Strategy Analysis and Choice Manajemen Strategi Industri Strategy Analysis and Choice Ir. Erlinda Muslim, MEE Nip. 19601028 198811 2001

Strategy-Formulation Analytical Framework Stage 1: The Input Stage Stage 2: The Matching Stage Stage 3: The Decision Stage

External Factor Evaluation Internal Factor Evaluation Formulation Framework External Factor Evaluation Matrix (EFE) Stage 1: The Input Stage Internal Factor Evaluation Matrix (IFE) Competitive Profile Matrix

Input Stage Provides basic input information for the matching and decision stage matrices Requires strategists to quantify subjectivity early in the process Good intuitive judgment always needed

Formulation Framework TOWS Matrix SPACE Matrix Stage 2: The Matching Stage BCG Matrix IE Matrix Grand Strategy Matrix

Matching Stage Match between organization’s internal resources and skills and the opportunities and risks created by its external factors.

Matching Key Factors to Formulate Alternative Strategies Key Internal Factor Key External Factor Resultant Strategy Develop a new employee benefits package = Strong union activity (threat) + Poor employee morale (weakness) Develop new products for older adults Decreasing numbers of young adults (threat) Strong R&D (strength) Pursue horizontal integration by buying competitor's facilities Exit of two major foreign competitors form the industry (opportunity) Insufficient capacity (weakness) Acquire Cellfone, Inc. 20% annual growth in the cell phone industry (opportunity) Excess working capacity (strength)

Quantitative Strategic Formulation Framework Stage 3: The Decision Stage Quantitative Strategic Planning Matrix (QSPM)

External Factor Evaluation Internal Factor Evaluation Formulation Framework External Factor Evaluation Matrix (EFE) Stage 1: The Input Stage Internal Factor Evaluation Matrix (IFE) Competitive Profile Matrix

The External Assessment Prediction is very difficult, especially about the future. -- Neils Bohr

Nature of External Audit Purpose: Development of Finite List: Opportunities Threats to be avoided

Key External Forces Five (5) broad categories: Economic forces Social, cultural, demographic, & environmental forces Political, governmental, and legal forces Technological factors Competitive forces

Relationships Between Key External Forces and an Organization Competitors Suppliers Distributors Creditors Customers Employees Communities Managers Stockholders Labor Unions Special Interest Groups Products Services Key External Forces Opportunities & Threats

Porter’s Five Forces Model of Industry Competition Exhibit 2.4 Porter’s Five Forces Model of Industry Competition INDUSTRY COMPETITORS Rivalry Among Existing Firms POTENTIAL ENTRANTS SUBSTITUTES BUYERS SUPPLIERS Threat of substitute products or services Bargaining power of buyers new entrants of suppliers Reprinted with the permission of The Free Press, a division of Simon & Schuster, Inc. from Competitive Strategy: Techniques for Analyzing Industries and Competitors by Michael E. Porter. Copyright © 1980, 1998 by The Free Press.

Five Forces Analysis of the Automotive Industry Threat of Rivalry Oligopolistic industry Overcapacity Differentiation on basis of functional attributes only temporary Global Competitive Environment Threat of Market Entry Threat of Suppliers High barriers to entry High capital requirements Contrived deterrence Cost disadvantages Automotive Industry Consolidation Single Sourcing Low level of total value added Threat of Substitutes Threat of Buyers Train, public transport or other means of transportation Numerous potential customers Industry policy of rebates More demanding customers

External Factor Evaluation Matrix Industry Analysis (EFE) External Factor Evaluation Matrix Summarize & evaluate: Competitive Political Cultural Technological Environmental Social Governmental Demographic Economic

External Factor Evaluation (EFE) Menggambarkan keseluruhan opportunities dan threats yang ada untuk mengetahui seberapa besar pengaruh dari setiap faktor tersebut terhadap institusi, respons institusi setiap faktor tersebut dan untuk mengetahui nilai institusi terhadap keseluruhan faktor dibandingkan dengan Institusi lain

Industry Analysis (EFE) Five-Step process: List key external factors (10-20) Opportunities & threats Assign weight to each (0 to 1.0) Sum of all weights = 1.0

Industry Analysis (EFE) Five-step process: Assign 1-4 rating to each factor Firm’s current strategies response to the factor Multiply each factor’s weight by its rating Produces a weighted score

Industry Analysis (EFE) Five-step process: Sum the weighted scores for each Determines the total weighted score for the organization. Highest possible weighted score for the organization is 4.0; the lowest, 1.0. Average = 2.5

UST—Key External Factors .20 1 Clinton Administration 2 .10 Bad media exposure from FDA .05 Smokeless market SE region U.S. .15 3 Production limits on tobacco Legislation against the tobacco industry Threats .30 More social pressure to quit smoking 2.10 1.00 TOTAL .60 4 Pinkerton leader in discount market Astronomical Internet growth Increased demand Global markets untapped Weighted score Rating Weight UST—Key External Factors Opportunities

Tabel : Matriks EFE PT. Pos Indonesia

Industry Analysis (EFE) Total weighted score of 4.0 = Organization response is outstanding to threats & weaknesses Total weighted score of 1.0 = Firm’s strategies not capitalizing on opportunities or avoiding threats

Industry Analysis (EFE) Important Understanding of the factors used in the EFE Matrix is more important than the actual weights and ratings assigned.

