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UNIVERSITY OF MINDANAO Tagum College

CBM 121-STRATEGIC MANAGEMENT BIG PICTURE A: A-D Activities

Name of Teacher: Ma’am Imelda V. Isaal Name of Student: Japhen Shem G. Ines

BIG PICTURE A

A. Introduce and discuss the basic concept of Strategic Management ASSIGNMENT EXERCISE 1 1. The components of strategic management.  Purpose  Situation Analysis  Strategy  Implementation 2. Perspective of strategy.  External Market Positioning  Internal Strategic Resources 3. Forces that drives change.  Political  Economic  Social  Technological ASSIGNMENT EXERCISE 2 1. KPI: Key Performance Indicator 2. POSDICON: Planning, Organizing, Staffing, Directing, Controlling 3. PDCA: Plan, Do, Check, Act 4. POST: Purpose, Objectives, Strategy, Tactics RESEARCH EXERCISE 1 1. What do you think is the comparative/competitive advantage of McDonald’s corporation which makes it a leading fast food chain worldwide (use APA format 6th edition in proper citation and referencing)? Discuss. McDonald’s has been considered to be the most competent fast food chain among others globally as it expands its operation in more than 100 countries and equipped itself with business strategies that are definitely became its competitive advantage among all fast food chains in the world.

The restaurant does not operate having low quality benefits of resources like the food it offer in the menu that has greatly attracted people especially those who are health conscious for it provides nutritional value so they can select a preferred menu according to their nutritional needs (Vignali, Vrontis, & Vranecevic, 2003). In addition, Pratap (2019) posited that a large menu became a source of distinct advantage of the fast food chain which is the most favorite of the consumers from all generations. According to McDonald’s Corporation’s Company Report (2016), McDonald’s has made its product and service standardization even before, considering also the local tastes and preferences. Its products’ prices are based with its corresponding quality, has a high customer service satisfaction, and universal and consistent taste of food which are also the reasons of having consumer loyalty. Moreover, its advertising technique drives the restaurant to satisfy customers as it distinguishes what clients require and endeavoring. It is indeed intelligent in a way that the corporation utilizes cost leadership and differentiation before and during the operation of the business because it is said that the business will not progress when the stakeholders have no learning regarding the area of society and tastes, therefore, McDonald’s really had undergone different strategies relating to a global strategy called the Plan to Win giving its best to operate with accordance to 5P’s; People, Products, Place, Price, and Promotion to achieve its goal which is to be the customer’s favorite place across the globe (Ahmed, 2016). 2.

Identify another international companies that has clear competitive

advantage over others. Provide an example about its edge (use APA format 6th edition in proper citation and referencing).  Coca-Cola - Comprehensive distribution system that is difficult for other companies to acquire over the years.  Colgate-Palmolive - Pricing power that gain consumer loyalty over a long period of time.  Starbucks - Strong market position and global brand recognition over the years.  Apple Inc. - Strong unique differentiation of products particularly operation system compared to its competitors.

REFERENCES Ahmed, R. R. (2016). Strategic Marketing Plan for McDonald’s 2016. doi:10.13140/RG.2.1.3090.4722 Competitive Advantage of Coca Cola. (2018). Retrieved from: https://www.competitiveadvantageanalysis.com/competitiveadvantage-of-coca-cola/ Geereddy, N. (2013). Strategic analysis of Starbucks Corporation. Dow’s Bid for Rohm and Hass. Retrieved from: https://scholar.harvard.edu/files/nithingeereddy/files/starbucks_case_a nalysis.pdf Colgate-Palmolive Company. (2020). Retrieved from :https://www.colgatepalmolive.com/en-us/corevalues/sustainability/performance Jhonson, K., Li, Y., Phan, H., Singer, J., & Trinh, H. (2012). The Innovative success that is Apple, Inc. Marshall Digital Scholar. Retrieved from: https://mds.marshall.edu/cgi/viewcontent.cgi? referer=https://www.google.com/&httpsredir=1&article=1420&context= etd/> McDonald’s Corporation Company Report. (2016). Retrieved from: https://www.academia.edu/37089821/McDonalds_Corporation Vignali, C., Vranecevic, T., and Vrontis, D. (2003). Marketing Planning. Analysis, Strategy and Tactics, London: Foxwell and Davies. Retrieved from:https://www.essayyard.co.uk/pdf/Business_Environmental_Analy sis. pdf Pratap, A. (2019). McDonald’s sources of competitive advantage. Retrieved from: https://notesmatic.com/2018/12/mcdonalds-sources-ofcompetitive-advantage/

BIG PICTURE A

B. Identify the importance of setting a company vision, mission, and values QUIZ EXERCISE 1. Write down the answers in the space provided (10 points). Organizational Culture 1. Refers to a pervasive and powerful in its influence, so senior managers should be aware and manage its effects for strategic management – or else they are likely to find that culture will manage them. Jim Collins 2. The author of the book Good to Great who argues that the best companies sustain their position by preserving their core values and purpose,while their strategy and operating practices continuously adapt to change. Values Statement 3. A statement documents the expected collective norms and standards of behaviour for an organization’s managers and workforce. Corporate Social Responsibility 4. Involves the joint pursuit of profit, good citizenship, and setting a good example by achieving high standards of business morality, especially in relation to practices in the developing world and the environment. Mission Statement 5. This explains why an organization exists. QUIZ EXERCISE 2 1. In your own opinion, can organizational culture be changed? Justify your answer. In my own opinion, organizational culture can be changed whenever there is a sudden changes with people in an organization particularly on their behaviors or how they operate if changes in an organizational structure or management system happen knowing that culture is also built by the people who run the business. However, I think it will not be directly changed because it takes time to adjust if ever there are new premises a business have, thus, organizational culture that people used to will really be modified.

