Strategic Management

CANOE THEORY
CANOE THEORY
◼ Think of an organization as a long canoe
◼ The canoe has a shared destination
◼ Everyone in the canoe has a seat and paddle
◼ Everyone is expected to paddle
◼ Those who won’t paddle have to get out of the
canoe
◼ Those who prevent others from paddling have
to re-adjust or get out of the canoe
◼ There are no passengers in the canoe
◼ The canoe theory understands crisis
◼ The canoe theory says you have the right to be
happy
The Canoe Theory provides valuable
insights into several key aspects of
strategic management:

◼ Strategic Alignment
◼ Teamwork and Collaboration
◼ Leadership and Vision
◼ Adaptability and Change Management
◼ Continuous Improvement
 Thinking Strategically:
The Three Big Strategic Questions

1. Where are we now?

2. Where do we want to go?
– Business(es) to be in and
market positions to stake out?
– Buyer needs and groups to
serve?
– Outcomes to achieve?
3. How do we get there?
 What is Strategy?
• A company’s strategy consists of the set of competitive
moves and business approaches that management is
employing to run the company
• Strategy is management’s “game plan” to
– Attract and please customers
– Stake out a market position
– Conduct operations
– Compete successfully
– Achieve organizational objectives
 Why Are Strategies Needed?

To proactively shape To mold the independent

how a company’s actions and decisions of
business will be managers and employees
conducted into a coordinated,
company-wide game plan
 Strategic Management Concept

Competent execution of a well-conceived

strategy is the best test of managerial excellence
and a proven recipe for organizational success!

Good Strategy + Good Strategy Execution =

Good Management
Strategic Management – Defined

Art & science of formulating,

implementing, and evaluating cross-
functional decisions that enable an
organization to achieve its objectives.
-Fred David
 Importance of Strategic Management
• Improves Performance: Increased profitability,
market share, and return on investment.
• Provides Direction: Clearer sense of purpose and
focus for the organization.
• Gains Competitive Advantage: Helps
organizations outperform rivals in the marketplace.
• Facilitates Change: Enables organizations to
adapt to changing market conditions and new
opportunities.
• Improves Decision-Making: Provides a
framework for making informed and effective
decisions.
 Strategic
Management Company Vision,
Process mission
and core values

Possible?
External
Internal analysis
analysis
Desired?

Strategic analysis and choice

Long-term
Generic and grand strategies
objectives

Short-term objectives; Policies that

Functional tactics
reward systems empower action

Restructuring, reengineering
and refocusing the organization
Legend Strategic control and
Major impact continuous improvement
Minor impact
 The Five Tasks of Strategic Management

Task 1 Task 2 Task 3 Task 4 Task 5

Develop a Monitor,
Craft a Implement
Strategic Evaluate,
Set Strategy and
Vision and Take
Objectives to Achieve Execute
and Corrective
Objectives Strategy
Mission Action

Revise as Revise as Improve/ Improve/ Recycle

Needed Needed Change Change as Needed
Strategic Management Model
◼ Scanning
◼ Where are we now?
◼ Strategy Formulation
◼ Where do we want to be?
◼ Strategy Implementation
◼ How do we get there?
◼ Measurement/Performance
◼ How do we measure our progress?
 Thinking Strategically:
The Three Big Strategic Questions

1. Where are we now?

2. Where do we want to go?
– Business(es) to be in and
market positions to stake out?
– Buyer needs and groups to
serve?
– Outcomes to achieve?
3. How do we get there?
Strategic Management Model
◼ Strategy Formulation
◼ Where do we want to be?
◼ Vision
◼ Mission
◼ Values
◼ Goals
◼ Objectives
VISION
Vision without Action is a Daydream
Action without Vision is a Nightmare
◼ Not Optional

◼ Stretch – 30+ Years

◼ Future State

◼ Brief and Memorable

◼ Inspiring and Challenging

◼ Descriptive of the Ideal

 CATEGORIES OF CRAFTING
VISION STATEMENT

1. Purpose (Why We Exist)

◼ Define the core reason your organization exists.

◼ Focus on the impact you want to have on

customers, society, or the industry.

