PT. Astra Honda Motor Strategy English [PDF]

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UJIAN TENGAH SEMESTER



MANAJEMEN STRATEGI



Question 1 State in your own words, main steps in carrying out the following : A. Strategy Formulation 



Company’s Vision and Mission To develop strategies that are suitable for the company or business, we need to know our business and targets to go. We are familiar with the company's vision and mission. By creates vision and mission clearly, it will help companies develop strategies to achieve corporate goals. Example : Astra Honda Motor Company Vision : AHM wants to be the leader of the motorcycle market in Indonesia and become the world class player, by realizing consumer dreams, creating excitement for consumers and contributing to the Indonesian people. Mission : Creating mobility solutions for society with the best products and services.



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AHM made a vision to be the leader of the motorcycle market in Indonesia. This state made AHM focus on the motorcycle market with specific locations in Indonesia. The location is on Indonesia, persuaded AHM to able to find out the needs of Indonesian consumers and design motorcycle products to supports the activities of Indonesia's people (vision: contributing to the Indonesian people). The vision of "creating excitement for consumers" was supported by made BEAT products which use ONE HEART slogans with JKT48 to be the brand ambassador. The mission is the action that companies must take to achieve their vision. AHM made a real action by creating a motorbike as a mobility solution for the society with the best service. SWOT Analysis Furthermore, companies need to define SWOT analysis for companies or selling products. External analysis of the company is important to observe the opportunities and threats from the side of competitors, suppliers, customers, government, society, economic conditions, etc. So, the opportunities and threats would be compared with internal analysis. The internal analysis includes the strengths and weaknesses of the company such as labour, experience, products, brand, location, etc. From the example, the rival of AHM is Yamaha Motor. AHM needs to find out the competitors do, the product's launch and promotions made. Furthermore, compared with the strengths and weaknesses, AHM can compete with competitors. For example for an automatic motorbike, Yamaha first introduced Mio and booming. But AHM can compete with BEAT now. Long Term Strategy Companies must make long-term goals in addition to short-term goals. Long-term goals prepared because each product will enter a decline phase. In order not to miss, AHM must form new products with technology in the period. Alternative Strategy The alternative strategy can be formulated from SWOT namely SO (view strengths and opportunities), or WO (view weaknesses and opportunities), or ST (view strengths and threats) or WT (view weaknesses and threats). Of the various alternative strategies, which one is most likely to be done in terms of costs, resources, and potential success.



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B.



Strategy Implementation



The second phase is an implement of strategy that has been chosen by the company. The company should support the implementation of strategy by creating a working atmosphere, for example in AHM, the value of "ONE HEART" was encouraged. Every communication with employees and customers will begin with "Salam Satu Hati". Furthermore, making an effective organizational structure. The organizational structure created by the company could help the company achieved its vision and mission targets. The next is to prepare the require of the budget to implement the strategy. The budget can include the socialization budget, the procurement of materials and materials budget, technology budget, the labour budget and so on. Today, the role of technology is getting bigger in all areas. Companies should attend technological developments to not far behind competitors. Example: when consumers want to see a motorbike, they must go to the showroom. But with technology and information systems, general information is available on the website and social media. Another important thing is compensation for employees. Employee compensation includes salaries, bonuses, vacation, insurance and so on. Compensation associated with the performance of the employee, so there was no sceptical thing among employees and motivated them to pursue their best. The performance of employee indirectly affected the company's progress.



C.



Strategy Evaluation



After a strategy carried out, an evaluation is needed. It will clarify that the strategy need to improve or not. Evaluation is supposed that the company always implement the right strategy because the situation can change quickly. Measuring strategies performance can be done by comparing the number of sales or by measuring customer satisfaction before and after the executing strategy. Finally, the company should decide to change the strategy that has been running or not. For example, there is a government policy regarding turns on motorcycle lights during the day. AHM helped to change the new product which automatically turns on the headlights.



D.



What is Company Policy and how it helps manager to handle repetitive situations effectively (Give example to simplify your answer)



Company policies can be referred to as detailed guidelines, methods, procedures, sequences, forms, and administrative practices that are made to support and encourage the intended purpose. Company policy is an instrument for strategy implementation. For example, in AHM, it is applied that credit financing or leasing may only take a margin of 510% from the price of the motorbike. So that leasing does not need to ask for approval manager for motorbike loan prices with a predetermined margin.



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Question 2 A. Explain in your own words, why is Company Vision vital for a company? The vision is a guideline or long-term targets of the company, things to be achieved, the level of the business, and the mind of the company. Vision becomes vital for the company because of all the strategies, products, program promotion, employees' mind and stakeholder's mind should be directed to the company's goals. All movements within the company centred on the objective of vision. Example : Astra Honda Motor Company Vision : AHM wants to be the leader of the motorcycle market in Indonesia and become the world class player, by realizing consumer dreams, creating excitement for consumers and contributing to the Indonesian people. AHM has underscored that they have focused on the market of motorcycles, the location is in Indonesia, and want to give something to the society and excitement for consumers. Imagine if that vision just only "AHM wants to be the leader of the market in Indonesia..", that's not the vision because it is too general and make the company even confused the focus to what field, a leader in the market, so the strategy made even will not be effective. Therefore the formulation of the vision is really important in the company because it is the way of all the actions that carried out the company.



