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THE ROLE OF STRATEGY PLANNING TO ACHIEVE ORGANIZATIONAL

GOALS IN UNCERTAINTY SITUATIONS IN MSMES IN INDONESIA

Hartono Subagio

Universitas Ciputra, Surabaya, Indonesia

hartono.subagio@ciputra.ac.id

ABSTRACT

In Uncertainty Situations Various efforts and support have been made by the government to

protect its people from various sectors. This article will discuss the strategic management of

MSMEs in dealing with the impact of the pandemic on the Emergency PPKM policy. The

purpose of this article is to find out the right MSME strategy during the current pandemic. This

article uses a qualitative descriptive research method through a literature approach. The results

of this research show that strategies that can be used by MSMEs in dealing with the pandemic

and emergency PPKM policies include (1) digital marketing strategies. (2) strategy to improve

services based on creative innovation (3) strategy to improve the quality of human resources.

Keywords : Economic Growth, Manufacturing, Industry

INTRODUCTION

With the increasingly globalization of the world economy and the era of free trade,

small and medium enterprises (SMEs) in Indonesia can also be expected to become one

of the important players. SMEs are expected to be market creators at home and abroad

and as an important source of trade and services balance surpluses or balance of payments.

To carry out this role, Indonesian SMEs must improve themselves, namely creating global

competitiveness (Astuti, 2019).

Nationally, small and medium enterprises have a very important and strategic

position, potential and role in realizing national development goals in general and

economic development goals in particular. This role can be seen in terms of providing

business opportunities, employment opportunities and increasing exports (Sofyan, 2017).

It can be seen that small and medium businesses are better able to survive the economic

crisis, because they have characteristics that are more flexible and make better use of local

resources so they can be relied on to support economic resilience. However, small and

medium enterprises in their development still face various problems that need attention

from various parties, including: (1) low productivity, unprofessional human resources and

management, lack of responsiveness to technological changes and lack of capital, (2)

access markets that are not yet adequate, including distribution networks that function as

marketing channels that are not yet running efficiently, (3) there are no signs of

improvement in the national economy and (4) challenges from the development of free

trade both in the context of AFTA, APEC and GATT cooperation/ WTO which will have

an impact on increasing business competition.

The various problems above can be overcome if small and medium entrepreneurs

are able to develop their businesses creatively and innovatively by always being market

oriented, improving quality, productivity and competitiveness by utilizing existing

resources and always following developments in information and technology. Therefore,

there is a need for policies for the guidance and development of small and medium

enterprises that can push them towards being more advanced and independent and able to

increase their role in the national economy. Data from the State Minister for Cooperatives

and Small and Medium Enterprises (Menekop & PKM) shows that in 2000, there were

around 38.99 million small businesses with average annual sales of less than IDR 1 billion

The Role of Strategy Planning to Achieve Organizational Goals in Uncertainty Situations in MSMES in

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62 Return: Study of Management, Economic And Business, Vol 3 (1), January 2024

or around 99.85% of the number of companies. in Indonesia (Tambunan, 2001) Although

the existence of SMEs and SMEs plays a very important role in the development of

economic conditions, the characteristics inherent in SMEs can be advantages or strengths

that actually become obstacles to their development (growth constraints). The

combination of strengths and weaknesses as well as the opportunities and challenges of

all of them with the external situation will be able to determine the development prospects

of SMEs themselves.

A good organization is one that has clear goals based on the vision and mission

agreed by its founder. To realize this goal requires a way to achieve it which is commonly

referred to as a strategy. Next, plans, policies and achievements and action programs are

prepared. In its application, the above elements may experience changes as a result of the

assumptions used in planning not being fulfilled, for example because the resources

obtained do not match expectations. It can also be caused by goals that are too abstract so

that they are very far from what is expected. Every organization certainly has a plan, and

within the company scope we know the term strategic planning, where this strategic

planning can help us evaluate periodically to achieve goals, help the company to progress

and develop, increase market share in the midst of increasingly sharp business

competition (Allison & Kaye, 2005).

In the Indonesian economy, MSMEs play an important role as a means of economic

equality, a means of reducing poverty levels, and a means of earning foreign exchange

for the country. With the existence of MSMEs, job opportunities are increasingly wide

open, which has a positive impact on the community's employment economy. MSMEs

can reduce the unemployment rate in Indonesia. MSMEs are one of the sectors affected

according to a survey conducted by the Katadata Insight Center. The survey results

showed that as many as 82.9% of MSMEs felt the negative impact of this pandemic.

Therefore, management strategies are needed to deal with business situations that result

in uncertain conditions and are susceptible to change (Volatility), causing conditions of

uncertainty (Uncertainty), situations full of complexity (Complexity), and floating

conditions that cause confusion for reading directions clearly (Ambiguity) caused by

external factors outside management or often referred to as VUCA

From previous research, the management strategy chosen by MSMEs in facing the

VUCA situation in a period of continuing uncertainty focuses more on (1) digital

marketing strategies. (2) strategy to improve services based on creative innovation (3)

strategy to improve the quality of human resources. For this reason, through literature

study in this research, we will explore the management strategies chosen by MSME actors

in dealing with the situation of extending the PPKM as a result of the Covid-19 pandemic.

Apart from that, this research aims to increase literacy regarding new things that can be

done by MSMEs in facing the length of the pandemic, which is still unclear when it will

end or end.

RESEARCH METHOD

The method we use in this study is a qualitative research method. The qualitative

method in this research uses a literature approach or can also be called a literature study.

