STRATEGIC

MANAGEMENT
Program Studi Diploma IV Akuntansi
Agenda
Overview of Strategic
Management
Course Outline

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AN OVERVIEW OF
STRATEGIC MANAGEMENT

The Nature of Strategy and Strategic

Management
 What is in your mind ...?

STRATEGY STRATEGIC
ISSUES

COMPETITIVE STRATEGIC
ADVANTAGE DECISIONS

STRATEGIC
STRATEGIC PLAN
MANAGEMENT

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 STRATEGY

Means by which
THE FIRM
long-term objectives
are achieved
A general plan of STRATEGY
action for achieving
goals and objectives COMPETITIVE
ENVIRONMENT

It is about winning It is all about gaining a position of

advantage over adversaries or best
It is required for success exploiting emerging possibilities
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 STRATEGY

The companys long-

THE FIRM
term plan for how it
will balance its Opportunities Threats

internal strengths
STRATEGY
and weaknesses Long-Term
with its external Plan
COMPETITIVE
opportunities and ENVIRONMENT
Strengths Weaknesses
threats to maintain
a competitive
advantage.

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 Competitive Advantage

Anything that a firm does especially

well compared to rival firms

Competitive advantage accrues to a firm when it does

something that the rivals cannot do or owns
something that the rival firms desire.

Is it different from COMPARATIVE

ADVANTAGE?

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Comparative Advantage

The benefit or advantage of an

economy to be able to produce a
commodity at a lesser opportunity
cost than other entities.

(International Trade Theory)

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Comparative Advantage

Product A Product B

Country X 10 units of labor 5 units of labor

Country Y 10 units of labor 10 units of labor

Country Y will have to forego 1 unit of A for production of

an additional unit of B, Country X will have to forego only
half a unit of A for the same.
Since X can produce B at a lower opportunity cost,
therefore it is best for it to produce and export it
(specializimg in the production of B).

Y has to forego only one unit of B for production of

additional unit of A as opposed to a loss of two units of B
in case of X. Therefore, Y must specialize in the
production of A.
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Why Competitive, NOT Comparative?

Comparative advantage can lead countries

to specialize in exporting primary goods
and raw materials that trap countries in
low-wage economies due to terms of trade.

Competitive advantage attempts to correct

for this issue by stressing maximizing scale
economies in goods and services that
garner premium prices.

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How to achieve and sustain
competitive advantage?
Continually adapting to changes in external
trends and events and internal capabilities,
competencies, and resources

Effectively formulating, implementing, and

evaluating strategies that capitalize on
those factors

This is STRATEGIC
MANAGEMENT all about ...

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 Strategic Management Defined

It is all about:
Art & science of
formulating, Creating and exploiting
new and different
implementing, and
opportunities for
evaluating, cross-
tomorrow;
functional decisions
Gaining and
that enable an
maintaining
organization to
competitive
achieve its objectives
advantage.

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 Strategic Management
ANALYSIS DECISION ACTION
1
What industries Implement strategies
Strategic goals
should we compete
(vision, mission, and Allocate the
in?
strategic objectives) necessary resources
How should we
The internal and Design the
compete in those
external environment organization
industries?

The study of why some firms outperform others

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Determine how a firm is to compete so that it can obtain
advantages that are sustainable over a lengthy period of time

How can we create competitive

How should we compete in order to
advantages that are not only unique
create competitive advantages in the
and valuable but also difficult for
marketplace?
competitors to copy or substitute?

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Strategic Issues

Fundamental policy questions or critical

challenges that affect:
an organization's mandates, mission and values
product or service level and mix
clients, users, or stakeholders, or
cost, financing, organization or management.

Trends and developments that are perceived by

decision makers as having the potential to affect
the organiations performance.

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 Strategic Decisions

Based on a systematic, comprehensive

analysis of internal attributes and
factors external to the organization;
Long-term and future-oriented but are
built on knowledge about the past and
present;
Involve choices (win-win or trade-off
between alternatives) .
Seek to capitalize on favorable situations outside the organization (taking
advantage of opportunities that exist for the firm, but it also includes taking
measures to minimize the effects of external threats as well);
Involve choices (win-win or trade-off between alternatives) .

