DE LA SALLE UNIVERSITY-DASMARINAS

College of Business Administration and Accountancy

Business Management Department

THE STRATEGIC MANAGEMENT PAPER:

GUIDELINES AND SUGGESTED OUTLINE

The learners shall be grouped into a maximum of three (3) members and are expected to have an
organization (business or non-profit) that shall be the subject of their STRATEGIC MANAGEMENT
(STRAMA) PAPER.

I. Concept and Content

The STRAMA paper will be an integrative paper that should reflect the learner’s ability in the
following areas:
a. Proper application of the strategic management concepts and tools learned during the STRAMA
course.
b. Integration of learning from the various modules/ subjects through the diligent analysis of
economic, industry, competitor, and other external data, the analysis and integration of firm-level,
divisional, and functional issues, and the development of business objectives and strategies that
are consistent and supportive of the firm’s vision and mission.
c. Critical thinking capability as shown in the analysis of external and internal strategic issues of the
chosen STRAMA company, and in the formulation of logical, rational, and creative strategies.
d. Translation of the strategies, plans, and programs into a consistent set of company projections for
the plan period, taking into account the resource requirements and managerial implications of the
strategies, among others.

Note: This STRAMA paper will not include projected cash flow statements, income statements, and
balance sheets for financial projections to make this course realistic for the given period. The learners,
however, should take note that financial projection is a vital part of strategic management in the real-
world scenario.

II. Guidelines in the Selection of a Company

or an Organization for the STRAMA Paper
i. The company or organization should preferably be medium-sized or large, domestic or global,
and operating for at least four years to make a meaningful analysis of the company’s overall
performance.
While strategic management applies to micro and small enterprises, the learner is not
encouraged to adopt small companies and start-ups as STRAMA companies because he/she may
be constrained in applying some of the strategic management concepts and tools.
As a guideline, the company or organization should have an annual revenue (or budget,
in the case of non-profit or non-revenue generating organizations) of Php10 million or more,
with at least 10 employees.
Exceptions to the above will require a written justification from the learner and an
assurance that the in-depth research, analysis, and critical thinking required from the STRAMA
paper can be complied with. The learner needs to discuss this with the STRAMA professor and
secure his/her approval.
Non-Government Organizations (NGOs), Not-for-Profit organizations, and government
corporations/agencies will be allowed as topics for the STRAMA paper, but these should be
discussed with and approved by the STRAMA professor. The requirements on the minimum
number of employees and revenue size should also be complied with. Any exceptions to these
requirements also require justification by the learner and approval of the STRAMA professor.
ii. The learners must have the approval of the company to make it a subject of a STRAMA paper
and must be able to draw information about its operating and financial performance.
iii. The learners should be able to gather sales and marketing, operating, organizational, and other
relevant data/information on the company’s competitors.
iv. A large business unit within a company may be used for the STRAMA paper provided it has
available relevant data which the learners can access. The requirements on the minimum number
of employees and revenue size of the business unit should also follow the general guideline
above. The learners should be able to identify the specific competitors of the business unit, and
secure the marketing, operating, and other relevant internal information about them.
v. The professor must give clearance to the learner on his/her chosen STRAMA Company or
organization.

III. The Evaluation of the STRAMA Paper and the Oral Defense
1. The learners shall submit the following before the evaluation of the STRAMA Paper and the oral
defense:
a. three (3) copies/sets of their STRAMA paper to the professor on or before the deadlines for
Midterm and Final Summative Assessments, respectively.
b. Soft copy of STRAMA Paper and printed result of the plagiarism test result of the STRAMA
paper.

