Modul ke:
Distinctive
Strategic Management
Strategic Menagement : Overview of the
management strategic
Fakultas
Pascasarjana
Program Studi
Magister
Manajemen
http://www.mercubuana.ac.id
Dr Ir Sri Hartono MM
Buku-Buku Referensi :
Thomas L. Wheelen & J.David Hunger, (2010)
Strategy Management and Business Policy, Twelfth
Edition,
David R. Fred, (2010) Strategic Management
consepts and cases , Thirteen Edition.
Hitt Ireland (2013), Strategic Management : Concept
and Casuse. Prentice Hall.
Penilaian
UTS
UAS
Diskusi, Paper, Kasus
Kehadiran
: 30%
: 35%
: 30%
: 5%
Tugas Individu/Kelompok
Pembahasan Journal meliputi :
Posisi teoritis
Konsep teoritis utama atau kerangka kerja yang digunakan
Metodologi
Temuan utama
Komentar pada interpretasi alternatif dari hasil
Kemungkinan ekstensi dan strategi pengkayaan penelitian
Learning Objective
After finishing this chapter, you should be able to
Understand the benefits of strategic management,
Explain how globalization and e-commerce influence
strategic management,
Understand the basic model of strategic management,
Identify some triggering events that act as stimuli for
strategic change,
Understand strategic management decision making modes,
Use the strategic audit as a method of analyzing corporate
functions and activities.
Basic Concepts of Strategic Management
Globalization
Internationalization of markets and corporations
Global (worldwide)
markets
markets
rather
than
national
Electronic Commerce
Use of the
transactions
Internet
to
conduct
business
Basis for competition on a more strategic level rather
than traditional focus on product features and costs
Basic Concepts of Strategic Management
Electronic Commerce -- Trends
Forcing company transformation
Market access & branding changing
disintermediation
of
traditional
distribution channels
Balance of power shift to consumer
Competition changing
Basic Concepts of Strategic Management
Electronic Commerce -- Trends
Pace\speed of business increasing
Internet purchasing beyond traditional
boundaries
Knowledge key asset source of
competitive advantage
Strategic Management Defined
Set of managerial decisions and actions
that determines the long-run performance
of a firm.
It includes environmental scanning,
strategy
formulation,
strategy
implementation, and evaluation and
control.
Strategic Management Defined
Strategic management is the process by which
managers set an organizations (or several
organizations) long-term course, develop
plans in the light of internal and external
circumstances, and undertake appropriate
action to reach those goals.
Basic Concepts of Strategic Management
4 Phases of Strategic Management
Firms evolve through the following
faces of strategic management.
1. Basic financial planning
2. Forecast-based planning
3. Externally-oriented planning
4. Strategic management
Strategic management in profit sectors and non
profit sectors
Although strategic management as a
conscious enterprise emerged first in the
private, profit-making sector, managers in
other sectors are beginning to use its methods
to try to improve their effectiveness.
Strategic Management and research
As a self-identified area of inquiry, strategic
management is still young. The first major
conference devoted to the subject was only held in
1977 at the University of Pittsburgh. The Strategic
Management Journal and the Journal of Business
Strategy each published their first issue three years
later. Michael Porters landmark study, Competitive
Strategy, appeared in 1980. The Academy of
Management, the professional association of
business school teachers, organized its Business
Policy and Strategy division at around the same time.
Basic Concepts of Strategic Management
1.
2.
3.
4.
Basic financial planning: initiate some
planning when they requested to set up their
budgets; considers activities for one year.
Forecast-based planning: consider projects
for more than a year. The time horizon is
usually 3-5 years.
Externally-oriented
planning:
conduct
strategic planning by top management and
they leave implementation to low level.
Strategic management: planning by forming a
team from all levels in the company.
Benefits of Strategic Management
Research has revealed that organizations that engage in
strategic management generally outperform those that do
not. The attainment of an appropriate match, or fit,
between an organizations environment and strategy,
structure, and processes has positive effects on the
organization's performance. For example, studies of the
impact of deregulation on The U.S. railroad and trucking
industries found that companies that changed their structures
as their environment changed outperformed companies that
did not.
Basic Concepts of Strategic Management
Highly Rated Benefits
A survey of nearly 50 corporations in a variety of
countries and industries found the three most
highly rated benefits of strategic management
to be:
Clearer sense of strategic vision
Sharper focus on strategic importance
Improved understanding of changing
environment
Basic Concepts of Strategic Management
Not Always a Formal Process
Where is the organization now? (not
where do we hope it is)
If no changes are made, where will the
organization be in 1,2,5 or 10 years?
What
specific
actions
should
management undertake?
What are the risks and payoffs?
Basic Concepts of Strategic Management
Basic Elements of the Strategic
Management Process
Environmental Scanning Defined
Monitoring, evaluation, and disseminating
information from external and internal
environments to key people in the firm
Basic Concepts of Strategic Management
Environmental
Variables
Environmental Scanning Defined
SWOT Analysis
SWOT is an acronym used to describe the particular
strengths, weaknesses, opportunities, and threats,
that are strategic factors for a specific company.
