STRATEGY FORMULATION

GROUP 2
Egam, Adan May B.
Lascuna, Honey Grace
Pulido, Carrie
Velasco, Carlos
Yugtan, Jeff Lawrence
TOPICS
• Vision/Mission Statements
• The Five Power Ps
• Porter’s Generic Strategies
• Power Strategies
• Adaptive Methods
• Essentials of Potential Strategies
• Growth Strategies
• Balance Scorecard
VISION/MISSION STATEMENTS
THE FIVE POWER Ps
1. Position
2. Power
3. Pace
4. Potential
5. Performance
PORTER’S GENERIC STRATEGIES
• Cost Approach
• Differentiation Approach
• Focus Approach
POWER STRATEGIES
HORIZONTAL INTEGRATION
• The strategy of the company to expand its
business into different products that are similar
to current lines.
VERTICAL INTEGRATION
TWO SUBTYPES:

1. Forward Integration
2. Backward Integration
Forward Integration
• A strategy of a company to control the direct
distribution of its products.
Backward Integration
• A strategy of a company to purchase the
suppliers in order to reduce dependency.
ADAPTIVE METHODS
• Prospector Approach
• Defender Approach
• Analyzer Approach
ESSENTIALS OF POTENTIAL STRATEGIES

• Transferability
• Competitive Dominance
• Uniqueness
• Substitutability
• Durability
GROWTH Products Markets
STRATEGIES

Diversification new new

Market Development existing new

Product Development new existing

Market Penetration existing existing

BALANCED SCORECARD
BALANCED SCORECARD
• Develop by Robert Kaplan and David Norton
• Is a system that measures the organization’s
progress in accomplishing its strategic objective.
• Enables the management to link the perspectives
and how they affect each other.
Four Key Process
1. Developing a clear-cut strategy.
2. Communicating the strategic objectives.
3. Planning Strategies.
4. Monitoring strategic implementation.
Four Basic Processes
1. Financial Perspective.
2. Customer Perspective.
3. Business Process Perspective.
4. Learning and Growth Perspective.