Strategic Management Process

Not only are big companies that have strategic management, but the company kecilpun should be managed by using the strategic management. Management is a set of strategic decisions and actions designed to achieve the target company. Thus the strategic management decisions involving the long-term and complicated and future-oriented with a great need of resources and participation of top management. Management is a strategic process that involved three levels of the planners at the company,

business unit and functional support, and other planners.
Strategic management process consists of eight steps including: defining the vision, mission and business social responsibility, analyze the external environment, analyzing the environmental inter ¬ nal, select the business goals and objectives, develop strategic business, the plan breaks down the program, implement the plan program, and collect feedback and test pengendalian.Semua this step to keep terhambatnya business unit of the environment and guard against potential problems and the new.
Small companies with similar large, should have the vision and mission. Vision is a unique destination of the company that distinguish the company with other similar companies and identify the scope of its operations. Vision is a general statement or formula that is wide and long on the desire or the purpose of the company. This vision of philosophy of business decision makers company strategy, imply that emanated company's image, reflects the company's self-concept and identify the areas of products (goods, services, ideas) and the main company needs to be a major customer companies. In summary, the vision disjoint products, markets, technology companies that are applied, and this is done so that reflects the values and priorities of the company's strategic decision. While the mission is operasionalilasi of vision.
Intel has a vision of encouraging ongoing innovation boundaries so that people can make life more enthusiastic, more fulfilled and easier to manage. Bill Gates at the beginning of the establishment Microsoft, have a vision of "A computer on every desk in every home, running Microsoft device."
Mission Levi Strauss & Co.. is "keep the commercial success of the company responsible for global marketing bermerk casual clothes." Motorola's mission statement, which is "The goal is our fundamental total customer satisfaction."
Analysis external environment will result in opportunities and threats companies. External environment the company consists of three factors the device, the remote environment, environmental industry and environmental operations.
Environment far from consisting of the factors that come from outside, and usually not associated with a particular company's operating situation, the economic factors, socio-cultural, technological, demographic, political, legal, and ecological.
Environment insudtri consists of competition between members of the industry, entry barriers, product substitution, bargaining power of suppliers and bargaining power.
Operational environment includes the factors that affect a company's competitive situation, the competitive position, profile customers, suppliers, creditors, and the labor market.
The three factors tesebut create the opportunities and threats in the product favorably. For example, Coca-Cola in 1993 analyzing the environment far away, get the results as follows:
- Increasing income disposabel, Coca-sales
Cola will increase,
- Inflation affect the success of Coca-Cola
- K
- The consumption of soft drink proportionate upside someone with age,
means the elderly, the reduced drink light,
the young group that was most drink
light.
- Technology to make the world more narrow, so that it appears the market
"Young people" a new, more accessible.
From the environment industry produces Coca-Cola:
- Coca-Cola gets strong competition from Pepsi
- Raw materials main Coca-Cola is corn syrup berkadar fruktosa high, a kind of sugar to the United States can dipasok by most domistik source. For outside the United States can be replaced sukrosa. Material is aspartam, a sweetener used in soft drink products from low-calorie The Nutra Sweet Company.
- Buyer is a soft drink and the individuals who have rights pembotol franchise.
- There are many drinks substutusi of popular soft drink, among other beverages sitrus (Citrus beverage), juice (fruit juice)
Lingkuangan internal analysis will produce the company strengths and weaknesses. Internal Analysis Company is also known by the name of the Company's analysis. This analysis illustrates the strength of the company, both the quantity and quality of marketing, human resources, physical resources, operations, financial, management and organization.
Marketing Strengths and weaknesses can be seen from the company's reputation, market, product quality, service quality, the price of effectiveness, the effectiveness of distribution, promotion effectiveness, sales force, innovation and effectiveness of geographical coverage.
Strengths and weaknesses of human resources can be shown from the human resources management, employee morale and skills, ability and attention of top management, employee productivity, quality of life for employees, employee flexibility, adherence legal staff, the effectiveness of rewards in motivating employees, and employees.
Finance consists of the availability of capital, cash flow, financial stability, relationship with the owners and investors, the ability associated with the bank, the amount of capital that is planted, profits earned (value stocks), the effectiveness and efficiency of accounting system for budget planning and cost-benefits and resources company level.
Operations include the company's facilities, economic scale, production capacity, the ability to produce timely, expertise to produce, cost and availability of raw material supplier, location, layout, optimization facilities, inventories, research and development, patents, trademarks, legal protection, control and operating efficiency and cost-benefits of the equipment.
