CONCEPT OF CORPORATE PLANNING AND
STRATEGIC MANAGEMENT

INTRODUCTION

Company's strategic plan is a long-term plan that is comprehensive, providing a formula to which companies will be directed, and how resources are allocated to achieve the goal for a certain period in a variety of possible circumstances.


CONCEPT DEVELOPMENT PHASE

Stage 1: Budget and financial control. This stage uses the budget as a tool of planning and control. Managerial actions based on short-term projections and oriented business functions, assuming a stable environment.
Stage 2: Long-term planning.
Stage 3: Planning a business strategy. Management's attention shifted from the company's internal functions (production function) to the company's external environment (marketing function). As a result, developing business diversification, there is business segmentation, autonomous business units called strategic business units (strategic business unit, SBU).
Phase 4: Strategic planning company. It is necessary to reduce the internal conflict. Integrated strategic planning which is purely administrative.
Stage 5: Strategic Management. Strategic planning is integrated not only in the sub-system of administration alone, but also various sub-systems in other management processes, such as organizational structure, information, human resource form the corporate culture as a whole. The unification of the various subsystems managerial infrastructure and the establishment of corporate culture is organized, developed and directed the strategic management.




BENEFITS AND THE ROLE OF STRATEGIC PLAN

 Determine the limits of business / business. Selecting the focus area of ​​business that will be developed based on all layers of management.

 Provide direction of the company. Menentuan business boundaries and direction of the company are two sides of same coin which underlies or produced. Secondly it is the basis of priority setting corporate policy and action in the face of environmental change.

 Directing and shaping corporate culture. Strategic plan to support the direction and the formation of corporate culture through a process of interaction, bargaining, or reciprocal communication.

 Maintain a consistent policy and appropriate.

 Maintain flexibility and stability operations.

 Facilitate the preparation of the annual activity plan and budget.


OR METHOD OF MAKING APPROACH
STRATEGIC PLAN

This approach can be categorized into two groups based on the scope and point of discussion on the one hand and the emphasis on process or outcome on the other. In the first grouping, according to Porter, there is a classical approach to dealing with non-classical approach. Then, in the second group there are behavioral approach to dealing with the administrative approach.

1. Classical Approach
The classical approach was introduced by Porter to distinguish common with their own approach. In the environmental analysis included all factors of business environment, either directly or indirectly, so it is global.

This approach is relatively easy because of two things: the information required is global and simple techniques used.

2. Non-Classical Approach
Non-classical approach or the approach focuses on the analysis of Porter's competitive position, so that only the immediate environment of the relevant companies. This approach requires that sufficient information about the parties in the competitive environment. Results are specific about the strategies selected companies.

3. Administrative Approach
The focus of this approach is an official document of strategic plans containing qualified direction and corporate strategy. This approach is less attention to factors and varying levels of commitment and management areas.

4. Behavioral Approach
Contrary to the administrative approach. The emphasis of this approach are the main benefits of a strategic plan rather than on the results of official documents, but on the commitments, agreements, behaviors resulting from the process of drafting the document.


STAGE AND FRAMEWORK ARRANGEMENT
STRATEGIC PLAN

 Formulation of the company's mission;
 Analysis of advantages, weaknesses, opportunities and threats (SWOT);
 Determination of the direction, objectives and strategies;
 Identify the programs and financial projections.

CONCEPT OF STRATEGIC PLANNING


STRATEGIC MANAGEMENT, BUSINESS POLICY,
STRATEGIC PLANNING AND

According to Wheelen and Hunger (1987) strategic management is the set of managerial decisions and actions that determine the performance of business entities in the long run. MS includes the formulation, implementation, and evaluation or control strategy. Thus, the study of strategic management focuses on activities to monitor and evaluate opportunities and environmental constraints, in addition to the strengths and weaknesses of the company. In this case, strategic planning is part of MS, because it does not include the implementation, evaluation, and control strategies, but only includes the formulation of strategy.

On the other hand, is a study of business policies that are integrative and comprehensive as it is more likely to look into the company, with emphasis on the problem of the efficiency of utility-owned resources company. Thus, the formulation of business policy focuses on the general guidelines that allow a better achievement of the mission and goals of the company. So, in strategic management business policy are also covered, but with greater emphasis on environmental aspects and strategy.


EVOLUTION OF MANAGEMENT STRATEGY

According to Gluck, Kaufman and Walleck (1982), there are four phases of the evolution of strategic management:
Phase I: Basic Financial Planning: to seek operational and managerial control either by using the budget as an instrument.

Phase II: Forecast-based planning: seeking a more effective planning system to achieve corporate growth, by estimating a future state for a longer time.

Phase III: externally oriented planning: seeking increased sensitivity to the market and competition by trying to think strategically.

Phase IV: Strategic management: seeking to organize all the resources available to develop the competitiveness and membantuk create the future.

Hax and Majluf (1984), the evolution of strategic management consists of five levels:
I. Bugeting and financial control with the budget as an instrument;
II. Long range planning;
III. Businees strategic planning;
IV. Corporate strategic planning: an integrated long-term planning.
V. Strategic management.


STRATEGIC MANAGEMENT PROCESS MODEL

Hax and Majluf (1984) distinguish two kinds of strategic management process, namely the level of business units (business) and enterprise (corporate).

Strategic Business Planning:
 The mission of the business units.
 Formulation of business strategy and program.
 Formulation and evaluation of specific programs.
 The allocation of resources and performance measurement for management control.
 Budgeting business unit level.
 Approval budgeting of a strategic and operational funds.

Corporate Strategic Planning:
 Vision business entity.
 strategic posture and planning guidelines.
 The mission of the business units.
 Formulation of a comprehensive strategy and work program.
 Formulation of functional strategy.
 Consolidation of strategic business unit and functional strategies.
 Determination and evaluation of specific work programs business unit.
 Determination and evaluation of specific functional work program.
 The allocation of resources and determination of performance measurement.
 Budgeting business unit level.
 Budgeting functional level.
 Konsolisasi budgeting and approval of strategic and operational funds.

Strategic planning model by Pearce II and Robinson (1988) did not distinguish between strategic planning for business units and business entities.
 Company mission.
 Company profile.
 External environment.
 Strategic analysis and choice.
 Long term objective
 Grand Strategy (primary and comprehensive activity plan).
 Annual objectives
 Functional strategies.
 Policies