Sesi 4

Strategi Diversifikasi

 JB11; CM4; Artikel#2 & Artikel#3

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BJ11:Diversification Strategies

2
Levels and Types of Diversification

SOURCE: Adapted from R. P. Rumelt, 1974, Strategy, Structure and Economic Performance, Boston: Harvard Business School.
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Diversifying to Enhance
Competitiveness

 Related Diversification
 Economies of scope
 Sharing activities
 Transferring core competencies
 Market power
 Vertical integration
 Unrelated Diversification
 Financial economies
 Efficient internal capital allocation
4
 Business restructuring
Reasons for Diversification

 Incentives and Resources with Neutral

Effects on Strategic Competitiveness:
 Antitrust regulation
 Tax laws
 Low performance
 Uncertain future cash flows
 Risk reduction for firm
 Tangible resources
 Intangible resources 5
Reasons for Diversification (cont’d)

 Managerial Motives (Value Reduction)

 Diversifying managerial employment risk
 Increasing managerial compensation

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Strategic Motives for
Diversification
To Enhance Strategic Competitiveness:
• Economies of scope (related diversification)
Sharing activities
Transferring core competencies
• Market power (related diversification)
Blocking competitors through multipoint competition
Vertical integration
• Financial economies (unrelated diversification)
Efficient internal capital allocation
Business restructuring

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Sharing Resources
at Procter & Gamble
Figure 10.3

Copyright © Houghton Mifflin 10 | 8

Company. All rights reserved.
Transfer of Competencies
at Philip Morris
Figure 10.2

Copyright © Houghton Mifflin 10 | 9

Company. All rights reserved.
Incentives and Resources for
Diversification
Incentives and Resources with Neutral
Effects on Strategic Competitiveness
• Antitrust regulation
• Tax laws
• Low performance
• Uncertain future cash flows
• Risk reduction for firm
• Tangible resources
• Intangible resources

10
Managerial Motives for
Diversification
Managerial Motives (Value Reduction)
• Diversifying managerial employment risk
• Increasing managerial compensation

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Value-creating
Strategies of
Diversification:
Operational and
Corporate
Relatedness

12
Related Diversification

 Firm creates value by building upon or

extending its:
 Resources
 Capabilities
 Core competencies
 Economies of scope
 Cost savings that occur when a firm transfers
capabilities and competencies developed in one
of its businesses to another of its businesses
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Related Diversification:
Economies of Scope

 Value is created from economies of scope

through:
 Operational relatedness in sharing activities
 Corporate relatedness in transferring skills or
corporate core competencies among units
 The difference between sharing activities and
transferring competencies is based on how
the resources are jointly used to create
economies of scope
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Sharing Activities

 Operational Relatedness
 Created by sharing either a primary activity such
as inventory delivery systems, or a support
activity such as purchasing
 Activity sharing requires sharing strategic control
over business units
 Activity sharing may create risk because
business-unit ties create links between outcomes

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Transferring Corporate
Competencies

 Corporate Relatedness
 Using complex sets of resources and capabilities
to link different businesses through managerial
and technological knowledge, experience, and
expertise

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Corporate Relatedness

 Creates value in two ways:

 Eliminates resource duplication in the need to
allocate resources for a second unit to develop a
competence that already exists in another unit
 Provides intangible resources (resource
intangibility) that are difficult for competitors to
understand and imitate
 A transferred intangible resource gives the
unit receiving it an immediate competitive
advantage over its rivals 17
Related Diversification: Market
Power

 Market power exists when a firm can:

 Sell its products above the existing competitive
level and/or
 Reduce the costs of its primary and support
activities below the competitive level

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Related Diversification: Market
Power

 Multipoint Competition
 Two or more diversified firms simultaneously
compete in the same product areas or geographic
markets
 Vertical Integration
 Backward integration—a firm produces its own
inputs
 Forward integration—a firm operates its own
distribution system for delivering its outputs

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Related Diversification:
Complexity

 Simultaneous Operational Relatedness and

Corporate Relatedness
 Involves managing two sources of knowledge
simultaneously:
 Operational forms of economies of scope
 Corporate forms of economies of scope
 Many such efforts often fail because of
implementation difficulties

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Unrelated Diversification

 Financial Economies
 Are cost savings realized through improved
allocations of financial resources
 Based on investments inside or outside the
firm
 Create value through two types of financial
economies:
 Efficient internal capital allocations
 Purchasing other corporations and
restructuring their assets 21
Unrelated Diversification (cont’d)

