Corporate Level Strategy PT. Kalbe Farma, Tbk

Abstract

Abstract

A corporate level strategy is expected to help the firm earn above average returns by creating value. Some suggest that few corporate level strategies actually create value. The financial crisis, which blossomed from the United States into a global economic crisis, was a novel challenge faced by Kalbe in 2010. A combination of declining consumer purchasing power against escalating prices of raw materials, packaging, distribution costs (as the result of high oil prices), chemical substances and other commodities, and exacerbated by the depreciation of the Indonesian Rupiah from October 2010 – all this ultimately resulting in a compression in Kalbe’s gross margin, from 50.7% in 2009 to 48.3% in 2010. To address such a challenge, Kalbe responded by implementing measures to renew its strategies to promote efficiency as one of core emphases. This is to be implemented by streamlining the management of the supply chain and controlling operational expenses, boosting employee productivity and upgrading the composition of products sold. Kalbe will also continuously prioritize product innovation, in its quest to accelerate growth.

Keywords : Corporate Level Strategy, Strategy