STRATEGIC MANAGEMENT

 Stategic/Tactic- plan of action

 Strategy- long term plan of action
 Management- distinct process of planning, organizing, staffing, direction, and
controlling (POSDiCon)
 Universal Function (POSDiCon) to set and attain objectives through the use of people
and other resources of business.

ELEMENTS OF MANAGEMENT (7m’s, resources of business)

1. Men- people or men, most important, they own and run the business.
2. Money- working capital, can’t run a business without it.
3. Materials- raw, used for production.
4. Machines- automated, new/modern industry.
5. Methods and Processes- technology, way to run a business.
6. Market- customers/consumers
7. Moment or Time- use of tome, maximum age of an employee, office hours.
Organization- group of people working together.
Concept of Business- it is any legal and lawful activity (business must be registered to various
government agencies.
- Sole-Proprietorship: Department of Trade and Industry (DTI)
- Partnership: Security Exchange Commission (SEC)
- Corporation: Security Exchange Commission (SEC)
- Cooperatives: Cooperative Development Authority (CDA)
Bureau of Internal Revenue (BIR)- tax identification, registration of official receipts, journals,
and book of accounts.
- SSS (social insurance, educational loan, calamity loan, burial benefit, lifetime pension,
etc.)
- PhilHealth (medical care, etc.)
- Pag-Ibig (house and lot purchase)
Microbusiness- 1-9 employees, if 10 or more, it needs to register in Department of Labor and
Employment (DOLE), Government Regulating Agency (how to run the “said” business). Lastly,
business municipality (mayor’s permit).
Business Activity- Service, Trading (buy and sell), and Manufacturing (product idea)
Undertaken by Man
- Sole-Proprietorship: 1
- Partnership: 2
 - Corporation: 5 - 14
- Cooperative: 15 or more
Objective (legal and lawful undertaken by man)
- Profit- to earn, more sales less expenditures
- Expansion of business – expand the business as an economic entity.
- Improve the quality of the lives of the beneficiaries of the business (customers- products
that satisfy the needs and wants. Owner- profit (owners’ get as a reward)

 Backward Linkages- bank where you can loan.

 Forward Linkages- authorize distributors
 Community- income tax
 National Government- contribution of the business, more business more tax GNP
 Business- backbone of economy
4 Kinds of Distribution
- Wholesaler
- Retailer
- Distributor (manufacturer)
- E-commerce
SUMMARY LECTURE 1
 Basic forms of business activities
1. Service
2. Trading
3. Manufacturing
 Basic forms of business organizations
1. Sole-Proprietorship
2. Partnership
3. Corporation
4. Cooperatives
 Objectives of the business
1. Profit
2. Expansion benefits
3. Improve the quality of the lives of the beneficiaries of the business.
 Universal functions of management
1. Planning
2. Organizing
3. Staffing
4. Directing
5. Controlling
LECTURE 2
1. Planning Strategy
2. Planning Implementation- test efficiency, strategy formulation or planning
3. Evaluation- effectiveness controlling- evaluation of performance at the end of the
evaluation to test the operation.
 Strategy Formulation- use business plan as a tool
 Business Plan- systematic analysis of all factors involved (resources, elements, 7m’s)
 Feasibility- possibility for the business to succeed, calculation of risk involved.

Parts of Business Plan

1. Executive Summary
- Designed to capture the reader’s attention, briefly explain your business, the
problem you are solving, target audience, and key financial information.
- List all the main points
- Take each point and turn into a sentence
- Additional sentences to clarify/explain each point
- Check grammar, spelling, and punctuation
- Add short introduction and conclusion (name of article, report, authors, etc.)
- Check for plagiarism
2. Market analysis
- Sources of bus. Self-assessment, environmental scanning (bakit yun ang tinayong
negosyo.)
- Company’s target audience
- Includes where your target market is geographically located
- Primary main points experience by your customer
- Most prominent needs of your target market, how your products/services meet
their needs
- Demographics of your target audience
- Where your target market spends most of their time (social media platforms,
physical locations)
3. Organization and Management Aspect
- What is the name and nature of the business, (ex milktea, how many employees,
structures, duty and responsibility, salaries, logo, trademark)
- Org itself, and how you manage
- Form of business (sole-prop, partnership, corp, coop)
- Selling and practice of operation
 - Vision, Mission, Goals, Objectives, Philosophy, Org Structure: explanation,
duties and responsibilities, salary in every position, working hours, compensation
(holiday, overtime). Logo, symbol
4. Operations Aspect
- Core (business exists because of its product)
- Department that creates the product
- Includes procedure how to provide service/goods – manufacturing
- Technology used, layout, blueprint, flowchart, costing, inventory, list of
expenditures (electricity, water, building, etc.)
(Technical or Production Aspect- technical if in service; Production if in
manufacturing. Layout, tools, materials needed, equipment with costing.
Blueprint of service (steps). Layout (waste disposal)
5. Marketing aspect
- Activities involved in order for the business to be known.
- Quality of the product, rationality of pricing, access to the place (accessibility,
GPS Map. Walk in, online). Strategy used to promote the product (social media
platforms)
a) Product - product quality, nutritional facts (ex. Pizza, what flavors available)
b) Pricing - basis in pricing (mark up, rational pricing)
c) Place - locate the business where the market is. (Why choose that place for the
location of your business) sketch plan, GPS, to show the location of your business
d) Promotion - promotional strategies for your business to be known, diff activities to
know your business (advertisement, celebrity endorsers, raffle ticket)
6. Financing and financial aspect
- Financing; startup capital from organization cost + capital. Franchise (franchise
fee). Org cost, operating cost, (saving, contribution, or subscription)
- Financial aspect, projected financial statement, projected balance sheet, income
statement, cash flow
7. Social aspect
- Corporate social responsibility - impact of business to the community, satisfy the
need by providing quality products, impact in the environment (environmental
compliance) advocacy (at least 5% given to a social responsibility, charity,
financial assistance)
- Contribution of business to the community, business advocacies

LECTURE 3
Strategic- long term
Steps:
- Formulation
- Implementation
 - Evaluation - to know if it is effective
Market analysis
- justify if the work is going to success
- what business u tend to have depended on env scanning, self-assessment
- historical background about your product (what is the essence of the product)
- sustainable dev (“17 goals”. no poverty, no hunger, good health and well-being, quality
education, clean water and sanitation, affordable and clean energy: sun, wind, water.,
responsible consumption and production, partnership “to achieve the goal)
- market supply
- target market (may conduct a survey, basis for pricing)
Core In Strategic Management
 Operations
 Marketing
 Financing