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 Strategic Plan

A document that The step-by-step

progress the program
covers a period of 2-5
plans to make toward
years in the future: completing mission
and achieving desired
outcomes.
Who is responsible
for carrying out each
piece of the plan and
when it will be
accomplished.
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 Strategic Management Process

1 2 3
Strategy Strategy Strategy
Formulation Implementation Evaluation
Vison & Mission
Opportunities & Annual Objectives Internal Review
Threats
Organization and Extenal Review
Strenghts &
Policies
Weaknesses Performance
Long-term Objectives Employee Motivation Measurement
Alternative Strategies Resource Allocation Corrective Action
Strategy Selection

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 &
Vision

Mission
External

Internal
Assesment

Assesment
Long-Term
Objectives

Generate, Evaluate,
Select Strategies

Implement Strategies:
Mgmt Issues

Implement Strategies:
Marketing, Fin/Acct,
R&D, MIS
Strategic Management Model

Measure & Evaluate

Performance
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 Integrating Intuition & Analysis

The strategic management process attempts to organize

quantitative and qualitative information under
conditions of uncertainty
Intuition is based on: Intuition is useful for decision
Past experiences making in conditions of:
Great uncertainty
Judgment
Little precedent
Feelings
Highly interrelated variables
Several plausible alternatives

Intuition & Judgement

Involve management at all levels
Influence all analyses

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Adapting to Change

Organizations should continually

monitor internal and external events
and trends so that timely changes can
be made as needed

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 Key Terms in Strategic Management

Competitive advantage
Vision and mission statements
(External) Opportunities and threats
(Internal) Strengths and weaknesses
Long-term objectives
Strategy
Annual objectives
Policies

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COMPARING BUSINESS
AND MILITARY STRATEGY
Strategic planning started in the
military
Similarity
Both business and military
organizations must adapt to change and
constantly improve
Difference
Business strategy assumes
competition
Military strategy assumes conflict

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Strategic Management in The
Public Sector Organizations
Public sector is where we are in;
Public administration now is in the
age of results-oriented management;
that requires public agencies to
develop a capacity for strategic
management, the central managment
process that integrates all major
activities and functions and directs
them toward advancing the
organizations strategic agenda.
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COURSE OUTLINE

COURSE DESCRIPTION AND PLAN

Course Description
TOPICS
Strategy Strategy Strategy
Formulation Implementation Evaluation
Private Sector & Public Sector
OBJECTIVES/OUTCOMES

Understanding, Insights, Sensitivity, and Analytical Skills

METHODS

Self-Search for Knowledge

Student
Lecture Presentation Case Analysis Research Paper

SOURCES/REFERENCES
Textbooks (see the list on the next page).
Additional readings and cases (provided by lecturer and/or
students)

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Textbooks (Main)

David, Fred R. (2011). Strategic

Manement, Concepts and Cases.
13th ed. Prentice Hall.
Bryson, John M. (2004). Strategic
Planning for Public and Nonprofit
Organizations. 3rd ed. Jossey-Bass.

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Textbooks (Main)

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Textbooks (References)

