1. Fred R. David
Prentice Hall
Ch5-1
Strategies in ActionStrategies in Action
Even if you’re on the right track, you’ll get
run over if you just sit there.
-- Will Rogers
2. Fred R. David
Prentice Hall
Ch5-2
Long-Term ObjectivesLong-Term Objectives
Long-term objectives are necessary –Long-term objectives are necessary –
– CorporateCorporate
– DivisionalDivisional
– Functional levelsFunctional levels
3. Fred R. David
Prentice Hall
Ch5-3
Long-Term ObjectivesLong-Term Objectives
Objectives –Objectives –
– QuantifiableQuantifiable
– MeasurableMeasurable
– RealisticRealistic
– UnderstandableUnderstandable
– ChallengingChallenging
– HierarchicalHierarchical
– ObtainableObtainable
– CongruentCongruent
– Time-lineTime-line
4. Fred R. David
Prentice Hall
Ch5-4
Long-Term ObjectivesLong-Term Objectives
• The results expected from pursuingThe results expected from pursuing
certain strategiescertain strategies
5. Fred R. David
Prentice Hall
Ch 6-5
SWOT MatrixSWOT Matrix
WT Strategies
(Defensive)
Minimize weaknesses
and avoid threats
ST Strategies
(Diversification)
Use strengths to avoid
threats
Threats-T
List Threats
WO Strategies
(Turn-Around)
Overcome weaknesses
by taking advantage of
opportunities
SO Strategies
(Expansive)
Use strengths to take
advantage of opportunities
Opportunities-O
List Opportunities
Weaknesses-W
List Weaknesses
Strengths-S
List Strengths
6. MATRIKS IE Sel I, II dan IV
Tumbuh dan
Kembangkan
> Strategi intensif:
penetrasi pasar,
pengembangan pasar,
dan pengembangan
produk.
> Strategi integratif :
integrasi kebelakang,
integrasi kedepan, dan
integrasi horisontal)
Sel III, V dan VII Jaga
dan Pelihara
Penetrasi pasar dan
Pengembangan
produk)
Sel VI, VIII dan IX Tuai
dan Divestasi
IV
I II III
V VI
VII VIII IX
7. Fred R. David
Prentice Hall
Ch5-7
Integration StrategiesIntegration Strategies
Integration
Strategies
Forward Integration
Backward Integration
Horizontal Integration
8. Fred R. David
Prentice Hall
Ch5-8
Integration StrategiesIntegration Strategies
Integration strategies –Integration strategies –
– Allow a firm to gain control over:Allow a firm to gain control over:
• DistributorsDistributors
• SuppliersSuppliers
• competitorscompetitors
9. Fred R. David
Prentice Hall
Ch5-9
Integration StrategiesIntegration Strategies
Forward Integration –Forward Integration –
– Gaining ownership or increased controlGaining ownership or increased control
over distributors or retailersover distributors or retailers
10. Fred R. David
Prentice Hall
Ch5-10
Integration StrategiesIntegration Strategies
Guidelines for Forward Integration –Guidelines for Forward Integration –
Present distributors are expensive, unreliable, or
incapable of meeting firm’s needs
Availability of quality distributors is limited
When firm competes in an industry that is expected
to grow markedly
Organization has both capital and human resources
needed to manage new business of distribution
Advantages of stable production are high
Present distributors have high profit margins
11. Fred R. David
Prentice Hall
Ch5-11
Integration StrategiesIntegration Strategies
Backward Integration –Backward Integration –
– Seeking ownership or increasedSeeking ownership or increased
control of a firm’s supplierscontrol of a firm’s suppliers
12. Fred R. David
Prentice Hall
Ch5-12
Integration StrategiesIntegration Strategies
Guidelines for Backward Integration –Guidelines for Backward Integration –
When present suppliers are expensive, unreliable,
or incapable of meeting needs
Number of suppliers is small and number of
competitors large
High growth in industry sector
Firm has both capital and human resources to
manage new business
Advantages of stable prices are important
Present supplies have high profit margins
13. Fred R. David
Prentice Hall
Ch5-13
Integration StrategiesIntegration Strategies
Horizontal Integration –Horizontal Integration –
– Seeking ownership or increasedSeeking ownership or increased
control over competitorscontrol over competitors
14. Fred R. David
Prentice Hall
Ch5-14
Integration StrategiesIntegration Strategies
Guidelines for Horizontal Integration –Guidelines for Horizontal Integration –
Firm can gain monopolistic characteristics without
being challenged by federal government
Competes in growing industry
Increased economies of scale provide major
competitive advantages
Faltering due to lack of managerial expertise or
need for particular resources
15. Fred R. David
Prentice Hall
Ch5-15
Intensive StrategiesIntensive Strategies
Intensive
Strategies
Market Penetration
Market Development
Product Development
16. Fred R. David
Prentice Hall
Ch5-16
Intensive StrategiesIntensive Strategies
Intensive strategies –Intensive strategies –
– Require intensive efforts to improve aRequire intensive efforts to improve a
firm’s competitive position with existingfirm’s competitive position with existing
productsproducts
17. Fred R. David
Prentice Hall
Ch5-17
Intensive StrategiesIntensive Strategies
Market Penetration –Market Penetration –
– Seeking increased market share forSeeking increased market share for
present products or services in presentpresent products or services in present
markets through greater marketingmarkets through greater marketing
effortsefforts
18. Fred R. David
Prentice Hall
Ch5-18
Intensive StrategiesIntensive Strategies
