Definition of Strategy Management

Definition of Strategy Management and Strategic Management Process

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Definition of Strategy Management – Management is a rapidly growing science and has many branches such as human resource management, financial management, transportation management and also Strategy Management.

The definition of strategic management, in general, is a process that determines the planning by the manager that is directed towards the company’s long-term goals. This process is also accompanied by a way or effort to achieve the goals expected.

The management of this strategy is needed by a company to deal with the speed of a market that continues to innovate and also changes in consumer patterns.

Strategy management is a series of activities to make fundamental and comprehensive decisions. In the strategy management also set the application methods made by the manager at the top level and must be implemented by the parties involved in the company to achieve the goals.

Understanding strategy management according to experts

strategic management concepts

Strategy management is a system used to unify various interrelated and influential components to go in the same direction.

This is used to deal with and respond to various changes that occur both internally and externally.

Some understanding of strategic management according to experts:

Husien Umar

The definition of strategic management according to Husein Umar is an art and science in terms of formulating, implementing and evaluating strategic decisions between functions that enable an organization to achieve its goals in the future.

Wheelan and Hunger (Strategic Management and Business Policy Massachusetts, 1995)

Strategy management is a set of managerial decisions and actions that determine the long-term performance of a company.

Lawrence R. Jaunch and William F Gluech (Management Strategy and Government Policy, 1998)

The definition of strategic management is a number of decisions and actions that lead to the preparation of a strategy or a number of effective strategies to help achieve the company’s goals.

Strategic management objectives

what is strategic management process

The aim of strategic management is to carry out and evaluate the effectiveness and efficiency of strategies to achieve goals.

For example, evaluating performance and adjusting the strategy to the environment and revising deviations or errors in the implementation of the strategy.

The following are 4 (four) strategic management objectives:

1. Provide direction to achieve long-term goals

The first management objective is to provide direction to achieve the goal. As discussed previously the management function will direct all parties within the company to the destination.

These management directives must be obeyed by all parties so that the company is expected to reach the target.

2. Maintaining the interests of many parties

Strategy management can maintain and bring together the interests of various parties involved in the company.

With the safeguarding of the needs of these various parties, it is hoped that all parties can play a maximum role in achieving company goals.

3. Anticipating all changes that occur

With strategy management, the top level managers can anticipate any changes that occur by preparing control guidelines.

Strategy management will help organizations to adapt to changes that occur. This framework will be the basis for thinking for all parties who play a role in the company.

4. Making all activities become effective and efficient

Another management goal is to ensure and make all activities within the company effective and efficient. Therefore a strategy manager must have the ability to manage all available resources to work effectively and efficiently.

In the implementation of the objectives of strategic management must pay attention to matters

  • Always carry out and evaluate each strategy effectively and efficiently
  • Evaluate, review performance, and review all decisions regarding changes in the situation. From these results, the top level manager
  • will make corrections if there is an error or deviation in the implementation.
  • Always improve management strategies so that they can adjust to changes and developments that occur.
  • Re-examine strengths, weaknesses, opportunities, and threats to the company.
  • Always innovate products to adjust to market tastes.

Benefits of strategy management

role of strategic management

The use of strategic management as a framework to solve every problem in the company.

Here are some of the benefits of strategic management for organizations:

  • The use of strategic management in the organization will produce the best decisions.
  • With the formulation of strategic management, it can improve the company’s ability to deal with various problems.
  • By engaging parties involved as employees in making strategies can increase work motivation.
  • The implementation of strategic management will make the company easily adapt to changes.
  • The use of strategic management will help companies to prevent various obstacles from outside or inside.
  • By implementing strategic management can increase the company’s profits compared to companies that do not implement strategic management.

The nature of strategy management

The basic nature of strategic management is that it always responds to changes in the environment so that they can influence management implementation and always strive to realize the goals that have been set.

Here are some characteristics of strategy management:

  • Long-term
  • Has dynamic nature
  • Strategy managers need to be motivated by top-level managers
  • Oriented and approaching the future
  • Always be encouraged and supported in its implementation of all available resources.

Advantages of strategy management

components of strategic management

According to David (2004), strategy management will make organizations more proactive compared to reactive to shape the future so that this will affect every organizational activity.

The advantage of strategic management can be divided into two, financial and non-financial benefits.

Financial benefits

According to research conducted by Miller and Cardinal (1994) states that organizations that use strategic management are more profitable than organizations that do not use strategic management.

Companies that use strategic management show an increase in sales, profits, and productivity.

Non-financial benefits

Strategy management not only helps companies to avoid companies from financial losses.

Non-financial benefits will also be obtained by companies such as increasing awareness about threats from outside the company, increasing understanding of competitor strategies, increasing employee productivity, etc.

Strategic Management Process

The strategic management process is a logical, objective and systematic approach to determining the company’s goals in the future.

But we need a clear separation between the managerial process and the process of formulating, evaluating, implementing and controlling the company’s objectives.

Experts usually divide the strategic management process into three stages, namely

1. Define the company’s main activities and develop the company’s vision and mission.

All organizations must have the vision, mission, and goals to determine the direction that the company will go.

Without having a vision, mission, and purpose, the organization’s path becomes unsystematic and the company will not focus on goals.

2. Establish organizational goals

A goal is the elaboration of the mission and the things that will be achieved by the organization or company for the long term.

This goal is the company’s work targets towards key objectives such as productivity, growth, and profits.

3. Develop company strategies to achieve goals

Strategy formulation is the determination of appropriate actions to achieve company goals. Examples of formulating strategies such as preparing a mission, identifying opportunities and threats and measuring internal weaknesses and setting long-term goals.

To develop a strategy, we can use the SWOT approach.

SWOT analysis is an approach that tries to balance the internal strengths and weaknesses of the company with external opportunities and threats.

The SWOT extension is the strength, weakness, opportunity, and threats.

  • Strength (strength) is the condition of the company being able to do all the tasks well (above the average of other companies)
  • Weakness is the condition of the company being unable to carry out its duties which can be caused by inadequate facilities and infrastructure
  • Opportunity (opportunity) is a profitable potential and does not have a competitor
  • Threats (threats) are the state of a company that experiences difficulties caused by competitors and if allowed to allow the company to experience difficulties.

4. Implementation and execution of strategies

In implementing the strategy, it is expected that the company can formulate company objectives, formulate policies, motivate employees and allocate resources so that the strategies that have been made can be implemented.

To run and execute strategies requires a lot of hard work and discipline, but also must be balanced with equal rewards.

The biggest challenge to running and executing strategies is to equalize the perception between managers and employees to work enthusiastically to achieve the goals set.

5. Conduct evaluation

To evaluate the strategy is the last strategic management process. Basically, to conduct an evaluation of strategic management can include 3 (three) things, namely:

Conduct a review of internal and external factors that form the basis of the ongoing strategy.
Measuring the performance of the strategy that has been carried out
Make improvements to the strategic errors that occur.

Evaluation of this strategy needs to be done so that the company’s objectives can be achieved and realized.


Based on the above discussion, it can be concluded that the implementation of strategic management is very important to deliver the business to achieve its objectives.

Such is the little discussion about Understanding Strategic Management and Strategic Management Processes.

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