The Indonesian Journal of Business Administration
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Proposed Financial Strategy of Paid Up Capital Requirement for Bank Sumsel Babel Syariah's Spin Off in 2020
No full textAbstract. Indonesia Banking Act No. 21 issued on 16 July 2008, and Bank Indonesia Regulation No. 11/10/PBI/2009 or known as PBI No.11 regarding Sharia Business Unit enacted on 19 March 2009. Both regulations require all conventional banks which owned Sharia Business Unit (UUS) to spin off their UUS becoming general Islamic Bank or known as Bank Umum Syariah (BUS). Bank Sumsel Babel that has Sharia Business Unit called Bank Sumsel Babel Syariah is also no exception in these regulations. They have to obey the rules and doing spin off at least in 2023.In 2011 Bank Sumsel Babel had already gave a proposal to Bank Indonesia. They already arranged the the scenario of paid up capital. In meantime there are a lot of factors affected Bank Sumsel Babel operation. They just only could gather 232 Billion up till 2014, this lead Bank Sumsel Babel Syariah being struggle with their own plan to do spin off in 2020. In order to find out the solution, the writer of this thesis analyse the available options for Bank Sumsel Babel to get additional paid up capital from various sources. Based on the analyses and some considerations the best option for Bank Sumsel Babel is doing IPO about 25% of it shares to public with totalKeywords: international expansion, market growth strategy, lubricant market, passenger cars and pickup trucks sectors, flanking strategy, Hambrick and Fredrickson’s framework of strategy
Formulating Growth Strategy for Carissa Beauty Clinic
No full textAbstract. Trend of beauty industry is growing rapidly in Indonesia. Now, the number of beauty clinics business have reached hundred of thousands. Other interesting fact that should be known about beauty clinic business is the majority of their customers are women. Carissa Beauty Clinic, as a new player in the industry of beauty clinic, saw a business opportunity to serve the women that are concerned about their skin and body health.The purpose of this final project is to provide suitable strategies for Carissa Beauty Clinic in corporate, business and functional level of the company in order to achieve their goals grew their business and maintain its existence. In addition to the increasing competition in the beauty clinic business, it indirectly requires any beauty clinics to have strategy that appeals to customers and provide the best service to satisfy customers. Methodology in this final project is by evaluating the external and internal environment in order to get the company’s strength, weakness, opportunity, and threat or SWOT. From the SWOT, corporate strategy can be created using TOWS matrix. The building of the TOWS matrix is supported by IFAS and EFAS table. After conducting analysis of both internal and external to the company, still many obstacles or barriers facing company such as competition is high in the beauty clinic business, replacement products that sold freely on the market, human resource are still weak, incomplete clinical infrastructure, marketing strategies are not effective, and lack of ability of the company to establish a relationship with customers.Strategy recommendation as a solution to Carissa Beauty Clinic is to improve the internal barriers faced by the company such as improve service to customers and maintain the quality of service, creating products and latest innovative treatment program, strengthening the organizational structure of the company, information technology applications for operational activities, using the media for promotional activities and information for costumers, and start making CSR (Corporate Social Responsibility) as establishment of brand image in the community. This strategy should be monitored and assessed as very influential for the condition of the company in the future. For that measurement strategies should be conducted to determine whether the strategy can meet the company's objectives so as to maintain a presence and is able to grow any further.Keywords: competition, beauty clinic business, growth strateg
Stop Loss Order Performance Analysis Based on Value at Risk Using EGARCH (1,1) Model in EUR/USD Forex Trading
No full textAbstract.In forex trading, price movement can not be predicted and can be against what traders think. Loss is unevitable for traders, especially traders that use margin and leverage. Scalping is one of trading styles in forex market. Scalping style depends on the volume of transaction in forex trading. Scalping really depends on the accuracy of trading strategies in generating trading signal. Sometimes false signal occurs and to reduce the loss in trading, stop loss order may be an alternative to reduce the loss. This research\ emphasizes in determining stop loss order based on Value-at-Risk (VaR) in scalping trading style using moving averages cross over. 4 types of moving averages ; simple moving averages (SMA), linear weighted moving averages (LWMA), smoothed moving average (SMMA), and exponential moving average (EMA); are used to test how good VaR can be used as stop loss order. From trading simulation using 17785 EUR/USD data from December 2, 2013 until February, 28 2014, all of moving averages trading strategies may cause 38.6% average loss from beginning balance.VaR depends on the variance. 