1
2
Stage 1: The Input Stage
Stage 2: The Matching Stage
Stage 3: The Decision Stage
Strategy-Formulation
Analytical Framework
3
External Factor Evaluation Matrix (EFE)
Competitive Profile Matrix
Internal Factor Evaluation Matrix (IFE)
Stage 1:
The Input Stage
Formulation Framework
4
• Provides basic input information for the matching and decision stage matrices
• Requires strategists to quantify subjectivity early in the process
• Good intuitive judgment always needed
Input Stage
5
SPACE Matrix
Stage 2:
The Matching Stage
TOWS Matrix
BCG Matrix
IE Matrix
Grand Strategy Matrix
Formulation Framework
6
• Match between organization’s internal
resources and skills and the opportunities and risks created by its external factors.
Matching Stage
7
Resultant Strategy Key External Factor
Key Internal Factor
Develop a new employee benefits package
Strong union activity = (threat)
Poor employee morale + (weakness)
Develop new products for older adults
Decreasing numbers of = young adults (threat) +
Strong R&D (strength)
Pursue horizontal integration by buying competitor's
facilities
= Exit of two major foreign competitors form the industry (opportunity) Insufficient capacity +
(weakness)
Acquire Cellfone, Inc.
= 20% annual growth in the cell phone industry
(opportunity) Excess working capacity +
(strength)
Matching Key Factors to Formulate Alternative Strategies
8
Formulation Framework
Quantitative Strategic Planning Matrix
(QSPM)
Stage 3:
The Decision Stage
9
External Factor Evaluation Matrix (EFE)
Competitive Profile Matrix
Internal Factor Evaluation Matrix (IFE)
Stage 1:
The Input Stage
Formulation Framework
10
Prediction is very difficult, especially about the future.
-- Neils Bohr
The External Assessment
11
Purpose:
– Development of Finite List:
• Opportunities
• Threats to be avoided
Nature of External Audit
12
Five (5) broad categories:
1. Economic forces
2. Social, cultural, demographic, &
environmental forces
3. Political, governmental, and legal forces 4. Technological factors
5. Competitive forces
Key External Forces
13
Key External
Forces
Competitors Suppliers Distributors
Creditors Customers Employees Communities
Managers Stockholders Labor Unions
Special Interest Groups Products
Services
Opportunities
&
Threats Relationships Between
Key External Forces and an Organization
14
Porter’s Five Forces
Model of Industry Competition
Exhibit 2.4
Reprinted with the permission of The Free Press, a division of Simon & Schuster, Inc. from Competitive Strategy: Techniques for Analyzing Industries and Competitors by Michael E. Porter.
Copyright © 1980, 1998 by The Free Press.
INDUSTRY COMPETITORS
Rivalry Among Existing Firms POTENTIAL
ENTRANTS
SUBSTITUTES
BUYERS SUPPLIERS
Threat of substitute products
or services
Bargaining power of buyers Threat of
new entrants Bargaining power
of suppliers
15
Five Forces Analysis of the Automotive Industry
Global Competitive Environment
Threat of Buyers Threat of Suppliers
Threat of Substitutes Threat of Market Entry
Automotive Industry
Threat of Rivalry
Train, public transport or other means of transportation
High barriers to entry
High capital requirements
Contrived deterrence
Cost disadvantages
Consolidation
Single Sourcing
Low level of total value added
Numerous potential customers
Industry policy of rebates
More demanding customers
Oligopolistic industry
Overcapacity Differentiation on basis of functional attributes only temporary
16
External Factor Evaluation Matrix External Factor Evaluation Matrix
Summarize & evaluate:
Competitive Political
Cultural
Technological Environmental
Social
Governmental Demographic
Economic
Industry Analysis (EFE)
17
Menggambarkan keseluruhan
opportunities dan threats yang ada untuk mengetahui seberapa besar pengaruh dari setiap faktor tersebut
terhadap institusi, respons institusi setiap faktor tersebut dan untuk mengetahui nilai institusi terhadap
keseluruhan faktor dibandingkan dengan Institusi lain
External Factor Evaluation (EFE)
18
Five-Step process:
• List key external factors (10-20)
Opportunities & threats
• Assign weight to each (0 to 1.0)
Sum of all weights = 1.0
Industry Analysis (EFE)
19
Five-step process:
• Assign 1-4 rating to each factor
• Firm’s current strategies response to the factor
• Multiply each factor’s weight by its rating
• Produces a weighted score
Industry Analysis (EFE)
20
Five-step process:
• Sum the weighted scores for each
Determines the total weighted score for the organization.