Strengths and weaknesses of organization and management can be obtained from the organizational structure, performance and image of the company, notes the company in achieving goals, communication within the organization, the entire system of organization, organizational culture and climate, use of an effective system in decision making, strategic planning system, synergy in the organization, a good information system and management of good quality.
After analyzing the strength of the company, weaknesses, opportunities and threats that are also known to the SWOT analysis, formulating the next target. The target objectives in a specific amount and time. Thus the objective to facilitate the planning, implementation and control. The target company can be profitability, market position, productivity, technology leadership, the development of human resources, employee relations and social responsibility.
Few companies have only one target. Most companies have a mixture that includes the target return, sales growth, increased market share, limiting risk, reputation, innovation, and so forth. Determine the target company's management and conduct business according to the target (Management By Objectives, MBO).
The other important include the return of short-term versus long-term growth, market penetration of the market versus the development of new, targeted profit versus non-profit target, the growth of high versus low risk. Each option in the target group of this dilemma requires a different marketing strategy.
Target show what you want to reach a company, the strategy is a game plan for achieving it. Every effort must be to design strategies to achieve the target. Multidevisional big business, usually have a three-level strategy, the corporate strategy, business strategy and functional strategies.
Corporate strategy describes the overall direction of the company about the company's general attitude towards the growth and management of various business and product lines to achieve a balance portfolio of products and services.
Business strategy or strategies are developed to compete in devisi level and stress the improvement of the position of the product or service company in the industry or specific market segments served by these devisi. Business strategy such as this generic strategy of Michael E. Porter, the strategy of Jack Trout, Strategic Intent from Hamel and Prahalat and blue ocean strategy of Kim and Mauborgne.
Storm conditions are terrible for the company, forcing the company to be admired company strategy to create the world can still survive and grow. Strategy is the science of determining the direction of planning and operations, large-scale military operation. The strategy is how to move the troops to the position of most profitable before actual combat with the enemy. Business strategy focused on increasing the competitive position of products and services company in the industry or market segment that the company served. Business strategy the company overcome the problem and how the unit-unit compete in business and industry.
Generic strategy of Michael E. Porter. This strategy consists of the benefits of cost strategy, differentiation strategy and focus strategy. The cost benefits of the strategy is the overall strategy to create a business unit is working hard to reach the production and distribution costs low, so the price can be lower than the competition and gain a large market share. Differentiation strategy is a strategy to concentrate the business units to achieve the best performance in delivering benefits for customers who considered important by most of the market. While the strategy is a strategy focused business units that focus on one or more of the narrow market segment of the market in pursuing greater.
Strategies from Jack Trout said that the core of the strategy is how to survive in a competitive world, how to create a perception in both the consumer mind, to be different, identify the strengths and weakness of competitors, a spesialisas, the one word that simple in the head, which gives the direction of leadership and understand the reality of the market to become the first than to be better.
Hamel and Prahalat states that compete for the future that required four things. First, the need to understand that how to compete in the future is different to compete in the present. Secondly, the steps to find and increase the depth of knowledge about the opportunities that will come. Third, to resource mobilization for the travel company in the future. Fourth, take time to come first, without taking excessive risk taking.
Meanwhile, the blue ocean strategy of Kim and Mauborgne or Blue Ocean Strategy, assume that the competitive market is to create space that is not lawannya. Blue Ocean is an entire industry that does not have at this time, unknown market space, and no competition. In blue Ocean demand is created, not diperebutkan with the competition. Requests that can grow rapidly and benefit. To create blue Ocean in two ways, the company can improve a complete new industry, for example, eBay created the auction, but online. Both ways, Blue Ocean can be created from the red in the Ocean at the time of the company to change the existing industry boundaries.
The strategy emphasizes the functional pemaksimalan particularly on the productivity of resources, such as marketing strategies, financial strategies, human resource strategy, operations and strategy research and development strategy.
According to Porter, firms that do the same strategy and aimed for the market or segemen target the same group formed strategic. Companies that perform the most strategically well will get the biggest return. So the companies that have the lowest costs among the companies that perform low-cost strategy will appear most good. Companies that do not, apply a clear strategy "middle road authority" will fail. For example, International Harvester a difficult period, because he is not in the industrial companies with the lowest cost, achieve the highest value, or the best serve in several market segments. Middle road authorities to try to appear good in all the strategic dimension, but because the various dimensions of strategic management of a company requires a different and sometimes inconsistent, this company does not end in a superior bidangpun.
