The importance of strategy management

Written by Student Reporter (Deo Fernando, Entrepreneurship 2021)

“Strategy Management is the art and science of formulating, implementing, and evaluating cross-functional decisions, which enables an organization to achieve its goals,” said Yulendra Prasetyo who is a former team leader of strategic management in PT. Pamapersada Nusantara when revealing his lecture on Saturday (31/10/2020). 

 

Nowadays, many companies have been affected by Covid-19. Not only the Pandemic, but also there were many changes around the business environment, such as regulations & geopolitics, infrastructure development, technology, and social demography. As a result, the implementation of strategic management was crucial in facing this situation. “With the uncertainty from the consumers and competitors, we need strategy management. Companies that implement strategy management systems have better performance than those that do not,” said Yulendra.

 

In his presentation, he also discussed the case of PT ASDP. It is a state-owned company that engages in ferry transportation services and ferry port management for passengers, vehicles, and goods. Due to the presence of the Suramadu bridge, resulted in the port being deserted. Consequently, PT ASDP suffered lots of losses and experienced difficulties. Yet, with strategy management through using diversification strategy, PT ASDP shifted to other business models such as running open maritime destination tourism in Surabaya (Surabaya North Quay), building a meeting hall (Grand Varuna Convex), and an office tower (Pelindo Office Tower) showing the result that it can survive in that situation. “Diversification is one of the strategies to be applied when we face changes. This strategy is used by proposing a new product with a new market”, said Yulendra.  

Then, Yulendra also explained the strategy management’s framework. There are strategy development, translating the strategy, aligning the organization, planning operation, monitor & learn, and test & adapt. “Strategy development is the process of assigning the priorities that we want to achieve in the future,” He said. 

Lastly,Yulendra revealed some questions should be answered by any corporate leader when formulating the strategies, among them : 

  1. Where we are now. It is about current conditions that are faced by companies such as market, competitors, and performance.
  2. Where we are going. The direction of the company’s goals must be aimed at following what was believed by the manager for business development, by strengthening market position, and company performance in the future.   
  3. How do we get there. Arranging and implementing the strategy in order to bring the company to the goals.