Strategic Management

Corporate Strategy
Muhammad Maftuh Rizqi Rahardjo
https://www.linkedin.com/in/muhammadmaftuhrizqirahardjo/
Corporate strategy is primarily about the choice of direction for a firm as a whole and the management of its
business or product portfolio

Corporate Strategy

Directional Strategy
1. Growth Strategy (expand)
2. Delay Strategy (no change)
3. Retrenchment Strategy (reduce)

Parenting Strategy
the company resources and capabilities
that can be used to build business unit
value and generate synergies between
business units.

Portfolio Strategy
Develop successful portfolio
management by aligning the
business cash flow.
To deal with each of the key issues, this class is organized into three parts that examine.
corporate strategy in terms of directional strategy (orientation toward growth), portfolio
analysis (coordination of cash flow among units), and corporate parenting (the building of
corporate synergies through resource sharing and development.

Muhammad Maftuh Rizqi Rahardjo

https://www.linkedin.com/in/muhammadmaftuhrizqirahardjo/
Directional Strategy Corporate decision to utilize business units or subsidiaries depends on the growth of the
business and the industry.

Growth Strategy Delay Strategy Retrenchment Strategy

Concentration Strategy Pause Strategy Turn Around Strategy

The company's decision to stay The strategy in which the Company The company's strategy to
focused on development of a single chooses to rest/take a break to reviewing business activities that
product line. analyze the market for some time have been carried out so far.

1. Horizontal Growth (branches)

Expanding operation into geo
location and market No-Change Strategy Captive Strategy
2. Vertical Growth (take function) Strategies in which the Company The company's strategy to
Taking over supplier or distributor chooses not to do something new in the reduce the scope of certain functional
business activities to reduce costs
.
Diversification Strategy
The company's decision to do
business development through the
Profit Strategy Exit Strategy
Strategies to eliminate or reduce Selling part or all of the shares or
production of new goods.
activity business to increase the equity company.
company's profit value
1. Concentric (related)
which tends to decrease.
Growth Strategy in related industry
with company
2. Conglomerate (Unrelated)
Growth Strategy in unrelated Muhammad Maftuh Rizqi Rahardjo
industry with company
https://www.linkedin.com/in/muhammadmaftuhrizqirahardjo/
In portfolio analysis, management assesses the product line or business unit as a form of investments that
must generate returns.

• Cash Cows :
High market share but low growth rate
(most profitable).
• Star :
High market share and high growth rate (competition
tall).
• Question mark :
Low market share and high growth rate (uncertainty).
• Dogs :
Low market share and low growth rate (less
profitable or maybe even negative profitability).
Parenting Fit is a strategy that views the firm as a resource and capability that can be used to build value for
business units

1. Heartland Business,
the core business area has opportunities for
improvement carried out by the parent
2. Edge of Heartland Business,
in this business area, several main
characteristics in accordance with the
characteristics of the business, while some do
not correspond.
3. Ballast Business,
many have conformity with the parent company,
but little chance of being upgraded
4. Allien Territory
Business has little chance to be improved by
company, and there is a mismatch
5. Value Trap Business,
have a match with the parent opportunity, but
they have discrepancies with the parent's
understanding of important factors unit success.

Muhammad Maftuh Rizqi Rahardjo

https://www.linkedin.com/in/muhammadmaftuhrizqirahardjo/
THANK YOU