Strategic Business Unit Level Research Articles

JNE Gaplek Sales Counter Competitive Strategy to Increase the Profit Share of the Partnership

The shift in people's shopping behavior has an impact on economic growth in the logistics sector. This has resulted in a high level of competition in the logistics industry. One of the logistics companies in Indonesia is JNE which has many agents/sales counters. JNE Gaplek sales counter is one of the agents owned by JNE in the South Tangerang area. JNE Gaplek sales counter have an image as the head office of JNE South Tangerang representatives. However, high competition resulted in a decrease in profit share at JNE Gaplek sales counter. This study aims to analyze customer satisfaction, internal and external factors in JNE Gaplek sales counter and to formulate competitive strategies for freight forwarding services. The scope of this research is focused on the level of competition at the strategic business unit level. This study uses qualitative and quantitative descriptive approach. The analysis techniques used in this research are Importance Performance Analysis, Internal Factor Evaluation, External Factor Evaluation, Porters five forces, and Internal-External matrix. In the IFE analysis, it was found that the JNE Gaplek sales counter has the highest strength is a strategic location. Meanwhile, the highest threat is high customer loyalty to competitor companies. The result of IE matrix analysis shows that the JNE Gaplek sales counter is in quadrant V (hold and maintain strategy) which produces the following strategies: market penetration strategy and product development strategy. This research is expected to be a reference and comparison for further research and can be applied by JNE Gaplek sales counter.

Linking Strategic Management and Corporate Entrepreneurship for Firm Value Creation: A Developing Country Perspective

ABSTRACT The ever-increasing global business environment dynamism, change, and heterogeneity require a flexible, proactive, innovative, and aggressive managerial approach. The quest for such approaches settle strategic management and corporate entrepreneurship as a new firm‐level phenomenon that deserves scholarly attention. The subtle interaction of strategic management & corporate entrepreneurship has the potential of boosting firms’ capability to recognize, discover, and create entrepreneurial opportunities and develop them toward sustainable competitive advantages. The study followed an interpretive research philosophy, both exploratory and explanatory designs, quantitative approach, and survey method. The perceptions of corporate and strategic business unit level managers of 104 Ethiopian food processing firms established the study setting. We employed both exploratory and confirmatory factor analyses to identify a set of latent constructs underlying battery of measured variables and test if data fit the hypothesized measurement model, respectively. Results signpost locus of planning and strategic control influencing corporate entrepreneurship while environmental scanning did not. Moreover, planning flexibility, planning horizon, and financial control influenced only certain aspects of corporate entrepreneurship. We conclude a weak relationship between strategic management practice and intra-organizational entrepreneurship in conservative firms with little or no radical departure from historical and predominant structural patterns, characterized by superfluous, unplanned, and routine decisions.

Competititve strategy of taxi company in facing environmental changes

This study aims to analyze the satisfaction of taxi passengers, the internal and external factors in PT XYZ and formulate the competitive strategy with conventional taxi competitor and online taxi companies. The scope of this research is specifically focused on the competitive strategy in strategic business unit level. This study uses quantitative descriptive approach. The data analysis techniques used are IFE, EFE, IE, and QSPM. The result of this study on the analysis of EFE, PT XYZ shows that the highest strength is on a strategic distribution network of taxi in big cities. Meanwhile, the highest threats are standardization of tariff, number of taxi, and minimum identity of online taxi. Furthermore, IE matrix analysis shows that PT XYZ is in quadrant I (grow and build strategy). The decision making stage based on QSPM matrix has the order of strategic priority as follows: forward integration, backward integration, horizontal integration, product development, market penetration, and market development.

Strategi Bersaing Perusahaan Taksi Dalam Menghadapi Perubahan Lingkungan

<p>This study aimed to analyze the satisfaction of taxi passengers, analyze the internal and external factors in PT A and formulate the competitive strategy with conventional taxi competitor and online taxi companies. The scope og this research is specifically focused on the competitive staretgy at strategic business unit level. This study is uses quantitative and quantitative descriptive approach. Data analysis techniques used are porter five score model, IFE, EFE, IE and QSPM. The results of this study on the analysis of IFE, PT A shows that the highest strength is on a strong, strategic distribution network of taxi in big cities. Meanwhile, the highest threat is standardization of tariff, number of taxi, and minimum identify of online taxi. Furthermore, IE matrix analysis shows that PT A is in quadrant I (grow and build strategy). The decision making stage with QSPM matrix has the order of strategic prority as follows: forward integration, backward integration, horizontal integration, product development, market penetration, and market development.<br />Keywords: EFE, IFE, IPA, QSPM, competitive strategy</p>

