Strategic management is ideas and injunctions that permit the business achieve its purpose or long-term target to perform an improved performance. The goal of proper management is to seek the opportunities for better future of the business. Generally, good proper management techniques can increase the organization performance and achieve the organization target aims. The strategies on a business are made by the management itself to guarantee the successful of the organization. The proper management process consists of three stages which can be strategy formulation, strategy execution and strategy analysis.
1. INTRODUCTION
Today, there are many definitions of proper defined by various writers and by refer to Mintzberg et al. (1998), the definition of proper is common and there is no single. The others publisher, Chandler (1962) as the American business historian is the first person who defined tactical as persistence of the essential long-term goals and objectives of an business, and the adoption of classes of action and the allocation of resources essential for undertaking those goals. Inside the context of development, Channon (1978) identified strategy in term of the extent of diversification, international activity and acquisition insurance plan. Mintzberg (1994) portrays strategy as an idea - a path, a guide or Strategic Management Practices in Malaysian Development Industry 142 course of action into the future - so that as a structure, that is, constant in behavior as time passes.
Strategic management has changed into a more sophisticated and potentially more powerful tool (Stoney, 2001). The strategic management stages need a person who is competent to take care of this process more effectively and to make sure that its success (Stahl and Grigsby, 1992). To make sure organization success and can get over any barriers that happen during proper management process, the top management of a business must play their tasks through involvement in the process, through dialogue and contribution. The aim aim of the process is to achieve the understanding and dedication from top management and employees.
2. Strategic Management in General STRATEGIC MANAGEMENT IN GENERAL
There are numerous meanings that are identified by various creators. According to David (1997) proper management is the art and science of formulating, utilizing, evaluating cross functional decision that enable organization to accomplish its goals. Wheelen and Cravings for food (1984) say that tactical management is a couple of managerial decisions and activities that establishes the long-run performance of an organization. It offers environmental scanning (both exterior and inner), strategy formulation (strategic or long-range planning), strategy implementation and evaluation and control. Wheelen and Food cravings (2003) noted that folks whatsoever levels, not merely top management, need to be involve in proper management; scanning the surroundings for critical information, suggesting changes to strategies and programs to use advantage of environment shifts, and working with others to consistently improve work methods, steps, and analysis techniques by dealing with other folks in the organization.
3. FINDINGS
Stages in Strategic Management
Strategy Formulation
The first period is strategy formulation. Certo and Peter (1991) stated that strategy formulation want to ensure that the organization achieve the goals they have been made. David (1997) said that strategy formulation includes the decision on what business to conduct, how to allocate the resources, and whether want the business sign up for or enter to international market. Besides, David also mentioned that strategy formulation phase includes developing a vision and mission, identifying a business external opportunities and threats, determining internal power and weaknesses, establishing long-term objectives, creating alternate strategies, and finding the right alternative strategy to be pursue. He also said that issues in tactical management includes deciding what home based business to enter in, what business to forego, how to allocate resources without hostile takeovers, whether to broaden operations or diversity, whether to merge or form a jv, whether to type in international markets and how to avoid a hostile takeover.
ROLES OF Brains IN STRATEGY FORMULATION
Good brains is not necessarily going to make a great strategy while successful strategies are derived from good intelligence pertaining to a company's total business environment including the competition. There is certainly some intellect role in strategy formulation. Among them are: -
- Explaining the Competitive Environment.
Intelligence examination must to carry out their responsibilities, so that the company can compete with the challenging environment over time. Besides that, brains also needs to determine the causes of the business's competitive environment, including rivals, customers, products, the structure of the industry in which they all perform, and the sort of competition, such as price performance, and technology.
Forecasting the Future Competitive Environment
Intelligence department can provide predictions of future business for the business, especially in the competitive environment where the company is likely to find itself. Business brains estimate is the most appropriate cleverness products to represent the competitive environment in the future, to be one entirely different from the business environment which it competes in today.
Identifying and Compensating for Exposed Weaknesses.
Company's own weaknesses and vulnerabilities can be identify and examine by using intellect department. Usually whenever a company is about to launch a new strategy or enter in a market or business that it hasn't participated in before, this ability is specially valuable because your competition will probably have evaluated the newcomers talents and weaknesses and can exploit those weaknesses that are truly vulnerabilities. Before going into the new business arena, companies should be aware of his own weaknesses prior to the occurrence of a competition. That is to ensure that the business is always prepared to take corrective action or formulate new strategies so that the company is not damaged.
Using Intellect to Implement and Adjust Strategy to the Changing Competitive Environment.
