This course provides students with a comprehensive understanding of strategic management principles, frameworks, and applications in business. It explores strategic planning, environmental analysis, corporate governance, business ethics, and sustainability. The course integrates Sustainable Development Goals (SDGs) to enhance global and ethical perspectives in decision-making.

1. Strategic Management
CBME 2
Professor: Rommel R. Regala, Ph.D.
Sorsogon State University

2. Basic Concepts of Strategic Management

3. Definition and
Importance of
Strategic Management

4. Definition of Strategic
Management
• Strategic management is the process of formulating,
implementing, and evaluating strategies that enable
an organization to achieve its objectives and maintain
a competitive advantage. According to Wheelen,
Hunger, Hoffman, and Bamford (2018), strategic
management is:
• "A set of managerial decisions and actions that
determines the long-run performance of an
organization by integrating environmental analysis,
strategy formulation, implementation, and
evaluation."
• This definition highlights the dynamic and continuous
nature of strategic management, emphasizing its role
in sustaining long-term organizational success.

5. Importance of Strategic
Management
• Strategic management is essential for
organizations to remain competitive, optimize
performance, and adapt to market changes. The
following are key reasons why it is important:
• 1. Provides Clear Vision and Direction
• Establishes a long-term roadmap for the
organization.
• Helps leaders align decisions with the
company's mission and vision.
• Ensures consistency in strategic decision-
making.

6. Importance of Strategic
Management
• 2. Enhances Competitive Advantage
• Enables firms to differentiate
themselves in the market.
• Supports the development of core
competencies and sustainable
market positioning.
• Helps businesses anticipate and
respond to industry trends.

7. Importance of Strategic
Management
• 3. Facilitates Effective Decision-Making
• Provides a structured approach to
analyzing risks and opportunities.
• Reduces uncertainty by using data-
driven insights.
• Encourages proactive planning instead
of reactive decision-making.

8. Importance of Strategic
Management
• 4. Promotes Innovation and
Adaptability
• Encourages businesses to
embrace digital transformation
and technological advancements.
• Supports business model
evolution and new market
expansion.
• Helps firms navigate industry
disruptions and economic
fluctuations.

9. Importance of
Strategic Management

10. Importance of Strategic
Management

11. Importance of
Strategic Management
• 7. Aligns Business with Ethical and
Social Responsibility
• Encourages ethical business
practices and corporate
governance.
• Enhances brand reputation and
stakeholder trust.
• Promotes transparency and
accountability in decision-
making.

12. Real-World Applications
of Strategic Management
• 1. Apple Inc. – Innovation-Driven
Strategy
• Apple applies strategic management
principles to remain a leader in
technology and innovation.
• Uses a differentiation strategy by
focusing on premium design and
user experience.
• Adapts to global market trends by
investing in research and
development (R&D).

13. Real-World Applications
of Strategic
Management

14. Real-World Applications of
Strategic Management
• 3. Unilever – Sustainable Business Strategy
• Unilever integrates strategic management
by:
• Implementing sustainable sourcing
and ethical labor policies.
• Reducing plastic waste and carbon
footprint in its supply chain.
• These examples demonstrate how
strategic management enables companies
to innovate, expand, and maintain a
competitive edge in their respective
industries.

15. Conclusion

16. Evolution of
Strategic
Management

17. Evolution of Strategic Management
• Strategic management has evolved significantly over the years,
influenced by economic, technological, and organizational
developments. This evolution can be categorized into distinct
phases that reflect changes in management thinking and business
challenges.
• 1. Early Foundations (Pre-1950s)
• Before strategic management became a formal discipline, business
leaders relied on financial planning and operational efficiency to
drive success. Key characteristics of this period include:
• Emphasis on budgeting and cost control.
• Focus on short-term planning rather than long-term strategy.
• Businesses operated in relatively stable environments with
minimal competition.