 Efficient Internal Capital Market Allocation

 Corporate office distributes capital to business
divisions to create value for overall company
 Corporate office gains access to information
about those businesses’ actual and
prospective performance
 Conglomerates have a fairly short life cycle
because financial economies are more easily
duplicated by competitors than are gains from
operational and corporate relatedness 22
Unrelated Diversification:
Restructuring

 Restructuring creates financial economies

 A firm creates value by buying and selling other
firms’ assets in the external market

 Resource allocation decisions may become

complex, so success often requires:
 Focus on mature, low-technology businesses
 Focus on businesses not reliant on a client
orientation
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External Incentives to Diversify
Anti-trust  Antitrust laws in 1960s and 1970s
Legislation discouraged mergers that created
increased market power (vertical or
horizontal integration
 Mergers in the 1960s and 1970s thus
tended to be unrelated
 Relaxation of antitrust enforcement
results in more and larger horizontal
mergers
 Early 2000 antitrust concerns seem
to be emerging and mergers now
more closely scrutinized

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External Incentives to Diversify
(cont’d)
Anti-trust  High tax rates on dividends cause a
Legislation corporate shift from dividends to
buying and building companies in
Tax Laws high-performance industries
 1986 Tax Reform Act
 Reduced individual ordinary income
tax rate from 50 to 28 percent
 Treated capital gains as ordinary
income
 Thus created incentive for
shareholders to prefer dividends to
acquisition investments

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Internal Incentives to Diversify
Low  High performance eliminates
Performance
the need for greater
diversification
 Low performance acts as
incentive for diversification
 Firms plagued by poor
performance often take higher
risks (diversification is risky)

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The Curvilinear Relationship between
Diversification and Performance

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Internal Incentives to Diversify
(cont’d)
Low  Diversification may be
Performance
defensive strategy if:
Uncertain
Future Cash  Product line matures
Flows
 Product line is threatened.
 Firm is small and is in
mature or maturing
industry

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Internal Incentives to Diversify
Low  Synergy exists when the value
Performance created by businesses working
together exceeds the value created
Uncertain by them working independently
Future Cash
Flows  … but synergy creates joint
interdependence between business
units
Synergy and
Risk  A firm may become risk averse and
Reduction constrain its level of activity sharing
 A firm may reduce level of
technological change by operating in
more certain environments

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Resources and Diversification

 A firm must have both:

 Incentives to diversify
 Resources required to create value through
diversification
 Cash
 Tangible resources (e.g., plant and
equipment)
 Value creation is determined more by
appropriate use of resources than by
incentives to diversify 30
Managerial Motives to Diversify

 Managerial risk reduction

 Desire for increased compensation

31
Summary Model of the
Relationship between
Firm Performance and
Diversification

SOURCE: R. E. Hoskisson & M. A. Hitt, 1990,

Antecedents and performance outcomes of
diversification: A review and critique of theoretical
perspectives, Journal of Management, 16: 498.
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CM4: Diversified Expansion

Trend: kembali ke bisnis

inti (downscoping)

Bisnis inti
Bisnis terkait
Bisnis semakin
tidak terkait

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 Alternative for growth and
diversification Produk dan pasar sekarang
• Ekspansi geografis
(domestik, internasional)
• Penetrasi pasar
Pengembangan Produk sekarang ke pasar
produk, pasar, yang baru
dan cakupan • Perluasan penggunaan dan
geografis aplikasi
Ekspansi ke
bisnis Produk baru ke pasar
sekarang sekarang
• Perluasan lini poduk
Ke depan (forward):
Integrasi mendekat ke pelanggan
vertikal
Ke belakang (backward):
(Perluasan
mendekat ke pemasok
rantai nilai)
Strategi Teknologi produk
Pertumbuhan Teknologi proses
Alternatif Pengadaan
Terkait Bahan mentah dasar
(Strategi Proses bahan pabrikan
Horizontal) Komponen pabrikan
Produk rakitan
Diversifikasi Pengujian, distribusi
ke bisnis Pemasaran dan penjualan
baru Pengeceran dan layanan
Tidak terkait
(Konglomerasi)
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Mengapa Melakukan Diversifikasi?

