Strategic Management

Strategic management is the process of specifying the objectives of an organization, policy development and plans to achieve those objectives, and allocating resources in order to implement the plans. And 'the highest level of managerial activity. It is not a task, but rather a set of managerial skills that should be exercised throughout the organization, in a wide range of functions.

An organization's strategy must be appropriate for its resources, environmental circumstances, and objectives. The process involves matching the company's strategic advantages for the business environment the organization faces. One of the objectives of an overall business strategy is to put the organization can fulfill its mission effectively and efficiently.

A good corporate strategy should integrate an organization's objectives, policies and tactics into a coherent whole, and must be based on business realities. Business enterprises can fail despite the strategy of 'excellent' because the world changes in ways that could not understand. Strategy must connect with the vision, purpose and likely future trends.

Strategic management can be seen as a combination of strategy formulation and implementation of the strategy, but the strategy must be closely aligned with a purpose.

The formulation of the strategy is to do a situation analysis: both internal and external, both micro-environmental and macro-environmental setting goals - crafting vision statements (long-term view of a possible future), statements of mission (the role that the organization gives itself in society), overall corporate objectives (both financial and strategic), strategic business unit objectives (both financial and strategic), and tactical objectives, and planning. This three-step process of strategy formulation is sometimes described as determining where you are now, determine where you want to go, and then decide how to get there. These are the essence of strategic planning.

Implementation of the strategy provides sufficient resources (financial, personnel, time, technology support), creating a chain of command or some alternative structure (such as cross functional teams), assigning responsibility of specific tasks or processes specific individuals or groups, managing the process - monitoring results, comparing to benchmarks and best practices, evaluate the effectiveness and efficiency of the process, checking for changes and adjustments to the process if necessary. In the implementation of specific programs, it comes to acquiring the necessary resources, developing the process, training, process testing, documentation and integration with existing processes.

Strategy formulation and implementation is a continuous, never ending, integrated process that requires continual review and reform. Strategic management is dynamic. This is a complex pattern of actions and reactions. It is partially planned and scheduled in part. The strategy is both planned and emergent, dynamic and interactive.

For strategic management to be successful, organizations fail to follow the plan. They must be guided by the number of objectives that have made, imagining a prosperous business. They must strive to understand customers more thoroughly. The overestimation and underestimation of resources skills needs of time should be avoided. Employees and management should be achieved through commitment to maintain open channels of communication and healthy. More importantly, management should acquire the ability to predict the reaction environment and manage change.

Ismael D. Tabije ......