Teguh Budiarto

2020
MANAGEMENT
MANAGEMENT
1. Manager and Management
2. Planning and Strategic Plan
3. Organizing and Controlling
4. Motivating and Leading
5. Managing Communication
6. Conflict and Change Management
2 STRATEGIC PLAN
PLANNING &
“Life is what happens while you
are busy making other plans”.
John Lennon
John Lennon 
John Ono Lennon, MBE, born John Winston
Lennon; (9 October 1940 – 8 December 1980),
was an English musician, singer and songwriter
who rose to worldwide fame as a founder
member of the rock band the Beatles, the most
commercially successful band in the history of
popular music. With Paul McCartney, he formed
a songwriting partnership that is one of the most
celebrated of the 20th century.
1 MANAGEMENT
Defining 1. Planning,
Goals 2. Organizing,
3. Controlling the System.
2
Choosing Setting Coordinating
Strategy Structure Communicating

3 Setting
Evaluating Controlling
Information
Performance Mechanism
System
PLANNING &
STRATEGIC PLAN
1. Plan & Planning
2. Strategic Plan
3. Business Strategy
1. PLAN &
PLANNING
“Don’t be afraid to make a
mistake. But make sure you
don’t make the same mistake
twice."

Akio Morita
Akio Morita
Akio Morita was born in Nagoya, Aichi, Japan. Morita's family was
involved in sake, miso and soy sauce production in the village of
Kosugaya  since 1665. In 1944 he graduated from Osaka Imperial
University with a degree in physics. 
On May 7, 1946, Morita and Ibuka founded Tokyo Tsushin Kogyo
Kabushiki Kaisha (the forerunner of Sony Corporation) with about 20
employees and initial capital of ¥190,000. Ibuka was 38 years old,
Morita, 25. On November 25, 1994, Morita stepped down as Sony
chairman
PLAN
is document that outline how goals are
going to be met, include resource
allocation, schedules, and other necessary
actions to accomplish the goals.

1. Goals
2. Strategy
Robbins & Coulter, 2016
Manager makes PLAN:
for: 1. Directing FUTURE goals which
have uncertainty and risks and
how to achieve them,
2. Coordinating JOBS with different
functions,
3. Raising BEST Performance and
control it.
1 PLAN
Is a FUTURE Direction
PLAN crafts future directions which have uncertain
surroundings.

Manager should anticipate future uncertainty into

certain direction.
 People responds to uncertainty,
might to be:
“Let’s Stick What We Do Best, Avoid
1. Defenders Other Involvement”

“Let’s Create Our Own Opportunities, Not

2. Prospectors Wait for Them to Happen”

“Let’s Others Take The Risks of

3. Analyzers Innovating, & We’ll Imitate What
Work best”

4. Reactors “Let’s Wait Until There’s a Crisis,

Then We’ll React ”

Manager needs SCENARIO Plan

SCENARIO Plan
Is the generation of multiple forecasts of
the future conditions followed by an
analysis of how to respond effectively to
each of those conditions

1. Optimistic Plan
2. Moderate Plan
3. Pessimistic Plan
2 PLAN
Is a COORDINATION of Jobs
Manager works with People and coordinates
DIFFERENT jobs and functions
3 PLAN
is way to seek BEST Performances
Management needs Manager’s Best
Performance for achieving the goals.
The Best of Manager’s Performances are
measured by
1. Resource efficiency
2. Goals effectiveness
3. Productivity growth
Manager develops PERFORMANCE Plan.
Performance Plan
• Establish a regular review cycle using your balanced
scorecard (BSC).
• Analyze and compare trends using graphs for rapid
communication of performance.
• Don’t be afraid to change your metrics – life cycle
(inputs to outputs to outcomes)
• Work back upstream to revise your plans:
Action Plans Operating Plans Strategic Plans
• Planning is very dynamic – must be flexible to change.
• Recognize and reward good performance results
• Brainstorm and change – take corrective action on poor
performance results.
Matt H. Evans, matt@exinfm.com
TYPES of
Organizational PLANS
Strategic Operational
PLAN PLAN

1.Time Frame Long-Term Short-Term

2.Specifically
Directional Specific Plan

Standing Single use

3.Frequency of Use
3 Types of1 Plan2 3
Corporate Business Functional
PLAN PLAN PLAN

