Manajemen Strategik

STRATEGIC MANAGEMENT

AN INTRODUCTION

Dr. ANTON WACHIDIN WIDJAJA

COMPETITIVE ADVANTAGES

The fundamental question in the field of strategic management is how firms achieve and sustain competitive advantage (Teece, Pisano, and Shuen: 1997).

The field of strategic management focuses on explanations of competitive advantage – on the reasons why companies experience above- and below- normal rates of returns and on the ways that firms can exploit the limits of perfect competition (Carpenter and Sanders, 2009).

Strategy --- the quest for competitive advantage (Thompson, Strickland, and Gamble, 2012).

CORE CONCEPTCORE CONCEPTCORE CONCEPTCORE CONCEPT

1-4

A company’s A company’s strategy strategy explains why the explains why the company matters in the marketplace by company matters in the marketplace by specifying an approach to creating superior specifying an approach to creating superior value for customers and determining how value for customers and determining how capabilities and resources will be utilized to capabilities and resources will be utilized to deliver the desired value to customers.deliver the desired value to customers.

A company’s A company’s strategy strategy explains why the explains why the company matters in the marketplace by company matters in the marketplace by specifying an approach to creating superior specifying an approach to creating superior value for customers and determining how value for customers and determining how capabilities and resources will be utilized to capabilities and resources will be utilized to deliver the desired value to customers.deliver the desired value to customers.

THE END OF COMPETITIVE ADVANTAGE

THE END OF COMPETITIVE ADVANTAGE

Strategy for Transient Advantage:1) Think about arenas, not industries2) Set broad themes, and then let people experiment3) Adopt metrics that support entrepreneurial growth4) Focus on experiences and solutions to problems5) Build strong relationships and networks6) Avoid brutal restructuring: learn healthy

disengagement7) Get systematic about early-stage innovation8) Experiment, iterate, learn

Strategy is about…

Positioning an organization for competitive advantage

Deciding what to do and what NOT to do Which industries to participate inWhat products and services to offerHow to allocate resources, add value

Creating value for shareholders and other stakeholders by providing value to customers

Strategy …

Differs from Tactics: Forces trade-offs and should focus on

differentiation from rivals Focuses on value creation Allows for learning and adaptation Takes a long-term perspective Responds to the needs of all

stakeholders

Strategy is about making choices…

Who will you target as customers and who will you not?

What will you offer these customers and what will you not offer them?

How will you do all this? – What activities will you perform; which will you not?

What is Strategy?

1-1-1111

Strategy and the Quest forStrategy and the Quest forCompetitive AdvantageCompetitive Advantage

Gaining a sustainable competitive advantage requires: Choosing to compete differently by

doing what rivals don’t do or can’t do.

Appealing to buyers in ways that set the firm apart from its rivals.

Staking out a market position that is not crowded with strong rivals.

Copyrigth 2003 Prof. M.E. Porter

DETERMINANTS OF RELATIVE PERFORMANCE

Operational

EffectivenessStrategic

Positioning

* Assimilating, attaining, and

extending best practice

• Attaining and extending

the World productivity

frontier

• Creating a unique and

sustainable competitive

position

Definition of Strategy

Strategy: A firm’s theory about how to gaincompetitive advantage

Eisner’s theory may have been:

People will pay a premium price for extraordinaryentertainment. We have the necessary resources tocreate extraordinary entertainment. Therefore, let’sredeploy our resources in a different way and offersomething extraordinary to people.

Mission Objectives

ExternalAnalysis

InternalAnalysis

StrategicChoice

StrategyImplementation

CompetitiveAdvantage

The Strategic Management Process


Objectives

ExternalAnalysis

InternalAnalysis

StrategicChoice



Mission


Strategic Choice

ExternalAnalysis

InternalAnalysis

StrategicChoice

BusinessLevel

CorporateLevel

• positioninga business

• which businesses?

Example: Black & Decker


Strategy Implementation

• how strategies are carried out

• who will do what

• organizational structure and control

• who reports to whom

• how does the firm hire, promote, pay, etc.