• Highest possible weighted score for the organization is 4.0; the lowest, 1.0. Average = 2.5
Industry Analysis (EFE)
21
.20 1
.20 Clinton Administration
.20 2
.10 Bad media exposure from FDA
.10 2
.05 Smokeless market SE region U.S.
.15 3
.05 Production limits on tobacco
.20 2
.10 Legislation against the tobacco industry
Threats
.30 3
.10 More social pressure to quit smoking
2.10 1.00
TOTAL
.60 4
.15 Pinkerton leader in discount market
.05 1
.05 Astronomical Internet growth
.15 3
.05 Increased demand
.15 1
.15 Global markets untapped
Weighted score Rating
Weight
UST—Key External Factors
Opportunities
22
Faktor Eksternal Bobot Rating Nilai
Peluang (opportunities)
- Jumlah penduduk 0,12 3 0,36
- Bentuk negara yang geografis 0,10 3 0,30
- Perusahaan yang berbentuk Persero 0,08 4 0,32
- Jumlah SDM memadai 0,10 2 0,20
- Tersedianya sarana promosi 0,05 2 0,10
- Perkembangan teknologi 0,10 2 0,20
Ancaman (threats)
- Pesaing baru dan lama 0,10 2 0,20
- Munculnya produk substitusi 0,12 2 0,24
- Tuntutan terhadap mutu dan pelayanan 0,08 2 0,16
- Daya beli konsumen 0,05 1 0,05
- Kondisi SDM yang berorientasi kepada produk
0,10 2 0,20
Total 1 2,33
Tabel : Matriks EFE PT. Pos Indonesia
23
Total weighted score of 4.0 =
Organization response is outstanding to threats & weaknesses
Total weighted score of 1.0 =
Firm’s strategies not capitalizing on opportunities or avoiding threats
Industry Analysis (EFE)
24
Important
• Understanding of the factors used in the EFE Matrix is more important than the actual weights and ratings assigned.
Industry Analysis (EFE)
25
External Factor Evaluation Matrix (EFE)
Competitive Profile Matrix
Internal Factor Evaluation Matrix (IFE)
Stage 1:
The Input Stage
Formulation Framework
26
Great spirits have always encountered violent opposition from mediocre minds.
-- Albert Einstein
The Internal Assessment
27
All organizations –
• Strengths
• Weaknesses
Nature of an Internal Audit
28
Basis for objectives & strategies:
– Internal strengths/weaknesses – External opportunities/threats – Clear statement of mission
Nature of an Internal Audit
29
Distinctive Competencies
• A firm’s strengths that cannot be easily matched or imitated by competitors
• Building competitive advantage involves
taking advantage of distinctive competencies
• Strategies designed in part to improve on a firm’s weaknesses and turn to strengths
Key Internal Forces
30
• Parallels process of external audit
• Gather & assimilate information from:
• Management
• Marketing
• Finance/accounting
• Production/operations
• Research & development
• Management information systems
Internal Audit
31
Five basic activities –
– Planning
– Organizing
– Motivating
– Staffing
– Controlling
Functions of Management
32
Planning
Stage When Most Important
Function
Strategy Formulation
Organizing
Strategy ImplementationMotivating
Strategy ImplementationStaffing Controlling
Strategy Implementation
Strategy Evaluation
Functions of Management
33
Planning
Forecasting
Establishing objectives Devising strategies Developing policies
Setting goals
Planning
34
Organizing
Organizational design Job specialization
Job descriptions Job specifications
Span of control Unity of command
Coordination Job design Job analysis
Organizing
Organizational design Job specialization
Job descriptions Job specifications
Span of control Unity of command
Coordination Job design Job analysis
Organizing
Organizational design Job specialization
Job descriptions Job specifications
Span of control Unity of command
Coordination Job design Job analysis
Organizing
Organizing
35
Motivating
Leadership Communication
Work groups Job enrichment Job satisfaction Needs fulfillment
Organizational change
Morale
Motivating
36
Staffing
Wage & salary admin Employee benefits
Interviewing Hiring
Firing Training
Management development Safety
Affirmative action EEO
Labor relations Career development Discipline procedures
