OUTLINE: STRATEGIC MANAGEMENT PAPER
I. Executive Summary
- One to two paragraph company background
- Summary of recommendations
- Strategy Map to show how all your recommendations hang together
Note: not more than 3 pages
II. Research Design and Methodology
- Data gathering techniques
- Framework of analysis used
Note: Not more than two pages.
III. Societal Environment Analysis
Choose factors in the societal environment that are relevant to your
industry/company. Gather and present data, analyze them and make sure that the analysis will bring
out the OPPORTUNITIES and THREATS found in the societal environment. Use the
STEP framework in any order as a general outline:
To help you brainstorm on what factors to consider in the societal
environmental analysis, you can use the table below.
Some Important Variables in the Societal Environment
Globalization of Markets
Depreciation/ Appreciation of Currency
availa-bility and cost
Disposable and discretionary income
New developments in IT
national spending for R&D
industry spending for R&D
of technological efforts
developments in technology transfer from lab to market place
Productivity improvements through automation
Stability of government
Environmental protection laws
Attitudes toward foreign companies
hiring and promotion
rate of population
distribution of population
Regional shifts in population
expectancies Birth rates
IV. Industry Analysis
You can use any framework of analysis. If you are going to use the
5-Forces of Competition, make sure that as you cover each and every force of
competition and make sure that you are able to:
- Provide sufficient information to analyze the strength or weakness of
the force of competition;
- Cite specific factors affecting the force of competition. These
factors are found below.
Outline of this chapter follows the five forces of competition model:
- Threat of new entrants
- Rivalry among existing firms
- Bargaining power of Buyers
- Bargaining power of Sellers
- Threat of Substitute Products
Make sure that as you discuss each force of competition you will clearly
state the force of competition as either STRONG, MODERATE or WEAK. If
necessary you can add a section called Trends in the Industry.
Part of your RIVALRY among EXISTING FIRMS section would be the
COMPETITIVE PROFILE MATRIX. In this matrix, include sufficient information
on competitors so that your ratings will be appreciated by the panelists.
V. External Factor Evaluation Matrix
This will serve as a summary of the Societal Environmental Analysis and
Industry Analysis. Write only the opportunities and threats covered in the
societal and industry analysis.
VI. Company Analysis
Use any framework of analysis. If you are going to use the 7-S framework,
add the 8th S which is the State of Finances. Make sure that
whatever framework you use must include an analysis of the company’s
financial statements, preferably the last 3 years. The 8-s framework
is found below.
In the analysis of the culture or the shared values of the company,
include the analysis of the mission/vision statement in terms of the nine
components and how the Mission/Vision is currently cascaded throughout the
After the company analysis, the IFE can be prepared as a summary. Only
the strengths and weaknesses discussed in the analysis must be placed in IFE.
VII. Strategy Formulation
- Basic Introduction - Place one paragraph to introduce the different
strategy formulation tools.
IMPORTANT: After showing the strategic options presented by the
different Strategy formulation tools, a SUMMARY OF MATRICES should be
Immediately after the SUMMARY OF MATRICES an ANALYSIS should be made
which should take into consideration the following:
- Are the STRATEGIES with high scores relevant to the Company? If not,
state the reasons. These strategies will not be considered for
- Are there strategies derived from the TOWS which you think should be
included in the STRATEGIES inspite of the fact that it only came out of
the TOWS Matrix? State your reasons in the analysis.
The strategies remaining after #1 and the other TOWS strategies to be
included in #2 should then be the subject of Prioritization.
VIII. Prioritization of Strategies
Use the QSPM or any other tool for prioritization. This tool of analysis
can be made an appendix. The results can be presented in this section.
A. Mission/Vision. State any proposed changes, including
final Mission/Vision wordings. If the company does not have a mission/vision
statement, recommend one. Suggest ways by which you can improve the
cascading and internalization of the Mission/Vision.
B. Proposed Strategies (Based only on those that were
prioritized in the QSPM).
List down and describe each of the proposed strategies. A one
to two paragraph
description of these strategies to give the reader an idea of the direction
that the strategy will take is enough. For example, if one of the strategies
is PRODUCT DEVELOPMENT, the student must discuss the possible product
changes and rationale for the changes in the features of the product &/or
services. In the description, DO NOT INCLUDE ANYMORE THE TEXTBOOK DEFINITION
OF THE STRATEGY.
C. Departmental Programs - This section should amplify the
recommended strategies. Thus, it is expected that more details will be
presented in terms of the activities needed for FINANCE, OPERATIONS,
MARKETING, HR, IT (if applicable) or R&D (if applicable) to implement the
Improving the customer value package can be included in the
Departmental Program for MARKETING. Alternatively, these could be taken as a
separate section in the departmental programs. Refer to the
Dimensions of the Customer Value Package web page.
D. Strategy Evaluation and Control
State here the manner by which you will be judging the
effectiveness of the STRATEGIES and DEPARTMENTAL PROGRAMS. The Balanced
Scorecard covering the Financial Perspective, Customer Perspective, Internal
Business Perspective and Learning and Growth Perspective can be useful.
State the GOALS, MEASURES, TARGETS (including timetables) and INITIATIVES.
Make sure that corporate level and departmental level goals,
measures, targets and initiatives are covered.
Financial projections (Income Statement, Balance Sheet,
Cash Flow) for the next 3 years reflecting the strategies and departmental
programs should be prepared. For example, if product development, market
penetration and market development are the chosen strategies, how will these
strategies affect revenues? What percentage of the growth in revenues will
come from Product Development? Market Penetration? Market Development? Price
Increase? If part of the strategies will result in cost reduction for the
company, this should be reflected in the financial statements. If borrowings
&/or additional equity is necessary, the same should be reflected in the
financial statements. These are just some examples of strategies and
departmental programs that need to be reflected in the financial
projections. The financial projections should serve as a standard by which the
effectiveness of the strategies and departmental programs can be judged.
Assumptions to financial projections should be clearly stated.
Financial ratio analysis should be made.