QMSDI

Strategic Planning
Feb. 13, 2016
Quantum Head
Office
 Contents

1. Tasks of Strategic Planning

2. Factors Shaping the Choice of Strategy

3. Tests of Best Strategy

4. Analyzing Industry Environment and Crafting

Competitive Strategy

5. Strategy Implementation and Execution

 Five Tasks of
Strategic Planning
 Tasks of Strategic Planning

Setting objectives &

Forming a
Core Values In addition
Strategic Zeros to Absences & Crafting a strategy
Tardiness, AWOL, Low
Vision & to achieve the
Efficiency, Resignation &
Mission Others desired outcomes

Implementing and executing
the chosen strategy to wit:
1. AWOL, RESIGNATION, -
READY OF WORKERS
REPLACEMENT & ONE
MONTH NOTICE
BEFORE RESIGNATION
2.
Evaluating
performance, closely
monitoring, counseling
Low efficiency ,absences
Tardiness & new
developments, and
initiating corrective
adjustments.
 Forming a Strategic Vision & Mission

At a very early stage the company set up the

Forming a
strategy-making process, of Vision and Mission
strategic
need to pose a set of questions:
Vision &
"What is our Vision & Mission for the
Mission
company EXCELLENCE IN HUMAN RESOURCES
AS SERVICE PROVIDER MISSION QMSDI
CONNECTS TO THE MANUFACTURING
STAKEHOLDERS AND OWNERS IN PARTNERSHIP FOR
HUMAN RESOURCES TOWARDS GROWTH &
DEVELOPMENT where should the company be headed,
what should its future technology-product-customer focus
be, what kind of enterprise do we want to become, what
industry standing do we want to achieve in five years?"
 Setting Quality Policy
The purpose of setting Quality Policy is to convert managerial
statements of strategic vision and business mission into specific
Setting
performance targets results and outcomes the organization wants to
Company achieve.
Quality Policy Setting Quality Policy and then measuring whether they are achieved
or not help managers track an organization's progress.

QUALITY POLICY :
As a service provider, we pursue excellence to satisfy our clients and customers
by providing quality human resources.

We achieve this:

Provide effective and efficient services.

Operating within the standard requirement with Department of Labor and

Employment (DOLE) and other statutory government agencies.

Improve staff training and empowering the human resources

Assuring continual improvement of services

 QMSDI CORE VALUES
QUALITY We embody the highest and most ethical standards. We are
motivated to be the best in order to achieve the best results, and we
relentlessly pursue excellence to obtain higher results.

UNDERSTANDING The Comprehension and fulfillment of our

customers needs and compliance to existing laws, rules and regulations.
SETTING OF COMPANY
CORE VALUES AWARENESS We Always, in the ready mode to learn and be
aware of the latest requirements and challenges in our business.

NURTURING We believe that Good values enhance a better future.

TIMELINESS Punctuality and accuracy in meeting deadlines set

by our customers and stake holders.

UNIQUENESS We value of existence. If isnt unique, we can not succeed.

MANAGING FOR INNOVATION & IMPROVEMENT

Our Readiness to respond to changes at all times, enhancing and providing
new services to our customers.
 Strategic Objectives in Four
Perspectives
Enhance Long-term
Shareholder Value

Improve Increase Revenue Growth

Cost Efficiency
Financial

Build High Expand Valued

Performance Services Market Share as Service Our Company Name
Provider

Customer

Achieve Drive Demand Manage Dramatic Implement

Operational through Customer Growth through Quality of Services
Excellence Relation Management Innovation &
Environmental
Internal Process Policy

Learning & Growth

Develop Strategic Build Learning Expand Capabilities with

Competencies Culture Technology
 Crafting Strategy
A company's strategy represents management's
Crafting a answers to such fundamental business questions
strategy to as :
achieve the whether to concentrate on a single business or build a
desired diversified group of businesses
whether to cater to a broad range of customers or focus on a
outcomes
particular market niche. Mariveles Alone or?
whether to develop & market additional principal? Any
prospect? Manila. & Clark.
how to respond to the principal monitoring of workers
how big a geographic market in Mariveles, Bataan to try to
cover? How many agencies? How many percent QMDSI got at
this time?
how to react to newly emerging market and competitive
conditions? Any Ideas
how to grow the enterprise over the long term. Ideas
 What Does a Company's Strategy Consist Of?

