Efan Tri Budianto (2017-239) MENSTRAG
Efan Tri Budianto (2017-239) MENSTRAG
Efan Tri Budianto (2017-239) MENSTRAG
NIM : 201710160311239
Chapter 4
Learning Objectives
After studying this chapter, you should be able to do the following:
4-1. Describe the nature and role of an internal assessment in formulating strategies..
Internal values are more focused on strengths (strengths) and weaknesses (weaknesses) owned
by the company. Strategic management decided to improve the advantages of the company,
increase its strength so that it becomes a unique ability (special competence) for the company
in order to create competitive advantage.
Internal assessment involves the process of evaluating, assimilating, and evaluating information
on company operations. In addition, considering internal also involves various levels / divisions
that allow interaction between levels to be important. Every manager or employee is expected
to understand their role in the success of the organization.
A complete internal assessment is vital to help a firm formulate, implement, and evaluate
strategies to enable it to gain and sustain competitive advantages. For different types of
organizations, such as hospitals, universities, and government agencies, the functional business
areas different.
4-3. Identify the basic functions (activities) that make up management and their relevance in
formulating strategies.
The functions of management consist of five basic activities: planning, organizing, motivating,
staffing, and controlling.
Function Description Stage of Strategic-
Management Process
When most important
Planning Planning consists of all those managerial Strategy Formulation
4-4. Identify the basic functions of marketing and their relevance in formulating strategies.
Marketing can determine the entire process carried out in creating and meeting customer
needs for goods and services.
The basic functions of marketing are as follows:
1. Customer analysis: customer surveys, customer information, marketing strategies,
customer profiles, market segmentation strategies.
2. Selling products / services: advertising, sales promotions, publications, personal sales,
sales force management, customer relations, distributor relationships.
3. Product and service planning: market test, brand position, warranty, packaging, product
choices, style / quality, quality, old product replacement, customer service
procurement.
4. Prices: determine prices based on consumers, governments, suppliers, distributors,
competitive prices.
5. Distribution: factories and warehouses, channel distribution, retail locations, sales
territories at the level of procurement, transportation, retailing, wholesale.
6. Marketing research: collecting data, collecting data, analyzing data.
7. Cost / benefit analysis: Expenditures, profits and profits.
Check internal list :
1. Is the market effectively segmented?
2. Is the company's position good enough than comparison?
3. Has the company's market lift increased?
4. Can the channel distribution be trusted and cost effective?
5. Is effective marketing?
6. Does the company approve the market?
7. Are the quality of products and services already good?
8. Are the company's products and services properly resolved?
9. Does the company have effective promotions, advertisements and publication strategies?
10. Is marketing, planning and promotion effective?
11. Does the marketing manager have the appropriate training and experience?
12. Are companies participating in the internet good enough to participate?
4-7. Discuss the nature and role of research and development (R&D) in formulating strategies.
R&D activities are directed at developing new products before competitors do, improving
product quality and improving production processes so as to reduce costs and increase
efficiency.
The research and development functions are as follows:
1. Development of new products before being overtaken by competitors
2. Improve product quality
3. Improve the production process to reduce costs
4. These functions can be carried out internally or externally
Internal and External Research and Development (R&D)
The distribution of costs in R&D activities varies across companies and industries, but the total
R&D costs generally do not exceed initial production and marketing costs. The approaches
commonly used to determine the allocation of R&D budget are as follows:
1. Funding as many project proposals as possible
2. Using the percentage of sales method
3. Budgeting a number of R&D costs incurred by competitors
4. Decide how much new successful products are needed and work backwards to estimate the
R&D investment needed
4-8. Discuss the nature and role of management information systems (MIS) in formulating
strategies.
This system collects all data related to internal strengths and key external forces which are then
integrated to support managerial decisions. The purpose of management information systems
is to improve the performance of a company by improving the quality of managerial decisions.
An effective information system must be able to collect, encode, store, unify, and present
information that can answer important operational and strategic questions.
4-9. Explain value chain analysis and its relevance in formulating strategies.
According to Porter, a business can be displayed with a value chain, where total revenue is
calculated from the total costs incurred to develop and market products or services that
produce value. Value Chain Analysis (VCA) is a process in which a company determines costs
associated with organizational activities ranging from buying raw materials, producing goods, to
marketing it. VCAs need help where there are low profits and costs along the value chain from
raw materials to customer service activities.
Companies can compare or benchmark their value chains with competition in the industry.
Excellence in certain areas of value chain analysis can help companies
Chapter 5
LEARNING OBJECTIVES
5-1. Identify and discuss eight characteristics of objectives and ten benefits of having clear
objectives.
Eight Desired Characteristics of Objectives :
1. Quantitative
2. Measurable
3. Realistic
4. Understandable
5. Challenging
6. Hierarchical
7. Obtainable
8. Congruent across departments
Ten Benefits of Having Clear Objectives :
1. Provide direction by revealing expectations
2. Allow synergy
3. Assist in evaluation by serving as standards
4. Establish priorities
5. Reduce uncertainty
6. Minimize conflicts
7. Stimulate exertion
8. Aid in allocation of resources
9. Aid in design of jobs
10. Provide basis for consistent decision making
5-4. Give specific guidelines when market penetration, market development, and product
development are especially effective strategies.
