1

Kuliah Dr. Syuhada Sufian, MSIE

CORPORATE-LEVEL STRATEGY

S. A. P

E.T. O. P

MisiVisi

Tujuan

Formulasi StrategiBusiness, Corporate strategy,internasionalisasi, strukturisasi, Aliansi, merger

Implementasi StrategiCorporate Governance, LeadershipEntrepreneurhip, control dan restrukturisasi

Keunggulan bersaing berkelanjutan

PROSES MANAGEMENT STRATEGIC

Fungsi-Fungsi DalamCorporate Strategy

• Directional: Orientation toward growth

• Portfolio Analysis: Coordination of cash among units

• Corporate Parenting: Building synergies among units through resource sharing

Entre-preneurship

Etop

S A P

SpecificResouerce(Restructuring)

RelatedDifercification(integration)

UnrelatedDifercification

NewResourceDevelopment

Model Pertumbuhan Perusahaan

KeunggulanKompetitif

Value

BalanceScoreCard

Make strategy a continuall process

Link budget to strategy,Analytics and information

system

Make strategy everyone’s every

Day jobStrategic awareness,Personal scorecard,Balance paychecks

Mobilize Change Melalui Executive

Leadership (Mobilization, Covernance

Process, Strategic managemen)Translate the strategi

Kedalam opetrational Term

Strategy map, balance scorte card

Align the organizationTo the strategy

Corporate role, Busness unit synergies,Share service synergies

Strategy Focus

Corporate dan BusinessStrategic

CorporateLevel

SBU IIIBusiness Strategy

SBU IIBusiness strategy

SBU IBusiness Strategy

Operation Marketing

FinanceRD

Boston Consulting GroupGrowth-Share Matrix

Stars Question Marks

Cash Cows

Dogs

2220

18

1614

12

10

8

64

20

10x 4x 2x

1.5x 1x

0.5x

0.4x

0.3x

0.2x

0.1x

Relative Competitive Position

Bus

ines

s G

row

th R

ate/

reso

u rce

s

(Per

cent

)

Source: B. Hedley, “Strategy and the Business Portfolio,” Long Range Planning (February 1997), p. 12. Reprinted with permission.

Portfolio Analysis

Jack Welsh

General Electric’s Business Screen a la the Jack Welsh dynasty

AWinners Winners

B

C

Question Marks

D

F

Average Businesses

EWinners

Losers

GLosers H

LosersProfit

Producers

Strong Average Weak

Low

Medium

High

Business Strength/Competitive Position

Indu

s try

Att r

act iv

ene s

s

Source: Adapted from Strategic Management in GE, Corporate Planning and Development, General Electric Corporation. Used by permission of General Electric Company.

PortofolioANALYSIS

THE ROLE OF DIVERSIFICATION

• Diversification strategies play a major role in the behavior of large firms karena :

• Product diversification berkaitan dengan:– The scope of the industries and markets in which

the firm competes (opportunity)– How managers buy, create and sell different

businesses to match skills and strengths with opportunities presented to the firm utk menciptakan sinergi.

Two Strategy Levels Diversifikasi

• Business-level Strategy (Competitive Aspek)– Each business unit in a diversified firm chooses a business-

level strategy as its means of competing in individual product markets (memenangkan persaingan dengan product line).

• Corporate-level Strategy (Company wide)– Specifies actions taken by the firm to gain a competitive

advantage by selecting and managing a group of different businesses competing in several industries and product markets (Eksploitasi synergi).

Diversifying to Enhance Competitiveness ada 2 macam

• Related Diversification– Economies of scope– Sharing activities– Transferring core competencies– Market power– Vertical integration

• Unrelated Diversification– Financial economies

• Efficient internal capital allocation• Business restructuring

Strategic Motives for Diversification Untuk memperoleh Strategic Competitiveness:• Economies of scope (related diversification)

Sharing activitiesTransferring core competencies

• Market power (related diversification)Blocking competitors through- multipoint competition,Vertical integration

• Financial economies (unrelated diversification) Efficient internal capital allocation

Business restructuring.

Table 6.1a

Managerial Motives for Diversification

Managerial Motives !!! (Value Reduction)• Diversifying managerial employment risk• Increasing managerial compensation

Table 6.1c

Related Diversification

• Firm creates value by building upon or extending its:– Resources– Capabilities– Core competencies

• Economies of scope– Cost savings that occur when a firm transfers capabilities

and competencies developed in one of its businesses to another of its businesses (eficiency)

Related Diversification: Economies of Scope

• Value is created from economies of scope through:– Operational relatedness in sharing activities– Corporate relatedness in transferring skills or

corporate core competencies among units

• The difference between sharing activities and transferring competencies is based on how the resources are jointly used to create economies of scale dan scope

Sharing Activities

• Operational Relatedness– Created by sharing either a primary activity such as

inventory delivery systems, or a support activity such as purchasing

– Activity sharing requires sharing strategic control over business units

– Activity sharing may create risk because business-unit- ties, create links between outcomes (sharing outcome)

Corporate Relatedness Diversivication

• Creates value in two ways:– (1) Eliminates resource duplication in the need to allocate resources for

a second unit to develop a competence that already exists in another unit

– (2) Provides development intangible resources (resource intangibility) that are difficult for competitors to understand and imitate.

• A transferred tangible resource gives the unit receiving it an immediate competitive advantage over its rivals

Related Diversification: Market Power

• Multipoint Competition– Two or more diversified firms simultaneously compete in the

same product areas or geographic markets• Vertical Integration

– Backward integration• —a firm produces its own inputs

– Forward integration• —a firm operates its own distribution system for delivering its outputs

Unrelated Diversification

• Financial Economies

– Are cost savings realized through improved allocations of financial resources• Based on investments inside or outside the firm

– Create value through two types of financial economies:• Efficient internal capital allocations• Purchasing other corporations and restructuring their

assets

Unrelated Diversification: Restructuring

• Restructuring creates financial economies– A firm creates value by buying and selling other firms’ assets

in the external market

• Resource allocation decisions may become complex, so success often requires:– Focus on mature, low-technology businesses– Focus on businesses not reliant on a client orientation

Internal Incentives to Diversify

• High performance eliminates the need for greater diversification

• Low performance acts as incentive for diversification

Low Performanc

e

Internal Incentives to Diversify (cont’d)

• Diversification may be defensive strategy if:– Product line matures– Product line is threatened.– Firm is small and is in mature

or maturing industry

Low Performanc

eUncertain

Future Cash Flows

Internal Incentives to Diversify

• Synergy exists when the value created by businesses working together exceeds the value created by them working independently

• but synergy creates joint interdependence between business units

• A firm may become risk averse and constrain its level of activity sharing

• A firm may reduce level of technological change by operating in more certain environments

Low Performanc

eUncertain

Future Cash Flows

Synergy and Risk

Reduction

Kualitasaliansi

Orientasipasar

Internallearning

.17

assetStrategik

.37

externallearning

.16

Kinerjaperusahaan

.11

.30

.36

.71

d1

d4

d3

.37

.17

.26

.02

INOVASI

.07

d2 .33

Uji Kelayakan ModelModerasi =adapt1

Model =Standardized estimatesChi Square =35.813

Probability =.119R M S E A =.040

Normed Fit Index=.993Tucker-Levis In =.995

Compar-Fit Index =.998Parsimoni Ratio =.321

.14

.13

.10

Summary Model of the

Relationship between Firm Performance and

Diversification

Figure 6.4SOURCE: R. E. Hoskisson & M. A. Hitt, 1990, Antecedents and performance outcomes of diversification: A review and critique of theoretical perspectives, Journal of Management, 16: 498.