Staffing
37
Controlling
Quality control Financial control
Sales control Inventory control
Expense control Analysis of variances
Rewards Sanctions
Controlling
38
Process of defining, anticipating,
creating, and fulfilling customers’ needs and wants for products and services
Marketing
39
1. Customer analysis
2. Selling products/services
3. Product and service planning
4. Pricing
5. Distribution
6. Marketing research
7. Opportunity analysis
Marketing
40
Customer analysis
Customer surveys Consumer information
Market positioning strategies
Customer profiles Market segmentation
strategies
Marketing
41
Selling
Products/services
Advertising Sales
Promotion Publicity
Sales force management Customer relations
Dealer relations
Marketing
42
Product/service planning
Test marketing Brand positioning Devising warrantees
Packaging
Product features/options Product style
Quality
Marketing
43
Pricing
Forward integration Discounts
Credit terms Condition of sale
Markups Costs Unit pricing
Marketing
44
Distribution
Warehousing Channels Coverage
Retail site locations Sales territories Inventory levels Transportation
Marketing
45
Marketing research
Data collection Data input Data analysis
Support all business functions
Marketing
46
Opportunity Analysis
Assessing costs Assessing benefits
Assessing risks Cost/benefit/risk
analysis
Marketing
47
• Determining financial strengths and weaknesses key to strategy formulation
• Investment decision ( Capital budgeting )
• Financing decision
• Dividend decision
Finance/Accounting
48
Functions of Finance/Accounting –
1. Investment decision ( Capital budgeting )
2. Financing decision
3. Dividend decision
Finance/Accounting
49
Liquidity ratios
Firm’s ability to meet its short-term
obligations Ratios
Current ratio Quick
(or acid-test) ratio
Basic Financial Ratios
50
Leverage ratios
• Extent of debt financing
Ratios
Debt-to-total-assets Debt-to-equity
Long-term debt-to-equity Times-interest earned
Basic Financial Ratios
51
Activity ratios
• Effective use of firm’s resources
Ratios
Inventory-turnover Fixed assets turnover
Total assets turnover
Accounts receivable turnover Average collection period
Basic Financial Ratios
52
Profitability ratios
• Effectiveness shown by returns on sales and investment
Ratios
Gross profit margin Operating profit margin
Net profit margin
Return on total assets (ROA)
Basic Financial Ratios
53
Profitability ratios (continued)
• Effectiveness shown by returns on sales and investment
Ratios
Return on stockholders’ equity (ROE)
Earnings per share Price-earnings ratio
Basic Financial Ratios
54
Growth ratios
• Firm’s ability to
maintain economic position
Ratios
Sales Net income
Earnings per share Dividends per share
Basic Financial Ratios
55
• Process
• Capacity
• Inventory
• Workforce
• Quality
Production/Operations
56
Process
Design of facility Choice of technology
Facility layout
Process flow analysis Facility location
Line balancing Process control
Production/Operations
57
Capacity
Forecasting
Facilities planning Aggregate planning
Scheduling
Capacity planning Queuing analysis
Production/Operations
58
Inventory
Raw material Work in process
Finished goods Materials handling
Production/Operations
59
Workforce
Job design
Work measurement Job enrichment Work standards
Motivation techniques
Production/Operations
60
Quality
Quality control Sampling
Testing
Quality assurance Cost control
Production/Operations
61
• Development of new products before competition
• Improving product quality
• Improving manufacturing processes to reduce costs
Research and Development
62
R&D budgets
Financing as many projects as possible Use percentage-of-sales
method
Budgeting relative to competitors
Deciding how many successful new products are needed
Research and Development
63
Purpose –
– Improve performance of an enterprise by improving the quality of managerial
decisions.
