In Strategic Management System. <br /> In Aircraft Services Division. PT IPTN. <br />

• Main Author: Hasby, Indra
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/1649
• Institution: Institut Teknologi Bandung

This study proposes a business strategy for the Aircraft Services Division, one of PT IPTNÂ’s strategic business units, in order to survive and develop in the changing environment as well as to fulfill the desire of the stockholders. PT IPTN has been greatly affected by IndonesiaÂ’s economic crisis (during 1997-2001). Aircraft development programs have been forced to be delayed and the sale of airplane & helicopter has sharply declined. The field operation of the operatorsÂ’ airplanes and helicopters has also decreased. These conditions, accompanied by changes in the companyÂ’s external environment, such as national politics, social conditions, government policies, and environmental concerns, as well as the internal desire to change the status the Aircraft Services Division to become a subsidiary, have forced the Aircraft Services Division to redefine its business strategy. <br /> This business strategy is developed according to the strategic management phases. It starts with internal and external analysis. Then, employing SWOT matrix, General Electric matrix, and three generic strategies, the strategic alternatives for the Aircraft Services Division are listed. Finally, based on the companyÂ’s vision and mission, the best-suited strategy is selected. <br /> The balanced scorecard is used as the approach for the implementation of the chosen strategy because it enables a comprehensive and coherent strategic analysis that eases the executives in defining the action program and its budget, as well as eases the communication within the company. This approach provides strategic objectives, expected results, performance drivers, and action programs ready for the implementation. <br /> In addition, this balanced scorecard approach also eases management control for strategy implementation because it provides the facility to measure the extent to which the implementation is carried out according to the plan and the extent to which the strategy needs further adjustment due to later changes in the environment. <br /> Hopefully, with this redefinition of business strategy and action program, the management of Aircraft Services Division is able to operate as a subsidiary of PT IPTN successfully and will be able to develop and expand its business in the future. <br />