√ Understanding Strategic Management, Benefits and Stages

Understanding Strategy Management, Benefits and Stages - On this occasion About Knowledge will discuss Strategic Management. Which in this discussion explains the meaning of strategic management, objectives, benefits, methods and stages briefly and clearly. For more details, please refer to the following article.

Understanding Strategy Management, Benefits and Stages

Strategic management focuses on the process of setting goals for an organization, creating and developing policies, planning to achieve goals. As well as allocating resources to be able to implement policies and plan the achievement of organizational goals.

Implementation of a good and targeted strategy is needed for any activity, especially in running a business. The right strategy and organized in an organized manner will make it easier for an organization to carry out its mission in achieving a goal.

Understanding Strategic Management

The definition of strategic management is a process or series of activities or decision-making activities that are fundamental and comprehensive. Accompanied by the determination of how to implement it, which is made by the leader of the organization that will implemented by all levels within the organization or company in achieving objective.

Some experts define strategic management or strategic management as an art or science knowledge in formulating, implementing, and evaluating all kinds of cross decisions functional. Thus enabling an organization to achieve its goals.

Strategic Management According to Experts

Following are some experts in the field of management science explaining the definition of strategic management. among them are:

• David Hunger

According to J. David Hunger, The definition of strategic management is a series of managerial decisions and actions that determine the performance of an organization/company in the long term.

In essence, the definition of strategic management is an act of planning along with setting an effective strategy done so that the business goals are achieved and of course the business can also last for a long time.

• Thomas Wheelen and Co. (2010)

According to Thomas Wheelen and Co., the definition of strategic management is a series of managerial decisions and various activities or activities that determine the success of the organization/company for the long term. These activities or activities include the formulation/planning of strategies, execution/implementation of strategies and also evaluation.

• According to Nawawi

According to Nawawi, the definition of strategic management is a large-scale planning that oriented to be able to achieve future goals, and defined as a decision that fundamentals.

Planning will enable the organization/company to be able to carry out the mission in one of the ways to be able to produce something, (planning operations to be able to produce quality goods and/or services, as well as optimization aimed at achieving the strategic goals of the organization/company.

• According to Bambang Haryadi (2003)

According to Bambang Haryadi, the definition of strategic management is a process that is arranged systematically by management to formulate strategies, implement strategies, and evaluate those strategies run. All series of activities or activities aim to be able to realize the vision and mission of an organization.

• According to Mulyadi (2001)

According to Mulyadi, the definition of strategic management is a process carried out by the manager and employees to formulate and implement strategies in providing the best customer value to realize the vision organization.

Strategic Management Objectives

After knowing about the meaning of strategic management, of course we also have to know what its goals are. As the name suggests, in strategic management a manager is tasked with compiling a series of company strategies and is also usually more associated with marketing.

The manager compiles, organizes, implements and evaluates agreed strategies with the aim of achieving targets.

The following are 4 (four) main objectives of strategic management in business, namely:

• Provide direction in achieving goals.
• Protect the interests of various parties.
• Anticipate every change evenly.
• Related to effectiveness and efficiency.

In practice, the objectives of this strategic management include the following:

• To implement and also evaluate the strategies that have been chosen effectively and efficiently
• Aims to be able to evaluate performance, review, review, make corrections and also adjustments if deviations are found in strategy implementation
• To create new strategies that are formulated to suit the development of the external environment
• Aims to review the strengths and weaknesses of the organization/company, see opportunities and threats in business
• So that organizations/companies can innovate products or services so that they can continue to be accepted by consumers.

Benefits of Strategic Management

This strategic management is very necessary for various activities or activities to be able to achieve the goal to the fullest. Below are some of the benefits of strategic management, namely:

• This strategic management can produce the best decisions for the organization.
• Activities or activities to formulate the strategy will help improve the ability of the organization/company in facing various challenges.
• Employee involvement in formulating strategy will make the brand understand and also appreciate productivity which in turn increases work motivation.
• The implementation of this strategic management will make the organization/company more sensitive to external threats.
• Good strategic management will help prevent all kinds of problems from within or from outside.
• The implementation of this strategic management will make the operational processes of the organization/company more effective and efficient.
• The management strategy helps the organization/company to be able to adapt to a change.
• Implementation of this strategic management will also make the organization/company more profitable than organizations/companies that have not implemented it.

Strategic Management Process and Stages

For beginners in the business world, especially on a small scale, they usually tend to ignore the basics of doing business. They tend to start the business without a plan, only by setting goals without making a strategy.

In an organization/company, especially in the commercial business, of course they will arrange strategic management, because this is really needed.

The following are several stages in the process of creating or compiling strategic management, including:

• Formulate Strategy

At this stage the organization/company will develop the vision and mission, perform analysis SWOT, determine and determine the long-term goals of the organization, and several alternative strategies other.

• Implement Strategy

In implementing the strategy that has been determined after that it is implemented for example designing organizational structure, distribution of resources resources, making policies, developing decision-making processes, managing human resources, marketing efforts and others etc.

• Evaluating Strategy

As time goes by, what is needed is periodic evaluation. The goal is to be able to see the factors both internally and externally of the company.

There are 3 (three) main activities or activities in strategic evaluation, including:

• Reviewing all kinds of internal and external factors that form the basis or guidelines for the formulation of strategies that have been implemented previously.
• Measures current performance.
• Make efforts to improve previous performance deficiencies for future success.

How to Develop an Effective Business Strategy

Now we understand the meaning of strategic management and the importance of strategy in running a business. However, we do not yet have a good step in developing a good business strategy.

Below is a way to develop an effective business strategy:

• Critical thinking

For someone who thinks critically it will be easier to know the various problems that are happening. By knowing the problem, someone who thinks critically will try to find a way out.

In carrying out a good strategy, one needs to think critically and be able to identify problems that occur within the internal or external scope. So it will reduce the risk of failure in business

• Creative Thinking

In addition to critical thinking, you also have to think creatively, especially in determining the type of product or goods to be produced. The advantages of a product, service and needs in people's lives are able to help attract their interest to use it.

• Dare to take risks

Business is a tough world, full of twists and nothing goes smoothly. To be able to start a business it takes people who dare to take risks.

People who doubt will have difficulty even starting their business will be difficult. However, in practice, someone who dares to take risks also needs to work hard so that the business being carried out can produce results.

• Open Thinking and Opportunist

Having an open mind is very important in business, especially seeing your business from a different perspective so that you can generate or bring up new ideas. People who think open it will be easier to rise and build against criticism from others. Someone who is opportunistic will find it easier to find and take advantage of existing opportunities.

• Be Original

Creating products that can be the hallmark of a business that is being worked on without the need to copy others. Because that is what will differentiate your product from other products in the eyes of consumers.

Thus the explanation about Understanding Strategy Management, Benefits and Stages. Hopefully it can be useful and add to your insight. Thank You.