Companies also find that the most effective strategy requires that they have strategic partners. Even companies giant AT & T, IBM, Philips, Siemens often can not be a leader, well, the national and global, without any form strategic alliances with domestic companies and / or multinational complement or enhance the skills and resources they. To try in other countries, the company may need to obtain a license products, establish cooperation with local companies, buying from local suppliers to meet the requirements of "local womb" and so forth. As a result, more and more companies are working to develop a strategic global network. For more details, see the description Vision 2000 on page 76 titled "Weird Persekutuan: organize Growth Through Global Strategic Alliance."
Many take the form of strategic alliances marketing alliances that divided in four categories:
• Alliance products and / or services: The company gives the company a license to produce other products, or the two companies jointly market their products which complement each other, or a new product, for example, works with Apple Digital Vax together to design, produce , and market a new product. Sprinty recently joined the RCA as a reward to change their phone service to Sprint. H & R Blockdan Hyatt Legal Service two business services have been working together in a marketing alliance.
• Alliance campaign: A company agree to do promotions for products or services other companies. For example, Burger King work with Disney to offer objects berkarakter Lion King or Pocahontas and other products to buyers burgernya. Similarly, a bank may be willing to memajang a painting and a local gallery.
• Alliance logistics: Here, a perushaan offer logistical support for other companies. For example, Abbott Laboratories save and send all medical and surgical products 3M to homes across the United States.
• Collaboration prices: One or more companies participate in kolobarasi rates. Usually the hotel network and the car rental company to provide each other discounts.
Companies need to have in mind the relatively find business partners that will complement the strength and weakness of their cover. If managed properly, the alliance allows the companies to achieve higher sales with lower costs.
After the business unit to develop the main strategy, the business unit to develop a detailed program supporting. So if the business unit decided to excel in technology, business units should plan to strengthen the program litbangnya department, collecting intelejensi technology, develop sophisticated products, train technical staff seller, create an ad to communicate the benefits of the technology, and so forth.
After the program is formulated with a temporary, functional staff must evaluate the cost of the program. The questions appear as: What is the participation in trade exhibitions certain significant? What a useful sales contest? Whether hiring additional sales will be contributed to the profit? Activity-based accounting should be applied to any marketing activities to determine whether these activities will result in enough to cover costs.
The strategy is clear and that support may not be cooked will be useful, if the company fails to do this carefully. According to McKinsey Consulting Firm, the strategy is but one of the seven elements shown by perusahaaan managed well. The success of the business framework of S-7 from McKinsey. The first three elements of strategy (strategy), the structure (structure), and the system (systems) are considered as the "hardware" of success. Four elements of the style (style), staff (staff) skill (skill) and the value of joint (shared value) is the software. "
The first element software, style, meaning the company has a way of thinking dab be the same. So that all employees of the McDonald smile on customers and IBM employees are professionals in dealing with customers. The second, the staff, that means the company has memperkerjakan people skilled, trained them well, and menugaskanmereka on the appropriate tasks. The third, the ability, means that all employees have the ability to menjalanjkan company strategy. The fourth, with the value, meaning that all employees have the values of the same guidelines. Kala elements "soft" inin there, companies are more successful in the implementation of the strategy.
During the company implement strategies, companies need to observe and monitor the results in the development of new environmental and internal eksternalnya. Some of the environment is stable from year to year. The other slowly evolving in a way that can be estimated. However, there were also changes in the environment of a fast and can not be predicted. Companies must be sure one thing: the environment will change. And if the change occurs, the company that happens, companies must review and revise the implementation. Program, strategy, or even the target.
Control of the organization consists of three types, namely the control of strategic, management control and operational control. Control is the process of strategic evaluation of the strategy, the strategy is well formulated and implemented after. Control of management is focused on achieving the targets of various substrategi in accordance with the strategies and the achievement of the main targets of the medium-term plan. While operational control is based on the performance of individuals and groups are compared with the role of individuals and groups that have been determined by the plan of the organization. Each type of control is not separate and not significantly different and in fact may not be different with each other.
Concentrated control strategy with the way the strategy dimplementasikan, to detect any problems or areas of potential problem areas and make the necessary adjustments. Newman and Logan using terminology "rudder control system" to highlight some important characteristics of the control strategy. Typically, a period that occurred between the beginning of the important implementation of the strategy with the achievement of results that diharapkannya. During that time, a number of projects implemented, the investment made and the actions undertaken to mengimplentasikan new strategy. Also, environmental situation and internal company growing and developing. Control strategy is needed to control the company through these events. Control strategy should provide some immediate corrections based on the performance of medium and new information.
