kuliah 2-3 manstra s1 mbti -dt

8/3/2019 Kuliah 2-3 Manstra S1 MBTI -DT

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Integrity Entrepreneurship Best For Excellence

Strategic ManagementConcept and ProcessKuliah 2-3

Translating Vision, Mission and Corporate Strategy into Business and Functional Strategy

DODIE TRICAHYONO


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Definitions

Strategic Competitiveness

When a firm successfully formulates and implements a value-creating strategy

Sustainable Competitive Advantage

When competitors are unable to duplicate a companys value-creating strategy

Strategic Management Process

The full set of commitments, decisions, and actions required for a firm to achievestrategic competitiveness and earn above-average returns

Risk

An investors uncertainty about the economic gains or losses that will result from a

particular investment

Average Returns

Returns equal to those an investor expects to earn from other investments with a similaramount of risk

Above-average Returns

Returns in excess of what an investor expects to earn from other investments with asimilar amount of risk


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Competitive advantage Stakeholders Strategists Vision and Mission Statements

External Opportunities and Threats Internal Strengths and Weaknesses Long-term Objectives Strategies Annual Objectives Policies

Key Terms in Strategic Management


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Strategic Management Concepts

Definition:

Strategic management consists of the analysis, decisions, and actions anorganization undertakes in order to create and sustain competitiveadvantages.

Key Attributes of Strategic Management:

Directs the organization toward overall goals and objectives.

Involves the inclusion of multiple stakeholders in decision making.

Needs to incorporate short-term and long-term perspectives.

Recognizes tradeoffs between efficiency and effectiveness.

Some Key Driving Forces: Globalization: Think globally, act locally

Rapid technological change and diffusion

Intellectual capital: Knowledge as the source of competitive advantage

Enhancing employee involvement


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The Strategy-Making, Strategy-ExecutingProcess


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Developing a Strategic Vision

Involves thinking strategicallyabout

Futuredirection of company

Changesin companys product-market-customer-technology to improve

Current market position

Future prospects

Astrategic visionis a road map showing the route a companyintends to take in developing and strengthening its business. It

paints a picture of a companys destination and provides arationale for going there.


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Key Elements of a Strategic Vision

Delineates managements aspirations for the business

Charts a strategic path for the future

Where are we going?

Steers energies of employees

in a common direction

Molds organizational identity

Is distinctiveand specificto

a particular organization

Avoids use of generic languageTriggers strong emotions

Is challenging, uncomfortable, nail biting



Examples of Strategic Visions

NikeTo bring innovation inspiration to every athlete in the world.

General ElectricWe will become number one or number two in every market we serve,

and revolutionize this company to have

the speed and agility of a small enterprise.



Examples of Strategic Visions

IntelOur vision: Getting to a billion connected computers worldwide,

millions of servers, and trillions of dollars of e-commerce. Intelscore mission is being the building block supplier to the Internet

economy and spurring efforts to make the Internet more useful.

Being connected is now at the center of peoples computing

experience. We are helping to expand the capabilities of the PC

platform and the Internet . . . We have seen only the early stagesof deployment of digital technologies.



Characteristics of Mission Statement

Defines currentbusiness activities,

highlighting boundariesof current business Present products and services

Types of customers served

Conveys

Whowe are,

Whatwe do, and

Whywe are here

A companys mission isnotto make a profit! Its true mission is its

answer to What will we do to make a profit?

Making a profit is an objective or intended outcome!

Three factors to consider

Customer needsWhat is being satisfied

Customer groupsWho is being satisfied

Technologies/resources/businessapproaches used and activitiesperformedHow customer needs are satisfied



Dells Mission Statement

Dell Computers mission is to be the most successfull computercompany in the world at delivering the best customer experience in

markets we serve. In doing so, Dell will meet customer

expectations of highest quality; leading technology; competitive

pricing; individual and company accountability; best-in-class

service and support; flexible customization capability; superior

corporate citizenship; financial stability.

Dell Computer



Example: Mission Statement

Pfizer is a research-based, global pharmaceutical

company.We discover and develop innovative, value-added

products that improve the quality of life of people

around the world and help them enjoy longer, healthier,

and more productive lives.The company has three business segments: health

care, animal health and consumer health care. Our

products are available in more than 150 countries.

Pfizer Inc.



The Ritz-Carlton Hotel is a place where the genuine

care and comfort of our guests is our highest mission.We pledge to provide the finest personal service and

facilities for our guests who will always enjoy a warm,

relaxed yet refined ambiance.

The Ritz-Carlton experiences enlivens the senses,

instills well-being, and fulfills even the unexpressed

wishes and needs of our guests.

