In its operational activities, a company will certainly determine and implement various strategies that it can do to achieve the targets that have been set. This strategy determination process is often known as strategic management. Not only aims to achieve the company’s targets, but this thing can be a step in overcoming various problems in the company. Check out the following explanation to find out more about strategic management!
Table of Content
Strategic Management Definition
According to Investopedia, strategic management is the management of an organization’s resources to achieve its goals and objectives. In other words, this thing can be defined as a moment of decision-making to be implemented by all organization or company stakeholders to achieve the desired targets. Wheelen and Hunger (2012:53) said that this method is a set of managerial decisions and long-term decision-making actions within a company, including environmental analysis, strategy formulation, implementation, evaluation, and control.
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Strategic Management Purposes
After knowing its definition, you also need to know about strategic management purpose. What is the strategic management purpose? Here is the explanation of each purpose:
Give directions to achieve goals
To achieve the company’s goals, of course, the company manager must provide good and clear direction to all company’s stakeholders. Why is this important? With clear direction from the manager, the company can develop and achieve the desired targets.Â
Keeping good of various parties interests
In its operations, the company will have indirect contact with various parties. Generally, these parties are employees to the community. All decisions that the company makes must go through good consideration, so the decisions will not harm the relevant parties.
Anticipating the changes
Alongside the time goes, the company will adapt to the current era. One of the adaptations is making various changes, both internal and external. The presence of strategic management can be a guideline in adapting to all possible changes that exist.
Effectiveness and efficiency
Every company wants its operations to run effectively and efficiently. With strategic management, the company can make its operational activities run effectively. One of the effectiveness and efficiency aspects, in this case, can be viewed from the utilization of the company’s human resources.
Strategic Management Processes
Strategic management office planning is certainly through several processes. This process consists of three stages: strategy formulation, implementation, and evaluation. Here is the explanation of each process:
Formulation Strategy
The formulation of the company’s strategy in this stage includes the company’s vision and mission, identifying opportunities and threats that can occur, and determining the company’s strengths and weaknesses. This stage becomes an important initial stage because it determines the company’s future.
Strategy implementation
After formulating the strategy, the company can implement various strategies that have been formulated before. The company’s human resources certainly support the implementation of this strategy. To simplify your work in managing it, use the best human resource application system from HashMicro. Therefore, along with the implementation of this strategy, the company will motivate, allocate, and give direction to the company’s stakeholders.
Strategy evaluation
The last stage of the strategic management office process is evaluating the implemented strategy. The company will assess how the strategy has been implement in its operational activities. If the implemented strategy is going well, it is possible for the company to keep implementing the strategy. Otherwise, if the implemented strategy does not work properly, the company will find another alternative strategy.Â
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Conclusion
Strategic management becomes one of the success keys for the company in achieving the desired targets. The implementation of this management can certainly be successful if supported by the company’s human resources. There are three stages that the company must go through in the implementation of this management, ranging from strategy formulation, strategy implementation, and strategy evaluation. One of the purposes is to increase the company’s operational efficiency.
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