INTRODUCTION TO MANAGEMENT Subarjo Joyosumarto SE, MA, Ph.D 23 Januari 2017 Meeting 5: Overview of Meeting 4 Chapter 9. Strategic Management

Overview of Meeting 4

WHAT IS PLANNING PLANNING Is defining organization’s goal, establishing strategies for achieving those goals, and Developing plans to integrate and coordinate work achievement

WHY DO MANAGERS PLAN? Four reasons: Planning provide directions to manager and non manager: What are they trying to accomplish, What they must contribute to each goal Coordinate activities Cooperate with each others Planning reduces uncertainty Force managers to look ahead Anticipate change Consider the impact of change Develop appropriate responses

WHY DO MANAGERS PLAN? Planning minimize waste and redundancy Work activities are coordinated around plans Inefficiencies because obvious, and can be corrected or eliminated Planning establishes the goals or standards used in controlling Managers can control and see whether the plans have been carried and to meet the goals

TYPE OF PLANS

GOAL SETTING

PLANNING AND ORGANIZATIONAL LEVEL

CHAPTER 9. STRATEGIC MANAGEMENT

STRATEGIES STRATEGIC MANAGEMENT Is what managers do to develop the organization’s strategies Is an important task involving all the basic management functions (planning, organizing, leading and controlling) STRATEGIES Are the plans for how the organization will do what it’s in business to do , How it will compete successfully, And how it will attract and satisfy its customers in order to achieve its goals

WHY IS STRATEGIC MANAGEMENT IMPORTANT? It can make a difference in how well an organization performs. With strategic management , organizations have higher level of performance In the changing situation, using strategic management to examine relevant factors and decide what actions to take Organizations are complex and diverse, strategic management helps each party of organization work together toward achieving the organization’s goal

6 STRATEGIC MANAGEMENT PROCESS (2) (1) (4) (5) (6) (3) Strategic management is: What managements do to develop the organization’s strategies

6 STRATEGIC MANAGEMENT PROCESS (1). Identifying the organization’s current mission, goals and strategies Mission : a statement of an organization’s purpose Goals (= objectives): desired outcomes or target Strategies are the plans for the organization will do : What it’s in business, How it will compete successfully, How it will attract customers, How it will satisfy customers In order to achieve organization’s goal

6 STRATEGIC MANAGEMENT PROCESS (2). External analysis Opportunities are positive trends in the external environment Threats are negative trends in the external environment (3). Internal analysis Strength are any activities the organization does well or any unique resources that it has Weaknesses are any activities the organization does not do well on or resources it needs but does not posses

6 STRATEGIC MANAGEMENT PROCESS SWOT analysis is an analysis of : Strengths Weaknesses Opportunities, and Threats Internal Contoh: Rumah Makan “Sederhana” di Kemang Strengths Makanannya enak Gedung baru Weaknesses Jumlah pegawai kurang Modal terbatas Opportunities Banyak berdiri kantor baru Harga bahan mentah turun Threats Banyak restaurant buka Pajak makin tinggi External

6 STRATEGIC MANAGEMENT PROCESS (4). Formulate strategies Is considering the realities of: the external environment, their available resources, Capabilities, in order to design strategies that will help the organization achieve its goals (5). Implementing strategies (6). Evaluating results

QUESTIONS FOR DISCUSSIONS Explain why strategic management is important Describe the six steps in the strategic management process Buatlah SWOT Analysis tentang Indonesia Banking School

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