BIG PICTURE A

C. Analyze the external environment through the forces that may prove beneficial or detrimental to an organization

QUIZ EXERCISE 3. Write TRUE if the statement is correct and FALSE if otherwise. FALSE 1. External environment is controllable in nature which means the company can easily adjust to any changes cause by the forces. TRUE 2. The PESTEL framework comprises six categories, it is important to use it as an integrated, not compartmentalized view of trends and changes. FALSE 3. Political trends include resource use and prices, interest rates, disposal income, economic growth, inflation, and productivity. FALSE 4. PESTEL analysis is primarily about monitoring and reviewing shorter-term trends, but there are also single events that cannot easily be foreseen. FALSE 5. Maturity stage in industry life cycle is the time when first movers become well established and take dominant positions in their industries.

RESEARCH EXERCISE 2. 1. How do external forces affect the production and operations of a certain business? Cite example of a company who undergone major changes in their operation which are affected by the PESTEL framework (use APA format 6th edition in proper citation and referencing)? Starbucks Company is continuously growing over a long period of time until now and renowned as an international brand which offers quality coffees to its consumers. It is great when it comes to making business sustainable and innovated. Through external forces such as political, economic, social, technological, and legal forces, the company have made to present opportunities and being cautiously aware of the possible threats that may arise. In terms of:

POLITICAL FORCE Starbucks is a law abided company given that it follows political laws and regulations to have a provision to operate and expand its business across the globe. It has an accessible sources of raw materials as the company enters in various countries like Costa Rica, Tanzania, and Rwanda. As many countries have upgraded their infrastructures, this pushes Starbucks to seek for more source of resources and market. However, along with the opportunities it is also facing threat like the uncertainty to expand the business especially in the developing countries due to bureaucratic red tape. Nevertheless, the impact of political force drives Starbucks to continuously grow and succeed.

ECONOMIC FORCE Since the world has many developing countries with high economic growth rate and declining unemployment rates have led Starbucks in gaining more revenues and resources. However, when the demand for resources increases the cost for purchasing it tends to increase also which gives company to spend huge amount of money in order to get the needed ingredients. SOCIAL FORCE People tend to prefer coffee according to their preferences and that drives Starbucks to offer specialty coffees for the customers especially to those health-conscious ones. The company has the opportunity to increase its revenue due to the culture of drinking coffee. It also gains customer loyalty due to providing consumers a well-friendly environment that they like or love as they sip coffee. TECHNOLOGICAL FORCE Due to the emergent advances of technology, Starbucks provides people with convenient way to order like creating applications on any software made by Apple or Android as its alliances whenever they cannot afford to go to any franchises the company has. Consumers are now able to use their phones as a card through scanning QR code to pay bills or in they can easily pay online.

Other than that, the company also improved their devices for coffees and installed WiFi for costumer’s use only providing them a more friendly and satisfying environment. ENVIRONMENTAL FORCE The environmental force has greatly influenced the company in offering a recyclable packaging as it is committed to a role of environmental leadership in its every aspect. For anyone who brings Starbucks cups in a franchised store of the company will be having RM2 off. The company has also provided local farmers with economical and sustainable prices for their coffee as an extra income for what they supply.

LEGAL FORCE The company ensures every customer that the offered product is had undergone safety regulations and the ingredients also as these are from genetically modified organisms (GMO). However, manpower is also affected by legal force as it increases employment regulations causing the company to allow its cash to flow concerning human resources but this is not a big deal for Starbucks as long it continues to grow and achieve its goal.

REFERENCES: Bin Mohd Isa, M., Chok Yee Swan, G., & Siddiq, M.S.B. (2017). The external environment and its effect on strategic marketing planning: A case of Starbucks in Malaysia. International Journal of Marketing and Management Research, 8(1), 36-42. Retrieved from: https://www.academia.edu/31623210/the_external_environment_and_i ts_effect_on_strategic_marketing_planning_a_case_of_starbucks_mal aysia Pestle

Analysis of Starbucks. (2015). Retrieved https://pestleanalysis.com/pestle-analysis-of-starbucks/

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BIG PICTURE A

D. Analyze an organization’s internal environment and how it was used to maintain a competitive advantage ASSIGNMENT EXERCISE 3. Spell out the acronym below. 1. RBV: Resource-Based View 2. VRIO: Valuable, Rare, Inimitable, Organizable 3. TQM: Total Quality Management 4. PDCA: Plan, Do, Check, Act QUIZ EXERCISE 4. Write TRUE if the statement is correct and FALSE if otherwise. FALSE 1. Internal environment is uncontrollable in nature which means company does not have control over it. FALSE 2. The very essence of bench marking is to copy the practices from other company. TRUE 3. Organizational learning has the same concept with Learning Organization. TRUE 4. Double feedback is mostly associated with periodic reviews of strategy. TRUE 5. Top management is primary responsible in implementing TQM....