External Factor Evaluation Internal Factor Evaluation Formulation Framework External Factor Evaluation Matrix (EFE) Stage 1: The Input Stage Internal Factor Evaluation Matrix (IFE) Competitive Profile Matrix

The Internal Assessment Great spirits have always encountered violent opposition from mediocre minds. -- Albert Einstein

Nature of an Internal Audit All organizations – Strengths Weaknesses

Nature of an Internal Audit Basis for objectives & strategies: Internal strengths/weaknesses External opportunities/threats Clear statement of mission

Key Internal Forces Distinctive Competencies A firm’s strengths that cannot be easily matched or imitated by competitors Building competitive advantage involves taking advantage of distinctive competencies Strategies designed in part to improve on a firm’s weaknesses and turn to strengths

Internal Audit Parallels process of external audit Gather & assimilate information from: Management Marketing Finance/accounting Production/operations Research & development Management information systems

Functions of Management Five basic activities – Planning Organizing Motivating Staffing Controlling

Functions of Management Stage When Most Important Function Planning Strategy Formulation Organizing Strategy Implementation Motivating Strategy Implementation Staffing Strategy Implementation Controlling Strategy Evaluation

Establishing objectives Planning Forecasting Establishing objectives Devising strategies Developing policies Setting goals Planning

Organizing Organizational design Job specialization Job descriptions Job specifications Span of control Unity of command Coordination Job design Job analysis Organizational design Job specialization Job descriptions Job specifications Span of control Unity of command Coordination Job design Job analysis Organizational design Job specialization Job descriptions Job specifications Span of control Unity of command Coordination Job design Job analysis Organizing Organizing Organizing

Organizational change Motivating Leadership Communication Work groups Job enrichment Job satisfaction Needs fulfillment Organizational change Morale Motivating

Management development Discipline procedures Staffing Wage & salary admin Employee benefits Interviewing Hiring Firing Training Management development Safety Affirmative action EEO Labor relations Career development Discipline procedures Staffing

Controlling Quality control Financial control Sales control Inventory control Expense control Analysis of variances Rewards Sanctions Controlling

Marketing Process of defining, anticipating, creating, and fulfilling customers’ needs and wants for products and services

Marketing Customer analysis Selling products/services Product and service planning Pricing Distribution Marketing research Opportunity analysis

Market segmentation strategies Marketing Customer surveys Consumer information Market positioning strategies Customer profiles Market segmentation strategies Customer analysis

Sales force management Selling Products/services Marketing Advertising Sales Promotion Publicity Sales force management Customer relations Dealer relations Selling Products/services

Product features/options Product/service planning Marketing Test marketing Brand positioning Devising warrantees Packaging Product features/options Product style Quality Product/service planning

Marketing Forward integration Discounts Credit terms Condition of sale Markups Costs Unit pricing Pricing

Marketing Distribution Warehousing Channels Coverage Retail site locations Sales territories Inventory levels Transportation Distribution

Support all business functions Marketing Data collection Data input Data analysis Support all business functions Marketing research

Cost/benefit/risk analysis Marketing Assessing costs Assessing benefits Assessing risks Cost/benefit/risk analysis Opportunity Analysis

Finance/Accounting Determining financial strengths and weaknesses key to strategy formulation Investment decision (Capital budgeting) Financing decision Dividend decision

Finance/Accounting Functions of Finance/Accounting – Investment decision (Capital budgeting) Financing decision Dividend decision

Basic Financial Ratios Firm’s ability to meet its short-term obligations Ratios Current ratio Quick (or acid-test) ratio Liquidity ratios

Debt-to-total-assets Long-term debt-to-equity Times-interest earned Basic Financial Ratios Extent of debt financing Ratios Debt-to-total-assets Debt-to-equity Long-term debt-to-equity Times-interest earned Leverage ratios

Accounts receivable turnover Average collection period Basic Financial Ratios Effective use of firm’s resources Ratios Inventory-turnover Fixed assets turnover Total assets turnover Accounts receivable turnover Average collection period Activity ratios

Operating profit margin Return on total assets (ROA) Basic Financial Ratios Effectiveness shown by returns on sales and investment Ratios Gross profit margin Operating profit margin Net profit margin Return on total assets (ROA) Profitability ratios

Return on stockholders’ equity (ROE) Basic Financial Ratios Effectiveness shown by returns on sales and investment Ratios Return on stockholders’ equity (ROE) Earnings per share Price-earnings ratio Profitability ratios (continued)

Basic Financial Ratios Firm’s ability to maintain economic position Ratios Sales Net income Earnings per share Dividends per share Growth ratios

Production/Operations Process Capacity Inventory Workforce Quality

Production/Operations Design of facility Choice of technology Facility layout Process flow analysis Facility location Line balancing Process control Process

Production/Operations Forecasting Facilities planning Aggregate planning Scheduling Capacity planning Queuing analysis Capacity

Production/Operations Raw material Work in process Finished goods Materials handling Inventory

Motivation techniques Production/Operations Job design Work measurement Job enrichment Work standards Motivation techniques Workforce

Production/Operations Quality control Sampling Testing Quality assurance Cost control Quality

Research and Development Development of new products before competition Improving product quality Improving manufacturing processes to reduce costs

Research and Development Financing as many projects as possible Use percentage-of-sales method Budgeting relative to competitors Deciding how many successful new products are needed R&D budgets

Management Information Systems Purpose – Improve performance of an enterprise by improving the quality of managerial decisions.

