activity, please send me a
message to our Google class, or you may ask
clarifications through online, just message me in my
FB account or may text on the contact number
included in your course guide. You may write your
insights or thoughts about the activity on the space
provided.
You had just completed this unit. You are now ready
to take Unit 7

Unit 7 Corporate Strategy and Growth Strategies
Corporate strategy encompasses a firm’s corporate

actions with the aim to achieve company objectives while
achieving a competitive advantage. A corporate strategy
entails a clearly defined, long-term vision that organizations
set, seeking to create corporate value and motivate the
workforce to implement the proper actions to achieve
customer satisfaction.
A growth strategy is one under which management
plans to advance further and achieve growth of the
enterprise, in fields of manufacturing, marketing, financial
resources etc.
As growth entails risk, especially in a dynamic

Learning Outcomes
economy, a growth strategy might be described as a safest
policy of growth-maximising gains and minimising risk and
At the end of the unit, students be able to:
untoward consequences.
 Draw , create and analyze strategic business unit (SBU) using the BCG
Growth sharematrix of an identified industry
Pre-test
Directions: Give your thoughts about the words below in 100 words. Turn in your work
output in our Google class.
1. strategy
2. Corporate strategy
3. Strategic business unit
4. Strategic Decisions
5. Diversification

Content
Corporate Strategy and Strategic Directions
Corporate Strategy takes a portfolio approach to strategic decision making by

looking across all of a firm’s businesses to determine how to create the most value. In
order to develop a corporate strategy, firms must look at how the various business they
own fit together, how they impact each other, and how the parent company is structured,
in order to optimize human capital, processes, and governance. Corporate Strategy builds
on top of business strategy, which is concerned with the strategic decision making for an
individual business. As organization add new units, their strategies are no long concerned
just with the business-level, but with the corporate-level choices involved in having multiple
businesses or markets.
Value creation
Portfolio
Corpoarate
Management
parenting
Penetration
Diversification Consolidation
Development
Scope decisions
Strategic Decision Making
Corporate Level Strategic Choices
Managing the Methods to pursue

Strategy Direction Corporate Portfolio Growth strategies
The choices of The decisions on
products and where to invest Strategic Growth
markets available to resources on the Options available
Three Styles
a firmof the Corporate Parent
various SBUs of the
firm
“Draft. Not Intended
Ansoff Matrix BCG for
andPublication.
McMakinsey For Classroom Use Only.”
Organic, M & A.
Matrix Strength Alliances
Portfolio manager. An active investor in unrelated businesses concerned with

boosting undervalued firms.
Synergy manager. Seeking to enhance value for business units by managing
synergies across business units.
Developer. Concerned with transferring its own core competencies to add value
to its business.
Therefore, the objective is to add value. Any corporate parent should demonstrate
that it creates more than it takes. Aim for value-adding activities are to provide a clear and
attainable vision, coaching and facilitating the network and provide central resources.
Rather than value-destroying activities are non-value added management costs,
Bureaucratic complexity and Illusory synergies.
Portfolio Management/Strategy
Purpose: Determine where a company’s resources should be developed among its

Strategic Business Units (SBU). You should keep successful SBUs successful and
determine directions SBUs should take.
Process: Do a detailed market and financial review of business holdings to determine if

an SBU should build market share or increase margins, hold position, harvest and divest.
Tools: Ansoff Matrix, BCG matrix, GE/McKinsey Matrix
Ansoff Matrix
Existing Products New Products
Existing markets Market Penetration/Consolidation Product Development
 Increase product purchase  Introduce new
in existing markets products into existing
(withdrawal, do nothing, markets, can be risky
consolidate, retrenchment)
and expensive
 Revitalize brand image
 Coordinate advertiser and
 Product launch
sales training  Add product features
 Adapt to market change & refinement
 Increase market share  Develop new products
 Increase consumer usage for same market
New Markets Market Development Diversification
 Explore new markets for  Introduce new
existing products, when products into new
distinctive competencies markets, horizontal,
rest with product not market
vertical,
 Expanding geographic
distribution
conglomerates
 Targeting new customer  Acquisition, merger
segments  New business venture

Increase Market Penetration
To increase market penetration you must get more with what you have, build on
existing strategic capabilities, stay on familiar ground. But how to get more with what you
have. In order to achieve this, you need to advertise, to encourage more people within
already served markets to choose your product, or to use more of it, introduce a loyalty
scheme, launch price or other special offer promotions, increase sales forced activities
and buy a competitor particularly in mature markets.
Consolidation. How to do it?

