KULIAH 1

MATERI 1
Ruang Lingkup Strategic Management
Strategic Management (SM): The set of decisions and actions that result in the formulation and
implementation of plans designed to achieve a company's objectives (Pearce II & Robinson).
Nine critical tasks:
1. Formulate the company's mission, purpose, philosophy, and goals.
2. Company's internal conditions and capabilities.
3. Assess the company's external environment.
4. Analyze the company's options by matching its resources with the external environment.
5. Identity the most desirable options by mathing its resources with the external environment.
6. Select a set of long-term objectives and grand strategies that will achieve the most desirable
options.
7. Develop annual objectives and short-term strategies that are compatible with the selected set of
long-term objectives and grand strategies.
8. Implement the strategic choices by means of budgeted resource allocation in which the maching of
tasks, people, structures, technologies, and reward systems is emphasized.
9. Evaluate the success of the strategic process as an input for future decision making.
 MATERI 1
Ruang Lingkup Strategic Management
A strategy is a company's game plan.
A strategy reflects a company's awareness of how, when, and where it shouls
compete, against whom it shoild compete, and for what purposes it should compete.

Dimensions of strategic decisions:

 Strategic issues require top-management decisions.
 Strategic issues require large amounts of the firm's resources.
 Strategic issues often affect the firm's long-term prosperity.
 Strategic issues are future oriented.
 Strategic issues usually have multifunctional or multibusiness consequences.
 Strategic issues require considering the firm's external environment.
 MATERI 1
Ruang Lingkup Strategic Management
Three Levels of strategy
Alternative 1
Single-business firms: Corporate/business level dan functional level.
Alternative 2
Multiple business firms: Corporate level, business level, dan functional leve l

Ends Means Strategic Decision Makers

(What is to be (How is it to be achieved ?)
achieved) Board of Corporate Business Functional
Directors Managers Managers Managers

Mission, goals, √√ √√ √
philosophy
Long-term Grand strategy √ √√ √√
objectives
Annual Short-term strategies and √ √√ √√
objectives policies
 MATERI 1
Ruang Lingkup Strategic Management
Benefits of Strategic Management:
 Enhance the firm's ability to prevent problems
 Group-based strategic decisions.
 Understanding of the productivity-reward relationship.
 Gaps and overlaps in activities among individuals and groups are reduced.
 Resistence to change is reduced.

Risks of Strategic Management

1. Time for strategic activities....manager must be trained..
2. Implementation
3. Subordinates
 MATERI 1
Ruang Lingkup Strategic Management
Components of Strategic Management Model
 Company mission
 Internal analysis
 External environment
 Strategic analysis and Choice
 Long-term objectives
 Generic and grand strategies
 Short-term objectives
 Action plans
 Functional tactics
 Policies that empower action
 Restructuring, reengineering, and refucusing the organization
 Strategic control and continuous improvement