Implementing S trategies : marketing, finance, R&D and IS issues

1. Implementing Strategies : marketing, finance, R&D and IS issues https://www.youtube.com/watch?v=k7-HDdWMmiU https://www.youtube.com/watch?v=OZkTosUEhZg https://www.youtube.com/watch?v=EBZgXM--dKA

2. Apa yang harus ditambah • Apa yang harus dikurangi • Apa yang harus dimulai • Apa yang harus dihentikan

3. Marketing Issues To use exclusive dealership or multiple channel of distribution To use heavy, light or no TV advertising To limit (or not) the share of business done with a single customer To be a price leader or price follower To offer a complete or limited warranty To reward salesperson based on straight salary, straight commission, or combination To advertise online or not

4. Market Segmentation • Market segmentation can be defined as the subdividing of market into distinct subset of customer according to need and buying habits • Market segmentation is an important variable in strategy implementation for at least three major reason : • Strategies such as market development, product development new or improved market segmentation are required • Market segmentation allow a firm to operate with limited resource because mass production, mass marketing and mass advertising are not required • Marketing segmentation decision impact to marketing mix variable 4P

5. Alternative Bases for Market Segmentation Geographic Demographic Psychographic Behavioral • Region • Province • City size • Density • Climate • Age • Gender • Family size • Family life cycle • Income • Occupation • Education • Religion • Race • Nationality • Social class • Personality • Use occasion • Benefit sought • User status • Usage rate • Loyalty status • Readiness stage • Attitude toward product

6. The Marketing Mix Variables Product Place Promotion Price • Quality • Features & option • Style • Brand Name • Packaging • Product line • Warranty • Service level • Other services • Distribution Channel • Distribution Coverage • Outlet Location • Sales territories • Inventory level and location • Transportation carriers • Advertising • Personal selling • Sales promotion • Publicity • Level • Discounts and allowances • Payment term

7. Product Positioning • After markets has been segmented, we can target particular customer groups, the next step is to find out what customer need and want. • Product positioning is used for deciding how to meet the needs and wants of particular customers groups. • The following steps are required in product positioning : • Select key criteria that effectively differentiate products or service in the industry. • Diagram a two-dimensional product-positioning with specified criteria on axis • Plot major competitor’s product or service in the resultant four-quadrant matrix • Identify area in the positioning map, look for vacant areas (niche) • Develop a marketing plan to position the company’s product or service appropriately.

8. Product Positioning Maps Personal High Convenience Bank B Firm 1 Firm 2 Bank A Bank C High Cust’ Loyalty Aggressive Low Cust’ Loyalty Conservative Bank D Firm 3 Bank E Impersonal Low Convenience Rental Car BANKS

9. Product Positioning Maps as a Tool Some rules for using product positioning as a strategy implementation tool Look for the hole or vacant niche. The best strategic opportunity may be an un-served segment Don’t squat between segment. Any advantage from squatting (such as larger target market) is offset by a failure to satisfy one segment Don’t serve two segment with the same strategy. Usually strategy successful with one segment can not be directly transferred to another segment Don’t position yourself in the middle of the map. The middle usually means a strategy that is not clearly perceived to have any distinguishing characteristic

10. Finance / Accounting Issues To raise capital with short-term debt, long-term debt, prefer stock, or common stock. To lease or buy fixed assets To determine an appropriate dividend payout ratio To use LIFO (last in first out), FIFO (first in first out), or a market value accounting approach To extend the time of account receivable To establish a certain percentage discount on account within a specified period of time To determine the amount of cash that should be kept on hand

11. Acquiring Capital to Implement Strategy The basic source of additional of capital for an organization are debt and equity. An Earning Per Share / Earning Before Interest and Taxes (EPS/EBIT) analysis is the most widely used technique for determining whether debt, stock or combination of debt and stock is the best alternative for rising capital to implement strategies.

12. Case : Brown Company They need to rise $ 1 million to finance implementation of a market-development strategy The company’s common stock currently sells $ 50 per share, and 100,000 shares are outstanding. The prime interest rate is 10%, and the company tax rates is 50%. The company’s EBIT next year are expected to be $ 2 million if recession occurs, $ 4 million if the economy stay as is, $ 8 million if economy significantly improve.

13. EPS/EBIT Analysis (in million) Debt is the best financing alternative.

14. Projected Financial Statement Projected financial statement analysis is a central strategy implementation technique because it allow to examine the expected result of various action and approach. A projected income statement and balance sheet  to compute projected financial ratio under various strategy implementation. Result of the Enron collapse and accounting scandal and the ensuing US Sarbanes-Oxley Act (SOA)  being much more diligent in preparing projected financial statement.

15. Projected Income Statement (in million)

16. Projected Balance Sheet

17. Financial Budget • Financial budget is a document that detail how funds will be obtained and spent for a specified period of time. • Financial budgeting is a method for specifying what must be done to complete strategy implementation successfully. • Common type of budgets include cash budget, operating budget, sales budgets, profit budgets, factory budgets, expense budget, divisional budgets, variable budgets, flexible budgets, and fixed budgets • Budget have some limitations : • Over budgeting or under budgeting caused a problem • Budgets can become substitute of objective • Budget can hide inefficiency • Budget are sometimes used as instruments of tyranny that result in frustration, resentment, absenteeism, and high turn over.

18. Research and Development (R&D) • R&D policies can enhance strategy implementation effort to : • Emphasis product or process improvement • Stress basic or applied research • Be leaders or followers in R&D • Develop robotic or manual type process • Spend a high, average, or low amount of money in R&D • Perform R&D within the firm or to contract R&D to outside firm • Use university researcher or private sector researcher R & D person are generally charged with developing new product and improving old product in a way that will allow effective strategy implementation

19. R & D Activities

20. Management Information System (MIS) Issues

21. Tugas M10 • Pelajari Case sesuaidengankelompokanda. • Identifikasi : • marketing issues • Financial / accounting issues • R & D issues • MIS issues

22. Quiz Sebuahperusahaandibidang Telekomunikasi terkemukadansudah go public sedangmengimplementasikanStrategi Market Development mebutuhkandanasebesarRp 100 Milyarduntukmendapatkandanatersebutterdapat 3 alternatif : Common Stock (menjualsaham), Debt (pinjamandari Bank) atau Combination ( 50% common stock dan 50% debt). Situasi Perusahaan saatinisbb : Jumlahsahamberedar : 100 jutalembar, Harga per lembarsaham : Rp 20.000,- Bungapinjaman per tahun : 25% Pajakperusahaansebesar 30% Perusahaan memproyeksikan EBIT tahundepansebesarRp 300 Milyard Pertanyaan : Denganmenggunakan tool EPS / EBIT Analysis ( R David page 294) alternative mana yang paling menguntungkanbagiperusahaanuntukmendapatkandanatersebut