2. The STRAMA paper shall be evaluated based on how well it meets the requirements stated under
sections I and II above and on how well the learners can present and defend it before a panel.
3. The evaluation of the STRAMA paper and the oral defense will be done jointly by the STRAMA
professor who acts as the chair of the panel and two (2) panel members.
4. The learners will receive a grade for the actual STRAMA paper submitted (to be given a weight of
70%) and for the oral defense (to be given a weight of 30%). The weighted average will then weigh
30% in the overall STRAMA grade of the learner (see Grading System in the syllabus).
5. The Evaluation of the STRAMA Paper. The following criteria will be used for grading the STRAMA
paper:
a. Completeness and technical correctness (30 pts) – the degree to which the prescribed content
requirements of the paper have been met, at the same time indicating the correct application
of the STRAMA concepts, theories, and tools.
b. Critical thinking (25 pts) – the ability to integrate information and ideas and carry out a
rational and in-depth analysis and the ability to identify key strategic management issues and
produce substantive, creative, logical, and well-thought-out strategy recommendations.
c. Organization and Writing Skills (15 pts) - the degree to which the topics have been logically
sequenced within sections, use of correct grammar, spelling, tables, and figures formats,
appropriateness of language used, and the overall written communication skill as reflected in
the paper.

6. The Oral Defense. The oral defense grade will be based on the degree to which the learner
demonstrates mastery of the subject through the presentation of the summary and strategic issues and
strategy recommendations and handling of the questions from the panel members. The learner’s oral
communication skills, clarity, and effectiveness of the presentation materials used are also important
and will be considered in the evaluation.
The following rubric will be used in assessing the quality of the presentation during oral defense:

Traits 5pts. 15pts. 25pts. 30pts.

Content The presentation The presentation The presentation The presentation
Did the contained little to no had moments where had a good amount had an exceptional
presentation have valuable material. valuable material of material amount of valuable
valuable material was present but as a (occasionally using material (using
relevant to the whole content was exercises and exercises and
topics assigned? lacking. problems to problems to
illustrate a concept illustrate a concept,
or citing actual citing actual
business cases) business cases)

Organization The presentation There were minimal The presentation The presentation
Was the lacked organization signs of had organized ideas was well-organized,
presentation well and had little organization or but could have been well-prepared, and
organized and easy evidence of preparation. much stronger with easy to follow.
to follow? preparation. better preparation.
Presentation The presenters were Presenters were not Presenters were The presenters were
Did the presenters unconfident and consistent with the occasionally all very confident in
speak clearly? Did demonstrated little level of confidence/ confident with their their delivery and
they engage in the evidence of preparedness they presentation they did an
class? Was it planning before the showed the however it was not excellent job of
obvious the presentation. classroom but had as engaging as it engaging the class.
material had been some strong could have been for Preparation is
rehearsed? moments. the class. evident.
Use of Media Media is Relies heavily on Looks at the Media are used
Did the group use superfluous or the media used. materials often to effortlessly to
any media or nothing was used Materials rarely keep track of the enhance the
materials to support during the support the presentation. They presentation.
their presentation? presentation. presentation. are easy to use and materials are
Did they reinforce understand. appropriate, easy to
the presentation and understand, and
are appropriate, attractive.
easy to understand,
and attractive?

7. For the STRAMA paper and the oral defense, the grade will be determined jointly by the STRAMA
professor and the other two defense panel members based on a defined set of criteria and rubrics. The
learners’ grades for the STRAMA paper and oral defense will be the weighted average of the grades
given by the three (3) panel members.

SUGGESTED OUTLINE

EXECUTIVE SUMMARY
Provide a summary or overview of the strategy paper (in two pages at most), stating what the
business of the company is, the main results of the external and internal analyses, results of strategy
formulation tools used, the key strategic management issues and the recommended strategic and financial
objectives (at least for the next three years), and strategies and significant action plans.
I. INTRODUCTION
Include a short background on the company.
 Nature of business/products/services
 Current revenue size and profit
 Major markets served.
 Number of employees
 Other relevant basic information

II. RESEARCH DESIGN AND METHODOLOGY

Identify the following:
 Data and information sources
 How information was obtained & methodologies used
 Major assumptions

III. COMPANY’S VISION AND MISSION

 State the current vision, mission, and objectives of the company.
 Comment or evaluate the vision and mission statements using David’s Strategic Management
Framework and other criteria discussed in class. Recommend changes if needed. Or develop
new vision and mission statements. Explain how the recommended vision and mission meet
the criteria based on David’s framework, including how it takes into account ethical
principles and nation-building.
 Give recommendations on how you will communicate the vision and mission to the
employees and other stakeholders.

