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Click to edit Master title style,Click to edit Master text styles,Second level,Third level,Fourth level,Fifth level,Entrepreneurship,06,Business Strategy,thefunction+-:andxarethere,to let us know thatvaluescanchange,onlythroughlearningandfunction,”,YOUWILLNEVERFAIL?,WhatifI say.,Causes of businessfailures,Youriskfailures when you:,Start business withthewrong reasons,Do bad management,Do bad marketing,Dont consider competitors,Lackofcapital,Spend too much,Choose the wronglocation,Gettoobigtoofast,Dont have awebsite?,Havea BAD BUSINESSPLAN!,YOUNEEDTOKNOW!,Strategies.,Strategic Management,What is,Strategy,?,it is an,A,R,T,in,formulating,implementing,&,evaluating,of decisions accross the different functions within an organization,to achieve its,objectives,Strategy adalah seni dalam menformulasikan,mengimplementasikan dan mengevaluasi,Berbagai keputusan lintas fungsional yang memungkinkan organisasi mencapai tujuannya.,What?,formulate,implement,evaluate,How?,Enviromental Scanning,Gathering Information,External:,O,pportunities and,T,hreats,Societal Enviromental:,General Forces,Task Environment:,Industry Analysis,Internal:,S,trengths and,W,eaknesses,Structure:,Chain of Command,Culture:,Beliefs,expectations,values,Resources:,Assets,skills,competence,knowledge,Strategy Formulating,Developing Long-range Plans,Strategy Implementation,Putting Strategy into,ACTION!,Evaluation and Control,Monitoring Performance,Mission,Reasonsforexistence,Objectives,Whatresultstoaccomplish by when,Strategies,Plantoachievethemission&objectives,Policies,Broad guidelinesfordecision making,Programs,Activities needed toaccomplisha plan,Performance,Actual results,Budgets,Costofprograms,Procedures,Sequenceofsteps neededtodo the job,How?,(prosesmanajemen strategi),Feedback/Learning,:Make correction as needed,Strategic Management,Economic,Social,Cultural,Demographic,Environmental,Political,Legal,Governmental,Technological,Competitivetrends,Events,ExternalOpportunities and Threats,SocietalEnvironment,Sociocultural Forces,EconomicForces,Political-LegalForces,Technological Forces,TaskEnvironment,Shareholders,Goverments,Suppliers,SpecialInterestGroups,Employees/Labor Unions,Customers,Competitors,Creditors,Trade Associations,Communities,PortersGenericStrategies,Target Scope,Advantage,Low Cost,Product Uniqueness,Broad(Industry Wide),Cost Leadership Strategy,Differentiation Strategy,Narrow(Market Segment),Focus Strategy(low cost),Focus Strategy(differentiation),Points:,A firm positionsitselfby,LEVERAGING its strengths,Porter argued that afrimsstrengths ultimatelyfall into 2of2 headings:,costadvantage,and,differentiation,It is called,“,“generic”because it isnotfirm orindustry dependent,itis astrategy that everyonecanapply with somemeasures,If the primary determinant of afirm,s profitabilityisthe,attractiveness,of the industryin whichitoperates,animportant secondarydeterminantisits,position,within thatindustry,CostLeadership Strategy,Thisgenericstrategy callsforbeing:,Lowcostproducerin an industry for agiven levelof quality,Sellingproductseitherat average industryprices to earn aprofithigher thatthatofrivals,or belowtheaverageindustry pricestogainmarketshare,In price war,thefirm can maintainsome profitabilitywhilethe competition sufferslosses,As industrymatures andpricesdecline,firms thatcan producemorecheaplywill remainprofitable for a longerperiodof time,Cost Leadership Strategy,Choices thatdetermine costs:,If competingfirmsare unableto lower their costs bya similar amount,the firm maybe able tosustain a,competitiveadvantage,basedon cost leadership,Economies of scale,Asset utilization,Capacity utilization pattern,seasonal,cyclical,Interrelationships,order processing and distribution,Value chain linkages,Advertising&sales,Logistics&operations,Product features,Performance,Mix&variety of products,Service levels,Small vs large buyers,Process technology,Wage levels,Hiring,training,motivation,Differentiation Strategy,This genericstrategy calls for being:,Developmentof a productor servicethatoffers,unique,attributesthat are,valued,by customersand thatcustomers,perceive,to bebetterthanor differentfrom the productsof thecompetition,The value added bythe uniqueness ofthe productmay allow the firm to chargea,premium price,for itas the firmhopesthatthe higher price will more than cover theextracostsincurred inoffering theunique product,Because of the productsunique attributes,if suppliers increasetheirprices,thefirm may beable to,pass along the costs,to itscustomers who cannot findsubstitute producteasily,Riskson strategies,With low cost strategy,astechnology improves,thecompetitionmay beableto leapfrogtheproduction capabilities,thuseliminatingthe competitive advantage,Even with differentiation,risk mayincludeimitationby competitors andchangesin customertastes,In focused market,evenimitation and changes may ocurin target segments,furthermore,broad market cost leader mayadaptits productin order tocompete directly,Finally,other focusersmay beableto carve outsub-segme
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