Management Information Systems
64
Internal Analysis (IFE)
Menggambarkan keseluruhan strength dan weakness yang ada untuk mengetahui seberapa besar pengaruh dari setiap faktor tersebut
terhadap institusi, respons institusi setiap faktor tersebut dan untuk mengetahui nilai institusi terhadap
keseluruhan faktor dibandingkan
dengan Institusi lain
65
Five-Step Process:
• List key internal factors (10-20)
Strengths & weaknesses
• Assign weight to each (0 to 1.0)
Sum of all weights = 1.0
Internal Analysis (IFE)
66
Assign 1-4 rating to each factor
Firm’s current strategies response to the factor
• Multiply each factor’s weight by its rating
Produces a weighted score
Internal Analysis (IFE)
67
• Sum the weighted scores for each
Determines the total weighted score for the organization
Highest possible weighted score for the
organization is 4.0; the lowest, 1.0. Average = 2.5
Internal Analysis (IFE)
68
.15 3
.05 Financial ratios
.15 3
.05 Reputation as family-friendly
.20 4
.05 Long-range planning
.15 3
.05 Minimal comps provided
.15 3
.05 Buffets at most facilities
.15 3
.05 Strong management team
.60 4
.15 Owns 1 mile on Las Vegas strip
.15 3
.05 Increasing free cash flows
.40 4
.10 Room occupancy rates over 95%
.20 4
.05 Largest casino company in world
Weighted score Rating
Weight
Mandalay Bay
Internal Strengths
Internal Analysis (IFE)
69
2.75 1.0
TOTAL (including Strengths)
.10 1
.10 Recent loss of joint ventures
.10 1
.10 Laughlin properties
.10 2
.05 Family reputation, not high rollers
.10 2
.05 Little diversification
.05 1
.05 Most properties located in Las Vegas
Weighted score Rating
Weight
Mandalay Bay
Internal Weaknesses
Internal Analysis (IFE)
70
Faktor Internal Bobot Rating Nilai
Kekuatan (strengths)
- Keragaman jenis jasa pengiriman 0,09 4 0,36
- Harga murah 0,10 4 0,40
- Jaringan pos yang sangat luas 0,10 3 0,30
- Sebaran lokasi pelayanan 0,10 3 0,30
- Kemudahan mencapai tempat pelayanan &
pengiriman
0,11 3 0,33
Kelemahan (weaknesses)
- Ketepatan waktu pengiriman 0,11 1 0,11
- Kecepatan pengiriman 0,11 1 0,11
- Kecepatan pelayanan petugas 0,10 1 0,10
- Informasi biaya dan waktu pengiriman 0,09 2 0,18
- Kemudahan memperoleh info promosi dan iklan
0,09 2 0.18
Total 1 2,37
Tabel : Matriks IFE PT. Pos Indonesia
71
Diantara sejumlah strengths yang dimiliki suatu institusi dapat saja beberapa
diantaranya merupakan distinctive competencies.
Untuk mengevaluasi apakah suatu
strength adalah distinctive competency dapat digunakan metode Barney yaitu dengan konsep VRIO
Menentukan Distinctive Competencies
Menentukan Distinctive Competencies
72
◆ Value : apakah faktor tersebut memberikan keunggulan kompetitif pada institusi ?
◆ Rareness : apakah pesaing tidak memiliki faktor tersebut ?
◆ Imitability : apakah tidak mudah untuk memiliki faktor tersebut ?
◆ Organization : apakah institusi memanfaatkan faktor tersebut secara maksimal ?
Jika jawab dari keempat : Ya
distinctive competency
VRIO VRIO
73
External Factor Evaluation Matrix (EFE)
Competitive Profile Matrix
Internal Factor Evaluation Matrix (IFE)
Stage 1:
The Input Stage
Formulation Framework
74
Competitive Profile Matrix
• Identifies firm’s major competitors and their strengths & weaknesses in relation to a sample firm’s strategic position
Industry Analysis (CPM)
75
(CPM)
ProcterAvon L’Oreal & Gamble
2.80 3.25
3.15
Total 1.00
0.15 3
4 0.20
1 0.05 0.05
Market Share
0.40 2
2 0.40
4 0.80 0.20
Global Expansion
0.20 2
4 0.40
4 0.40 0.10
Customer Loyalty
0.45 3
3 0.45
4 0.60 0.15
Financial Position
0.30 3
3 0.30
4 0.40 0.10
Management
0.40 4
3 0.30
3 0.30 0.10
Price Competition
0.30 3
4 0.40
4 0.40 0.10
Product Quality
0.60 3
4 0.80
1 0.20 0.20
Advertising
Score Rating
Score Rating
Score Rating
Weight
Critical Success Factor
76
Competitive Profile Matrix
Nike Adidas Reebok Critical Success Factors Weight Rating
Weighted
Score Rating
Weighted
Score Rating
Weighted Score Brand Recognition
Market Share Financial Strength R&D
Product Quality Advertising
Number of Retail Outlets Product Mix
Depend on Suppliers for Quality
0.15 0.14 0.13 0.10 0.10 0.12 0.05 0.11 0.10
4 4 3 4 3 4 4 4 2
0.60 0.56 0.39 0.40 0.10 0.48 0.20 0.44 0.20
4 2 2 2 3 3 1 3 3
0.60 0.28 0.26 0.20 0.30 0.36 0.05 0.33 0.30
4 3 2 3 3 4 3 3 2
0.60 0.42 0.26 0.30 0.30 0.48 0.15 0.33 0.20 Total 1.00 3.37 2.68 3.04
77
SPACE Matrix
Stage 2:
The Matching Stage
TOWS Matrix
BCG Matrix
IE Matrix
Grand Strategy Matrix
Formulation Framework
78
Whether it’s broke or not, fix it—make it better. Not just products, but the whole company if necessary.
