INVESTMENT ANALYSIS OF INTEGRATION PROJECT (CASE STUDY: PT BANDUNG XYZ)

• Main Author: RADIANT, JOSEPH
• Format: Dissertations
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/52103
• Institution: Institut Teknologi Bandung

The Covid-19 pandemic has had a profound impact on all economic industries, including the creative industry in Indonesia. There are so many negative impacts felt by creative industry players, but not a few also see the Covid-19 pandemic as an opportunity t o invest. PT. Bandung XYZ is one of the creative industry players in the city of Bandung, West Java with its flagship product ABC Sandals. The company has plans to integrate the factory and warehouse locations into one area which is currently in a differen t location. Many benefits will be felt, especially the cost savings from the two locations currently used by the company. The current condition, the company rents a factory which is currently being used for the production process and the warehouse is fully owned. This investment is classified as an investment in a replacement project. The research methodology includes an internal analysis from the company side and an external analysis that looks at the conditions of the creative industry in Indonesia. Inter nal analysis includes tangible and intangible resources, capabilities and core competencies of the company. External analysis includes PEST analysis and Porter's Five Forces. Financial feasibility study analysis is conducted to determine the feasibility of the replacement project that will be carried out. Then, a risk management analysis will be carried out to determine the variables that affect the feasibility of the project. From the results of the calculation of this study, it is concluded that this project is feasible to do with the Net Present Value (NPV) variable of IDR 3,993,723,014, Internal Rate of Return (IRR) of 33.87%, Payback Period for 3 years and 4 months and a Profitability Index (PI) of 1.96. With a swing of 20% for sensitivity analysis, three variables are sensitive to changes in the NPV value. The three variables are minimum direct material to price per unit, efficiency cost on general and administrative expense and growth priority product that have been determined as management targets. These three variables are also used as references in conducting scenario analysis and Monte-Carlo analysis. From the calculation results, it is found that the probability of the NPV is smaller than zero is 0.26%. Companies must continue to innovate in products that are marketed as a strategy to continue to compete in an increasingly competitive industry. In addition, companies need to consider increasing the number of shops, which currently only number two and are located in Bandung, West Java and Bali.