Strategic Development Process in Two Large Companies in Indonesia

Oni Bibin Bintoro, Institut Teknologi Bandung
Jann Hidajat, Center of Knowledge - Bus. Competitiveness
Utomo Sarjono Putro, Bandung Institute of Technology
Pri Hermawan, Bandung Institute of Technology

ABSTRACT
Strategic development process has been connected to performance in companies (Tapinos et al., 2011; Hart and Banbury, 1994; Miller and Cardinal, 1994; Yusuf and Saffu, 2005). This paper researched the scale and types of strategy tools and Operation Research (OR) tools and techniques used by profitable, large companies in Indonesia. The sample consisted of 22 company executives, each representing a contributor of strategy team at large companies in Indonesia. A self-report questionnaire inquiring on company strategy development process practices was distributed. The data were examined to identify general themes associated with Dyson's (Dyson et al., 2007) seven stage strategy development process and other popular strategy tools and techniques utilized in company strategic planning. The data exposed that these large companies essentially engaged in extensive planning on a proper basis. However, traditional strategy tools and techniques prevalent in strategic management literature were not used in the process. Realistic implications of the contextual nature of companies' strategic development process are discussed.

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Updated 07/09/2013