-- Bill Saporito
Strategy Analysis & Choice
79
☛ Asumsi: Suatu strategi yang efektif akan memaksimalkan kekuatan (Strength) dan peluang (Opportunities), dan
meminimalkan kelemahan (Weaknesses) dan ancaman ((Threat)
☛ Opportunities: Situasi penting dari faktor eksternal yang menguntungkan perusahaan. (perubahan teknologi,
membaiknya hubungan pembeli & pemasok, dll)
☛ Threat: faktor internal yang tidak menguntungkan
perusahaan. (masuknya pesaing baru, lambatnya pertumbuhan pasar, meningkatnya kekuatan pembeli & pemasok, dll)
☛ Strength: Kekuatan internal meliputi sumberdaya,
keterampilan/ keunggulan lainnya relatif terhadap pesaing dan kebutuhan pasar yang dilayani/ ingin dilayani perusahaan.
(sumber daya keuangan, citra, dll)
☛ Weaknesses: Kekurangan/ keterbatasan daam sumber daya, keterampilan dan kapabilitas yang menghambat kinerja
perusahaan.
SWOT ANALYSIS
80
Dikemukakan oleh : Thomas L. Wheelen dan J. David Hunger
Menggunakan matrix untuk menghasilkan strategi alternatif dengan memanfaatkan EFE dan IFE
Langkah-Langkahnya :
➲ Pada blok opportunities cantumkan sejumlah opportunities yang diambil dari tabel EFE
➲ Pada blok threats cantumkan sejumlah threats yang diambil dari EFE
➲ Pada blok strength, cantumkan sejumlah strength yang diambil dari IFE
➲ Pada blok weakness cantumkan sejumlah weakness yg diambil dari IFE
➲ Dapatkan sejumlah strategi-strategi yang mungkin untuk perusahaan berdasarkan kombinasi dari 4 elemen tersebut
ANALISA SWOT (TOWS) MATRIX
81
TOWS Matrix – Threats
– Opportunities – Strengths
– Weaknesses
Matching Stage
82
Develop four types of strategies
– Strengths-Opportunities (SO)
– Weaknesses-Opportunities (WO) – Strengths-Threats (ST)
– Weaknesses-Threats (WT)
TOWS Matrix
83
◆ Kuadran SO : posisi yang paling menguntungkan dimana institusi sedang melihat peluang-peluang dan memiliki kekuatan untuk meraihnya
◆ Kuadran ST : institusi dengan beberapa kekuatan yang dimilikinya sedang menghadapi ancaman dari luar. Institusi dapat
menggunakan kekuatan untuk menciptakan peluang di masa yang akan datang
◆ Kuadran WO : institusi sedang melihat peluang tetapi mengalami kendala dalam meraihnya karena perusahaan memiliki kelemahan.
Institusi harus dapat mengeliminir kekurangan-kekurangan supaya lebih efektif dalam meraih peluang
◆ Kuadran WT : posisi yang paling tidak menyenangkan dimana perusahaan sedang menghadapi ancaman dari luar bersamaan dengan posisinyapun sedang lemah. Institusi bertahan sambil
mengkaji ulang keterlibatan institusi dalam pelayanan yang sedang terancam tersebut
Kuadran SO, ST, WO, WT
Kuadran SO, ST, WO, WT
84
◆ Strategi SO : strategi memanfaatkan peluang dengan mendayagunakan kekuatan internal
◆ Strategi ST : strategi untuk menghadapi atau menghidarkan ancaman dengan mendayagunakan kekuatan yang dimiliki
◆ Strategi WO : strategi untuk mengatasi
kelemahan dengan cara memanfaatkan peluang yang ada
◆ Strategi WT : strategi yang meminimalkan
kelemahan sambil mencegah ancaman yang ada di luar
STRATEGI SO, ST, WO, WT
85
SO
Strategies
Use a firm’s internal strengths to take advantage
of external opportunities
Threats
Opportunities Weaknesses
Strengths (TOWS)
SO Strategies
86
WO
Strategies
Improving internal
weaknesses by taking
advantage of external opportunities
Threats
Opportunities Weaknesses
Strengths (TOWS)
WO Strategies
87
ST
Strategies
Using firm’s strengths to
avoid or reduce the
impact of external
threats.
Threats
Opportunities Weaknesses
Strengths (TOWS)
ST Strategies
88
WT
Strategies
Defensive tactics aimed
at reducing internal weaknesses and avoiding environmental
threats.