Internal Analysis (IFE) Menggambarkan keseluruhan strength dan weakness yang ada untuk mengetahui seberapa besar pengaruh dari setiap faktor tersebut terhadap institusi, respons institusi setiap faktor tersebut dan untuk mengetahui nilai institusi terhadap keseluruhan faktor dibandingkan dengan Institusi lain

Internal Analysis (IFE) Five-Step Process: List key internal factors (10-20) Strengths & weaknesses Assign weight to each (0 to 1.0) Sum of all weights = 1.0

Internal Analysis (IFE) Assign 1-4 rating to each factor Firm’s current strategies response to the factor Multiply each factor’s weight by its rating Produces a weighted score

Internal Analysis (IFE) Sum the weighted scores for each Determines the total weighted score for the organization Highest possible weighted score for the organization is 4.0; the lowest, 1.0. Average = 2.5

Internal Analysis (IFE) .15 3 .05 Financial ratios Reputation as family-friendly .20 4 Long-range planning Minimal comps provided Buffets at most facilities Strong management team .60 Owns 1 mile on Las Vegas strip Increasing free cash flows .40 .10 Room occupancy rates over 95% Largest casino company in world Weighted score Rating Weight Mandalay Bay Internal Strengths

Internal Analysis (IFE) 2.75 1.0 TOTAL (including Strengths) .10 1 Recent loss of joint ventures Laughlin properties 2 .05 Family reputation, not high rollers Little diversification Most properties located in Las Vegas Weighted score Rating Weight Mandalay Bay Internal Weaknesses

Tabel : Matriks IFE PT. Pos Indonesia

Menentukan Distinctive Competencies Diantara sejumlah strengths yang dimiliki suatu institusi dapat saja beberapa diantaranya merupakan distinctive competencies. Untuk mengevaluasi apakah suatu strength adalah distinctive competency dapat digunakan metode Barney yaitu dengan konsep VRIO

VRIO Value : apakah faktor tersebut memberikan keunggulan kompetitif pada institusi ? Rareness : apakah pesaing tidak memiliki faktor tersebut ? Imitability : apakah tidak mudah untuk memiliki faktor tersebut ? Organization : apakah institusi memanfaatkan faktor tersebut secara maksimal ? Jika jawab dari keempat : Ya distinctive competency

External Factor Evaluation Internal Factor Evaluation Formulation Framework External Factor Evaluation Matrix (EFE) Stage 1: The Input Stage Internal Factor Evaluation Matrix (IFE) Competitive Profile Matrix

Competitive Profile Matrix Industry Analysis (CPM) Competitive Profile Matrix Identifies firm’s major competitors and their strengths & weaknesses in relation to a sample firm’s strategic position

(CPM) Procter Avon L’Oreal & Gamble 2.80 3.25 3.15 1.00 Total 0.15 3 0.20 4 0.05 1 Market Share 0.40 2 0.80 Global Expansion 0.10 Customer Loyalty 0.45 0.60 Financial Position 0.30 Management Price Competition Product Quality Advertising Score Rating Weight Critical Success Factor

Competitive Profile Matrix

Formulation Framework TOWS Matrix SPACE Matrix Stage 2: The Matching Stage BCG Matrix IE Matrix Grand Strategy Matrix

Strategy Analysis & Choice Whether it’s broke or not, fix it—make it better. Not just products, but the whole company if necessary. -- Bill Saporito

SWOT ANALYSIS Asumsi: Suatu strategi yang efektif akan memaksimalkan kekuatan (Strength) dan peluang (Opportunities), dan meminimalkan kelemahan (Weaknesses) dan ancaman ((Threat) Opportunities: Situasi penting dari faktor eksternal yang menguntungkan perusahaan. (perubahan teknologi, membaiknya hubungan pembeli & pemasok, dll) Threat: faktor internal yang tidak menguntungkan perusahaan. (masuknya pesaing baru, lambatnya pertumbuhan pasar, meningkatnya kekuatan pembeli & pemasok, dll) Strength: Kekuatan internal meliputi sumberdaya, keterampilan/ keunggulan lainnya relatif terhadap pesaing dan kebutuhan pasar yang dilayani/ ingin dilayani perusahaan. (sumber daya keuangan, citra, dll) Weaknesses: Kekurangan/ keterbatasan daam sumber daya, keterampilan dan kapabilitas yang menghambat kinerja perusahaan.

ANALISA SWOT (TOWS) MATRIX Dikemukakan oleh : Thomas L. Wheelen dan J. David Hunger Menggunakan matrix untuk menghasilkan strategi alternatif dengan memanfaatkan EFE dan IFE Langkah-Langkahnya : Pada blok opportunities cantumkan sejumlah opportunities yang diambil dari tabel EFE Pada blok threats cantumkan sejumlah threats yang diambil dari EFE Pada blok strength, cantumkan sejumlah strength yang diambil dari IFE Pada blok weakness cantumkan sejumlah weakness yg diambil dari IFE Dapatkan sejumlah strategi-strategi yang mungkin untuk perusahaan berdasarkan kombinasi dari 4 elemen tersebut

Matching Stage TOWS Matrix Threats Opportunities Strengths Weaknesses

TOWS Matrix Develop four types of strategies Strengths-Opportunities (SO) Weaknesses-Opportunities (WO) Strengths-Threats (ST) Weaknesses-Threats (WT)