Guidelines for Market Penetration –Guidelines for Market Penetration –
Current markets not saturated
Usage rate of present customers can be increased
significantly
Market shares of competitors declining while total
industry sales increasing
Increased economies of scale provide major
competitive advantages
19. Fred R. David
Prentice Hall
Ch5-19
Intensive StrategiesIntensive Strategies
Market Development –Market Development –
– Introducing present products orIntroducing present products or
services into new geographic areaservices into new geographic area
20. Fred R. David
Prentice Hall
Ch5-20
Intensive StrategiesIntensive Strategies
Guidelines for Market Development –Guidelines for Market Development –
New channels of distribution that are reliable,
inexpensive, and good quality
Firm is very successful at what it does
Untapped or unsaturated markets
Capital and human resources necessary to manage
expanded operations
Excess production capacity
Basic industry rapidly becoming global
21. Fred R. David
Prentice Hall
Ch5-21
Intensive StrategiesIntensive Strategies
Product Development –Product Development –
– Seeking increased sales by improvingSeeking increased sales by improving
present products or services orpresent products or services or
developing new onesdeveloping new ones
22. Fred R. David
Prentice Hall
Ch5-22
Intensive StrategiesIntensive Strategies
Guidelines for Product Development –Guidelines for Product Development –
Products in maturity stage of life cycle
Competes in industry characterized by rapid
technological developments
Major competitors offer better-quality products at
comparable prices
Compete in high-growth industry
Strong research and development capabilities
23. Fred R. David
Prentice Hall
Ch5-23
Diversification StrategiesDiversification Strategies
Diversification
Strategies
Concentric
Diversification
Conglomerate
Diversification
Horizontal
Diversification
24. Fred R. David
Prentice Hall
Ch5-24
Diversification StrategiesDiversification Strategies
Diversification strategies –Diversification strategies –
– Becoming less popular asBecoming less popular as
organizations are finding it moreorganizations are finding it more
difficult to manage diverse businessdifficult to manage diverse business
activitiesactivities
25. Fred R. David
Prentice Hall
Ch5-25
Diversification StrategiesDiversification Strategies
Concentric Diversification –Concentric Diversification –
– Adding new, but related, products orAdding new, but related, products or
servicesservices
26. Fred R. David
Prentice Hall
Ch5-26
Diversification StrategiesDiversification Strategies
Guidelines for Concentric Diversification –Guidelines for Concentric Diversification –
Competes in no- or slow-growth industry
Adding new & related products increases sales of
current products
New & related products offered at competitive prices
Current products are in decline stage of the product
life cycle
Strong management team
27. Fred R. David
Prentice Hall
Ch5-27
Diversification StrategiesDiversification Strategies
Conglomerate Diversification –Conglomerate Diversification –
– Adding new, unrelated products orAdding new, unrelated products or
servicesservices
28. Fred R. David
Prentice Hall
Ch5-28
Diversification StrategiesDiversification Strategies
Guidelines for Conglomerate Diversification –Guidelines for Conglomerate Diversification –
Declining annual sales and profits
Capital and managerial talent to compete
successfully in a new industry
Financial synergy between the acquired and
acquiring firms
Exiting markets for present products are saturated
29. Fred R. David
Prentice Hall
Ch5-29
Diversification StrategiesDiversification Strategies
Horizontal Diversification –Horizontal Diversification –
– Adding new, unrelated products orAdding new, unrelated products or
services for present customersservices for present customers
30. Fred R. David
Prentice Hall
Ch5-30
Diversification StrategiesDiversification Strategies
Guidelines for Horizontal Diversification –Guidelines for Horizontal Diversification –
Revenues from current products/services would
increase significantly by adding the new unrelated
products
Highly competitive and/or no-growth industry w/low
margins and returns
Present distribution channels can be used to market
new products to current customers
New products have counter cyclical sales patterns
compared to existing products
31. Fred R. David
Prentice Hall
Ch5-31
Defensive StrategiesDefensive Strategies
Defensive
Strategies
Retrenchment
Divestiture
Liquidation
32. Fred R. David
Prentice Hall
Ch5-32
Defensive StrategiesDefensive Strategies
Retrenchment –Retrenchment –
– Regrouping through cost and assetRegrouping through cost and asset
reduction to reverse declining salesreduction to reverse declining sales
and profitand profit
– Chapter 11 Bankruptcy (worst case)Chapter 11 Bankruptcy (worst case)
– [[Chapter 13 for Small businesses]
33. Fred R. David
Prentice Hall
Ch5-33
Defensive StrategiesDefensive Strategies
Guidelines for RetrenchmentGuidelines for Retrenchment ––
Firm has failed to meet its objectives and goals
consistently over time but has distinctive
competencies
Firm is one of the weaker competitors
Inefficiency, low profitability, poor employee morale,
and pressure from stockholders to improve
performance.