IV. EXTERNAL ANALYSIS

A. General Environment
1. Discuss the current and expected outlook in the following areas, focusing only on factors
that will have a significant impact on your business. Consider the following areas only
insofar as they are relevant, and thus exert a significant impact on your industry.
a. Economic developments
b. Socio-cultural, demographic trends, lifestyle changes
c. Technological developments
d. Political, legal, and governmental aspects
e. Ecological aspects
f. Other external factors that may be more directly relevant to your business
2. Translate the above in terms of what it means for your business, identifying opportunities
and threats that may affect the following:
a. Market demand and opportunities
b. Types of products and services offered.
c. Intensity of competition
d. Suppliers and distributors
e. Costs of doing business
f. Other aspects of the business

B. Industry and Competitor Analysis

1. Analyze the industry’s situation and prospects by looking into the following:
a. Market size and/or growth rate and stage in the growth cycle
b. Number of players and their relative sizes; market share analysis
c. Market aspects (products or services, price, promotion, and channels of
distribution)
 d. Buyer/Customer profile
e. Factors affecting costs of doing business.
f. Operations/Production aspects
g. Technology developments
h. Industry financial analysis (growth, profitability, liquidity, leverage, efficiency)
i. Problems in the industry
j. Critical success factors in the industry

2. Analyze your industry using Porter’s Five Forces framework of competitive analysis and
based on the preceding analysis, state your conclusion for each force.
3. Do a competitor analysis:
a. Identify your major competitors and provide relevant information for each, e.g.,
revenue size, financial health, market share, strategies, etc. If there are too many,
select and focus only on a few (about two or three) and explain why you chose to
focus on these competitors.
b. Evaluate your competitors and your company vis-à-vis the critical success factors
identified.

C. Summary and Conclusion

1. Using the results of your general environment and industry analyses, identify and
summarize the major opportunities and threats.
2. Use the EFE matrix tool to assess how well your company is responding to the
opportunities and threats in the environment. Make sure that the factors included in your
EFE have been discussed in the external and industry analyses and the factors you
discussed in your analyses should be reflected in your EFE for consistency. Explain your
weights and ratings.
3. Draw your conclusion about the industry’s overall prospects and industry attractiveness.
4. Conclude your current company’s competitive position or business strength in the
industry, e.g., very strong, strong, middle-ground, weak.
5. Identify key strategic issues related to the external environment that will have a
significant impact on your business.

V. INTERNAL/COMPANY ANALYSIS
A. Review the company’s performance in terms of key performance indicators:
1. Revenue/sales in the past three years
2. How does the company’s growth compare with industry growth or vis-à-vis the other
players?
3. Profitability, other relevant performance indicators
4. Applicable financial ratios
5. Value Chain Analysis

B. Do an organization diagnosis using:

1. David’s functional audit to assess the different functional areas of the organization.
2. McKinsey’s 7S Model

C. From the above, identify the company’s major strengths and weaknesses.

D. Use the IFE matrix to evaluate the overall internal strengths and weaknesses of the company.

E. Summary and Conclusion

1. Identify the major internal strategic issues that the company must address.
 2. Identify key organizational elements that may hinder or promote growth and productivity.

VI. STRATEGY FORMULATION

A. Based on the different strategy formulation tools used (for example Porter’s Generic
Strategies, SWOT, BCG Matrix, QSPM) and other relevant analytical and matching tools to
come up with strategic options and directions for the company. Explain the results of your
analyses.
B. Make sure that your analysis and positioning in the various matrices/cells are consistent with
the results of your external/industry and company analyses.
C. Do a summary and prioritization of the various strategies derived from the various tools.
Select the strategies that you will adopt to attain your objectives, and ultimately, your vision.

