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Strategic Management
“AN OVERVIEW OF STRATEGIC MANAGEMENT”
Windawati, Mahasiswa Magister Management, Universitas Mercu Buana
Prof. DR. Ir. H. Hapzi Ali, Dosen, Pre-MSc, MM, CMA, Dosen Magister Management, Universitas Mercu
Buana
After reading some sources including the modul, ppt, books and articles, allow me to create my writing
related to an overview of strategic management but i’m so sorry I have a limited time to finish it well as you
wish Sir as the time now shows it is already 23.05. I haven’t post the references yet.
Nature and Value of Strategic Management and Strategic Management Process
The definition of Strategic Management
These are several definitions of Strategic Management;
Strategic management is what the the organization do continually that plays an important role to meet its
goal and objectives including its short and long term goals that covers all the processes of planning,
monitoring, analysis and assessment.
Based on the modul given, strategic management can be define as an art and knowledge in determining,
implementing, and evaluating the decisions of cross-functional business of the organization in reaching its
goal as mention by David (2011:5)1
:
“Menurut David (2011:5), manajemen strategis dapat didefinisikan sebagai seni dan pengetahuan dalam
merumuskan, mengimplementasikan, serta mengevaluasi keputusan-keputusan lintas fungsional yang
memampukan sebuah organisasi mencapai tujuannya.”
According to Thomas L Wheelen and J. David Hunger (2008:3), Strategis management is a sequence of
management decisions and actions that determine long term performance of the organization. These would
involve environment analyzing including internal and external environment, formulating long term strategy,
implementing and evaluating the strategy control.
Whereas according to Aimee Heene and Sebastian (2010:9-10), strategic management is a sequence of
managerial processes that are done contunuelly in creating value and ability to transmit and expand its
distribution to stakeholders or others.
There are 5 tasks in strategic management:
1. Vision and mission development
2. Goals or objectives establishment
3. Strategic determining
4. Strategy implementing
5. Evaluating the strategy and orientation
All these processes could help the organization specially the top leaders to analyze what has happen
recently in business environment that could effect the organization existancy. In this case, the leaders of the
organization should aware to the present situation that might affect the position of the organization. They
have to assess all the strategies that they have implemented and find out would they still appropriate to the
present situation.
These statements are in line to what Taufiqurokhman S.Sos, M.Si,2
stated in his book as follow:
“Pengertian umum strategi yaitu suatu proses yang menentukan adanya perencanaan terhadap para top
manajer yang sungguh berarah pada tujuan jangka panjang perusahaan yang disertai dengan penyusunan
akan upaya bagaimana agar mencapai tujuan yang diharapkan. Sementara Pengertian khusus strategi yaitu
suatu tindakan yang bersifat terus-menerus mengalami peningkatan dan dilakukan sesuai dengan sudut
pandang tentang apa yang diinginkan serta diharapkan oleh para konsumen untuk di masa depan. Dengan
strategi ini maka ada yang hampir dimulai dari apa yang selalu untuk bisa terjadi dan bukan yang dimulai
dari apa yang terjadi.”
Afin (2013: 45) stated that strategic management is a way to create and regulate the strategy of an
organization or company so that it can achieve its objectives effectively according to the target and time
determined. That strategy would determine the directions for the next steps or action plans in order to
achieve the organization development. So, in this case we need a serious and thoughtful thoughts to
regulate the strategy.
Meanwhile, Indriyanty (2013:3) defines the strategic management as a fundamental part of organization
strategy that decide the company business that will be involved or left behind. All the strategies used are
intended to synergizing the cross-business unit relations.
Philosophy of Strategic Management
The Strategic Management has focus on:
1. Clear vision and mission
2. Focus on strategy
3. Rapid changes adaptation
Strategic Management Model
Element of Strategic Management
White (2004:612) said that we have to integrate the elementsof strategic management process in
order to reach the organization objectives.
Environment scanning
To be a successful organizations, they should have the ability to have a great or precise decisions that are
related to the matters that emerge around them such as the changing on the customer expectation, fast-
paced innovation, and new technologies. All those things force the organization to do the best strategically
so that they could achieve their goals.
