Business Policy and

Strategy: The Art of

Competition
Fandhi Nur Hidayat (1706108651)
Johannes Christino David (1706108771)
Rizqa Akbar Romdloni (1706108903)
Chapter 1 The Importance of Business Strategy and
The External Business Environment
 Strategic planning is the modern-day organizational equivalent
of the Hydra.
 Strategic planning is the development of a competitive strategy
or the planning that sets the long-term direction of the
organization. Its purpose is to guide the organization to
accomplish its mission and to organize the allocation of
resources.
 Strategic planning has lots of benefits
 Why do some CEOs resist strategic planning?
 There are three basic approaches to strategic management:
1.The hierarchical approach requires all activities to be
grounded by the vision, the guiding principles, and the
mission.
2. The eclectic approach is based on past and present activities
where firms wish to acknowledge what is working or has
worked as a formal strategy.
3. The internal/external analysis approach requires that the
organization be evaluated based upon its adaptability to the
external environment.
 Managerial Strategic Desicion Making
 Why Businesses Fail?
 Any firm may be just one decision away from prosperity or oblivion. It
has often been said that it isn’t how many good decisions a CEO
makes that determines the success of a firm; instead, it is how few
bad ones and, in fact, avoiding that one particular bad strategic
decision that may cripple an organization.
 Businesses gain legitimacy by satisfying their stakeholders to a
sufficient degree, and by acting in a morally responsible manner
toward them.
Chapter 2 Critical Beginnings
 “One of the keys to a good strategic plan is that everyone [can understand] the company’s vision, that is to say
where it wants to be in the future.”
 An effective vision should describe the desired state that the company wants to develop into in the next three to
five years. It should be concrete, visual, and descriptive of an ideal condition that provides direction for the
company and all of the internal stakeholders of the organization.
 A company’s values should become the ethical guide that determines how business will be conducted.
 Whereas a vision statement focuses on the future, the mission statement should focus on the present. It is
typically about two to four sentences long and describes what the organization does and the reason for the
organization’s existence
 In developing a mission statement it is important to solicit input from all stakeholders. An excellent mission
statement is the product of many different stakeholders’ perspectives
 All organizations should weigh the benefits and the cost of the mission measurement. The organization must be
careful not to get carried away. It is critical that the benefits exceed the cost.
 Michael Porter has identified three
generic business strategies:
 Low-Cost Leadership Strategy
 Product Differentiation Strategy
 Focused Strategy
 A strategic thrust is an expenditure of
funds that establishes the strategic
direction of the firm; it is the new money
spent today that determines where the
firm will be in the future.
 Value creation is the process by which the
firm transforms its resources from raw
inputs into a product or service that the
customer is willing to purchase.
 The core business is exactly what its name
implies — identifying the type of business in
which an organization wants to be involved.
Successfully identifying an organization’s core
business is vital to the success of that
organization.
 In general terms, a business’ core competency
is an internal organizational process that
allows it to successfully compete.
 Conducting an internal resource audit is
critical to being able to analyze external
opportunities and threats that come from
neutral external events.
 Strategists utilizing the RBV must correctly
identify firm resources in as much detail as
possible, and then evaluate the resource,
based on its contribution to the organization
relative to the similar resources possessed by
competition.
 Outsourcing can be defined as a strategic
decision to obtain goods or services from an
outside agency versus making or providing
the goods or services within the organization
Chapter 4 Identification of Key Performance Measures
 Benchmarking and Determining Current Performance
 Financial performance measures are used to track and monitor
organizational performance.
 Economic Value Added, Return on Invested Capital, and Free Cash
Flow
 Slywotzky and Morrison (1997) define the profit zone as the arena
of a company’s economic activity where high profit is achieved
 Customer Performance Measures (CPM)
 Employee Performance Measures
 Internal process performance metrics address the efficiency and
effectiveness of the various systems within an organization
critical to its survival.
 Support Function Metrics
 One of the keys to maintaining a positive EVA is through asset
management
 Inventory turnover (Inventory DSO) is measured by dividing total
sales by the amount of inventory on hand.
Chapter 5 Monitoring and Forecasting The
Environment
 The Entrernal Environment
 Anticipation of future events and their effect upon a firm’s continued
viability is paramount to the firm positioning itself for the future There is
no escaping the inherent need for management to adequately prepare
for changes that will influence their future operating environment.
 Opportunites and Threats
 Opportunities should be identified as those that are either immediate
or long-term
 Failure to recognize neutral environmental events that will affect the
firm will eventually and inevitably make their presence known in the
form of a threat
INDUSTRY ANALYSIS
• Structure–Conduct–Performance (SCP) Model
Porter’s Five Forces
• Rivalry among firms
• Relative power of suppliers
• Relative power of customers
• New entrants
• Substitute products
 Chapter 6 INFLUENCERS OF CORPORATE
STRATEGY

