Management Article (With Simple Past Tense and Present Perfect)

Management strategy or strategic management is a skill (art), engineering, and science in formulating, implementing, and evaluating and overseeing the various decisions of the functional organization (company business or non-business) is always affected by the external environment and internal conditions are always changed so that it can give the ability to the company in achieving the goals or objectives that have been defined.

Strategic Management Process

Based on the above definition of Strategy Management, the process in strategic management includes several stages: Observation Environment, Strategy Formulation, Strategy Implementation, Evaluation Strategy. 

Formulation of Strategic Management

The formulation of management strategies may include the company's business development mission, identifies opportunities and threats from an external, measure and assign internal weaknesses and strengths, establish long-term objectives, weigh alternatives, and choose specific strategies to be applied to specific cases.

Scope of strategy formulation includes new objects that will be done, the object of the business to be left behind, allocate resources either financial or non-financial, to decide whether we need a development activity or product diversification, decided the domestic market or internationally, it takes a merger or acquisition or not, dodge of the company's acquisition by a competitor. because no company has unlimited resources, then a strategy must have the courage to decide an alternative strategy that can have a positive impact is best in order to give maximum benefit for the company. A strategy should give a comparative advantage and could ultimately provide a competitive advantage in the long run, it must be important for management strategies.

Implementing Strategy

Sometimes called the stage of strategic management activities. In this phase of implementing this strategy the company set a goal or annual corporate goals, developing policies, motivating employees and allocate resources to a strategy that has been prepared can be executed. Implementation of this strategy includes a culture that supports the company's development, preparing the budget, utilizing information systems, motivating human resources in order to want to run and work as well as possible. Implementation of the strategy requires discipline and high performance as well as sufficient recompense. 

Evaluating and Monitoring Strategy

Evaluation and Monitoring strategy is the final stage in the process of strategic management. the whole strategy is subject to modification in the future, because of various external and internal factors will continue to have a change. 

Evaluation Strategy includes several things: 

1. Reviewing external factors and internal which is the basis for any strategy that is being executed

2. Measure the performance was run

3. Take a remedial action in the event of a discrepancy

Evaluation of this strategy is needed for the company as a success of the business is right now not be successful in the future. Often the success of a business at the present time can bring new and different problems. Thus even if a failure, then the newly emerging issues and must be faced in order to revive business activity that have failed in the big companies, the process of formulation (formulation) strategy, implementation, evaluation and monitoring strategies. There are three levels in the hierarchy, including a corporate level, the division level and functional level. 

Principles of Management Strategies

Principles of Strategic Management is divided into: 

1. Strategic Planning perk (penetrate), all the managers in various divisions must learn to think strategically, all managerial levels will be involved in the management of specific strategies in various ways. each pattern and how to wear different but still lead to the same goal, the objectives set

2. Comprehensive Planning, referring to the plan based on the needs and business development, was not made ​​at random

Components of the Strategic Management Process

There are several components in the strategy management process, including:

1. Mission Organization (company), is a description of the purpose of the company's existence. This mission includes the type, scope and characteristics of the actions to be executed

2. The purpose, goal is the end result of an activity. here will be defined what will be achieved, when, and how that should be achieved.

3. Strategies, is a skill or knowledge to win a competition. competition is a struggle for the consumer (market share) and the consumer will be amended at any time, the strategy should be managed so that they are the company's goals can be achieved

4. Policy, the policy is the way in achieving the company's objectives. policy includes guidelines, rules and procedures to support the achievement of business goals or objectives that have been defined

5. Company Profiles, describes the condition of both the company's financial, human resources (HR) and other physical resources.

6. External Environment, is all the strength that will give effect to the choice of strategy and defining the conditions of competition

7. Internal environment, internal environment includes all the elements contained in the company's business

8. Analysis of Strategies and options, it is intended to decisions in investing for the future

9. Commodity Strategy, a comprehensive general plan as well as to all major activities aimed at achieving goals in an environment that is dynamic

10. Functional Strategies, is a translation of a common strategy which will be run by division

Basic grounding for Management Strategy

Managers must be able to analyze the strategy of the main functions of the existing business and understand how it affects a strategy management process and know how to integrate it. Benefits relations with the business functions of management strategies can not be ignored. Generally, there are three main functions of business, among others:

1. Production Function

2. Functions of  Marketing

3. Financial Functions

In addition to the above there are three other functions such as HR ( human resources  ), research and development, as well as its relationship with the community. All functions have a direct influence on a very big influence on the management strategy.