Business Strategy Formulation By Shareholders and Company Management using The Analytical Network Process (ANP)

Authors

  • Faizal Faizal Pancasila University
  • Achsanul Qosasi Pancasila University
  • Antonius W. Sumarlin Universitas Pancasila
  • Erwin Permana Bina Nusantara University
  • Gatot Hendro Prakosa Bina Nusantara University
  • Indriana Indriana Bina Nusantara University
  • Glory Aguzman Bina Nusantara University

DOI:

https://doi.org/10.21512/bbr.v7i3.1494

Keywords:

business strategy, strategy formulation, shareholders, company management, Analytical Network Process, ANP

Abstract

This research aimed to identify the business strategy formulation by the shareholders and the management of the company. Ten companies were selected to be the objects of this research. Those companies were the information technology, telecommunication, printing, mining, construction and chemical companies in Indonesia. The research was conducted by using the Analytical Network Process (ANP) and considering the chosen respondents as the decision makers (experts) of those companies. The respondents were chosen by using the non-probabilitty sampling method. The result shows that the roles of the company managements are considered m ore influental (0,57143) than the roles of the shareholders (0,28571). From the output of stakeholder’s condition, the best-stratified priority strategies are differentiation (0,600515), cost of leadership (0,230754) and focus (0,168731).

Author Biographies

Faizal Faizal, Pancasila University

Magister Manajemen Sekolah Pascasarjana

Achsanul Qosasi, Pancasila University

Magister Manajemen Sekolah Pascasarjana

Antonius W. Sumarlin, Universitas Pancasila

Magister Manajemen Sekolah Pascasarjana

Erwin Permana, Bina Nusantara University

Binus Entrepreneurship Center

Gatot Hendro Prakosa, Bina Nusantara University

Binus Entrepreneurship Center

Indriana Indriana, Bina Nusantara University

Binus Entrepreneurship Center

Glory Aguzman, Bina Nusantara University

Binus Entrepreneurship Center

References

Azis, I. J. (2003, November). Analytic Network Process with feedback influence: A new approach to impact study. In Paper for Seminar Organized by Department of Urban and Regional Planning, University of Illinois at Urbana-Campaign.

Bai, G. (2013). How do board size and occupational background of directors influence social performance in for-profit and non-profit organizations? Evidence from California hospitals. Journal of Business Ethics, 118(1), 171-187. doi: 10.1007/s10551-012-1578-x

David, F. R. (2011). Strategic management - Concepts and cases. New York: Prentice Hall.

Edelman, L. F., Brush, C. G., Manolova, T. S., & Greene, P. G. (2010). Minority nascent entrepreneurs. Journal of Small Business Management, 48(2), 174–196. doi: 10.1111/j.1540-627X.2010.00291.x

Kaplan, R. S., & Norton, D. P. (1996). The balanced scorecard: Translating strategy into action.Massachusetts: Harvard Business School Press.

Millet-reyes, B., & Zhao, R. (2010). A comparison between one-tier and two-tier board structures in France. Journal of International Financial Management & Accounting, 21(3), 279-310

Nickols, F. (2000). Strategy is... alot of things. Distance Consulting, 297-311.

Ntim, C. G., Opong, K. K., & Danbolt, J. (2012). The relative value relevance of shareholder versus stakeholder corporate governance disclosure policy reforms in South Africa. Corporate Governance, 20(1), 84–105. doi: 10.1111/j.1467-8683.2011.00891.x

Porter, M. E. (1990). New global strategies for competitive advantage. Planning Review, 18(3), 4-14. doi: 10.1108/eb054287

Price, R., Roman, F. J., & Rountree, B. (2011). The impact of governance reform on performance and transparency. Journal of Financial Economics, 99(1), 76–96. doi: 10.1016/j.jfineco.2010.08.005

Saaty, T. L. (2003). Decision-making with the AHP: Why is the principal eigenvector necessary. European Journal of Operational Research, 145(1), 85–91. doi: 10.1016/S0377-2217(02)00227-8

Saaty, T. L. (2008). Decision making with the analytic hierarchy process. International Journal of Services Sciences, 1(1), 83. doi: 10.1504/IJSSCI.2008.017590

Siregar, S. V., & Bachtiar, Y. (2010). Corporate social reporting: Empirical evidence from Indonesia stock exchange. International Journal of Islamic and Middle Eastern Finance and Management, 3(3), 241–252. doi: 10.1108/17538391011072435

Wheelen, T., & Hunger, D. (2011). Strategic management and business policy - toward global sustainability. New York: Prentice Hall

Downloads

Published

2016-11-30
Abstract 800  .
PDF downloaded 273  .