Strategic Management: An overview

Yusak Anshori
Drs (UGM), MM (Unair), Dr (Unair)
 Terms in Strategic Management

• Michael Porter
• SWOT Analysis
• Sustainable competitive advantage
• Porter’s Five Forces
• Vision & Mission
• Competitors
• Differentiation
• Cost Leadership
• Setting goal
 Coba Perhatikan!
Samin : Tolong tunjukkan jalan yang harus saya lalui dari sini, plis..!
Bejo : Itu tergantung sampeyan ingin kemana?
Samin : Saya tidak perduli, kemana ajalah……….
Bejo :Kalau begitu ya nggak masalah, terserah sampeyan mau lewat mana.

Point dari percakapan:

Manajemen perusahaan seringkali tidak mengetahui dengan jelas apa yang mereka
inginkan dan bagaimana mencapainya.
Perusahaan memerlukan perencanaan strategi yang baik agar tidak menjadi korban
persaingan di pasar.
Pemikiran startegis melibatkan analisa yang comprehensif atas suatu bisnis yang
berhubungan dengan industrinya, kompetitornya, dan lingkungan bisnisnya baik jangka
pendek maupun jangka panjang.
 What is Strategy?

Strategy is the plan of action that

prescribes resource allocation and other
activities for dealing with the environment,
achieving a competitive advantage, and
attaining organizational goals.(big)
 What is Strategy?

Strategy : a plan, method, or series of maneuvers

for obtaining a specific goal or result.
 What is Strategy?

Strategy is Synchronizing goals and resources

(Yusak Anshori)
 Strategy Vs Tactics
Strategy Tactics
Planning Doing

Large Scale Smaller Scale

Why How

Difficult to Copy Easy to Copy

Long Time Frame Short Time Frame

 Strategic Management

Process of formulating, implementing, and

evaluating, strategies to accomplish long
term goals and sustain competitive
advantage.
 Basic Model of Strategic Management

Environmental Strategy Strategy Evaluation and

Scanning Formulation Implementation Control
The Strategic Management Process
Environmental Scanning

Opportunities & Threats (External)

Analysis of Trends:
• Economic
• Social
• Culture
• Demographic/Environmental
• Political, Legal, Governmental
• Technological
• Competitors
Environmental Scanning

Strengths & Weaknesses (Internal)

Analysis of Trends:
• Management
• Marketing
• Finance/Accounting
• Production/Operations
• Research & Development
• Information Systems
Strategy Formulation

Vision & Mission

Objectives

Strategies

Policies
Strategy Formulation

Key Strategic Questions

By Peter Drucker
• What is our business mission?
• Who are our customers?
• What do our customer consider value?
• What have been our results?
• What is our plan?
Strategy Formulation

Vision

Mission

Strategic Plan

Tactical Plan

Action Plan
 Vision Example

• To be the happiest place on earth

• To be the world’s best quick service restaurant

Vision & Mission
 Mission Elements

Customers

Employees Products/Services

Public Image Markets

Mission
Elements

Self-Concept Technology

Survival Growth
Philosophy
Profit
Strategic Plan
Tactical Plan
 Action Plan

Date To do Due Date PIC Remark

Strategy Formulation
Type of Strategies

Corporate
Level
Division
Level

Functional Level

Operation Level
 Strategy Formulation

Strategies
• Corporate strategy directs the organization as a whole
toward sustainable competitive advantage.

• Business strategy sets the strategic direction for a single

business unit or product line.

• Functional strategy guides the use of resources to

implement business strategy.
 Being Better vs Being Different
Playing the Game Better Playing the Game Differently
Focus on your existing strategic Try to identify:
position and try to improve it and make • New or unexploited customer
it better. Practices such as segments to focus on ( a new
restructuring, refocusing,process “WHO”)
engineering, quality programs, • New customer needs that no
empowering employees. competitor is currently satisfying (a
new “WHAT”).
• New ways of producing, delivering,
selling or distributing your products
or services ( a new “HOW”).

….to be successful, a company must able to do BOTH.

--Constantinos Markides--
Strategy Implementation

Programs

Budgets

Procedures
 Strategy Implementation

• A program is a statement of the activities or

steps need to accomplish a single-use plan.

• A budget is a statement of a corporation’s

program in term of Rupiah.

• Procedures are a system of steps or techniques

that describe in detail how a particular task or
job is to be done.
Strategy Evaluation &
Control

Internal Review

External Review

Measuring Performance

Strategic Audit
Feedback/Learning Process

Internal/External Review

Revision of Decisions

Corrective Actions
 Porter’s Five Forces Affecting Industry Competition

• Internet reduces barriers to entry

Potential New Entrants

• Internet blurs differences among competitors

Rivalry
Threat of Substitute Products Among Bargaining Power of Buyers
Competitors
• Internet shifts greater power
• Internet creates new
to end consumers
substitution threats

Bargaining Power of Supplies

• Internet trends to increase bargaining

power of suppliers
 Where Are We Now?
"Situation Analysis"

Company Strengths & Opportunities & Competitive My Competitive

Summary Weaknesses Threats Environment Advantages

Where Are We Going?

"Mission, Vision, Goals & Objectives"

Mission & Vision Goals & Objectives

How Are We Going To Get There?

"Strategies & Action Plans"

Creative Marketing & Finance & Production & Facilities & Management
Direction Sales Accounting Operations Studio & Organization

How Will We Know We have Arrived?

Track Progress Measure Programs & Initiatives Monitor Financial Results

Thank You