Management of Strategy Is: Understanding to its Application

Illustration of Strategy Management (Unsplash)

YOGYAKARTA - Strategy management is a study that is part of business management. The focus of this field of study is on the development, planning, and implementation of a strategy to realize long-term targets. This field of study studies many things and its knowledge can be applied to various businesses.

Management of Strategy Is

In the book entitled STRATEGIC MANAGEMENT: A Textbook for Students written by Dra. Mimin Yatminiwati, M.M. (Widya Gama Press: 2019) it is explained that strategic management is a process or series of decision-making activities to achieve goals.

The decision-making process in strategic management is fundamental and comprehensive, accompanied by the determination of the implementation method. All aspects are made by the company or organization's leadership and then implemented by all levels.

In principle, strategy management is a process that will help a company or organization to identify what it really wants to achieve. For example, a company wants to achieve a 20 percent increase in profits compared to last year, or wants to expand its business in other cities. In order to achieve that goal, it is necessary to make a strategy management.

The Benefits of Strategic Management on Companies

Management of strategy is formed not without purpose. This study was conducted because management of strategy has several benefits as follows.

Material benefits

The management of strategies implemented by organizations is considered capable of bringing benefits compared to organizations that do not implement them. The same is true for businesses or companies, where there is an increase in sales, profitability, and productivity compared to companies that do not implement careful planning.

Non-material benefits

In addition to material, designing a strategy management is intended to bring several non-material benefits, namely as follows.

Able to identify and exploit new opportunities Having a good framework to improve coordination and control of activities Minimizing possible losses Increasing the effectiveness of time and resources Supporting the growth of a company or organizationImplementation of Strategic Management

Strategy management is carried out with various stages that have their own goals. The following are the applications that can be done.

Sensing (Detection)

The first step is that the organization or company must understand the internal and external environment in order to identify opportunities as well as threats that may occur. This step requires a lot of relevant input from people in the organization.

If data has been collected, interpretation needs to be carried out to understand and describe what opportunities and threats will befall the organization. Leaders also need to understand what weaknesses and strengths can be used for good purposes.

Formulating (Perumusan)

At this stage, it is necessary to develop the right strategy so that opportunities can be explored and threats can be suppressed. The formulation of the strategy must be in line with the company's goals.

Implementing (Implementation)

If the strategy has been formulated then the next step is implementation. This step needs to be carried out by allocating all the resources owned and needed.

Learning

Organizations must still study the results of the strategies that have been implemented, both from failures or successes achieved. With this learning process, companies can re-formulate better strategies in the future.

Understanding strategy management is something important so it needs to be paid attention to well. Visit VOI.id for other interesting information.