*The Evolution of Strategic ManagementT. Hani Handoko, Ph.DFaculty of Economics and Business UGM

*The History of Strategic Management Course (1)1912-Harvard Business School (HBS) introduced the course of Administrative (Business) Policy for the first time.Interactive discussion between executives and students to discuss business and management issues, both strategic and operational, find solutions introducing case methodThe concept of general management and administrative point of view1946-HBS revised its curriculum and the course of Business Policy (BP) became compulsory.BP became a capstone course

*The History of Strategic Management Course (2)1959-The Study of Gordon and Howell (1959) recommended Strategic Management to be an integrating course in the curriculum of business education. Late 1970s-The course of Strategic Management officially announced, and in the year of 1981 the Strategic Management Society was founded.

*The Short History of Strategic Management1940s-Budgetting and Financial Objectives1950s-Long-Range Planning and Formal Models1960s-Growth and Business Scope, and Corporate Identity1970s-Analysis of Competitive Advantage1980s-Strategy Implementation, Capability-Based Strategy, and Strategic alignment1990s-Strategic Leadership and Strategic Change2000s-Dynamic Strategy Making and Continuous Renewal

Sumber: Greiner, Bhambri, dan Cummings (2003)

*The Evolution of Strategic Management

Period1950s1960s1970sDominantthemeBudgetary planning and controlCorporate planningCorporate strategyMain FocusFinancial control through operating budgetsPlanning growthPortfolio planningPrincipal concepts and techniquesFinancial budgetingInvestment planningProject appraisalMarket forecastingDiversificationAnalysis of synergySBU as unit of analysisPortfolio planning matrices Analysis of experience curve and returns to market shareOrganizational implicationsFinancial management as key corporate functionDevelopment of corporate planning departmentsRise of conglomeratesDiffusion of M-formIntegration of financial & strategic controlStrategy as dialogue between corporate HQ and the divisions

*The Evolution of Strategic Management

PeriodLate 1970s and early 1980sLate 1980s and early 1990sLate 1990sDominant themeAnalysis of industry and competitionThe quest of competitive advantageThe development of competenciesMain focusChoice of industries, markets, and segments, and positioning within themAnalysis of sources of competitive advantage within the firm, and dynamic aspects of strategyAnalysis of acquisition, utilization, and deployment of resources, assets, capabilities and skillsPrincipal concepts and techniquesAnalysis of industry structureCompetitor analysisAnalysis of strategic groupResource analysis Analysis of organizational capabilityAnalysis of customer valuesAnalysis of speed and responsivenessAnalysis of competence leveragingAnalysis of competence buildingAnalysis of cognition in managing competenciesOrganizational learningOrganizational implicationsDivestment of unattractive business unitsActive asset managementCorporate restructuring and Business Process ReengineeringBuilding capabilities through MIS, HRM, strategic alliances, organizational formsBuilding strategic visionDeveloping organizational and managerial cognitionCreating and managing knowledgeBuilding organizational/strategic learning capabilities

*Are You a Strategist or Just a Manager?Do I have a strategic vision?Do I have a corporate philosophy?Do I have competitive advantages?Do my employees use their ability to act freely in the interest of the company?Have I built an organization that implements the vision and strategy?Are the line managers involved in the process of strategic management?Is the corporate culture, structure, and systems in alignment with the strategies? Do I point out directions and take new approaches?Have I been lucky in my life so far?Do I make a contribution to the development of society and myself?Source: Hinterhuber & Popp (1992)

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