Strategy Formulation

Elements of corporate
strategy

Decision some time in advance

What is to be achieved
What action is to be taken
When it is to be completed
How it is to be done
By whom?

Elements of corporate
strategy
Long range plan because
* involves investment
* involves competition
* technological changes predicted and
intercepted

Organizational variances
The entrepreneur or birth stage
start up, lean and mean
The expansion and consolidation
stage rapid growth period
The diversification stage capitalize
on main product but also grow in
other related areas
The decline and renewal stage no
need to plan

Strategic ownership
CEO owns the strategy
But there are layers of ownerships

Finance
Product sales
Product marketing
Product manufacture
Product development

Strategy formulation
process

Vision
Action plan (SWOT)
Review
Assessment (SWOT)

The strategic cycle

Strategy formulation
process
MSU Iligan Institute of Technology
Vision
A world-class institution of higher learning renowned
for its excellence in Science and Technology and for
its commitment to the holistic development of the
individual and society.
Mission
To provide quality education for the industrial and
socio-economic development of Mindanao with its
diverse cultures through relevant programs in
instruction, research, extension, and community
involvement.

 Objectives
To develop and implement training programs
geared to meet the technical and skilled
manpower requirements of the specific type,
magnitude, and level of competence needed by
existing and projected industries in Iligan City
and its environs;
To initiate and undertake projects and studies
which bear on the manpower needs, industrial
growth of Iligan, and other development
projects including those needed by specific
industries;
To organize and implement, as needed by the
community, academic programs for the
development of the technical and professional
manpower that will enhance and support the

SF tools and techniques

Value analysis driving forces are itemized
and analyzed, balance have to attain between
share holders, customers
Market analysis study market related factors
that affect supply and demand of products and
services.
Finance and control
Manufacturing (toll - Sun Valley)
Strategic alliances (Manny vs. MMMPP)
Supplier / customer relationships
Etc.

SF tools and techniques

Gap analysis study aims of
corporation and expected results if
no action is taken
Corporate aims
Expected results
Size of the gap
Method of filling the gap
Growth alternatives

Plan implementation

Plan implementation
Management by objectives (MBO)
goals set, agreed and acted upon,
progress monitored, individuals are
appraised
Key Results Areas
Customer related delivery time, cost,
quality, care
Process related time to market,
enhancements at full capacity
Financial measures profit, sales, market
share, cash flow