The Indonesian Journal of Business Administration
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Crafting Strategy to Improve XYZ Rice Milling Business Competitiveness
Get PDFEast Java rice milling business has been affected by a series of political policy regarding the industry, and increasing raw material purchase competition. This article is concerned about current competitive condition facing XYZ; it is experiencing problem of declining profitability even though the market is in uptrend. This decline is represented by problems in material purchase, production efficiency, and low selling price. The study and is aimed towards improving XYZ competitiveness and profitability. The literature review provided some generic framework in analyzing business condition and developing strategy (Wheelen & Hunger, 2012). Research is conducted by interviewing, observation of XYZ owner, and through secondary data gathering. Result of the research is analyzed to determine elements of business environment affecting XYZ. External analysis of the company point out strategic factors potentially important to the company such as market requirement of premium rice, differing price between east and west jave, as well as notable price discrepancy between area in East Java. Internal analysis of XYZ point out important strategic factors that affect XYZ in terms of its competitiveness, such as the relatively outdated production method and low direct sales effort of XYZ. From SWOT analysis of these factors, it is concluded that problem affecting XYZ competitiveness is requirement for reformulating business strategy. Based on it, a strategy is formulated for XYZ to improve competitiveness by upgrading production machinery, improve material purchase, and increase direct sales. It is concluded that the main problem of XYZ is low efficiency, and it is recommended that XYZ implement the solution to improve its competitive readiness and to prepare for future challenge. Keywords: business strategy, rice milling business, business model, TOWS matri
Proposal to Improve Employee Engagement at PT Telekomunikasi Indonesia, Tbk
No full textPT. XYZ transformed into T.I.M.E.S. Company in 2009. This transformation were done to maintain their position as market leader in telecommunications industry. PT. XYZ also transform their organization to support this transformation.Based on survey results XYZ Employee Survey in 2011, the employee satisfaction level in PT. XYZ was categorized high but, this achievement is not supported by the company’s performance. Based on PT. XYZ’s internal report in 2011, only 9 of 69 T-lab areas that able to meet their performance targets. This survey report was confirmed by Theme O Meter (TOM) survey in 2011, that show the level of XYZ’s 5C application is hasn’t meet the corporate target. According to Daft (2009), this condition is caused by ineffective organization. According to Right Management (2010), The organization effectiveness can be enhanced by increasing the level of employee engagement.This research focused on measuring the level of employee engagement in newly transformed unit at PT. XYZ by using a questionnaire survey that composed using the combination of several theories that related with the employee engagement theory.  The questionnaire analysis result show that the most influencing factor to employee engagement is the collaborative innovation factor. Therefore the optimization of collaborative innovation needs to be done. Based on further analysis result, PT. XYZ is suggested to redesign the Theme O Meter (TOM) assessment question, apply the TOM assessment result as the leader’s KPI, and improve the method and the weight of the score in 360o assessment to optimize the collaborative innovation culture.  Keywords: PT. XYZ, employee engagement,collaborative innovationÂ
Proposed Marketing Strategy for TELKOM FLEXI to Compete with GSM Operators
Get PDFIn Indonesian telecommunication industry, market penetration of FWA (Fixed Wireless Access) based is still about 12% of the total population size. But the market penetration of GSM (Global System for Mobile Communications) based in cellular telecommunication industry has reach 82%. Therefore when the FWA operators in Indonesia want to expand their market, they will have to compete with GSM operators. As market leader of FWA license in Indonesia, it is time for Flexi for extending their network and also targeting new market that were not their target market so far, GSM users. Flexi is a voice and data telecommunications service based on wireless CDMA (Code Division Multiple Access) 2000-1x technology. This is a limited mobility service, meaning that, unlike cellular subscribers, Flexi customers can only use the service within a particular area code. Charges are based on residential telephone (PSTN TELKOM) tariffs. Flexi offers three basic services: voice, SMS and high speed data. This study explores the problem of Flexi In competing with GSM operators using several analyses. The relevant external environment factor that may influence