Steinway Strategic Organization
STEINWAY’S STRATEGIC ORIENTATION
Dwiyani Rahmawati Marvin Mahadharma Aldira G. Meyer Tenny Oktarina
Company Overview
The finest piano maker in the world
1853 – founded by the Steinway family 1995 – bought by Messina & Kirkland 1996 – become public company Piano is division of Steinway Musical Instruments Company
Products
Upright piano
Grand Piano
Market share over 80%
Brand as most valuable assets
2% of all keyboard unit sales in US profit 35%
Minto Pyramid Analysis
UDR
• Financial performance below industry averages • Craftspeople are coverted by competitor & set up own store
IDR
?
HOW
• Increasing sales • Keeping craftspeople
DIAGNOSING: - external environment - industry structure - technology used - measurement system - HR system
CREATE STRATEGY
Model for Diagnosing Systems at Organizational Level
Inputs Design Components Outputs
Technology
General Environmen t
Organization Effectiveness
Strategy
Structure
Industry Structure
HR Systems
Measurement Systems
Does strategic orientation fit with Inputs? Strategy – Environment Fitness
Do components align with each other? Components Alignment
External Environment Analysis
Steinway’s external environment is only moderately uncertain and not very complex.
Political Legal Different regulations and requirement in each country of manufacturing & sales distribution Economic downturn in 2002, overall industry sales should also drop Closely monitoring countries’ political condition Need to exercise caution in overall activities Should be sensitive to the latest trend
Economic
Social
Trends in music and display are constantly changing
Breakthrough in design, materials, and construction technology Current product requirement is considered wasteful by enviromentalist
Technological Environmental
Choose to use classics method of production process
Industry Structure
Steinway’s industry is moderately competitive. Threat of entry
Dwiyani Rahmawati Marvin Mahadharma Aldira G. Meyer Tenny Oktarina
Company Overview
The finest piano maker in the world
1853 – founded by the Steinway family 1995 – bought by Messina & Kirkland 1996 – become public company Piano is division of Steinway Musical Instruments Company
Products
Upright piano
Grand Piano
Market share over 80%
Brand as most valuable assets
2% of all keyboard unit sales in US profit 35%
Minto Pyramid Analysis
UDR
• Financial performance below industry averages • Craftspeople are coverted by competitor & set up own store
IDR
?
HOW
• Increasing sales • Keeping craftspeople
DIAGNOSING: - external environment - industry structure - technology used - measurement system - HR system
CREATE STRATEGY
Model for Diagnosing Systems at Organizational Level
Inputs Design Components Outputs
Technology
General Environmen t
Organization Effectiveness
Strategy
Structure
Industry Structure
HR Systems
Measurement Systems
Does strategic orientation fit with Inputs? Strategy – Environment Fitness
Do components align with each other? Components Alignment
External Environment Analysis
Steinway’s external environment is only moderately uncertain and not very complex.
Political Legal Different regulations and requirement in each country of manufacturing & sales distribution Economic downturn in 2002, overall industry sales should also drop Closely monitoring countries’ political condition Need to exercise caution in overall activities Should be sensitive to the latest trend
Economic
Social
Trends in music and display are constantly changing
Breakthrough in design, materials, and construction technology Current product requirement is considered wasteful by enviromentalist
Technological Environmental
Choose to use classics method of production process
Industry Structure
Steinway’s industry is moderately competitive. Threat of entry