Company strategies concern how:

How to grow the business particularly in Mariveles , Bataan?
how to satisfy customers/principal? Existing Boast Inc.
Crafting a How to out compete rivals?
How to respond to changing market conditions?
strategy to How to manage each functional piece of the business and Develop needed

achieve the organizational capabilities?

how to achieve strategic and financial objectives?
desired Adopt the principal forms at the moment , reviewed? Introducing new forms and
compare to the existing forms?
outcomes
Poor monitoring of low efficiency, tardiness and absences, AWOL & Resignation?
Improve and prepare the procedure
Reviewed the existing Job descriptions of the four (4) HR coordinators
Planning for the resigned, awol & transfer of workers in there respective
replacement to avoid no production/low production in the factory
Procedure for the OT of our HR Coordinators (existing memo)
Introducing of the new vinyl ID to all regular employees cost Php
150.00/applicant.
Deduction of Php 10.00 for the bank charge of downloading of payroll to
respective atm account which was charge to our account at this time.
Constant follow up everyday the workers inside the factory and ask assistance
from supervisor(s) , line leaders, QC asking any existing problems to our workers
. Improvement
Memo for the PEME and other medical concerns of our workers of Dra. San
Pedro
 Strategy Implementation and
Execution

Strategy implementation concerns the managerial exercise of putting a freshly

chosen strategy into place. Constant monitoring to every departments of the
factory workers

Implementing Strategy execution deals with the managerial exercise of supervising the ongoing

and executing the pursuit of strategy, making it work, and showing measurable progress in achieving

chosen strategy the targeted results in coordination with the HR Coordinators in the factory.
HR Coordinators well define job descriptions
Memo for Mr. Sucgang and Ms. De Guzman to there level of functions inside the
factory for the close monitoring and teach all the HR coordinators on there daily
task and functions . They will handle also, grievance procedures and counseling to
our factory workers. Need for improvement .
For the re-hired factory workers need to undergo workers orientation program
and is a must.
After a month of the said implementation. HR Coordinators shall prepare the
monthly reporting on AWOL, Absences, Resign and replacement of workers , low
efficiency and other work related issues.
 Strategy Evaluation and Monitoring

Evaluating It is management's duty to stay on top of the

performance,
company's situation, deciding whether things are
monitoring new
going well internally, and monitoring outside
developments,
and initiating developments closely.
corrective Marginal performance or too little progress, as well
adjustments as important new external circumstances, will
require corrective actions and adjustments.
Seminar/meeting for the evaluation and monitoring
to follow every week for closely monitoring to reach
our objectives, if any.
Our target would be three months before our
service agreement ends on June 1, 2016.
 Strategy Hierarchy

Corporate
Strategy

Business
Strategies Strategy hierarchy
for
a diversified
Functional Strategies (R&D, company
Marketing, HR, Finance, etc.

Operating Strategies ( HR in
the factories , departments
within functional areas)
 Strategy Hierarchy

Business
Corporate
Strategies
Strategy hierarchy for
Functional Strategies (R&D, a corporation
Marketing, Manufacturing, HR,
Finance, etc.

Operating Strategies ( Other

places, plants, departments
within functional areas)
 Strategy Hierarchy

Corporate Corporate Corporate

Strategic Vision Strategic Objectives Strategic Strategy

Business-Level Business-Level Business-Level

Strategic Vision Strategic Objectives Strategy

Functional Functional Functional

Areas Visions Areas Objectives Areas Strategies

Operating Unit Visions Operating Unit Operating Unit

Objectives Strategies
 Factors Shaping
the Choice of Strategy
 Factors Shaping the Choice of
Strategy
External Factors

Economic, Competitive Company

societal, political, conditions and opportunity and
and government industry threat
regulations attractiveness

The mix of considerations that determines

a companys strategic situation

Company strengths Personal ambitions

Shared values and
and weaknesses, and business
company culture
competencies and philosophies of key
capabilities executives