telecommunication industry and Flexi's business is analyzed with Porter’s Five Forces model. The company’s resources, capabilities and core competencies are determined to identify what company can and cannot do. Then the segmentation, targeting and positioning of Flexi will be analyzed. The perception, motivation, and buying decision of customer is also explored to get insight about why the customers want or don't want to use CDMA Flexi. Finally, the existing marketing strategy (marketing mix) of Flexi is examined to describe the symptoms and errors within it, in order to formulate the root causes. No firm positioning statement, doesn’t actively provide handset for its target market, ineffective promotional activities, and low of product knowledge are the root causes of Flexi's low acceptance in the market. Therefore, to overcome those root causes, then formulate a more firm positioning statement and tagline to be more suitable with Flexi's target market, improving product weaknesses, and use a community as marketing campaign media are what Flexi have to do to have a more effective marketing effort. The management should develop promotion strategy which is composed of six elements: advertising, personal selling, sales promotion, direct marketing, internet marketing, and public relations.  Keyword: Marketing Strategy, Marketing Mix, CDMA, GSMÂ
Strategic Alliance between PT Dirgantara Indonesia and Airbus Millitary (A Case Study of PT Dirgantara Indonesia)
No full textPT Dirgantara Indonesia (PT DI) is one of the aircraft manufacturing companies in Indonesia. The tight of competition in aerospace industry needs to improve its performance to gain niche market. Therefore, Ministry State of Own Enterprises has instructed PT Perusahaan Pengelola Aset (PT PPA) and PT DI to restructure and revitalize company with supported by Airbus Military as a strategic alliance partner, in order to increase the performance of production capacity, aircraft sales, and financial. This study focuses on the lifecycle of strategic alliance between PT DI and Airbus Military that consists of planning, formation, operation and termination phase. Strategic alliance is classified into stakeholder support, matching strategic, cross-culture understanding, initial goals and reason, forms of co-operation, alliance initial agreement, human resource management, organizational arrangement, management control system, internal drivers, and external drivers. We use technic in-depth interview and internal data to analyze the strategic alliance between PT DI and Airbus Military. The life cycle of strategic alliance within one and half years between PT DI and Airbus Military includes planning phase, formation phase, and operation phase. After identifying the life cycle of strategic alliance phases, PT DI should improve performance and take benefits from this strategic alliance. Strategic alliance agreement between PT DI and Airbus Military is joint operation or non-equity alliance. It is expected to evolve become equity alliance that requires share of ownership among parties. This study provides strategic alliance evolution that requires company to place trust and commitment, organizational, society, technological, and financial. The result gives contributions for the strategic alliance theory especially in alliance evolution. Keywords: strategic alliance, aircraft manufacturing, alliance evolutio
Risk Management in Pinisi Relaxation Using Analytical Hierarchy Process
Get PDFPinisi Relaxation is a massage parlor that was established in September 2012, and located in the city of Bandung and Sukabumi. Along with the passage of a new company, there are many events that can cost the company, both in terms of financial and non-financial. To be able to cope with such events, Pinisi Relaxation could use risk management approach, as well as the use of Analytical Hierarchy Process in selecting alternative needed to handle the risks. Risk identification in Pinisi Relaxation divided into business risk, financial risk, operational risk, marketing risk, and human resource risk. All risks will be placed in a risk map that reflects the position of any risks inherent in Pinisi Relaxation. The next process is to mitigate the risks inherent in Pinisi Relaxation through analysis of theory and concepts related to conditions in Pinisi Relaxation. Results of analysis for risk mitigation alternatives will then be selected through the Analytical Hierarchy Process to produce the best alternative to handle the risks. Criteria that must be met to handle the risks in Pinisi Relaxation are divided over the cost, effectiveness, and time, in which each of these criteria have different comparisons. Through the process of the analysis, there would be the alternatives that required by Pinisi Relaxation to handle the risks. Each entity in the company should be able to do the alternatives that have been selected in accordance with their respective duties. In addition, the risk management process should always be reviewed and controlled in order to avoid the things that could cost the company if it the risk treatment doesn’t run in an appropriate way. Keywords: Pinisi Relaxation, Risk Management, Analytical Hierarchy Proces