A. Market penetration
Market penetration strategy seeks to increase market share for present products or services in
present markets through greater marketing efforts. This strategy is widely used alone and in
combination with other strategies. Market penetration includes increasing the number of
salespersons, increasing advertising expenditures, offering extensive sales promotion items, or
increasing publicity efforts. For example, Anheuser annually purchases several $4.5+ million,
30-second advertising slots during the Super Bowl.
The following five guidelines indicate when market penetration may be an especially effec- tive
strategy:
1. Current markets are not saturated with a particular product or service.
2. The usage rate of present customers could be increased significantly.
3. The market shares of major competitors have been declining while total industry sales have
been increasing.
4. The correlation between dollar sales and dollar marketing expenditures historically has
been high.
5. Increased economies of scale provide major competitive advantages.
B. Market Development
Market development involves introducing present products or services into new geographic
areas. For example, Whirlpool recently acquired Indesit, an Italian company that sells appli-
ances, in order to double Whirlpool’s size in Europe, where the company has struggled to com-
pete against Electrolux AB of Sweden, LG Electronics Inc. of South Korea, and Haier Group of
China. Indesit had 13 percent of the major appliance market share in eastern Europe and
Whirlpool had 5 percent, so now 18 percent of the major appliances sold in eastern Europe are
Whirlpool. In western Europe, the Indesit acquisition gave Whirlpool a 17 percent market share
behind the leader, BSH Bosch & Siemens Hausgerate GmbH’s 20 percent.
The largest online video-streaming company, Netflix, recently launched it services into France,
Germany, Belgium, and Switzerland, as well as eastern and southern Europe, and expects to be
a global service provider by 2018. Netflix’s major rival in Europe is Vivendi SA’s pay-TV unit
Canal Plus that offers Netflix-like services through its Canal Play services.
These six guidelines indicate when market development may be an especially effective strategy:
1. New channels of distribution are available that are reliable, inexpensive, and of good quality.
2. An organization is successful at what it does.
3. New untapped or unsaturated markets exist.
4. An organization has the needed capital and human resources to manage expanded
operations.
5. An organization has excess production capacity.
6. An organization’s basic industry is rapidly becoming global in scope.
C. Product Development
Product development is a strategy that seeks increased sales by improving or modifying present
products or services. Product development usually entails large research and develop- ment
expenditures. Walt Disney Company recently developed a Disney Baby line of products and
services that it expects to become a powerful baby brand for customers ages 0 to 2. Bob
Chapek, president of Disney Consumer Products, stated, “This gives Disney the opportunity to
reach out to moms when magical moments begin; there is no more special occasion than the
birth of a baby.”
These following five guidelines indicate when product development may be an especially
effective strategy to pursue :
1. An organization has successful products that are in the maturity stage of the product life
cycle; the idea here is to attract satisfied customers to try new (improved) products as a result
of their positive experience with the organization’s present products or services.
2. An organization competes in an industry that is characterized by rapid technological
developments.
3. Major competitors offer better-quality products at comparable prices.
4. An organization competes in a high-growth industry.
5. An organization has especially strong research and development capabilities
5-5. Explain when diversification is an effective business strategy.
Diversification Strategies
The two general types of diversification strategies are related diversification and unrelated
diversification. Businesses are said to be related when their value chains possess competitively
valuable cross-business strategic fits; businesses are said to be unrelated when their value
chains
Most com-
• Transferring competitively valuable expertise, technological know-how, or other capabili- ties
from one business to another
• Combining the related activities of separate businesses into a single operation to achieve
lower costs
• Exploiting common use of a well-known brand name
• Cross-business collaboration to create competitively valuable resource strengths and
capabilities12
A. Related Diversification
Alcoa recently diversified further into the jet-engine parts industry by acquiring Firth Rixson Ltd.
for nearly $3 billion. The move away from total reliance on aluminum puts Alcoa in position to
become a major player in the aerospace jet-engine market. Jet engines utilize a lot of alumi-
num but still this strategy is best classified as related diversification rather than forward integra-
tion due to the new high-tech competencies required.
Products.
1. New, but related, products could be offered at highly competitive prices.
2. New, but related, products have seasonal sales levels that counterbalance an
organization’s
3. existing peaks and valleys.
4. An organization’s products are currently in the declining stage of the product’s life cycle.
5. An organization has a strong management team.
B. Unrelated Diversification
Privately held Mars Inc., best known for its M&M chocolates and its Mars and Snickers candy
bars, recently became the world’s largest pet-food company, purchasing 80 percent of Procter
& Gamble’s pet-food brands for $2.9 billion, to go with its own Whiskas, Pedigree, and Royal
Canin pet brands. Mars has over 25 percent market share in the global pet-food industry,
slightly ahead of Nestle S.A., which owns Purina and Friskies.
The guidelines for when related diversification may be an effective strategy are as follows.
1. An organization competes in a no-growth or a slow-growth industry.
2. Adding new, but related, products would significantly enhance the sales of current
Given below are 10 guidelines when unrelated diversification may be an especially effective:
1. Revenues derived from an organization’s current products or services would increase
significantly by adding the new, unrelated products.
2. An organization competes in a highly competitive or a no-growth industry, as indicated by
low industry profit margins and returns.
3. An organization’s present channels of distribution can be used to market the new products to
current customers.