2. Aspiration (What We Want to Achieve)
◼ Articulate your long-term goals and ambitions

◼ Think about where your organization will be in

5, 10, or 20 years.
 CATEGORIES OF CRAFTING
VISION STATEMENT (continued)

3. Values (What We Stand For)

◼ Reflect on the principles and beliefs that guide

your organization
◼ Highlight ethical, cultural, or operational values.
4. Innovation (How We Will Lead)
◼ Emphasize your commitment to innovation and

staying ahead of the industry trends

◼ Show how you will adapt to changes and

leverage new technologies.

 CATEGORIES OF CRAFTING
VISION STATEMENT (continued)

5. Stakeholder Focus (Who We Serve)

◼ Identify the primary stakeholders you aim to

serve (e.g. customers, employees,

communities).
◼ Show your vision benefits to them.

6. Sustainability (How We Protect the Future)

◼ Highlight your commitment to environmental,
social, and economic sustainability.
◼ Show how your vision aligns with global
sustainability goals.
 CATEGORIES OF CRAFTING
VISION STATEMENT (continued)

7. Differentiation (What Makes Us Unique)

◼ Communicate what sets your organization apart

from competitors.
◼ Focus on your unique strengths or value
proposition.
8. Global or Local Impact (Scope of Influence)
◼ Define the scale of your vision-whether it’s

local, national, or global.

 CATEGORIES OF CRAFTING
VISION STATEMENT (continued)

9. Emotional Connection (How We Inspire)

◼ Use language that evokes emotion and inspires

stakeholders.
◼ Make the vision relatable and motivating.
10. Measurability (How We Track Progress)
◼ While not always explicit, a great vision should

imply measurable outcomes.

 How to Use These Categories:
Step 1: Identify which categories are most relevant
to your industry and organization.
Step 2: Brainstorm ideas for each category
Step 3: Combine the most impactful elements into a
concise, inspiring statement.
Step 4: Ensure the vision is aligned with your
organization’s mission values, and strategic
goals.
 Innovation

"To create products that enrich

people’s daily lives and to bring the
best user experience to its customers
through innovative hardware,
software, and services."
 Stakeholder
Focus

"To be Earth's most customer-

centric company, where
customers can find and discover
anything they might want to buy
online."
Differentiation

"To create the most compelling

car company of the 21st century
by driving the world’s transition
to electric vehicles."
 "To help people around the
world save money and live
better."

Purpose
Question:
Present your Vision and identity in what
category? Explain
MISSION
◼ What is our purpose?
◼ Describes current state
◼ Timeline is 3-5 Years
◼ Builds on our distinctive competencies
◼ Tends to focus on Core Business
 CATEGORIES OF CRAFTING
MISSION STATEMENT

1. Customer-Centric
These focus on serving the needs and desires of
customers. They emphasize customer satisfaction,
value, and experience.

Example : Starbucks

"To inspire and nurture the human spirit – one

person, one cup, and one neighborhood at a time."
 CATEGORIES OF CRAFTING
MISSION STATEMENT

2. Product or Service-Centric
These highlight the company's commitment to
delivering high-quality products or services. They
often emphasize innovation, excellence, or
uniqueness.

Example : Nike

"To bring inspiration and innovation to every athlete

in the world."
 CATEGORIES OF CRAFTING
MISSION STATEMENT
3. Socially Responsible
These focus on making a positive impact on
society, the environment, or the world. They often
emphasize sustainability, ethics, or community
well-being.

Example : Human Nature

To passionately champion the Philippines by creating

genuinely natural, sustainable products that uplift
lives, empower communities, and protect our shared
environment.
 CATEGORIES OF CRAFTING
MISSION STATEMENT

4. Employee-Centric
These prioritize the well-being, growth, and
empowerment of employees. They often
emphasize creating a positive workplace culture.

Example : Google

"To create the happiest, most productive

workplace in the world."
 CATEGORIES OF CRAFTING
MISSION STATEMENT

5. Market or Industry-Leading
These focus on being the best in a specific
industry or market. They emphasize leadership,
innovation, and dominance.

Example : Microsoft

"A computer on every desk and in every

home."
 CATEGORIES OF CRAFTING
MISSION STATEMENT

6. Value-Driven
These emphasize the core values of the company,
such as integrity, quality, or affordability. They
often reflect the company's philosophy or
principles.

