CORPORATE STRATEGY FORMULATION FOR POULTRY EQUIPMENT DIVISION PT MEDION: DIRECTIONAL, PORTFOLIO, AND PARENTING STRATEGY

• Main Author: SETIAWAN HIRAWAN (NIM: 29111092) Pembimbing Thesis: Dr. Ir. Mohamad Toha, BUBUN
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/18182
• Institution: Institut Teknologi Bandung

Rapid growth in poultry industry provides opportunities and threats for Medion. With multiple businesses to manage, Medion needs effective corporate strategy to maximize its value. What is the appropriate directional strategy for Medion? How Medion should manage its portfolio and how Medion should organize its poultry equipment businesses? To answer the questions above, Medion has to understand the situation, both external and <br /> <br /> <br /> internal using STEEP analysis and Porter’s Five Forces. Corporate strategy includes directional, portfolio, and parenting strategy. How Medion responds to this situation will be answered under directional strategy. Portfolio strategy will be done using BCG Matrix and GE Business Screen.Parenting framework is appropriate for Medion as a holding company. Medion can put influence on each its business unit and assess whether it can create or destroy value. The framework will assess critical success factors of each business, available parenting opportunities and characteristics, then assess the fit and misfit between these elements. Data for this research is collected through (1) secondary data, (2) interview, and (3) survey. Secondary data analysis is mostly used for preliminary assessment. Interview with key managements provides qualitative information both in assessing the situation and formulating corporate strategies. Quantitative survey on Medion’s customers is done on questionnaire. The sampling method is judgmental sampling. The result is used in strategy formulation. Based on the collected information, Medion is suggested to implement strategy of (a) concentric growth, (b) investing in brooding business, (c) liquidating Meditech business, (d) maintain full ownership of feeder, drinker, and brooding business. The suitable directional for Medion is concentric growth because the company has strong competitiveness and the market is attractive. Investing in brooding business is needed to develop the business from question mark category into star. Meditech business should be liquidated and the resource allocated on other businesses. As parent company, Medion has to develop parenting opportunity to improve brooding business from edge of heartland category into heartland. Medion should keep its feeder, drinker, and brooding businesses ownership. Through this paper, PT Medion should be able to respond correctly to the changing environment of poultry industry by investing, growing, maintaining, and even harvesting the right businesses. Implementation of these strategies must be designed to decide what actions to be taken, who is responsible, and when it should be completed.