STRATEGIC

MANAGEMENT
CHAPTER 1

23301005 - Putu Rio Satria Mahaditha

23301014 - Fransisca Beatrice Sidik
23301017 - Ida Ayu Kusuma Dewi
23301018 - Dewa Ayu Abhinandati Prajna Pratisthita
Key Elements in Management Strategic
1. Vision & Mission Statement
2. Environmental Analysis (SWOT)
3. Setting Objectives and Goals
4. Strategy Formulation
5. Strategy Implementations
6. Performance Measurement and Evaluation
7. Change Management
8. Leadership and Culture
9. Risk Management
10. Communication and Alignment
Sample Case:
With the sale of around 5 million shares of Chipotle stock, the burger maker is now refocusing on
Brand McDonald. Attracting more customers to McDonald ’ s remains its goal for growth. In the U.S.
market, the strategy is to leverage menu innovation; in Europe, upgrading the customer experience
and enhancing local relevance have driven management efforts; and the Asia/Pacific, Middle East, and
Africa markets have focused on building sales through extended hours.
When McDonald’s began its rapid expansion in the middle of the 20th century, there were few fast -
food alternatives. McDonald’s did more than any other company to shape the fast - food market,
picking up new rivals at every stage.
Successful companies acquire, develop, and manage resources and capabilities that provide them with
competitive advantages. For instance, McDonald's and Marriott enjoy success due to factors such as
brand recognition and operational excellence.

Key elements in strategic management involve various components that are crucial for planning, implementing,
and overseeing an organization's strategies effectively.
These key elements collectively form the foundation for strategic management, enabling organizations to navigate
the complexities of their operating environments and achieve sustainable competitive advantage.

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THE ORIGIN OF STRATEGIC MANAGEMENT
The success or failure of companies can be attributed to various factors, and while some may attribute success to luck, sustainable success
typically stems from effective management of resources, capabilities, and relationships.

1. Effective Resource and Capability Management

2. Strategic Relationships

3. Strategic Management Process

4. Strategic Planning and Execution

5. Strategic Implementation

6. Performance Measurement and Evaluation

7. Strategic Control

8. Review and Adaptation

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 Three Different Perspective in Strategic
Management
Traditional Perspective Resource-Based View (RBV) Stakeholder View
beyond just shareholders to include all
Focuses on positioning the highlights the internal resources and individuals or groups who have a stake or
organization within its competitive capabilities of an organization as the interest in the organization. This
environment. It emphasizes achieving primary drivers of competitive perspective recognizes that organizations
competitive advantage through advantage. It emphasizes leveraging are interconnected with various
factors such as market positioning, unique resources, skills, and capabilities stakeholders, including employees,
product differentiation, cost that are valuable, rare, difficult to imitate, customers, suppliers, communities, and
leadership, and responding to market and non-substitutable. the environment.
forces.
This perspective often involves Organizations adopting this perspective Strategies developed from this viewpoint
analyzing the external environment, focus on building and exploiting their prioritize the needs and interests of all
understanding competitors, and distinctive competencies to create stakeholders, aiming to create long-term
formulating strategies to gain a sustainable competitive advantages over value and sustainable outcomes for the
favorable position in the market time. organization and its stakeholders.

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Strategy Formulation: Corporate, Business, and Functional
Levels
Corporate Level Business Level Functional Level

● Diversification: Deciding which businesses ● Competitive Positioning: Determining how to ● Operational Efficiency: Developing strategies to
or industries to enter, maintain, or exit. differentiate products or services and create improve operational processes, reduce costs, and
● Portfolio Management: Managing the value for customers. enhance productivity.
organization's portfolio of businesses to ● Market Segmentation: Identifying target ● Talent Management: Developing strategies for
optimize resource allocation and strategic customer segments and tailoring products or recruiting, training, and retaining employees with the
fit. services to meet their needs. necessary skills and competencies.
● Mergers and Acquisitions: Identifying ● Growth Strategies: Developing strategies for ● Innovation and Technology: Developing strategies for
potential mergers, acquisitions, or market penetration, product development, research and development, technology adoption, and
divestitures to achieve corporate objectives. market expansion, or diversification within the innovation to drive growth and competitive advantage.
● Global Expansion: Developing strategies business unit's industry. ● Financial Management: Developing strategies for
for international growth and managing ● Strategic Alliances: Forming partnerships or financial planning, budgeting, and resource allocation
global operations. alliances with other companies to enhance to support corporate and business objectives.
● Corporate Governance: Establishing competitiveness or access new markets. ● Customer Relationship Management: Developing
governance structures and mechanisms to ● Branding and Marketing: Establishing strategies to enhance customer satisfaction, loyalty, and
ensure effective oversight and branding strategies and marketing initiatives retention through effective customer service and
accountability. to build brand awareness and drive sales relationship-building initiatives.