You need to focus defensively on current markets with current products, shed non-
core, non-essential businesses, buy the competition when business is declining and focus
on volume and economies of scale.
Product Development
You need to create new products for currently served market segments (unlimited
extension of organizational scope). For example iPad Company. The company developed
tablet for already served PC and IPhone market and continue to develop iPad within
market by applying it to new uses. Another example is Samsung company. The company
developed full range of smart phones and tablets to serve multiple segments.
Market development
Market development offer existing products to new markets but how? You need to
develop new segments, new users and new places were also be considered.
Vertical , Backward, Forward Integration
Vertical integration describes entering activities where the organization is its own
supplier or customer. This it involves operating at another stage of the value network.
Backward Integration is the development of activities concerned with the inputs

into the firm’s current business.
Forward Integration are the activities concerned with the outputs of a firm’s
current business.
Diversification
Diversification takes an organization away from its existing markets and existing
products. You know Why? Because of the following reasons: Efficiency gains by applying
resources and capabilities to new markets and products or services, dominant logic scale,
increase market power by having diverse offerings, responding to market decline,
spreading risk and Expectation of shareholders for returns.
Another way of understanding about diversification is a process that takes place
when a business expands its activities into product lines that are similar to those it currently
offers. For example: P & G, Unilever company deal in fast moving consumer goods
distributed through retailers.

Unrelated Diversification
Unrelated diversification refers to the manufacture of diverse products which have

no relation to each other. Many Japanese and Korean companies offer examples of
unrelated diversification. They may be involved in ship building, semi-conductors, sports
equipment’s, etc.
Boston Consulting Groups (BCG) Matrix

Objective: To determine what SBUs to invest the firm’s financial resources in and how
to fund them.
 Provides visual sense of the different needs and potential of the diverse
businesses within the corporate portfolio
 Ideally, a firm wants to maximize a SBUs market share in each high
growth market
 At a corporate level each SBU is plotted by its own market’s growth vs. its
own market position.
 At a competitive level each SBU may be plotted against its direct
competitors to better understand what may be done
 Assume capital is generated internally
BCG Growth Share Matrix
Market Share
High Low
High
Question Mark. SBU
Star. SBU with high in a growing market
Market growth market share in a but not yet with high
growing market market share, heavy
Dogs. SBU with a
Low investment required.
Cash Cow. SBU with low share in a static
high market shares in a or declining market-
mature market result financial and
Source: Idie Kesner, 2002
management drain
McKinsey Matrix

Growth Strategies
What is Strategy Methods?
Strategy methods means by which a growth strategy can be pursued.. Please

refer below.
Methods to pursue
strategies
Organic M&A
Alliances
Figure 3 Growth strategies
Organic
Rather than acquiring or merging, a firm can build and or develop its strategic
activities with its own resources and capabilities. This makes sense when:
 Firm continues to grow profitably at a reasonable rate
 Developing highly technical and core products
 Knowledge and capability development will be enhanced
 Investment may be spread out over time
 Minimizing disruption is desirable
 .emerging markets/products with few to no options to acquire or merge
 Trying to minimize risk
Strategic Alliances
Strategic Alliance is when two or more firms share resources and activities to
pursue a strategy. They vary from simple two partner alliances coproducing a product to
one with multiple partners providing complex products and solutions. Below
The Business Model Canvass

How Merger and Acquisition ( M & A) Fails

 Excessive price, leading to high levels of debt and poor return
 Absence of fit
 There was in adequate partner selection
 It was on opportunistic deal made outside strategic framework
 Poor or slow implementation
 Bad communication, rumors, employee morale
 Key managers left
 Customer deserted
Strategic Rationale for M & A
Pick winners early and help them develop their business. The final winning strategy
involves making acquisitions early in the life cycle of a new industry or product line, long
before most others recognize that it will grow significantly. This acquisition strategy
requires a disciplined approach by management in three dimension:
1. You must be willing to make investments early, long before your competitors and
the market see the industry’s or company’s potential.
2. You need to make multiple bets and to expect that some will fail.
3. You need the skills and patience to nurture the acquired businesses.
Merger and Acquisition (M & A) Making it Work with Schutte’s 4 Fits:
1. Share similar strategic objectives
2. Cultural understanding
3. Organizational compatibility
4. Contribution fit. Contribute equally in terms of resources, competencies,
technical, financial and managerial assets.
Improve the target company’s performance

Improving the performance of the target company is one of the most common
value-creating acquisition strategies. Put simply, you buy a company and radically reduce
costs to improve margins and cash flows. In some cases, the acquirer may also take steps
to accelerate revenue growth.
Consolidate to remove excess capacity from industry

As industries mature, they typically develop excess capacity. The combination of higher
production from existing capacity and new capacity from recent entrants often generates
more supply than demand. Companies often find it easier to shut plants across the larger
combined entity resulting from an acquisition, than to shut their least productive plants
without one, and end up with a smaller company.
Accelerate market access for the target’s (buyer) products.

