PERENCANAAN USAHA PERIKANAN

(PIM3237/PIM 20192242)
Strategy and Strategic Planning

Candra Aryudiawan, S.Pi., M.Sc.

Dr. Nurfitri Ekantari
Learning Objectives
• Describe the nature of strategic planning, including the components
and levels of strategy and strategy formulation and implementation.
• Understand the environmental forces important to strategic planning
and how managers position their organizations within those forces.
• Identify major approaches to corporate strategy.
• Identify major approaches to business strategy.
• Identify the major functional strategies developed by most
organizations.
• Describe the process of strategy implementation.
The Nature of Strategic Planning
• The Components of Strategy
• Scope: position firm wants to have in relation to its environment. it
details the markets or industries in which the firm wants to
compete.
• Resource deployment: how organization intends strategically to
allocate resources.
• Distinctive (core) competency: what advantage(s) firm holds
relative to its competitors. organization’s core competency, it is
what enables an organization to outperform its competitors.
• Synergy: extent to which businesses within firm can expect to
draw from one another.
The Nature of Strategic Planning
• Strategy Formulation and Implementation
• Formulation: processes in creating or developing strategic
plans.
• Implementation: processes in executing them, or putting
them into effect.
The Nature of Strategic Planning
• The Levels of Strategy
• Corporate strategy: charts course for entire organization.
• Business strategy: charted for each individual business within a
company.
• Functional strategies: corresponds to each basic functional area
within organization. Common functional strategies include
marketing, financial, and production.
Environmental Analysis
• Organizational Position
• Strengths and weaknesses [SWot]
• Opportunities and threats [swOT]
• Organizational strengths: aspects that let it compete effectively.
Different strengths or distinctive competencies call for different
strategies.
• VRIO framework: whether each identified strength is valuable,
rare, difficult to imitate, exploitable.
Environmental Analysis
• Organizational Position
• Organizational weaknesses: aspects that prevent or deter it from
competing effectively.
• Weaknesses can be overcome through investing whatever
resources are necessary, or they can be allowed to exist with
corresponding changes in the mission and strategy of the
organization.
Environmental Analysis
• Organizational Position
• Environmental opportunities: aspects of environment that enable
it to achieve higher than planned levels of performance.
• When the cost of entry into a market is high or if innovation or
imitation is difficult, an organization already in that market has the
opportunity to solidify and even expand its market share and
establish brand loyalty.
Environmental Analysis
• Organizational Position
• Environmental threats: aspects of environment that if not
countered would impede its progress in achieving its goals.
• If entry and innovation are easy, the possibilities of new entrants
and/or substitute products are clear threats.
• If other competitors are actively competing or jockeying strongly
for market positions and brand identity, the organization is
constantly threatened with a loss of its position unless it
continually responds to such moves.
SWOT Analysis
SWOT Analysis
Environmental Analysis
• Critical Environmental Forces
• New entrants
• Suppliers
• Competitors
• Substitute products
• Buyers
Environmental Analysis
• The Organization-Environment Interface
• Purpose of strategy: determine what position in environment firm
wishes to take.
• Key to developing effective strategy: understand environmental
opportunities and threats and organizational strengths and
weaknesses.
Corporate Strategy
• Alternative Generic Strategies
• Generic (grand) strategy: overall framework for action developed
at corporate level.
• Growth: generate high levels of growth in one or more areas.
• Retrenchment: shrink operations, cut back in some areas,
eliminate unprofitable operations altogether.
• Stability: maintain its status quo.
Corporate Strategy
• Portfolio Approaches
• Views corporation as collection of different businesses.
• Strategic business unit (SBU): autonomous division or business
operating within context of another corporation.
• Portfolio matrix method: SBUs’ two dimensions ─ market growth
rate and relative market share.
Corporate Strategy
• Portfolio Approaches
• Star: product with high share of fast-growing market.
• Cash cows: products that control large share of low-growth
market.
• Question mark: product with small share of growing market.
• Dog: product with small share of stable market.
Corporate Strategy
• Product Life Cycle Approaches
• Product life cycle: how sales volume for product changes during
existence of product.
• Development, demand for the product may be high and the organizational
response is focused on production.
• Growth, more firms enter the market and the organizational response usually turns
to quality, service, and delivery.
• Competitive shakeout, competition intensifies and some firms are driven from
the market
• Maturity, demand slows down and the number of competitors drops off.
• Saturation, focus on low costs and product differentiation.
• Decline, continue to lower costs and also to explore new products or services.
The product life cycle approach
Business Strategy
• The Adaptation Model
• Problems of management
• Entrepreneurial. This problem involves determining which
business opportunities to undertake, which to ignore, and so
forth. Decisions regarding the introduction of a new product or
the purchase of another business.
• Engineering, involves the production and distribution of goods
and services.
• Administrative, involves structuring the organization.
Business Strategy
• Strategic business alternatives
• Defending, conservative approach to business strategy.
• They tend to ignore trends and remain within their chosen
domains.
• They concentrate on efficiency and attempt to create and
maintain loyal groups of customers.
Business Strategy
• Strategic business alternatives
• Prospecting, prospectors attempt to discover and explore new
market opportunities including possible acquisitions.
• They prefer to avoid dependence on a narrow product or
product group.
• They attempt to shift frequently from one market to another.
Business Strategy
• Strategic business alternatives
• Analyzing, analyzers attempt to move into new market areas
but at a deliberate and carefully planned pace.
• The analyzer keeps a core set of products that provide
predictable revenues but at the same time systematically looks
for new opportunities.
Business Strategy
• Competitive Strategies
• Differentiation: setting firm’s products apart from those of other
companies.
• Overall cost leadership: keep costs low as possible and increase
sales volume and/or market share or charge competitive prices
and earn greater profits.
• Targeting: firm identifies and focuses on clearly defined and often
highly specialized market.
Functional Strategies
• Marketing Strategy
• Promotion, pricing, distribution of products and services by
organization.
• Financial Strategy
• Whether to pay out profits to stockholders as dividends, retain
most earnings for growth, take position between these extremes.
Functional Strategies
• Production Strategy
• Follows from marketing strategy.
• Research and Development Strategy
• Invention/development of new products/services.
Functional Strategies
• Human Resource Strategy
• Human resource policies, labor relations, executive development,
employee training, government regulation.
• Organization Design Strategy
• How to arrange the various positions and divisions within the
organization.
Concerns of Basic Functional Strategies
Strategy Implementation and Control
• Tactical planning.
• Contingency planning.
• Integration of Strategy and Organization Design
Strategy Implementation and Control

• Strategic control, the process whereby management assures that the

strategic planning process itself is effective.
• Such control involves evaluating the organization’s progress with its
strategy, its flexibility in meeting changing environmental conditions,
and the resources actually consumed by the strategic planning
process.
TERIMA KASIH