MK Manajemen Strategi : Pemilihan Strategi

Summary

This video provides an in-depth exploration of corporate-level strategy in business management. It covers key topics such as corporate strategies for competitive advantage, including growth, stability, and retrenchment strategies. The video discusses various strategies like vertical and horizontal integration, diversification, and mergers. It also explains how businesses align their unit and functional strategies to improve competitive positioning and efficiency. Through examples like Unilever and Bakrie Brothers, the video offers insights into how companies manage their operations across multiple industries to maximize profitability and sustain long-term success.

Takeaways

• 😀 Corporate level strategy focuses on actions to gain a competitive advantage through simultaneous operations in multiple markets and industries.
• 😀 Key questions in corporate strategy include which business to emphasize, how to integrate different business units, and which business to divest.
• 😀 Companies like Unilever and Bakrie Brothers showcase corporate strategies: Unilever focuses on global operations, while Bakrie Brothers aims for diversification across various industries.
• 😀 There are three primary corporate strategies: growth strategy, stability strategy, and retrenchment strategy, each aimed at different business needs.
• 😀 Growth strategy involves expanding operations either through vertical integration (control of supply chain) or horizontal integration (mergers and acquisitions).
• 😀 Vertical integration can be backward (controlling supply of raw materials) or forward (controlling product distribution), as exemplified by Salim Group and Pertamina.
• 😀 Horizontal integration focuses on expanding within the same industry through acquisitions or mergers, strengthening a company's market presence.
• 😀 Diversification can be related (entering new but connected industries) or unrelated (entering entirely new industries), with the goal of synergy and competitive strength.
• 😀 Stability strategy means continuing operations without significant changes, often as a result of surpassing expected growth.
• 😀 Retrenchment strategy includes efficiency improvements, divestment (selling off parts of the business), or liquidation (shutting down operations when debts can't be met).
• 😀 Business unit strategies aim to enhance competitive positioning, focusing on cost leadership, differentiation, or market focus within specific product or service segments.

Q & A

What is corporate-level strategy and why is it important?

Corporate-level strategy refers to the actions taken by a company to gain a competitive advantage by operating in multiple markets or industries simultaneously. It aims to answer two key questions: 'What business activities should the company focus on to be competitive?' and 'How can these activities be integrated effectively?' This strategy is important because it guides the overall direction and growth of the company.

What are the main objectives of a corporate strategy?

The main objectives of corporate strategy are to determine which businesses to grow, which to maintain, and which to divest. These decisions are crucial in shaping the company's portfolio and ensuring sustained profitability and competitive advantage.

Can you explain the three main types of corporate strategies?

The three main types of corporate strategies are growth strategy, stability strategy, and retrenchment strategy. Growth strategy focuses on expanding the company's business, stability strategy maintains the current position without significant changes, and retrenchment strategy reduces the company's operations to focus on core activities.

What is the difference between vertical integration and horizontal integration?

Vertical integration involves expanding a company’s operations within its supply chain, either backward (toward raw materials) or forward (toward distribution). Horizontal integration, on the other hand, involves expanding into new markets or acquiring similar companies to increase market share and diversify product offerings.

What is backward integration, and how does it benefit a company?

Backward integration refers to a company taking control of its supply chain by acquiring or controlling its suppliers. For example, a company may control the production of raw materials needed for its products. This strategy can reduce costs, improve supply chain reliability, and increase control over the production process.

What is forward integration, and how does it differ from backward integration?

Forward integration is when a company expands its operations to take control of the distribution of its products, moving closer to the consumer. It differs from backward integration, which focuses on controlling the supply chain from raw materials to production.

What are the two types of diversification strategies?

The two types of diversification strategies are related diversification and unrelated diversification. Related diversification occurs when a company enters into a new business that is connected to its current operations, aiming to achieve synergy. Unrelated diversification happens when a company expands into completely different industries with no connection to its existing operations.

What is stability strategy, and when would a company use it?

Stability strategy is when a company decides to maintain its current operations and avoid significant changes. This strategy is often used when the company has reached a satisfactory level of growth and seeks to preserve its market position without risking over-expansion or unnecessary risks.

What is retrenchment strategy and how does it help companies?

Retrenchment strategy involves reducing the scope of a company’s operations, focusing on its most profitable areas. This may include downsizing, divesting, or even liquidating parts of the business. It helps companies regain focus and improve efficiency during challenging times.

What is the role of functional strategies in a company?

Functional strategies are designed to implement the broader corporate strategy at a more operational level. These strategies focus on specific areas like marketing, finance, production, and human resources. They help align each department’s efforts with the company’s overall goals, ensuring smooth execution of corporate-level strategies.