BRANCH OFFICE BUSINESS MODEL SELECTION FRAMEWORK USING ANALYTICAL HIERARCHICAL PROCESS

• Main Author: Rahma Hakim, Hanif
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/62878
• Institution: Institut Teknologi Bandung

Before Covid-19 pandemic, Garuda Indonesia served 38 international routes daily, operated by 15 online Branch Offices spread across the world, with their unique managerial characteristics that influences the business outcome. This study will dissect important managerial aspects of a Branch Office that can be used as analytical base in deciding the most suitable business model for a Branch Office and build a framework to conduct such decision. The business model alternatives are Wholesales, General Sales Agent (GSA), Join Venture with Local Airline, and Owned Branch Office. Qualitative analytical hierarchy process (AHP) methods are used to assess the most influential aspects in determining Branch Offices business model. By conducting a series of in-depth interviews with key decision makers and assessing each criteria priority weight, 4 main aspects and 13 derivative aspects are obtained. The main aspects and its derivatives are: Operational Aspects (35.4%), Commercial Aspects (30.3%), Financial Aspects (21.5%), and lastly aspects of Administration and Legal Representation (12.8%) with their respective weighted sub criteria for each criteria & sub-criterion. Furthermore, the selection of alternative business models can be done by testing the value of each alternative business model relative to other business models in each aspect of its managerial derivatives. In the end, the framework for the Branch Office Business Model Selection can be used to evaluate business model throughout Garuda Indonesia’s Branch Offices so that the business model scheme applied will enhance profitability.