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

Company Mission, Social Responsibility, and Ethics

External Environment ( Global & Domestic) . Remote . Industry .Operating

Internal AnalysisInternal Analysis

Strategic Analysis and ChoiceStrategic Analysis and Choice

Functional TacticsFunctional Tactics

Generic and Grand StretegiesGeneric and Grand StretegiesLong-term ObjectiveLong-term Objective

Organizational Structure,Leadership and Culture

Organizational Structure,Leadership and Culture

PoliciesPoliciesShort-term Objectives;Reward System

Short-term Objectives;Reward System

Stregic Control,Innovation, and Entrepreneurship

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 11

CorporateGovernance

Chapter 12Structure& Control

Chapter 13Strategic

Leadership

Chapter 14Entrepreneurship & Innovation

Str

ate

gic

Inp

uts

Str

ate

gicA

cti

on

s

Str

ate

gic

Ou

tcom

es

Chapter 4Internal

Environment

Chapter 3External

Environment Strat. Intent

Strat. Mission

The Strategic Management Process

Strategy Formulation Strategy Implementation

Strategic Competitiveness

Chapter 1Above Average Returns

Chapter 2 FeedbackStrategic

Competitiveness

Chapter 1