Strategy Methods & Evaluation

Subject : International Corporate Strategy| IBM1026

Lecturer: Metta Padmalia, S.Si., M.M., CPM (Asia)

International Business Management, Universitas Ciputra, 2017

Strategy methods

Three strategy methods

International Business Management, Universitas Ciputra, 2017
 Strategy Developmental Methods
Internal

External
International Business Management, Universitas Ciputra, 2017
Organic development
Organic development
is where a strategy is
pursued by building on
and developing an
organisations own
capabilities. This is
essentially the do it
yourself method.

International Business Management, Universitas Ciputra, 2017

Mergers and acquisitions
A merger is the combination of two previously
separate organisations, typically as more or less
equal partners.
An acquisition involves
one firm taking over
the ownership (equity)
of another, hence the
alternative term
takeover.

International Business Management, Universitas Ciputra, 2017

Strategic motives for M&A
Strategic motives can be categorised in three
ways:
of scope in terms of geography,
Extension products or markets.

increasing scale, efficiency and

Consolidation market power.

enhancing technological know-

Capabilities how (or other competences).

International Business Management, Universitas Ciputra, 2017

Strategic alliances

A strategic is where two or more organisations share

alliance resources and activities to pursue a strategy.

Collective is about how the whole network of alliances

of which an organisation is a member
strategy competes against rival networks of alliances.

Collaborative is about managing alliances better than

advantage competitors.

International Business Management, Universitas Ciputra, 2017

 Types of strategic alliance
There are two main kinds of ownership in strategic
alliances:
Equity alliances
Non-equity alliances project-based alliances

International Business Management, Universitas Ciputra, 2017

 Equity alliances
The most common form of equity
alliance is the joint venture, where
two organisations remain independent
but set up a new organisation jointly
owned by the parents.
A consortium alliance involves
several partners setting up a venture
together.
E.g., commercial aircraft manufacturing
(Boeing and Airbus)
International Business Management, Universitas Ciputra, 2017
Non-equity alliances
Non-equity alliances are often based on
contracts.
Three common forms of non-equity alliance:
Franchising.
Licensing.
Long-term subcontracting.

International Business Management, Universitas Ciputra, 2017

Comparing acquisitions, alliances and
organic development
Four key factors in choosing the method of strategy
development :
internal development may be too slow, alliances
Urgency can accelerate the process but acquisitions are
quickest.

an alliance means risks are shared and thus a

Uncertainty failure does not mean the full cost is lost.

acquisitions work best with hard resources

Type of (e.g. production units) rather than soft
capabilities resources (e.g. people). Culture clash is the big
issue.

Modularity of if the needed capabilities can be clearly

separated from the rest of the organisation an
capabilities alliance may be best.

International Business Management, Universitas Ciputra, 2017

 SAFe

Suitability: menilai kesesuaian strategi

berdasarkan isu peluang dan ancaman
yang dihadapi perusahaan
Acceptability: apakah performa
perusahaan memenuhi ekspektasi
stakeholder
Feasibility: apakah strategi dapat berjalan
pada kenyataannya

International Business Management, Universitas Ciputra, 2017

 SUITABILITY

Apakah strategi bisa mengambil peluang

dan menghindari ancaman yang ada di
lingkungan
Apakah strategi dapat mempergunakan
kapabilitas perusahaan

International Business Management, Universitas Ciputra, 2017

 ACCEPTABILITY

Risk (high/low; longterm/short term)

Sensitivity analysis
Financial ratio
BEP
Return
Profitability
Reaction of stakeholder

International Business Management, Universitas Ciputra, 2017

 FEASIBILITY

Sumber daya dan kompetensi ada dan

memadai?
Jika tidak, bagaimana untuk
mendapatkannya?

International Business Management, Universitas Ciputra, 2017

Mengukur tingkat suitability

1. Ranking

International Business Management, Universitas Ciputra, 2017

 2. Screening (digunakan bila tingkat
ketidakpastian tinggi) menggunakan:
Keunggulan kompetitif (dapat berupa cost
leadership atau differentiation)

International Business Management, Universitas Ciputra, 2017

3. Decision tree

International Business Management, Universitas Ciputra, 2017

 4. Life cycle

Developing
Growth
Maturity
Ageing/Declining

International Business Management, Universitas Ciputra, 2017