The Rhythm of Strategy

A Corporate Biography of the Salim Group of Indonesia

Marleen Dieleman

The Rhythm of Strategy

Marleen Dieleman

Distributed for Amsterdam University Press

205 pages | 6-1/4 x 9-1/4 | © 2007
Paper $39.50 ISBN: 9789053560334 Published February 2008 For sale only in the United States, its dependencies, the Philippines, and Canada
The Rhythm of Strategy provides a richly documented analysis of the Salim Group, one of the largest family conglomerates in Southeast Asia. Set up by Liem Sioe Liong, a Chinese emigrant, the Salim Group evolved from a small trading venture in colonial Java into one of the largest diversified businesses on the Asian continent. While the Salim Group is generally reluctant to provide information on its strategy to the general public, this volume proposes that the conglomerate’s strategy oscillates between a business model built on connections and a professional model adapted to markets. Dismissing the view that the group is a typical Chinese ethnic firm—in which the cultural values of the founding family influences corporate behavior—The Rhythm of Strategy argues that the group’s strategy made sense in the evolving institutional context of Indonesia, which is characterized by high transaction costs, corruption, political risk, and ample business opportunities to cater to a large and rapidly growing consumer base.


List of Tables

List of Figures


1          Introduction


2          The Birth of a Conglomerate


3          The Midas Touch

4          Fire-Fighting

5          Axis of Opportunity

6          Evolution of the Salim Group Strategy

7          Conclusions

Annex 1          Sources

Annex 2          Time Series Analysis of Business Events

Annex 3          Overview of Salim Group Activities

Annex 4          Salim Group Executives







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