A.
INTRODUCTION
This module, titled "Strategic Planning/Analysis," serves as the cornerstone of strategic
management. It encompasses a comprehensive process of analysis, decision-making, and action-
taking essential for the effective formulation and implementation of strategies. This phase, lays the
groundwork necessary for successful strategic endeavors. This module equips individuals with the
foundational knowledge and tools necessary to explore strategic planning/analysis, the cornerstone
of strategic management process.
The module encompasses four critical components:
Unit I Formulating/Analyzing the Organization’s Goals and Objectives: Ensuring
Coherence Strategic Direction.
Unit II External Analysis involves analyzing environmental forces and trends from
Political, Economic, Social, Technological, Legal, and natural forces to identify opportunities
and threats; including competitive forces of an industry;
Unit III Internal Analysis deals with assessing an organization's resources, capabilities, and
activities.
B. DESIRED LEARNING OUTCOMES:
By the end of this unit, students must have:
1. distinguished the levels of the organizational goal hierarchy—vision, mission, and
strategic objectives —and explain their roles in ensuring coherence in corporate strategic
direction.
2. explained and differentiate the fundamental concepts of vision, mission, and strategic
objectives by defining, comparing, and illustrating them using examples from Philippine
and global business organizations.
3. formulated clear, coherent, and values-driven vision and mission statements at the
personal/professional level, aligned with sound strategic management principles.
4. applied and evaluated strategic management concepts by conducting a vision–mission
alignment analysis of a selected business or corporate organization (e.g., an auditing or
manufacturing firm) and submitting a group-written/oral corporate analysis report by
the end of the unit.
🚀 C. WARM-UP ACTIVITY: Envisioning Your Future
Lesson 1. The Organizational Goal Hierarchy: Ensuring Coherence in Strategic Direction
The Hierarchy of Goals
Hierarchy of Goals refers to the structured arrangement of goals from the broadest, long-term
intentions down to specific, short-term actions.
Organizational Vision is the long-term goal of an organization typically covering a period of five
years or more. It must be massively inspiring, overarching, and long-term goal.
Vision encapsulates the ideal description of what an organization wants to achieve in the
future, offering representation of its envisioned future. It serves as a guiding beacon, directing the
firm towards its prospective state in the years ahead. Ideally, it embodies the firm's values and
aspirations which aims to resonate deeply with every employee and, ideally, with a multitude of
stakeholders.
What Constitutes a Vision?
It embodies a destination propelled by and evoking passion.
It paints a clear picture of what the organization aspires to become and accomplish in the
future.
It forms a compelling narrative that helps individuals understand their role within the
organization.
It should be closely aligned with the prevailing conditions of the firm's external and internal
environment.
Example: Zest-O Corporation (Philippines — Food & Beverage Manufacturer)
Vision Statement “To be the leading food and beverage Filipino company competing with multinational
companies.”
Mission
Mission is an organizational goal which encompasses the “unique purpose” of the
organization; the "reason for being" a declaration of fundamental beliefs, values, aspirations, and
philosophical priorities of the organization. Moreover, it signifies the commitment of the
organization to its various stakeholders.
Mission Statement of Zest-O Corporation
“To be the leading manufacturer and distributor of juices, dairy, and related food products that best satisfy the growing
needs of the customers.
Characteristics of a Good Mission
It must be compelling, passionate and energizing.
It is inspiring and relevant to stakeholders.
Internal and External Uses of a Mission:
a. Internally:
Act as an inspiration, enlighten the path for management's strategic decision-
making process;
Establish clear benchmarks to measure organizational performance effectively;
Ignite motivation among employees, foster a culture of high productivity,
commitment and dedication;
Serve as a compass, guides employees in their decision-making processes;
Set the foundation for ethical conduct, provides a framework for principled
behavior within the organization;
b. Externally:
Mobilize external support from various stakeholders.
Strengthen ties and facilitate stronger connections with customers, suppliers, and
alliance partners, fostering mutually beneficial relationships.
Serve as a dynamic public relations instrument, shape and enhance the organization's
public image and reputation.
The Process of Formulating Organizational Mission
1. Identification of Stakeholders In defining a mission, strategic managers must identify all
stakeholders’ groups and weight their relative ability to affect organizational success.
2. Understanding of specific claims vis-à-vis the company. Strategic decision makers should
understand the specific needs and expectation of each group to appreciate their concerns and
initiate clearly defined actions.
