STRATEGIC PRICING DECISION TOOLS TO IMPROVE FINANCIAL PERFORMANCE OF PT STAR CAR BELIEVE

• Main Author: Sugianto, Fendy
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/42628
• Institution: Institut Teknologi Bandung

Rapid technological developments in the past few years have changed various things in our lives, from the way we look for information to the way the business runs. Even so, the main purpose of the business remains the same, one of which is to make maximise profits. In calculating profits, price is a very important factor. This study uses PT Star Car Believe or known as the Tango Believe trademark as an object. Tango Believe is a subsidiary of Star International which is engaged in used car trading. Tango Believe faces a situation where they cannot reach non-financial targets for two consecutive years, and also experience significant financial losses. The study begins by analysing external conditions using the Porter's Five Forces model to understand the conditions faced by Tango Believe in terms of industry rivalry, threats from substitute products and new entrants, and the relationship between buyers and suppliers. The analysis then continues in the internal direction, in the form of financial statement analysis, to understand the situation that caused the low profit performance of Tango Believe. Using a number of financial ratios and comparing with several similar companies or those that have relevance, this study found buying prices as the main cause of this low profit performance. The study was continued by identifying the factors that influence the formulation of buying prices, and how these factors interact. Through the collection of information carried out on used car traders and used car buyers, this study obtained 14 factors that were considered to influence the formulation of buying prices. After identifying these 14 influential factors, the study was continued by making a formula that could be used by Tango Believe as a basis for determining buying prices. The formula is formed from the results of gathering information on used car traders and used car buyers to determine the influence of each factor that influences the value of the buying price. The formula produced from this study is expected to improve Tango Believe's profitability, thus allowing them to be more aggressive in terms of marketing and improve overall financial and non-financial performance. Nevertheless, this study also suggested Tango Believe to pay attention to several things such as product movement, changes in parameters and other parameters in using the formula.