4. New products have countercyclical sales patterns compared to an organization’s present
products.
5. An organization’s basic industry is experiencing declining annual sales and profits.
6. An organization has the capital and managerial talent needed to compete successfully in a
new industry.
7. An organization has the opportunity to purchase an unrelated business that is an attractive
investment opportunity.
8. Financial synergy exists between the acquired and acquiring firm. (Note that a key difference
between related and unrelated diversification is that the former should be based on some
commonality in markets, products, or technology, whereas the latter is based more on profit
considerations.)
9. Existing markets for an organization’s present products are saturated.
10. Antitrust action could be charged against an organization that historically has concentrated
on a single industry.
5.6 List guidelines for when retrenchment, divestiture, and liquidation are especially effective
strategies.
a. Some companies use technology to facilitate divestment expositions of several
divisions. They post information about which division they want to sell on their
official website so they can be seen by other companies who are interested in
buying the division. For example, Alcoa has established an online showroom to
display the business units they sell. Through online communication, Alcoa has
reduced the cost of financing business zones in lodging, transportation companies
and meeting rooms.
b. Liquidation Component
Engle and Lange stated that liquidity has three basic components that are interrelated with
one another in order to maintain the level of liquidity and economic stability of a
company or organization, namely density, depth, and resilience.Density, which is a
hole that occurs in the price agreed with the typical price of an item.Depth, is the
amount or volume of products sold and purchased at a certain price level.Resilience,
is the speed of price changes towards efficient prices after ongoing price
irregularities or instability.
5-10 Explain how strategic planning differs in for-profit, not-for-profit, and small firms.
Conclusion
This Strategy in Action Chapter implements strategic management with the latest
examples. Long-Term Objectives Long-term goals describe the desired results after performing
various strategies, usually with a period of 25 years. The Nature of Long-Term Objectives
Objectives must be quantitative, measurable, understandable, challenging, hierarchical, but can
be achieved and congruent between units in the objective organization must also be associated
with the timeline. Objective example: sales growth, social responsibility. Objectives that are
clearly established have many benefits such as: direction, synergy, prioritization, reducing
uncertainty and conflict, as well as better allocation of resources and job design. It is the
objective that becomes the standard for evaluation, including managerial performance. Long-
term objectives are needed for every level in the organization: corporate, division and
functional. Arthur D. Little argues that incentives should be based also on individual
contributions in long-term objectives and strategies, in addition to annual objectives. Because,
without long-term objectives an organization will run without direction to an unknown end.
Success is very rare because of chance, but is the result of hard work directed at certain
objectives.
Financial versus Strategic Objectives Two types of objectives that generally exist in
organizations are financial and strategic objectives. Financial objectives are usually associated
with higher revenue growth, earnings, dividends and profit margins, etc .; while strategic
objectives include an increase in market share, shorter delivery time than rivals, lower costs
than rivals, wider geographical coverage of rivals, etc. Although financial objectives are
important in a company, sometimes trade-offs occur between the objectives. For example, a
company can achieve better cash flow by increasing prices.
1. Identify and discuss eight characteristics of objectives and ten benefits of having
clear objectives.
2. Identify and discuss the three types of Integration Strategies
3. Define and give an example of eleven types of strategies.
4. Specific guidelines when market penetration, market development, and product
development are especially effective strategies.
5. Explain when diversification is an effective business strategy.
6. Guidelines for when retrenchment, divestiture, and liquidation are especially
effective strategies.
7. Identify and discuss Porter’s five generic strategies.
8. Compare (a) cooperation among competitors, (b) joint venture and partnering,
and(c) merger/acquisition as key means for achieving strategies
9. Discuss tactics to facilitate strategies, such as (a) being a first mover, (b)
outsourcing, and (c) reshoring.
10. Explain how strategic planning differs in for-profit, not-for-profit, and small firms.
Chapter 6
System examination and decision look to decide elective strategies that could best empower
the firm to accomplish its crucial goals. The association's current systems, targets, vision, and
crucial, with the outside and inside review data, give a premise to producing and assessing
practical elective procedures.
Fred R. David dan Forest. R. David. 2017. Strategic Management. Hal. 168
Methodology for building up an EFE Grid, an IFE Network, and a CPM were introduced in Parts 3
and 4. Data got from the EFE Network, IFE Grid, and CPM gives fundamental info data to the
coordinating and choice stage lattices depicted right now. The info apparatuses expect
strategists to evaluate subjectivity during beginning periods of the strategyformulation
procedure. Settling on little choices in the info frameworks with respect to the overall
significance of outer and inner elements permits strategists to all the more adequately produce,
organize, assess, and select among elective procedures. Great instinctive judgment is constantly
required in deciding fitting loads and evaluations, yet remember that a rating of 3, for instance,
is scientifically 50 percent more significant than with a rating of 2, so little contrasts matter
Procedure is now and then characterized as the match an association makes between its inside
assets and abilities and the chances and dangers made by its outer factors.2 The coordinating
phase of the system detailing structure comprises of five strategies that can be utilized in any
succession: the SWOT Grid, the SPACE Network, the BCG Framework, the IE Lattice, and the
Fabulous Methodology Framework. These instruments depend on data got from the
information stage to coordinate outer chances and dangers with inward qualities and
shortcomings. Coordinating outer and inner key elements is the basic for successfully producing
doable elective procedures. For instance, a firm with abundance working capital (an inner
quality) could exploit the mobile phone industry's 20 percent yearly development rate (an
outside circumstance) by procuring Cellfone, Inc. This model depicts basic coordinated
coordinating. Much of the time, outside and interior connections are increasingly mind
boggling, and the coordinating requires numerous arrangements for every methodology
produced. Fruitful coordinating of key outside and inner variables relies upon those basic key
elements being explicit, significant, and divisional to the degree conceivable.