Henry Mintzberg that issue as well the organization plan strategy, but different strategies that might appear. Starting with a planned strategy or related to the expected several things:
• Strategy is expected to be realized that the strategy is deliberately (deliberate strategy)
• The strategy is expected that can not be realized that the strategy is not realized (unrealized strategy)
• Strategies that have realized that is not expected called an emergency strategy (emergent strategy)
Robert Anthony of the Harvard Business School said that the planning and control is connected between the two organizations in the near future so that to create a separation between them does not want and do not mean. Planning must precede control, control must reflect the planning. Anthony suggested that the planning and control organizations to disegmantasi in three categories, namely strategic planning, management control and control task (operational). He said that strategic planning means that the strategic planning and control, similar to the control also involves the management is planning and control activities.
Control strategy according to Schendel and Hofer focuses on two questions (1) whether the strategy is implemented as planned, and (2) whether the results produced by the strategy is expected. This definition refers to the study of traditional and step-feedback which is the final step of the strategic management process. Normative model of strategic management process that describes the key steps include formulation of strategies, implentasi strategy and evaluation (control) strategy.
Control strategy, especially on the footing of a traditional process that involves the study and performance feedback to determine the plans, strategies and objectives that have been achieved with the information that is used to solve problems or take corrective action.
The new conceptual contributors to the literature of strategic control of the feedback to anticipate the future and consider the rapid changes in the external environment is uncertain. Schreyogg and Steinmann (1987) have made the initial discovery in developing a new operating system on a sustainable basis, to check and evaluate the assumptions, strategies and results are critical. Strategic control as a critical evaluation of the plan, activities and results, thus providing information for the actions of the future. Steinmann and Schreyogg propose a model of classical feedback control to include the control of strategic assumptions, control and implementation of strategic control. Pearce and Robinson added the components of a special warning. The four types of control is designed to meet the needs of top management to oversee the strategy when implemented, to mendekteksi important issues, and to make the necessary adjustments. Control of this strategic assumptions related to the environment and key operational requirements needed for the successful implementation of the strategy.
Control is designed to check the assumption of a systematic and continuous whether or assumptions used for the planning and implementation process is still reliable or not. Indeed, it involves the environment, the environmental factors (economic, technological, socio-cultural, political-legal, demographic, ecological, government regulations etc.). And industry factors (competitors, Supplier, buyers, and the substitution of goods entering the major). All assumptions may not require control of a number of similarities. Therefore, managers must choose the variables and assumptions that are appropriate for change and will impact on large companies and the implementation strategy.
Controlling the implementation of the control of the overall strategy is changed or not need to see the results of the implementation of the strategy. Control does not replace the implementation of strategic operational control. Controlling the implementation of strategies related to the functional strategy, organizational structure, leadership style, reward systems and information systems. Unlike the operational control, the control of the strategic implementation of sustainable strategies in the fundamental direction. Control involves the implementation of these 2 cases, namely to monitor strategic trust (the new program or a strategic key strategic program) and review important events.
Supervision is the strategic control of the monitor events that may affect the way the strategy both in and outside the company. Compared with the control and the assumption of control of implementation, supervision designed relatively less strategic focus, and activities to a wider search. The idea behind the basic strategic control is some form of public monitoring of various sources of information will be important to find unexpected opportunities that were previously not anticipated. Supervision is a strategic issue with a similar observation of the environment, although the observation of the environment is usually seen from the part of the planning cycle, which is used to produce a chronological information for the new plan. Instead, strategic control is designed to save the strategy that has been built on the basis of continuous development.
Control of special warning is thought to company strategy in depth, and often faster due to the occurrence of unexpected. Events that are unexpected such as natural disasters, aircraft accidents, authorities diverting company, product defects, the products contain toxic, and so forth. Gen. can dramatically change the company's strategy. Pearce and Robinson suggested the warning was only for a specific implementation strategy, because the warning is indeed a special sub-section of the control of strategic guided entirely in the strategic management process.
Although the control system must be made in accordance with the specific situation, but the control system to follow the same basic process, usually following the langakah six are as follows:
• Determining what is
• Setting standards
• Measure performance
• Compare performance with the standard
• Determine the reasons for diversion
• Conduct action correction