STRATEGIC INVESTMENT ANALYSIS OF LEATHER WALLET PRODUCTION: CASE STUDY OF MONZE

• Main Author: Adith Praditya - Nim: 29115610, Jordy
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/22716
• Institution: Institut Teknologi Bandung

<p align="justify">The leather industry in Indonesia has a significant contribution to Indonesia's economic growth, contributing more than 18 percent of Indonesia's GDP by 2015. Monze, as a newcomer to the leather goods industry, is optimistic in competition with competitors. One year doing the business, Monze has a plan to expand their business to Jakarta, Surabaya and Bali to increase sales. Currently Monze has 8 sales channel with 90 pieces required to fulfill every month, while the sales and marketing division state that Monze need to fulfill the minimum requirement of 144 pieces/month to execute their plan to add 3 more sales channel. The production division currently can only produce for 100 pieces/month with current Cut Make Trim (CMT) vendor. Thus, the purpose of this study is to find solutions in the form of investment decision analysis in terms of leather wallet production, as the most profitable and also superior featured product. <br /> <br /> <br /> The first step taken to find out the problems and the real state of Monze is by conduct an external state which consists of Porter Five Forces analysis, as well as Market Size analysis. After conducting the external analysis, the research is continued by analyzing the internal state which consists of Financial analysis, and analysis of Production Process. The conclusion from the analysis is to plan an alternative solution to Monze's production problem, which is comparing the production of a wallet using a bigger CMT vendor, in compare to producing it by constructing Monze's own leather workshop. <br /> <br /> <br /> The solution that will be resulted at the end of the study is a financial result and a feasibility study that will show us, which project that Monze could execute to improve their production line. Financial and feasibility study will be the basis to determine which projects were better at improving the production line and also increasing revenue for Monze. The result of the calculation shows that the workshop project will generate more profit and feasible to conduct with the amount of NPV of Rp 411,191,771, IRR of 158%, Payback Period of 1,5 years, EVA of Rp 285,182,483, and PI of 9,06% which will be executed within a month.<p align="justify"> <br />