Ritz-Carlton Hotels





The Gillette Company is a globally focused consumerproducts company that seeks competitive advantage in

quality, value-added personal care and personal useproducts. We compete in four large, worldwide businesses:

personal grooming products, consumer portable powerproducts, stationery products and small electrical

appliances.

As a company, we share skills and resources amongbusiness units to optimize performance. We are committed

to a plan of sustained sales and profit growth thatrecognizes and balances both short- and long-term

objectives.

The Gillette Company




Our missionis to achieve or enhance clear leadership, worldwide, inthe existing or new core consumer product categories in which we

choose to compete. Current core categories are:

Male grooming products - blades and razors, electric shavers,shaving preparations and deodorants . . .

Female grooming products - wet shaving products, hair removaland hair care appliances and deodorants . . .

Alkaline and specialty batteries and cells. Writing instruments and correction products.

Certain areas of the oral care market - toothbrushes . . .

Selected areas of the high-quality small household appliancebusiness - coffeemakers . . .

The Gillette Company



How to Evaluate the Mission Statements

CustomersWho are the firms customers?

Products or ServicesWhat are the firms major products or servoces?

Markets Geographically, where does the firm compete?

Technology Is the firm technologically current?

Concerns for survival, growth, and profitability

Is the firm committed togrowth and financial soundness?

Philosophy What are the basic beliefs, values, aspirations, and ethicalpriorities of the firm?

Self-conceptWhat is the firms distinctive competence or major

competitive advantage?Concern for public image Is the firm responsive to social, community,

and environmental concerns?

Concern for employees Are employees a valuable asset of the firm?

S



Mission Statements forFunctional Departments

Spotlights departments

Roleand scopeofactivities

Directionwhichdepartment needs topursue

Contributionto firmsoverall mission



Break

Tugas Kelompok 1: Cari Vission and Mission Statements

dari satu perusahaan dan analisis dengan menggunakanteori yang ada.


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Linking the Vision With Company Values

A statement of valuesis often provided

to guide the companys pursuit of its vision

Values Beliefs, business principles, and ways of doingthings that are incorporated into

Companys operations

Behavior of workforce

Values statements

Contain between four and eight values

Are ideally tightly connected to and reinforcecompanys vision, strategy, and operating

practices


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Example: Company Values

Home Depot

Creating

shareholder value

Building strong

relationships

Entrepreneurial

spirit Excellent customer

service

Giving back to the

community

Respect for all

people

Doing the right

thing

Taking care of

people


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Du Pont

Safety Ethics

Environmental

stewardship

Respect for

people

Example: Company Values


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Communicating the Strategic Vision

An exciting, inspirationalvision

Contains memorable language

Clearly maps companys future direction

Challenges and motivates workforce

Provokes emotion and enthusiasm

Winning supportfor the vision involves

Putting where we are going and why in writing

Distributing the statement organization-wide

Having executives explain the visionto the workforce


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Examples: Vision Slogans

Levi Strauss & CompanyWe will clothe the world by marketing the most appealing and

widely worn casual clothing in the world.

Microsoft CorporationEmpower people through great softwareany time, any place,

and on any device.

Mayo Clinic

The best care to every patient every day.


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Strategic Inflection Points

There are times when companies come to a major fork in

the road.Perhaps because market conditions are changing rapidly in ways

that threaten or endanger the companys business prospects

Perhaps because the strategy simply runs out of stream

Perhaps because the actions of competitors block the success of thecompanys present strategic course and strategy

Critical decisions have to be made about where do we go

from hereA major new directional path may have to be taken

A major new strategymay be needed


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Intels Strategic Inflection Points

Prior to mid-1980s

Focus on memory chips

Starting in mid-1980sAbandon memory chip business (due to lower-cost Japanesecompanies taking over the market) and

Become preeminent supplier of microprocessors to PC industryMake PC central appliance in workplace and home Be undisputed leader in driving PC technology forward

1998Shift focus from PC technology to

becoming the preeminent building blocksupplier to the Internet economy

2005? 2010?


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Payoffs of a Clear Strategic Vision

Crystallizesan organizationslong-term direction

Reduces riskof rudderless decision-making

Assists in gaining supportof organizational members forchanges to make the vision a reality

Helps keep strategy-related actions

of managers on common path

Helps an organization prepare forthe future


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Setting Objectives

Purposeof setting objectives Converts vision into specific performance targets

Creates yardsticks to track performance

Pushes firm to be inventive, intentional, andfocused in its actions

Setting challenging, achievableobjectives guards against

Complacency

Internal confusion

Status quo performance


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Characteristics of Objectives

Represent commitment to achievespecific performance targets

Spell-out how muchof what kindof performance by when

Well-stated objectives are

Quantifiable

Measurable

Contain a deadlinefor achievement

Establishing objectivesconvertsthe

vision intoconcrete performance outcomes!