1.Goal Corporate
Goals
Divisional
Goals
Functional
Goals

2.Strategy Corporate
Strategy
Business
Strategy
Functional
Strategy

3.Structure Structure
Control
Business Unit
Structure
Functional
Structure
1 Corporate Plan
Corporate

Business A Business B Business C

1. Goal Business A’s Goal Business B’s Goal Business C’s Goal

2. Strategy Business A’s

Strategy
Business B’s
Strategy
Business C’s
Strategy

3. Structure Business A’s

Structure& Control
Business B’s
Structure& Control
Business C’s
Structure& Control
2 Business Plan
Business A Business B

Operations A Marketing A Financial A

1. Goal Operations A’s Goal Marketing A’s Goal Financial A’s Goal

2. Strategy Operations A’s

Strategy
Marketing A’s
Strategy
Financial A’s
Strategy

3. Structure Operations s A’s

Structure& Control
Marketing A’s
Structure& Control
Financial A’s
Structure& Control
3 Functional Plan
Marketing A Operations A

Product A Sales A Logistic A

1. Goal Product A’s Goal Sales A’s Goal Logistic A’s Goal

2. Strategy Product A’s

Strategy
Sales A’s Strategy
Logistic A’s
Strategy

3. Structure Product A’s

Structure& Control
Sales A’s
Structure& Control
Logistic l A’s
Structure& Control
PLANNING
is a process managers use to identify
(analyses) and select appropriate goals
and cources of actions (strategies) for
an organization.

Jones & George, 2020

PLANNING
Process:
1. Situational Analysis
2. Goals Determine
3. Strategy Formulation

Jones & George, 2020

1. Situational ANALYSIS
1 Situational Analysis

1. Internal Analysis
2. External Analysis
3. (Re)Define Goal

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Situational Analysis

Past Position

Current
Current External
Organizational
Environment
Resources

Current Position

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2. Defining GOALS
Where its future position wants to go
External opportunity
+
Future
Position
Obje
ctive Goals

Current
Past

-
Position

+ Internal
Position

Strengthness

-
"Cheshire Puss,...Would you
tell me, please, which way I
ought to go from here?"
"That depends a good deal
on where you want to get
to," said the Cat.
"I don't much care where--"
said Alice.
"Then it doesn't matter which
way you go," said the Cat.

Alice in Wonderland by Lewis

Carroll
Define GOALS
Process:

1. Analyse the current Position

2. Do the Future Situational Analysis
3. Define the future Position as your
Goals
 past Define GOALS
Stages:
Current
Current Position Current External
present Organizational
See Vision Mission Environment
Resources

Future
Future External
future Organizational
Environment
Resources

Future Goals as Future Goals as Future Goals as

scenario Pessimistic alternate Moderate alternate Optimistic alternate
Position Position Position
time
GOALS: 1. Goal
2. Objective
3. Target
4. Vision
5. Mission
1. Goal: 
Broad spectrum, complex, organizational,
indication of program intentions.
2. Objectives: 
Measurable, defined, operational, simple
steps, and specific. Objectives contribute to
the fulfillment of specified goals.
• Specific
• Measurable
• Achievable
• Relevant
• Time-bound
 Goals vs. Objectives
GOALS
• Very short statement, few
words
• Broad in scope
• Directly relates to the
Mission Statement
• Covers long time period
(such as 10 years)
Matt H. Evans, matt@exinfm.com
OBJECTIVES
• Longer statement, more
descriptive
• Narrow in scope
• Indirectly relates to the Mission
Statement
• Covers short time period (such
1 year budget cycle)
3. Target 
Is a person, object, or place selected as
the aim of an achievement.
4. Vision 
is outlines what the organization wants
to be, or how it wants the world in
which it operates to be (an "idealized"
view of the world).

It is a long-term view and concentrates

on the future. It can be emotive and is a
source of inspiration.
Starbuck Vision

"To share great coffee with our friends and

help make the world a little better."
Vision Blind spot, be care

Future Current Past

time
5. Mission 
Defines the fundamental purpose of an
organization or an enterprise,
succinctly describing why it exists and
what it does to achieve its vision.
The Mission
The Mission

 "the world's most respected service brand." 

"creating a smarter, better world." 