B. Effective Mission Statements can arouse positive feelings and emotions of employee, explain with example if necessary. An effective mission statement as much as possible can be suggestive to employees to perform better and realize the established companies vision. If employees feel positively impact, the emotions and performance will increase. The consumers also get the impact services of employees who did with a wholeheartedly. Mission : Creating mobility solutions for society with the best products and services. When the mission of the AHM instilled by the employee and provide the best service, consumers will be satisfied and make repurchases so that the loyal consumer will increase. For example, every showroom Honda motor has the standard of the same service that is the best service. Consumers get good service anywhere, so they not to be confused. It supported corporate to achieve the vision, that becomes the market leader on a motorcycle in Indonesia.



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Question 3 A. How do you find Strengths and Weaknesses in Marketing Business Function of a company? With identifying every resource of the company, such as:  Physical resources Include how the mapping of the location of the company, the equipment, machinery and materials used  Human resources Include how the behavior, experiences, skills, and knowledge of the employees  Organizational resources Include the company's organizational structure, the IT infrastructure, system



B. How do you select which Strengths that you should concentrate on in your SWOT analysis? With determining the situation that is very valuable to the company, has the opportunity and the power so can take advantages. Strategies should be applied to support the aggressive growth policy (Growth oriented strategy). Internal Factors Analysis Strengths High quality of selling products High productivity ability The official workshop and spare parts sales distributed all over Indonesia High product development and innovative Low cost Production Weakness Less attractive promotion Less fashionable product design Less well finishing and precision body The use of imported raw materials Taking a high price TOTAL



Weight



Rating



Score



0,10 0,10



4,0 3,5



0,40 0,35



0,15



4,0



0,60



0,10 3,5 0,05 4,0 Sub-Total



0,35 0,40 2,10



0,10 2,5 0,15 3,0 0,10 2,5 0,05 2,0 0,10 2,5 Sub-Total 1,00



0,25 0,45 0,25 0,10 0,25 1,30 3,40



That matrix show that strengt of AHM give more points than weakness. Overall, internal factors give strong power with 3,40 points. It means that the strenghts on good point because it above three points. So, The company has been able to maintain its strengths, but it does have some weakness that has not been resolved yet.



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C. After you’ve collected company’s SWOT, explain briefly how do you use them to formulate strategies. With collecting stregths and weakness factors to be IFE matrix, opportunities and threats factors to be EFE matrix. Analyzing IFE and EFE matrix to making SO, WO, ST and WT strategy. Where :  SO Strategy It is the strategy of using strengths to take advantage of opportunities  WO Strategy It is the strategy of minimize weakness to take advantage of opportunities  ST Strategy It is the strategy of using strengths to resolve threats  WT Strategy It is the strategy of minimize weakness to avoid threats There is SWOT matrix from 4 strategies:



Opportuinities    



Total population Community trends Export expansion Community demand



Threats     



Intense industrial competition Rupiah exchange rate Public purchasing power Global crisis Natural disasters



Strength



Weakness



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 The design is not fashionable  Expensive spare parts  Lacks precision body  Body material is not good  Less attractive promotions WO STRATEGY 1. Increasing exports to another countries. 2. Increase the trust of Honda Japan Corp. for the supply of raw materials 3. Establish the highest retail price



High product quality High production capability Service and sales outlets are easy to find  Innovative product development SO STRATEGY 1. 2.



Develop high-tech, efficient and fast motorcycle products. Large quantities production.



ST STRATEGY 1. 2. 3.



Creating new innovation (differentiation). Extends the warranty period. Establish prices that are cheaper than competitors. (cost leadership)



WT STRATEGY



1.



2. 3.



Developing product design, to reduce the impression of being less fashionable. Do more attractive promotions. Producing machine in domestic.



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Question 4 Give an appropriate analysis of the following : A. Is Gojek’s Vision a good vision ? Give sufficient explaination! The statement "Improve the structure of transportation in Indonesia, give facilities to the society to carry out their works", it highlights Gojek's vision. The vision meets the characteristics of a good vision, that is one sentence. The measure to achieve that vision is clear (measurable). The vision has a focus clear area (specific). The vision has a target to achieve (achievable). The Gojek's vision is relevant to current conditions (relevancies).



B. What components of mission are included in the Gojek’s Mission? On the Gojek's mission contained elements, such as:  statement of purpose  statement of philosophy  statement of beliefs  statement of business principles  definition of "Gojek business" From the elements, it described the goal and desire what the organization be and who will be served. The missions would be a living document. This mission must be carried out as an integral part of the corporate culture in order to gain huge benefits in the future. It is important to both as the scope of the organization and as decision-making.



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