PROPOSE SUCCESSOR STRATEGY IN A FAMILY BUSINESS (CASE STUDY : DIANA GROUP)

• Main Author: Putri Cholifaturrosida, Afina
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/54744
• Institution: Institut Teknologi Bandung

Diana Group is a family business that runs in some industries that were established in 1975 in Tulungagung, Jawa Timur. The family business is engaged in the fashion, automotive, and building material industries. For the past 6 years, the overall business performance of Diana Group has decreased, supported by declining sales data after the 3rd generation took over the business in 2016, and lack of competences of the current successors to lead the management system. All in all, Diana’s Group is failed to seek the talent of the successors, due to unprofessional election process that still used relay-method according to age based. This research is using mix methodology which are, quantitatively with PLS to support F-PEC further analysis, and also qualitative with Leadership Succession Model. Additionally, to perceive situations that will affect the business, this research used external and internal analysis. For external analysis examined through PEST (Political, Economy, Social, and Technology), for seek the situations factors that might affect business sustainability. However, for the internal analysis examined through several steps, which are RBV (Resources Based View), VRIO, Financial Performance, KPI analysis, FPEC Scale analysis, and Corporate-Level Strategy. The internal analysis should be inspected comprehensively, due to the main problem of this business, which is the misstep of succession election. As result through final analysis, which 5 Why Analysis to found out the corrective action for the business, the election process should be done with Succession Planning Model, the Job Analysis Model, and the Training & Development Program for the new strategies of the Diana Group. The outcome of several analyses obtained several strategies for increasing business performance and succession planning ahead. If all the targeted strategies are implemented, Diana Group might arrange the succession plan well to improve business performance in the future.