Amex Mission

Each day, American Express makes it easier, safer and more rewarding
for consumers and businesses to purchase the things they need
3. Formulating Strategy
Strategy is

“You Should Ask to Understand Where

Your Business Is Going”.
Jack Welch
Jack Welch
John Francis "Jack" Welch, Jr. (born November 19,
1935) is a retired American business executive, author
and chemical engineer. He was chairman and CEO of
General Electric between 1981 and 2001. During his
tenure at GE, the company's value rose 4000%. In
2006, Welch's net worth was estimated at $720million.
When he retired from GE he took a severance payment
of $417 million, the largest such payment in history.
Welch adopted Motorola's Six Sigma quality program in
late 1995. In 1980, the year before Welch became
CEO, GE recorded revenues of roughly $26.8 billion. By
1999 he was named "Manager of the Century" by
Fortune magazine.
Strategy
is the actions managers take to
attain the firm’s goals (Hill et al. 2012).

A strategy is sometimes called a

roadmap which is the path chosen
to plow towards the goals.
 Develop Strategy
External opportunity
+
Competitor Future
Position
Options:
A
Future
Position
• Strategy A
Obje
ctive
• Strategy B
Competitor
• Strategy C
Current
Position
B
Current C
-
Past

+ Internal
Position Position

strengthness

-
2. STRATEGIC PLAN
Trojan Horse Strategy 
Trojan Horse 
The Trojan Horse is a tale from the Trojan War about
the subterfuge that the Greeks used to enter the city
of Troy and win the war.

In the canonical version, after a fruitless 10-year siege, the

Greeks constructed a huge wooden horse, and hid a select
force of men inside.

The Greeks pretended to sail away, and the Trojans pulled

the horse into their city as a victory trophy. That night the
Greek force crept out of the horse and opened the gates for
the rest of the Greek army, which had sailed back under
cover of night. The Greeks entered and destroyed the city of
Troy, decisively ending the war.
"If you know the enemy and know yourself,
you need not fear the results of a hundred
battles. If you know yourself but not the
enemy, for every victory gained you will also
suffer a defeat. If you know neither the enemy
nor yourself, you will succumb in every battle."
Sun Tzu
was a Chinese military general, strategist,
and philosopher who lived in the Spring
and Autumn Period of ancient China. The
name he is best known by is actually
an honorific which means "Master Sun": His
birth name was Sun Wu and he was known
outside of his family by his courtesy
name Changqing.
He is traditionally credited as the author
of The Art of War, an extremely influential
ancient Chinese book on military strategy.
Sun Tzu has had a significant impact
on Chinese and Asian history and culture,
both as the author of The Art of War and
as a legendary historical figure.
Urban Strategy
The very nature of an urban environment is such that
potential for chance encounters and unpredictable
human actions. They simply walking down the street,
riding on the subway, or sitting on a bench to rest, while
listening to music. The fact that there’s a good chance
they won’t even be heard, rendering their effort futile or
worse—embarrassing. Headphones enable listeners to
float through public areas in a protective bubble, actively
tuning in or out who or what they want. 
The Walkman Effect refers to the way music
listened to via headphones allows the user to gain more
control over their environment. 
Walkman Effect
Strategic
is a strategy which is
1. achieving or redefine goals using
2. organizational resources in better
way, also
3. adapting external environments.
Strategic Management Process
The Longest Day
is a 1962 war film based on the 1959 history
book The Longest Day by Cornelius Ryan,
about D-Day, the Normandy landings on June 6,
1944, during World War II. The film was produced
by Darryl F. Zanuck. 
The film pays particular attention to the decision by
General Eisenhower, supreme commander
of SHAEF, to go after reviewing the initial bad
weather reports as well as the divisions within
the German High Command on where an invasion
might happen or what response to it should be.
Budget $7.75 million. Box office $50 million.
 Strategic elements

Internal External
Resources Environment

Goals

02/18/2021
3 steps
Strategic Planning Process
1. Position Analysis
2. Setting Objectives Decision
3. Crafting Strategy Ways:
1. Design a fit structure,
2. Allocating its resources,
3. Control environment.
Strategic Management Process
Internal
Analysis