Kuadran SO, ST, WO, WT Kuadran SO : posisi yang paling menguntungkan dimana institusi sedang melihat peluang-peluang dan memiliki kekuatan untuk meraihnya Kuadran ST : institusi dengan beberapa kekuatan yang dimilikinya sedang menghadapi ancaman dari luar. Institusi dapat menggunakan kekuatan untuk menciptakan peluang di masa yang akan datang Kuadran WO : institusi sedang melihat peluang tetapi mengalami kendala dalam meraihnya karena perusahaan memiliki kelemahan. Institusi harus dapat mengeliminir kekurangan-kekurangan supaya lebih efektif dalam meraih peluang Kuadran WT : posisi yang paling tidak menyenangkan dimana perusahaan sedang menghadapi ancaman dari luar bersamaan dengan posisinyapun sedang lemah. Institusi bertahan sambil mengkaji ulang keterlibatan institusi dalam pelayanan yang sedang terancam tersebut

STRATEGI SO, ST, WO, WT Strategi SO : strategi memanfaatkan peluang dengan mendayagunakan kekuatan internal Strategi ST : strategi untuk menghadapi atau menghidarkan ancaman dengan mendayagunakan kekuatan yang dimiliki Strategi WO : strategi untuk mengatasi kelemahan dengan cara memanfaatkan peluang yang ada Strategi WT : strategi yang meminimalkan kelemahan sambil mencegah ancaman yang ada di luar

SO Strategies Threats Opportunities Weaknesses Strengths (TOWS) Use a firm’s internal strengths to take advantage of external opportunities

WO Strategies Threats Opportunities Weaknesses Strengths (TOWS) Improving internal weaknesses by taking advantage of external opportunities

ST Strategies Threats Opportunities Weaknesses Strengths (TOWS) Using firm’s strengths to avoid or reduce the impact of external threats.

WT Strategies Threats Opportunities Weaknesses Strengths (TOWS) Defensive tactics aimed at reducing internal weaknesses and avoiding environmental threats.

TOWS Matrix Steps in developing the TOWS Matrix List the firm’s key external opportunities List the firm’s key external threats List the firm’s key internal strengths List the firm’s key internal weaknesses

TOWS Matrix Developing the TOWS Matrix Match internal strengths with external opportunities and record the resultant SO Strategies Match internal weaknesses with external opportunities and record the resultant WO Strategies Match internal strengths with external threats and record the resultant ST Strategies Match internal weaknesses with external threats and record the resultant WT Strategies

TOWS Matrix WT Strategies ST Strategies Threats-T WO Strategies Minimize weaknesses and avoid threats ST Strategies Use strengths to avoid threats Threats-T List Threats WO Strategies Overcome weaknesses by taking advantage of opportunities SO Strategies Use strengths to take advantage of opportunities Opportunities-O List Opportunities Weaknesses-W List Weaknesses Strengths-S List Strengths Leave Blank

overcoming weaknesses SWOT MATRIX INTERNAL FACTORS EXTERNAL FACTORS STRENGHTS (S) List Internal Strenghts Here WEAKNESSES (W) List Internal Weaknesses Here OPPORTUNITIES (O) List External Opportinities Here S-O Strategies Generate strategies here that use Strenghts to take adventage of opportunities W-O Strategies Generate strategies here that take adventage of opportunities by overcoming weaknesses THREATS (T) List External Threats Here S-T Strategies Generate strategies here that use strenghts to avoid threats W-T Strategies Generate strategies here that minimize weaknesses and avoid threats

TOWS Matrix

TOWS Matrix

TOWS Matrix

FORMULATION FRAMEWORK TOWS Matrix SPACE Matrix Stage 2: The Matching Stage BCG Matrix IE Matrix Grand Strategy Matrix

SPACE Matrix SPACE = The Strategic Position and ACtion Evaluation Dikemukakan oleh : R. Howe, R. Mason & K. Dickel Diadaptasi oleh : Fred R. David Menilai seluruh strategic factors Mengolah Ditampilkan pada sistem koordinat 2 dimensi

SPACE Matrix Strategic Position and Action Evaluation Matrix Four quadrant framework Determines appropriate strategies Aggressive Conservative Defensive Competitive

SPACE Matrix Two Internal Dimensions Two External Dimensions Financial Strength [FS] Competitive Advantage [CA] Two External Dimensions Environmental Stability [ES] Industry Strength [IS]

SPACE Matrix Overall Strategic position determined by: Financial Strength [FS] Competitive Advantage [CA] Environmental Stability [ES] Industry Strength [IS]

SPACE Matrix Developing the SPACE Matrix: EFE Matrix IFE Matrix Financial Strength Competitive Advantage Environmental Stability Industry Strength

SPACE Matrix Select variables to define FS, CA, ES, & IS Assign numerical ranking from +1 (worst) to +6 (best) for FS and IS; Assign numerical ranking from –1 (best) to –6 (worst) for ES and CA. Compute average score for FS, CA, ES, & IS

External Strategic Position Internal Strategic Position SPACE Matrix Environmental Stability (ES) Technological changes Rate of inflation Demand variability Price range of competing products Barriers to entry Competitive pressure Price elasticity of demand Financial Strength (FS) Return on investment Leverage Liquidity Working capital Cash flow Ease of exit from market Risk involved in business External Strategic Position Internal Strategic Position

