PROPOSED STRATEGY FOR OFFICE BUILDING BUSINESS (CASE STUDY: PT AAP)

• Main Author: Ali Mohammad, Faisal
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/53429
• Institution: Institut Teknologi Bandung

Office rent is one kind of the property market in Jakarta, which is still considered promising for investors, including in terms of providing office buildings for rent, both for local and multinational companies. Moreover, the supply of office buildings in Jakarta is expected to continue to grow, by approaching 7,000,000 square meters. However, office property segments in Jakarta, both in the central business district (CBD) and non-CBD areas, are still under pressure. PT AAP as one of the properties firm should figure out any solution based on the current situation that affecting decreases in revenue and profit hence business strategy needs to be evaluated and reformulated to get the best performance of the company. In order to develop business strategy, this research is accomplished through interviews and FGDs with the Board of Directors and related managers and also by the literature study. Business exploration issues gained through external analysis that consisted of PESTLE analysis, Porter’s Five Forces analysis, and competitor analysis while internal analysis consisted of resource-based analysis, VRIO analysis, and 7P marketing mix. Those exploration issues resulting in a SWOT analysis by strengths and weaknesses from the internal analysis with opportunities and threats from the external analysis. The analysis translated into TOWS Matrix for explaining functional strategies. The result is PT AAP are in an unattractive industry for short run but good prospect in the long run with capable strength to sustain the competition in office building property industry. Business strategy that formulated for PT AAP divided into company and functional strategy. Based on current situation as a family business, PT AAP should choose on diversification strategy with focused differentiation by increasing the firm's quality of their products and services while doing R&D for any blue ocean possibilities. The company level strategy then translated into functional level strategy. There are 13 strategies which will then be implemented through a detailed program with their respective schedules. In conclusion, in order for PT AAP to cope with the current pressures that have resulted in reduced revenues and profits, it must carry out the thirteen functional strategies according to a predetermined schedule. The strategies are ranging from marketing, human resources, R&D, and production (operation, fit-out & improvement, and engineering), as well as accounting and finance.