Fred R. David dan Forest. R. David. 2017. Strategic Management. Hal. 168
Strength Weakness
Opportunities Strategi SO menggunakan kekuatan Strategi WO bertujuan
internal perusahaan untuk memperbaiki kelemahan internal
mengambil keuntungan dari peluang dengan memanfaatkan peluang
eksternal. eksternal.
Threats Strategi ST menggunakan kekuatan Strategi WT adalah taktik
perusahaan untuk menghindari atau defensif yang diarahkan untuk
mengurangi dampak ancaman mengurangi kelemahan internal
eksternal. dan menghindari ancaman
eksternal.
Proses membangun Matriks SWOT dapat diringkas dalam delapan langkah, sebagai berikut: :
Fred R. David dan Forest. R. David. 2017. Strategic Management. Hal. 171-174
6-4 Diagram and explain the Strategic Position and Action Evaluation (SPACE) Matrix
Matriks Posisi Strategis dan Evaluasi Tindakan (SPACE), alat pencocokan Tahap 2 penting
lainnya, diilustrasikan pada Gambar dibawah. Kerangka kerja empat kuadrannya menunjukkan
apakah strategi agresif, konservatif, defensif, atau kompetitif paling tepat untuk organisasi
tertentu. Sumbu dari Matriks SPACE mewakili dua dimensi internal (posisi keuangan [FP] dan
posisi kompetitif [CP]) dan dua dimensi eksternal (posisi stabilitas [SP] dan posisi industri [IP]).
Keempat faktor ini mungkin merupakan penentu paling penting dari posisi strategis
keseluruhan organisasi. Sangat membantu di sini untuk menguraikan perbedaan antara sumbu
SP dan IP. Istilah SP mengacu pada volatilitas laba dan pendapatan untuk perusahaan di industri
tertentu. Dengan demikian, volatilitas SP didasarkan pada dampak yang diharapkan dari
perubahan faktor-faktor eksternal inti seperti teknologi, ekonomi, demografi, musiman, dan
sebagainya. Semakin tinggi frekuensi dan besarnya perubahan dalam industri tertentu, semakin
tidak stabilnya SP tersebut. Suatu industri bisa stabil atau tidak stabil pada SP, namun tinggi
atau rendah pada IP.
FP
Conservative Aggresive
CP IP
Defensive Competitive
SP
Proses pengembangan Matriks SPACE dapat diringkas dalam enam langkah, sebagai berikut:
1. Pilih satu set variabel untuk menentukan posisi keuangan (FP), posisi kompetitif (CP),
posisi stabil (SP), dan posisi industri (IP).
2. Tetapkan nilai numerik mulai dari +1 (terburuk) hingga +7 (terbaik) untuk masing-
masing variabel yang membentuk dimensi FP dan IP. Tetapkan nilai numerik mulai dari –
1 (terbaik) hingga –7 (terburuk) untuk masing-masing variabel yang membentuk dimensi
SP dan CP. Pada sumbu FP dan CP, buat perbandingan dengan pesaing. Pada sumbu IP
dan SP, buat perbandingan dengan industri lain. Pada sumbu SP, ketahuilah bahwa –7
menunjukkan kondisi industri yang sangat tidak stabil, sedangkan –1 menunjukkan
sangat stabil.
3. Hitung skor rata-rata untuk FP, CP, IP, dan SP dengan menjumlahkan nilai yang diberikan
pada variabel masing-masing dimensi dan kemudian dengan membaginya dengan
jumlah variabel yang termasuk dalam dimensi masing-masing.
4. Plot skor rata-rata untuk FP, IP, SP, dan CP pada sumbu yang sesuai dalam Matriks
SPACE.
5. Tambahkan dua skor pada sumbu x dan plot titik yang dihasilkan pada X. Tambahkan
dua skor padasumbu y dan plot titik yang dihasilkan pada Y. Plot persimpangan
koordinat baru (x, y).
6. Gambar vektor arah dari asal SPACE Matrix (0,0) hingga yang baru (x, y) koordinat.
Vektor itu, yang terletak di kuadran tertentu, mengungkapkan strategi khusus yang
harus dipertimbangkan organisasi.
6-5
Matriks BCG adalah perangkat strategi untuk memberi pedoman pada keputusan alokasi
sumber daya berdasarkan pangsa pasar dan pertumbuhan UBS. Matriks BCG merupakan empat
kelompok bisnis, yaitu :
1. DOG
Pada posisi ini tingkat pertumbuhan suatu produk masih sangat rendah dan market sharenya
juga masih rendah. Pada posisi ini harus segera mengambil tindakan, kalau tidak secepatnya
mengambil tindakan maka suatu perusahaan akan mengalami kebangkrutan.
