strategic decision making

Muhammad Awaluddin

120430130510

Mata Kuliah

Proses Stratejik & Pengambilan Keputusan

“STRATEGIC DECISION MAKING”

Program Doktor Manajemen BisnisFakultas Ekonomi dan Bisnis

Universitas Padjadjaran5 April 2014

M. AwaluddinPSPK 2

OUTLINE

STRATEGIC DECISION MAKING

• Decision Making Style

• Characteristic of Strategic Decision

• Strategic Paradox

• Case: Retrenchment TelkomVision

M. AwaluddinPSPK 3

DECISION MAKING STYLE

• Directive Style:

A person has this style if they have a low tolerance for ambiguity and are efficient,

rational, and logical in their way of thinking. They focus on the short term and are quick

to make decisions, usually resulting in a decision that has been made with minimal

information and not carefully analyzing other alternatives.

• Analytic Style:

As opposed to the directive style, a person with an analytic decision-making style has

greater tolerance to ambiguity. They are careful decision makers that like to be well

informed and thoroughly assess their options. They usually have the ability to adapt or

cope with unique and challenging situations.

• Conceptual Style:

Conceptual decision makers are generally very broad in their approach and consider all

available alternatives. They are long-term oriented and are usually capable of

formulating creative solutions to problems.

• Behavioural Style:

People with a behavioral decision-making style work well with others, are open to

suggestions, and are concerned about the achievements of their team. They generally try

to avoid conflict and place importance on their acceptance by others.Source: Robbins, 2006

M. AwaluddinPSPK

Analytical Conceptual

Directive Behavioral

4

DECISION MAKING STYLE

Tasks and Technical Concerns People and Social Concerns

Value Orientation

Lo

wH

igh

• Prefer simple, clear

solutions

• Make decisions rapidly

• Do not consider many

alternatives

• Rely on existing rules

• Prefer complex

problems

• Carefully analyze

alternatives

• Enjoy solving problems

• Willing to use innovative

methods

• Socially oriented

• Humanistic and artistic

approach

• Solve problems

creatively

• Enjoy new ideas

• Concern for their

organization

• Interest in helping

others

• Open to suggestions

• Rely on meetings

So

urc

e: R

ob

bin

s, 2

00

6

M. AwaluddinPSPK 5

CHARACTERISTIC OF STRATEGIC DECISION

Strategic

Decision

Keputusan stratejik merupakan keputusan yang dianggap akan berdampak baik pada jangka panjang

Keputusan Stratejik harus ditujukan

untuk penciptaan nilai, dibutuhkan

lebih dari Competitive Advantage

untuk penciptaan nilai tersebut.

Sumberdaya utama harus

dikerahkan dalam keputusan

stratejik agar bisa memberi

dampak signifikan.

Keputusan stratejik yang

sudah diambil sulit untuk

dirubah, tetapi fleksibilitas

untuk menghadapi masa akan

datang yang tidak bisa

diprediksi harus dijaga.

Keputusan stratejik harus

didukung dengan komitmen

jangka panjang, tercermin

pada budaya perusahaan.

Source: Peter Fitzroy, 2005

M. AwaluddinPSPK

STRATEGY

CHARACTERISTIC OF STRATEGY

Strategi merupakan pola perilaku yg mendasari pengambilan keputusan stratejik

Incremental or Revolutionary

• Incremental Strategy: mengarahkan

aktifitas saat ini untuk penciptaan nilai

yang tinggi

• Revolutionary Strategy: merubah

permainan dipasar

• Corporate Level Strategy: visi, objektif,

budaya, sinergi, pengaturan SBU

• Business Level Strategy: Strategi

bagaimana agar SBU sukses berkompetisi

dan menciptakan nilai di pasar

Corporate/Business Level

• Kompetensi merupakan

gabungan keahlian (skill) dan

kemampuan (ability) yang lebih

baik dibanding kompetitor.

