PROPOSED STRATEGY FORMULATION FOR PT. DKI

• Main Author: Christopher, Ong
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/53470
• Institution: Institut Teknologi Bandung

Due to Indonesia’s inability to achieve self-sufficiency in soybeans production, we are increasingly relying on US soybeans imports to fulfil the national protein demand for human consumption. The diverse usage ranges from traditional tofu, tempeh, soy sauce, snacks and drinks production. Henceforth, the oilseed is also the primary source of affordable protein and has contributed significantly to the growth in Indonesia’s annual import volume. In turn, it has opened business opportunities for importers and distributors to enter into the soybeans market. By the time of writing, the author has been working in PT. DKI for a period of five years. Founded in 2004, it was a family-owned business in charge of importing and trading physical soybeans grains in the West Java region. This paper intends to analyze and formulate a long-term strategy for PT. DKI as an example for the case study. In engaging with its business activities, the firm faces an array of internal and external challenges ranging from capacity constraints, size constraints and financial risks. The ultimate objective is to evaluate the prospects for diversifying related product portfolios and develop competing strategies while optimizing overall risk control and employing strategic partnerships ideas to streamline logistics processes in order to expand outside of the West Java region. Additional challenges the firm is facing in 2020 would be how the Coronavirus pandemic affected the livelihood of food-processing industries and end consumers, justifying a preemptive plan to adapt to the new business environment and shifting consumer demand. SWOT analysis is used as the primary methodology to assess the firm’s degree of competitiveness in the market and to develop the strategy matrix. To supplement the findings, trend analysis, ratio analysis, capacity analysis, risk analysis and market segmentation were utilized to identify bottleneck issues and assess the overall value of the firm. The selected business and functional strategies integrate an improved business model, to provide better cost, experience and overall business value. It should be deployed with an emphasis on continuous improvement and a proper reward structure to achieve the intended results. Most importantly, since PT. DKI is still a family-owned firm, the lack of experience in key business functions should be addressed and leading practices are to be employed within the given frame.