Chapter 1: Analyzing Strategic Goals

ENTERPRISE COMPETITIVENESS ANALYSIS: UNIVERSITAS INDONESIA

Define

Vision (fundamental, long-term statement of UI values, aspirations and goals)

Establishing UI as an independent and superior university that is capable of resolving
problems and challenges nationally and globally, as an elite university in South East Asia.
Mission (purpose, common understanding and means for UI to compete)
To provide quality higher education easily accesible to everyone;
Conduct the Tri Dharma that is capable to meet the national and global challenges;
Create highly intellectual graduates with good virtues that can compete globally;
Creating a nurturing academic climate that will support the realization of the vision.

Identify
Goals (Elements/Components of Vision & Mission)
Creating an inclusive educational community based on civility, trust, integrity, mutual respect
and diversity in a safe and friendly environment;
Preparing students to become intelligent and conscientious graduates through a clear and
focused education program, so they can implement, develop, enrich the advancement of
science, technology, and culture;
To develop and spread science, technology and culture, and also seeking its application to
improve the quality of life in the community and enriching the national culture;
Promoting and strengthen the development of existing sciences whilst also pushing the
envelope on new sciences and studies in every field to answer the increasing complexity of
issues in human life and existence;
Encourage and supports active participation of academics in the development of a democratic,
prosperous, civilized, and independent society;
Strengthen UI's role as a higher education provider and the cooperation with professional
certification associations so that graduates can obtain professional certifications;
Increase the quantity and quality of service through collaborations and partnerships for
cultural enrichment and continuous education;
Invest in professional development for Universitas Indonesia’s students, teachers, and staffs
and useful technologies in order to achieve competitive advantage through education,
research, and community service.

Evaluate

Vision should be destination-driven and passion-evoked. The destination of UI vision is to be

a problem solver unto nation and global challenges while the passion is burning for achieving
a superior title. In my opinion, the vision is "massively inspiring" already.
Mission of UI have fulfilled the SMART (Specific, Measurable, Actionable, Relevant and
Time-bound). Perhaps UI can specify more on the time-bound such as SDG with their specific
2030 Agenda.
Chapter 2: Analyzing External Environment

“If an organization does not keep pace with changes in

the external environment, it becomes difficult to sustain
competitive advantages & deliver strong financial results”

Dess, G. et al. 2014. Strategic Management: Text and Cases. NY: 7th Edition

Within this understanding on external environment, Universitas

Indonesia has always been thriving to adapt within the globalization
and modernization. Aligned with its vision that stated “Establishing
UI as an independent and superior university that is capable of
resolving problems and challenges nationally and globally, as an
elite university in South East Asia” clearly conveyed to both its
stakeholders and competitors that UI is ready to sustain its
competitive advantages and sustain the external environment. By
resolving problems and challenges, UI needs to define, empathize
and research the recurring issues in its external environment.
Continuous measures have been taken by UI to analyze, develop
and sustain the external environment.

Analyzing external environment is imperative for UI to gain competitive intelligence from its competitors. Even
though this institution is ranked first in Indonesia (Times Higher Education, 2020) and well-established as well
as well-known among students, external environment thorough analysis can assist Universitas Indonesia in:
 Help institutions define and understand their organizations;
 Identify competitors’ strengths, weaknesses, opportunities and threats (table below) with data
collection and intelligence data interpretation;
 Help institutions avoid unpredicted events by anticipating competitors’ moves; and
 Identify potentials for unethical behavior while gathering intelligence.

As industrial engineers, we have the principle to do continuous improvement as the external environment is
racing towards a gradually bigger share in the market. Innovations to the status quo are significant in order to
keep up with the external environment. It is good to pioneer the innovations and introduce them to the society;
however, there are moments when the competitors launched them first. Hence, keeping up with the competitors
are also important to be relatable. In order to track the activities of the competitors, forecasting is one of the
great tool to help. The critical inputs to conduct a closely accurate forecasting is (1) environmental scanning and
(2) environmental monitoring.

