CHAPTER 8 Strategy Functional Strategy &

Strategic Choice Formulation

Vernando
Rustiawibisono D.T.
Dessy Chairunisa Liany

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CHAPTER 8 Strategy Formulation: Functional Strategy & Strategic Choice

Functional Strategy:
The approach a functional area takes to
achieve corporate and business unit
objectives and strategies by maximizing
resource productivity

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Functional Strategy

Marketing Strategy

Pricing
Selling
Distribution

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Functional Strategy

Marketing Strategy
Product development
Line extension
Using a successful brand name to market
other products
It is a good way to appeal to a companys
current customers

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Functional Strategy

Marketing Strategy
Advertising and promotion
Push strategy
Spending a large amount of money on trade promotion
in order to gain or hold shelf space in retail outlets

Pull strategy
Advertising pulls the products through the distribution
channels
A company will spend more money on consumer
advertising designed to build brand awareness so that
shoppers will ask for the product

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Functional Strategy

Marketing Strategy
Pricing
Skim pricing
Penetration pricing
Dynamic pricing

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Functional Strategy

R&D Strategy Deals with product and

process innovation and improvement
Technological leader
Technological follower
Open innovation
A new approach in which a firm uses alliances
and connections with corporate, government
and academic labs to learn about new
developments

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Functional Strategy

Purchasing Strategy Deals with obtaining the

raw materials, parts, and supplies needed to
perform the operations function
Multiple sourcing
A purchasing company orders a particular part from
several vendors

Sole sourcing
Relies on only one supplier for a particular part

Just-in-time (JIT)
Having the purchased parts arrive at the plant just when
they are needed rather than keeping inventories.

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Functional Strategy

Logistics Strategy Deals with the

flow of products into and out of the
manufacturing process
Centralization
Outsourcing
Internet

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Functional Strategy

HRM Strategy Addresses the issue of

whether a company or business unit should
hire a large number of low-skilled
employees who receive low pay, perform
repetitive jobs, and most likely quit after a
short time or hire skilled employees who
receive relatively high pay and are crosstrained to participate in self-managing work
teams

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Functional Strategy

Operations Strategy Determines how and

where a product or service is to be
manufactured
Job shop
Connected line batch flow
Flexible manufacturing systems
Dedicated transfer lines
Mass production
Continuous improvement system
Modular manufacturing

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Functional Strategy

Outsourcing errors
Activities that should not be outsourced
Wrong vendor selection
Writing poor contract
Overlooking personnel issues
Hidden costs of outsourcing
Failing to plan exit strategy

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Proposed Outsourcing Matrix

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Functional Strategy

Strategies to Avoid
3 Follow the leader
Hit another home run
Arms race
Do everything
Losing hand

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Constructing Corporate Scenarios

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Functional Strategy

Subjective Factors Affecting

Decisions
Managements attitude toward risk
Pressures from stakeholders
Pressures from corporate culture
Needs and desires of key managers

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Stakeholder Priority Matrix

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Strategic Choice

Evaluation of Strategic Alternatives

Mutual exclusivity
Success
Completeness
Internal consistency

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TOP KOPI
CASE STUDY

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TOP KOPI
Tingginya minat orang Indonesia untuk minum kopi
ternyata menarik sejumlah perusahaan untuk
menciptakan produk inovatif berbahan dasar kopi.
Salah satunya Wings Food, perusahaanfast moving
consumer goods, yang baru saja meluncurkan kopi
instan bernama Top Coffee. Agar bisa menjadi
merek top seperti Mie Sedaap dan So Klin, PT
Harum Alam Segar (anak usaha Wings Food)
menjalankan enam jurus strategis.

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R & D STRATEGY
Sebelum meramaikan pasar kopi instan,
perusahaan melakukan riset selama 2 tahun untuk
menganalisa peluang bisnis, tren pasar, hingga
karakteristik konsumen. Setelah itu, proses
pengembangan konsep produk dimulai dari
mencari diferensiasi, hingga distribusi penjualan.
saat ini kopi merupakan industri global raksasa yang
mempekerjakan lebih dari 20 juta orang. Komoditi ini
menempati urutan kedua setelah minyak bumi, dengan
lebih dari 400 miliar cangkir yang dikonsumsi setiap tahun.
Alhasil, kopi menjadi minuman paling populer di dunia
setelah air putih.
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DIFFERENTIATION STRATEGY
Wingsfood mengklaim, Top Coffee memiliki positioning
product di pasar. Yaitu, mengemas produk yang
merupakan perpaduan dua jenis kopi robusta dan
arabika. Dengan dua keunikan karakter yang berbeda,
maka proses pemilihan biji kopi, saat pemetikan,
ketepatan dalam temperatur dan penghitungan
dilakukan secara detail dan tepat. Karena kerumitan dan
pengolahan high tech tersebut, Top Coffee berani
mengusung taqline the art of coffee blending.

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MARKETING STRATEGY
Langkah selanjutnya adalah memilih duta merek
(brand ambassador). Untuk meningkatakan citra
merek, perusahaan menunjuk penyanyi
legendaris Iwan Fals. Top Coffee dan Iwan Fals
memiliki kesamaan seperti idealisme dalam
seni, dan menghasilkan mahakarya yang
dikenang.

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MARKET SEGMENTATION

Strategi keempat, menjaring banyak segmen. Di

tengah persaingan yang semakin ketat, Wings
Food jeli melihat peluang dengan membidik pasar
tanpa batasan umur. Caranya dengan menciptakan
4 varian mulai dari kopi murni, kopi gula untuk
dewasa, kopi susu, dan kopi mocca untuk remaja.

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ABOVE THE LINE & BELOW THE

LINE ACTIVITY
Strategi kelima, gencar melakukan
aktivitasabove the line(ATL) danbelow the
line(BTL). Untuk ATL misalnya, komunikasi merek
dilakukan dimedia massa periodik baik cetak,
elektronik ataupun online. Selain itu, Top Coffee
juga kerap muncul dimedia massa non-periodik
sepertibillboarddan brosur. Sedangkan aktifitas
BTL diselenggarakan bersamaan dengan konser
Iwan Fals dibeberapa daerah.

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PARTNERSHIP
Bermitra dengan petani kopi untuk
mendapatkan biji kopi terbaik. Selain
mengajak kerjasama, Wings Food juga
mengandalkan kebun kopi pribadi
sehingga kestabilan produksi bisa terjaga.

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Thank You

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