A Strategy Is Only As Good As Its Implementation



• every strategic choice has strategy implementationimplications

• strategy implementation is just as important asstrategy formulation

Example: Gen. Lee at Gettysburg


Competitive Advantage

Definition: the ability to create more economic valuethan competitors

• all other elements of the strategic managementprocess are aimed at achieving competitive advantage

Mission Objectives

ExternalAnalysis

InternalAnalysis

StrategicChoice




The Ability to Create More EconomicValue Than Competitors

• there must be something different about a firm’soffering vis-à-vis competitors’ offerings

• if all firms’ strategies were the same, no firmwould have a competitive advantage

• competitive advantage is the result of doingsomething different and/or better than competitors


Two Types of Difference

1) Preference for the firm’s output

2) Cost advantage vis-à-vis competitors

• people choose the firm’s output over others’

• people are willing to pay a premium

• lower costs of production/distribution

Example: Nordstrom

Example: Wal-Mart


ExternalAnalysis

InternalAnalysis

StrategicChoice



• identify and exploit differences that may leadto competitive advantage

Example: Apple’s iPod


Q

P

D

MR

D

ATCMC

Q

P

(D=MR=Price)

Imperfect Competition Perfect Competition


ATCMC

Competitive AdvantageEconomic Models

THE STRATEGIC MANAGEMENT PROCESS

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Strategic analyses• Internal

• External

Vision and mission

• Fundamental organizational purpose

• Organizational values

Strategy

• Arenas• Vehicles• Differentiators• Staging• Economic logic

The central, integrated, externally oriented concept of

how a firm will achieve its objectives

Implementation levers

and

Strategic leadership

BUSINESS STRATEGY DIAMOND

25

Staging

Differentiators

Economic logic

Vehicles

Arenas

• What will be our speed and sequence of moves?– Speed of expansion?– Sequence of initiatives

Staging

• How will returns be obtained?– Lowest costs through scale

advantages?– Lowest costs through

scope and replication advantages

– Premium prices due to unmatchable service?

– Premium prices due to proprietary product features?

Economic logic

• How will we get there?– Internal development?– Joint ventures?– Licensing/franchising?– Experimentation?– Acquisitions?

Vehicles

• How will we win?– Image?– Customization?– Price?– Styling?– Product reliability?– Speed to market?

Differentiators

• Where will we be active? ( and with how much emphasis?)– Which product categories?– Which channels?– Which market segments?– Which geographic areas?– Which core technologies– Which value-creation

strategies?

Arenas

Art & science of formulating, implementing, and evaluating, cross-functional decisions that enable an organization to achieve its objectives

Strategic Management –Defined(David, 2011)

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Anything that a firm does especially well compared to rival firms

Strategic Management is Gaining and Maintaining Competitive Advantage

ARTHURARTHUR A. THOMPSON, JR A. THOMPSON, JRA.J. STRICKLAND IIIA.J. STRICKLAND III

THE TERMS STRATEGIC MANAGEMENT REFERS THE TERMS STRATEGIC MANAGEMENT REFERS TO THE MANAGERIAL PROCESS OF FORMING A TO THE MANAGERIAL PROCESS OF FORMING A STRATEGIC VISION, SETTING OBJECTIVES, STRATEGIC VISION, SETTING OBJECTIVES, CRAFTING A STRATEGY, IMPLEMENTING AND CRAFTING A STRATEGY, IMPLEMENTING AND EXECUTING THE STRATEGY, AND THEN OVER EXECUTING THE STRATEGY, AND THEN OVER TIME INITIATING WHATEVER CORRECTIVE TIME INITIATING WHATEVER CORRECTIVE ADJUSTMENT IN THE VISION, OBJECTIVES, ADJUSTMENT IN THE VISION, OBJECTIVES, STRATEGY, AND EXECUTION ARE DEEMED STRATEGY, AND EXECUTION ARE DEEMED APPROPRIATEAPPROPRIATE