Often, relatively small companies with innovative products have difficulty reaching the
entire potential market for their products. IBM has pursued this strategy of acquiring
smaller firms in its software business. By pushing their products through a global sales
force, IBM estimates it increased the target’s revenue by almost 50% in the first two years
after each acquisition and an average of more than 10% in the next three years.

Get skills or technologies faster or at lower cost than they can be built
Cisco system has used acquisitions to close gaps in its technologies, allowing it to
assemble a broad line of networking products and to grow very quickly from a company
with a single product line into the key player in internet equipment. Below is the example
scenario “Texas Instruments”
Texas Instruments Bets Sales Force can Stoke National’s Growth
 Texas Instruments Inc. CEO Rich Templeton is paying 6.5 billion dollars for
national Semiconductor Corp. in a wager that can reverse its sales slump
while profiting from the company’s higher margins.
 National shareholders will get 25 dollars a share in the all-cash transaction,
Texas instruments said yesterday. That’s 78 percent higher than national’s
closing price od 14 dollars yesterday, representing a premium four times
bigger than the chip industry’s average over the past year.
 To ensure a payback, Texas instruments aims to use its army of
salespeople to stoke demand for National’s products. The Dallas-based
company has a bigger sales force than any other chipmaker, Templeton
says, with more representative in China alone than National has in total.
He has vowed to increase revenue at more than twice the industry rate, a
feat national hasn’t pulled off in years.
 They think they can take National Semiconductor’s business and
execute better, said Daniel Berenbaum, a New York-based analyst at
Auriga USA who recommends selling Texas Instruments’ stock. They are
burying customers.
Merger and Acquisitions ( M & A)
 An acquisition occurs when one firm assumes all the assets and all the
liabilities of another. The acquiring firm retains its identify, while the
acquired firm ceases to exist.
 A merger occurs when two firms combine their assets and liabilities
together. A merged firm can keep one identity, or a joint identity.
 In general, mergers and other types of acquisitions are performed in the
hopes of realizing an economic gain. For such a transaction to be justified,
the two firms involved must be worth more together than they were apart.
Why consider M & A?
The strategic rationale for an acquisition that creates value typically conforms to at least
one of the following five standards:
1. Improving the performance of the target company

2. Removing excess capacity from an industry
3. Creating market access for products
4. Acquiring skills or technologies more quickly or at lower cost than they
could be built in-house.
5. Picking winners early and helping them develop their businesses.
Take note that base on the formula of strategic benefit=Value of target+ value added.
So if an acquisition does not fit one or more of these standards, it’s unlikely to create value.
Success factors for Strategic Alliances

1. A clear, mutually understood strategic and commercial ambition. “ are your

clear as to what problem you are trying to solve and why you are entering the
alliance?”
2. A detailed alliance business model. Have you clearly defined upfront which
markets, propositions and customers the alliance will pursue? Have you
established what is unique about your partnership and how it benefits both parties?
3. A flexible operating model that underpins the business model. Do you have
the right team, governance and infrastructure to make the alliance work? What
operational challenges could exist as a result of the alliance work? What
operational challenges could exist as a result of the alliance, and how will these be
managed?
Refer below for the example of Strategic Alliance

“Flat and Mazda team up to build roadster”
 Flat and Mazda, rivals in the market for small, relatively affordable
sports cars, plan to join forces to manufacture a new two-seater
roadster in Japan, in a deal that could usher in a wider-ranging
global alliance.
 The automakers said that they had reached a tentative agreement
to design and build the rear-wheel-drive vehicle beginning in 2015.
The flat version would be sold by Alfa Romeo, the sports car
marque that the Italian group wants to reintroduce in the US and
launch in China.
 The deal, which the carmaker said they hope to finalize by the end
of the year, extends a trend towards manufacturing alliances in the
industry, as firms seek to share the rising cost of developing new
models and recoup their investments more quickly though
increased production volume. (source: Financial Times, May 23,
2012, Jonathan Soble and Eric Sylvers)
What Motives for Strategic Alliances?
A frequent reason for alliances is to obtain resources that an organization needs

but does not possess itself. The objective is to gain competitive advantage. Two motives
for such alliances are: 1) the need for critical mass- leads to cost reduction and/or
improved customer offering and 2) C0-specialization- for example entering a new
geographic market where the firm needs local knowledge, and the local firm requires
expertise in distribution and marketing. So, what do all the sample strategic challenges
have in common? They are measurable and there is a time component.