Threats
Opportunities Weaknesses
Strengths (TOWS)
WT Strategies
89
Steps in developing the TOWS Matrix
1.
List the firm’s key external opportunities
2.
List the firm’s key external threats
3.
List the firm’s key internal strengths
4.
List the firm’s key internal weaknesses
TOWS Matrix
90
Developing the TOWS Matrix
1.
Match internal strengths with external opportunities and record the resultant SO Strategies
2.
Match internal weaknesses with external opportunities and record the resultant WO Strategies
3.
Match internal strengths with external threats and record the resultant ST Strategies
4.
Match internal weaknesses with external threats and record the resultant WT Strategies
TOWS Matrix
91
WT Strategies
Minimize weaknesses and avoid threats
ST Strategies
Use strengths to avoid threats
Threats-T
List Threats
WO Strategies
Overcome weaknesses by taking advantage of
opportunities
SO Strategies
Use strengths to take advantage of opportunities
Opportunities-O
List Opportunities
Weaknesses-W
List Weaknesses
Strengths-S
List Strengths
Leave Blank
TOWS Matrix
92
OPPORTUNITIES (O) List External Opportinities Here EXTERNAL
FACTORS INTERNAL FACTORS
THREATS (T) List External Threats Here
S-O Strategies Generate strategies
here that use Strenghts to take
adventage of opportunities S-T Strategies Generate strategies
here that use strenghts to avoid
threats
W-O Strategies Generate strategies
here that take adventage of opportunities by overcoming weaknesses
W-T Strategies Generate strategies
here that minimize weaknesses and
avoid threats STRENGHTS (S)
List Internal Strenghts Here
WEAKNESSES (W) List Internal Weaknesses Here
SWOT MATRIX
93
TOWS Matrix
Strengths Weaknesses
1. Customer satisfaction.
2. Copyright to one-click method.
3. Humanitarian efforts.
4. Strong Research &
Development.
5. Exclusive agreements with Internet sites.
6. Ability to track customer interests.
7. Formation of strategic alliances with physical retailers.
1. Accumulated deficits.
2. Anticipates further losses.
3. Slowing growth, core business, U.S. Books, Music, & Video.
4. Lawsuit with Barnes &
Noble over patent for one- click method.
5. Class Action Suits filed with stockholders.
6. Doses not have a mission statement.
7. Financial position.
94
TOWS Matrix
Opportunities S-O Strategies W-O Strategies 1. Continuous increase of
internet users.
2. Increasing business to consumer e-commerce.
3. U. S. Internet economy projections 3.1 trillion by 2004.
4. Brick & Mortar companies lack
technology expertise.
5. European on-line projections 3.1 trillion by 2004.
1. Expand European presence through strategic alliances with established online retailers or physical retailers
(S1,O1,O2,O3,O5).
2. Refocus on core business by taking full advantage of e-books sales projection (S1,S2,S6,O1,O2,O3).
1. Enter into more strategic agreements with U. S.
physical retailers possibly Wal-mart
(W2,W3,W7,O4,O5).
95
TOWS Matrix
Threats S-T Strategies W-T Strategies
1. Seasonality of internet usage & revenue
generation.
2. Economic downturn &
global recession.
3. Low consumer confidence levels.
4. Competition.
5. Security/Privacy of information concerns.
6. Internet Taxation.
7. Market valuation .
1. Establish direct order link with
publishers/manufacturers (S5, T4).
2. Enhance attractiveness of platform
(S1,S2,S4,S6,T4,T7).
3. Promote ease of use (S2,T4,T5).
1. Reduce fulfillment costs by reduction in number of fulfillment centers (W1,W2,W3,W7,T1,T2,T3,T7).
96
SPACE Matrix
Stage 2:
The Matching Stage
TOWS Matrix
BCG Matrix
IE Matrix
Grand Strategy Matrix
FORMULATION FRAMEWORK
97
SPACE Matrix
•SPACE = The Strategic Position and ACtion Evaluation
•Dikemukakan oleh : R. Howe, R. Mason & K. Dickel
•Diadaptasi oleh : Fred R. David
•Menilai seluruh strategic factors
•Mengolah Ditampilkan pada sistem
– koordinat 2 dimensi
98
Strategic Position and Action Evaluation Matrix
Four quadrant framework
Determines appropriate strategies
Aggressive
Conservative
Defensive
Competitive
SPACE Matrix
99
Two Internal Dimensions
Financial Strength [FS]
Competitive Advantage [CA]
Two External Dimensions
Environmental Stability [ES]
Industry Strength [IS]
SPACE Matrix
100
Overall Strategic position determined by:
– Financial Strength [FS]
– Competitive Advantage [CA]
– Environmental Stability [ES]
– Industry Strength [IS]
SPACE Matrix
101
Developing the SPACE Matrix:
• EFE Matrix
• IFE Matrix
• Financial Strength
• Competitive Advantage
• Environmental Stability
• Industry Strength
SPACE Matrix
102
• Select variables to define FS, CA, ES, &
IS
• Assign numerical ranking from +1
(worst) to +6 (best) for FS and IS; Assign numerical ranking from –1 (best) to –6
(worst) for ES and CA.
