MANAJEMEN STRATEGI
dan
KINERJA BISNIS
FO312
Chapter 11
STRATEGI UMUM KORPORASI
Corporate Strategy
Three Key Issues:



Firm’s directional strategy
Firm’s portfolio strategy
Firm’s parenting strategy
2
Corporate Strategy
Directional Strategy:
 Three Grand Strategies:
o Growth strategies
o Stability strategies
o Retrenchment strategies
3
Corporate Strategy
Growth Strategies:


Most widely pursued strategies
External mechanisms:

Mergers


Acquisition


Transaction involving two or more firms in
which stock is exchanged but only one firm
survives.
Purchase of a firm that is absorbed as an
operating subsidiary of the acquiring firm.
Strategic Alliance

Partnership of two or more firms to achieve
strategically significant objectives that are
mutually beneficial.
4
Corporate Strategy
2 Basic Growth Strategies:

Concentration
– Current product line in one industry

Diversification
– Into other product lines in other industries
5
Corporate Strategy
Concentration:
Vertical growth

Vertical integration



Full integration
Taper integration
Quasi-integration

Backward integration

Forward integration
6
Corporate Strategy
Concentration:
Horizontal Growth

Horizontal integration
7
Corporate Strategy
Diversification:
Concentric:


Growth into related industry
Search for synergies
8
Corporate Strategy
Diversification:
Conglomerate:


Growth into unrelated industry
Concern with financial considerations
9
Corporate Strategy
International
Entry
Options
Exporting
Licensing
Franchising
Joint Ventures
Acquisitions
Green-Field Development
Production Sharing
Turnkey Operations
BOT Concept
Management Contracts
10
Corporate Strategy
Stability Strategies:

Pause/proceed with caution

No change

Profit strategies
11
Corporate Strategy
Retrenchment Strategies:

Turnaround

Captive Company Strategy

Selling out

Bankruptcy

Liquidation
12
Corporate Strategy
Portfolio Analysis

How much of our time and money should we
spend on our best products to ensure that they
continue to be successful?

How much of our time and money should we
spend developing new costly products, most of
which will never be successful?
13
BCG Matrix
14
BCG Matrix
Question Marks
Low relative market share – compete in
high-growth industry
Cash needs are high
Case generation is low
Decision to strengthen (intensive strategies)
or divest
BCG Matrix
Stars
High relative market share and high growth
rate
Best long-run opportunities for growth &
profitability
Substantial investment to maintain or
strengthen dominant position
Integration strategies, intensive strategies, joint
ventures
16
BCG Matrix
Cash Cows
High relative market share, competes in lowgrowth industry
Generate cash in excess of their needs
Milked for other purposes
Maintain strong position as long as possible
Product development, concentric diversification
If weakens—retrenchment or divestiture
BCG Matrix
Dogs
Low relative market share & compete in
slow or no market growth
Weak internal & external position
Liquidation, divestiture, retrenchment
Corporate Strategy
Portfolio Analysis
Advantages:




Top management evaluates each of firm’s
businesses individually
Use of externally-oriented data to
supplement management judgment
Raises issue of cash flow availability
Facilitates communication
19
Corporate Strategy
Portfolio Analysis
Disadvantages:




Difficult to define product/market segments
Standard strategies can miss opportunities
Illusion of scientific rigor
Value-laden terms
20
Corporate Strategy
Corporate Parenting:

Views the corporation in terms of resources
and capabilities that can be used to build
business unit value as well as generate
synergies across business units.
21
Corporate Strategy
Corporate Parenting:

Strategic factors



Those elements of a company that determine its
strategic success or failure
Performance improvement
Analyze fit
22
Corporate Strategy
Horizontal Strategy:

Corporate strategy that cuts across business
unit boundaries to build synergy across
business units to improve the competitive
position of one or more business units.
23
Grand Strategy Matrix
Tool for formulating alternative strategies
Based on two dimensions
Competitive position
Market growth
RAPID MARKET GROWTH
1.
2.
3.
4.
5.
6.
Quadrant II
Market development
Market penetration
Product development
Horizontal integration
Divestiture
Liquidation
1.
2.
3.
4.
5.
6.
7.
1.
2.
3.
4.
5.
Quadrant III
Retrenchment
Concentric diversification
Horizontal diversification
Conglomerate
diversification
Liquidation
1.
2.
3.
4.
Quadrant I
Market development
Market penetration
Product development
Forward integration
Backward integration
Horizontal integration
Concentric diversification
Quadrant IV
Concentric diversification
Horizontal diversification
Conglomerate
diversification
Joint ventures
Grand Strategy Matrix
Quadrant I
Excellent strategic position
Concentration on current markets/products
Take risks aggressively when necessary
Grand Strategy Matrix
Quadrant II
Evaluate present approach
How 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 & asset reduction (retrenchment)
Grand Strategy Matrix
Quadrant IV
Strong competitive position
Slow-growth industry
Diversification to more promising growth
areas