After the new strategy have been designed and analyzed, then it goes through two distinct stages of implementation. First execution of the first phase is when competitors began to discover and react to the strategy's salient features. While the second phase is developing a more complete and appropriate group of activities to counter your strategy. The intellect that you accumulate during both unique phases of execution are critical to the long-term viability of your new strategy because comprehensiveness, timeliness, objectivity and examination are essential in both of these period. Few US companies can handle handling such effective business cleverness operations and therefore formulating the correct ongoing business ideas necessary to continuously adjust their strategy to the changing competitive environment.
DESIGNING A STRATEGY FORMULATION PROCESS FOR NEW, TECHNOLOGY-BASED Companies: A KNOWLEDGE-BASED APPROACH
When open innovation models are being released on the market, innovative companies must taking more and more open varieties, so that a organization can create the technology process in a knowledge-based modern culture. Furthermore, the company also can build porous borders to incorporate their own knowledge and competencies with others. The first step is to recognize useful knowledge among employees and stakeholders of the NTBF (new technology based firm), in order that they do not require further discussion. However, in the exterior environment, identify useful knowledge is much less easy when i thought. There are many questions that must be answered to continue from knowledge id to copy knowledge :-
Who has the requested knowledge?
This question is more relevant when searching on the list of users of the NTBF but also a "who is aware the whereabouts of the requested knowledge?" which is more relevant when the requested knowledge lies beyond your firm.
What are our relationships with the actor holding the wanted knowledge?
Question such as this is to identify ways to strengthen fits in the relationship with the acting professional/partner holding the wanted knowledge. What drives this relationship? Is it predicated on friendship, a strategic alliance, a mutually-beneficial method of trading, or a potential collaboration etc. ?
What is the nature of the wanted knowledge?
The third question relates to the knowledge complexness that determines the ability to accomplish the data transfer because it is must be regarded within the platform of a specific knowledge purchase, between specific people in a particular context.
How can we copy this knowledge and what is the compensation requested for this copy?
The fourth question related to the readiness of the "owner knowledge" to talk about knowledge because knowledge transfer process can't be determined in advance, and this is determined by the intricacy of knowledge and the absorptive capacity of the receiver to make the transfer.
Apart from payment, are there additional costs associated with the transfer?
The fifth question will try to examine the non-monetary cost associated with the copy of knowledge. As mentioned preceding, a NTBF's resources are limited and valuable and the cost to soak up a knowledge copy might show costly in conditions of man days and nights of key participants of the NTBF.
Does this knowledge transaction contribute to the forming of a "collaborative" competitive benefit?
The final question concerns the study of the probability that knowledge purchase is part of the formation of a knowledge-based proper alliance creating a lasting competitive advantage that is difficult to imitate.
Strategy Implementation
The second stage is strategy implementation. In this phase, Sharplin (1995) said that all the business activities or business strategies must be based on the proper plan made. Group must set up the goals and guidelines of the company so that all the employees really know what they should do to attain the company goals. Besides, the business must also do something to ensure that the employees are encouraged to do the job, and resources have to be allocating to implement formulated strategies. Effective strategy implementation is actually important to the organization. Structured to Certo and Peter (1991), effective strategy execution is very important to find the benefits of carrying out an examination of organizational, establishment of organizational way and formulating.
APPRAISING THE ROLE OF STRATEGY Execution IN EXPORT PERFORMANCE: A CASE FROM Midsection EAST
They are various point of views to establish and identify the strategy execution. Strategy implementation may be define as an activity inducing various kinds of organizational learning, because both environmental risks and strategic responses can make something happen for organizational learning operations (Lehner, 2004). Strategy execution is a mixture process of implementing strategies, procedures, programs and action packages that helps a company to take the benefits associated with opportunities in the competitive environment by using wisely and usefully its resources (Harrington, 2006). Strategy implementation is also can be defined that the companies can identify the near future opportunities as a energetic process (Schaap, 2006). On the field of studies in strategy execution, it must be done with the international perspective. In Hrebiniak conceptual framework there are a few suggestion about the main element factor for strategy implementation such as of command, facilitating global learning, producing global managers, developing a matrix structure and dealing with exterior companies for international environment. Besides that, there are other framework presented by Yip, that included organizational structure, culture, people and managerial process (Okumus, 2003). You will find two groups of factors which is operational (budgeting, structure) and managerial (culture, leadership) that had been identify in this analysis of calculating the strategy implementation.
STRATEGY IMPLEMENTATION AND CONTROL
During an action, strategy implementation is a managing forces and targets efficiency. It really is primarily an functional process, requires special determination and control skills and requires the combination among many specific.
There are some many of issues that entail in strategy implementation which is :
Strategies aren't lead to action and have to be triggered through implementation.
Plan should be lead in strategies. Consequence of plan in several kind of programmes.
