In the second module, the external and internal analyses from Part I become the raw material for strategy formulation. The student leader is seen as a change master leading corporate transformation. Students do the more classic corporate planning functions, as well as simulate the running of companies where functions must be integrated. This module is subdivided into four stages: The Leader as Scholar, Senser and Seer; The Leader as Warrior King and Philosopher King; The Leader as Magician and Entrepreneur; and The Leader as Maestro and Mentor.

The first stage, The Leader as Scholar, Senser and Seer, hones the students' skills in a scholarly manner with the use of critical systems thinking. Students identify the significant and essential factors that determine desired outcomes by using critical thinking skills. On the other hand, systems thinking allows the student to connect, interconnect, and disconnect these factors in a complex situation. The students gain the ability to sense people and the environment, and with the combined ability of the Scholar and Senser, the ability to forecast or predict what happens to the industries they are in.

The second stage pertains to the Leader as Warrior King and Philosopher King. This module develops the students skills as Strategist and Strategy Implementer (Warrior King), and as Articulator and Embodiment of Corporate Culture, Values, Principles, and Beliefs (Philosopher King). The strategist develops skills related to formulating strategies as well as Strategic Human Resources, Strategic Operations Management, Strategic Marketing, and Strategic Finance. The Articulator, on the other hand, focuses on Nurturing the Corporate Culture, Management by Values, and Principled-Centered Leadership.

The third stage is on the Leader as Magician and Entrepreneur. The student develops skills relating to the Management of Change, the Management of Technology and Innovation, and the Management of Crisis and Conflict. The student also develops his skills in Creative Problem Solving, Entrepreneurship and Opportunity Finding, as well as Building the Entrepreneurial Organization.

The fourth stage is the Leader as a Maestro and Mentor. The student receives in-depth training on cross-functional management skills of planning, organizing, developing, directing, staffing, controlling, evaluating, coordinating, budgeting, and rewarding. Organizational Orchestration and Succession and Progression are the other major topics discussed in this module.