Business Strategy

M. Mozart B. Darus, MSc. MBA

 Sari Roti (spesialis) Mayestik (Generalis)

Three fundamental questions:

Which business should we stay in?

Which business should we get out of?
Which new business should we get into?

Single business must address the same basic

question, but the scope is limited.

Key Analysis and

Decision Areas at
Functional
Level
Marketing (Marketing Mix)
4P

Consumer analysis
Product line and brand strategy
Pricing
Place (Distribution / location)
Promotion

Production

Quality control
Plant site location
Purchasing
Facility and equipment maintenance
scheduling

 Human resources

Employee promotion procedures

Training
Compensation
Hiring

Finance

Capital structure
Dividend policy
Working capital
Financial markets

 Research and development

Technical innovation
Technical development
Product imitation

 Concentrated Growth Strategies: center on

improving current products and/or markets. To
exploit available opportunities with current
products and/or in current markets by doing
what it is presently doing, only better.
Market Penetration: seeking growth for current
products in current markets, normally through more
aggresive marketing efforts. Contoh : Sari Roti,
Gulaku (packaging), promosi, discount.
Increase the rate of purchase of the product, Attract
competitors customers, Buy a competitor

 Market Development: seeking growth by entering

new markets with current products. Contoh: Jawa,
Bali, ASEAN
Product Development: seeking growth by
developing new products for current markets. Can
be developed internally, acquired through licensing
agreements, or acquired through merger with or
acquisition of another firm. Contoh: perusahaan
memiliki produk bagus, jadi incaran perusahaan lain
Find new geographical markets, Find new target markets,
Find new uses

 Individual Product Development

Feature Improvement: modifying, adding to,
or rearranging present features
Quality Improvement: reliability, speed, taste
Style Improvement: color, package design
Model Addition: different models and sizes
can be developed

 Integrative Growth Strategies: approriate for

firms that are strong in industries but cannot
initiate one of the concentrated (eg. saturated
markets).
Backward Vertical Integration: seeking growth by
acquiring ownership or increased control of supply
sources.
Forward Vertical Integration: seeking growth by
acquiring ownership or increased control of channel
functions closer to the ultimate market, such as
sales and distribution systems

 Diversification Growth Strategies:

Markets of current business(es) are approaching
the points of saturated or decline of the product
life cycle
Current business(es) are generating excess cash
that can be invested elsewhere more profitably
Synergy is possible from new business
Antritrust regulations prohibit expansion in
present industry
The international sector can be entered quickly
Technical expertise can be gained quickly

 Concentric Diversification: seeking growth

by appealing to new markets with new products
that have a meningful technological or
marketing fit or synergy with existing products.
Acer membuat handphone, AA membuka
tunes.com hotel.
Horizontal Diversification
Vertical Diversification
Conglomerate Diversification: no technological
relationship to current products.

 Decline Strategies: a firm needs to regroup to

improve efficiency after a period of fast growth,
economic uncertainty etc.
Retrenchment: to fall back and regroup. Attention is
focused on issues such as reducing operating
expenses and improving productivity, reduced hiring,
layoffs of personnel, dropping marginal products,
and closing marginal facilities.
Divesture: sells or closes one of its business
Harvest: maximise cash flow in the short run
Liquidation: the entire firms ceases to exist

 Combination Strategies:

Market Penetration: improving fashion image

Product Development: new products
Backward Integration
Horizontal Diversification
Divesture

 External Corporate Strategy Option

Mergers: two or more firms combine to form a single, new
company. Firms mutually agreeing to combine and create a
new name and identity, issue new stock, new organizational
structure etc
Acquisitions: firm purchases another and absorbs or adds in
to existing operations, often as an operating subsidiary or
division. The absorbed firm may retain its individual identity,
however, if the indentity is an important strategic element. Eg,
Sampurna.
Joint Ventures: two or more firms join forces to accomplish
something that a single organization is not suited for. The
ownership of firms remains unchanged.