VII. OBJECTIVES, STRATEGY RECOMMENDATIONS, AND ACTION PLANS

A. Strategic Objectives
1. Provide a clear statement of your strategic objectives for the company or business, for the
next three years. It should state measurable objectives, e.g., market position, sales or
revenue growth, net income or profit level, profitability, or rate of return, etc. (Follow the
SMART rule – specific, measurable, achievable, realistic, and time-bound.)
2. Strategic objectives: These should define the major strategic thrust of the company. The
strategic objectives should consider the following:
a. It must support the company’s vision/mission in Chapter III
b. It must take into account the expected external/industry prospects as shown
c. in the external and industry analysis
d. It must take into account the company’s historical performance and
current/expected competencies and capabilities.
e. It must be consistent with the results of your analytical tools under Chapter VI.
For example, an aggressive expansion strategy should show more aggressive
revenue growth while a “hold and maintain” position should show more
moderate growth for the company.
3. The time frame can be anywhere from three to five years hence, depending on the nature
of the business and the characteristics of the industry where it belongs.

B. Recommended Business Strategies

1. This should provide a more specific and comprehensive discussion of your proposed
strategies consistent with the directions/generic strategies indicated by the strategy
formulation tools. Avoid generic and motherhood statements. The strategies should
enable the company or organization to achieve its objectives and address the strategic
issues identified in your external and internal analysis.
2. If you are dealing with several businesses or product types, you may need to group them
or come up with one set of strategies for each business or product type.
3. If you are diversifying into a new business but plan to maintain your existing or core
business, you need to specify a set of strategies for both the core and new business.
4. Include functional-level strategies for the following areas: Marketing, Sales and
Distribution, Operations/Production/Manufacturing, Finance, and Human Resources.

C. Recommended Organizational Strategies

1. Identify strategies that will involve the necessary changes needed to align the
organization with the requirements of the business, given the long-term objectives and
strategies.
 2. Identify strategies that will address the identified internal strategic issues, address the
organizational weaknesses of the company, or take advantage of its strengths.

Note that the business and organizational strategies may also be combined if deemed
more appropriate.

VIII. STRATEGY IMPLEMENTATION

A. The Strategy Map
Translate your strategy recommendations into a strategy map for the company.

B. Departmental Action Plans and Programs

1. Show that the action plans and programs will support your objectives and strategies.
2. This should outline the different programs and step-by-step action plans that will be
undertaken to progress the implementation of the strategic plan. The action plans can be
classified by strategic programs or by department or both.
3. Specify milestones/expected output, timetable, and persons or units responsible.
4. The action plans should also consider and indicate the resource requirements (financial,
physical, technological, and human resources). This will support your financial
projections.

C. Overall Evaluation of the Strategies

1. Summarize the overall evaluation, and assess the reasonableness, feasibility, and
acceptability of your strategies.
2. Make sure your strategies have a logic based on your external and internal analysis and
they will enable the company to accomplish its strategic objectives.

IX. STRATEGY EVALUATION, MONITORING, AND CONTROL

A. Prepare an appropriate Balanced Scorecard for the company as your strategy evaluation and
monitoring tool. This should allow the company to evaluate and monitor its strategies from
various perspectives: customer knowledge, internal business processes, and learning and
growth.
B. In each perspective, the Balanced Scorecard should contain the following: objectives,
performance measures, targets, and initiatives. Make sure that these are consistent with your
strategic recommendations.

Additional Guidelines:
 Do not be constrained by the company’s current strategic plans or what you think will be
acceptable to the company’s management. What is important is that your recommended strategies
follow the logic of your external and internal analyses, your strategy formulation tools, and your
strategic insights.
 Make assumptions whenever necessary but state these assumptions clearly.
 Ensure internal consistency of your strategic and action plans with the action plan/projections.
 While the STRAMA paper will be evaluated largely based on its logic, substance, and content, it
should be professionally done and written in a formal style using the correct grammar, spelling,
choice of words, and proper format. In addition, all tables and figures in the paper should be
numbered for easy reference and should have appropriate titles, with units of measures used and
data sources indicated. The previous three years’ financial statements should be included in the
paper as part of the Appendices.
 Acknowledge and cite your references and data sources. Proper footnoting should be followed.
Note that the school enforces strict rules against plagiarism.