LIFE-CYCLE INFLUENCE
• Product Life Cycle
• Firm Life Cycle
• Industry Life Cycle
Globalization Influence
• Semua perusahaan dipengaruhi oleh persaingan multinasional karena
pesaing perusahaan memproduksi dalam jumlah besar untuk penjualan di
seluruh dunia, atau menjalankan fungsi alih daya untuk mengurangi biaya.
• Internasionalisasi dapat membantu perusahaan untuk mengurangi biaya
dan meningkatkan pengetahuan mereka dengan meningkatkan skala
ekonomi dan mengekspos perusahaan ke pasar dan peluang baru.
ORGANIZATIONAL LEARNING AND CULTURAL INFLUENCE
• Sejalan dengan tujuan manajemen strategis bagi perusahaan untuk
menciptakan keunggulan kompetitif yang berkelanjutan, yang tidak
mudah ditiru, perusahaan harus mengintegrasikan antar fungsi untuk
menciptakan posisi yang unik.
• Pembelajaran melibatkan perolehan informasi baru, penyebaran
pengetahuan, dan kemampuan untuk mengembangkan pemahaman
bersama tentang aplikasinya.
• Budaya sehat berkembang saat para pemimpin menghargai berbagai
pemain dalam organisasi.
• Budaya perusahaan yang berkembang, biasanya melalui pengaruh awal
pendiri atau CEO, dapat mempromosikan atau mencegah perubahan.
Chapter 7 Organization Design and Structure
DEFINING, DESIGNING, AND CHARTING AN ORGANIZATION
STRUCTURE
• Mintzberg mendefinisikan struktur organisasi sebagai "cara organisasi
membagi tenaga kerjanya ke dalam tugas yang berbeda dan
kemudian mencapai koordinasi di antara mereka
• Desain organisasi berpusat pada keputusan dan tindakan oleh
manajer yang menghasilkan struktur.
• Organization chart menggambarkan bagaimana orang, proses, dan
tugas dikelompokkan secara struktural dan menunjukkan hubungan
pelaporan formal yang ada dalam suatu organisasi
Organization Design Decisions
• Span of Control
Berapa banyak bawahan yang bisa diawasi oleh seorang supervisor tunggal.
Penentuan seberapa efisien seorang manajer dapat mengintegrasikan dan
mengoordinasikan tugas-tugas bawahannya.
• Division of Authority: Vertical Differentiation
Berfokus pada perbedaan otoritas di berbagai tingkat struktur organisasi dan
menekankan hubungan antar anggota dalam suatu hierarki.
• Division of Labor: Horizontal Differentiation
Setiap departemen harus merumuskan sekelompok kegiatan yang memandu
karyawan dan manajer untuk mencapai tujuan dan sasaran organisasi.
Pembagian kerja ini menjadi tugas-tugas terpisah, dan pengelompokan
tugas-tugas selanjutnya ke dalam departemen yang berbeda, dikenal sebagai
diferensiasi horizontal.
Integration: Communication and
Coordination
• Direct Contact
• Hubungan/ Liaison
• Task Force
• Teams
• Integrator Organisasi/
Organizational Integrator
Structural Dimensions
• Centralization
Sentralisasi menggambarkan di mana otoritas pembuat keputusan berada di
dalam organisasi.
• Formalization
Formalisasi adalah sejauh mana aturan dan prosedur tertulis digunakan
untuk memandu tindakan karyawan.
• Standarization
Standardisasi adalah tingkat tindakan rutin dan dapat diprediksi yang
dihasilkan dari formalisasi.
• Complexity
Kompleksitas adalah konsekuensi dari membagi tenaga kerja dan otoritas.
Struktur dan Lingkungan Organisasi
Struktur Mekanisme, karakteristik meliputi:
• Tugas yang sangat terspesialisasi dan terdefinisi
• Pengambilan keputusan terpusat
• Formalisasi tinggi
• Standardisasi tinggi Tingkat komunikasi vertikal yang tinggi
Struktur Organik, karakteristik meliputi:
• Tugas lebih umum
• Pengambilan keputusan yang terdesentralisasi
• Formalisasi rendah
• Standardisasi rendah
• Tingkat komunikasi horizontal yang tinggi
Structural Departmentalization
• Functional Departmentalization
Dalam struktur fungsional, individu dikelompokkan bersama
berdasarkan kesamaan tugas mereka
• Divisional Departmentalization by Product
Struktur di mana organisasi disusun dalam pengelompokan produk
• Divisional Departmentalization by Geography
Divisi diatur sesuai dengan area yang berbeda di mana organisasi
beroperasi
Chapter 8 Strategic Marketing Issues
KONSEP PEMASARAN
American Marketing Association mendefinisikan pemasaran sebagai "fungsi
organisasi dan serangkaian proses untuk menciptakan, berkomunikasi, dan
memberikan nilai kepada pelanggan dan untuk mengelola hubungan
pelanggan dengan cara yang menguntungkan organisasi dan pemangku
kepentingannya."