• Compute average score for FS, CA, ES, &
IS
SPACE Matrix
103
Environmental Stability (ES)
Technological changes Rate of inflation
Demand variability
Price range of competing products Barriers to entry
Competitive pressure
Price elasticity of demand
Financial Strength (FS)
Return on investment Leverage
Liquidity
Working capital Cash flow
Ease of exit from market Risk involved in business
External Strategic Position Internal Strategic Position
SPACE Matrix
104
Industry Strength (IS)
Growth potential Profit potential Financial stability
Technological know-how Resource utilization
Capital intensify
Ease of entry into market
Productivity, capacity utilization
Competitive Advantage CA
Market share Product quality Product life cycle Customer loyalty
Competition’s capacity utilization Technological know-how
Control over suppliers & distributors
External Strategic Position Internal Strategic Position
SPACE Matrix
105
FS
+6
+1 +5 +4 +3 +2
-6 -5 -4 -3 -2
-6 -5 -4 -3 -2 -1 -1 +1 +2 +3 +4 +5 +6
ES
CA IS
Conservative Aggressive
Defensive Competitive
SPACE Matrix
106
SPACE Matrix : NIKE
INTERNAL STRATEGIC POSITION
Financial strength +4 +1 best to +6 worst Y axis: 4 + (-3) = 1 Environmental stability -3 -6 worst to –1 best
EXTERNAL STRATEGIC POSITION
Competitive advantage -2 -6 unstable to –1 stable X axis: 3 + (-2) = 1 Industry strength +3 +1 best to +6 worst
Conservative FS Aggressive
CA IS
Defensive ES Competitive
107
FS
Conservative Aggressive
CA IS
Defensive ES Competitive
SPACE Matrix : AMAZON
Y axis
Financial strength +1 +1 worst to + 6 best Y axis: 1 + (-2) = -1 Environmental stability -2 -1 best to –6 worst
X axis
Industry strength 3 +1 worst to +6 best X axis: 3 + (-2) = 1 Competitive advantage -2 -1 best to -6 worst
108
-2,50 +0,59 +3,09 +2,75
+0,60
-2,15
Posisi Strategis + 0,59 ; + 0,60SO
Weakness Strength
Opportunities
Threats Rata-Rata Opportunities
= +33/12 = + 2,75 Rata-Rata Threats
= -28/13 = - 2,15 Rata-Rata Strength
= +34/11 = + 3,09 Rata-Rata Weakness
= -15/6 = - -2,50
Koordinat X =
+3,09 + (-2,50) = 0,59
Koordinat Y =
+2,75 + (-2,15) = 0,60
109
Supports an
Aggressive Strategy Supports a Turn
Oriented Strategy
Supports a
Diversification Strategy Supports a
Difensive Strategy
OPPORTUNITIES
THREATS
WEAKNESSES STRENGTHS
SPACE MATRIX POSISI STRATEGIS PERUSAHAAN
110
SPACE Matrix
Stage 2:
The Matching Stage
TOWS Matrix
BCG Matrix
IE Matrix
Grand Strategy Matrix
Formulation Framework
111
Boston Consulting Group Matrix
•
Enhances multidivisional firms’ efforts to formulate strategies
•
Autonomous divisions (or profit centers) constitute the business portfolio
•
Firm’s divisions may compete in different industries requiring separate strategy
•
Graphically portrays differences among divisions
•
Focuses on market share position and industry growth rate
•
Manage business portfolio through relative market share position and industry growth rate
BCG Matrix
112
Dogs Dogs IV IV Cash Cows
Cash Cows III III
Question Marks Question Marks
I I Stars
Stars II II
Relative Market Share Position
High 1.0
Medium .50
Low 0.0
In d u st ry S al es G ro w th R a te
High+20
Low -20 Medium
0
BCG Matrix
113
Kondisi Bisnis Perusahaan
Perusahaan dengan satu bisnis
Diversifikasi perusahaan yang berhubungan
Diversifikasi perusahaan yang tak ada hubungan
Bersaing sebagai satu bisnis Membagi kompetensi bisnis satu sama lain
Tiap unit bisnis otonom pada pasar yang berbeda-beda Apple Computer
McDonald’s Corp.
