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Strategy Formulation
Strategy and Business Policy
Business Administration
Communication and Business Faculty
Telkom University

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Today’s Topics
Strategy Formulation
1. Mission
2. Objective
3. Strategy
4. Policies

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Thomas L. Wheelen (2012)
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 Proses Formulasi Strategi

1 2 3 4
Mission Objective Strategy Policies

EXAMPLE

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 Hierarchy of Strategy
Corporate
Strategy Overall Direction of Company and
Management of Its Businesses

Business Competitive and Cooperative Strategies

Strategy

Functional Strategy Maximize Resource Productivity

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 Corporate Strategy
• Grand strategy / Master strategy
• Address overall of the organizational direction
• Type Growth Strategy Stability Strategy Retrenchment Strategy

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 Type of Corporate Strategy
Growth Strategy Concentration See Matrix
Diversification Concentric Diversification New Product

Integration Conglomerate Diversification New Business

See Matrix

Stability Strategy Doing Well

Difficult to Growth
Market Growth is Slow
Retrenchment Strategy Harvest
Turnaround
Divestiture
Bancrupty
Liquidation
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Matrix of
Concentration

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 Matrix of
Integration
Supplier

Background / Vertical Integration

Competitors ORGANIZATION Competitors

Horizontal Integration
Forward Integration

Buyer
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 Business Strategy
See Matrix

• Usually occurs at the business unit or product level, and it

emphasizes improvement of the competitive position of
a corporation’s products or services in the specific
industry or market segment served by that business unit.
• Type Competitive Strategy Improvement
Cooperative Strategy Alliance

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The Five Porter’s
Generic Competitive
Strategies

COST LEADERSHIP DIFFERENTIATION

XIAOMI, BRI APPLE
BEST COST
STRATEGY
FOCUS LOW COST FOCUS
DIFFERENTIATION
Kapal di pelosok pulau LV, CHANNEL, JAGUAR

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 Functional Strategy
• The approach taken by a functional area to achieve corporate
and business unit objectives and strategies by maximizing
resource productivity.
• Operation plan within: marketing, production, finance,
human resources, RnD, etc.
• Type Joint Venture,
Merger,
Push / Pull Strategy,
Pricing Strategy
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 PULL and PUSH strategy

PUSH Manufacture Reseller Consumer

PULL Consumer Reseller Manufacture

PULL & PUSH Strategy

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 PRICING strategy
Cost Based Pricing
Product Cost Price Value Customer

Value Based Pricing

Product Cost Price Value Customer

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 Analyze the case
1. Holcim Indonesia
2. PT. Freeport Indonesia
3. PT. Rajawali Nusantara Indonesia
4. Pertamina
5. PT. Perusahaan Dagang Indonesia
6. PT. Pos Indonesia
7. Bank Indonesia
8. Indofood
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INDOFOOD
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 Next Agenda
Strategy Formulation + Quiz

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