score below 5, go to page____ or click this link
___________________________________________for
further readings) If you have difficulty in accessing the
material online, you may read the material uploaded in
Google class using this class code _____________.
And now, you are ready to level up your performance. Do
the succeeding learning activity.
Learning Activity #1 Growth Strategy Analysis

Direction: Using the flat form below, draw the circle to represent the size of the market.
Then draw and answer the following questions. Use the space below for your
draft.
High Medium Low
High Invest and grow Selective grow Selectivity
Medium Selective growth Selectivity Harvest/Divest
Low Selectivity Harvest/Divest Harvest/Divest
1. Indicate the size of the SBUs market share within the market circle (sales/Total
Market share)
2. Select one of the SBUs-easiest to us either the strongest or weakest SBU
(Examine their relative market position-sales and profitability).
3. Position the SBU along one of the axes (determine the place of the market circle
on one of the axis (either industry attractiveness or SBU Strength-choose the
most obvious axis).
4. Now that you have the SBU on one axis determine the position on the second
axis.

Learning Activity # 2 Case Study Analysis

Direction: Read the case study on Fuller’s and answer the following questions.
1. Who are the potential stakeholders that are affected by this acquisition and why?
2. Identify all the potential benefits to Fuller’s of this purchase.
3. Describe in some details the three primary reasons for Fuller’s making this
acquisition.
4. Prior to the completion of the acquisition, what do you believe are the biggest risk
Fuller’s is making in this purchase.
Assessment
Direction: Complete the requirements below and submit your work in the pigeon boxes
the date as reflected in your study schedule. Click this link
https://www.calltheone.com/en/consultants/did-nokia-go-under-due-to-a-lack-of-visio and
read it thoroughly, understand and analyze carefully. Draw, create and analyze strategic
business unit (SBU) using the BCG Growth share matrix of an identified industry in the
link shared. You can use the template below as your guide in answering the requirements.
Make a PowerPoint presentation on your output and present it via virtual presentation in
any availability of your time. See attach rubrics in the Google class or you may access on
your module material.
Diagram on BCG matrix.
STARS Which products or services grow the QUESTION MARKS Which products or services
fastest and have the highest margins? You have the potential to become very large, for
need to focus on this and invest in it. example because the market is very large, but you
only have a small market share? You have to
choose: will it be a dog or a star?
CASH COWS Which products or services DOGS Which products or services do not grow or
generate a good turnover in a stable way? show a shrinkage and the market is also no longer
How can you optimize the profit from this? interesting, e.g. by competition? You must stop
this!


Congratulations!!!! You did a great job! If you have not completed the
task, or you have difficulty in accomplishing the activity, please send me a
message to our Google class, or you may ask clarifications through online,
just message me in my FB account or may text on the contact number
included in your course guide. You may write your insights or thoughts about
the activity on the space provided.
You had just completed this course. Mabuhay….. and See you on the
next semester… Congratulations once again….
Write
your You can insert
thoughts your picture
Here!!!!!!

References
David, F. R. (2011). Strategic management: Concepts and cases (13th ed.). Upper Saddle
River, NJ: Pearson/Prentice Hall.
Strategy | Definition of Strategy by Oxford Dictionary on Lexico.com also meaning of

Strategy. Lexico Dictionaries | English. (2020). Retrieved 10 July 2020, from
https://www.lexico.com/en/definition/strategy.
University of Minnesota Libraries Publishing. (2016). Mastering Strategic Management.
Young (2015) Strategic Management Made Simple
Wally, C (2019). Strategic Management. San Jose Recoletos, Cebu City
Lumpkin, McNamara (2013) Strategic Management: Creating Competitive Advantages,