Cognitive Frames, Learning Mechanisms, and Innovation Ambidexterity

While there is general agreement about the need for firms to both exploit and explore, there has been little empirical research that has focused on understanding how firms can manage the tension that arises from engaging in these two activities. Some writers have theorized that the cognitive frames that individuals, teams, and organizations possess may play an important role in managing these tensions and fostering ambidextrous outcomes. However, a review of the extant literature on cognition and cognitive frames reveals that their role in managing this tension has not been examined at any level, including the strategic business unit (SBU) level. This paper has taken a first step in providing empirical validation for the notion that ambidextrous cognitive frames play an important role in generating innovation ambidexterity.To test the hypotheses, primary data were gathered from 178 Taiwanese companies (190 SBUs) operating in chemicals, pharmaceuticals, financial management, mechanical engineering, and electronic engineering sectors. Questionnaires were administered to senior level managers and middle‐level managers in each SBU. Because the theory and hypotheses of this study require an SBU level of analysis, respondents' individual scores on each variable were aggregated, and the SBU mean responses for each question were computed. Multiple regression analyses were performed to test the hypotheses.Different cognitive styles were found to impact different types of learning. An independent cognitive style was found to have a positive impact on intra‐SBU learning, while a reflection cognitive style had a positive impact on inter‐SBU learning. More importantly, ambidextrous cognitive frames, i.e., the combination of these two styles, were found to indirectly foster innovation ambidexterity by facilitating intra‐SBU learning and inter‐SBU learning simultaneously.These results suggest that managing the tension that arises from exploiting and exploring begins with the presence of dual cognitive styles. Ambidextrous cognitive frames enable SBUs to cognitively juxtapose contradictions and tensions in ways that allow them to “embrace” rather than avoid or deny these tensions. These findings provide validation for viewing SBUs as separate, holistic entities that collaboratively shape their cognitive frames. And it is these cognitive frames that enable their information processing which in turn causes the SBU to act or perform in a distinctive or characteristic manner. Additionally, these findings suggest that management teams may need to adopt ambidextrous cognitive frames that broaden the “problem space” to include multiple sources of learning that emanate from inside, as well as outside of the SBU or organization.

The Evaluation of the Entrepreneurial Formula

The Evaluation of the Entrepreneurial Formula

An Empirical Investigation into the Antecedents of Knowledge Dissemination at the Strategic Business Unit Level

Knowledge dissemination is of crucial importance for the strategic planning in new product development. Many new ideas stem from recombination of previously successful, disseminated actions, and knowledge dissemination offers a clear overview of market needs, technology developments, and competitors' actions. Moreover, in dynamic environments, where strategic planning has to be added by some kind of improvisation, knowledge dissemination leads to a high quality of improvisation. It leads to a quick awareness of external or internal surprises, gives an opportunity to learn quickly from the past, and compensates for a coordination mechanism instead of planning.The dissemination of knowledge does not always happen spontaneously. Especially, people with a technical background often are highly individualistic and do not disseminate knowledge naturally. So, this must be fostered by the organization. In management research, particularly on technology and innovation management, many facilitating factors have been identified that enhance communication. Intuitively, they also would seem useful in enhancing knowledge dissemination; however, these factors have not been tested empirically for this specific use. Research on knowledge and its management has not given much attention to the way knowledge in an organization is disseminated and the factors that can facilitate it. If such factors are mentioned, they are not tested empirically and their relative impact is not addressed.In this study we identified 17 important factors in enhancing knowledge dissemination and validated 10 of these factors empirically and determined their relative impact. We focused on technological knowledge in new product development—not on the project level but on the level of the strategic business unit.The field research comprised three parts. In the first step, we conducted in‐depth interviews with research and development (R&D) managers and their supervisors to select the most important potential facilitating factors. In the second step, in‐depth interviews with senior executives, information technology (IT) officers, and R&D experts were conducted to determine whether the constructs regarding knowledge dissemination and the potential facilitating factors had face validity. Finally, the potential factors were tested empirically in 277 U.S. high‐technology firms at the strategic business unit (SBU) level. It was our intention to examine potential factors beyond the level of the particular project, so we looked for antecedents in an SBU environment with a longer‐term impact.Our results indicate that individual commitment to the firm is very important to facilitate knowledge dissemination as well as organizational crises and risk‐taking behavior. Individual commitment was found to have the greatest impact on the level of knowledge dissemination, followed by organizational crisis and risk‐taking behavior. It is thus up to management to find new ways to control individual commitment. More research, however, is required to better understand the ways by which managerial interventions stimulates knowledge dissemination.