The advantages of Management Strategic
According to Greenley (David, 2011: 25), strategic management provides the following benefits:
a) Enables an organization to be more productive.
b) Enables an organization to direct and influence various activities.
c) Helping organizations to formulate better strategies through the use of approaches to strategy
choices that are more systematic, logical and rational.
d) To achieve understanding and commitment from all managers.
e) Create the opportunity exists that provides space that is able to empower individuals.
The definition of Strategy
Colin white defines the term strategic in its simplest conception strategy as a unifying idea which links
purpose and action. Whereas For de Wit and Meyer (1998) in Colin White (2004:612) stated that strategy is
any course of action to reach the organization’s purpose. Alfred Chandler, the first modern business strategy
theorist, defined the word strategy as ‘the determination of the basic goals, long-term goals and objectives of
the organization, and the adoption of courses of action based on the necessary resources allocated
(Chandler, 1962: 13).
According to Admin (2009), the definition of strategy in general and specifically is as follows:
1. General definition Strategy is the process of determining the plans of top leaders who focus on the
long-term goals of the organization, accompanied by the preparation of a way or effort to achieve
these goals.
2. Special definition Strategy is an incremental action (constantly increasing) and continuously, and is
carried out based on the point of view of what customers expect in the future. Thus, the strategy
almost always starts from what can happen rather than starting from what happened. The
occurrence of the speed of new market innovations and changes in consumer patterns require core
competencies. Companies need to look for core competencies in their business.
Types of Strategy
Based on the modul, strategy can be devided into two types, they are the corporate-level Strategies and
business-level/competitive Strategies, Whereas the areas of functional strategy will cover :
1. Design Strategy
2. Sourcing strategy
3. Supporting strategy
These three strategies are integrated in the strategic process which in the end will come into delivery trategy.
The picture of that areas can be seen in the picture below.
The strategic planning cycle of the organization in reaching the mission can be seen from the picture
below.
Strategy Implementing
In implementing the the strategy David (2011:7) said that strategic implimentation is an action pase of the
strategic management. All the stake holder of the organization should participate in the process taken by the
organization. To reach the goal it needs a high commitment, dicipline, and the willingness to sacrifice. The
leader plays the key role in mativating the employee to take part in gaining the goal. That statement can be
seen in the following statement:
“Menurut David (2011:7), penerapan strategi merupakan tahap aksi dari manajemen strategis. Menerapkan
strategi berarti memobilisasi karyawan dan manajer untuk melaksanakan strategi yang telah dirumuskan.
Sering kali dianggap sebagai tahap yang paling sulit dalam manajemen strategis. Penerapan strategi
membutuhkan disiplin, komitmen, dan pengorbanan personal. Penerapan strategi yang berhasil bergantung
pada kemampuan manajer untuk memotivasi karyawan, yang lebih merupakan seni daripada pengetahuan.”
Strategic management typically involves the processes of :
 Analyzing the internal and external strengths and weaknesses.
 Formulating action plans.
 Executing action plans.
 Evaluating the action plans
The right strategic planning in reaching the goals such as the decesions and action plans that should be
taken by the organization will help the organization to set its short and long term goals. It will also helps the
organization to strengthen its core competencies that finally will help them to support their market share and
to gain competitive advantage.
Model of the Strategic Management Processes
From the picture we can see that there are processes in the model of strategic management which started
from the environment scanning, strategy formulating, then strategy implementation and evaluation and
control as the last process.
SWOT Analysis
To help the organization in reaching its goals effectively, the organization should have one of the important
process in strategic management which we call as a SWOT analysis. As an important element in strategic
management process, it will help the organization to determine its resources and its basic competence.
SWOT analysis will also help the organization to identify its stengths, weaknesses, opportunities and threats
by looking at its internal and external environment. By analyzing these aspects, hopefully it could help the
decesion makers to formulate the right strategies that might impact the organization business in reaching its
goals.
Here is the example of SWOT analysis picture taken from https: //searchcio.techtarget.com/ definition/
strategic-management3
.