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Concepts Strategic Thinking and Strategic
Planning
● Strategic thinking is a mindset or cognitive process ●
that involves the ability to analyze complex
situations, anticipate future trends and developments,
STRATEGIC and formulate innovative strategies to achieve
organizational goals.
THINKING ● It involves creativity, vision, and the ability to think
critically and analytically about the organization's ●
internal and external environment
● Strategic planning is a systematic process of
setting goals, defining strategies, and
STRATEGIC allocating resources to achieve those goals.
● It involves translating strategic thinking
PLANNING into actionable plans and initiatives that
guide the organization's activities over a
specified period, typically three to five years
Strategic thinking is forward-looking and focuses on long-
term objectives, opportunities, and challenges rather than
short-term issues.
● It encourages questioning assumptions, challenging the
status quo, and exploring new possibilities to create
sustainable competitive advantages.
Strategic thinking is not limited to top management but can
be cultivated at all levels of the organization to foster a
culture of innovation and adaptability.
● Strategic planning typically follows a structured
framework, involving steps such as environmental analysis,
goal setting, strategy formulation, implementation planning,
and performance monitoring and evaluation.
● It requires input from various stakeholders, including top
management, functional departments, and external
advisors, to ensure alignment and buy-in throughout the
organization.
● Strategic planning provides a roadmap for decision-making,
resource allocation, and performance management, helping
the organization stay focused and on track towards its
strategic objectives
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Strategic Management in Lodging and
Foodservice Industries
• Top management, including CEOs, presidents, and executive leadership teams, play
1. Top Management/ a crucial role in setting the overall strategic direction of the organization.
• They are responsible for defining the vision, mission, and long-term objectives, as
Executive Leadership well as overseeing the formulation and implementation of strategies to achieve those
goals

• The board of directors or owners provides governance oversight and strategic

2. Board of guidance to the organization.
• They are responsible for approving major strategic decisions, ensuring compliance
Directors/Owners with legal and ethical standards, and representing the interests of shareholders or
stakeholders.

• Many organizations have a strategic planning committee or task force responsible

3. Strategic for overseeing the strategic planning process.
• This committee typically includes senior executives, functional leaders, and external
Planning Committee advisors who collaborate to develop and evaluate strategic initiatives.

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Strategic Management in Lodging and
Foodservice Industries
• Marketing and sales teams play a critical role in strategic management by identifying
4. Marketing and market trends, analyzing customer needs and preferences, and developing
marketing strategies to promote the organization's products and services.
Sales Teams • They are responsible for driving revenue growth and enhancing the organization's
competitive position in the marketplace

5. Operations and • Operations and quality management teams are responsible for ensuring efficient and
effective operations within the organization.
Quality • They play a key role in implementing strategic initiatives, optimizing processes, and
maintaining quality standards to enhance customer satisfaction and operational
Management performance.

6. Finance and • Finance and accounting departments provide financial analysis, budgeting, and
resource allocation support for strategic decision-making.
Accounting • They help assess the financial feasibility of strategic initiatives, monitor performance
against financial targets, and ensure compliance with regulatory requirements.
Departments
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Strategic Management in Lodging and
Foodservice Industries
• The human resources department is responsible for talent
7. Human acquisition, development, and retention within the organization.
Resources • They play a crucial role in aligning human capital strategies
with the organization's strategic objectives, fostering a culture
Department of innovation and high performance, and addressing workforce-
related challenges.

• Industry associations, trade organizations, and strategic

8. Industry partnerships can also influence strategic management in the
lodging and foodservice industries. They provide access to
Associations & industry insights, best practices, and networking opportunities,
as well as opportunities for collaboration and joint initiatives to
Partnerships address common challenges and promote industry growth

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Thanks!
Any questions?

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