• Kompetensi tidak statis dan

harus dibangun untuk

mendukung strategi

Building Competence

• Strategi diarahkan untuk bisa

menjaga kemampuan

perusahaan berfungsi dengan

baik di kedua ujung paradoks

Resolving Paradox


6

M. AwaluddinPSPK

STRATEGIC PARADOX

• Pendekatan analitik mendorong pada strategi yg

reliable, rational dan tidak bias, namun kadang

cenderung lambat

• Pendekatan kreatif cenderung lebih beresiko namun

cepat, sehingga bisa memberi dampak yang lebih

signifikan

Pada umumnya perusahaan dituntut bisa

memenangkan persaingan di pasar, namun

kemenangan tidak hanya bisa dicapai dengan

mengalahkan lawan, tapi dengan bekerja sama

(Cooperation).

Dibutuhkan komitmen agar strategi bisa mencapai visi

dan misi perusahaan, dengan lingkungan bisnis yang

sangat dinamis, kemampuan untuk membelokkan

strategi harus tetap dijaga (flexible).

Strategi harus bisa mencapai komposisi yang seimbang

untuk mengawal bisnis yang berjalan saat ini dengan

tetap memikirkan inovasi untuk jangka panjang.

SHORT TERM - LONG TERM ANALYTICAL - CREATIVE

COMMITED - FLEXIBLE COMPETITIVE - COOPERATIVE

Strategic

Paradox


“The essence of paradox is that

the firm must be at both end of the

spectrum simultaneously”

7

M. AwaluddinPSPK 8

CASE: Retrenchment TelkomVisionDecision Making Process

Problem

Recognition

Information

Search

Problem

analysis

Alternative

Evaluation Decision

Decision Environment

Source: Materi Kuliah PSPK, Prof. Sucherly

M. AwaluddinPSPK 9

CASE: Retrenchment TelkomVisionProblem Recognition

Problem Recognition:

• Bagaimana membalikan performa TelkomVision agar jadi menguntungkan

dan memberi nilai pada TelkomGroup

Latar Belakang:

• TelkomVision merupakan anak perusahan Telkom yang bergerak di bisnis

PayTV. TelkomVision mengalami kerugian usaha semenjak berdiri tahun

1997, hingga tahun 2012 (15 tahun).

• Berbagai usaha telah dilakukan untuk memperbaiki performa bisnis

TelkomVision, termasuk memberi suntikan dana, 7 kali penggantian CEO

serta sinergi dengan internal TelkomGroup

Source: Data Telkom Indonesia

M. AwaluddinPSPK 10

CASE: Retrenchment TelkomVisionInformation Search & Problem Analysis

Strategic Rationale

Keputusan Telkom untuk bermain di bisnis PayTV merupakan perwujudan visi

“Leading TIMES Player in the Region” yang dicapai melalui “Converged TIMES

Portfolio”.

Digital Media Television, termasuk PayTV, merupakan portofolio bisnis yang

menarik, telkom sendiri punya kompetensi dan daya saing level menengah di

bisnis tersebut, maka strategi yang ideal adalah cooperative strategy/partnership

Hasil penelitian AT Kearney mengungkapkan ada 3 cara memenangkan bisnis TV di

Indonesia, yaitu:

Membeli Free To Air TV (FTA TV)

Berkonsolidasi dengan with FTA

Mengembangkan low cost payTV

Opsi pertama sudah pernah dicoba namun menemui jalan buntu dan kini nilai FTA TV

sudah terlalu tinggi.

Konten menjadi faktor kunci dalam kesuksesan bisnis PayTV, Konten merupakan

komponen biaya terbesar dalam bisnis ini.

Kompetensi Telkom terkait konten masih rendah, sehingga alternatif yang tersedia

adalah bekerjasama dengan FTA TV (Free to Air TV).

Sumber pamasukkan utama PayTV masih berasal dari biaya berlangganan saja,

untuk meningkatkannya bisa melalui pemasukan periklanan.


M. AwaluddinPSPK 11

CASE: Retrenchment TelkomVisionInformation Search & Problem Analysis

Analisa Internal:

• Kompetensi Telkom di bisnis TV di

level menengah.