When an organization’s strategic managers have
failed
Very quick growth to large organization where a
major internal reorganization is needed
34. Fred R. David
Prentice Hall
Ch5-34
Defensive StrategiesDefensive Strategies
Divestiture –Divestiture –
– Selling a division or part of anSelling a division or part of an
organizationorganization
35. Fred R. David
Prentice Hall
Ch5-35
Defensive StrategiesDefensive Strategies
Guidelines for Divestiture –Guidelines for Divestiture –
When firm has pursued retrenchment but failed to
attain needed improvements
When a division needs more resources than the firm
can provide
When a division is responsible for the firm’s overall
poor performance
When a division is a misfit with the organization
When a large amount of cash is needed and cannot
be obtained from other sources.
36. Fred R. David
Prentice Hall
Ch5-36
Defensive StrategiesDefensive Strategies
Liquidation–Liquidation–
– Selling all of a company’s assets, inSelling all of a company’s assets, in
parts, for their tangible worthparts, for their tangible worth
– Chapter 7 Bankruptcy (entire firm sold)
37. Fred R. David
Prentice Hall
Ch5-37
Defensive StrategiesDefensive Strategies
Guidelines for LiquidationGuidelines for Liquidation ––
When both retrenchment and divestiture have been
pursued unsuccessfully
If the only alternative is bankruptcy, liquidation is an
orderly alternative
When stockholders can minimize their losses by
selling the firm’s assets
38. Fred R. David
Prentice Hall
Ch5-38
Joint Venture/Partnering
Two or more companies form a temporary
partnership or consortium for purpose of
capitalizing on some opportunity.
39. Fred R. David
Prentice Hall
Ch5-39
Joint Venture/Partnering
Cooperative ArrangementsCooperative Arrangements ––
Research and development partnerships
Cross-distribution agreements
Cross-licensing agreements
Cross-manufacturing agreements
Joint-bidding consortia
40. Fred R. David
Prentice Hall
Ch5-40
Joint Venture/Partnering
Problems Causing Joint Ventures to FailProblems Causing Joint Ventures to Fail ––
Managers who must collaborate daily not involved in
forming or shaping the venture
Venture may benefit the companies but not the
customers
Venture not supported equally by both partners
Venture may begin to compete with one of the
partners more so than the other
41. Fred R. David
Prentice Hall
Ch5-41
Joint Venture/Partnering
Guidelines for Joint VenturesGuidelines for Joint Ventures ––
Combination of privately held and publicly held can be
synergistically combined
Domestic forms joint venture with foreign firm, can obtain local
management to reduce certain risks
Distinctive competencies of two or more firms are
complementary
Overwhelming resources and risks where project is potentially
very profitable (e.g., Alaska pipeline)
Two or more smaller firms have trouble competing with larger
firm
A need exists to introduce a new technology quickly
42. Fred R. David
Prentice Hall
Ch5-42
Merger/AcquisitionMerger/Acquisition
• Merger - two organizations of about equal
size unite to form one enterprise
• Acquisition - large organization purchases a
smaller firm, or vice versa
• Takeover or Hostile Takeover - M or A is not
desired by both parties
43. Fred R. David
Prentice Hall
Ch5-43
Leveraged Buyout (LBO)Leveraged Buyout (LBO)
• Corporation’s shares are bought by the
company’s management or other private
investors using borrowed funds
• Organization becomes private or closely-held
45. Fred R. David
Prentice Hall
Bisnis Buku Era GlobalisasiBisnis Buku Era Globalisasi
Bisnis Buku
Kebijakan Global
Bersaing
Teknologi
Perubahan
Bisnis teh
berubah
46. Fred R. David
Prentice Hall
Ch5-46
Percetakan
Penerbitan
PengecerDistributor
Penulis
• Manajer buku
• Investor buku
• Penyebar buku • Penjual buku
• Pemilik buku
BISNISBISNIS
BUKUBUKU
• Pembuat buku
47. Fred R. David
Prentice Hall
Ch5-47
Distribusi BukuDistribusi Buku
Penerbit Penerbit Penerbit Penerbit
Distributor
Agen
Pengecer
Konsumen
Agen
Pengecer
Konsumen
Pengecer
Konsumen Konsumen
48. Fred R. David
Prentice Hall
Ch5-48Toko buku
Telemarketing
Cybermarketing
DirectSelling
Pameran
Konter Buku
Persewaan
RETAILERRETAILER
•Penerbit
•Agen
•Toko buku