Internal Factors
 Factors Shaping the Choice of
Strategy
Economic, What an enterprise can and cannot do
societal, political,
and government strategy wise is always constrained by
regulations what is legal, by what complies with
government policies and regulatory
requirements (SSS, PAGIBIG,
PHILHEALTH , DOLE & TESDA ), by
what is considered ethical, and by what
is in accord with societal expectations
and the standards of good social and
community.
 Factors Shaping the Choice of
Strategy
Competitive An industry's competitive conditions and
conditions and
industry
overall attractiveness are big strategy-
attractiveness determining factors.
A company's strategy has to be tailored
to the nature and mix of competitive
factors in playprice, product quality,
performance features, service,
warranties, and so on.
 Factors Shaping the Choice of
Strategy
Company A company's strategy needs to be
opportunity and deliberately aimed at capturing its best
threat
growth opportunities, especially the ones
that hold the most promise for building
sustainable competitive advantage and
enhancing profitability.
Strategy should also provide a defense
against external threats to the company's
well-being and future performance.
 Factors Shaping the Choice of
Strategy
Company One of the most pivotal strategy-shaping
strengths and
weaknesses, internal considerations is whether a
competencies and company has or can acquire the resources,
capabilities
competencies, and capabilities needed to
execute a strategy proficiently.
The best path to competitive advantage is
found where a firm has competitively
valuable resources and competencies, where
rivals can't develop comparable capabilities
except at high cost or over an extended
period of time.
 Factors Shaping the Choice of
Strategy
Personal Managers do not dispassionately assess what
ambitions and
business strategic course to steer.
philosophies of Their choices are typically influenced by
key executives
their own vision of how to compete and how
to position the enterprise and by what image
and standing they want the company to
have.
 Factors Shaping the Choice of
Strategy
An organization's policies, practices, Core
Shared values
and company Values , traditions, philosophical beliefs,
culture and ways of doing things combine to create
a distinctive culture.
The stronger a company's culture, the more
that culture is likely to shape the company's
strategic actions, sometimes even
dominating the choice of strategic moves.
 Strategic Analysis and Strategic
Choices
Analyzing strategically
about industry and
competitive conditions.
The actual Situation of
the HR operations in the
factory and as a whole of What strategic options
QMSDI does the company
What is the best strategy?
realistically have?
Prepare the weekly and
Paradigm shift , Applies
monthly reporting and find
the monitoring and out the improvement. Hire
Analyzing strategically establish rapport to the professional and experts in
about a companys own HR of principal and service provider.
situation. The actual management for
findings, observations improvement
and recommended
improvements for
HR/AGM or
management of
principal .
 Strategic Analysis and Strategic
Choices
The Key Questions
What are the industrys dominant economic features? Factory
workers in Mariveles, Hermosa and have expansion.
What is causing the industrys competitive structure and business
Analyzing environment to change? Re-engineering in handling the HR.
strategically Which companies are in the strongest/weakest positions? We
about industry have existing system but be reviewed and improve. We are working
the ISO 9001:2015
and competitive
What strategic moves are rivals likely to make next? Do the best
conditions improvements . Our existing principal will recommend to there
group of companies, for what we are doing by helping the principal
operations more effectively
What are the key factors for competitive success? Always do the
right thing.
Is the industry attractive and what are the prospects for above-
average profitability? Mediocre add more values to our services
 Strategic Analysis and Strategic
Choices
The Key Questions
How well is the companys present strategy working? In dealing
identified problems such as AWOL, tardiness & absences. Proper
monitoring
Analyzing What are the companys strengths, weaknesses, opportunities, and
strategically threats? Without actions to the present identified problems. Doing
the right thing and monitoring.
about a
Are the companys prices and costs competitive? Yes. We have to
companys own follow the flow with the price with our agencies.
situation How strong is the companys competitive position? We are equipped
with good people. HR coordinators must listen to management
recommendations for improvement.
What strategic issues does the company face? Not doing the
improvement in the operations of the company. We have to observe,
listen and do the actions to whatever identified problems and
eliminate the risk factor and the threats of the situations.
 Analyzing Industry Environment
and Designing Competitive Strategy
 Buyer Power

1. Bargaining leverage

Buyer power 2. Buyer volume

is influenced by 3. Buyer information
the following 4. Brand identity
factors :
5. Price sensitivity
6. Threat of backward integration
7. Product differentiation
8. Buyer concentration vs. industry
9. Substitutes available
10. Buyers' incentives
 Sample Form for an Industry and Competitive
Analysis Summary
Dominant Economic Characteristics of the Industry Environment (market size and growth rate,
geographic scope, number and sizes of service provider(s), pace of technological change and
innovation, scale economies, experience curve effects, capital requirements, and so on)
Competitive Analysis
Rivalry among competing Service providers
Threat of potential entry
Track Record
Capacity to provide workers in timely manner

Competitive Position of Major Companies/ Strategic Groups.

Those that are favorably positioned, and why
Those that are unfavorably positioned, and why
Competitor Analysis
Strategic approaches/predicated moves of key competitors
Whom to watch, and why
Industry Key Success Factors : Quality of workers deployment

Industry Prospects and Overall Attractiveness

Factors making the industry attractive
Factors making the industry unattractive
Special industry issues/problems
 Generic Competitive Strategies
Appealing to a broad spectrum of customers
Overall Low Cost based on being the overall low-cost provider
Leadership Strategy of product and service. To implement
seminars on leadership with values to all our
workers .

