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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,the function,+,-,:,and,x,are there,to let us know that,values,can change,only through,learning,and,function,”,YOU WILL NEVER,FAIL,?,What if I say.,Causes of business,failures,You risk failures when you:,Start business with the wrong reasons,Do bad management,Do bad marketing,Dont consider competitors,Lack of capital,Spend too much,Choose the wrong location,Get too big too fast,Dont have a website?,Have a BAD BUSINESS PLAN!,YOU NEED TO,KNOW,!,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,Reasons for existence,Objectives,What results to accomplish by when,Strategies,Plan to achieve the mission&objectives,Policies,Broad guidelines for decision making,Programs,Activities needed to accomplish a plan,Performance,Actual results,Budgets,Cost of programs,Procedures,Sequence of steps needed to do the job,How?,(proses manajemen strategi),Feedback/Learning,:Make correction as needed,Strategic Management,Economic,Social,Cultural,Demographic,Environmental,Political,Legal,Governmental,Technological,Competitive trends,Events,External Opportunities and Threats,Societal Environment,Sociocultural Forces,Economic Forces,Political-Legal Forces,Technological Forces,Task Environment,Shareholders,Goverments,Suppliers,Special Interest Groups,Employees/Labor Unions,Customers,Competitors,Creditors,Trade Associations,Communities,Porters Generic Strategies,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 positions itself by,LEVERAGING its strengths,Porter argued that a frims strengths ultimately fall into 2 of 2 headings:,cost advantage,and,differentiation,It is called“generic”because it is not firm or industry dependent,it is a strategy that everyone can apply with some measures,If the primary determinant of a firms profitability is the,attractiveness,of the industry in which it operates,an important secondary determinant is its,position,within that industry,Cost,Leadership Strategy,This generic strategy calls for being:,Low cost producer,in an industry for a,given level of quality,Selling products either at average industry prices to earn a profit higher that that of rivals,or below the average industry prices to gain,market share,In price war,the firm can maintain some profitability while the competition suffers losses,As industry matures and prices decline,firms that can produce more cheaply,will remain profitable for a longer period of time,Cost Leadership Strategy,Choices that determine costs:,If competing firms are unable to lower their costs by a similar amount,the firm may be able to sustain a,competitive advantage,based on 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 generic strategy calls for being:,Development,of a product or service that,offers,unique,attributes,that are,valued,by customers,and that,customers,perceive,to be better than or different,from the products of the competition,The value added by the uniqueness of the product may allow the firm to charge a,premium price,for it as the firm hopes that the higher price will more than cover the extra costs incurred in offering the unique product,Because of the products unique attributes,if suppliers increase their prices,the firm may be able to,pass along the costs,to its customers who cannot find,substitute product,easily,Risks,on strategies,With low cost strategy,as,technology improves,the competition may be able to leapfrog the,production capabilities,thus eliminating the competitive advantage,Even with differentiation,risk may include,imitation,by competitors and,changes,in customer tastes,In focused mar
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