1. Environmental scanning involves surveillance of a firm’s external environment which:

a. Predicts environmental changes to come using media platforms;
b. Detects changes to come with consultants and experts; and

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 c. Allows firm to be proactive by managing the human resources and establishing two-way
communication.
2. Environmental monitoring tracks evolution of two kinds of environmental trends:
a. Hard trends (measurable facts or events); and
b. Soft trends (estimation, probable events, social media trends).
However, forecasting has a downside of having gray areas. Thus, Universitas Indonesia has always been trying
their best to not take quick actions without further review to affirm.

Some tools that we can create to illustrate the external environment of an organization is TOWS analysis and
Porter’s Five Force Model. While TOWS diagram will be elaborated on Chapter 3: Analyzing Internal
Environment, Porter’s Five Force Model illustrate the model of organization competition. Both of TOWS
analysis and Porter’s Five Force model below are the summary from the aforementioned, elaborated external
analysis as well as the introduction to the internal environment analysis below.

Figure 1. Porter’s Five Force Model

Besides having Porter’s Five Force model to ease us in defining the external environment of Universitas
Indonesia, we need to keep in mind on other sectors called PESTLE (Political, Environment, Social,
Technological, Legal and Economic). Those six factors are also playing big part in the external environment
of Universitas Indonesia.

Figure 1. PESTLE Model

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Chapter 3: Analyzing Internal Environment

Internal environment of an organization includes elements within the organization’s boundaries: employees,
stakeholders, culture, resources and leadership (Halmaghi et al., 2017). Talking about resources; organizational
capabilities are developed and enabled through the deployment of an organization’s resources. There two kinds
of resources: the tangible ones (educational material resources, infrastructure resources) and intangible assets
(intellectual assets). To determine whether the competitive advantage within an organization is sustainable
enough to ensure the running of an organization, we can utilize some tools such as TOWS analysis, VRIN and
value chain analysis.

TOWS analysis (Threats, Opportunities, Weaknesses and Strengths) is a fundamental, mundane analysis that is
commonly utilized to determine both external and internal environment. This TOWS analysis is based on
Universitas Indonesia’s website (ui.ac.id) and resources to depict the aforementioned external environment
(threats and opportunities) as well as the internal environment (weaknesses and strengths).

T & O (Threats and Opportunities) act as the external

environment while W & S (Weaknesses and Strengths) act
as the internal environment. To analyze TOWS, we can
combine the trait. For instances, the strengths in Universitas
Indonesia such as but not limited to the established name of
UI (since 1849) can help to top its rivals. However, being
the popular university, Universitas Indonesia needs more
budget to develop the campus.

Another tool that we can utilize is the value chain. The

value chain consisted of the primary and support activities
of an organization, especially Universitas Indonesia.

The value chain model on the left is the fundamental value

chain that is utilized in major organizations. Universitas
Indonesia is one of them. There are five primary activities
which includes inbound logistics (infrastructure), operations
(learning activities/KBM), outbound logistics (research
materials), marketing and sales (social media platform) and
service (teaching). On the other hand, the supporting
activities include general administration, HR management,
technology development and procurement.

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Last but not least, VRIN (Valuable, Rare, Inimitable, Non-substitutable) tool is a test to determine the
sustainability of an organization’s competitive advantage:
1. V : “Is Universitas Indonesia’s resource/capability competitively valuable?” Yes
2. R : “Is Universitas Indonesia’s resource/capability rare?” Yes (human resources)
3. I : “Is Universitas Indonesia’s resource/capability inimitable?” No
4. N : “Is Universitas Indonesia’s resource/capability non-substitutable?” No
Thus, sustaining resources and capabilities must be continually strengthened to sustain their competitive power.

REFERENCES: Lecturer’s notes, Dess, G., Lumpkin, G., Eisner, A., McNamara, G. 2012. Strategic Management: Text and Cases. New York: McGraw-Hill/Irwin. ISBN 978-0-07-786252-7, Halmaghi, Elisabeta-
Emilia & Iancu, Dumitru & Bacila, Lidia. (2017). The Organization's Internal Environment and Its Importance in the Organization's Development. International conference KNOWLEDGE-BASED
ORGANIZATION. 23. 10.1515/kbo-2017-0062., Weboffice-Humas. 2020. Visi & Misi. Universitas Indonesia, 17 Apr. 2018, www.ui.ac.id/tentang-ui/visi -misi.html.