Steiss, Alan Walter (2003). Strategic

Management for Public and Nonprofit
Organizations. New York: Marcel
Dekker, Inc.
Joyce, Paul (1999). Strategic
management for the public services.
Buckingham: Open University Press.
Rabin, Jack (2000). Handbook of
Strategic Management Public
Administration and Public Policy.
Middletown: CRC Press
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Examples of Reference for
Additional Readings
Brown T. (2010).The Evolution of Public Sector Strategy. Public
Administration Review, December 2010 Special Issue, pp. S212-4.
Collier N., Fishwick F. and Johnson G. (2001).The process of
strategy development in the public sector. In G. Johnson and K.
Scholes (eds) Exploring Public Sector Strategy. Pearson Education,
Harlow.
Hughes, O. (2003). Public Management and Administration. 3rd
ed., Sth Yarra, Macmillan Education, Chapter 7 Strategic
Management.
Joyce P. (1999). Strategic Management for the Public Services,
Buckingham, Open University Press, chapters 2, 3, 4, 5, 6.
Nutt P. and Backoff R. (1995). Strategy for Public and Third Sector
Organizations. Journal of Public Administration Research and
Theory, Vol. 5, No. 2, pp. 189211.
Nutt P. and Backoff R. (1987). A Strategic Management Process for
Public and Third-Sector Organizations. Journal of the American
Planning Association, Vol. 53, No 1, pp. 44-57.
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Examples of Reference for
Additional Readings (contd)
Alford J. (2001). The implications of publicness for
strategic management theory. In G. Johnson and K. Scholes
(eds) Exploring Public Sector Strategy. Pearson Education,
Harlow.
Smith , Peter & James L. Perry Ring. Strategic Management in
Public and Private Organizations: Implications of
Distinctive Contexts and Constraints. Academy of
Management Review, 1985, Vof, 10. No. 2., pp. 276-286.
Poister, Theodore H. & Gregory D. Streib (1999). Strategic
Management in Public Sector, Concepts, Models, and
Process. Public Productivity & Management Review, Vo. 22,
No. 3, pp. 308-325.
Johanson, Jan-Erik (2009). Strategy Formation In Public
Agencies. Public Administration, Vol. 87, No. 2, pp. 120.

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 Topics
(Fred Davids framework)refer to RPS
Part 1 (UTS) Part 2 (UAS)
Formulation & Implementation Evaluation & Cases Analysis
1. The Nature of Strategic 7. Strategy Review, Evaluation, and
Management Control
2. The Business Vision and Mission 8. Business Ethics, Social
3. The External Assessment Responsibility, and Environmental
Sustainability
4. The Internal Assessment
9. Global (International) Issues
5. Strategies in Action
10. Strategic Plan & Cases Analysis
6. Strategy Analysis and Choice
7. Implementing Strategies
Management and Operations
Issues
8. Implementing Strategies
Functional Areas Issues
For each chapter (topic), discussion will include the application of concepts
and methods for the private and public organizations.
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 Part 1 Course Plan
Class Activities Topics and Description
1 Lecture 1. Introduction to Strategic Management
2. Course plan
2 Lecture Introduction to Strategic Management in the Public
Sector Organizations
3-7 Student 1. The Business Vision and Mission
presentation 2. The External & Internal Assessment
and
3. Strategies in Action
discussion
4. Strategy Analysis and Choice
5. Strategy Implementation
8 Lecture 1. Part 1 Summary and Concluding Remark;
2. Introduction to (Overview of) Part 2 Topics and
Agenda

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 Student Presentation
Timing: 3rd meeting 7th For each chapteron a
meeting (5 meetings) random basis:
Topics: Ch. 2, 3, 4 5, 6 1st group will present the
topic (chapter)
The class is divided into
2d group will provide
10 groups (each of 3-4 comments, additional
students) reviews, and analysis
Each of 2 groups is Time allocation (60 ms):
responsible for ONE 1st group 20m
topic/chapter (and 2d group (15m)
additional, relevant Discussion (25m)
readings/cases)

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Evaluation

Exams (UAS, UTS) and assignments

(activities/participations);
Attendance rate compliance;
No cheating at all subjects;
In time submission of assignments

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Submission of written assignments

Except stated differently, all written

assignments should be submitted via e-
mail: kusmanadji1960@gmail.com
Subject of the e-mail should be:
for individual assignments: the students
NAME and the TITLE of assignment;
for group assignments: the groups NAME and
the TITLE of assignment.
No mark will be given for late submissions

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Office hour for consultation

On appointment basis, for relevant

issues
Note:
Consultation/communication via e-mail is also
suggested;
E-mail: amsp@stan.ac.id

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