References
1. David, 2011. http://library.binus.ac.id/eColls/eThesisdoc/Bab2/2013-2-02232MN%20Bab2001.pdf
, (21 Februari 2018)
2. Taufiqurokhman,Dr, Manajemen Strategik, Fakultas ilmu Sosial dan Ilmu Politik, jakarta, 2016
3. White, Colin, Strategic Management, Palgrave MacMillan, New York, 2004

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Kuis 1, an overview of strategic management

  • 1. Strategic Management “AN OVERVIEW OF STRATEGIC MANAGEMENT” Windawati, Mahasiswa Magister Management, Universitas Mercu Buana Prof. DR. Ir. H. Hapzi Ali, Dosen, Pre-MSc, MM, CMA, Dosen Magister Management, Universitas Mercu Buana After reading some sources including the modul, ppt, books and articles, allow me to create my writing related to an overview of strategic management but i’m so sorry I have a limited time to finish it well as you wish Sir as the time now shows it is already 23.05. I haven’t post the references yet. Nature and Value of Strategic Management and Strategic Management Process The definition of Strategic Management These are several definitions of Strategic Management; Strategic management is what the the organization do continually that plays an important role to meet its goal and objectives including its short and long term goals that covers all the processes of planning, monitoring, analysis and assessment. Based on the modul given, strategic management can be define as an art and knowledge in determining, implementing, and evaluating the decisions of cross-functional business of the organization in reaching its goal as mention by David (2011:5)1 : “Menurut David (2011:5), manajemen strategis dapat didefinisikan sebagai seni dan pengetahuan dalam merumuskan, mengimplementasikan, serta mengevaluasi keputusan-keputusan lintas fungsional yang memampukan sebuah organisasi mencapai tujuannya.” According to Thomas L Wheelen and J. David Hunger (2008:3), Strategis management is a sequence of management decisions and actions that determine long term performance of the organization. These would involve environment analyzing including internal and external environment, formulating long term strategy, implementing and evaluating the strategy control. Whereas according to Aimee Heene and Sebastian (2010:9-10), strategic management is a sequence of managerial processes that are done contunuelly in creating value and ability to transmit and expand its distribution to stakeholders or others. There are 5 tasks in strategic management: 1. Vision and mission development 2. Goals or objectives establishment 3. Strategic determining 4. Strategy implementing 5. Evaluating the strategy and orientation All these processes could help the organization specially the top leaders to analyze what has happen recently in business environment that could effect the organization existancy. In this case, the leaders of the organization should aware to the present situation that might affect the position of the organization. They have to assess all the strategies that they have implemented and find out would they still appropriate to the present situation. These statements are in line to what Taufiqurokhman S.Sos, M.Si,2 stated in his book as follow: “Pengertian umum strategi yaitu suatu proses yang menentukan adanya perencanaan terhadap para top manajer yang sungguh berarah pada tujuan jangka panjang perusahaan yang disertai dengan penyusunan akan upaya bagaimana agar mencapai tujuan yang diharapkan. Sementara Pengertian khusus strategi yaitu suatu tindakan yang bersifat terus-menerus mengalami peningkatan dan dilakukan sesuai dengan sudut pandang tentang apa yang diinginkan serta diharapkan oleh para konsumen untuk di masa depan. Dengan
  • 2. strategi ini maka ada yang hampir dimulai dari apa yang selalu untuk bisa terjadi dan bukan yang dimulai dari apa yang terjadi.” Afin (2013: 45) stated that strategic management is a way to create and regulate the strategy of an organization or company so that it can achieve its objectives effectively according to the target and time determined. That strategy would determine the directions for the next steps or action plans in order to achieve the organization development. So, in this case we need a serious and thoughtful thoughts to regulate the strategy. Meanwhile, Indriyanty (2013:3) defines the strategic management as a fundamental part of organization strategy that decide the company business that will be involved or left behind. All the strategies used are intended to synergizing the cross-business unit relations. Philosophy of Strategic Management The Strategic Management has focus on: 1. Clear vision and mission 2. Focus on strategy 3. Rapid changes adaptation Strategic Management Model Element of Strategic Management White (2004:612) said that we have to integrate the elementsof strategic management process in order to reach the organization objectives. Environment scanning To be a successful organizations, they should have the ability to have a great or precise decisions that are related to the matters that emerge around them such as the changing on the customer expectation, fast- paced innovation, and new technologies. All those things force the organization to do the best strategically so that they could achieve their goals. The advantages of Management Strategic According to Greenley (David, 2011: 25), strategic management provides the following benefits: a) Enables an organization to be more productive. b) Enables an organization to direct and influence various activities. c) Helping organizations to formulate better strategies through the use of approaches to strategy choices that are more systematic, logical and rational. d) To achieve understanding and commitment from all managers. e) Create the opportunity exists that provides space that is able to empower individuals. The definition of Strategy Colin white defines the term strategic in its simplest conception strategy as a unifying idea which links purpose and action. Whereas For de Wit and Meyer (1998) in Colin White (2004:612) stated that strategy is any course of action to reach the organization’s purpose. Alfred Chandler, the first modern business strategy theorist, defined the word strategy as ‘the determination of the basic goals, long-term goals and objectives of the organization, and the adoption of courses of action based on the necessary resources allocated (Chandler, 1962: 13).
