Strategic management is a process or set of decision making activities that have a fundamental and comprehensive nature, accompanied by the determination of how to implement (made by leaders), then applied by all ranks that exist within an organization to achieve the target or target. Management strategies combine activities that come from the functional part of a business to achieve organizational goals.
Strategy management consists of nine tasks:
- Formulating a corporate mission includes a broad statement of intent, philosophy and objectives.
- Develop a company profile that reflects on internal conditions and capabilities.
- Assess the company’s external environment, including both competitive factors and factors related to the general context.
- Analyze the company’s options by matching the company’s resources with its external environment.
- Identify the most desired option by assessing each option in terms of company mission.
- Choose a set of long-term goals and a total strategy that will reach the most desirable option.
- Develop annual goals and short-term strategies that are consistent with a set of long-term goals selected from the grand strategy.
- Implementing strategic options with budgeted allocation of resources that comprise tasks, people, structures, technologies and emphasizing reward systems.
- Assessing the success of strategic processes as input for future decision-making.
The nine tasks above relate to the objectives of strategy management. The purpose of strategy management, among others:
- To run and evaluate strategies that have been selected effectively and efficiently.
- To evaluate performance, review, review, adjust and correct if there are errors or deviations in the execution of the strategy.
- To renew the strategy formulated to suit the mining of the external environment.
- To review starting from strengths, weaknesses, opportunities, to existing business threats.
- To innovate products or goods to suit the tastes of consumers.
Why should companies implement strategic management?
The process of this management can produce the best decision, because group interactions that collect a variety of strategy decisions larger or more. In addition, the activity of strategy formulation can enhance the ability of the company in dealing with various problems at hand. Plus the involvement of employees in strategy formulation, it is useful in improving their understanding of productivity awards in every strategic planning, thereby enhancing employee motivation.
Application of strategy management can make corporate management more sensitive to external threats. At least strategic management can also prevent the emergence of various problems, both from within and from outside the company. Implementation of this strategy management can also improve the quality of the company in the face of problems.
Strategic management enables companies to carry out all operational activities more efficiently and effectively. Companies are so easy to adapt to changes that occur. But more core, companies that use the concept of strategy management will be more profitable than companies that do not apply it.