Strategic Management

HISTORICAL DEVELOPMENT OF
STRATEGIC MANAGEMENT
1. Birth of strategic management

Originated in the 1950s and
60s
Alfred D. Chandler. Jr.;
Philip Selznick;
Igor Ansoff;
Peter F. Drucker
1950 - 1960 ALFRED CHANDLER

(STRATEGY AND STRUCTURE)
Important taking a long term
perspective when looking to the
future
Strategy was necessary to give a
company structure, direction and
focus
PHILIP SELZNICK, 1957

SWOT ANALYSIS
Matching internal factors organization with
external environment
Strengths and weaknesses :
Company environment
Opportunity and threats :
business environment
IGOR ANSOFF, 1965

(CORPORATE STRATEGY)
Mengembangkan suatu strategy

yang membandingkan market
penetration strategies, product
development strategy, market
development strategy, and
horizontal and vertical integration
and divestification strategies.
ANSOFF MATRIX/GROWTH STRATEGIES
Ansoff's matrix provides four different growth

strategies:
Market Penetration - the firm seeks to achieve
growth with existing products in their current market
segments, aiming to increase its market share.
Market Development - the firm seeks growth by
targeting its existing products to new market
segments.
Product Development - the firms develops new
products targeted to its existing market segments.
Diversification - the firm grows by diversifying into
new businesses by developing new products for new
markets.
DRUCKERS SEVEN KEY IDEAS

1. Management Will Be - Management by
Objectives and Self Control (MbO)
2. Decentralisation as the Preferred Structure
3. The Integration of Productivity by Automation
and Profit
4. Managers Must Measure
5. The Entrepreneurial Function is: The Purpose of a
Business which is to create a customer
6. People are Central to the Organisation
7. The Managers Job is Total Integration
2. CORPORATE PLANNING
(GROTH AND PORTOFOLIO THEORY)
IN THE 60S EARLY 70S

- HARVARD SCHOOL
- SCHUMACHER
1960 1970, HARVARD SCHOOL

PIMS Study
(Profit Impact Marketing Strategies) :
Keterkaitan antara profit dan strategy dengan
ukuran, pertumbuhan dan teori portofolio
Diversifikasi, Franchise, Merger, Akuisisi dan joint
venture, etc.
GROWTH AND PORTFOLIO THEORY

Profit Impact of Marketing Strategies (PIMS)
effect of market share
Started at General Electric, moved to Harvard in
the early 1970s, and then moved to the Strategic
Planning Institute in the late 1970s, it now
contains decades of information on the
relationship between profitability and strategy
"PIMS provides compelling quantitative evidence
as to which business strategies work and don't
work" - Tom Peters.
BRUCE HENDERSON, 1968-BCG MATRIX
SCHUMACHER, 1973
A low market share

strategy could also be
very profitable
3. POSITIONING
IN THE MID 70S MID80S
- HARRY MARKOWITZ (1970-1980)
- JACT TROUT & AL RIES (1979)
1970 1980, HARRY MARKOWITZ

Portfolio theory (a broad portfolio of financial
assets could reduce specific risk.
Boston Consulting Group/BCG Analysis
(teknik yang dikembangkan untuk menganalisis
hubungan antara elemen-elemen dalam suatu
portfolio)
JACT TROUT & AL RIES, 1979

Strategy not must judged by internal factors
company but its how customer see companies in
competition.
Strategy implementation
its created a position in
mindset consumer.
4. COMPETITIVE ADVANTAGE
IN THE LATE 80S 90S
- MICHAEL PORTER (1980-1990)
- ELLEN-EARLE CHAFFEE, 1985
- TOM PETERS, NANCY AUSTIN, 1985
- HENRY MINTZBERG , 1988
- ROBERT KAPLAN, 1992
- MCKINSEY, 1995
1980 1990, MICHA EL PORTER

( COMPETITIVE ADVANTAGE AND
SU STAINABL E COMPETITIVE ADVANTAGE )
Paradoksal,
High market share and Low market share
companies were often very profitable
5 Force analysis generic strategies, value chain
and Strategic business units
THE FIVE FORCE PORTER (1980)
MICHAEL PORTER IN 1985 COMPETITIVE