Example : Costco

"To continually provide our members with quality

goods and services at the lowest possible prices."
 CATEGORIES OF CRAFTING
MISSION STATEMENT

7. Visionary or Aspirational
These focus on long-term goals and aspirations,
often aiming to inspire employees and
stakeholders. They emphasize a bold, future-
oriented vision.

Example : SpaceX

"To make life multiplanetary."

 CATEGORIES OF CRAFTING
MISSION STATEMENT
8. Operational
These focus on the company's day-to-day
operations and how they deliver value. They often
emphasize efficiency, processes, or specific
business practices.

Example : FedEx

"To produce superior financial returns for

shareholders by providing high value-added logistics,
transportation, and related business services."
 CATEGORIES OF CRAFTING
MISSION STATEMENT
9. Community-Oriented
These focus on serving a specific community,
region, or group of people. They emphasize local
impact and relationships.

Example : Non-Profit

"To empower underserved communities through

education and resources."
 CATEGORIES OF CRAFTING
MISSION STATEMENT
10. Profit-Driven
These focus on financial success and delivering
value to shareholders. While less common today,
they emphasize profitability and growth.

Example : Early Corporate

"To maximize shareholder value."

VALUES
◼ Guiding Principles
◼ Help establish Culture
◼ Part of Preserving the Core
◼ Core Ideology
Value Examples
P – Professionalism
R – Respect
I – Integrity
D – Discipline
E - Excellence
 Strategic Issues
• External Issues
o Changes in the Market – new competitors,
changing customer preferences, new
technology, etc.
o Economic Conditions – supply chain
disruptions, pandemic, etc.
o Social Trends – growing concerns about
sustainability
o Regulatory Changes – new laws
 Strategic Issues
• Internal Issues
o Financial Resources– investments in new
products, technology, etc.
o Human Resources– attract, retain, develop
employees.
o Technology– source of competitive
advantage
o Culture – support the strategy goals
o Organizational Structure – significant impact
on company’s performance
 Dimensions of Strategic Decisions

• Strategic Issues require Top-

management decisions.
• Strategic Issues involve the allocations
of large amount of company resources.
• Strategic Issues are likely to Have a
Significant Impact on the Long-term
Prosperity of the firm.
 Dimensions of Strategic Decisions

• Strategic Issues are Future Oriented.

• Strategic Issues Usually have Major
Multifunctional or Multibusiness
Consequences.
• Strategic Issues Necessitate
Considering Factors in the Firm’s
External Environment.
 3 Levels of Strategy
• Corporate Level:
– Composed of members of BOD’s, Directors, and
CEO’s.
– Responsible for financial/non-financial performance.
E.g. corporate image and social responsibility.
– Generally determine the business in which the
company should be involved.
– Identify distinctive competitiveness or competencies
by adopting portfolio approach.
– Orientations at the corporate level reflect the concern
of stockholders and society at large.
 3 Levels of Strategy

• Business Level:
– Composed of business unit heads.
– Translate general statements of directions and
intent to concrete functional objectives and
strategies.
– Determine the basis of competition on selected
market.
 Levels of Strategy (contd..)
• Functional Level:
– Composed of managers of product, geographic, and functional
areas
– Develop annual objective and short-term strategies in such
areas.
– Have greatest responsibility in implementing and executing
company’s strategic plans.
– Corporate level emphasizes on “doing the right things” whereas
functional level emphasize on “doing things right.”
– Addresses ‘efficiency’ and effectiveness of functional tasks.
– Directly addresses the efficiency and effectiveness of production
and marketing systems, the quality and extent of customer
service, and the success of particular products and services in
increasing the market share.
 Strategic Decisions Must
Consider the ff:
• Customer: Creating attractive products
and services that customers will pay
enough for
• Company: Optimizing the resources and
capabilities to add value
• Competitor: Anticipating and managing
potential competitive responses and their
implications
Strategic Decisions is often:

• Are complex and/or messy

• Are made in situations of uncertainty
• Affect operational decisions
• Involve considerable change
 End

Any Questions