Vision Gap Setting Develop

Mission Organizing Controlling

3
Analysis Goals Strategy

External
Analysis
4 5 6 7
1 2
Strategic Planning Strategic Implementation & Control
7 steps
Strategic Management Process
1. Developing Vision and Mission
2.
3.
Environmental Scanning
Gap Analysis
1
4. Goals Setting 2
5. Crafting Strategy
6. Structuring & Coordinating 3
7. Controlling
Strategic Management Process Steps
1. Developing vision and mission
• the vision as "what we want to be
like in the future" and
• the mission as "what we must do to
accomplish the vision."
 Guiding Principles and Values
• Every organization should be guided by a set of
values and beliefs
• Values are often rooted in ethical themes, such as
honesty, trust, integrity, respect, fairness, . . .
• Values should be applicable across the entire
organization
• Values may be appropriate for certain best
management practices – best in terms of quality,
exceptional customer service, etc.

Matt H. Evans, matt@exinfm.com

Strategic Management Process Steps

2. Environmental scanning
• Analyze the strengths and weaknesses
of the internal organization
environment, and
• Analyze the opportunities and threats
of the external marketplace
environment
Various Situational Analysis techniques
can be used in strategic planning:

• SWOT analysis (Strengths, Weaknesses,

Opportunities, and Threats ), or
• TOWS analysis (Threats, Opportunities,
Weaknesses, and Strengths)
• PESTLE analysis (Political, Economic, Social,
Technological, Legal and Environment),
• STEER analysis (Socio-cultural, Technological,
Economic, Ecological, and Regulatory factors),
and
• EPISTEL (Environment, Political, Information,
Social, Technological, Economic and Legal).
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Assessment Model:Model:
Assessment S.W.OT. Assessment

SWOT
Internal
InternalAssessment:
Assessment:Organizational
Organizationalassets,
assets,
resources, people, culture, systems,
resources, people, culture, systems,
partnerships,
partnerships,suppliers,
suppliers,. .. .. .

External
ExternalAssessment:
Assessment:Marketplace,
Marketplace,
competitor’s,
competitor’s, social trends,technology,
social trends, technology,
regulatory
regulatory environment, economiccycles
environment, economic cycles. .
Timeline Situation
Future

Present

Past
Various Micro Task Analysis techniques
can be used in strategic planning:

• Industrial Structure analysis

• Market analysis
• Competitor analysis

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 Porter’s 5 Forces of Industry Structure Analysis
New Entrant Potentials

Exit Entry

Barriers
Barriers
Strategic Management Process Steps

3. Gap analysis 
Identify the gaps between
• the vision-mission statements
(what we hope to achieve) and
• the environmental scan (current
realities).
Strategic Management Process Steps

4. Setting the Organizational Goals

& Objectives 

Setting the goals and specific

objectives as a strategy developing
to close the gaps.
Setting Goals & Objectives Approaches:
1. Goals and objectives summarized into a mission
statement and/or a vision statement.

2. Vision and mission use to formulate goals and

objectives.

3. Visual strategic plan approach based

on outcomes theory.
Criteria for Good Measures
Integrity – Complete; useful; inclusive of several
types of measure; designed to measure the
most important activities of the organization
Reliable: Consistent
Accurate - Correct
Timely – Available when needed: designed to
use and report data in a usable timeframe
Confidential and Secure: Free from inappropriate
release or attack
Matt H. Evans, matt@exinfm.com
Strategic Management Process Steps

5. Crafting Strategy  
Strategies to reach each goal;
and who's going to be responsible
for each goal and strategy.
 Crafting Strategy Future Position:
1. Design a fit structure,
2. Allocating its resources,
3. Control environment
A
Competitor Goals
B
g y
a te
str

C
Current Position:
1. Structure Evaluation
2. Resource Analysis
3. Environment Gap

02/18/2021 79
Strategic Management Process Steps

6. Structuring & Coordinating of the

Executing Strategy  
The strategic plan is implemented as planned,
as closely as possible.
Objective forms of measurement track
progress and  help people stay on course.
Progress is periodically reviewed.
What are Action Plans?
• The Action Plan identifies the specific steps that will be
taken to achieve the initiatives and strategic objectives –
where the rubber meets the road
• Each Initiative has a supporting Action Plan(s) attached to it
• Action Plans are geared toward operations, procedures, and
processes
• They describe who does what, when it will be completed, and
how the organization knows when steps are completed
• Like Initiatives, Action Plans require the monitoring of
progress on Objectives, for which measures are needed
Strategic Management Process Steps
7. Controlling & Evaluating  
The strategic plan is implemented as planned, as
closely as possible. Objective forms of
measurement track progress and  help people
stay on course. Progress is periodically reviewed.
1. Control of Planning
2. Control of the Executing Strategy
3. Control of the Control System
 Strategic Orientation:

• Resource-base Strategy
• Market-base Strategy

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 Resource Base Strategy

Inside-Out

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The Resource-Based View (RBV)
is a business management tool used to
determine the strategic resources available
to a company.