 Dorongan berkembang karena:

 Pertumbuhan External
 Kesempatan yg aktraktif maupun ancaman yang
serius (offensif dan defensif)
 Pertumbuhan Internal
 Memanfaatkan dan mengekspoitasi secara penuh
sumberdaya utama maupun pengembangan keahlian
yg tidak sesuai lagi (offensif dan defensif)


35
Mengapa Melakukan Diversifikasi?

 Excess capacity Sumberdaya

 Berkembang baik dlm hal nilai dan kapasitas karena dipakai
dengan baik
 Brand names
 Sumberdaya baru terbangun dengan dijalankannya proses
operasi
 Perusahaan auditor sekaligus ahli sistem informasi

 Immobile
 SD yang idiosyncratic atau melekat pada perusahaan
 Leveraging SD kedalam bisnis baru
 Obstacle
 Dengan adanya hambatan eksternal ini justru mendorong perush
untuk berekspansi

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Vision (as guiding growth)

 Trade off
 Terlalu dini mengikatkan diri pada visi bisa
mempersempit kesempatan perusahaan untuk
berkembang dan belajar
 Membiarkan diri tidak mengikuti visi bisa
menyebabkan keengganan untuk berkomitmen
secara penuh pada bisnis

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Memadukan SD dan Bisnis

 Lihat slide diversified expansion

 Mencari fit antara SD dan product markets (see BIC)
 SD yang berkontribusi dalam keunggulan kompetitif product markets

 Hati-hati dgn 2 systematic calculations

 Overestimate the transferability of specific resources
 Overestimate the value of very general resources in creating CA in a
new market

 Untuk lolos sbg dasar diversified expansion, SD harus lolos test:

 Competitively superior
 Key success factors
 Competitive parity on the resource it does not posses
 Replicated in new business seetings

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A Sequence of Steps

 Firms tend to diversify into industries that

share similar resource characteristics and
KSFs.
 Similarities in R&D intensity, distribution dan
marketing channel are significant predictors
 To grow further, firms can balance the
exploitation of existing resources with the
development of new ones.

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Resource as a Springboard

 The resources of a firm are at the heart of diversified

expansion
 Be careful of the degree of specificity of resources
 Highly specific resources
 Yield high returns in initial settings, but

 Often lose value rapidly as they are applied in more distant

market
 Less specific resources
 Transfer considerably further, but

 Usually generate lower returns because they are less

critical to CA
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Diversification and Firm
Performance

Firm
Performance

Extent of diversification
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Faktor-faktor yang perlu di
perhatikan

 Pengukuran ‘diversifikasi’
 Pengukuran ‘performance’ across industries
 Moderating variables yang ada (e.g., the
quality and quantity of resources)
Business Corporate
Resources &
Opportunity Strategy
Capabilities
set

Firm Profitability
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Constrained dan Linked
Diversification

 Constrained diversifiers, those that had

grown by building on central strength or
resource, consistently outperformed all other
type of diversifications
 Stick to knitting not always true!

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Mode of Expansion

 Mergers and Acquisitions

 Speed, access to complementary assets, removal of potential
competitor, upgrade corporate resources
 Cost of acquisition, unnecessary adjunct businesses,
organizational clashes may impede integration, large
commitment
 Internal Development
 Incremental, compatible with culture, encourages
intrapreneurship, internal investment
 Slow, need to build new resources, adds to industry capacity;
subscale entry, unsuccessful efforts are difficult to recoup
 Alliances
 Access to complementary assets, speed
 Lack of control, assisting potential competitor, questionable long-
term viability, difficult to integrate learning

44
Artikle #2 Mengapa
Mendiversifikasi Bisnis?

 Perhatikan Evolusi Pemikiran Strategi

Korporat dan Diversifikasi pada slide berikut.

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46
Alasan dibalik Evolusi

 Ide dan keyakinan bahwa manajer profesional

memilikim skills yang bisa diterapkan untuk
mengelola bisnis yang berbeda-beda.
 Atas dasar asumsi bisnis yang berbeda memerlukan
managerial skills yang mirip.
 Selama tahun 1960-an, tumbuhnya konglomerasi
dengan berbagai macam akuisisi bisnis yang
unrelated ‘membenarkan’ keyakinan di atas.
 Lebih dari 20 tahun, keyakinan akan kemampuan
managerial skills ditunjukkan dengan pertumbuhan
korporasi dan diversifikasi.

47
Alasan dibalik Evolusi

 Namun belakangan beberapa korporasi

mengalami penurunan kinerja
 Lalu, muncul pemikiran yang mendefinisikan
strategi lebih dari long-range planning (atau
objective setting), tetapi juga penentuan arah
perusahaan dan persiapan untuk meraihnya.
 Portfolio planning membantu manajer
menciptakan rerangka yang dapat
membandingkan beberapa bisnis yang
berbeda-beda yang ada dalam korporasi.
48
Alasan dibalik Evolusi

 Muncul banyak matriks

 GE industry attractiveness/business position
 BCG growth/share
 Kenyataannya tidak mudah mengelola
balanced portfolios.
 Memang beberapa bisnis yg ada memenuhi
kriteria ekonomi
 Tetapi, bisnis2 tersebut tidak dengan mudah fit
dengan corporate family.