7th Edition, McGraw-Hill International Edition, McGraw-Hill/Irwin

Glossary
Acquisition. A corporate action in which a company buys most, if not all, of the target
company’s ownership stakes in order to assume control of the target firm.
Activities. Discrete processes required to create, produce, sell, and deliver products.
Action Plan. A sequence of steps that must be taken, or activities that must be
successfully performed for a strategy to succeed.
Analysis. The process of gaining a better understanding of a complex topic by breaking
it into smaller parts.
Barriers to Entry. Factors created by incumbent firms to deter competition.
Business Model. Describes the rationale of how an organization creates, delivers, and
captures value
Business Level Strategy. How an individual business competes in its particular
marketplace. It focus is orchestrating activities in the pursuit of competitive advantage.
Capability. The orchestration and use of firm resources
Challenge. Any feature of the business environment, either internal or external, which
necessitates the intelligent application of resources and capabilities to surmount.
Competitive advantage. How a business is able to orchestrate its activities to offer its
customers greater value, either by means of lower prices, or by providing greater benefits
and services that justifies a higher price.
Core business. The primary activity that defines a firms’ main emphasis.
Core Competence. A unique ability that a company develops and that cannot be easily
imitated.
Corporate-level strategy. Is concerned with the overall scope of the organizations and
how value is added to the constituent business of the organization as a whole.
Differentiation. Involves uniqueness in some dimension that is sufficiently valued by
customers to allow a price premium.
Diversification. When a firm enters an industry different from its existing businesses.
Exit Barriers. Factors making it more difficult for a firm to get out of a particular business
than it would otherwise have been.
Feasibility. Answers if a firm has the necessary components to achieve a result and if
that result is attractive in terms of return and risk.
Findings. Factual and verifiable statements.
Fit. Expresses the degree to which an organization matching its resources and capabilities
with the challenges and opportunities of the external environment.
Goal. The general direction that determine the focus of the organization.
Industry. A groups of firms producing similar products from similar supplies and selling to
similar customers.. A subset of a sector.
Innovation. Involves deliberate application of information, imagination, and initiative in
delivering greater or different values from resources. New ideas generated and converted
into useful products or to make existing products more profitable.
Joint venture. A contractual agreement joining together two or more parties for the
purpose of executing a particular business undertaking.
Market development. Offering existing products to new markets, either segments or
geographies.
Market Penetration. A measure of the amount of sales or adoption of a product compared
to the total theoretical market for that product.
Market Segment. A group of customers who have similar needs that are different from
customer needs in other parts of the market.
Mission statement. Aim to provide the employees and the stakeholders with clarity about
the overriding purpose of the organization.
Objective. Specific and quantifiable outcomes that when achieved propel the firm towards
it goals.
Portfolio. A collection of businesses (assets) owned by a single entity.
Recommendation. Clear and concise proposal of what should be done and why.
Resources. Inputs into a firm’s production processes.
Stakeholders. Individuals or groups who can affect or be affected by the actions of a firm.
Strategic Analysis. The assessment of a firm’s current competitive position and the
Strategic Business Unit (SBU). A distinct business within a corporation that has its own
customers, competition, and draws upon its own resources and capabilities.
Strategic direction. The basic scheme for how the organization will achieve its vision.
Strategic drift. The tendency for strategies to develop incrementally on the basis of
historical and cultural influences, but fail to keep pace with a changing environment.
Strategic Gap. A market opportunity that is either not recognized or fully exploited by
competitors.
Strategy. The direction and scope of an organization over the long term, which aims to
achieve advantage in a changing environment by configuring resources and capabilities
to satisfy stakeholder expectations.

Strength. A superior resource and or capability that a firm can leverage to outperform
competition and or meet challenges in an environment.
Structure. Relate to how a business is organized in terms of businesses, and
management.
Tactics. The doing aspect that follows the planning.
Tool. An implement used in the practice of a vocation to get a predetermined result. In
terms of strategy tools are the frameworks, language, matrices, and other techniques used
to make decisions.
Value Chain. A framework that is used to organize the activities a business must perform
to create, make, distribute, sell, and service a product.
Values. The guiding principles of the firm. Creates procedure for How a firm will fulfill its
mission and achieve its vision.
Weaknesses. An inferior or absent resource and or capability that competition may exploit
to gain advantage.

