Thursday, 11 January 2018

What is a management strategy?

Management strategy is a set of decisions and actions that are use to formulate and implement strategies that empower the high competitive and fit for the company and its environment to achieve the goals of the organization.

What is a management strategy?  Management strategy

Some frequently asked questions managers such as:

  • changes and the trend of what happened in a competitive environment?

  • who are our customers?

  • product or service what should we offer?

  • how we are able to offer products and services as efficient as possible?

The answer to the above questions can help managers make a choice on how to re position the organization full of competitors.

The Purpose of Management Strategy

Implementing and evaluating the strategy chosen effectively and efficiently. Evaluate performance, review and reassess the situation and do various adjustments and corrections if there are irregularities in the implementation of the strategy.

Continually updating the strategies formulated to suit the development of the external environment.

Always review the strengths, weaknesses, opportunities and threats of the business there. Always innovating on products to suit the tastes of consumers.

Benefits Management Strategy

The activity of the formulation of strategy will increase the company's ability in resolving the issues facing the company. Process management strategy will deliver the best results because the interaction group collects a variety of strategies.

Employee involvement in the formulation of the strategy will be able to refine their understanding over the award of productivity in every planning strategy and thus can heighten their motivation. Application of Management strategies make the management of the company to be more sensitive to the threats that come from outside the company.

The results showed that organizations using the concept of management strategy would be more profitable (profitable) and more successful than not applying it.

Great Strategy

Is the public plan in the form of actions large companies used to achieve long term goals. The great strategy of distinguishable in 3 categories:

  • Growth (Growth): it can be done internally include the development of new products or old products that are experiencing changes and externally by acquiring additional divisions or business diversification which means acquiring a business related to the product line at the time.

  • Stability (Stability) or strategy: the meaning is that the organization wants to remain at the same size or grew slowly in ways that can still be controlled.

  • Trimming (Retrenchment): Meaning the Organization forced through a period of decline with shrinking business units that exist today or sell or liquidate entire business units.

Global Strategy

In the international arena, companies are facing a dilemma between global integration strategies and national responsibility (national responsiveness). The Organization must decide if she wants any affiliates acting in autonomous or whether the activity performed must be standardized and centralized government across the country. There are 3 categories of global strategy:

Strategy of globalization (Globalization Strategy), was the standardization of product design and advertising strategies around the world.

Multi domestic strategy a modification of the design of the product and advertising strategies. To accommodate the specific needs of each country. It means multinational companies exist in a number of countries. But advertising and design products adapted to the specific needs of each country.

The strategy of Transnational (Transnational Strategy), that is a strategy that combines global coordination to achieve efficiency with flexibility to meet specific needs in the various countries.

Levels of Strategy

There are three levels of strategy in the Organization, namely:

  • Corporate-Level Strategy (Corporate Strategy)

  • Business-Level Strategy (Business Strategy)

  • Functional-Level Strategy (Functional Strategy)

  • Corporate-Level Strategy (Corporate Strategy)

Set by the highest levels of Management within the Organization and lead to business. What will be done and how resources are allocated among the business.

  • Corporate strategies generally involve long-term goals related to the overall organization and financial investments directly.

  • The Business Level Strategy (Business Strategy): Defined by each business unit strategy. Business strategies are usually formulate by the managers of the business levels.  Through negotiations with corporate managers and focus to how to compete in the business world.

  • A business strategy must go through and retrieved as well as supported by the corporate strategy.

  • A Functional Level Strategy (Functional Strategy): Has a narrower scope than corporate strategy again and business strategy. Connect with business functions such as marketing, production function, the function of HR, financial functions, functions of research and development (R & D).

Functional strategies should lead to business strategies. Even and concepts they most of all is depend on the results of the answer to how to implement it.

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