2. Question
Pada quadrant ini, product yang ditawarkan walau masih mempunyai market share rendah, tapi
demannya udah kelihatan banyak. sehingga market growthnya tinggi.
3. Star
Kalau sudah sampai di posisi star dimana market share sudah dominan, tapi growth masih
banyak, advertising bisa seperlunya saja, penambahan fitur minor bisa dilakukan, kerjasama
dengan club juga bisa digiaatkan lagi dalam promosi.
4. Cash Cow
Pada posisi ini perusahaan sudah mempunyai market share yang tinggi dan growth yang cukup
baik, untuk mempertahankan produk perusahaan dapat menjaga satabilitas dari tingkat
pemasaran produk dan harga.
Kelebihan dari matriks BCG:
Matriks BCG adalah salah satu alat pembuat keputusan yang paling mudah. “Hanya
dengan membaca grafiknya, orang akan dapat dengan mudah melihat di posisi manakah
perusahaan mereka berada”. Matriks ini memusatkan perhatian pada arus kas, karakteristik
investasi, dan kebutuhan berbagai divisi organisasi. Divisi dapat berubah dari waktu ke waktu:
anjing menjadi tanda tanya, tanda tanya menjadi bintang, bintang menjadi sapi perah, dan sapi
perah menjadi anjing. Namun yang jarang terjadi adalah perubahan yang searah jarum jam
6-6
intrernal dan external matrix
Kedua faktor tersebut memaksa perusahaan itu melakukan usahanya ke dalam perusahaan lain.
Tetapi, pada saat perusahaan tersebut mencapai tahap matang, perusahaan yang hanya
memiliki competitive position rata-rata cenderung akan menurun kinerjanya. Untuk itu strategi
diversifikasi konglomerat sangat diperlukan. Tekanan strategi ini lebih pada sinergi finansial
daripada product market sinergy (seperti yang tardapat pada strategi diversifikasi konsentris).
Matriks Space
Selanjutnya setelah menggunakan model analisis Matriks IE, perusahaan itu dapat
menggunakan Matriks Space untuk mempertajam analisisnya.Tujuannya adalah agar
perusahaan itu dapat melihat posisinya dein arah perkembangan selanjutnya. Berdasarkan
Matriks Space, analisis tersebut dapat memperlihatkan dengan jelas garis vektor yang bersifat
positip baik untuk Kekuatan Keuangan (KU) maupun Kekuatan Industri (K1). Hal ini
menunjukkan bahwa perusahaan itu secara finansial telatif cukup kuat sehingga dia dapat
mendayagunakan keuntungan kompetitifnya secara optimal melalui tindakan yang cukup
agresif untuk merebut pasar.
Grand strategy matrix is the instrument for creating alternative and different strategies for the
organization. All companies and divisions can be positioned in one of the Grand Strategy
Matrix's four strategy quadrants. The Grand Strategy Matrix is based on two dimensions:
competitive position and market growth
This is the least favourite quadrant of the Grand Strategy Matrix. For companies,
after all, it means that are faced with vicious competition on the one hand and with a
market growth that’s faltering on the other hand. Only drastic measures,
adjustments, and changes will be able to save such companies and prevent further
demise or impending liquidation.
6-8 Diagram and explain the Quantitative Strategic Planning Matrix (QSPM).
Quantitative Strategic Planning Matrix (QSPM) is a high-level strategic management approach
for evaluating possible strategies. Quantitative Strategic Planning Matrix or
a QSPM provides an analytical method for comparing feasible alternative actions.
1. Internal Factors
To get started on the process of constructing a QSPM, you are first going to develop a
list of strengths and weaknesses from within your organization. What is it that
you have within your organization which puts you in a position of advantage?
What is it that you feel you are missing? Filling out a few points under both the
strengths and weaknesses category will give you a great start to your matrix.
Remember, as this point, you are only dealing with considerations inside of your
organization.
2. External Factors
In much the same way, you are now going to look outside your organization for
opportunities and threats which exist in the market. Possible opportunities
include a new market which is expanding, or the struggles of a competitor. On
the other hand, threats can include strong competition or decreasing market
prices.
3. Strategy Alternatives
With all of your strengths, weaknesses, opportunities, and threats identified, it is now
time to get into the process of outlining strategies. These are the strategies that
you are going to be choosing from, with the help of the completed matrix. All of
the strategies you wish to consider should be listed across the top of your
matrix. You will obviously need to have at least two options in play, but you can
have many more than that if you so choose.
4. Weighting the Factors
For each internal and external factor which you have included in your matrix, you will
need to assign a weight. The weights are going to assign a perceived importance
to each of the factors, so you will need to take time to think through how much
influence each factor is expected to have in practical application. The weights of
your internal factors should add up to 100%, as should the weights from your
external factors. Expect to spend a bit of time on this step until you are happy
with the weighting distribution you have established. When finished, you should
have weights under each of your proposed strategy alternatives. Since different
strategies are going to place different importance on your various factors, it
makes sense to have unique weights for each alternative.
5. Attractiveness Scores
Just as you did with the weights, you are now going to assign attractiveness scores for
each factor, both internal and external. These scores are going to be on a scale
from 1 to 4, where a 1 is equal to not attractive and a 4 is equal to highly
attractive. If the factor in question will have no effect on the choice you are
making, you can rate the attractiveness score as a zero. Go through the entire
matrix you have created until all of your factors have both a weight and an
attractiveness score.
