MODUL PERKULIAHAN

DISTINCTIVE STRATEGIC MANAGEMENT

Strategy analysis and choice
A Comprehensive Strategy Formulation
Input Stage
Decision Stage

Fakultas Program Studi E learning Kode MK Disusun Oleh

07 Dr. Ir. Hakiman Thamrin MM

DAFTAR PUSTAKA

1. Thomas L. Wheelen & J.David Hunger, (2010) Strategy Management and Business Policy, 12th ed
2. Hill. (1995), Strategic Management an integrated approach, consepts and cases.
3. David R. Fred, (2010) Strategic Management consepts and cases , Thirteen Edition.
Strategy Analysis & Choice
Tujuannya adalah untuk “Establishing long-term objectives”.

Caranya adalah dengan;

1. Generating alternative strategies

2. Selecting strategies to pursue
3. Best alternative - achieve mission & objectives

Generating Alternative Strategies yang berasal dari:

 Vision
 Mission
 Objectives
 External audit
 Internal audit
 Past successful strategies

Comprehensive Strategy-Formulation Framework

Terdiri dari tiga tingkatan (stage).
 Stage 1: The Input Stage
 Stage 2: The Matching Stage
 Stage 3: The Decision Stage

Stage 1: The Input Stage terdiri dari matrix berikut ini;

 Internal Factor Evaluation Matrix (IFE)
 Competitive Profile Matrix (CPM)
 External Factor Evaluation Matrix (EFE)
 Penekanan pada tahap ini adalah sebagai berikut;

 Basic input information for the matching & decision stage matrices

 Requires strategists to quantify subjectivity early in the process

 Good intuitive judgment always needed

Stage 2: adalah “The Matching Stage”

 SWOT Matrix
 BCG Matrix
 Grand Strategy Matrix

Penekanan pada tahap ini adalah sebagai berikut;

 Match between organization’s internal resources & skills and the opportunities & risks
created by its external factors
 E.g. internal: strong R and D function
 External changing demographics (population getting older)
Strategy: Develop new products for older adults (related to long term objectives
financial or strategic)

SWOT Matrix terdiri dari empat strategi yaitu;

Strengths-Opportunities (SO):
Use a firm’s internal strengths to take advantage of external opportunities
Weaknesses-Opportunities (WO):
Improving internal weaknesses by taking advantage of external opportunities
Strengths-Threats (ST):
Use a firm’s strengths to avoid or reduce the impact of external threats.
Weaknesses-Threats (WT):
Defensive tactics aimed at reducing internal weaknesses and avoiding external
threats
Digambarkan dalam bentuk matriks;

Strengths ( S ) Weaknesses ( W )
List Strengths List Weaknesses

Opportunities ( O ) SO Strategies WO Strategies

List Opportunities Use strengths to take Overcoming weaknesses

advantage of by taking advantage of
opportunities opportunities

Threats ( T ) ST Strategies WT Strategies

List Threats Use strengths to avoid Minimize weaknesses

threats and avoid threats

Contoh Matching Key Factors to Formulate Alternative Strategies

Key Internal factor key External Factor Resultant Strategy

20% annual growth

Excess working capacity
(strength) + in the cell phone = Acquire Cellfone, Inc.
industry (opportunity)

Exit of two major

Pursue horizontal
Insufficient capacity foreign competitors
(weakness) + from the industry = integration by buying
competitor's facilities
(opportunity)

Decreasing numbers
Stage 3: The Decision Stage Develop new products for
Strong R&D (strength) + of young adults = older adults
(threat)

Poor employee morale Strong union activity Develop a new employee

(weakness) + (threat) = benefits package
Kalau dibuat daftarnya adalah sebagai berikut;
No Strengths:
1 R and D almost complete
2 Basis for strong management team
3 Key first major customer acquired
4 Initial product can evolve into range of
offerings
5 Located near a major centre of
excellence
6 Very focused management/staff
7 Well-rounded and managed business
No Weaknesses;
1 Over dependent on borrowings -
Insufficient cash resources
2 Board of Directors is too narrow
3 Lack of awareness amongst
prospective customers
4 Need to relocate to larger premises
5 Absence of strong sales/marketing
expertise
6 Overdependence on few key staff
7 Emerging new technologies may
move market in new directions

Threats: Opportunity
1 Major player may enter targeted market 1 Market segment is poised for rapid
segment growth
2 New technology may make products 2 Export markets offer great potential
obsolescent
3 Economic slowdown could reduce 3 Distribution channels seeking new
demand products
4 Euro/Yen may move against $ 4 Scope to diversify into related market
segments
5 Market may become price sensitive
6 Market segment's growth could attract
major competition
Key Strategies-nya adalah:
1. Accelerate product launches by strengthening R and D team
2. Extend links with key technology centres
3. Raise additional venture capital
4. Expand senior management team in sales/marketing
5. Recruit non-executive directors
6. Strengthen human resources function and introduce share options for staff
7. Appoint advisers for intellectual property and finance
8. Seek new market segments/applications for products