THOMAS L. WHEELENTHOMAS L. WHEELENJ. DAVID HUNGERJ. DAVID HUNGER

STRATEGIC MANAGEMENT STRATEGIC MANAGEMENT IS THAT SET IS THAT SET OF MANAGERIAL DECISIONS AND OF MANAGERIAL DECISIONS AND ACTIONS THAT DETERMINES THE LONG ACTIONS THAT DETERMINES THE LONG RUN PERFORMANCE OF A CORPORATIONRUN PERFORMANCE OF A CORPORATION

BUSINESS POLICYBUSINESS POLICY, IN CONTRAST, HAS A , IN CONTRAST, HAS A GENERAL MANAGEMENT ORIENTATION GENERAL MANAGEMENT ORIENTATION AND TENDS PRIMARILY TO LOOK INWARD AND TENDS PRIMARILY TO LOOK INWARD WITH ITS CONCERN FOR PROPERLY WITH ITS CONCERN FOR PROPERLY INTEGRATING THE CORPORATION’S INTEGRATING THE CORPORATION’S MANY FUNCTIONAL ACTIVITIESMANY FUNCTIONAL ACTIVITIES

Basic Model of Basic Model of Strategic ManagementStrategic Management

Four Basic ElementsFour Basic Elements

31

Evaluation and Control

and Control

Strategic Management Model

Strategy Formulation


Mission

Objectives

Strategies

Policies

Feedback/Learning

Environmental

Scanning

Societal Environment

General Forces

Task Environment

Industry Analysis

Structure Chain of Command

Resources Assets, Skills

Competencies, Knowledge

Culture Beliefs, Expectations,

Values

Reason for existence

What results to accomplish by when Plan to

achieve the mission & objectives Broad

guidelines for decision making

Programs

Activities needed to accomplish a plan

Budgets

Cost of the programs Procedures

Sequence of steps needed to do the job

Process to monitor performanceand take corrective action

Performance

External

Internal

Evaluationand Control

Wheelen & Hunger

Fig. 1-3: Strategic Fig. 1-3: Strategic Management ModelManagement Model Company mission &

social responsibility

Long-term objectives Generic & grand strategies

Short-term objectives; reward

systemFunctional tactics Policies that empower action

Restructuring, reengineering & refocusing the organization

Strategic control & continuous improvement

External Environment Internal analysis

Strategic analysis & choice

Legend

Major impact

Minor impact

Fee

db

ack

Feed

back

Possible?

Desired?

The StrategicThe StrategicManagementManagement

ProcessProcess

The StrategicThe StrategicManagementManagement

ProcessProcessChapter 3Chapter 3InternalInternal

EnvironmentEnvironment

Chapter 2Chapter 2ExternalExternal

EnvironmentEnvironmentStrategic IntentStrategic Intent

Strategic MissionStrategic Mission

Strategy FormulationStrategy Formulation Strategy ImplementationStrategy Implementation

Chapter 4Chapter 4Business-LevelBusiness-Level

StrategyStrategy

Chapter 5Chapter 5CompetitiveCompetitiveDynamicsDynamics

Chapter 6Chapter 6Corporate-LevelCorporate-Level

StrategyStrategy

Chapter 8Chapter 8InternationalInternational

StrategyStrategy

Chapter 9Chapter 9CooperativeCooperativeStrategiesStrategies

Chapter 7Chapter 7Acquisitions &Acquisitions &RestructuringRestructuring

Chapter 10Chapter 10CorporateCorporate

GovernanceGovernance

Chapter 11Chapter 11StructureStructure& Control& Control

Chapter 12Chapter 12StrategicStrategic

LeadershipLeadership

Chapter 13Chapter 13Entrepreneurship & InnovationEntrepreneurship & Innovation

Str

ateg

icIn

puts

Feedback

Str

ateg

icO

utc

omes

Str

ateg

icS

trat

egic

Act

ion

sA

ctio

ns

StrategicStrategicCompetitivenessCompetitivenessAbove AverageAbove Average

ReturnsReturns Hitt et all

21st CENTURY COMPETITIVE LANDSCAPE

THE GLOBAL ECONOMY IS CHANGING• People, goods, services and ideas move freely across geographic boundaries•New opportunities emerge in multiple global markets•Markets and industries become more internationalized

