RISK DIVERSIFICATION IN CAR RENTAL BUSINESS UNIT IN COOPERATIVE XYZ TO OPTIMIZE PROFIT
Abstract : <br /> <br /> <br /> <br /> <br /> Vision and Mission of Cooperative XYZ is to provide optimum advantages for its members. One of several ways to achieve it is by running car rental business which serves the corporate customer on annual rent bases. Condu...
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| Format: | Theses |
| Language: | Indonesia |
| Online Access: | https://digilib.itb.ac.id/gdl/view/6463 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | Abstract : <br />
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Vision and Mission of Cooperative XYZ is to provide optimum advantages for its members. One of several ways to achieve it is by running car rental business which serves the corporate customer on annual rent bases. Conducting that business, Cooperative XYZ now has the car rental business with intermediary company and the car rental business without intermediary company. <br />
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The problem came when Cooperative XYZ experienced loss in its car rental business with intermediary company. Not only loss in money, but Cooperative XYZ has also lost its exclusive customer in its car rental business without intermediary company. As the Cooperative XYZ faces those problems, the management is considering either to continuing or closing the car rental business. <br />
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Some indications that may cause the losses among others are tight competition, high cost, the decline of used car resale value, less of business diversification. <br />
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Four possible solutions for the continuation of the car rental business are understudied, they are run the car rental business with intermediary company (alternative 1), run the car rental business without intermediary company (alternative 2), run the car rental business on daily bases in Jakarta or Bandung (alternative 3), and invest capital in other car rental company (alternative 4). This thesis generates project feasibility study to choose the best alternative. Based on that project feasibility calculation, all alternatives are feasible to be conducted. But, to minimize risk, alternative 1 and 3 for Bandung are eliminated. After giving weight to each possible solution, the study concludes to allocate about 50% of capital to alternative 4, 30% to alternative 2, and 20% to alternative 3 in Bandung. <br />
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For the implementation, Cooperative XYZ can implement those three alternatives simultaneously. It is recommended to recruit employees to run the car rental business without intermediary company and car rental business on daily bases in Bandung. Every 6 months the suitability of capital allocation in each alternative has to be evaluated. <br />
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