Broad A differentiation strategy calls for the

Differentiation development of a product or service that offers
Strategy unique attributes that are valued by customers
and that customers perceive to be better than
or different from the products of the
competition . Improve quality services the
increase of income follows.
 Generic Competitive Strategies

Best Cost Strategy Giving customers more value for the

money by incorporating good-to-excellent
product attributes at a lower cost than
rivals
The target is to have the lowest (best)
costs and prices compared to rivals
offering products with comparable
upscale attributes
 Generic Strategies and Industry Forces
Industry Generic Strategies
Force Cost Leadership Differentiation Focus
Ability to cut price in Focusing develops core
Entry Customer loyalty can
Barriers
retaliation deters potential competencies that can act as
discourage potential entrants.
entrants. an entry barrier.
Large buyers have less power Large buyers have less power
Buyer Ability to offer lower price to
Power
to negotiate because of few to negotiate because of few
powerful buyers.
close alternatives. alternatives.
Suppliers have power because
of low volumes, but a
Supplier Better insulated from Better able to pass on supplier
Power
differentiation-focused firm is
powerful suppliers. price increases to customers.
better able to pass on supplier
price increases.
Customer's become attached Specialized products & core
Threat of Can use low price to defend
Substitutes
to differentiating attributes, competency protect against
against substitutes.
reducing threat of substitutes. substitutes.
Rivals cannot meet
Better able to compete on Brand loyalty to keep
Rivalry differentiation-focused
price. customers from rivals.
customer needs.
Strategy Implementation
and Execution
Strategy Implementation
Building a capable Linking budget to strategy
organization

Designing strategy- Establishing strategy-

supportive reward system supportive policies and
Effective procedures

Creating a strategy- Strategy Instituting best practices and

supportive corporate Execution commitment to continuous
culture improvement

Exerting strategic Installing information system

leadership to support strategy execution

HR & Organization System Factor

Development Factor
 Building a Capable Organization

Staffing the organization

Putting together a strong management team
Recruiting and retaining talented employees
Hire experience(d ) workers especially at HR
Building a
capable Building Core Competencies and Capabilities
Developing competence/capability portfolio
organization suited to current strategy
Updating and reshaping the portfolio as external
conditions and strategy change

Structuring the Organization and Work Effort

Organizing business function and processes,
value chain activities, and decision making
 Strategy-supportive Reward System

Strategy-supportive motivational practices

Designing
and reward systems are powerful
strategy-
management tools for gaining employee
supportive buy-in and commitment.
reward
The key to creating a reward system that
system
promotes good strategy execution is to
make strategically relevant measures of
performance the dominating basis for
designing incentives, evaluating individual
and group efforts, and handing out rewards.
 Strategy-supportive Corporate Culture

Creating a Building a strategy-supportive culture is

important to successful strategy execution
strategy-
because it produces a work climate and
supportive
organizational esprit de corps that thrive on
corporate
meeting performance targets and being
culture part of a winning effort.
 Strategic Leadership
Strategic leaders encourage people to be
Exerting
innovative in order to keep the
strategic
organization responsive to changing
leadership
conditions, alert to new opportunities,
and anxious to pursue fresh initiatives.

Strategic leaders also actively push

corrective actions to improve strategy
execution and overall strategic
performance.
 Linking Budget to Strategy
Reworking the budget to make it more
Linking
strategy-supportive is a crucial part of the
budget to
implementation process because every
strategy
organization unit needs to have the people,
equipment, facilities, and other resources
to carry out its part of the strategic plan.
 Strategy-supportive Policy
Prescribing new or freshly revised policies
Establishing
and operating procedures aids the task of
strategy-
implementation
supportive
(1) by promoting consistency in how
policies and
particular strategy-critical activities are
procedures
performed in geographically scattered
operating units and

(2) by helping to create a strategy-

supportive work climate and corporate
culture.
 Continuous Improvement
Competent strategy execution entails
Instituting
visible, unyielding managerial commitment
best practices
to best practices and continuous
and
improvement.
commitment
Benchmarking, the discovery and adoption
to continuous
of best practices, and six sigma initiatives
improvement
all aim at improved efficiency, better
product/services , and greater customer
satisfaction.
 Information Support System

Company strategies cant be implemented

Installing
well without a number of support system to
information
carry on business operations.
system to
Well-conceived, state-of-the-art support
support
system not only facilitate better strategy
strategy
execution but can also strengthen
execution
organizational capabilities enough to
provide a competitive edge over rivals.
 Recommended Further Readings

1. Arthur Thompson and A.J. Strickland III, Strategic Management :

Concept and Cases, McGraw-Hill

2. Michael Porter, Competitive Strategy : Techniques for Analyzing

Industries and Competitors, Free Press
THANK YOU & GOD BLESS
US!!!!