Traditional sources of competitive advantage no longer guarantee success

New keys to success include :• Flexibility• Innovation• Speed• Integration

COST OF A PAIR OF NIKE SHOESCOST OF A PAIR OF NIKE SHOES

$ 90 Retailer Profit : $ 45.00

Nike Profit : $ 22.50

Factory Profit : $ 1.12

Overhead : $ 3.41

Labor : $ 3.37

Materials : $ 14.6

Source : http://www.nike.com/faq/faq.html

International marketing, Michael R.Czinkota & Ilkka A. Ronkainen, 2001

Fundamental nature of competition is changing

• Rapid technological changes• Rapid technology diffusions• Dramatic changes in information and communication technologies• Increasing importance of knowledge

The pace of change is relentless….and increasing

Traditional industry boundaries are blurring, such as :

• computer• telecommunications

2121stst CENTURY COMPETITIVE CENTURY COMPETITIVE LANDSCAPELANDSCAPE

37

Hierarchy of Strategy

Corporate Strategy

Business(Division Level)

Strategy

FunctionalStrategy

UNREALIZEDSTRATEGY

DELIBERATESTRATEGY

1–39Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.

Why a Firm’s Strategy Evolves over Time

♦ Managers modify strategy in response to:● Changing market conditions● Advancing technology● Fresh moves of competitors● Shifting buyer needs● Emerging market opportunities● New ideas for improving the strategy

1–40Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.

The Evolving Nature of a Firm’s Strategy

♦ Realized (current) strategy is a blend of:

● Proactive (deliberate) strategy elements that include both continued and new initiatives.

● Reactive (emergent) strategy elements that are required due to unanticipated competitive developments and fresh market conditions.

THE STRATEGIC THE STRATEGIC MANAGEMENT PROCESSMANAGEMENT PROCESS

INVOLVES THE FULL SET OF :INVOLVES THE FULL SET OF :1.1. COMMITMENTSCOMMITMENTS2.2. DECISIONSDECISIONS3.3. ACTIONS ACTIONS

WHICH ARE REQUIRED FOR FIRMS TO WHICH ARE REQUIRED FOR FIRMS TO ACHIEVE :ACHIEVE :

1.1. STRATEGIC COMPETITIVENESSSTRATEGIC COMPETITIVENESS2.2. SUSTAINED COMPETITIVE ADVANTAGESSUSTAINED COMPETITIVE ADVANTAGES3.3. ABOVE AVERAGE RETURNSABOVE AVERAGE RETURNS

KONSEP-KONSEPKONSEP-KONSEP

STRATEGIC COMPETITIVENESSSTRATEGIC COMPETITIVENESS ACHIEVED WHEN A FIRM SUCCESSFULLY FORMULATES AND ACHIEVED WHEN A FIRM SUCCESSFULLY FORMULATES AND

IMPLEMENTS A VALUE CREATINGIMPLEMENTS A VALUE CREATING STRATEGYSTRATEGY

SUSTAINED COMPETITIVE ADVANTAGESUSTAINED COMPETITIVE ADVANTAGEOCCURS WHEN A FIRM DEVELOPS A STRATEGY THAT OCCURS WHEN A FIRM DEVELOPS A STRATEGY THAT

COMPETITORS ARE NOT SIMULTANEOUSLY IMPLEMENTINGCOMPETITORS ARE NOT SIMULTANEOUSLY IMPLEMENTINGPROVIDES BENEFITS WHICH CURRENT AND POTENTIAL PROVIDES BENEFITS WHICH CURRENT AND POTENTIAL

COMPETITORS ARE UNABLE TO DUPLICATECOMPETITORS ARE UNABLE TO DUPLICATE

ABOVE AVERAGE RETURNSABOVE AVERAGE RETURNSRETURNS IN EXCESS OF WHAT AN INVESTOR EXPECT TO EARN RETURNS IN EXCESS OF WHAT AN INVESTOR EXPECT TO EARN