SWOT Matrix

Strengths – S Weaknesses – W
List Strengths List Weaknesses

Opportunities – O SO Strategies WO Strategies

List Opportunities Match and determine Match and determine
strategy strategy

Threats – T ST Strategies WT Strategies

List Threats Match and determine Match and determine
strategy strategy

Keterbatasan dari Matrix SWOT

 Does not show how to achieve a competitive advantage
 Provides a static assessment in time
 May lead the firm to overemphasize a single internal or external factor in formulating
strategies
BCG Matrix
 Enhances multi-divisional firm in formulating strategies
 Autonomous divisions = business portfolio
 Divisions may compete in different industries
 Focus on market-share position & industry growth rate

Relative Market Share Position

 Ratio of a division’s own market share in an industry to the market share held by the
largest rival firm in that industry

Relative Market Share Position

High medium low
1.0 0.50 0.0
High
+20

Question
Stars
Industry Sales
Growth Rate
Marks
II
Medium
0
I

Cash Cows Dogs

III IV
Low
-20
PENJELASAN
Question Marks
 Low relative market share – compete in high-growth industry
 Cash needs are high
 Case generation is low
 Decision to strengthen (intensive strategies) or divest

Stars
 High relative market share and high growth rate
 Best long-run opportunities for growth & profitability
 Substantial investment to maintain or strengthen dominant position
 Integration strategies, intensive strategies, joint ventures

Cash Cows
 High relative market share, competes in low-growth industry
 Generate cash in excess of their needs
 Milked for other purposes
 Maintain strong position as long as possible
 Product development, concentric diversification
 If weakens—retrenchment or divestiture

Dogs
 Low relative market share & compete in slow or no market growth
 Weak internal & external position
 Liquidation, divestiture, retrenchment

Grand Strategy Matrix

 Tool for formulating alternative strategies
 Based on two dimensions
 Competitive position
 Market growth
 RAPID MARKET GROWTH

Quadrant II Quadrant I
1. Market development 1. Market development
2. Market penetration 2. Market penetration
3. Product development 3. Product development
4. Horizontal integration 4. Forward integration
5. Divestiture 5. Backward integration
6. Liquidation 6. Horizontal integration
7. Concentric diversification
WEAK STRONG
COMPETITIVE COMPETITIVE
POSITION Quadrant III Quadrant III POSITION

1. Retrenchment 1. Retrenchment
2. Concentric diversification 2. Concentric diversification
3. Horizontal diversification 3. Horizontal diversification
4. Conglomerate diversification 4. Conglomerate diversification
5. Liquidation 5. Liquidation

SLOW MARKET GROWTH

KETERANGAN
Quadrant I
 Excellent strategic position
 Concentration on current markets/products
 Take risks aggressively when necessary
Which type of strategy would you suggest?
Quadrant II
 Evaluate present approach
 How to improve competitiveness
 Rapid market growth requires intensive strategy

Quadrant III
 Compete in slow-growth industries
 Weak competitive position
 Drastic changes quickly
 Cost & asset reduction (retrenchment)

Quadrant IV
 Strong competitive position
 Slow-growth industry
 Diversification to more promising growth areas

Stage 3: The Decision Stage; Quantitative Strategic Planning Matrix (QSPM)

Technique designed to determine the relative attractiveness of feasible alternative actions

Langkah-langkah untuk tahap QSPM-ini adalah;

1. Make a list of the firm’s key external opportunities/threats and internal strengths /
weaknesses in the left column
2. Assign weights to each key external and internal factor
3. Examine the Stage 2 (matching) matrices, and identify alternative strategies that the
organization should consider implementing
4. Determine the Attractiveness Scores (A.S)
5. Compare the Total Attractiveness Scores
6. Compute the Sum Total Attractiveness Score
QSPM :
information from IFE and EFE Strategy Alternatives
Key External Factors Weight Strategy 1 Strategy 2 Strategy 3
Economy

Political/Legal/Governmental
Social/Cultural/Demographic/Environmental
Technological
Competitive

Key Internal Factors

Management

Marketing
Finance/Accounting
Production/Operations
Research and Development
Computer Information Systems

Keterbatasan dari QSPM

 Requires intuitive judgments & educated assumptions
 Only as good as the prerequisite inputs

Keuntungaann
 Sets of strategies considered simultaneously or sequentially
 Integration of pertinent external & internal factors in the decision making process

Contoh jurnal; “Strategy Analysis dan A Comprehensive Strategy Formulation” (terlampir)

Developing Optimized Strategy by Comprehensive Framework of Strategy;
Case Study in a Construction Inspection Company
by: Morteza Yazdania, Amirhossein Lotfi Larijanib*, Seifollah Talebi Zarimohalehc,
Abbas Monavarian