ADVANTAGE: CREATING AND SUSTAINING S
UPERIOR PERFORMANCE
."
ELLEN-EARLE CHAFFEE, 1985

The main elements of strategy management theory
Strategy management involve adapting the
organization to its business environment
Strategy management is fluid and complex. Change
creates novel combinations of circumstances requiring
instructured non repetitive responses
CONTINUE
Strategy management affects the entire
organization by providing direction
Strategy management involved both strategy
formulation (content) and also strategy
impelemtation (process)
Strategy management is partially planned and
partially unplanned
CONTINUE
Strategy management is done at several levels

overall corporate strategy and individual business
strategies
Strategy management involves both conceptual
and analytical thought processes
TOM PETERS, NANCY AUSTIN, 1985

Management By Walking Around
(WBWA) they spent most of their
days visiting employee, customers
and suppliers
System, 3 actual : place, thing and
situation
1988, HENRY MINTZBERG

strategic planning. Instead he concludes that there are
five types of strategies. They are: Strategy Process
Strategy as plan - a direction, guide, course of action intention rather than actual
Strategy as ploy - a maneuver intended to outwit a
competitor
Strategy as pattern - a consistent pattern of past
behavior - realized rather than intended
Strategy as position - locating of brands, products, or
companies within the conceptual framework of
consumers or other stakeholders - strategy determined
primarily by factors outside the firm
Strategy as perspective - strategy determined
primarily by a master strategist
BALANCE SCORECARD
1992, Robert Kaplan dan David

Norton
dalam Harvard Business
Review edisi Januari-Pebruari 1992,
metode pengukuran :
The Balanced Scorecard Measures
That Drive Performance.
1996 Balance ScoreCard direvisi dengan

munculnya istilah strategy map / peta
strategi.
lebih lanjut tahun 2004 Balance
ScoreCard lebih diperbaharui dengan
pembahasan lebih rinci mengenai peta
strategi dengan terbitnya buku :
strategy maps, converting intangible
assets into tangible assets
1995, MCKINSEY (7S FRAMEWORK)
They divided management into 7 aspects

Hard Factors :
Strategy, Structure, Systems
Soft Factors :
Skills, Staff, Style, and Supraordinate goals (which we
would now call shared values )
5. STRATEGY INNOVATION
IN THE 2000S
- KNOWLEDGE MANAGEMENT
THE 21 ST
CENTURY COMPETITIVE LANDSCAPE
globalization of industries and

their markets
rapid and significant
technological
changes
THE STRATEGIC
MANAGEMENT PROCESS
FIRMS USE THE STRATEGIC MANAGEMENT
PROCESS TO ACHIEVE STRATEGIC
COMPETITIVENESS AND EARN ABOVEAVERAGE RETURNS.
STRATEGIC COMPETITIVENESS IS ACHIEVED WHEN

A FIRM HAS DEVELOPED AND LEARNED HOW TO
IMPLEMENT A VALUE-CREATING STRATEGY.
A STRATEGY IS
AN INTEGRATED AND
COORDINATED SET OF
COMMITMENTS AND ACTIONS
DESIGNED TO EXPLOIT CORE
COMPETENCIES AND GAIN A
COMPETITIVE
ADVANTAGE.
FINALLY
The End

Strategic Management

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HISTORICAL DEVELOPMENT OF

1. Birth of strategic management

1950 - 1960 ALFRED CHANDLER

PHILIP SELZNICK, 1957

IGOR ANSOFF, 1965

Mengembangkan suatu strategy

ANSOFF MATRIX/GROWTH STRATEGIES

Ansoff's matrix provides four different growth

DRUCKERS SEVEN KEY IDEAS

IN THE 60S EARLY 70S

1960 1970, HARVARD SCHOOL

GROWTH AND PORTFOLIO THEORY

BRUCE HENDERSON, 1968-BCG MATRIX

A low market share

1970 1980, HARRY MARKOWITZ

JACT TROUT & AL RIES, 1979

1980 1990, MICHA EL PORTER

THE FIVE FORCE PORTER (1980)

MICHAEL PORTER IN 1985 COMPETITIVE

ELLEN-EARLE CHAFFEE, 1985

Strategy management is done at several levels

TOM PETERS, NANCY AUSTIN, 1985

1988, HENRY MINTZBERG

1992, Robert Kaplan dan David

1996 Balance ScoreCard direvisi dengan

1995, MCKINSEY (7S FRAMEWORK)

They divided management into 7 aspects

globalization of industries and

STRATEGIC COMPETITIVENESS IS ACHIEVED WHEN

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