FROM OTHER INVESTMENT WITH SIMILAR RISKFROM OTHER INVESTMENT WITH SIMILAR RISK

RESOURCE BASED MODEL RESOURCE BASED MODEL OF SUPERIOR RETURNSOF SUPERIOR RETURNS

THE RESOURCE BASED MODEL SUGGESTS THE RESOURCE BASED MODEL SUGGESTS THAT ABOVE AVERAGE RETURNS FOR THAT ABOVE AVERAGE RETURNS FOR ANY FIRM ARE LARGELY DETERMINED ANY FIRM ARE LARGELY DETERMINED BY CHARACTERISTIC INSIDE THE FIRMBY CHARACTERISTIC INSIDE THE FIRM

THIS MODEL FOCUSES ON DEVELOPING THIS MODEL FOCUSES ON DEVELOPING OR OBTAINING VALUABLE RESOURCES OR OBTAINING VALUABLE RESOURCES AND CAPABILITIES WHICH ARE AND CAPABILITIES WHICH ARE DIFFICULT OR IMPOSSIBLE FOR RIVALS DIFFICULT OR IMPOSSIBLE FOR RIVALS TO IMITATETO IMITATE

I/O MODEL OF SUPERIOR I/O MODEL OF SUPERIOR RETURNSRETURNS

THE INDUSTRIAL ORGANIZATION MODEL THE INDUSTRIAL ORGANIZATION MODEL SUGGEST THAT ABOVE AVERAGE SUGGEST THAT ABOVE AVERAGE RETURNS FOR ANY FIRM ARE LARGELY RETURNS FOR ANY FIRM ARE LARGELY DETERMINED BY CHARACTERISTICS DETERMINED BY CHARACTERISTICS OUTSIDE THE FIRM.OUTSIDE THE FIRM.

THIS MODEL LARGELY FOCUSES ON THIS MODEL LARGELY FOCUSES ON INDUSTRY STRUCTURE OR ATTRACTIVE INDUSTRY STRUCTURE OR ATTRACTIVE NESS OF THE EXTERNAL ENVIRONMENT NESS OF THE EXTERNAL ENVIRONMENT RATHER THAN INTERNAL RATHER THAN INTERNAL CHARACTERISTICS OF THE FIRM.CHARACTERISTICS OF THE FIRM.

Alternative Models of Superior Returns

Industrial Organization

Model

Resource-Based

Model

The External Environment Resources

An Attractive Industry Capability

Strategy Formulation Competitive Advantage

Assets and Skills An Attractive Industry

Strategy Implementation Strategy Implementation

Superior Returns Superior Returns

DIMENSIONS OF STRATEGIC DIMENSIONS OF STRATEGIC DECISIONSDECISIONS

1.1. REQUIRE TOP MANAGEMENT DECISIONSREQUIRE TOP MANAGEMENT DECISIONS2.2. REQUIRE LARGE AMOUNT OF THE FIRM’S REQUIRE LARGE AMOUNT OF THE FIRM’S

RESOURCESRESOURCES3.3. OFTEN AFFECT THE FIRM’S LONG TERM OFTEN AFFECT THE FIRM’S LONG TERM

PROSPERITYPROSPERITY4.4. FUTURE ORIENTEDFUTURE ORIENTED5.5. USUALLY HAVE MULTIFUNCTIONAL OR USUALLY HAVE MULTIFUNCTIONAL OR

MULTIBUSINESS CONSEQUENCESMULTIBUSINESS CONSEQUENCES6.6. REQUIRE CONSIDERING THE FIRM’S REQUIRE CONSIDERING THE FIRM’S

EXTERNAL ENVIRONMENTEXTERNAL ENVIRONMENT

THE BASIC FOR GOOD THE BASIC FOR GOOD STRATEGIC DECISIONSSTRATEGIC DECISIONS

INTUITION + ANALYSISINTUITION + ANALYSIS

EFFECTIVE STRATEGIC DECISIONSEFFECTIVE STRATEGIC DECISIONS

VISION VS MISSIONVISION VS MISSION

VISION STATEMENTANSWER THE QUESTION

MISSION STATEMENTANSWER THE QUESTION

‘WHAT IS OUR BUSINESS?”

