Strategies in Action. Week 05. W. Rofianto, ST, MSi

Transcription

1 Strategies in Action Week 05 W. Rofianto, ST, MSi

2 Long-Term Objectives Strategies represent the actions to be taken to accomplish long term objectives (usually 2-5 years). Objectives Quantifiable Measurable Realistic Understandable Challenging Hierarchical Congruent Timeline

3 Varying Performance Measures by Organizational Level

4 Financial vs. Strategic Objectives Financial Objectives Growth in revenues Growth in earnings Higher dividends Higher profit margins Higher earnings per share Improved cash flow Strategic Objectives Larger market share Achieving ISO Shorter design-to-market Lower Cost Higher product quality Wider geographic coverage

5 Not Managing by Objective Managing by Extrapolation If it ain t broke, don t fix it. Managing by Crisis The true measure of a good strategist is the ability to fix problems Managing by Subjectives Do your own thing, the best way you know how. Managing by Hope The future is full of uncertainty and if first you don t succeed, then you may on the second or third try.

6 The Balanced Scorecard Robert Kaplan & David Norton Strategy evaluation & control technique Balance financial measures with nonfinancial measures Balance shareholder objectives with customer & operational objectives

7 Types of Strategies Large Company Small Company Corporate Level Company Level Division Level Functional Level Functional Level Operational Level Operational Level

8 Types of Strategies Vertical Integration Strategies Intensive Strategies Diversification Strategies Defensive Strategies Forward Integration Backward Integration Horizontal Integration Market Penetration Market Development Product Development Related Diversification Unrelated Diversification Retrenchment Divestiture Liquidation

9 2007 Examples Forward Integration Backward Integration Horizontal Integration Market Penetration Market Development Product Development Related Diversification Unrelated Diversification Retrenchment Divestiture Liquidation Southwest Airlines selling tickets through Galileo Hilton Hotels could acquire a large furniture manufacturer Huntington Bancshares and Sky Financial Group merged McDonald s selling millions of Shrek the Third items to a healthier image Burger King opened its first restaurant in Japan Google introduced Google Presents to compete with PowerPoint MGM Mirage is opening its first non-casino luxury hotel Ford Motor Company entered the industrial bank business Discovery Channel closed 103 mall-based and stand-alone stores Whirlpool sold its struggling Hoover floor-care business to Techtronic Industries Follow Me Charters sold all of its assets and ceased doing business

10 Porter s Five Generic Strategies

11 Meeting the Challenge of High-Velocity Change

12 Means for Achieving Strategies Joint Venture/Partnering Two or more companies form a temporary partnership or consortium for the purpose of capitalizing on some opportunity. Merger/Acquisition Two organizations of about equal size unite to form one enterprise / a large organization purchases (acquires) a smaller firm or vice versa. First Mover Advantages Benefits a firm may achieve by entering a new market or developing a new product or service prior to rival firms Outsourcing Companies taking over the functional operations of other firms

13 Nonprofit and Governmental Organization Educational Institutions Medical Organizations Governmental Agencies and Departments

14 Experiential Exercise 1. Indonesian strategy implementation (Vertical Integration, Intensive, Diversification, Defensive Strategies) a) The example, one for each category b) The reason behind the strategy c) Literature support 2. Your Campus Alternative strategy a) What strategy? b) Why? c) What do you expect with that kind of strategy?

15