18. Evolution of Strategic
Management
• 2. Long-Range Planning (1950s-1960s)
• As markets became more complex,
businesses began forecasting future
trends and planning for long-term growth.
This era saw the emergence of:
• Long-range planning models to
anticipate future industry conditions.
• The application of quantitative
techniques for decision-making.
• Growth strategies focusing on
diversification and expansion.

19. Evolution of Strategic
Management
• 3. Strategic Planning (1970s-1980s)
• With increased globalization and
competition, businesses shifted toward a
proactive strategic approach. This period
introduced:
• The formalization of strategic
planning frameworks.
• The rise of SWOT Analysis (Strengths,
Weaknesses, Opportunities, Threats).
• Michael Porter’s Competitive
Strategy Model, including Five Forces
Analysis and Generic Strategies.

20. Evolution of Strategic
Management
• 4. Strategic Management (1990s-Present)
• The modern era of strategic management
emphasizes adaptability, innovation, and
sustainability. Key developments include:
• Resource-Based View (RBV): Organizations
focus on developing unique capabilities and
competitive advantages.
• Digital Transformation: Technology and data
analytics play a crucial role in decision-
making.
• Agile and Adaptive Strategies: Companies
must respond quickly to changing market
conditions.
• Corporate Social Responsibility (CSR): Ethical
considerations and sustainability are integral
to long-term strategy.

21. Key
Contributions
to Strategic
Management

22. Conclusion
• Strategic management has evolved from basic
financial planning to a sophisticated discipline
integrating competitive analysis, resource-
based strategy, and innovation. Today,
organizations must:
• Adapt to dynamic market conditions.
• Leverage technology for strategic decision-
making.
• Incorporate sustainability and ethical
considerations.
• Understanding the evolution of strategic
management provides businesses with
valuable insights into best practices for
achieving long-term success in an increasingly
competitive and complex global economy.

23. Strategic
Management
Process

24. Strategic Management
Process
• Strategic management consists of four
interrelated stages:
• 1. Environmental Scanning
• The process of assessing external
and internal factors that impact
the organization.
• Tools used include SWOT Analysis
(Strengths, Weaknesses,
Opportunities, Threats), PESTEL
Analysis, and Porter’s Five Forces.

25. Strategic
Management Process
• 2. Strategy Formulation
• Developing strategies based
on environmental analysis.
• Involves setting corporate,
business, and functional-level
strategies such as cost
leadership, differentiation,
and focus strategies.

26. Strategic
Management
Process
• 3. Strategy Implementation
• Converting strategies
into actions through
resource allocation and
organizational
restructuring.
• Requires strong
leadership, cultural
alignment, and
motivation to ensure
success.

27. Strategic Management
Process
• 4. Strategy Evaluation and Control
• Monitoring progress and adjusting
strategies as needed.
• Uses performance measurement
tools like the Balanced Scorecard
and Key Performance Indicators
(KPIs).

28. Importance of the Strategic
Management Process
• The strategic management process is
crucial for several reasons:
• Adaptation to Changing Market
Conditions: Through
environmental scanning and
ongoing evaluation, organizations
can remain agile and responsive
to market shifts.

29. Importance of the
Strategic Management
Process

30. Importance of the Strategic
Management Process
• Sustaining Competitive
Advantage: Proactive
strategy development
helps businesses maintain
a competitive edge by
capitalizing on emerging
opportunities and
addressing potential
threats before they
materialize.

31. Importance of the Strategic
Management Process
• Alignment with Long-Term
Goals: The process
ensures that day-to-day
operations and decisions
are aligned with broader
strategic objectives,
driving long-term success.

32. CONCLUSION
• By following a structured approach to strategic management, organizations can not only
navigate challenges and seize new opportunities but also ensure they are prepared for
future growth and sustainability in an increasingly complex and competitive global
landscape.

33. Reference
• Wheelen, T. L., Hunger, J. D., Hoffman,
A. N., & Bamford, C. E. (2018).
Strategic Management and Business
Policy: Globalization, Innovation, and
Sustainability (15th ed.). Pearson
Education.

34. To God be the Glory!
Prepared by :
Rommel R. Regala, Ph.D.