The fundamental principle of the RBV is

that the basis for a competitive advantage
of a firm lies primarily in the application of
the bundle of valuable resources at the
firm's disposal
(Wernerfelt, 1984; Rumelt, 1984).
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 Jay Barney referring to Daft (1983) says:
"...firm resources include all assets,
capabilities, organizational processes,
firm attributes, information, knowledge,
etc; controlled by a firm that enable the
firm to conceive of and implement
strategies that improve its efficiency and
effectiveness (Daft,1983)."

02/18/2021 Teguh Budiarto 86

Amit & Schoemaker (1993),
…"resources" can be divided into resources
and capabilities.

Resources are tradable and non-specific to

the firm, while capabilities are firm-specific
and are used to engage the resources within
the firm, such as implicit processes to transfer
knowledge within the firm.
(Makadok, 2001; Hoopes, Madsen & Walker, 2003)

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Resource-Base Strategy
THE ENVIRONMENT
THE FIRM • International industry structure
• Degree of internationalization and experience • Degree of int’l of the market
• Size and amount of resources • Host country:
• Type of industry/business Market potential
• Internationalization goals Competition
• Existing network of relationship Psychic/geographic distance
Market similarity

International Market
Segmentation

International Market
Hollensen, 1998 Decision
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Competence-based Strategic  
as a strategic management theory explains how
organizations can develop sustainable competitive
advantage in a systematic and structural way
(1990).

The theory of competence-based strategic

management is an integrative strategy theory that
incorporates economic, organizational and
behavioural concerns in a framework that is
dynamic, systemic, cognitive and holistic
(Sanchez and Heene, 2004).

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Competence
as the ability to sustain the coordinated
deployment of resources in ways that helps
an organization achieve its goals (creating
and distributing value to customers and
stakeholders).

Essential aspects of the ‘‘four cornerstones’’

are: aspires to recognize and capture the
dynamic, systemic, cognitive and holistic
nature of organizational competences.
 Market Base Strategy

Ou
tsi
d e-
In

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 Market’s Needs

Product’s
Decision

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Classifying Capabilities
Market-base Resource-base
strategy strategy

Cravens & Piercy, 2003

02/18/2021 Teguh Budiarto 93
3.Business Strategy
Business Strategy
1. Individual Business
Strategy
2. Multi-Business Strategy
Corporate Strategy
 Individual Business Strategy:
1. Growth, expansion, investment
• New Venture,
• Acquisition
• Branch,
• Merge
• Joint venture
2. Survive, stabilization
3. Retrenchment, harvest, divest

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Individual Business Generic Strategies:

Michael Porter, Competitive Advantages

Four Generic Business Strategies

Michael Porter, Competitive Advantages

Four Business Tactics
Multiple Business Strategy
Corporate Strategy
 Tools of Analysis for Multi Business Strategy
Portfolio Techniques:
1. Growth-Share Matrix Analysis (Boston
Consulting Group/ BCG Matrix)
2. Multifactor Analysis (General Electric/
GE Analysis)
3. Industry Life Cycle Analysis

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 The BCG Matrix

02/18/2021 Teguh Budiarto 102

The BCG Strategy
The BCG Route

tinggi
Question
Star mark
market GROWTH rate
15%

Cash Dog
cow
rendah

tinggi rendah
Relative Market-SHARE
The BCG Matrix version
Cash cow bucket of Wild west frontiers 17th century
Dog day
Dog days
The Dog Days originally were the days when Sirius
rose just before or at the same time as the sun
(heliacal rising), which is no longer true, owing
to precession of the equinoxes. The Romans sacrificed
a red dog in April to appease the rage of Sirius,
believing that the star was the cause of the hot, sultry
weather. The term "Dog Days" was used earlier by the
Greeks 
Dog Days were popularly believed to be an evil time
"the Sea boiled, the Wine turned sour, Dogs grew
mad, and all other creatures became languid; causing
to man, among other diseases, burning fevers,
hysterics, and phrensies." according to Brady’s Clavis
Calendaria, 1813.
The GE / McKinsey Matrix
Criteria
CRITERIA MARKET ATTRACTIVENESS BUSINESS POSITION

