| Summary: | Strategic Management mentioned in the Business Plan of Utility
Department have not been formed systematically and clearly causing that Utility
Department do not have long term comprehensive strategy. This research is aimed
to analyze and to form strategic formula for Utility Department so that Utility
Department able to competitively compete in the mechanical and electrical
business in Indonesia.
There are 3 steps in strategic analysis in this research namely input stage,
matching stage and decision making stage. Input stage is analyzed by External
Matrix Evaluation (EFE) and Internal Matrix Evaluation (EFI). External Matrix
Evaluation (EFE) consists of opportunity and threat events, while EFI Matrix
consists of strength and weakness. Matching stage is analyzed by TOWS (Threat-
Opportunity-Weakness-Strength) Matrix and SPACE (Strategic Position and
Action Evaluation) Matrix. There are alternatives strategies in the TOWS matrix
namely S-O (Strength-Opportunity) strategy, W-O (Weakness-Opportunity)
strategy, S-T (Strength-Threat) strategy and W-T (Weakness-Threat) strategy.
Analysis of Matrix SPACE is done by parameters of Financial Strength (ST),
Competitive Advantage (CA), Environmental Strength and Industrial Strength
(IS). Analysis by using SPACE Matrix is aimed to determine whether the strategy
would be aggressive, conservative, defensive or competitive. The final stage of
the strategy analysis is decision making by using QSPM (Quantitative Strategic
Planning Matrix)
Strategy analysis as above mentioned resulting in the EFE Matrix value of
3.31 and EFI Matrix of 2.77. The value of EFE indicated that Utility Department
already optimum in his strategy to utilized his opportunity or to avoid his threat,
and value of EFI indicated that department already above the average in his
strategy to use his strength or to overcome his weakness. Analysis by SPACE
Matrix recommends Utility Department to aggressively conduct his strategy. To
determine which alternatives strategies in TOWS Matrix will be chosen then
QSPM Matrix is adopted. Results of QSPM Matrix analysis are value of S-O is
4.07, W-O is 3.80, S-T is 3.69 and W-T is 2.66. By this result then S-O strategy
will be the preferred strategy to choose. Alternatives strategies in S-O are to
expand the business in the investment oil and gas business, developing continuous
strategic partnership in order to award the tender, to improve market intelligent so
that tender preparation could be establish in advance, to get strategic and high
tech project and penetrate the potential market by low cost leadership.
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