2. STRATEGIES
• Best means by which an organization can
achieve its desired goals
• Four types of strategizing:
– Adaptive strategizing
– Ideological strategizing
– Creative strategizing
– Rational, sequential, and analytical strategizing
3. Adaptive Strategizing
• Assess opportunities as they come
along, evaluate the risks of pursuing
these opportunities, and make
decisions according to set criteria
• Examples: building blocks, locomotive
train, hub and spokes, molecules,
chess game, amoeba, niching
4. Ideological Strategizing
• Basis for strategies are espoused set
of beliefs, philosophies or ideologies
• Examples: Christianity and Islam,
Capitalist and Socialist, Republicans
and Democrats, cause-oriented
groups, NGOs
5. Creative Strategizing
• Concerned about inventing new
products and services, innovating on
new technologies, and processes and
discovering or uncovering new
markets
6. Best Practices of Highly
Creative Enterprises
• How are the enterprises organized and structured?
• How are creative people hired and nurtured?
• What kinds of environment is needed to foster creativity
and innovation?
• What creative thinking tools or techniques are used?
• What are the processes employed to generate, evaluate,
and choose creative ideas?
• How are the creative teams motivated and rewarded?
• What kind of organizational culture do these organizations
possess?
• Who in the organization promotes and champions creativity?
7. Rational, Sequential and
Analytical Strategizing
• Follows step-by-step process using logical reasoning
– Top down
• starts from futuristic vision of the organization ->
mission statement -> objectives -> key result areas ->
performance indicators -> strategies ->
objectives/action plans ->activities -> tasks – resources
required
– Bottom up
• Realities of the external (O and T) and internal (S and
W) environments
• Matching OT with SW SWOT analysis allows
development of strategic options
9. Vision
• Futuristic picture of the enterprise,
described in words or a vision
statement
• Timebound, ambitious but realistic,
and with geographical and target
market (customer and product) focus
10. Mission/Goals
• Proclaims the basic purpose for the
existence of the organization
• Specifies product or service to be
rendered, defines the market.
• For whose benefit is it being established?
• Two main stakeholders are the owners and
the employees whose desire for better
lives must be satisfied
11. Objectives
• Measurable end results, usually
center around major ends:
– Increasing profits
– Expanding markets
– Satisfying customers with quality
products and services
– Providing reasonable compensation and
benefits to employees
12. Key Result Areas
(KRAs)
• Attainment of objectives or
measurable end results can be
manifested and measured by KRAs
• KRAs are qualitative manifestations
or proofs that the objectives are
being achieved
13. Performance Indicators
(PIs)
• KRAs must be converted into numerical
performance indicators
• PIs are exact quantifications of the KRAs
• PIs or outcomes fall into any of the six R’s
– Reach
– Recognition
– Ratings
– Revenues
– Returns
– Responsiveness
14. Strategies
• In how many ways can the performance
indicators be attained?
– ALTERNATIVE STRATEGIC OPTIONS
SHOULD BE SUBSTANTIALLY DIFFERENT
FROM ANOTHER (MUTUALLY EXCLUSIVE)
– MAJOR MOVE OR SIGNIFICANT CHANGE
IN THE OVERALL DIRECTION OF THE
ORGANIZATION
15. Types of Strategies
• Generic Strategies
– Cost leadership
– Differentiation
– Focus-Cost Leadership
– Focus-Differentiation
• Functional Area Strategies
– Marketing Strategies
– Operations/Production Strategies
– Financial Strategies
– Information Systems Strategies
– Human Resource Strategies
19. Functional Strategies
• Information System Strategies
– Manual
– Computer Based
• Types of Information Systems for Entrepreneurial
Ventures
– Transaction Processing System (TPS)
– Office Automation System (OAS)
– Management Information System (MIS)
– Decision Support System (DSS)
– Executive Support System (ESS)
20. Activities
• Undertakings of groups within an
organization to accomplish the
programs assigned to different group
– Specify what the various groups must do
to accomplish the program
– Include all important actionable work
plans that must be achieved
21. Tasks
• What individuals in the organizations
do to ensure that the activities are
done.
• An activity is a set of tasks – details
of what must be executed within a
specific time frame
22. Resources
• Tasks demand certain amounts of resources
• Resources are the inputs required to deliver
tasks, activities, programs and strategies
• Resources can be stated in terms of 3 P’s of
People, Pesos and Physical Assets
• Alternatively, resources can be in terms of the
six M’s of input: money, manpower, machinery
and equipment, materials, methods and
management