MARKETING MIX AND STRATEGIES

• Product and Marketing Strategies
• Pricing and Marketing Strategies
• Promotion and Marketing Strategies
• Distribution (Place) and Marketing Strategies
Prospek Pemasaran Strategis
Saat Ini
• International Marketing
• Services Marketing
• Electronic (E) or Internet
Marketing
Chapter 9 Financial Statements
Kemampuan untuk menganalisis laporan keuangan perusahaan tidak hanya
mengungkapkan posisi perusahaan tetapi juga menunjukkan kekuatan dan
kelemahannya. Dengan meningkatkan kekuatan dan mengoreksi kelemahan,
kesuksesan perusahaan di masa depan dapat ditingkatkan. Selain itu, tinjauan
analis keuangan atas laporan keuangan menyoroti bidang-bidang di mana
manajemen dapat memberikan perhatian lebih lanjut untuk meningkatkan kinerja
perusahaan.
Analisis MakroEkonomi
• Analisis ekonomi makro adalah studi tentang ekonomi secara keseluruhan,
termasuk penyebab siklus bisnis. Ekonomi makro mengabaikan permintaan dan
penawaran untuk barang-barang individual dan sebagai gantinya melihat
permintaan dan penawaran semua barang. Alat utama ekonomi makro adalah
diagram permintaan dan penawaran agregat seperti dibawah.
Balance Sheet and Income
• Neraca/Balance Sheet menunjukkan kondisi keuangan atau posisi
keuangan perusahaan pada tanggal tertentu.
• Income Statement/Laporan laba rugi menyajikan pengungkapan,
pengeluaran, laba bersih, dan laba per saham (EPS) untuk periode
akuntansi.
Balance Sheet Berisi :
• Assets : Current Assets, Fixed Assets
• Current Liabilities
• Long-Term Debt
• Equity
Berikut adalah untuk menguji kategori rasio
pendapatan yang terdiri dari :
• Rasio Likuiditas, kemampuan perusahaan untuk menyediakan uang tunai
yang cukup untuk melakukan bisnis selama beberapa bulan ke depan.
• Asset and Liability Management Ratios, Rasio manajemen aset
menunjukkan berapa banyak perusahaan telah berinvestasi dalam jenis
aset tertentu relatif terhadap pendapatan yang dihasilkan aset tersebut.
• Debt Management Ratios, rasio ini menunjukkan kapasitas perusahaan
untuk memenuhi hutang jangka pendek dan jangka panjang.
• Profitability Ratios, mengukur seberapa efektif manajemen perusahaan
menghasilkan laba atas penjualan, aset, dan investasi pemilik.
• Market Value Ratios mengukur opini pasar tentang saham sebagai
investasi, berdasarkan harganya, menggunakan saldo akhir.
Chapter 10 Production and Operation
Management
Manajemen produksi dan operasi berkaitan dengan penciptaan barang dan jasa
melalui penggunaan orang, material, dan mesin secara efektif.
POM adalah fungsi bisnis yang terutama merencanakan, mengatur,
mengoordinasikan, dan mengendalikan sumber daya yang diperlukan untuk
menghasilkan barang atau jasa perusahaan.
Topik yang akan dibahas berkaitan dengan Manajemen Operasi dan Produksi
yaitu :
• Product and service design
• Process selection
• Just-in-time and lean systems
• Supply-chain management
• Quality management
Product and Service Design
• Concurrent engineering
• Quality Function Deployment
• Design for Manufacture, Assembly, and Robustness
• Designing Services
Process Selection
• Type of process
• Processes Planning
• Process Analysis
• Mass Customization
