Definition of Strategic Management

Definition of Strategic Management

D5655

by Hariyatno

Strategy are very important in determine the business activities in companies; strategy is very critical action in determining companies goal or competitions. Strategic management allows an organization to be more proactive than reactive in shaping its own future; it allows an organization to initiate and influence (rather than just respond to) activities and thus to exert control over its own destiny. According to Hill and Jones (2011:2) Strategy is an action that firm manager planned an implement in the company with purpose to increase company`s business performance relative to rivals. According to Armstrong (2012: 15), defines strategy as a declaration of intent which defines how to achieve the goals and heed in earnest allocation of corporate resources that are essential for the long term and match resources and capabilities with the external environment. Strategic management according to Nawawi in Akdon (2007: 10) that the management strategy is planning large-scale oriented to reach the distant future (vision), and defined as the top management decisions (decisions that are fundamental and principal), so as to enable the organization to interact effectively (mission), in an attempt to produce something (operational planning to produce goods or services as well as services) quality, the optimization is directed at achieving the goals and objectives of the organization. According to David and David (2015: 39) Strategic management can be defined as the art and science of formulating, implementing, and evaluating cross-functional decisions that enable an organization to achieve its objectives. As the definition implies, strategic management focuses on integrating management, marketing and finance/accounting, production/operations, research and development and information system to achieve organizational success. According to Wallen and Hunger (2006: 3) Strategic Management is the set of managerial decision and actions that determines the long-run performance of corporation. It includes environmental scanning (both external and internal), strategy formulation (strategic or long-range planning), strategy implementation, evaluation, and control. The study strategic management, therefore, emphasizes the monitoring and evaluating of external opportunities and threats in light of corporations` strengths and weaknesses.

Strategic management plan is, in essence, a company`s game plan, it is to exploit and create new and different opportunities for tomorrow; long-range planning, in contrast, tries to optimize for tomorrow the trends of today.