RUBRICS
Name: _______________________________Date Reported: ______________________

Total Score:___________________
Year/Program: _________Course: ______A.Y ___ ( ) 1st Semester ( ) 2nd Semester
Rubric for Writing
TOT
5 4 3 2 1
AL
Complete in Complete in
Complete in all Incomplete in
most aspects some aspects Incomplete and
Complete aspects and many aspects
and includes and includes does not include
ness includes all and includes few
most some requirements
requirements requirements
requirements requirements
Submit
Consistently Submit
Submit assignments/pro
submit all assignments/pro Never submit
Promptne assignments/pro jects/write-ups
assignments/pro jects/write-ups assignments/pro
ss jects/write-ups several hours
jects/write-ups days after the jects/write-ups
on time after the
on time deadline
deadline
Answer in
discussion/essa
Answers in
y reflect high
discussion/essa
level of
Analysis y reflect very Answers are
coherence, No evidence of
and high level of more interesting Answers are
show above analysis of
Synthesis thought and and coherent somehow
average thinking. No
of coherence. ideas; with some coherent with
originality of evidence of high
Ideas/Ori Ideas are logic displayed. few original
ideas. Provides level form of
ginality of personal, Some original ideas
personal thinking
Thought original. ideas
explanation,
Structure is very
analogies and
clear.
very good
analysis.
Write-ups could Write-ups could Write-ups could
be described by be described by be described by
all of the 3 of the 2 of the
following: 1) well following: 1) well following: 1) well
Cohesive Write-ups are Write-ups are
organized, 2) organized, 2) organized, 2)
ness somewhat largely
well written, 3) well-written, 3) well-written, 3)
(write- organized and unorganized or
easy to easy to easy to
ups) intelligible unintelligible
understand, 4) understand, 4) understand, 4)
has accurate has accurate has accurate
spelling and spelling and spelling and
grammar grammar grammar
(Adapted from the Rubrics MBA 214 Effective Communication in Business developed by Dr. Jovelyn M. Cantina)
Rated: ____________________________________ Conformed: _______________________

Name and Signature of Instructor/Professor Name and Signature of Student

Name: _______________________________Date Reported: ______________________

Total Score:___________________
Year/Program: _________Course: ______A.Y ___ ( ) 1st Semester ( ) 2nd Semester
RUBRIC IN CASE STUDY REFLECTION
5 4 3 2 1 TOTA
L
Depth of Response Response Response Response Viewpoints
Reflection demonstrates an demonstrates a demonstrate demonstrate and
in-depth general s a minimal s a lack of interpretatio
reflection on, reflection on, reflection reflection ns are
and and on, and on, or missing,
personalization personalization personalizati personalizati inappropriat
of, the theories, of, the theories, on of, the on of, the e, and/or
concepts, and/or concepts, and/or theories, theories, unsupporte
strategies strategies concepts, concepts, d.
presented in the presented in the and/or and/or Examples,
course materials course materials strategies strategies when
to date. to date. presented in presented in applicable,
Viewpoints and Viewpoints and the course the course are not
interpretations interpretations materials to materials to provided
are insightful are supported. date. date.
and well Appropriate Viewpoints
supported. examples are and
Clear, detailed provided, as interpretatio
examples are applicable. ns are
provided, as unsupported
applicable. or supported
with flawed
arguments.
Examples,
when
applicable,
are not
provided or
are
irrelevant to
the
assignment.
Required Response Response Response is Response Many parts
Compone includes all includes all missing excludes of the
nts components and components and some essential assignment
meets or meets all components components are
exceeds all requirements and/or does and/or does addressed
requirements indicated in the not fully not address minimally,
indicated in the instructions. meet the the inadequatel
instructions. Each question requirement requirement y, and/or
Each question or part of the s indicated s indicated not at all.
or part of the assignment is in the in the
assignment is addressed. All instructions. instructions.
addressed attachments Some
thoroughly. All and/or additional questions or
attachments documents are parts of the
and/or additional included, as assignment
documents are required are not
included, as addressed.
required. Some
attachments
and
additional
documents,
if required,
are missing
or
unsuitable
for the
purpose of
the
assignment.
Structure Writing is clear, Writing is mostly Writing is Writing is There are
concise, and clear, concise, unclear unclear and numerous
well organized and well and/or disorganize spelling,
with excellent organized with disorganize d. Thoughts grammar,
sentence/paragr good d. Thoughts ramble and or syntax
aph sentence/paragr are not make little errors
construction. aph expressed sense. throughout
Thoughts are construction. in a logical the
expressed in a Thoughts are manner. response.
coherent and expressed in a There are
logical manner. coherent and more than
There are no logical manner. five spelling,
more than three There are no grammar, or
spelling, more than five syntax
grammar, or spelling, errors per
syntax errors grammar, or page of
per page of syntax errors writing.
writing. per page of
writing.
Evidence Response Response Response Response No
and shows strong shows evidence shows little shows no implications
Practice evidence of of synthesis of evidence of evidence of for the
synthesis of ideas presented synthesis of synthesis of respondent'
ideas presented and insights ideas ideas s overall
and insights gained presented presented teaching
gained throughout the and insights and insights practice are
throughout the entire course. gained gained presented,
entire course. The implications throughout throughout as
The implications of these insights the entire the entire applicable.
of these insights for the course. Few course.
for the respondent's implications
respondent's overall teaching of these
overall teaching practice are insights for
practice are presented, as the
thoroughly applicable respondent'
detailed, as s overall
applicable. teaching
practice are
presented,
as
applicable.
Rated: ____________________________________ Conformed: _____________________________