External Strategic Position Internal Strategic Position SPACE Matrix Industry Strength (IS) Growth potential Profit potential Financial stability Technological know-how Resource utilization Capital intensify Ease of entry into market Productivity, capacity utilization Competitive Advantage CA Market share Product quality Product life cycle Customer loyalty Competition’s capacity utilization Control over suppliers & distributors External Strategic Position Internal Strategic Position

SPACE Matrix FS Conservative Aggressive CA IS Competitive Defensive ES +6 +5 +4 +3 +2 +1 CA IS -6 -5 -4 -3 -2 -1 +1 +2 +3 +4 +5 +6 -1 -2 -3 -4 -5 Competitive Defensive -6 ES

SPACE Matrix : NIKE

SPACE Matrix : AMAZON

Posisi Strategis SO + 0,59 ; + 0,60 Opportunities Posisi Strategis SO + 0,59 ; + 0,60 +2,75 +0,60 -2,15 Weakness Strength -2,50 +0,59 +3,09 Rata-Rata Opportunities = +33/12 = + 2,75 Rata-Rata Threats = -28/13 = - 2,15 Rata-Rata Strength = +34/11 = + 3,09 Rata-Rata Weakness = -15/6 = - -2,50 Koordinat X = +3,09 + (-2,50) = 0,59 Koordinat Y = +2,75 + (-2,15) = 0,60 Threats

SPACE MATRIX POSISI STRATEGIS PERUSAHAAN OPPORTUNITIES Supports an Aggressive Strategy Supports a Turn Oriented Strategy WEAKNESSES STRENGTHS Supports a Difensive Strategy Supports a Diversification Strategy THREATS

Formulation Framework TOWS Matrix SPACE Matrix Stage 2: The Matching Stage BCG Matrix IE Matrix Grand Strategy Matrix

BCG Matrix Boston Consulting Group Matrix Enhances multidivisional firms’ efforts to formulate strategies Autonomous divisions (or profit centers) constitute the business portfolio Firm’s divisions may compete in different industries requiring separate strategy Graphically portrays differences among divisions Focuses on market share position and industry growth rate Manage business portfolio through relative market share position and industry growth rate

Relative Market Share Position Industry Sales Growth Rate BCG Matrix Relative Market Share Position High 1.0 Medium .50 Low 0.0 Industry Sales Growth Rate Dogs IV Cash Cows III Question Marks I Stars II High +20 Medium Low -20

Kondisi Bisnis Perusahaan Perusahaan dengan satu bisnis Diversifikasi perusahaan yang berhubungan Diversifikasi perusahaan yang tak ada hubungan Bersaing sebagai satu bisnis Membagi kompetensi bisnis satu sama lain Tiap unit bisnis otonom pada pasar yang berbeda-beda Apple Computer McDonald’s Corp. Wrigley Maytag Texas Air Ford Motor P&G Philip Morris Dow-Corning Johnson & Johnson Du Pont Gilette ITT Rockwell GE LTV Textron Litton

Pendekatan Portofolio Pendekatan portofolio ditandai ciri berikut : Menguji setiap bisnis perusahaan yang terpisah sebagai elemen portofolio dari total bisnis. Suatu unit bisnis dalam portofolio perusahaan, pada derajat tertentu, adalah merupakan penghasil (generators) atau penerima (recipients) dari sumber-sumber (resources) perusahaan. Pendekatan portofolio merupakan cara yang sederhana dan visual untuk mengidentifikasi dan mengevaluasi alternatif strategi guna dapat menghasilkan dan mengalokasikan sumber-sumber perusahaan (corporate resources)

SUSUNAN MATRIKS BCG Matrix BCG ini dibentuk dari empat sel (Matriks 2 X 2) yang mengukur laju pertumbuhan pasar (market growth) pada sumbu vertikal, dan pangsa pasar relatif (relative market share) pada sumbu horizontal Didalam matriks BCG, setiap unit bisnis menempati salah satu dari kategori “tanda tanya” Question mark Star Cash cow Dogs

MATRIKS BCG Matrixs BCG merupakan model yang sederhana dan paling banyak digunakan. Model ini berguna bagi top manager yang membawahi unit bisnis yang berbeda-beda (diversified forms), khususnya untuk mengalokasikan sumber-sumber (resources) dari satu unit ke unit bisnis lainnya. Matriks ini juga digunakan untuk memperkirakan posisi pasar suatu unit bisnis beberapa tahun ke depan bila tidak dilakukan perubahan kebijakan (policies) selama ini

Bentuk BCG Matrix Market Growth Star Question Mark Cash Cow Dog High Market Growth Low Star Question Mark Cash Cow Dog Strong Weak Relative Market Share

The Boston Consulting Group’s Growth-Share Matrix 20%- 18%- 16%- 14%- 12%- 10%- 8%- 6%- 4%- 2%- Market Growth Rate 10x 4x 2x 1.5x 1x Relative Market Share .5x .4x .3x .2x .1x Stars 5 4 3 ? Question marks 2 1 Cash cows 6 Dogs 8 7

Indikator Cash Flow Beberapa indikator berikut diperlukan dalam penyusunan matriks BCG: Cash flow merupakan indikator kunci pada matriks BCG Cash flow merepresentasikan kemampuan dari unit bisnis untuk membangun portofolio-nya Cash flow dalam matriks BCG dapat dibagi atas: Pemakaian kas (cash use) karena pangsa pasar relatif (relative market share) di sumbu horizontal Penerimaan kas (cash generated) karena pertumbuhan pasar (market growth rate) di sumbu vertikal Relative market share dapat dihitung dari ratio market share unit bisnis dengan market share pesaing tertinggi Market growth atau pertumbuhan pada industri bersangkutan.

