1

Kuliah Dr. Syuhada Sufian, MSIE

CORPORATE-LEVEL
STRATEGY

S. A. P
E.T. O. P
Misi
Visi
Tujuan
Formulasi Strategi
Business, Corporate strategy
,internasionalisasi, strukturisasi,
Aliansi, merger

Implementasi Strategi
Corporate Governance, Leadership
Entrepreneurhip, control dan
restrukturisasi
Keunggulan bersaing
berkelanjutan
PROSES MANAGEMENT STRATEGIC
Fungsi-Fungsi Dalam
Corporate Strategy
Directional: Orientation toward growth

Portfolio Analysis: Coordination of cash
among units

Corporate Parenting: Building synergies
among units through resource sharing
Entre-
preneurship
Etop

S A P
Specific
Resouerce
(Restructuring)
Related
Difercification
(integration)
Unrelated
Difercification
New
Resource
Development
Model Pertumbuhan Perusahaan
Keunggulan
Kompetitif
Value
Balance
Score
Card

Make strategy
a continuall process
Link budget to strategy,
Analytics and information
system
Make strategy
everyones every
Day job
Strategic awareness,
Personal scorecard,
Balance paychecks
Mobilize Change
Melalui Executive
Leadership
(Mobilization, Covernance
Process, Strategic
managemen)
Translate the strategi
Kedalam opetrational
Term
Strategy map, balance
scorte card
Align the organization
To the strategy
Corporate role,
Busness unit synergies,
Share service synergies
Strategy
Focus
Corporate dan Business
Strategic

Corporate
Level
SBU III
Business Strategy
SBU II
Business strategy
SBU I
Business Strategy
Operation
Marketing
FinanceRD
Boston Consulting Group
Growth-Share Matrix
Stars
Question Marks
Cash Cows
Dogs
22
20
18
16
14
12
10
8
6
4
2
0
Relative Competitive Position
Source: B. Hedley, Strategy and the
Business Portfolio, Long Range Planning
(February 1997), p. 12. Reprinted with
permission.
Portfolio Analysis
J ack Welsh
General Electrics Business Screen
a la the J ack Welsh dynasty
A
Winners Winners
B
C
Question
Marks
D
F
Average
Businesses
E
Winners
Losers
G
Losers
H
Losers
Profit
Producers
Strong Average Weak
Low
Medium
High
Business Strength/Competitive Position
Source: Adapted from Strategic
Management in GE, Corporate Planning
and Development, General Electric
Corporation. Used by permission of
General Electric Company.
Portofolio
ANALYSIS
THE ROLE OF DIVERSIFICATION
Diversification strategies play a major role in the
behavior of large firms karena :
Product diversification berkaitan dengan:
The scope of the industries and markets in which
the firm competes (opportunity)
How managers buy, create and sell different
businesses to match skills and strengths with
opportunities presented to the firm utk menciptakan
sinergi.
Two Strategy Levels Diversifikasi
Business-level Strategy (Competitive Aspek)
Each business unit in a diversified firm chooses a business-
level strategy as its means of competing in individual product
markets (memenangkan persaingan dengan product line).
Corporate-level Strategy (Company wide)
Specifies actions taken by the firm to gain a competitive
advantage by selecting and managing a group of different
businesses competing in several industries and product
markets (Eksploitasi synergi).
Diversifying to Enhance Competitiveness
ada 2 macam
Related Diversification
Economies of scope
Sharing activities
Transferring core competencies
Market power
Vertical integration
Unrelated Diversification
Financial economies
Efficient internal capital allocation
Business restructuring
Strategic Motives for Diversification
Untuk memperoleh Strategic Competitiveness:
Economies of scope (related diversification)
Sharing activities
Transferring core competencies
Market power (related diversification)
Blocking competitors through- multipoint competition,
Vertical integration
Financial economies (unrelated diversification)
Efficient internal capital allocation
Business restructuring.
Table 6.1a
Managerial Motives for Diversification
Managerial Motives !!! (Value Reduction)
Diversifying managerial employment risk
Increasing managerial compensation
Table 6.1c
Related Diversification
Firm creates value by building upon or
extending its:
Resources
Capabilities
Core competencies
Economies of scope
Cost savings that occur when a firm transfers capabilities
and competencies developed in one of its businesses to
another of its businesses (eficiency)

Related Diversification:
Economies of Scope


Value is created from economies of scope through:
Operational relatedness in sharing activities
Corporate relatedness in transferring skills or
corporate core competencies among units

The difference between sharing activities and transferring
competencies is based on how the resources are jointly used to
create economies of scale dan scope
Sharing Activities
Operational Relatedness
Created by sharing either a primary activity such as
inventory delivery systems, or a support activity such as
purchasing
Activity sharing requires sharing strategic control over
business units
Activity sharing may create risk because business-unit- ties,
create links between outcomes (sharing outcome)
Corporate Relatedness Diversivication
Creates value in two ways:
(1) Eliminates resource duplication in the need to allocate resources for a
second unit to develop a competence that already exists in another unit

(2) Provides development intangible resources (resource intangibility)
that are difficult for competitors to understand and imitate.

A transferred tangible resource gives the unit receiving it
an immediate competitive advantage over its rivals

Related Diversification: Market Power


Multipoint Competition
Two or more diversified firms simultaneously compete in the
same product areas or geographic markets
Vertical Integration
Backward integration
a firm produces its own inputs
Forward integration
a firm operates its own distribution system for delivering its outputs
Unrelated Diversification
Financial Economies

Are cost savings realized through improved
allocations of financial resources
Based on investments inside or outside the firm

Create value through two types of financial
economies:
Efficient internal capital allocations
Purchasing other corporations and restructuring their
assets
Unrelated Diversification: Restructuring

Restructuring creates financial economies
A firm creates value by buying and selling other firms assets
in the external market
Resource allocation decisions may become
complex, so success often requires:
Focus on mature, low-technology businesses
Focus on businesses not reliant on a client orientation
Internal Incentives to Diversify
High performance eliminates the
need for greater diversification


Low performance acts as
incentive for diversification
Low
Performance
Internal Incentives to Diversify (contd)
Diversification may be
defensive strategy if:
Product line matures
Product line is threatened.
Firm is small and is in mature
or maturing industry
Low
Performance
Uncertain
Future Cash
Flows
Internal Incentives to Diversify
Synergy exists when the value created
by businesses working together
exceeds the value created by them
working independently
but synergy creates joint
interdependence between business
units
A firm may become risk averse and
constrain its level of activity sharing
A firm may reduce level of technological
change by operating in more certain
environments
Low
Performance
Uncertain
Future Cash
Flows
Synergy and
Risk
Reduction
Kualitas
aliansi
Orientasi
pasar
Internal
learning
.17
asset
Strategik
.37
external
learning
.16
Kinerja
perusahaan
.11
.30
.36
.71
d1
d4
d3
.37
.17
.26
.02
INOVASI
.07
d2
.33
Uji Kelayakan Model
Moderasi =adapt1
Model =Standardized estimates
Chi Square =35.813
Probability =.119
R M S E A =.040
Normed Fit Index=.993
Tucker-Levis In =.995
Compar-Fit Index =.998
Parsimoni Ratio =.321
.14
.13
.10
Summary
Model of the
Relationship between
Firm Performance and
Diversification
Figure 6.4
SOURCE: R. E. Hoskisson & M. A. Hitt, 1990,
Antecedents and performance outcomes of
diversification: A review and critique of theoretical
perspectives, Journal of Management, 16: 498.