2 kinds of variance, conditional and unconditional, will be calculated and compared. Conditional variance calculated based on EGARCH (1,1) model based on 17785 EUR/USD data from December 2, 2013 until February, 28 2014 in 5 minutes time frame. Unconditional variance calculated based on the position of trading. From in-sample trading simulation, by using stop loss order based on VaR using EGARCH (1,1), the end balance will only have 15.08% average loss compare to 38.6% average loss without using any stop loss order. Using unconditional VaR as stop loss order will generate 31.84% average loss.Backtest conducted to test the performance of EGARCH (1,1) model as the basis in VaR calculation. Backtest conducted using 1000 period of EUR/USD data from March, 3 2014 until March, 6 2014 in 5 minutes time frame. From backtest trading simulation, stop loss order using VaR based on EGARCH (1,1) can reduce the loss to 1.515% from beginning balance from 4.785% loss when no stop loss order used averaged for all moving averages trading strategy. Unconditional VaR as stop loss order can only reduce the loss to 1.73% from beginning balance. It can be concluded that VaR based on EGARCH (1,1) can be used as stop loss order to reduce the loss occured during trading. To implement this model, it is recommended that this concept need to be combined with “Expert Advisor†to reduce the time needed in calculation.Keywords: Value-at-Risk (VaR), EGARCH, Stop Loss Order, Forex TradingÂ
Expansion Strategy of PT Telekomunikasi Indonesia Tbk Through ITS Subsidiary Company (case study: Acquisition of Tiphone by Pins)
No full textAbstract.The transformation of ICT industry was performed in order to avoid the decreasing company’s profit due to dissatisfaction of costumer. For instance, PT Telekomunikasi Indonesia (Telkom) has changed the business model from infocom (information and communication) became TIMES (Telecommunication, Information, Media, Edutainment and Services). One of the strategies of diversification is performed acquisition with company who has positive synergy and in October 2014, Telkom officially acquire Tiphone through its subsidiary which is PINS for 25%. The analysis shown that the Telecommunication Industry in Indonesia have been entered the phase of mature business. To keep sustain in this condition, Telkom has a plan to create an ICT ecosystem in its group. Therefore, Telkom want to acquire Tiphone in order to develop its business in device sector. Telkom estimate that Tiphone is a compromise company to be acquired since Tiphone has increasing gross profit margin, EBIT margin and Net Income margin every year and has CAGR as much as 19%, besides Tiphone also produce the low price cellular phone.Valuation of Discounted Cash Flow shows that the acquisition price of Tiphone is 1.52 trillion but PT PINS which is Telkom’s subsidiary company, acquire Tiphone only for 1.39 trillion which is undervalued. Moreover, Telkom and Tiphone have a positive synergy, reflected by the performance between 2 companies in cooperating of the migration process of flexi users into Telkomsel users. In this Final project, proposed that Tiphone should focus in produce Smartphone than feature phone. Thus, Tiphone can provide the Smartphone for flexi user in migration process. .Keywords: Expansion, Acquisition, Device, Discounted Cash Flow Analysi
Business Model and Strategy Development of ABC Groundwater Drilling
No full textAbstract – In 2014, economic growth in Indonesia is around 5% while property sector is growing by 10%. Property sector growth is an opportunity for groundwater drilling companies such as ABC Groundwater Drilling since every property needs clean water. It should encounter numerous competitors by offering valuable services to customers. In 2015, ABC Groundwater Drilling is targeting to increase sales revenue and job volume by 40%. Company should creating a lot of improvements to objectify target so that customers would be well perceived the value to be created and delivered through business model canvas development. Purpose of this research is to develop ABC Groundwater Drilling business model and strategy. Conceptual framework is used as a guideline in this research which start from describe problem identification; define research question; analyze current general environment through Resource Based View, PESTEL, Industry Analysis, Business Model Canvas, and SWOT Analysis; conduct Strategy Diamond Model based on research implementation through Analytic Hierarchy Process (AHP) method; formulate appropriate strategy; and implement formulated strategy. Quantitative and qualitative methods are applied in data collection. In-depth interview and survey by using questionnaire are conducted to collect primary data and secondary data is collected from strategic management and related theories. Based on AHP method, ABC Groundwater Drilling should improve service attribute or criteria continuously to keep performed over competitors. Criteria to be improved by company are after sales service, driller expertise, consulting services, and accuracy. Company should focus on Strategy Diamond Model Analysis which concluded (i) arena: house development projects outside prime locations in Bandung require clean water; (ii) vehicles: internal development, strategic partnership, internal process improvement, and marketing campaign; (iii) differentiators are after sales service, driller expertise, consulting services, and accuracy; (iv) staging: starts from internal and external training, procedure renewal, job segregation, partnership approach, internal evaluation, and brand strengthening; and (v) economic logic: obtained through developed employee, improved internal process, technology advancement utilization, and expansion. Keywords: Business Model Canvas, Business Strategy, Groundwater Drilling, Strategy Diamond Mode
