PROPOSED STRATEGY FORMULATION FOR SERANTAU COFFEE

• Main Author: Wardana Putra, Bayu
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/42638
• Institution: Institut Teknologi Bandung

Food and Beverage industry is the biggest contributor to Indonesia’s GDP in the processing industry group. In addition to being the biggest GDP contributor in processing industry group, food and beverage industry shows a promising future as an industry. It has 9.23% growth for 2017 and still grow for 7.91% in 2018. Those number is one of the biggest growth rate in the group. There have been some issues for Serantau Coffee to expand the business. The CEO of Serantau Coffee, Rama, realized that opening the second branch does not mean the business will grow steadily. With the goals of 10 branch in big cities around Indonesia within 10 years, it just a dream if there is no strategy to reach it. In line with it, with no grand strategic planning, there are no fixed system to follow at functional level. There is only procedure at operational level to run the store and it causes problems here and there at Serantau Coffee. In order to give solution to Serantau Coffee, strategy formulation is needed. Using PEST Analysis and Porter’s Five Forces as external analysis for the industry together with Value Chain Analysis and Existing Business Model as internal analysis to gain input for SWOT Analysis. Based on SWOT analysis, strategy formulation can be performed into three parts which is directional strategy, business focus strategy, and functional strategy. For directional strategy, using IE Matrix to know the position and choose the alternative using QSPM, the result is intensive strategy. For business focus strategy, using Porter's Five Generic Strategies and choose the alternative using QSPM, the result is differentiation. Lastly the functional strategy that formulated using TOWS Matrix, has purpose to support intensive strategy and differentiation strategy. In order to face the problem, Serantau Coffee has to try to implement the strategy. By using implementation plan, Rama as the CEO can keep the strategy program in track. The suggested implementation plan consists of functional strategy that already set to support company level strategy, which is directional and business focus strategy.