Strategic Planning & Decision-Making

1. PLANNING,
STRATEGIC PLANNING &
DECISION-MAKING
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• DEFINITION AND COMPONENTS OF STRATEGY
• LEVELS OF STRATEGY
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Philippine Christian University - Master in Business Administration - Management
“If you fail to plan, to plan to fail”

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Philippine Christian University - Master in Business Administration - Management

4. Philippine Christian University - Master in Business Administration - Management
• GOAL-ORIENTED:
• PRIMARY FUNCTION:
• PERVASIVE:
• CONTINUOUS:
• DECISION-FOCUSED:
• FUTURISTIC:

5. Type Time Frame Management Level Focus Example
Strategic Planning
Long term (3-5
years)
Top-level
Organizational
direction and goals
Setting the
company vision
and mission
Tactical Planning
Mid-term (1-3
years)
Middle-level
Departmental
objectives
Developing a
marketing plan for
a new product
Operational
Planning
Short-term (daily – 1
year)
Lower-level Routine operations
Managing
inventory orders
Philippine Christian University - Master in Business Administration - Management

6. STEPS IN THE PLANNING PROCESS
1. Establishing
Organizational
Goals and
Objectives
2. Environmental
Scanning and
Situational
Analysis
3. Identifying
Alternative of
Actions
4. Evaluating
Alternatives
5. Selecting the
Best Alternative
6. Developing
Action Plan
7. Implementing
Action Plan
8. Monitoring
and Evaluating
Progress
Philippine Christian University - Master in Business Administration - Management
• Goals should
be SMART
(must be
aligned with
the vision
and mission
of the org.
• Provides
direction
and purpose
• MBO (P.
Drucker)
• Helps org.
anticipate
trends and
make
informed
decisions
grounded in
data and
forecasts
• SWOT
• PESTEL
• Porter's Five
Forces
• Generating
a range of
possible
strategies
and actions
that could
help
achieve
goals.
• Managers
must weigh
options
based on
limited
information
and time.
• Selecting the
most
appropriate,
efficient, &
sustainable
strategy.
• Cost-benefits,
Feasibility,
• Risk Factors,
Alignment
with
Organizational
Goals
• Decision-
making
based on
evaluation.
• Strategic
judgment
and
compromise.
• Choice must
be justified in
terms of
value
creation and
goal
alignment.
• Order and
discipline
(Fayol’s
Principles) –
to ensure
coordination
and clarity.
• Assigning
responsibilitie
s
• Setting
timelines
• Allocating
resources
• Establishing
monitoring
metrics.
• Putting the
plan into
action
(teams or
individuals).
• Effective
leadership,
communicat
ion, and
motivation
are vital to
ensure
compliance
and
performanc
e.
• Adaptive
decision-
making.
• KPIs
• Balanced
Scorecard
• Feedback
loops

7. Philippine Christian University - Master in Business Administration - Management
§ Strengths refer to internal attributes that give the organization a
competitive edge, such as:
§ Strong brand equity, Proprietary technologies, High
employee engagement, Robust financial health, Effective
leadership
§ Weaknesses, on the other hand, are internal limitations that hinder
performance or reduce competitiveness:
§ Outdated infrastructure, High employee turnover, Lack of
innovation, Inefficient supply chain, Gaps in customer service
§ Opportunities are favorable trends or developments in the external
environment, such as:
§ Emerging markets, Technological innovations, Shifting
consumer preferences, Government subsidies or deregulation,
Strategic partnerships
§ Threats refer to external risks or negative forces that could undermine
the organization's success:
§ Competitive pressures, Economic instability, Regulatory
changes, Cybersecurity risks, Disruptive technologies

8. Philippine Christian University - Master in Business Administration - Management
SWOT ANALYSIS (SAMPLE – REPORTER)
Brand (History; Alumni)
High Passing
Percentage in the
Board Exams
High Accreditation
Top-notched Facilities
Lack of Policy in some
areas
Professional
Advancements
Expansion
Free College
Education (SUCs that
offer similar programs)
Strengths
Threats
Opportunities
Weaknesses

9. Philippine Christian University - Master in Business Administration - Management
SMART helps reduce ambiguity and
increase accountability in goal setting.
SMART Goal: “Increase customer
satisfaction ratings by 10% within the next 6
months through customer service training
and the implementation of a feedback
system.”
SMART criteria ensure that planning
is intentional, results-driven, and
accountable, thus enhancing execution
efficiency.

10. Philippine Christian University - Master in Business Administration - Management
Where to focus
(SWOT Analysis)
How to act
(SMART Goals)
INTEGRATION OF SWOT & SMART
Strategic-
operational
bridge
After conducting a SWOT
analysis, a manager
identifies “low customer
retention” as a weakness.
“Reduce customer churn by 15% over the
next quarter through a personalized
customer loyalty program and automated
follow-up emails.”

11. DEFINITION OF STRATEGY
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Philippine Christian University - Master in Business Administration - Management

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Philippine Christian University - Master in Business Administration - Management
KEY CHARACTERISTICS OF STRATEGY

13. Level Key Questions Examples Involved
Corporate
• What business should
we be in?
• Should we diversify?
A university expanding its
portfolio by opening a
law school.
Top executives and
board members.
Business
• How do we compete?
• What is our target
market?
• Cost-leadership (price
competition)
• Targeting a niche
market (luxury
vehicles)
General managers and
unit leaders.
Functional
• How can each
department support
the overall business
strategy?
The marketing
department developing
a digital strategy to
support a new product
launch.
Department heads and
team leaders.
Philippine Christian University - Master in Business Administration - Management
LEVELS OF STRATEGY

14. Philippine Christian University - Master in Business Administration - Management
Prepared and Presented by:
Jeremy Floyd L. Pedregosa
Thank you!

15. Philippine Christian University - Master in Business Administration - Management

16. Philippine Christian University - Master in Business Administration - Management