• Infrastruktur Broadband Telkom

kuat

Analisa Eksternal:

• Digital Media TV merupakan indistri

yang menarik (Pay TV penetration

rendah, Growh opportunity tinggi)

• Kemunculan dari Low Cost TV

• Sudah banyak pemain di industri PayTV

(Kompetisi tinggi)

• Konten merupakan faktor kunci dan

menjadi biaya utama


M. AwaluddinPSPK 12

CASE: Retrenchment TelkomVisionAlternative & Alternative Evaluation

Digital Media Television

Strategic Partnership with FTA

Partnership with The Best Indonesian FTA

Develop Low Cost TVMLTV

(More for Less TV)

Strategy Paradox : Cooperation vs Competition

Cooperation

Competition

M. AwaluddinPSPK 13

(160,000)

(140,000)

(120,000)

(100,000)

(80,000)

(60,000)

(40,000)

(20,000)

0

2010 2011 2012 2013 2014 2015 2016 2017

Net Income vs Investment

Bila tidak terjadi perubahan/transformasi

Business Model, maka:

Kenaikan Revenue yang di-generate oleh

Capital Injection tidak dapat menutup

kenaikan Expense yang utamanya di-drive

oleh Depresiasi dan Allowance/Penyisihan

History1000M

900M

600M

300M

100M


Skenario Capital Injection kepada TelkomVision


M. AwaluddinPSPK 14

Retrenchment merupakan jenis strategi yang dilakukan perusahaan bila dalam posisi

persaingan bisnis yang lemah disuatu industri yang berakibat pada kinerja yang buruk, tingkat

penjualan yang semakin menurun, dan profit berubah menjadi kerugian terus menerus.

Retrenchment

Strategy

Turn Around

Strategy

Captive Company

Strategy

Exit

Strategy

Contraction

Consolidation

Outsourcing

Sole Supplier

Preferred provider

Contact grower

Sell-out

Divest

Bankruptcy

Liquidation

Source: Popy Rufaidah, 2012


M. AwaluddinPSPK

Transaction Structure Considerations

BusPlan : Needs

Capex for

Leveraging Bus+Op

Performance

BOD & BOC

Desision : Strategic

Partnership thru

Strategic Sale

As Is Scenario

Needs Capex :

158-178 IDR B

Sale More Than

Total Cash

Injection :

650/851 B IDR

CSS : Managing

Portfolio Metra as IME

Portfolio Parent

Optimizing Value

Significant

Majority Sale for

Premium Price

Protect and

Optimize Benefit

in SHA

10% 20% 30% 40%

16-18 M actual

Equity injection32-35 M actual

equityinjection

47-53 M actual

Equity injection

63-71 M actual

Equity injection

No risk to achieve

> 850 B IDR

No risk to achieve

> 850 B IDR

Medium risk

to achieve

> 850 B IDR

high risk

to achieve

> 850 B IDR

Metra exercise

Telvis’ right issue

Final Diluted Basis

If 158=10%

100%Eq= 1.6-1.7 T

Metra exercise


Final Diluted Basis

If 158=20%

100%Eq=

800 – 900 M

Metra exercise


Final Diluted Basis

If 158=30%

100%Eq=

527-593 M

Metra exercise


Final Diluted Basis

If 158=40%

100%Eq=

395-445 M

Most Desirable / Straightforward

Probability to be happened

Least Desirable / Straightforward

Probability to be happened

Premium price

Quite low share

Hard to get

Perpetual

Protection

In SHA

Premium price

Low share

Possible to get

Perpetual

Protection

In SHA

normal price

Low share

No need

Protection

Clause

BOD/BOC

Rep

lower price

Med Low share

No need

Protection

Clause

BOD/BOC

Rep


15


M. AwaluddinPSPK 16

• Keputusan yang diambil Telkom terhadap TelkomVision

adalah Strategic Partnership dengan pemain FTA

terbaik di indonesia.

• Tindak lajut dari pemilihan strategi tersebut adalah:

• Evaluasi kandidat Strategic Partner.

• Evaluasi struktur dan skema Strategic

Partnership.