Asumsi Cash flow vs. posisi bisnis Hubungan antara cash flow perusahaan dengan portofolio bisnisnya dapat terjadi berdasarkan beberapa asumsi : Profit margin dan penerimaan kas (cash generation) makin besar dengan bertambahnya relative market share, akibat learning curve Market growth membutuhkan uang tunai (cash used) guna membiayai modal kerja, penambahan kapasitas, dan investasi lainnya Sebagian unit bisnis membutuhkan uang tunai lebih besar dari pendapatannya, sedang sebagian lain menghasilkan lebih besar dari yang digunakannya Dalam portofolio perusahaan, cash flow keseluruhan perusahaan harus seimbang, yaitu antara kebutuhan tunai total dengan kemampuan unit-unit usaha dalam menghasilkan uang tunai ditambah pembiayaan dari luar.

Analisa Cash Flow Star Question Mark Cash Cow Dog High Market Growth Cash generated +++ Cash use - - - Cash generated + Cash use - - - - - Cash Cow Dog Cash generated +++ Cash use - ++ Cash generated + Cash use - Strong Weak Relative Market Share

4 Strategi Utama BCG Matrix Build market share Hold market share Harvest Divest

BCG Matrix: Karakteristik Kuadran 30% Market Growth -10% Star Earnings: high stable, growing Cash flow: neutral Strategy: hold or invest for growth Question Mark Earnings: low, unstable, growing Cash flow: negative Strategy: build market share or harvest/divest Cash Cow Earnings: high stable Cash flow: high stable Strategy: hold or add market share Dog Earnings: low, unstable Cash flow: neutral or negative Strategy: harvest/divest 10 1.0 .1 Relative Market Share

Penggunaan Model : Simbol Product A Previous Market Size and Position Product A Total Market Market Share Product B Market Smaller but firm has greater share B

Plotting Your SBU’s C B A 30% Market Growth -10% Star Question Mark A Cash Cow Dog 10 1.0 .1 Relative Market Share

Traditional SBU or Product Path 30% Market Growth -10% Star Question Mark 2 1 3 Cash Cow Dog 4 10 1.0 .1 Relative Market Share

? ? ? MATRIKS BCG & BUSINESS LIFE CYCLE Question mark Berada pada kuadran 1, dimana relative market share-nya rendah (low), namun dengan market groqth rate yang tinggi (high) Ini mengingat posisi market share yang rendah, menunjukkan cash generated yang rendah pula, dan cash use yang tinggi pada market growth yang tinggi. Dalam kondisi bisnis “question mark” ini perusahaan harus memutuskan untuk memperkuat diri dengan strategi intensif (penetrasi pasar, pengembangan pasar, atau pengembangan produk) atau menjualnya bila pelaksanaan strategi terlalu mahal. Misi yang dituntut dari anak perusahaan ini adalah membangun (build) market share. Dalam daur hidup bisnis, posisi ini terletak pada masa perkenalan atau masa-masa awal bisnis (introduction) perusahaan

MATRIKS BCG & BUSINESS LIFE CYCLE Star MATRIKS BCG & BUSINESS LIFE CYCLE Berada pada kuadran II, menunjukkan baik relative market share dan market growth yang tinggi, serta menunjukkan cash generated maupun cash use yang tinggi pula. Posisi star merupakan posisi dominan yang dikejar setiap perusahaan dan posisi yang paling kuat, namun harus dipertahankan dengan investasi yang memadai. Hal tersebut dapat dilakukan dengan strategi integrasi, strategi intensif atau joint ventures, melalui integrasi ke hilir (forward), ke hulu (backward) atau ke pesaing (horizontal), serta melalui penetrasi pasar, pengembangan pasar, atau pengembangan produk dan joint ventures. Misi yang perlu dilakukan adalah mempertahankan (hold) market share. Posisi “hold” sama dengan siklus pertumbuhan (growth) pada business life cycle.

MATRIKS BCG & BUSINESS LIFE CYCLE Cash cow MATRIKS BCG & BUSINESS LIFE CYCLE Berada pada kuadran III, yaitu dengan relative market share yang tinggi namun market growth-nya rendah. Pada market share yang tinggi, biaya per unit cenderung rendah dan berarti menghasilkan laba yang tinggi. Sebaliknya dengan market growth yang rendah, bisnis dalam keadaan menurun sehingga kurang di perlukan uang tunai untuk keperluan investasi. Unit bisnis ini memiliki keuntungan dan cash flow yang tinggi Misi yang di emban adalah memanen (harvest) keuntungan dan cash flow jangka pendek untuk membiayai bisnis anak perusahaan yang lainnya, dengan pendapatan yang besar, namun dengan pertumbuhan yang rendah

Dog MATRIKS BCG & BUSINESS LIFE CYCLE Berada pada kuadran IV, berada pada posisi yang lemah dan industri sudah tidak menarik. Biasanya strategi yang baik adalah melakukan divestasi, kecuali masih ada kemungkinan memperbaikinya dengan biaya yang tidak terlalu mahal. Misi yang dilakukan adalah melakukan (divest) bisnis tersebut. Disini perusahaan berada dalam keadaan “declining” atau mengalami siklus menurun.