6. Do the Math
To finish up the QSPM process, you are going to do the math required to settle on final
scores for all of your alternatives. This math is quite simple – you are going to
multiply the weight by the attractiveness score, and you are then going to add
those scores up within each column. With your math complete, you can now
compare the totals for each alternative which was included in the matrix. The
highest total score should be seen as the best overall option.
6-9 Discuss the role of organizational culture of strategic analysis and choice
Based on symbolic perspective, Then the form of organizational culture can be seen
through the process exchanges that occur in organizational processes.
Strategy management is basically efforts to create stabilityand regularity by making
planning that is based in the external and internal situation of the organization. If
organization using cultural form clan culture then it is estimated the manager
willtend to pay less attention planning includes strategic management.
External Internal Matrix is a model developed from the General Electric model, the
parameters used are using internal and internal strength parameters related to the
company. The purpose of using this model is to obtain a more detailed business-
level business strategy.
Identification of 9 cell strategy companies, according to Rangkuti (2001, p42) in principle,
the nine cells can be grouped into three main strategies, namely:
If the company chooses a diversification strategy, the company can grow through
concentration or diversification of conglomerates both internally through the
development of new products, and externally through acquisitions.
Concentric diversification.
6-10 Identify and discuss important political considrations in strategy analysis and choice
Strategy analysis and selection largely involve subjective decision making based on objective
information. Important concepts that can help strategy makers generate alternatives
that make sense to evaluate these alternatives and choose specific actions. Behavioral
aspects of the strategy are described, including political, cultural, ethical and ethical
considerations. responsible.
Figure 2.5 IE Matrix (David, 2011, p221) According to David (2011, p221), the IE matrix
divides divisiorganisasi into 9 cells. The IE matrix is based on 2 dimensions,
namely: the dimension of the number of IFE values that are weighted on the X
axis and the dimension of the number of EFE values weighted on the Y axis. On
the X axis, the sum of IFE values is weighted and 1.0-1.99 and 1.0-1.99 are
considered low, the total A weighted IFE between 2.0-2.99 is considered
medium, and the sum of the weighted values between 3.0-4.0 is considered
high. Likewise the Y axis is based on the total weighted value and EFE. The IE
Matrix is divided into 3 main areas that have different strategic implications. In
cells I, II, and IV can be described as growing and developing. The suitable
strategy is an intensive strategy that consists of market penetration strategies.
Chapter 7
7-2 . Discuss five reasons why annual objectives are essential for effective strategy?
Annual objectives are desired milestones an organization needs to achieve to ensure successful
strategy implementation. annual objectives are essential for strategy implementation for five
primary reasons:
1. they represent the basis for allocating resources.
2. they are a primary mechanism for evaluating managers.
3. they enable effective monitoring of progress toward achieving long-term objectives.
4. they establish organizational, divisional, and departmental priorities.
5. they are essential for keeping a strategic plan on track.
annual objectives serve as guidelines for action, directing and channeling efforts
and activitiesof organization members. they provide a source of legitimacy in an
enterprise byjustifying activities to stakeholders. they serve as standards of
performance. they serveas an important source of employee motivation and
identification. they give incentives formanagers and employees to perform. they provide
a basis for organizational design. (Fred & Forest R. David, Strategic Management 2015 -
208)
7-3 . Identify and discuss six reasons why policies are essential for effective strategy?
Policies facilitate solving recurring problems and guide the implementation of
strategy. policies are essential instruments for strategy implementation, for at least six reasons:
1. policies set boundaries, constraints, and limits on the kinds of administrative actions
that
can be taken to reward and sanction behavior.
2. policies let both employees and managers know what is expected of them, thereby
increasing the likelihood that strategies will be implemented successfully.
3. policies provide a basis for management control and allow coordination across
organizational units.
4. policies reduce the amount of time managers spend making decisions. policies also
clarify
what work is to be done and by whom.
5. policies promote delegation of decision making to appropriate managerial levels
where
various problems usually arise.
6. policies clarify what can and cannot be done in pursuit of an organization’s
objectives.
Some policies apply to a single department (“employees in this department
musttake at least one training and development course each year”). Whatever their
scope and form, policies serve as a mechanism for implementing strategies and
obtaining objectives. Policies should be stated in writing whenever possible. they
represent the means for carrying out strategic decisions. Sometimes policies can be
controversial. (Fred & Forest R. David, Strategic Management 2015 - 211)
Strategies encourage taking care of repeating issues and guide the usage of system.
strategies are fundamental instruments for procedure usage, for at any rate six reasons:
1.policies set limits, limitations, and cutoff points on the sorts of authoritative activities
that can be taken to reward and assent conduct.
2.policies let the two representatives and directors realize what is anticipated from
them, in this manner improving the probability that methodologies will be executed
effectively.
3.policies give a premise to the board control and permit coordination across
authoritative units.
4.policies lessen the measure of time chiefs spend deciding. approaches additionally
explain what work is to be done and by whom.
6. policies explain what should and can't be possible in quest for an association's
targets.
A few arrangements apply to a solitary division ("workers right now take in any event
one preparing and improvement course every year"). Whatever their extension and
structure, approaches fill in as a system for actualizing procedures and getting
destinations. Arrangements ought to be expressed recorded as a hard copy at whatever
point conceivable. they speak to the methods for doing vital choices. At times
arrangements can be disputable.