Divestasi 80% saham TelkomVision pada

Strategic Partner.

CASE: Retrenchment TelkomVisionDecision


M. AwaluddinPSPK 17

CASE: Retrenchment TelkomVisionDECISION MAKING STYLE


M. AwaluddinPSPK 18

Strategic

Decision

CASE: Retrenchment TelkomVisionCharacteristic of Strategic Decisions

• Create Value by

Strategic Partnership,

• Leveraging Partner’s

Competency & Best

Contents in TV Industry.

• Economic of Scale of

Contents.

Divest 80% of

Telkomvision Share to

Strategic Partner

The Strategic

Partnership is a long-

term commitment,

because it’s in Telkom

CSS: both for

Telkomvision & Low

Cost TV Business

The divestment is

difficult to reverse. Yet,

Telkom is still flexible by

maintaining 20% Share

of Telkomvision and

Developing Low Cost

TV Business


M. AwaluddinPSPK

STRATEGY

Incremental or Revolutionary

Corporate/Business Level

Building Competence Resolving Paradox

CASE: Retrenchment TelkomVisionCHARACTERISTIC OF STRATEGY

• Incremental: Strategic Partnership

untuk Telkomvsion

• Revolutionary: Masuk ke bisnis Low

Cost TV

• Dengan menerapkan Strategic

Partnership dengan pemain

terbaik di industri tersebut

untuk memperoleh kompetensi

• Strategic Partnership di TelkomVisiondan pengembangan bisnis Low Cost TV adalah Corporate Level Strategy yang di desain dalam Corporate Strategic Scenario

• Long-term vs short-term

• Cooperative vs competitive

• Analytical vs creative

• Committed vs Flexible

19


M. AwaluddinPSPK

SHORT TERM - LONG TERM ANALYTICAL - CREATIVE

COMMITED - FLEXIBLE COMPETITIVE - COOPERATIVE

Strategic

Paradox

CASE: Retrenchment TelkomVisionSTRATEGIC PARADOX

• Short-term: Divestment of 80% TelkomVision Share to Strategic Partner could be seen as short-term since it quickly eliminates the loss & potential loss attributed to TelkomGroup as well as gaining competencies required for TV industry

• Long-term (innovation): In addition to the development of low cost TV business, the strategic partnership itself is a long-term partnership, by retaining 20% share and anticipate potential synergy.

• Analytical: The decision to strategic partnership for Telvis was carried out through a series of analysis and study, one ot them is done by AT Kearney and internal analysis to find the best alternatives and minimize risk

• Creative: despite the fact that the conducted analysis and study had not remove all the risk, the BOD made a strategic decision to strategic partnership in light of their intuition, judgement, discretion due to their experience

• Cooperative: The strategic partnership between TransCorp (80%) and TelkomGroup (20%) in Telkomvision is a cooperative relationship

• Competitive: Yet, Telkom still develop Low Cost TV business platform to develop new portfolio which might be somehow competing with Telkomvision, because no non-competing agreement in SPA (Sales Purchase Agreement) & SHA (Shareholder agreement) of Telkomvision

• Committed: For about 15 years Telkom had been committed to giving best efforts to improve Telkomvisionperformance: capital injection, Change of Telvis BOD with best talents, synergy with TelkomGroup

• Flexible: However, realizing that Telvis needed different strategy, Telkom showed flexibility by deciding to have Strategic Partnership with the best Indonesian FTA player and develop Low Cost TV business platform

20

M. AwaluddinPSPK

REFERENCE

Fitzroy, Peter & Hulbert, James M., 2005, Strategic

Management: Creating Value in a Turbulent World,

John Wiley &Sons, Inc.

Rufaidah, Popy, 2012, Manajemen Strategik, Humaniora,

Bandung.

Robbins, S, Bergman, R, Stagg, I & Coulter, M, 2006,

Foundations of Management 2nd edition, pp 204-205,

Pearson Education Australia, Frenchs Forest

21

M. AwaluddinPSPK

TERIMA KASIH

Economy & Finance

strategic decision making