“WHAT DO WE WANT TO BECOME?”

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Ch 1 -49

Peter Drucker: Think through the overall mission of a business. Ask the key question:

“What is our Business?”

Prime Task of Strategic Management

KOMPONEN MISIKOMPONEN MISI

1.1. THE DEFINITION OF BUSINESS THE DEFINITION OF BUSINESS

2.2. INTERNAL AND EXTERNAL INTERNAL AND EXTERNAL ENVIRONMENTENVIRONMENT

3.3. STAKEHOLDERS (INSIDE AND STAKEHOLDERS (INSIDE AND OUTSIDE)OUTSIDE)

MISSION

FUNDAMENTAL PURPOSEPRIMARY

CONSIDERATIONS

STRATEGIC POSTURE

WHY IS A MISSION STATEMENT IMPORTANT?

TO INSURE UNANIMITY OF PURPOSE TO PROVIDE A BASIS FOR ALLOCATING

RESOURCES TO SERVE AS A FOCAL POINT FOR INDIVIDUAL TO RECONCILE DIFFERENCES AMONG

STAKEHOLDERS TO RESOLVE DIVERGENT VIEWS AMONG

MANAGERS TO AROUSE POSITIVES FEELING ABOUT THE FIRM TO PROVIDE A BASIS FOR GOALS AND

STRATEGIES TO PROVIDE DIRECTIONS

Vision: To Be World Class National Energy Company.

Mission: To carry out integrated business core in oil, gas, renewable and new energy based on strong commercial principles.

CORPORATE VALUESCLEANCOMPETITIVECONFIDENTCUSTOMER FOCUSCOMMERCIALCAPABLE

Our vision To be the largest low cost airline in Asia and serving the 3

billion people who are currently underserved with poor connectivity and high fares.

Our mission To be the best company to work for whereby employees are

treated as part of a big family Create a globally recognized ASEAN brand To attain the lowest cost so that everyone can fly with

AirAsia Maintain the highest quality product, embracing technology

to reduce cost and enhance service levels

Our values Safety: Adopting a zero tolerance to unsafe practices and strive

for zero accidents through proper training, work practices, risk management and adherence to safety regulations at all times.

Valuing our People: Committing to our people’s development and well-being and treating them with respect, dignity and fairness.

Customer Focused: We care and treat everyone in the same manner that we want to be treated.

Integrity: Practicing highest standards of ethical behaviour and demonstrate honesty in all our lines of work in order to command trust and mutual respect.

Excellence in Performance: Setting goals beyond the best and reinforcing high quality performance standards and achieving excellence through implementing best practices.

STRATEGIC MISSION AND STRATEGIC INTENT

STRATEGIC MISSION : IS THE STATEMENT OF FIRM’S UNIQUE

PURPOSE AND THE SCOPE OF ITS OPERATIONS

STRATEGIC INTENT : IS THE LEVERAGING OF A FIRM’S INTERNAL

RESOURCES, CAPABILITIES, AND CORE COMPETENCIES TO ACCOMPLISH THE FIRM’S GOALS IN THE COMPETITIVE ENVIRONMENT

Stakeholders:Stakeholders: Groups who are affected by a firm’s Groups who are affected by a firm’s performance and who have claims on its performance and who have claims on its wealthwealth

The firm must maintain The firm must maintain performance at an adequate level in performance at an adequate level in order to maintain the participation order to maintain the participation of key stakeholdersof key stakeholders

OrganizationalOrganizationalOrganizationalOrganizational

EmployeesEmployeesManagersManagersNon-ManagersNon-Managers

EmployeesEmployeesManagersManagersNon-ManagersNon-Managers

FirmFirmFirmFirm

Capital MarketCapital MarketCapital MarketCapital Market

Stock market/InvestorsStock market/InvestorsStock market/InvestorsStock market/Investors

Debt suppliers/BanksDebt suppliers/BanksDebt suppliers/BanksDebt suppliers/Banks

Product MarketProduct MarketProduct MarketProduct Market

Primary Customers Primary Customers SuppliersSuppliersPrimary Customers Primary Customers SuppliersSuppliers

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