CRAFTING STRATEGY TO IMPROVE XYZ RICE MILLING BUSINESS COMPETITIVENESS

• Main Author: HERASMARA (NIM: 29111062) Pembimbing : Dr. Ir. Mohammad Hamsal, MSE., MBA., MQM, RIDHO
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/19312
• Institution: Institut Teknologi Bandung

East Java rice milling business has been affected by series of political decision by policy maker, and increase in competitive condition. Even as an established player in the rice milling business, XYZ is also affected by this condition. Rice milling business is the only business owned by XYZ, therefore, rice milling business is very important for XYZ. <br /> <br /> <br /> Currently, XYZ rice milling business experienced a symptom of declining profitability, even though the market is generally in uptrend. In accordance with the mentioned symptom, this final project is composed to discuss how to increase profitability of XYZ rice milling business. <br /> <br /> <br /> Approach in the study in conducted by establishing framework for solution development, interview and observation of owner, acquisition of data and secondary data from previous research. Result from the data acquisition is then interpreted using established framework. The framework consists of external and internal environmental scanning, to be then analyzed using SWOT. From the SWOT, problem will be inferred. <br /> <br /> <br /> The approach concluded that main problem of XYZ is requirement for re-formulation of business strategy to face competition. For that purpose, the study is focused in formulation of new business strategy for XYZ. <br /> <br /> <br /> Solution of XYZ is to adopt cost leadership as strategic positioning due to price being important element of consumer perception. Appropriate strategy in line with XYZ&#8223;s positioning is to increase production quality and quantity by investing in new production machinery. Second strategy is increasing amount and quality of raw material purchased. Third strategy is to increase direct selling trhough focus in strengthening business model. <br /> <br /> <br /> Recommendation for strategy implementation is also developed. First recommendation is to start the study for new machine investment. Second recommendation is to conduct recruitment of purchaser. Third recommendation is to start the study to open new direct selling store. Those recommendations are scheduled as presented in schedule table.