New Business Model Generation of E-Money for Online Payment: A Case Study of XL Tunai an E-Money Product of PT XL Axiata, Tbk
No full textAbstract.As second largest Mobile Network Operator in Indonesia, with over 65 million subscriber base, PT XL Axiata Tbk (XL) intends to strengthen its position in the market, by introducing a diversified service through offering of electronic money (e-money) as payment method, named as XL Tunai. After over two years since the service was launched on 2012, both of adoption and usage rate is still below initial expectation. Although there is some argument that the business does not well take off due to some constraints from the regulations side, it is believed that customers do not find strong reason to use of XL Tunai as payment method.This research is intended to analyze, formulate and suggest implementation of strategies that are realized through new business models for the e-money services with specific application as online payment method. A conceptual framework used to perform this research derives from combination of strategy tools namely: PEST, Porter’s Five Forces, VRIO Framework, Value Chain Analysis, SWOT analysis, that are used to analyze the business case, while strategy formulation is developed using TOWS Matrix, business and corporate level strategy formulation with main focus of diversification framework adopted from Hamel-Prahalad’s core competencies and market matrix. Four generated business models referring to the diversification roadmap are then interpreted in nine business models building blocks written on Osterwalder – Pigneur’s Business Model Canvas.Keywords: business model generation, business model canvas, e-mone
Direct Production Cost Improvements at PT. Freeport Indonesia's Concentrating Division
No full textAbstractIn an perfect competition market such as one within the mining and metals industry, gaining competitive advantage through production efficiency and cost efficiency is crucial. At PT Freeport Indonesia’s Concentrating division, where the beneficiation process from ore to concentrate is being done, cost control is a big driver to ensure maximum profitability for the company. Unfortunately, it has been identified that from 2009 to 2013, direct production cost within the division has increased by 29.3% at a time where production had declined by 26% and metal prices were also on the decline. A simple Pareto chart analysis was able to identify major cost elemet contributors to the increased expenses. Further detailed analysis using Failure Mode and Effects Analysis (FMEA) within a Focus-Group-Discussion (FGD) forum was done to identify deficiencies within the business processes related to those major contributors. Eight root causes of process deficiencies were identified through this analysis, which cumulatively contained an opportunity to save USD11.2million per year on cost. Eight concurrent solutions were proposed to solve these business process deficiencies, which were focused on fixing business processes to ensure systematic solutions are applied for sustainable results long into the future.Keywords: Concentrator Direct Production Cost, FMEA for Cost, Pareto Analysis for Cost, Grinding Balls CostÂ
Strategy Formulation for Start-up and Small Business Travel Agency in Bandung
No full textAbstract—the number of travel agencies were increasing align with the increasing number of tourists in Indonesia. In 2012, there were 3,342 of travel agents in Indonesia, where 200 of them are located in West Java Province (APHI, 2012). Several big players of travel agent are primarily making travel arrangement for business trip and company tours. There are also small business player, including start up, where most of them are categorize as the majority of travel agent in Indonesia. They also offer travel arrangement except they are most likely targeting the retail customer. To sustain in the business, a start-up and small business travel agency should formulate a strategy to differentiate their products and services with other competitors. The study case was taken in Bandung city, where three travel agents selected. They are Prima Riau Holiday (PRH) Bandung, Seruni Tour & Travel and Fly Bandung. Research gathering was based on secondary data and one on one interview with management of the travel agents. Kepner-Tregoe method was used to analyze the situation, problem and decision. In formulating strategy, the business model was used to create the 9 building blocks from value proposition to cost structure and revenue stream. The business model analysis were based on internal and external environment analytical score review of Strategic Factor Analysis Summary (SFAS). Based on the SFAS scoring, travel agent should become specialist for tour or travel package, where they could provide level 3.0 of tourism marketing and collaborate with 9 (nine) center of creative industry in Bandung City. In the implementation plan, the formulated strategy should be implemented in each functional level, from operational to marketing plan.  Keywords: tourism, start-up, business strateg
