Strategy review, evaluation, and control

Presentasi berjudul: "Strategy review, evaluation, and control"— Transcript presentasi:

1 Strategy review, evaluation, and control

2 Quiz Sebuah perusahaan dibidang Telekomunikasi terkemuka dan sudah go public sedang mengimplementasikan Strategi Market Development mebutuhkan dana sebesar Rp 100 Milyard untuk mendapatkan dana tersebut terdapat 3 alternatif : Common Stock (menjual saham), Debt (pinjaman dari Bank) atau Combination ( 50% common stock dan 50% debt). Situasi Perusahaan saat ini sbb : Jumlah saham beredar : 100 juta lembar, Harga per lembar saham : Rp ,- Bunga pinjaman per tahun : 25% Pajak perusahaan sebesar 30% Perusahaan memproyeksikan EBIT tahun depan sebesar Rp 300 Milyard Pertanyaan : Dengan menggunakan tool EPS / EBIT Analysis ( R David page 294) alternative mana yang paling menguntungkan bagi perusahaan untuk mendapatkan dana tersebut

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5 The Nature of Strategy Evaluation
Strategy evaluation is vital to an organization’s well being; timely evaluation can alert management to problem or potential problem before a situation become critical, it is includes three basic activities Examining the underlying bases of a firm’s strategy Comparing expected result with actual result Taking corrective action to ensure that performance conforms to plan

6 Rumelt’s Criteria for Evaluating Strategies
A strategy should not present inconsistent goals and policies Consistency It refers to the need for strategist to examine sets of trends. Consonance That is, can the strategy be attempted within the physical, human and financial resources of the enterprise Feasibility The strategy must provide for the creation and/or maintenance of a competitive advantage in a selected area of activity Advantage Advantage

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10 Strategy Evaluation Framework
Activity 0ne : Review Underlying bases of Strategy Prepare Revised Prepare Revised IFE Matrix EFE Matrix Compare Revised to Compare Revised to Existing IFE Matrix Existing EFE Matrix Activity three : Take Corrective Action Do significant diff’ occur ? YES NO Activity two : Measure Org’ performance Compare planed to actual progress toward meeting stated objective. YES Continue present course NO Do significant diff’ occur ?

11 Revise EFE Matrix: How effective firm’s strategy has been in response to key opprotunities and threats.

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14 Revised IFE Matrix Revised IFE matrix should focus on changes in the organization’s management , marketing, finance/accounting, R&D and management information system

15 Revised EFE matrix It should indicate how effective a firm’s strategies have been in response to key opportunity and threats How have competitor reacted to our strategies ? How have competitor’s strategies changed ? Have major competitor’s strength and weaknesses changed ? Why are competitor making certain strategic changes ? Why are some competitor’s strategies more successful than other ? How satisfied are our competitors with their present market position and profitability ? How far can our major competitors be pushed before retaliating? How could we more effectively corporate with our competitors ?

16 Evaluating Strategies
External opportunities and threats and internal strengths and weaknesses should continually be monitored for change. Are our internal strengths still strength ? Have we added other internal strengths ? If so, what are they ? Are our internal weaknesses still weaknesses ? Do we now have other internal weaknesses ? If so, what are they ? Are our external opportunities still opportunities ? Are there now other external opportunities ? If so, what are they Are our external threats still threats ? Are there now other external threats ? If so, what are they ? Are we vulnerable to hostile takeover ?

17 Evaluating Strategies Qualitative Question
Is the strategy internally consistent ? To what extent are the firm’s alternative strategies socially responsible ? Is the strategy consistent with the environment ? What are the relationship among the firm’s key internal and external strategic factors ? Is the strategies appropriate in view of available resources ? How are major competitors likely to respond to particular strategies ? Does the strategy involve an acceptable degree of risk ? Does the strategy have an appropriate time framework ? Is the strategy workable ? Balancing of investment high risk and low risk Balancing investment long term and short term projects Balancing investment slow growing and fast growing markets Balancing investment among division

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19 Measuring Organizational Performance
It includes comparing expected result to actual result, investigating deviation from plans, evaluating individual performance, and examining progress being made toward meeting objective. Three critical comparison : Comparing the firm’s performance over different time periods Comparing the firm’s performance to competitors Comparing the firm’s performance to industry average Return on investment (ROI) Earning per share Sales growth Return on equity (ROE) Asset growth Profit Margin Market share Debt to equity

20 Taking Corrective Actions
taking corrective action, requires making change Example of changes : altering an org’ structure, replacing one or more key individuals, selling a division, revising business mission, revising objectives, devising new policies, issuing stock to raise capital, adding salesperson, differently allocating resources, developing new performance incentive. Strategy evaluation enhances an organization’s ability and capacity to adapt successfully to changing circumstances Research suggest that participation in strategy-evaluation activities is one of the best way to overcome individual’s resistance to change Strategy evaluation can lead to strategy-formulation, strategy implementation or both, or no change at all

21 Contingency Planning If a major competitor withdraw from particular markets as intelligence reports indicate, what action should our firm takes ? Contingency plan can be defined as alternative plan that can be put into effect if certain key events do not occur as expected If our sales objective are not reached, what action should our firm take to avoid profit losses ? If demand of our new product exceeds plan, what action should our firm take to meet the higher demand? If certain disaster occur-such as loss of computer capabilities, a hostile takeover attempt, loss of patent protection, or destructing of manufacturing facilities because of earthquakes, what action should we take? If a new technological advancement makes our new product obsolete sooner than expected, what action should we take ?

22 Tugas Terakhir Pelajari Case sesuai dengan Tugas Besar kelompok anda.
Buat Summary tugas Modul 2 s/d 13 dikaitkan dengan case anda, diharapkan anda berpedoman pada buku R. David Part 5 : Strategic Management Case Analysis Disajikan dalam bentuk power point sebanyak halaman termasuk halaman judul. Tugas dikumpulkan dalam bentuk hard copy dikumpulkan saat pertemuan 13 Setiap kelompok mempresentasikan secara bergantian sesuai undian pada pertemuan berikut. Tidak ada struktur organisasi yang paling optimal, beda perusahaan beda organisasi yang cocok