The following are the different stakeholders of a corporate firm with their expectations:
Stakeholder Group Expectations of Stakeholders
Stockholders Dividend, capital appreciation
Employees Wages, benefits, safe working environment, job security,
work-life balance
Suppliers Payment on time; assurance of continued relationships
Creditors Payment of interest; repayment of principal
Customers Value; warranties
Government Taxes; compliance with regulations
Community Good citizenship behavior such as charities,
employment
3. Reconciliation of claims and assigning them priorities. To achieve unified approach,
managers must define a mission that resolves the competing, conflicting and contradictory
claims.
4. Coordination of claims with other elements of the mission.
Note: The outcome of the process is a clear and coherent organizational mission that integrates
stakeholder interests, aligns with the organization’s vision, and guides decision-making and
overall organizational direction.
Sample of an ideal Mission Statement: Philippine Airlines (PAL)
Our Commitment is to provide:
Our CUSTOMERS, with the safest and the best air transport service.
Our PEOPLE, with opportunities for a rewarding personal and fulfilling
professional life.
Our INVESTORS, with consistently impressive shareholder values.
COUNTRY, with a partner in progress linking our nation together, and showcasing
the best of the Philippines in the world.
Note: The mission statement of PAL is ideal because it clearly identifies its key stakeholders—
customers, employees, investors, and the country—and specifies commitments to each.
E. LEARNING ACTIVITY:
Instruction: As a college student, identify who are your key stakeholders (e.g., parents, relatives, friends,
school, community), arrange according to your priority. Know their expectations about you? Develop
strategies to satisfy their expectations?
ACTIVITY SHEET
Name Class Schedule
Course & Year Subject Strategic
Management
Title of Activity Clarifying My Life’s Student Number
Purpose
Stakeholders Expectations Strategies to satisfy
stakeholders
Family
Relatives
Professors
Community
Friends
Strategic objectives are specific, short-term targets that guide daily, weekly, or monthly activities. They help
translate the mission into actionable steps and move the organization toward its long-term goals.
Characteristic of a Meaningful Strategic Objectives
For objectives to be meaningful, they need to satisfy SMART criteria:
Specific. A clear statement of what needs to be accomplished.
Measurable. It must track progress against objective.
Appropriate. It must be consistent with the vision and mission of the organization.
Realistic. It must be challenging but doable and within organization’s capabilities and
resources.
Time bound. There must be a time frame for accomplishing the objective.
Example: Zest-O Corporation, a Philippine Beverage & Food Manufacturer
Objective 1 Market Expansion Increase market share of Zest-O juice products in the Luzon retail
segment by 10% by Q4 2026 through intensified promotions, expanded distributor partnerships, and
targeted in-store activations.
Specific Grow market share in Luzon retail segment
Measurable 10% increase
Appropriate Supports mission to satisfy customer needs and compete with multinationals
Realistic Based on current distribution capacity and marketing plan
Time-bound By Q4 2026
Objective 2 Quality Improvement Reduce product returns due to quality defects to less than 2% of total units
shipped by end of 2026 through enhanced quality control systems and monthly line audits.
Specific: Reduce product returns due to quality issues
Measurable: Less than 2% return rate
Appropriate: Consistent with mission to deliver quality products
Realistic: Achievable with QC improvements
Time-bound: By end of 2026
Objective 3 Employee Development Provide a minimum of 30 hours of professional and safety
training per employee annually starting 2026 to support employee growth and workplace safety.
Specific: 30 hours of training per employee
Measurable: Training hours logged
Appropriate: Aligned with mission to support people’s professional growth
Realistic: Within current HR training budget
Time-bound: Annually starting 2026
👥 F. GROUP ACTIVITY: Organizational Goal Analysis
Group Activity Worksheet: Organizational Goal Analysis
Instructions:
1. Form a group with a maximum of seven (seven) members.
2. Create a group chat to coordinate tasks and updates.
3. Choose a business organization that is related to your field of study.
4. Research and analyze the Vision and Mission statements using your understanding from this unit.
5. Present your analysis creatively and engagingly.
Group Information
Group Name/Code: Date:
Group Members (up to 7):
1.
2.
3.
4.
5.
6.
7.
Chosen Organization
Organization Name: _____________________________________
Industry/Field: _________________________________________
Part I – Vision Analysis Using strategic management concepts discussed in the unit, analyze the
company’s vision statement in terms of its clarity, direction, and future orientation.
Vision Analysis Matrix
VISION Statement of the Is it clear and challenging?
Company Is the vision massively inspiring, overarching and
future-oriented?