CAPITAL BUDGETING FOR IMPROVE THE COMPANY PERFORMANCE TOWARD LIP PRODUCT BUSINESS: A CASE STUDY OF VEE NATURALS

• Main Author: Lutfia Azzahra, Dita
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/57569
• Institution: Institut Teknologi Bandung

The purpose of this research was to figure out what factors could improve Vee Naturals' financial performance. Vee Naturals is a local brand that specializes in natural lip products in the Jabodetabek and Bandung markets. However, to optimize the financial performance the company must manage capital and reduce costs to avoids inefficiency during the development business stage. The study will take a qualitative approach, involving interviews and surveys, as well as secondary data from literature reviews, journals, and books, and primary data from Vee Naturals' financial history, all of which are relevant to the conceptual framework. A survey was used to obtain customer product and buying preference information from Vee Naturals’ customers to validate the assumptions of the brand, price, and buying intensity. The result shows that Vee Naturals had a poor financial performance in its early years of operation. The survey of 114 respondents from Vee Naturals' target market revealed that the average consumer purchases the product once a month for IDR 50.000 to 100.000. Following the evaluation, Vee Naturals' financial performance can be improved by combining short- and longterm financial planning using the capital budgeting method in the form of three optimal cash flow, NPV, IRR, and payback period scenarios that can be used as an optimal plan to run this business for the next five years.