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Types of Objectives Required

Outcomes focusedon improving financialperformance

Outcomes focused onimproving long-termcompetitive business

position

Financial Objectives Strategic Objectives

X% increase in annual revenues

X% increase annually in after-tax profits

X% increase annually in earnings per share

Annual dividend increases of X%

Profit margins of X%

X% return on capital employed (ROCE)

Increased shareholder value

Strong bond and credit ratings

Sufficient internal cash flows to fund 100% ofnew capital investment

Stable earnings during periods of recession

Have strong position in X market

Increase market share to become X%

Shorter On-Time delivery than rivals

Shorter design-to-market times (x) thanrivals

Lowest costs of production

Wider geographic coverage than rivals

No 1 in Quality of products and service

Wider product line than rivals


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Unilevers Strategic and Financial Objectives

Grow annual revenues by 5-6% annually

Increase operating profit margins from 11% to 16%within 5 years

Trim companys 1200 food, household, and personal

care products down to 400 core brands

Focus sales and marketing efforts on those brandswith potential to become respected,market-leading global brands

Streamline companys supply chain


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Seagate Technologys Strategic Objectives

Solidify the companys No. 1 position inthe overall market for hard-disk drives

Get more Seagate drives into popular consumerelectronics products (i.e. video recorders)

Take share away from Western Digital in providingdisk drives for Microsofts Xbox

Capture a 10% share of the market for 2.5-inch harddrives for notebook computers by 2004


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DuPonts Financial and Strategic Objectives

To achieve annual revenue growth of 5 to 6% andannual earnings-per-share growth averaging 10%

Grow per-share profits faster than revenues by

(a)Increasing productivity,

(b)Selling enough new products each year thataverage prices and average margins rise, and

(c)Using surplus cash to buy back shares

Sell the companys low-margin textiles and interiorsdivision (with sales of $6.6 billion and operating profitsof only $114 million)

Strategic Performance Fosters Better Financial


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Strategic Performance Fosters Better FinancialPerformance

A companys achievement of satisfactory

financial performance, by itself, is not enough Financial performance measures are

lagging indicatorsreflecting results of past decisions and actions

Of equal or greater importance is a companys performance on

measures of its strategic well-being its competitivenessand marketposition

Strategic performance measures areleading indicatorsof acompanys future financial performance and business prospects

Achievement of strategic performance targets

Signals growing competitiveness

Signals growing strength in the marketplace

Balanced Scorecard Approach


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Balanced Scorecard ApproachStrategic and Financial Objectives

Balanced scorecard approachfor measuring

company performance requiresboth Financial objectives Strategic objectives

Emphasison financial performancemay assume

priorityover strategic performance whencompanys Financial performance is dismal and Survival is threatened

Otherwise, management is advised to put more emphasison achieving strategic objectives

The surestpathtosustained future profitabilityyear after year is to relentlesslypursue strategic outcomes

that strengthen a companys business position andgive it a growingcompetitive advantageover rivals!


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Short-Term vs. Long-Term Objectives

Short-term objectives

Targets to be achieved soon

Milestones or stair steps for reaching long-rangeperformance

Long-term objectives

Targets to be achieved within3 to 5 years

Prompt actions now that willpermit reaching targetedlong-range performance later


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Objectives Are Needed at All Levels

1. First, establish organization-wideobjectives andperformance targets

2. Next, set businessandproduct lineobjectives

3. Then, establish functional

and departmentalobjectives

4. Individualobjectives are established last


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Importance of Top-Down Objectives

Guideobjective-setting and

strategy-making at lower levels

Ensuresfinancial and strategicperformance targetsfor all business units, divisions, anddepartments are directly connectedto achieving

company-wide objectives

Integrationof objectiveshas two advantages

Helps produce cohesionamong objectives andstrategies of different parts of organization

Helps unify internal effortsto move acompany along the chosen strategic path

B k


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Break 2

Tugas kelompok 2: Selama liburan, identifikasi company valuesdari

beberapa pemain utama industri telekomunikasi Indonesia.

KELOMPOK PERUSAHAAN

1,2 PT TELKOM Indonesia

3,4 PT INDOSAT5,6 PT Exelcomindo

7 PT Bakrie Telcom

8 PT Hucthinson

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