44 Stages

Stages
88 Steps
Steps

(Long-run) 4

(Stage I)
Environmental Scanning
Vision &
Mission

External O, T
-

, ,
,

- Five Forces
Model Micheal E. Porter

Internal S. W
, ,
- VRIO
-
(Value Chain
Analysis) Primary / Support
Activities

2
1
Identify
Organizations
Current Situation
Mission
Objective
And
Strategies

Analysis
the
Environment

Identify
O-T

Analysis
the

Identify
S-W

(Stage II)

(Stage III)

(Stage IV)

Strategy Formulation

Strategy Implementation

Evaluation
and Control

Programs / budgets /
Procedures

Objectives

Strategies
/

Vision
Mission
Objective
3

Corporate
Business
Function

Policies

Vision
Mission
Objective
Strategies

Programs

Budgets

Programs

Procedures

Performance
/

SWOT Analysis

Organizations
Resources

Formulate Strategies
()

Implement Strategies
(
)

Evaluate results
(
)

Stage I:

-Economic Forces ()
, , ,
-Technological Forces ()
,
-Political-Legal Forces (
) ,

-Social-cultural Forces (
) ,
Life styles

(Industry Analysis)

Corporate
Corporate Capabilities
Capabilities
(
(

)
)
Core
Core Competencies
Competencies
(
(

))
Distinctive
Competencies
Distinctive Competencies
(
(

)
)

VRIO

2
V
R
Organization
Analysis
Value
Rare
(
(
) (
)
)

I
O
Imitability
Organize
(
(

)
)

Competitive
Advantage

(Strength)
(Weakness)

Porters
Five
Force
Model
New force
Industrial
Matrix

1. Threat of New Entrant:

,


2. Rivalry Among Existing Firms:


,
,
,
3. Threat of Substitute Products or Service:

4. Bargaining Power of Buyers:

5. Bargaining Power of Suppliers:
6. Relative Power of Other Stakeholders:
, , ,
,

(O-T) EFAS

Value Chain
Analysis
(
)

Primary
Activities
()

-Inbound Logistics
(,,)
-Operations
( ,))
-Outbound Logistics
( Output ,))
-Marketing and Sales ()
-Service (,)

Support
Activities
()

-Firm Infrastructure (, )
-HRM (,, )
-Technology Development (,
, )
-Procurement (, )

IFAS (S-W)

Tows Matrix : S,W,O,T

IFAS/EFAS/BCG Matrix

Tows Matrix

3
S,W,O,T

SFAS

EFAS

IFAS

(SWOT)

O,T

S,W

Identify

Distinctive Competency

Opportunities ( )

BCG Matrix

TOWS MATRIX

( Matching)
4

(1)
SO Strategies

(2)
WO Strategies

(3)
ST Strategies

(4)
WT Strategies

Strategic Alternative and Recommended Strategy

Stages
StagesII
II
Formulate
FormulateStrategy
Strategy

Stage II:
Horizontal Growth ()

Growth ()

Direction
Strategy

Stability ()

Retrenchment ()

Portfolio
Strategy

Parenting
Strategy

Pause/Proceed with Caution ( )

No Change ()
Profit ( )

Turnaround (
Captive Company ()
Sell-out/Divestment ()
Bankruptcy/Liquidation (/)

BCG Growth-Share Matrix (

GE Business Screen ( )
Examine Critical Success Factors (CSF)
Examine Area can be Improved
Analyze Parents Fit

Parents Fit
Matrix

- (Heart Land Business)

- (Edge-of-Heart Land Business)
- (Ballast Business)
- (Alien Territory Business)
- (Value Trap Business)

Broad Target

Competitive
Strategy

Lower Cost
( )

Competitive
Scope

()
Differentiation
()

(Broad/Narrow)

-Cost Leadership
-Differentiation
-Cost Focus
-Differentiation Focus
-Quick Response

Narrow Target

Cooperative
Strategy

()

Concentric (related)
Conglomerate (unrelated)

Diversification
( Product )

Forward Integration (//)

( )
Backward Integration (/)

Vertical Growth ()

Concentration
( Product )

Marketing Develop Product/Market, AD or Promotion

Finance
Leverage by out(), Tracking Stock()
Leader or Follower ()
R&D
Operation Vertical Integration ()
Supplier Relation ()
Purchasing Multiple/Sole/Parallel Souring (//)
Logistics Centralization/Outsourcing/Use of the Internet
///
HRM
MIS

Collusion
()
Alliance
()

- (Mutual Service Consortia)

- (Joint Venture)
-
(Licensing Arrangement)
-
(Value-Chain Partnership)

Stages
Stages III:
III: Program/Budget/Procedure
Program/Budget/Procedure

Stages
Stages IV:
IV: Evaluation
Evaluation and
and Control
Control

Corporate Governance and Social Responsibility

Board
Board of
of Directors
Directors

(
(


)
)

Corporate
Governance
(

Top
Top Management
Management

(
(


)
)

Shareholder
Shareholder

(
(

)
)

//
-, , , , -
CEO, -, , ,

- BOD 6 Phantom, Rubber Stamp,

Minimal Review, Participation, Active Participation, Catalyst
//
- (Strategic Vision)
, , ,

- (Manage the Strategic Planning Process)

(Learning Organization)

Staff
1) /

2) ()

Staff
Staff

Core
Core Competencies
Competencies
??

(Scenario
(Scenario Planning)
Planning)

(Benchmarking)
(Benchmarking)

(Total
(Total Quality
Quality Management)
Management)

Value
Value Chain
Chain
/
/
(Reengineering
(Reengineering Concept)
Concept)

Responsibilities of Business

Economic
/
(Must Do:)

Legal
Ethical
Discretionary
//

(Have to Do:)
(Should Do:)
(Might Do:-)
Responsibilities of Social

8
(Strategic Management)

1 (Environment Scanning)
1 (Financial Ratio)
- Liquidity Ratio - Activity Ratio
- Leverage Ratio - Profitability Ratio
- Strength Weakness
-

- Growth
- Stability
- Retrenchment

Financial Ratio (Benchmarking) 3

1

-
-
-

-/
-

-
-

8
(Strategic Management)
(Financial Ratio)
(Liquidity Ratio)

S
W

(Leverage Ratio)

(Activity Ratio)
, ,

(/ S)

(/ S)

(/ S)

(Profitability Ratio)

S
W

S
)

3-4 Ratio
Ratio

8
(Strategic Management)

1 (Environment Scanning)
2 Strategic Posture
- Vision // S
- Mission S
- Objective Vision/Mission S
- Strategy 3 S

- Policy Vision/Mission/Objective S

3 Corporate Governance
Board of Director: BOD

Top Management

Shareholder

,,,
S W
S
W

,
,,

S W

8
(Strategic Management)
1 (Environment Scanning)
4 /

,,
,

/
,,,,

,
,
,

Value Chain

VRIO Framework
V=Value ()
R=Rare ()
I=Imitability ()
O=Organization (
Competitive Advantage
Corporate Capabilities
Core Competencies
Distinctive Competencies

8
(Strategic Management)

10

1 (Environment Scanning)
5 /

Five

/
1

Force Model

o
T

T O

8
(Strategic Management)

11

1 (Environment Scanning)

SWOT Factors
(Matching)
S W O T

8
(Strategic Management)

12

2 (Strategy Formulation)
6 Strategic Alternative/Recommended Strategy
1

Vision/Mission/Objective

Corporate/
Business / Functional

3 (Strategy Implementation)
7 Implementation
ACTION PLAN/PROGRAM

BUDGET

PROCEDURES

4 (Control and Evaluation)

8 Control and Evaluation
/