Mohammad Arief
Manajemen Strategik;An Overview
WHY A FIRM NEED A STRATEGY
Setting Direction
STRATEGY
Focussing Effort
Defining the
Organization
Providing Consistenc
y
Mintzberg
THINKING STRATEGICALLY:THE THREE BIG STRATEGIC QUESTIONS
Where are we now?
Where do we want to go?
How are we going to get there?
WHAT IS STRATEGIC MANAGEMENT?
Strategic Management is an art and science of formulating, implementing and evaluating cross-functional decisions that enable an organization to achieve its objectives (Fred R. David, 2008).
Strategic Management is the approaches to grow, attract and please clients, compete successfully and achieve targeted levels of organizational performance (Arthur A. Thompson, 2010)
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WHAT IS STRATEGIC MANAGEMENT? (CONTD.)
In ultimate analysis Strategic Management is the Quest for Competitive Advantage.
4 most frequently used strategic approaches: Striving to be the industry’s low-cost provider Outperforming rivals based on quality, diversity,
style, technology, value –added services etc Focusing on a narrow market niche Developing capability that rivals can’t easily
imitate.
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WHAT IS STRATEGIC MANAGEMENT? (CONTD.)
Strategic Management focuses on Integrating management, Production/operation. Financing/accounting, Marketing, Research & development, MIS
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Peter Drucker: -- Think through the overall mission of a business. Ask the key question: “What is our Business?”
Prime Task of Strategic Management
The strategic management process attempts to organize quantitative and qualitative information under conditions of uncertainty
Integrating Intuition and Analysis
Intuition is based on: Past experiences Judgment Feelings
Integrating Intuition and Analysis
Intuition is useful for decision making in: Conditions of great uncertainty Conditions with little precedent
Involve Management at all levels
Intuition & Judgment
Influence all Analyses
Integrating Intuition & Analysis
Analytical Thinking
Integrating Intuition & Analysis
Intuitive Thinking
Benefits of Strategic Management
Financial Benefits
• Improvement in sales• Improvement in profitability• Productivity improvement
Benefits of Strategic Management
Non-Financial Benefits
• Improved understanding of competitors strategies• Enhanced awareness of threats• Reduced resistance to change• Enhanced problem-prevention capabilities
WHY SOME FIRMS DO NO STRATEGIC PLANNING ?
Poor Reward Structure Fire Fighting Content with Success Overconfidence Prior Bad Experience Fear of Failure Waste of Time
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WHY STRATEGIC PLANNING/MANAGEMENT MAY FAIL?
Strategic planning to satisfy regulatory requirement,
Top management not actively supporting the strategic planning process
Failing to involve key employees in all phases of strategic planning
Becoming so engrossed in current problems that insufficient planning is done
Failing to communicate the strategy to employees who continue working in dark 15
A COMPREHENSIVE STRATEGIC-MANAGEMENT MODEL (FRED R. DAVID)
Basic Elements of the Strategic Management Process (Wheelen
& Hunger)
THE FIVE TASKS OF STRATEGIC MANAGEMENT (THOMPSON & STRICKLAND)
Craft aStrategy
to AchieveObjectives
SetObjectives
Develop aStrategic
Visionand
Mission
Implementand
ExecuteStrategy
Improve/Change
Revise asNeeded
Revise asNeeded
Improve/Change
Recycleas Needed
Task 1 Task 2 Task 3 Task 4 Task 5
Monitor,Evaluate,and Take
CorrectiveAction
Company Mission, Social Responsibility, and Ethics
External Environment ( Global & Domestic) . Remote . Industry .Operating
Internal Analysis
Strategic Analysis and Choice
Functional Tactics
Generic and Grand StretegiesLong-term Objective
Organizational Structure,Leadership and Culture
PoliciesShort-term Objectives;Reward System
Stregic Control,Innovation, and Entrepreneurship
Major Impact
Minor Impact
Feedback
Feedback
Chapter 5Bus. - Level
Strategy
Chapter 6Competitive
Dynamics
Chapter 7Corp. - Level
Strategy
Chapter 9International
Strategy
Chapter 10CooperativeStrategies
Chapter 8Acquisitions &Restructuring
Chapter 11Corporate
Governance
Chapter 12Structure& Control
Chapter 13Strategic
Leadership
Chapter 14Entrepreneurship & Innovation
Stra
tegi
cIn
puts
Stra
tegi
c Act
ions
Stra
tegi
c O
utco
mes
Chapter 4Internal
Environment
Chapter 3External
Environment Strat. IntentStrat. Mission
The Strategic Management Process
Strategy Formulation Strategy Implementation
Strategic Competitiveness
Chapter 1Above Average Returns
Chapter 2 FeedbackStrategic
Competitiveness
Chapter 1