Wrigley Maytag Texas Air Ford Motor
P&G
Philip Morris Dow-Corning
Johnson & Johnson Du Pont
Gilette
ITT
Rockwell GE
LTV Textron Litton
114
Pendekatan Portofolio
Pendekatan portofolio ditandai ciri berikut :
Menguji setiap bisnis perusahaan yang terpisah sebagai elemen portofolio dari total bisnis.
Suatu unit bisnis dalam portofolio perusahaan, pada derajat tertentu, adalah merupakan penghasil (generators) atau penerima (recipients) dari sumber-sumber (resources) perusahaan.
Pendekatan portofolio merupakan cara yang sederhana dan
visual untuk mengidentifikasi dan mengevaluasi alternatif
strategi guna dapat menghasilkan dan mengalokasikan
sumber-sumber perusahaan (corporate resources)
115
• Matrix BCG ini dibentuk dari empat sel (Matriks 2 X 2) yang mengukur laju pertumbuhan pasar (market growth) pada sumbu vertikal, dan
pangsa pasar relatif (relative market share) pada sumbu horizontal
• Didalam matriks BCG, setiap unit bisnis
menempati salah satu dari kategori “tanda tanya”
Question mark
Star
Cash cow
Dogs
SUSUNAN MATRIKS BCG
116
• Matrixs BCG merupakan model yang sederhana dan paling banyak digunakan.
• Model ini berguna bagi top manager yang membawahi unit bisnis yang berbeda-beda (diversified forms), khususnya untuk
mengalokasikan sumber-sumber (resources) dari satu unit ke unit bisnis lainnya.
• Matriks ini juga digunakan untuk
memperkirakan posisi pasar suatu unit bisnis beberapa tahun ke depan bila tidak dilakukan perubahan kebijakan (policies) selama ini
MATRIKS BCG
117
Bentuk BCG Matrix
Relative Market Share
Star Question Mark
Dog Cash Cow
High
Market Growth
Low
Weak Strong
118
The Boston Consulting Group’s Growth-Share Matrix
20%- 18%- 16%- 14%- 12%- 10%- 8%- 6%- 4%- 2%-
0
M ar ke t G ro w th Rat e
10x 4x 2x 1.5x 1x
Relative Market Share .5x .4x .3x .2x .1x
Dogs 8
7
3 Question marks ?
? ?
2
1
Cash cows
6
Stars
5
4
119
Indikator Cash Flow
Beberapa indikator berikut diperlukan dalam penyusunan matriks BCG:
Cash flow merupakan indikator kunci pada matriks BCG
Cash flow merepresentasikan kemampuan dari unit bisnis untuk membangun portofolio-nya
Cash flow dalam matriks BCG dapat dibagi atas:
Pemakaian kas (cash use) karena pangsa pasar relatif (relative market share) di sumbu horizontal
Penerimaan kas (cash generated) karena pertumbuhan pasar (market growth rate) di sumbu vertikal
Relative market share dapat dihitung dari ratio market share unit bisnis dengan market share pesaing tertinggi
Market growth atau pertumbuhan pada industri bersangkutan.
120
Asumsi Cash flow vs. posisi bisnis
Hubungan antara cash flow perusahaan dengan portofolio bisnisnya dapat terjadi berdasarkan beberapa asumsi :
Profit margin dan penerimaan kas (cash generation) makin besar dengan bertambahnya relative market share, akibat learning curve
Market growth membutuhkan uang tunai (cash used) guna membiayai modal kerja, penambahan kapasitas, dan investasi lainnya
Sebagian unit bisnis membutuhkan uang tunai lebih besar dari pendapatannya, sedang sebagian lain menghasilkan lebih besar dari yang digunakannya
Dalam portofolio perusahaan, cash flow keseluruhan perusahaan harus
seimbang, yaitu antara kebutuhan tunai total dengan kemampuan unit-unit usaha dalam menghasilkan uang tunai ditambah pembiayaan dari luar.
121
Analisa Cash Flow
Relative Market Share
Star Question Mark
Dog Cash Cow
High
Market Growth
Low
Weak Strong
Cash generated +++
Cash use - - -
0
Cash generated + Cash use - - -
- -
Cash generated +++
Cash use - ++
Cash generated + Cash use - 0
122