Integrating Financial And Non-Financial Performance Measures: The State Of The Art And Research Opportunities

This paper aims to provide a literature review of the need for integrating financial and non-financial performance measures. More specifically, it aims to provide a framework for the adoption of the balanced scorecard (BSC) at strategic business unit level (SBUs). Different aspects of BSC are identified. They include: integrating financial and non-financial performance measures; allocating the financial and non-financial performance measures to the four perspectives (BSC usage); examining the relative weight placed to the four perspectives; questioning the purpose of using BSC. In addition, the management accounting literature provides many contingent variables influencing the different aspects of BSC. They include: the role of consulting firms; organisation size; perceived environmental uncertainty; business unit strategy; product life-cycle; management style; other factors including national and organisational culture. Following the ideas of the contingency theory relating to the proper fit between contingent variables, aspects of BSC and the effectiveness of BSC, several measures of effectiveness are presented. Drawing off the literature and the suggested framework of the adoption of BSC, several areas for future research are identified. The first is to develop an overall measure that includes the different aspects of BSC. The second is to examine the direct and indirect relationship between the contingent variables and the aspects of BSC. The third is to explain why subjective and objective measures of effectiveness of BSC may agree or disagree. The final area is to examine the relationship between BSC for a given business unit with other BSCs of other business units and that of higher organisational level.

Designing and aligning an HR system

This article reports the results of a study conducted in the wholesale banking arm of a major international financial institution in Ireland. This took a multi‐level perspective in exploring the construction of the HR system at group, divisional and strategic business unit (SBU) levels within the firm. The findings suggest that it is critical to consider the level of analysis in both the construction of theHR system and in its operation at different levels within the multi‐divisional firm. The research found that it is at SBU level that a coherent HR system is most likely to emerge, as at this level appropriate processes can be adopted to implement HR policies, practices and philosophies. However, the negotiations and interpretations of HR practice that dominate traditional divisional/business unit arrangements may be detrimental to theemergence of a coherent HRsystem.

Interactions between Marketing and Quality at the SBU Level: Influences and Outcomes

The management of quality and development of effective cross-functional cooperation have assumed a new strategic importance over the past decade. However, many companies have reported that quality strategies have failed to deliver anticipated performance benefits and that ineffective interfunctional relationships may be to blame. This study explores marketing-quality interfunctional relationships as a potential source of quality strategy implementation failure at the strategic business unit (SBU) level. This study focuses on interdepartmental connectedness, communication and conflict between marketing and quality, and the antecedents and consequences of these dimensions of interfunctional interaction. Using data from a pooled response mail survey, the results suggest that marketing-quality interactions are associated with senior management quality leadership, strategic quality planning process, and control system characteristics. Interfunctional interactions between marketing and quality are found to be only weakly related to relative quality, market performance, and financial performance outcomes.

Competitive Marketing Behavior in Industrial Markets

The authors outline a conceptual framework for analyzing differences in competitive marketing behavior of businesses in established industrial markets. They explicitly distinguish between retaliatory and cooperative marketing behavior. The structural characteristics of the served markets and the competitive positions of businesses are postulated to affect the nature and likelihood of retaliatory and cooperative behavior with respect to price and sales force expenditures. The authors specify different models explaining these dimensions of competitive marketing behavior at the strategic business unit level and test their hypotheses by estimating the various competitive behavior models using relevant data obtained from the PIMS (Profit Impact of Market Strategies) Program. The empirical results support several theoretical arguments and provide insights into the determinants of competitive marketing behavior in industrial markets.

The sustainable growth model: A tool for evaluating the financial feasibility of market share strategies

AbstractMarket share objectives constitute a key element of a firm's corporate strategy. Market share strategy decisions—to build, maintain, or harvest share—are generally based on a careful consideration of the long‐term and short‐term profitability and cash flow implications of such decisions. The product sales growth rate and capacity expansion implications of share building strategies, the sustainability of implied sales growth targets and its consistency with the established financial policies and objectives of the firm are the subject of this report. The sustainable growth model outlined provides a framework for evaluating the financial feasibility of sales growth objectives at the strategic business unit level and the firm level, from the standpoint of expected return on sales, investment requirements per dollar of sales, target capital structure and the dividend policy of the firm.