KATEGORI BISNIS, MISI DAN DAUR HIDUP HUBUNGAN ANTARA KATEGORI BISNIS, MISI DAN DAUR HIDUP KUADRAN KATEGORI MISI DAUR HIDUP I Question Mark (“?”) Build Introduction II Stars Hold Growth III Cash Cows Harvest Mature IV Dogs Divest Decline

Keuntungan MATRIKS BCG Pendekatan yang sederhana pemakaiannya dan disajikan secara visual Memudahkan penentuan portofolio bisnis dari divisi atau anak perusahaan Merangsang minat dalam perencanaan strategi Mendorong perusahaan untuk melihat formulasi strategi sebagai hubungan kerjasama antara unit-unit bisnis yang ada didalam perusahaan Memperlihatkan bagaimana setiap unit perusahaan memiliki penerimaan dan penggunaan dana tunai (cash flow) yang berbeda-beda terhadap pencapaian tujuan perusahaan.

KELEMAHAN MATRIKS BCG Penggunaan tinggi dan rendah pada growth-share matriks untuk empat kategori, terlalu menyederhanakan masalah bisnis. Hubungan antara market share dengan profitabilitas tidak selalu linier karena market share unit bisnis yang rendah masih bisa mendapatkan keuntungan yang besar, bila di pasarkan pada “niche market” Tingkat perrumbuhan yang tinggi tidak selalu yang terbaik. Matriks ini hanya memperhitungkan pesaing yang kuat dengan mengabaikan pesaing-pesaing kecil yang sedang tumbuh dengan cepat. Market growth hanyalah salah satu saja dari faktor daya tarik industri (industry attractiveness) dan market share adalah juga salah satu dari posisi kompettif bisnis.

GE Multifactor Portfolio Matrix Business Strengths Industry Attractiveness High Medium Low Invest/Grow Selectivity /earnings Harvest /Divest

GE/McKinsey Matrix & Arah Strategis Memposisikan berbagai divisi organisasi dalam 9-sel berdasarkan analisa SWOT dengan weighted scores (dari matriks EFE and IFE). Strategi yang dapat ditempuh, adalah: Grow and build (divisi pada sel 1, 2 or 4): market penetration, market development, product development or backward, forward and horizontal integration. Hold and maintain (divisi pada sel 3, 5, 7): market penetration or product development. Harvest or divest (divisi pada cells 6, 8, 9): divest, liquidate, or retrench.

GE Multifactor Portfolio Matrix Business Strengths High Medium Low Invest/Grow 1 Strongly (build) Invest/Grow 2 Selectively (build) Dominate/ 3 Delay/ divest High Invest/Grow 4 Selectively (build) Earn/ 5 Protect (hold) Harvest/ 6 divest Industry Attractiveness Medium Earn/ 7 Protect (hold) Harvest/ 8 divest Harvest/ 9 divest Low

ADL Portfolio Matrix Industry Maturity (Attractiveness) Consolidate Embrionic Growing Mature Aging Invest Hold Dominant Consolidate Improve Strong Maintain Competitive Position Selective Harvest Favorable Niche Tenable Liquidate Divest Weak Selective

Penggunaan ADL Matrix ADL Matrix adalah matriks yang dibuat oleh konsultan Arthur D. Little sebagai penyempurnaan dari GE/McKinsey Matrix Perbedaannya: Pada ADL Matrix di-plotkan posisi daya saing (competitive position) perusahaan terhadap tahap-tahap siklus hidup (life cyclus dari produk, pasar, dan industri. Penggunaan ketiga matriks dalam proses portofolio bisnis barangkali akan memberikan hasil yang lebih baik.

Illustrasi: Analisa Portofolio Internasional Competitive Strengths Country’s Attractiveness: Market size, Market rate of growth, Regulasi pemerintah, Faktor ekonomi, Politik, dll. Product’s Competitive Strength: Market share, Product fit, Contribution margin, Market support, dll. High Medium Low Invest/Grow Dominate/ Divest/ Joint Venture High Selective Strategies Country Attractiveness Medium Harvest/ Divest/ Combine/ License Low

Formulation Framework TOWS Matrix SPACE Matrix Stage 2: The Matching Stage BCG Matrix IE Matrix Grand Strategy Matrix

INTERNAL EXTERNAL (IE) MATRIX Matriks Internal-External adalah salah satu alat yang dapat digunakan untuk memposisikan perusahaan kedalam matriks yang terdiri atas 9 sel, untuk menyusun strategi perusahaan/grand strategy. IE Matrix terdiri atas sumbu X yang menyatakan skor total dari IFE matrix (IFAS) dan sumbu Y yang menyatakan skor total EFE matrix (EFAS) Arti posisi internal pada sumbu X dan posisi eksternal pada sumbu Y adalah sebagai berikut : POSISI PADA SUMBU X POSISI INTERNAL POSISI INTERNAL POSISI INTERNAL LEMAH RATA-RATA KUAT POSISI EXTERNAL POSISI EXTERNAL POSISI EXTERNAL RENDAH SEDANG TINGGI POSISI PADA SUMBU Y