  • 3. According to Admin (2009), the definition of strategy in general and specifically is as follows: 1. General definition Strategy is the process of determining the plans of top leaders who focus on the long-term goals of the organization, accompanied by the preparation of a way or effort to achieve these goals. 2. Special definition Strategy is an incremental action (constantly increasing) and continuously, and is carried out based on the point of view of what customers expect in the future. Thus, the strategy almost always starts from what can happen rather than starting from what happened. The occurrence of the speed of new market innovations and changes in consumer patterns require core competencies. Companies need to look for core competencies in their business. Types of Strategy Based on the modul, strategy can be devided into two types, they are the corporate-level Strategies and business-level/competitive Strategies, Whereas the areas of functional strategy will cover : 1. Design Strategy 2. Sourcing strategy 3. Supporting strategy These three strategies are integrated in the strategic process which in the end will come into delivery trategy. The picture of that areas can be seen in the picture below. The strategic planning cycle of the organization in reaching the mission can be seen from the picture below. Strategy Implementing In implementing the the strategy David (2011:7) said that strategic implimentation is an action pase of the strategic management. All the stake holder of the organization should participate in the process taken by the organization. To reach the goal it needs a high commitment, dicipline, and the willingness to sacrifice. The leader plays the key role in mativating the employee to take part in gaining the goal. That statement can be seen in the following statement: “Menurut David (2011:7), penerapan strategi merupakan tahap aksi dari manajemen strategis. Menerapkan strategi berarti memobilisasi karyawan dan manajer untuk melaksanakan strategi yang telah dirumuskan. Sering kali dianggap sebagai tahap yang paling sulit dalam manajemen strategis. Penerapan strategi membutuhkan disiplin, komitmen, dan pengorbanan personal. Penerapan strategi yang berhasil bergantung pada kemampuan manajer untuk memotivasi karyawan, yang lebih merupakan seni daripada pengetahuan.” Strategic management typically involves the processes of :  Analyzing the internal and external strengths and weaknesses.  Formulating action plans.  Executing action plans.  Evaluating the action plans The right strategic planning in reaching the goals such as the decesions and action plans that should be taken by the organization will help the organization to set its short and long term goals. It will also helps the organization to strengthen its core competencies that finally will help them to support their market share and to gain competitive advantage. Model of the Strategic Management Processes From the picture we can see that there are processes in the model of strategic management which started from the environment scanning, strategy formulating, then strategy implementation and evaluation and control as the last process.
  • 4. SWOT Analysis To help the organization in reaching its goals effectively, the organization should have one of the important process in strategic management which we call as a SWOT analysis. As an important element in strategic management process, it will help the organization to determine its resources and its basic competence. SWOT analysis will also help the organization to identify its stengths, weaknesses, opportunities and threats by looking at its internal and external environment. By analyzing these aspects, hopefully it could help the decesion makers to formulate the right strategies that might impact the organization business in reaching its goals. Here is the example of SWOT analysis picture taken from https: //searchcio.techtarget.com/ definition/ strategic-management3 . References 1. David, 2011. http://library.binus.ac.id/eColls/eThesisdoc/Bab2/2013-2-02232MN%20Bab2001.pdf , (21 Februari 2018) 2. Taufiqurokhman,Dr, Manajemen Strategik, Fakultas ilmu Sosial dan Ilmu Politik, jakarta, 2016 3. White, Colin, Strategic Management, Palgrave MacMillan, New York, 2004