Generally, qualitative methods are used to answer questions such as what, how, and why

regarding a problem or phenomenon that you want to discuss in an MSME strategic

management article during times of uncertainty. Meanwhile, the literature study approach

is a research approach carried out by searching for various sources and also references

on a theoretical basis that is relevant to the cases, discussions and problems raised in an

The Role of Strategy Planning to Achieve Organizational Goals in Uncertainty Situations in MSMES in

Indonesia

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article, specifically those related to strategic management, MSMEs, pandemics, etc.

Another term for literature study is bibliography study. The definition of literature study

is a technique of collecting data by studying books, notes, literature and various kinds of

reports related to the problem you want to solve, namely the problem of strategic

management of MSMEs in facing times of uncertainty.

RESULT AND DISCUSSION

Digital marketing strategy

According to (Syukri & Sunrawali, 2022), Digital marketing is a marketing activity

including branding that uses various media. Currently we have entered the era of the

industrial revolution, namely the development of the industrial sector with the use of

communication and information technology as the main element (Ahmad, 2012).

Considering that communication and information technology is really needed during the

Covid-19 pandemic, MSMEs are required to be able to adapt to existing technological

advances. By taking advantage of technological advances, it will certainly make it easier

for MSMEs to develop their business during a pandemic like now.

Marketing activities are an important factor in increasing sales figures during the

pandemic. By implementing a digital marketing strategy, it is hoped that you can attract

potential consumers quickly. According to (Hardilawati, 2020) Digital marketing is a

marketing or promotional activity for a brand by utilizing digital media or the internet.

During the pandemic, MSMEs are expected to be able to make the best use of the internet

to maintain their business. Research conducted by (Hendrawan et al., 2019) shows the

results that digital marketing has a positive influence in increasing sales of MSMEs.

Around 70% of creative entrepreneurs explained that digital marketing can be the main

platform in the marketing process, and offline marketing is only a complement, this is

because digital marketing's ability to reach consumers and is easy to use. According to

(Febriyantoro & Arisandi, 2018) Digital marketing can help MSMEs interact directly

with their consumers, expand market share, and collaborate with e-commerce.

According to (Imam Pamungkas Walton & Nurmandi, 2021) there are several ways

that MSMEs can use to promote their products, these methods include making videos or

photos about the product to be posted on social media, utilizing the features provided

such as Instagram ads and Facebook ads and introducing products on their accounts.

social media. These applications currently have features available for business accounts

to make it easier for them to promote their products. This must be utilized properly by

MSME players. Considering that currently there is a Covid-19 pandemic, community

activities are limited, including shopping activities, digital marketing is the most ideal

strategy for MSMEs to survive the pandemic situation. Apart from that, the scope of

social media such as Instagram is very broad and almost has no limits. So, the strategy

that is highly recommended for MSMEs in terms of surviving the Covid-19 pandemic is

a digital marketing strategy. MSMEs must be smarter in using social media to help

market MSME products.

MSME Strategy in Improving Human Resource Quality

According to (Yuwinanto, 2020) The definition of quality HR is human resources

that can create not only comparative value, but also competitive, generative and

innovative value. Human resources are one of the important factors so that MSME goals

can be achieved. To be able to survive during a pandemic like now, MSMEs must have

competent and quality human resources. According to (Nafis, 2021) The way to achieve

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productive, competent and competitive human resources which are expected to help

MSMEs survive in times of uncertainty is by holding training activities for MSME

players. As discussed in the previous point, changes to MSMEs are an important thing

that must be done to survive times of uncertainty like today, namely by changing the

form of marketing which is usually done offline only, now it must be supplemented with

the help of digital marketing in order to achieve maximum results. Apart from that, with

this period of uncertainty, many transformations have occurred in the world of work.

Many companies choose to implement work from home. In order to survive in times of

uncertainty, MSMEs must be able to make good use of information technology. To

achieve this, human resource training is needed to make them more competent. This is in

accordance with research conducted by (Marlinah, 2020) which shows that the training

provided to MSME actors has a positive influence on MSME income.

In developing human resources, there needs to be cooperation between the

government and MSME actors. The government has made efforts to prepare reliable

human resources through the pre-employment card program. The pre-employment card

program is a program launched by the government through the Ministry of Manpower

which aims to develop work competencies (Shofiana, 2020).

The pre-employment card aims to maximize the productivity and competitiveness

of the workforce, as well as foster an entrepreneurial spirit. By using a pre-employment

card, workers can choose various training that suits their wishes, such as technical skills

to how to start a business and develop it. Skills training that can be chosen include how

to sell via online media, how to become a reliable photographer, mastering language

skills, how to use social media to make a profit, and so on. With the pre-employment

card program, it is hoped that it can improve the quality of human resources which is

expected to be able to encourage MSMEs to progress further and survive in the current

pandemic situation. So, to support digital marketing strategies and improve services

based on creative innovation, HR training is needed so that competent HR can be created

that meets needs.

CONCLUSION

Practical strategic management has been well realized by MSMEs, as evidenced by the

various strategies carried out by business people and also MSME actors. Even in the

midst of times of uncertainty, in times of uncertainty like today, several strategies that

MSME players can choose are strengthening marketing strategies using digital

technology. Apart from that, MSMEs must also innovate the products they produce. So

that this strategy can run optimally, MSME players must improve the quality of human

resources (HR). With good quality and qualified human resources, MSMEs can carry out

digital-based marketing. MSME players certainly need funds to realize the various

strategies they have chosen, one of which is by utilizing assistance from the government

for this reason, survival strategies that can be used as a reference and recommendation

for MSME business people so they can maintain the business they have started include

(1) marketing digitalization strategy; (2) service improvement strategy based on creative

innovation; (3) strategy to improve the quality of human resources; It is hoped that the

three strategies recommended by the author will help MSMEs in developing strategies to

maintain their business to face unstable economic conditions.

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