Kesimpulan : Apa pun ruang lingkup dan bentuknya, kebijakan berfungsi sebagai
mekanisme untuk menerapkan strategi dan mendapatkan tujuan. Kebijakan harus
dinyatakan secara tertulis jika memungkinkan. mereka mewakili sarana untuk
melaksanakan keputusan strategis.
7-4 . Explain the role of resource allocation and managing conflict in strategy?
all organizations have at least four types of resources (or assets) that can be used to achieve
desired objectives:
1. financial resources,
2. physical resources,
3. human resources, and
4. technological resources. Resource allocation can be defined as distributing an
organization’s
“assets” across products, regions, and segments according to priorities established by annual
objectives. allocating resources is a vital strategy-implementation activity. Strategic
management itself is sometimes referred to as a “resource allocation process.”
Honest differences of opinion, turf protection, and competition for limited
resources can inevitably lead to conflict. Conflict can be defined as a disagreement
between two or more parties on one or more issues. establishing annual objectives can
lead to conflict because individuals have different expectations, perceptions, schedules,
pressures, obligations, and personalities. Conflict must be managed for strategy
implementation to be successful. managing conflict is a strategic issue in most, if not all,
organizations. trade-offs are necessary because no firm has sufficient resources to
pursue all strategies that would benefit the firm. Conflict is not always bad. an absence
of conflict can signal indifference and apathy. Conflict can serve to energize opposing
groups into action and may help managers identify problems. general george patton
once said, “If everyone is thinking alike, then somebody isn’t thinking.”. (Fred & Forest
R. David, Strategic Management 2015 - 211)
all associations have in any event four sorts of assets (or resources) that can be utilized to
accomplish wanted goals:
1. financial assets,
2. physical assets,
3. human assets, and
4. technological assets. Asset portion can be characterized as conveying an association's
"resources" across items, districts, and portions as per needs settled by yearly goals.
apportioning assets is an indispensable methodology execution action. Vital
administration itself is some of the time alluded to as an "asset distribution process."
Legit contrasts of assessment, turf security, and rivalry for restricted assets can
unavoidably prompt clash. Strife can be characterized as a difference between at least
two gatherings on at least one issues. setting up yearly targets can prompt clash since
people have various desires, recognitions, plans, weights, commitments, and characters.
Struggle must be overseen for system usage to be fruitful. overseeing struggle is a vital
issue in most, if not all, associations. exchange offs are essential in light of the fact that
no firm has adequate assets to seek after all procedures that would profit the firm.
Struggle isn't in every case terrible. a nonattendance of contention can flag lack of
concern and unresponsiveness. Strife can serve to stimulate contradicting bunches
without hesitation and may assist supervisors with distinguishing issues. general george
patton once stated, "On the off chance that everybody is thinking the same, at that
point someone isn't thinking.".
7-6 . Identify, diagram, and discuss seven different types of organizational structure ?
There are seven basic types of organizational structure:
(1) functional,
(2) divisional by geographic area,
(3) divisional by product,
(4) divisional by customer,
(5) divisional by process,
(6) strategic business unit (SBU), and
(7) matrix.
a functional structure groups tasks and activities by business function, such as
production and operations, marketing, finance and accounting, research and
development, and management information systems, the divisional structure can be
organized in one of four ways: (1) by geographic area, (2) by product or service, (3) by
customer, or (4) by process, In multidivisional organizations, an SBU structure can
greatly facilitate strategy-implementation efforts. Conagra has put its many divisions
into two primary SBUs: (1) consumer foods and (2) private brands and commercial
foods, a matrix structure is the most complex of all designs because it depends on both
vertical and horizontal flows of authority and communication (hence the term matrix), a
matrix structure can result in higher overhead because it creates more management
positions. (Fred & Forest R. David, Strategic Management 2015 - 214)
(1) utilitarian,
(7) lattice.
a useful structure bunches errands and exercises by business work, for example, creation and
tasks, advertising, fund and bookkeeping, innovative work, and the board data
frameworks, the divisional structure can be sorted out in one of four different ways: (1)
by geographic region, (2) result or administration, (3) by client, or (4) by process, In
multidivisional associations, a SBU structure can significantly encourage system usage
endeavors. Conagra has placed its numerous divisions into two essential SBUs: (1)
purchaser nourishments and (2) private brands and business nourishments, a grid
structure is the most unpredictable of all plans since it relies upon both vertical and flat
progressions of power and correspondence (thus the term framework), a lattice
structure can bring about higher overhead since it makes greater administration
positions.
Kesimpulan :
Terdapat 7 yang menjadi jenis dasar struktur organisasi yaitu fungsional,pembagian menurut
wilayah geografis, divisi dengan produk, divisi oleh pelanggan, divisi dengan proses, unit
bisnis strategis (SBU), dan matriks. Yang dimana ketujuh dasar struktur organisasi ini
menjadi hal terpenting dalam membuat struktur organisasi pada perusahaan.
7-7 . Identify and discuss fifteen dos and don'ts in constructing organizational charts ?
1. Instead of chairman of the board, make it chairperson of the board.
2. make sure the board of directors reveals diversity in race, ethnicity, gender, and age.