Maximizing the Contribution of Mining industry to Sustainable Development: Case Study at PT FREEPORT INDONESIA
Get PDFHistorically, mining has had a bad reputation of being destructive to the environment and social-cultural. Issues such as the depletion of resources, loss of biodiversity, lack of contribution to the local area's development, human rights violation, and the negative impacts on local communities are central to the mining industry’s operations. Despite mining industry claims that comprehensive environmental and corporate social responsibility programs have been fully implemented, the mining industry is still under high pressure to improve its economic, social and environmental performance. PT Freeport Indonesia (PTFI) one of the country's biggest recipients of foreign direct investment is located in the remote area in Papua and interacts with indigenous people. Despite PTFI is one of the largest taxpayers in Indonesia, and contributor of over US$60 billion to the country's national gross domestic product since 1992, the company is still demanded by stakeholder to contribute more to the local, regional, and national development. The objective of this final project is to analysis the source of the most problem and to define the proper solutions to resolve the problems faced by the mining company especially PTFI in order to be sustainable and to be part of sustainable development. The methodology used in this research project consists of assessment of current business situation started with external and internal environmental scanning, PESTEL analysis is used to study external factors, and then is combined with the SWOT situation analysis. Keyword: Sustainable Development, Mineral Mining, Root Cause Analysis, PESTEL, SWOT Analysi
Optimizing Spare Parts Procurement to Enhance Plant Availability
No full textDuring operation all equipments in Plant need spare part to replace its damage element to maintain Plant Availability. Variation in spare part, spare part’s life service, and procurement lead time tend to increase number of spare part request. On the other hand, huge number of inventories has no direct correlation with plant availability as the fact that many break-down equipment need extended repair time due to unavailable spare part. Inventory also became main topic on company performance especially on financial side. This paper will discuss spare part procurement method on Steel Making Plant that projected able to maintain and increase Plant Availability and concern to inventory level. The working method started by spare part classification, inventory policy for each spare part classification, and procurement method. Spare part classification according to three mains criteria, which are: usage value, critically, and usage frequency. Spare part will divide by 27 different classes to decide inventory policy. These are three inventory policies: with-out stock, one piece stock, and more pieces stock. Spare part procurement method should able to support defined inventory policy and concern to vendor availability. There are some spare part procurements method alternatives that have individually strong and weak point. For evaluate spare part procurement method use “Kepner-Tregoe Decision Analysis†and to analyze potential problem that may rise from chossen procurement method is “Adverse Consequencesâ€. Keywords: spare part, equipment availability, inventory, spare part classification, inventory policy, spare part procurement method
Implication of Right Issue Cum and Ex-Date Announcement to the Stock Return(Empirical Study on Indonesia Stock Exchange Period: 2009-2012)
Get PDFRights issue is one of corporate actions conducted by the company in order to increase the new funds through issuance of new shares. The common purposes from issuing right issue are to improve company’s capital structure in pursuance of expanding their business as well as meet the need for a new stream of funds in terms of the debt repayment. Therefore, right issue is a signal that may be good or bad news for investor’s investment decision depending on the company’s objectives. This study aimed to test market efficiency by analyzing the right issue cum and ex-date event in Indonesia Stock Exchange. The object of this research is the content of information by observing changes in stock prices and return around observation period. To examine the object, the populations used in this study are all publicly traded companies in the Indonesian Stock Exchange (IDX) which are performed corporate action in right issue during 2009-2012 periods. The period consisting 74 events of right issues captured in the 30-days of observation. Scopes of the research covers the analysis using the event study conducted to capture market reaction reflected by the changes of abnormal return. The estimation used to test information content which implicated to the stocks return by the events in order to test the semistrong form of market efficiency using form of public information available as an object of study and selecting performance of stock that generates the best return during the event using Jensen’s Rules analysis. In the further analysis of the market reaction, company is divided into two categories which are growing and not growing companies conducted by proxy investment opportunity set (IOS) MVE/BVE. From the analysis shows that the market reacted negatively before and after the event both for growing and not growing companies by its significant abnormal return.  Keywords: Right issue, Ex-date event, Abnormal Return, Event Study, Market Efficiency, Investment Opportunity Set (IOS) MVE/BVE, Jensen’s Rule.Â
