BUSINESS PLANNING AND MODELING

WEEK 2
Dr. Edi Hamdi, S.T., MSc
 Take Away from last week:
Business Model vs Business Plan
Competitive Advantage
Market
Problem & Opportunity
Intro on Business Model Canvas
Brainstorming
Elements of Strategy:
- Simple goal, consistent & long term
- Comprehend the competitive environment
- Know what we have (resources)
Environment:
- Strong Implementation FIRM → INTERNAL
INDUSTRY → EXTERNAL

Competitive Strategy is about being different,

deliberatelt choosing different set of activities to
deliver a unique mix of value (Porter)

How should we compete? (business level)

Where do we compete? (corporate level)
Ways to make strategy:
Intended: by top management, complex process during formulation
Realized: actual
Emergent: interpret intended strategy and adapt it

Continuous interaction
between Strategy
Formulation and
Implementation ---
CONSTANTLY ADJUSTED
Case Study “Indomaret”:

IS → cozy place for shopping & meeting point

RS → to become a meeting point?

ES → ?
What is your goal? Any other options?
Highest profit among the industry? Options that may help during hard time
Dominate markets?
Highest assets? Luxury SUV vs Commercial Car
Loyal customers?
Manage the turbulence? Customized dress vs mass
Highest NPV? product design
Stable NPV? Renewable vs oil energy

Which market do you serve?

All markets with average value?
or
Selected market but they will value you most?

Beware of destroyed value when market is too wide

Being the best:
- Best of the best?
- Best in what?
- Tend to dominate market with
all efforts

Being unique:
- Need innovation!
- Value-oriented
- Fit product for intended market
Industry’s Structure:
• Distinctive
• Determine profitability level
• Relatively stable
• As a base for high performance
• Based on economic analysis
INTERNAL FACTOR ANALYSIS
◦ Resources: productive assets owned by the firm
◦ Capabilities: what firm can do
◦ Organizational capabilities are mandatory!

• Select strategy that exploits key strength

• Map opportunities from resources
• Develop resources and capabillity
• Rely on own organization
• Build culture
Types of Resources:
◦ Tangible: finansial, physical talent/assets
◦ Intangible: technology, reputation, culture
◦ Human: skills/know-how, capability to socialize, motivation

Challenge questions:
• Does our assets have the opportunity to deliver more value?
• Can we maintain our intangible assets?
• Can we upgrade or expertise?

Can we develop our ORGANIZATIONAL capability?