3. make sure the chair of the board is not also the Ceo or president of the company.
4. make sure the Ceo of the firm does not also carry the title president.
5. reserve the title president for the division heads of the firm.
6. make sure the firm has a Coo.
7. make sure only presidents of divisions report to the Coo.
8. make sure functional executives such as CFo, CIo, Cmo, CSo, r&D, Clo, Cto, and Hrm report to
the Ceo, not the Coo.
9. make sure every executive has one boss, so lines in the chart should be drawn accordingly,
assuring unity of command.
10. make sure span of control is reasonable, probably no more than 10 persons reporting to any
other person.
11. make sure diversity in race, ethnicity, gender, and age is well represented among corporate
executives.
12. avoid a functional type structure for all but the smallest firms.
13. Decentralize, using some form of divisional structure, whenever possible.
14. Use an SBU type structure for large, multidivisional firms.
15. make sure executive titles match product names as best possible in division-by-product and
SBU-designated firms.
Don’t use the title president for the top person; use it for the division top
managers if there are divisions within the firm. also, do not use the title president for
functional business executives. they should have the title chief, or vice president, or
manager, or officer, such as “Chief Information officer,” or “Vp of Human resources.”
Furthermore, do not recommend a dual title (such as CEO and president) for just one
executive. Do not let a single individual be both chairman of the board and Ceo of a
company. (Fred & Forest R. David, Strategic Management 2015 - 219)
3. ensure the seat of the board isn't likewise the Ceo or leader of the organization.
4. ensure the Ceo of the firm doesn't likewise convey the title president.
5. save the title president for the division leaders of the firm.
8. ensure utilitarian officials, for example, CFo, CIo, Cmo, CSo, r&D, Clo, Cto, and Hrm report to
the Ceo, not the Coo.
9. ensure each official has one chief, so lines in the graph ought to be drawn in like manner,
guaranteeing solidarity of order.
10. ensure range of control is sensible, presumably close to 10 people answering to some other
individual.
11. ensure assorted variety in race, ethnicity, sexual orientation, and age is all around spoke to
among corporate administrators.
12. dodge a useful sort structure for everything except the littlest firms.
13. Decentralize, utilizing some type of divisional structure, at whatever point conceivable.
14. Utilize a SBU type structure for huge, multidivisional firms.
15. ensure official titles coordinate item names as most ideal in division-side-effect and SBU-
assigned firms.
Try not to utilize the title president for the top individual; use it for the division top directors if there
are divisions inside the firm. likewise, don't utilize the title president for practical business
officials. they ought to have the title boss, or VP, or administrator, or official, for example, "Boss
Information official," or "Vp of Human assets." Furthermore, don't prescribe a double title, (for
example, CEO and president) for only one official. Try not to leave a solitary individual alone
both executive of the load up and Ceo of an organization.
Kesimpulan : ada beberapa dos dasar dan tidak berkaitan dengan merancang atau membangun bagan
organisasi, terutama untuk perusahaan menengah hingga besar. Pertama-tama, pesan untuk
CEO eksekutif puncak perusahaan. Jangan menggunakan gelar presiden untuk orang utama;
menggunakannya untuk manajer puncak divisi jika ada divisi dalam perusahaan. juga, jangan
gunakan gelar presiden untuk eksekutif bisnis fungsional.mereka harus memiliki kepala jabatan,
atau wakil presiden, atau manajer, atau Petugas, seperti "Petugas Informasi Kepala," atau
"Wakil Direktur Sumber Daya Manusia." Selanjutnya, jangan merekomendasikan gelar ganda
(seperti CEO dan presiden) hanya untuk satu eksekutif. Jangan biarkan seorang individu
menjadi ketua dewan direksi dan CEO perusahaan
7-8 . Discuss four strategic production/operations issues vital for successful strategy
implementation
Four production/operations issues :
(1) restructuring/reengineering,
(2) managing resistance to change,
(3) deciding where/how to produce goods, and
(4) managing an eSop—are especially important for successful strategy implementation and are
therefore discussed next. (Fred & Forest R. David, Strategic Management 2015 - 222)
Four creation/tasks issues :
(1) rebuilding/reengineering,
(4) dealing with an eSop—are particularly significant for effective methodology execution and
are in this manner talked about straightaway.
Kesimpulan :
7-9 . Discuss seven strategic human resource issues vital for successful strategy
implementation.
Seven human resource issues are discussed further
in this section, as follows:
(1) linking performance and pay to strategy,
(2) balancing work lifewith home life,
(3) developing a diverse work force,
(4) using caution in hiring a rival’s employees,
(5) creating a strategy-supportive culture,
(6) using caution in monitoring employees’ social
media, and
(7) developing a corporate wellness program (Fred & Forest R. David, Strategic Management
2015 - 225)
media, and
Menghubungkan Kinerja dan Bayar ke Strategi, sistem kompensasi organisasi perlu diselaraskan
dengan hasil strategis, sistem bonus ganda berdasarkan tujuan tahunan dan jangka panjang
dapat membantu dalam menghubungkan kinerja dan membayar untuk strategi, Penting bahwa
bonus tidak hanya didasarkan pada hasil jangka pendek, karena itu sebuah sistem mengabaikan
strategi dan tujuan perusahaan jangka panjang,