Rubrics for PEST Analysis Presentation

Name: __________________________Year/Program: _________Course: ______
Criteria High Proficiency Proficiency Some Lacks Proficiency

8 6 Proficiency 4 2
Spelling,
Grammar, The presentation is free The presentation The presentation The presentation
Punctuation of grammatical, contains 1-2 contains 3-4 contains many
punctuation, and spelling grammatical, grammatical, grammatical,
errors. punctuation, and punctuation, and punctuation, and
spelling errors. spelling errors. spelling errors.
Some Proficiency Lacks Proficiency
Introduction
An introduction to the An introduction to the There is a limited There is a brief
country is presented in a country is presented Introduction. Only Introduction and
clear and concise in a somewhat clear includes one or two includes none of the
manner. The and concise manner. of the following following factors:
Introduction provides Includes most of the factors: geographic location,
insight into the climate of following factors: geographic location, native language,
the country. Includes geographic location, native language, population or size, an
geographic location, native language, population or size, an interesting fact and a
native language, population or size, an interesting fact and a picture of the
population or size, an interesting fact and a picture of the country.
interesting fact and a picture of the country. country.
picture of the country.
Appearance
Appearance was Appearance was At least three of the Appearance was not
effective, not too wordy effective but 1 or 2 slides were too at all effective. Most
or scarce. slides were wordy or wordy or scarce. of the slides were too
Fonts/colors and scarce. And/or And/or wordy or scarce.
attributes were Fonts/colors and Fonts/colors and And/or Fonts/colors
enhancing and not attributes were a little attributes were and attributes were
distracting. Very easily hard to read. difficult to read. very distracting and
read. hard to read.
distracting.
Oral Presentation
Clearly presented,
Clearly presented, Was not clearly
conveyed proper
conveyed proper presented with
volume, enunciation and Clearly presented,
volume, enunciation proper volume,
pronunciation AND conveyed proper
and pronunciation enunciation and
Delivery was volume, enunciation
BUT pronunciation
extemporaneous, did not and pronunciation
Delivery was not AND
read from the slides. BUT
totally Delivery included
Proficiency Delivery included
extemporaneous, reading from every
reading from every
read from some of the slide word for word.
slide word for word
slides.
.
Reference Slide
A Reference slide was A Reference slide A Reference slide A Reference slide
included and complete was included and was incomplete and was not included.
and in proper MLA style complete but not in was not in proper
format. proper MLA style MLA style format.
Proficiency format.
Rated: ____________________________________ Conformed: _____________________________

RUBRICS
Rubric for Essay Writing
Scoring Knowledge of Clarity and Coherence Rhetorical Choices
Level Conventions
In addition to meeting In addition to meeting the In addition to meeting the
the requirements for a requirements for a “3,” requirements for a “3,” the
4 -
Accomplished
“3,” the writing is writing flows smoothly writer’s decisions about
essentially error- free in from one idea to another. focus, organization,
terms of mechanics. The writer has taken style/tone, and content
Models the style and pains to assist the reader made reading a
format appropriate to the in following the logic of pleasurable experience.
While
assignment.there may be Sentences are structured
the ideas expressed. The writer
Writing hasbemade
could usedgoodas a
minor errors, the paper and word are chosen to decisions
model of how about focus,
to fulfill the
3 - follows normal communicate ideas organization, style/tone,
assignment.
Competent conventions of spelling clearly. Sequencing of and content to
and grammar ideas within paragraphs communicate clearly and
throughout and has and transitions between effectively. The purpose
been carefully paragraphs make the and focus of the writing are
proofread. Appropriate writer’s points easy to clear to the reader and the
conventions for style follow. organization and content
and format are used achieve the purpose well.
consistently throughout Writing follows all
2 - the
Frequent writingerrors
sample.in Sentence structure requirements
The writer’s for decisionsthe
Developing Demonstrates
spelling, grammar (such and/or word choice assignment.
about focus, organization,
thoroughness
as and
subject/verb sometimes interfere with style/tone, and/or content
competence
agreements and tense), in clarity. sometimes interfere with
documenting
sentence sources;
structure clear, effective
the
and/or reader wouldwriting
other have Needs to improve communication. The
little difficulty referring
conventions distract the sequencing of ideas purpose of the writing is
back
reader. to Writing
cited sources.
does not within paragraphs and not fully achieved. All
consistently follow transitions between requirements of the
appropriate style and/or paragraphs to make the assignment may not be
format. Source writing easy to follow. fulfilled.
documentation is
Writing contains Sentence structure, word The writer’s decisions
incomplete. It may be
numerous errors in choice, lack of transitions about focus, organization,
1 - unclear
spelling, which
grammar, and/or sequencing of style/tone, and/or content
Beginning references
and/or are direct
sentence ideas make reading and interfere with
quotes
structureand which
which are
interfere understanding difficult. communication. The
paraphrased.
with comprehension. purpose of the writing is
Style and/or format are not achieved.
inappropriate for the Requirements of the
assignment. Fails to assignment have not been
demonstrate fulfilled.
thoroughness and
competence in
documentation.