The Product Life Cycle

Introduction Stage Strategies
A rapid skimming strategy: high prices and high level of
promotion
A slow skimming strategy: high prices and low promotion level
A rapid penetration strategy: low prices with heavy promotion
A slow penetration strategy: low pries and low promotion

Growth Stage Strategies

Maturity Stage Strategies
Decline Stage Strategies

 Three types of joint ventures

International joint ventures: to overcome political
or cultural barriers. Sometimes, the only legal
avenue for competing in foreign country.
Sometimes develop because a specific mutually
beneficial strategy is beyond the financial means
of any individual firm.
Two (or more) firms posses different
competencies

 Corporate Strategies and Firms Performing

Below Potential: by making the right kind of
adjustments. Formulating a turnaround
strategy:
Increase revenue, such as by increasing advertising,
raising or lowering price, and improving customer
service.
Reduce costs, such as by job reductions an
productivity improvement
Improve cash flow, by selling assets and dropping
marginal products

The Strategy Selection

Process

Identify the present corporate strategy

Conduct the portfolio analysis
Select the corporate strategy
Evaluate the selected strategy

 Identity Present Corporate Strategy

Key internal factors: 1. corporate and
business objectives, 2. resource allocation
criteria, 3. attitudes toward financial risk 4.
focus on R&D efforts
Key external factors

Conduct Portfolio Analysis

 Select Corporate Strategy

Industry Strength and Corporate Strength
Objectives
Attitudes of CEO
Financial Resources
Skills
Familiarity with and Commitment fo Previous
Strategy
Degree of External Dependence
Stakeholders Reaction
Timing

Competitive Strategy
Market Leaders
Market Challengers
May be quite large but are not number one in the market.
Head-on or direct attact on the market leader

Market Followers
Do not choose to challenge the market leader. Although their
market share is usually smaller, overall profit can be as good
or better

Market Nichers
Small niches that the major firms are likely to overlook or
ingnore. Normally involves some kind of specialization, such
as by customer characteristics, geography, product line etc

 Bakri Plantations mulai melakukan ujicoba terhadap

sejumlah pabrik yang memproduksi fatty acid dan fatty
alcohol, utilisasi optimal akhir 2011
Bakri akuisisi aset Domba Mas, takeover hutang di
Bank Mandiri senilai US$ 180juta. (Financial
Engineering)
Domas Agrointi Prima (oleokimia), Flora Sawita
Chemindo, Sarana Industama Perkasa, Domas
Sawitinti Perdana
Bakri perluas lahan sawit ke Liberia, Afrika. Afrika
belum tersentuh dan dekat Eropa. Ada masalah
keamanan, ke depan dapat diatasi.

 Target 2014, 200.000 ha, CPO 450.000 ton.

Tanaman per ha 130 pohon. Dengan R&D, per
ha ditanami 200 pohon, TBS 40 ton per ha.
Juga memproduksi karet. Ketersediaan lahan
terbatas di dalam negeri. Lahan saat ini
144.000 ha. Strategi pertumbuhan produksi.
Kebun Bunut, Kisaran sudah 100 thn.
Roundtable Sustainable on Palm Oil (RSPO)

 PTPN III segera merealisasikan proyek

hilirisasi industri sawit di Kawasan Ekonomi
Khusus Sei Mangke, dengan investasi Rp 3,81
triliun
PTPN IV membangun pabrik pupuk majemuk
NPK. Peningkatan produksi 5%-10%. Selama
ini mengimpor pupuk, waktu selalu tidak pas
Regrouping BUMN perkebunan. BUMN karet,
teh, gula, sawit atau kakao

 Awal Juli 2010, raksasa komoditas global berbasis di

Singapura, Wilmar Internasional Ltd, mencaplok 100%
saham Sucrogen Ltd, Australia senilai US$ 1,47 milliar.
Menandai masuknya Wilmar ke bisnis gula. 3 tahun
terakhir fokus ke bisnis minyak kelapa sawit mentah
dan produk turunannya. Wilmar didirikan duo taipan
William Kuok (Malaysia) dan Martua Sitorus
(Indonesia)
Bursa Komoditi dan Derivatif Indonesia (BKDI) @
Indonesian Commodity and Derivatives Exchange
(ICDC) optimis jadi kiblat harga CPO

 Ekspansi land bank @ tanam. Land

bank; menjaga lahan
Operasional: produktifitas pupuk
Sertifikasi tanah (SHM, HGU)

Kurva permintaan agribisnis (hulu), biaya tetap dan variabel

Marketing Efficiency
Orientasi bisnis profit, melalui fungsional bisnis
Pangan BM 0%, perkebunan PE
Profit, BE, margin kontribusi, rugi
Krisis 08 harga Rp 700, banyak yang collapse, harga tinggi tidak
ada cadangan
Petani semandiri mungkin, jangan terlalu berharap kebijakan
membantu harga, BM hapus, ketahanan pangan untuk siapa? PE
untuk siapa? Untuk konsumen at all means (impor)
Gambar CPO malaysia (trade), pdb, impor pangan, harga
komoditas, future markets