MATRIKS INTERNAL-EKSTERNAL 9 SEL POSISI MATRIKS INTERNAL-EKSTERNAL POSISI I, II, IV Posisi perusahaan yang menempati sel I, II & IV dapat digambarkan sebagai GROW & BUILD. Strategi yang cocok untuk masing-masing posisi sel ini adalah : Intensive (market penetration, market development & product development) atau integration (backward integration, forward integration, horizontal integration) POSISI III, V, VII Posisi yang menempati sel III, V & VII dapat digambarkan sebagai HOLD & MAINTAIN. Strategi yang cocok untuk masing-masing posisi sel ini adalah : Market penetration & product development. POSISI VI, VIII, IX Posisi perusahaan yang menempati sel VI, VIII & IX dapat menggunakan strategi HARVEST or DIVESTITURE

MATRIKS INTERNAL-EKSTERNAL 9 SEL POSISI MATRIKS INTERNAL-EKSTERNAL SKOR TOTAL IFE/IFAS 4,0 KUAT 3,0 RATA-RATA 2,0 LEMAH 1,0 4,0 TINGGI 3,0 RATA 2,0 RENDAH 1,0 I II III SKOR TOTAL EFE/ EFAS IV V VI VII VIII IX

IE MATRIX : AMAZON

Formulation Framework TOWS Matrix SPACE Matrix Stage 2: The Matching Stage BCG Matrix IE Matrix Grand Strategy Matrix

Grand Strategy Matrix Popular tool for formulating alternative strategies All organizations (or divisions) can be positioned in one of four quadrants Based on two evaluative dimensions: Competitive position Market growth

RAPID MARKET GROWTH Quadrant II Market development Market penetration Product development Horizontal integration Divestiture Liquidation Quadrant I Market development Market penetration Product development Forward integration Backward integration Horizontal integration Concentric diversification WEAK COMPETITIVE POSITION STRONG COMPETITIVE POSITION Quadrant III Retrenchment Concentric diversification Horizontal diversification Conglomerate diversification Liquidation Quadrant IV Concentric diversification Horizontal diversification Conglomerate diversification Joint ventures SLOW MARKET GROWTH

Grand Strategy Matrix Quadrant I Excellent strategic position Concentration on current markets and products Take risks aggressively when necessary

Grand Strategy Matrix Quadrant II Evaluate present approach seriously How to change to improve competitiveness Rapid market growth requires intensive strategy

Grand Strategy Matrix Quadrant III Compete in slow-growth industries Weak competitive position Drastic changes quickly Cost and asset reduction indicated (retrenchment)

Grand Strategy Matrix Quadrant IV Strong competitive position Slow-growth industry Diversification indicated to more promising growth areas

Grand Strategy Matrix : Amazon

Quantitative Strategic Formulation Framework Stage 3: The Decision Stage Quantitative Strategic Planning Matrix (QSPM)

QSPM Quantitative Strategic Planning Matrix Only technique designed to determine the relative attractiveness of feasible alternative actions

QSPM Quantitative Strategic Planning Matrix Tool for objective evaluation of alternative strategies Based on identified external and internal crucial success factors Requires good intuitive judgment

QSPM Quantitative Strategic Planning Matrix List the firm’s key external opportunities & threats; list the firm’s key internal strengths and weaknesses Assign weights to each external and internal critical success factor

QSPM Quantitative Strategic Planning Matrix Examine the Stage 2 (matching) matrices and identify alternative strategies that the organization should consider implementing Determine the Attractiveness Scores (AS)

QSPM Quantitative Strategic Planning Matrix Compute the total Attractiveness Scores Compute the Sum Total Attractiveness Score

Strategic Alternatives QSPM Strategic Alternatives Key Internal Factors Management Marketing Finance/Accounting Production/Operations Research and Development Computer Information Systems Strategy 3 Strategy 2 Strategy 1 Weight Key External Factors Economy Political/Legal/Governmental Social/Cultural/Demographic/Environmental Technological Competitive

QSPM

QSPM Limitations: Requires intuitive judgments and educated assumptions Only as good as the prerequisite inputs

QSPM Positives: Sets of strategies examined simultaneously or sequentially Requires the integration of pertinent external and internal factors in the decision-making process

Cultural Aspects of Strategy Choice Culture: The set of shared values, beliefs, attitudes, customs, norms, personalities, heroes, and heroines that describe a firm

Cultural Aspects of Strategy Choice Culture: Successful strategies depend on degree of support from a firm’s culture

Politics of Strategy Choice Politics in organizations: Management hierarchy Career aspirations Allocation of scarce resources

Politics of Strategy Choice Political tactics for strategists: Equifinality Satisfying Generalization Focus on Higher-Order Issues Provide Political Access on Important Issues

Role of A Board of Directors Duties and Responsibilities: Control and oversight over management Adherence to legal prescriptions Consideration of stakeholder interests Advancement of stockholders’ rights

What type’s of strategies? Discussion Nike vs Reebok Kijang vs Kuda Nokia vs Sony Ericson What type’s of strategies?

Discussion Pepsi vs Coke Mc Donald vs KFC Who will be winner?

Strategy Analysis and Choice This is the end of the PRESENTATION Strategy Analysis and Choice Ir. Erlinda Muslim, MEE Nip. 19601028 198811 2001