49
Alasan dibalik Evolusi

 Jadi, kesimpulan yang diambil adalah selama ini

diversifikasi sudah ‘kebablasan’, terbukti dengan
banyaknya masalah pada korporasi-korporasi
tersebut.
 Solusi?
 Konsep kesuksesan korporasi berbasis core business
(atau stick to knitting).
 Lihat buku In search of excellence
 Korporasi yang sukses tidak diversifikasi seluas-luasnya
 Fokus memperbaiki knowledge and skills pada area yang
secara terbaik mereka kuasai

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Alasan dibalik Evolusi

 Gelombang selanjutnya adalah upaya

corporate restructuring.
 Back to core business
 Tugas manager adalah mengidentifikasi
bisnis yang seharusnya ada dalam core
portfolio dan mencari cara bagaimana bisnis2
tersebut menambah nilai.

51
Alasan dibalik Evolusi

 Ringkasnya:
 Diversifikasi harus dibatasi (bisnis yang
menciptakan sinergi saja)
 Korporat harus berfokus mengeksploitasi core
competence pada berbagai bisnis
 Kesuksesan diversifikasi tergantung pada
pembangunan portfolio bisnis yang fit dengan
managerial logic manajerial eksekutif puncak dan
gaya manajemennya.

52
Alasan dibalik Evolusi

 Sinergi, salah satunya muncul karena

exploitasi unique skills dan capabilities (atau
dengan kata lain melalui pembangunan core
competence).
 Managerial logic didefinisikan sebagai cara
manajer mengkonsepkan bisnis dan
membuat keputusan kritikal dalam
mengalokasi sumberdaya.

53
Artikel#3: To Diversify or Not To
Diversify

 Diversify
 Rewards dan risks yang luar biasa besar
 There is little conventional wisdom to guide
managers
 Reduce the gamble by answering these 6
questions

54
Question#1

 Apa yang membuat perush lebih baik

dibanding pesaing di pasar sekarang?
 Identifikasi kekuatan kompetitif yg unik dan kokoh
sebelum diaplikasikan di lain tempat (strategic
assets)
 Identifikasi strategic assets berbasis pendekatan
market-driven

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Question#2

 Strategic assets apa yg diperlukan untuk

sukses di pasar yg baru?
 Asumsi yg salah (memiliki beberapa SA saja). Yg
diperlukan adalah memiliki semua SA.
 Upaya Coca-Cola mengakuisis bisnis anggur
 90% SA dikuasai (knowledge of consumers,
distribution, marketing & branding), tetapi 10% SA tak
dikuasai (the ability to make quality wine)
 BP dan Exxon gagal di mineral business yg
mensyaratkan low-cost extraction capabilities dan
access to deposits.

56
Question#3
 Dapatkah kita mengejar atau melampau pesaing melalui area
permainan mereka?
 Jika kita tdk memiliki 1 atau beberapa faktor kritis untuk sukses di
pasar yg baru, dapatkah kita membelinya, mengembangkannya,
atau membuatnya tidak penting dgn merubah aturan kompetitif
industri? Dapatkah kita dapatkan dgn biaya yg masuk akal?
 The Walt Disney ekspansi ke theme parks, live entertainment,
cruise lines, resorts, TV broadcasting dan retailing dgn cara
membeli dan membangin SA seiring waktu.
 Canon menggunakan cara yg berbeda dalam bisnis fotocopy
(dealer management, small and midsize businesses as target
market, focusing on price and quality and not speed)

57
Question#4

 Apakah diversifikasi akan menceraiberaikan

SA yg harus dijaga keutuhannya?
 Apakah SA yg akan di ekspor ke pasar yg baru
memang transportable?
 Apakah unbundling competencies tidak berisiko?
 Lingkungan yang kondusif harus diciptakan jika
SA harus di pisahkan, di kombinasi kembali dan
di relokasi lagi.
 SMH masuk ke Swatch

58
Question#5

 Akankah kita sebagai pemain saja atau

pemenang dalam pasar yg baru?
 Untuk mencapai keunggulan yg sustainable,
perush harus menciptakan sesuatu yg unik
 Market leadership tercapai jika:
 SA yg dimiliki jarang (rare)
 SA yg dimiliki susah untuk diimitasi
 SA yg dimiliki susah untuk disubstitusi

59
Question#6

 Apakah perush belajar dr diversifikasi dan

apakah perush cukup terorganisasi
mempelajarinya?
 Forward-thinking managers
 Memfasilitasi upaya masuk ke pasar baru yang
ke-3 dan seterusnya dengan lebih cepat dan lebih
murah

60
Sony’s Web of
Corporate-Level Strategy
Figure 10.6

Copyright © Houghton Mifflin 10 | 61

Company. All rights reserved.