The external environment consists of variables
(OT)that are outside the organization and not
typically within the short run control of top
management. These variables from the context
within which the corporation exists
Environmental Scanning Defined
SWOT Analysis
The internal environment of a corporation consists of
variable(SW) that are within the organization itself
and are not usually within the short run control of
top management. These variables from the context
in which work is done. They include the corporations
structure, culture, and resources, key strengths from
a set of core competencies that the corporation can
use to gain competitive advantage
Environmental Scanning
SWOT Analysis
Strengths Weaknesses
Opportunities - Threats
Environmental Scanning Defined
Strategy Formulation
Formulation is the development of long-range
plans for the effective management of
environmental opportunities and threats, in
light of corporate strengths and weaknesses
(SWOT). It includes defining the corporate
mission, specifying achievable objectives,
developing strategies, and setting policy
guidelines.
Environmental Scanning Defined
Mission statement
An organizations mission statement is the
purpose or reason for the organizations
existence. It tells what the company is
providing to society.
Strategy Formulation
Mission Statement
Purpose/reason for organization
Promotes shared expectations
Communicates public image
Who we are; what we do; what we
aspire to
Environmental Scanning Defined
Objectives
Objectives are the end results of planned activity.
They should be stated as action verbs and tell what is
to be accomplished by when and quantified if
possible. The achievement of corporate objectives
should result in the fulfillment of corporations
mission.
The term goal is often used interchangeably with the
term objective. In this book we prefer to differentiate
the two terms. In contrast to an objective, we
consider a goal as an open ended statement of what
we want to accomplish, with no quantification of
what is to be achieved and no time criteria for
completion
Environmental Scanning Defined
Goals and objective
Corporate Goals/Objectives
Profitability (net profit)
Efficiency (low costs.etc)
Growth (increase in total assets, sales, etc)
Resource utilization (ROE, ROI)
Reputation(being considered a top firm
Contributions to employees(employment security, wages,
diversity)
Contributions to society(tax paid, participation in
charities)
Market leadership (market share)
Objective and goals continue
Technological leadership(innovation,
creativity)
Survival (avoiding bankruptcy)
Personal need of top management (using the
firm for personal purposes, such as providing
jobs for relatives)
Strategy
A strategy of a corporation forms a
comprehensive master plan that states how
the corporation will achieve its mission and
objectives.
It
maximizes
competitive
advantage and minimizes competitive
disadvantage
Policy
A policy is a broad guideline for decision
making that links the formulation of a strategy
with its implementation. Companies use
policies to make sure that employees
throughout the firm make decisions and take
actions that support the corporations mission,
objectives, and strategies
Policies
1. Policies include guidelines, rules, and procedures
established to support efforts to achieve stated
objectives.
2. Policies are most often stated in terms of
management,
marketing,
finance/accounting,
production/operations, research and development,
and computer information systems activities.
Examples: smoking policy, recruitment policy
Strategy implementation
Strategy implementation is a process by which
strategies and policies are put into action through
the development of programs, budgets, and
procedures.
The implementation of strategy directly or indirectly
connects to all facts of management. Thus it is
fundamental to follow a holistic approach when
analyzing and assessing complex issues of strategy
implementation.
Budgeting and procedures
Budgeting: Is the process of allocating resources to be employed to
achieve objectives.
Budget is a statement of a corporations activities in terms of dollars. Used
in planning and control, a budget lists the detailed cost of each program.
Many corporations demand a certain percentage return on investment,
often called a hurdle rate before management will approve a new
program.
Budget should be directly linked to strategy implementation.
Procedures: Sometimes termed Standard Operating Procedures (SOP), are
a system of sequential steps or techniques that describe in detail how a
particular task or job is to be done. They typically detail the various
activities that must be carried out in order to complete the corporations
program.
Strategy control and evaluation
Ensure that a company is achieving what it
sets out to accomplish. It compares
performance with desired result and provides
the feed back necessary for management to
evaluate results and take corrective action, as
needed.
Performance
Performance is the end result of activities, it includes
the outcomes of the strategic management process.
The practice of strategic management is justified in
terms of its ability to improve an organizations
performance, typically measured in terms of profits
and return in investment. For evaluation and control
to be effective, managers must obtain clear, prompt,
and unbiased information from the people below
them in the corporations hierarchy. Using this
information, managers comparing what is actually
happening with what was originally planed in the
formulation stage.
Organizational Adaptation
Organization fit with environment
Theory of population ecology\biology:
org. unable to adapt to changing
conditions.
Institution theory: org. can adapt to
changes.
Strategic choice perspective: not only
adapt to changes but also it can
reshape its environment.
Organizational learning theory:
Organizational Adaptation
Strategic flexibility
Demands long-term commitment to
development of critical resources
Demands firm become a learning
organization
Learning Organizations
An organization skilled at creating,
acquiring,
and
transferring
knowledge and at modifying its
behavior to reflect new knowledge
and insights
Learning Organizations
4 Chief Activities
Systematic problem solving
New approach experimentation
Learning from experiences
Intra-organization knowledge transfer
Terima Kasih
Dr Ir Sri Hartono MM