• Business Process Reengineering
• Manufacturing Technology
Just in Time and Lean System
• Pull Production System
• Kanban Production Control
• Quick Setups
• Quality at the Source
• Total Production Maintenance
• Supplier Networks
Supply-Chain Management
• Information Exchange
• Role of Purchasing
• Strategic Sourcing
• Logistics
Quality Management
• Total Quality Management
• Service Quality
• Quality Standards and Awards
Human Resources
Managing people is the key to successfully creating an efficient and
effective organization. Within a firm, there are line and staff personnel.
Line personnel are those who are directly involved with producing the
product or service, whereas staff personnel provide support for the line
managers and employees.
Changing Environment
• About 80 percent of the workforce is employed in
services, and this number continues to increase.
• Women at work
• Immigration
Human Resources Management
• Planning for HR needs
• Work design and job analysis
• Recruitment issues
• Selection planning
• Developing communications
• Training and development
• Appraising performance
• Compensation and benefits
• Career management
• Labor management relations
• Governmental impact
• Automation in HRM
• Unions
• Flextime, Flexible Work Weeks, and Part-time Workers
• Benefits
• Discrimination
• Productivity and Technology
• Performance Improvement and Turnover
Management Information
Systems
Organizations rely upon the effective and efficient exchange and use of
information to create and maintain their core competencies and
competitive advantages. In this chapter, we shall examine the various
components of the organization’s information systems, and the strategic
and tactical roles that these components perform.
Information Systems
• People
• Information
• Infrastructure
• Processes
Types of Information Systems
• Transaction Processing
• Functional Systems
• Enterprise Resource Planning
• Communications
• File Management
Networks and The Connected Organization

• The Internet
• Intranets
• Extranets
Analyzing Global Business
Globalization
Global Business Opportunities
• Benefits of Global or Foreign Direct Investment
• Leaping over Trade Barriers
• Transportation Efficiencies
• Global Integration
Approaches to Global Business
• Exporting and Importing
• Licensing and Franchising
• International Strategic Alliances
• International Joint Ventures (IJV)
• FDI and Acquisitions
Barries to Global Business
• Tariffs • Foreign Exchange Restrictions
• Quotas • Government Monopolies and Favored
Companies
• Export, Import, and Investment Laws
• Local Content Laws • Enforcement of Laws

• Dumping and Price Control Laws • Government Purchasing Policies

• Threat of Nationalization and Expropriation
• Bribery Laws
• Labor Usage Laws • Culture and Language Issues
• Governmental Reduction of Barriers
Global Business and The Currency
Market
• Transaction Effect
• Translation Effect
• Coping with Changes in Currency Values
• Coping through International Bank Loans
• Coping through the Forward Market
• Global Financial Issues
• Human Resource Issues
• Production and Operations Issues
• Management: Leadership Issues
Thank you