Formulation of assignments must lead to programmes. Separate allocation of finance is requires and it must be completed within a time given.
The needed infrastructure for the day-to-day functions create of Jobs create within an organization.
Strategies implementation is not limited by formulation of strategies, programmes, and tasks. Resources would require in assignments. After it's been provided, it might be essential to visit a proper organizational structure was created, systems have been installed, devised the functional policies, and different behavioural inputs are given to make sure the ideas may work.
Below is the problems in strategy implementation that should be considered :
Project implementation
Procedural implementation
Resource allocation
Structural implementation
Functional implementation
Behavioural implementation
THE ROLE OF STRATEGIC Authority IN EFFECTIVESTRATEGY IMPLEMENTATION: PERCEPTIONS OF SOUTH AFRICAN STRATEGIC LEADERS
The success and need for strategy implementation
In some of organizations from South African, it was found that the strategy execution is more important than strategy formulation and can be note that the ability to implement a technique in an company is much more likely important than the capability to formulate a strategy in an company. Strategy execution can be more difficult than the strategy formulation. This study was founded that the effectiveness of strategy implementation in South African organizations can help the organisation to gain the potency of organisation. It can show that, the strategy implementation more efficiency to be used it within the organisation.
Barriers to effective strategy implementation
There are some barriers to achieve the success of strategy execution :
The labor force are inadequately to understanding of the strategy and the the majority of important obstacles to effective strategy implementation will there be are an ineffective communication of the strategy on the list of workforce
Another major hurdle to a highly effective strategy execution is strategic command is not recognized.
Drivers of strategy implementation
The importance of the drivers of strategy execution :
The most significant driver of strategy execution is strategic leadership.
Strategic management contributes favorably to the effective execution of a technique within an organization
Many all of authors explained that the main element of strategy execution is strategic authority (Hrebiniak 2005; Collins 2001; Useem 1998, 2001; Locke & Kirkpatrick 1991; Freedman & Tregoe 2003; Hitt et al. 2007; Hsieh & Yik 2005; Bossidy & Charan 2002; Thompson & Strickland 2003; Hussey 1998; Kaplan & Norton 2004). In fact, the potency of strategy implementation is based on the strategic market leaders of the company and to have the effectiveness to applying strategy within the organisation, it is only through effective proper command. (Hitt et al. 2007).
The role of proper leadership actions in strategy implementation
The most important role in effective strategy execution is the proper command. The other of quite functions in strategy implementation is development of real human capital, the exploitation and maintenance of key competencies. The development of public capital is the tactical authority action is to experiment with the least important role in effective strategy implementation.
Strategy Evaluation
The last stage of this management process is evaluation. Weiss (1972) explain the goal of evaluation as calculating the consequences on given task whether it is in line with the goals and target of the organization. Thus, an improvement or corrective action should be taken after the evaluation has been made. It is actually important to employ a SWOT analysis to figure out the talents, weaknesses, opportunities and hazards for both exterior and interior factors. This may require taking certain protective measures to change the whole strategy. Research methodologies have to be used to quantify the results from the analysis contrary to the goals that has been made to create successful. Weiss concur that goals are actually important in an evaluation to enhance the performance. Evaluation done by critiquing current strategies, measure the performance and take the corrective activities. The need of your evaluation is to know the success of the organization. Certo and Peter (1991) explained that the evaluation needs information about strategic performance to compare it with existing criteria.
Balanced scorecard (BSC) can be an example of about the most approaches to evaluate the organization performance. It was first launched by Kaplan and Norton (1992. 1996a). The BSC typically is a method that allows a business to indicate its eyesight, develop and talk a strategy to achieve the established vision and convert the developed strategy into action.
4. Conclusion
In general, tactical management may be used to determine mission, eyesight, values, goals, goals, roles and obligations. Strategic management is important in the organization to learn the objectives and the purpose of the organizations. The type of tactical management also require about the procedure or periods. This research was focused on the tactical management process. Strategic management process has three levels which is strategy formulation, strategy execution and strategy evaluation. The proper management process is now more widely employed by small businesses, large companies, nonprofit corporations, governmental organizations, and multinational conglomerates alike. It presents a logical, systematic, and objective methodology for deciding an organization's future route. All of the three levels of the process were very important to all the business. It is because those process are more likely as a guide to the organization to manage their organization. With out a proper strategy the successful and the efficiency cannot be appear. A good strategist ideas and controls his or her plans, whereas a poor strategist never plans and then tries to regulate people. We are able to conclude that the strategy is important within the organization which as a course for organization to manage their management.
"With out a strategy, an organization is similar to a ship without a rudder, on offer in circles. It's just like a tramp; it has no spot to go. " - Joel Ross and Michael Kami
