This document discusses different approaches to strategic analysis and choice in multibusiness companies, including portfolio approaches, synergy approaches, and the parenting framework. It describes the Boston Consulting Group's Growth-Share Matrix, which categorizes businesses based on their market growth and relative market share. It also discusses how the synergy approach focuses on leveraging core competencies across related businesses. Finally, it outlines how the parenting framework views the parent company's role as providing guidance to help businesses excel, and identifies 10 potential sources of value creation for parent companies.

1. Modul ke:
Fakultas
Program Studi
STRATEGIC MANAGEMENT
BAB IX
STRATEGI MULTIBISNIS
Humannisa Rubina Lestari, S.HumPasca Sarjana
Magister
Management
55117010003

2. Strategic Management, hapzi.ali@mercubuana.ac.id
Learning Objectives
1. Understand the portfolio approach to strategic analysis and
choice in multibusiness companies.
2. Understand and use three different portfolio approaches to
conduct strategic analysis and choice in multibusiness
companies
3. Identify the limitations and weaknesses of the various
portfolio approaches
4. Understand the synergy approach to strategic analysis and
choice in multibusiness companies
5. Evaluate the parent company role in strategic analysis and
choice to determine whether and how it adds tangible value
in a multibusiness company

3. Strategic Management, hapzi.ali@mercubuana.ac.id
The Portfolio Approach
An approach pioneered by
the Boston Consulting
Group that attempted to
help managers “balance”
the flow of cash resources
among their various
businesses while also
identifying their basic
strategic purpose within the
overall portfolio.
The BCG Growth-Share
Matrix

4. Strategic Management, hapzi.ali@mercubuana.ac.id
BCG’s Strategic Environments Matrix

5. Strategic Management, hapzi.ali@mercubuana.ac.id
BCG’s Strategic
Environments Matrix
Types of Businesses
 Volume Businesses
 Businesses that have few sources of advantage, but the size
is large – typically the result of scale economics
 Stalemate Businesses
 Businesses with few sources of advantage, most of them
small. Skills in operational efficiency, low overhead, and
cost management are critical to profitability.

6. Strategic Management, hapzi.ali@mercubuana.ac.id
BCG’s Strategic Environments Matrix
Types of Businesses (contd.)
• Fragmented Businesses
– Businesses with many sources of advantage, but they are all
small. They typically involve differentiated products with
low brand loyalty, easily replicated technology, and minimal
scale economies.
• Specialization Businesses
– Businesses with many sources of advantage. Skills in
achieving differentiation (product design, branding
expertise, innovation, and perhaps scale) characterize
winning specialization businesses.

7. Strategic Management, hapzi.ali@mercubuana.ac.id
The Synergy Approach
• Each core competency should provide a
relevant competitive advantage to the
intended businesses
• Businesses in the portfolio should be related
in ways that make the company’s core
competencies beneficial
• Any combination of competencies must be
unique or difficult to recreate

8. Strategic Management, hapzi.ali@mercubuana.ac.id
The Parenting Framework
The perspective that the role of corporate headquarters
(the “parent”) in multibusiness (the “children”)
companies is that of a parent sharing wisdom, insight,
and guidance to help develop its various businesses to
excel.
The parenting framework perspective sees
multibusiness companies as creating value by
influencing—or parenting—their businesses . The best
parent companies create more value than any of their
rivals do or would if they owned the same businesses. To
add value, a parent must improve its businesses

9. Strategic Management, hapzi.ali@mercubuana.ac.id
10 Sources of Parenting Opportunities
o Size & Age
o Management
o Business
Definition
o Predictable
Errors
o Linkages
o Common
capabilities
o Specialized expertise
o External relations
o Major decisions
o Major changes

10. Strategic Management, hapzi.ali@mercubuana.ac.id
Patching
 The process by which
corporate executives
routinely “remap” their
businesses to match
rapidly changing market
opportunities – adding,
splitting, transferring,
exiting, or combining
chunks of businesses.
 It can take the form of
adding, splitting,
transferring, exiting, or
combining chunks of
businesses
 Patching is not seen as
critical in stable,
unchanging markets
 When markets are turbulent
and rapidly changing,
patching is seen as critical
to the creation of economic
value in a multibusiness
company

11. Strategic Management, hapzi.ali@mercubuana.ac.id
Patching (contd.)
• Strategic Processes
– Decision making, operational activities, and sales activities
that are critical business processes.
• Strategic Positioning
– The way a business is designed and positioned to serve
target markets.

12. Strategic Management, hapzi.ali@mercubuana.ac.id
Kepustakaan
• Jennifer, Ria. 2015. https://prezi.com/orhn_8oe2uqv/strategi-multibisnis/ (4 Maret
2018)
• Pearce, J. A & Robinson, R.B (PR), Planning for Domesctic & Global competition,
Irwin Mc Graw-Hill Inc., Singapore, 2013
•