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and submit this form to the Instructional Materials Development Office (IMDO) in
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For other comments and suggestions, please use the space below. Thank you.
MARIA BLANCA SEMBRINO SY
Dr. Sy graduated from Andres Bonifacio College with a Bachelor of

Science in Commerce major in Accounting as well as Master’s in
Business Administration and Public Administration. A doctorate in Public
Administration of Jose Rizal Memorial state University, Dapitan City.
Currently a Department of Chairperson of Bachelor of Science and
Business Administration. Dr. Sy was elected as Board of Director of
Philippine Council of Deans and Educators of Business (PCDEB)
representing region IX for the SY 2016-2017. Currently, auditor of
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STRATEGIC MANAGEMENT: CREATING ONE’S FUTURE AND SUCCESS 1

“Draft. Not Intended for Publication. For Classroom Use Only.”

Strategic Management: Creating

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Strategic Management: Creating Ones’s Future and Success

Copyright @2020 Maria Blanca S. Sy

Page and Cover Designed by Cj Lawrence Sy and Dwight Kent Sy

“Draft. Not Intended for Publication. For Classroom Use Only.”

Strategic Management is the process of formulating and implementing strategies

“Draft. Not Intended for Publication. For Classroom Use Only.”

“Draft. Not Intended for Publication. For Classroom Use Only.”

JOSE RIZAL MEMORIAL STATE UNIVERSITY

In my experience in teaching marketing, I was so challenge with so many changes

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“Draft. Not Intended for Publication. For Classroom Use Only.”

Summative Assessment Plan 16

Module 1: Overview of Marketing: An Introduction

Unit 1: An Overview of Strategic Management and Analysis, 19

Unit 2: Business Model Analysis 34

“Draft. Not Intended for Publication. For Classroom Use Only.”

About the Author 128

Republic of the Philippines

Republic of the Philippines

5 Communicat effectively with stakeholders, both orally and in writing.

On successful completion of the course, students be able to:

Republic of the Philippines

“Draft. Not Intended for Publication. For Classroom Use Only.”

“Draft. Not Intended for Publication. For Classroom Use Only.”

Week Unit Title Activities

October 20-21, 2020 Midterm Assessment  Analyzing and

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Activity No. 1 iPad –The

To pass the course, you must observe the following:

Person/Office Email address CP number

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JOSE RIZAL MEMORIAL STATE UNIVERSITY

Jose Rizal Memorial State University

Form No. F16: Summative Assessment Plan

Course Code: BAMM105

Design  PESTEL • Students will create a PESTEL Rubrics

Prepared by. MARIABLANCA S.SY, DPA

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“Draft. Not Intended for Publication. For Classroom Use Only.”

Unit 1 An Overview of Startegic Management and Analysis, the Product

Strategic Management process and concepts, value of vision,

After completing this unit, the student will be able to:

 demonstrate effective application of concepts, tools & techniques to practical

Examines what Strategic Marketing cover. Multiple Choice

1. Discrete processes required to create, produce, sell, and deliver products?

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3. Describes the rationale of how an organization creates, delivers, and captures

Thank you for answering the test. Please see page

The next segment is the content of this unit. It contains

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“Draft. Not Intended for Publication. For Classroom Use Only.”

What is strategic Management?

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“Draft. Not Intended for Publication. For Classroom Use Only.”

“Draft. Not Intended for Publication. For Classroom Use Only.”