Factors Affecting Operating Standards of Crushers at PT KPC (Case Study on Increasing Crusher Reliability)
No full textAbstract. This study was conducted to examine factors affecting operating standards of crusher PT. Kaltim Prima Coal so that reliability can be improved. There are two factors that influence that internal factors which include activities of operational, maintenance, and engineering as well as external factors related to coal chain from mining activities until coal sales.The methodology used in this project is a quantitative analysis by using econometrics and statistics. The data used is primary data includes physical availability, usage, cost, and delays that occurs in the crusher during the last five years (2010-2014). Furthermore categorical data obtained through a survey of 60 respondents from the staff and crew operation, maintenance and engineering that are directly related to the crusher. Categorical data is processed into a dataset using the method of successive intervals (MSI). Data interval of four variables (operating standards, availability, operating cost, and technology Obsolescence) made mathematical modelling with multiple linear regression method through SPSS version 22 for analysis of internal factors of crusher. Base on results of multiple linear regression method, internal factors crusher result that 8.6% operating standards of crusher is affected by variables of availability, operating cost and technology obsolescence. In the calculation of the probability figures obtained Anova 0.046<0.05 so that the effect of independent variables on the dependent variable is significant. In the partial regression plots of test result that significantly affect the availability of operating standards, while the influence of the operating cost and technology obsolescence proved insignificant. In the classical assumption of regression, there are three hypotheses were proved significant that the test for normality, multicollinearity, and heteroscedasticity. While the autocorrelation hypothesis proved insignificant in this model.External factors affecting operating standards of crusher analyzed using Pareto analysis. The results Pareto found a significant effect of external factors as much as 60% of operating standard of crusher. The analysis shows that the problem No Coal in the dominant mining activity while other issues such as full stockpile, quality mismatch and not required to pinpoint problems that occur in the downstream. Crusher reliability is a probability that indicates that the crusher will perform its function in the process of coal during a certain period if it is operated normally by the design capacity.Keywords: crusher operating standards, internal factors, external factors, multiple linear regression, Pareto analysis, and reliability.Â
Intregrated Marketing Plan of Beauty and Health Center (Case: Voila)
No full textAbstract. Growing trend of beauty trends has made the rise of beauty salons in Bandung. The need of pampering and increase good freshness from hectic activities made the idea of making service facility where consumers can enjoy all in one package. With the combination facilities consisting of a salon and fitness classes, Voila became one-stop beauty and health center. Business issues faced by Voila today are stagnancy growth revenue where revenues do not achieve sales target in the initial business plan. Problem solving was restricted into two goals categories that are increase brand awareness and gaining sales revenue. Root cause was analyzed from Voila internal data and customer perception via questionnaire. The analysis obtained that Voila have no marketing action and the business have no uniqueness with compared to other competitors. To solved the problem, Voila need to do marketing strategies and product modification strategy. Implementation plan was divided into immediate and long-term program. For immediate program, Voila strategies were increasing brand awareness by viral marketing, improved productivity by adding temporary high skilled employee and trained low skilled employee also maintain company flow by created financial structure. Marketing strategy can be done by improving website, update in social media, also active in events related to beauty and health issue. Moreover, productivity in health studio will be improved by adding new variation of fitness class. The synergy between salon and fitness studio can be built by making integrated system for each product.  For long-term program, Voila planned for product modification strategy by creating new service in medical-based beauty treatment and create additional facility such as café. In addition medical-base beauty service, Voila will collaborate with dermatologist to create skin care salon medical based, also making mass product of hair and skin treatment. Keywords: marketing, service, brand awareness, beauty and healt