MARKET Size of Markets Firm’s Share of Market

FACTORS Market Growth Rate Firms Growth rate
Diversity of Market Firm’s Participation in Diverse
Segments Segments
Price sensirivity

COMPETITIVE Types of Competitoers Competitive Advantage

FACTORS Number of Competitors Firm’s Level of Integration
Levels and types of
Integration

FINANCIAL AND Contribution Margins Firm’s Contribution of Margins

ECONOMIC Leverage thorugh Scale Firm’s Leverage and Scale
FACTORS Barriers to Entry Barriers to Firm’s Entry

TECHNOLOGICAL Matutrity and volatility Firm’s Ability to Handle

FACTORS Patents and Copyrights Change
Requireed Techno;ogy Firm’s Patents and Copyrights
Firm’s Technology Level
Arthur D Little Industry Life Cycle matrix
 Multiple Business Strategy Theory:
1. Industrial Organization Theory
2. Organizational Economics
3. Transaction Cost Economy
4. Agency Theory
5. Resource Based View
6. Dominant Logic
7. Real Options Theory

Wibowo, 2020
02/18/2021 Teguh Budiarto 112
1. Industrial Organization Theory
is a field of economics dealing with the
strategic behavior of firms, regulatory
policy, antiterust policy and market
competition.
1. Industrial Organization Theory
The Structure Conduct Performance (SCP)
Paradigm is a model in Industrial Organization
Economics which offers a causal theoritical
explanantion for firm performance through
economic conduct incomplete markets
(Chamberlain-Robinson, 1933, Bain developed)
1. Industrial Organization Theory
The Structure Conduct Performance (SCP)

Supply Demandc
condition ondition

Structure Conduct Performance

Government Policy
2. Organizational Economics
is the act of coordinating the other
factors of production – land, labor and
capital.
Type:
1. Subsistence
2. Reciprocal exchange with subsistence
3. Market Peasant
4. Market commercial
5. Redistributive, or state socialist
3. Transaction Cost Economy
is part of corporate goverenance and
agency theory. It is based on the
principle that costs will arise when you
get someone else (internal or external)
to do something for you.
4. Agency Theory
is a principle that is used to explain ad
resolve issues in the relationship
between business principals and their
agents. It is assumes that interests of
a principal and an agent are not
always in alignment.
5. Resource Based View
is a managerial framework used to
determine the strategic resources a
firm can exploit to achieve sustainable
competitive advantage. Competitive
position exploits the internal resources
and capabilities relative to external
opportunities.
6. Dominant Logic
is a cognitive map concept which is
includes mindsets, worldview,
conceptual models and adminstrative
tools to accomplish goals and make
decisions in that business.
6. Dominant Logic
Value
Expectations

Data Value
Expectations
Value
Expectations

Reinforced
Behavior
Organizational
Intellegence
Analitic & Organizational
Dominant
Logic Learning
7. Real Options Theory
is a modern theory on how to make
decisions regrding investments when
the future is uncertain. It draws
parallels between the valuation of the
financial options available and the real
economy.
MANAGEMENT Planning
Management Matrix
Plan Organization Control

Planning Planning Planning

Planning
Plan Organization Control

Organizing Organizing Organizing

Organizing Plan Organization Control

Controlling Controlling Controlling Controlling

Plan Organization Control
BUSINESS Planning
3x3 Matrix
Plan Organization Control

Organization
Finance A3 D3 G3

Marketing A2 D2 G2 G3

Plan
Operations A1 D1 G1 G2

Operations Operations Operations G1 H3

Planning Planning Planning Planning
Plan Organization Control H2

Operations Operations Operations H1 I3

Organizing Organizing Organizing Organizing
I2
Plan Organization Control

Operations Operations I1
Operations
Controlling Controlling Controlling
Controling Organization Control
Plan
Generic Strategy Map
“…A little help?”