Strategic Management and Strategic Competitiveness

1. E-business Strategy : Formulation

7. Objectives and performance indicators in e-business Expand into growing markets and create new innovative services that add value to customers. Make an acquisition of a rival firm Increase market share Form partnerships and alliances with two key supply chain firms Improve efficiency in supply chain Improve customer satisfaction ratings by 12 % through market research and customer feedback Improve customer satisfaction Meet 99 % of delivery time targets over next 12 month period Improve delivery times Reduce procurement costs by 12 % over next 12 month period using existing ICT capability Reduce cost of procurement Retain 95 % of existing customer accounts Retain existing customers Conversion rate increase by 1 % by end of 12 month period Increase revenue form new marketing campaign Performance indicator objectives

8. The Strategic Management Process Figure 1.1 Copyright © 2004 South-Western. All rights reserved.

14. Country Competitiveness Rankings (Population over 20 Million) Country 2002 2003 United States 1 2 Australia 2 3 Canada 3 2 Malaysia 4 6 Germany 5 4 Taiwan 6 7 United Kingdom 7 5 France 8 9 Spain 9 8 Thailand 10 10 Japan 11 11 China 12 12 Brazil 13 0 China 14 0 Korea 15 10 Country 2002 2003 Colombia 16 20 Italy 17 14 South Africa 18 16 India 19 0 India 20 17 Brazil 21 15 Philippines 22 18 Romania 23 0 Mexico 24 19 Turkey 25 23 Russia 26 21 Poland 27 22 Indonesia 28 25 Argentina 29 26 Venezuela 30 24 SOURCE: From World Competitiveness Yearbook 2003, IMD, Switzerland. http://www.imd.ch.wcy.esummary, April. Reprinted by permission. Table 1.1

36. Perbandingan pendekatan I/O dan Resource-Based Sumber : Coulter (2002 : 35) Mengembangkan sumber daya dan kapabilitas yang khas Memilih industri yang menarik; posisi yang sesuai Pilihan Strategik Sumber daya kompetensi Persaingan Perhatian Utama Internal Eksternal Fokus Jenis, jumlah, dan nature sumber daya perusahaan Karakteristik industri; posisi perusahaan dalam industri Penentu Profitabilitas Memiliki aset dan kapabilitas perusahaan yang khas Positioning dalam industri Keunggulan Kompetitif Resource-Based I/O

40. How Resources and Capabilities Provide Competitive Advantage The firm is organized appropriately to obtain the full benefits of the resources in order to realize a competitive advantage Valuable Allow the firm to exploit opportunities or neutralize threats in its external environment Rare Possessed by few, if any, current and potential competitors Costly to imitate When other firms cannot obtain them or must obtain them at a much higher cost Nonsubstitutable

41. Resources and Capabilities, Core Competencies, and Outcomes Core Competencies Competitive Advantage Value Creation Above Average Returns Valuable Rare Costly to Imitate Nonsubstitutable

45. The Three Stakeholder Groups Figure 1.4