Speedy Wifi, A TELKOM'S Business Strategy to Compete in Broadband Internet Access Business in Bandung
Get PDFCurrently the Internet is not regarded as a luxury, but it has been regarded as a primary need. This resulted in a change in lifestyle people who are looking for cheap internet access service, fast, and of course can be accessed wherever and whenever they want. Telkom Speedy (Speedy) is one of the flagship products from PT. Telkom, which provide Internet access service to the people of Indonesia. In 2011 ago, the average sales and customer sales increased significantly. Only in 2012 was not as good performance achieved in the previous year. To find out the root cause of this problem external and internal analysis is done. External analysis divides into macro and micro environment. Macro environment is using PEST. While micro environment is using porter five forces. The general summary of macro environment is a changing of people lifestyle in doing internet access, while for micro environment is a high competition between internet service providers. For internal analysis is by doing analysis of Speedy product, which the result is Speedy offers high and stable speed access internet but couldn’t use in mobile. From the results of this analysis inferred that Speedy couldn’t answer the changing of lifestyle that happened in the market. The solution to the above problem was found by adjusting the analysis of strengths, weaknesses, opportunities and threats of the company (SWOT) and Porter Generic strategy options. The chosen strategy is cost leadership with product release Speedy WiFi. In addition Telkom has the power in the financial and sales channel distribution strategy is another reason why it was chosen because Speedy WiFi using existing network that already exists and wireless modem that has been installed on the customer side so it does not require an expensive cost. Segment to be addressed by Speedy WiFi are existing phone customers, potential customers phones, mobile internet subscribers, and new internet users. While the target to be addressed now is Telkom Speedy and existing customers from competitors. Positioning to be delivered from this product is a service to Internet users both normal and advanced users who need high speed internet and stable anytime, anywhere full of content and an affordable price. To maximize the sales of these products, promotional activities carried out above and below the line. The choice of a media campaign in which television, radio, print media, visits to educational institutions, offices institutions, communities, and doing canvassing Key Words: Telkom Speedy, Speedy WiF
Financing Strategy Analysis to Maximize Company's Value Case Study: PT ABC
Get PDFAs a newly born mining company, PT. ABC needs more funding to finance the capital expenditure. The capital expenditure is needed in order to ramp up the company production capacity. The current 0.5 Million Ton 2012 production cannot meet their target capacity which is 2.3 Million Ton. So, they need the additional funds to finance the capital expenditure immediately. The fund needed is approximately 5 Millions USD.There are two source of funding alternatives, which are internal and external sources. The internal source which is retained earnings is not possible due to the insufficient funds. The possible external sources are bank loan and advance from customer. So, there are three possible forms of financing alternatives for PT. ABC, which are bank loan, advance from customer and the combined of both bank loan and advance from customer. The concern for the company is they have a plan to become publicly traded company in near future, so this immediate financing need should be aligned with the company medium and long term plan. The parameter that needs to be analyzed from every alternative is the impact on company value. The company value of every alternative is analyzed using DCF (Discounted Cash Flow) method and Relative valuation method. Based on the analysis using DCF and Relative valuation method, the best possible alternative is the combined of both bank loan and advance payment. That alternative resulted in the highest equity value which ranged between Rp 2,421 Billions to Rp 3,556 Billions.Keywords: Funding Alternatives, Discounted Cash Flow Valuation, Relative Valuatio