BUSINESS EXPANSION DURING POST-PANDEMIC COVID-19 SITUATION: A STUDY CASE OF LOS TROPIS

• Main Author: Rizky Yulistia, Prisa
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/67226
• Institution: Institut Teknologi Bandung

The pandemic has changed people’s consumption behavior and their livelihood. The government’s policy on massive Covid-19 vaccination drives physical activities and recover the economy altogether. The post-pandemic circumstances have encouraged people to buy healthy food and drinks. LOS Tropis, a food and beverage company, provides new perspective on fruit consumption in supporting healthy lifestyle. The company is planning to expand their market by opening a new outlet in Bandung and thus, capital budgeting concerning future market opportunities are crucially fundamental. This study explores the feasibility of LOS Tropis’s project on new outlet opening by using VRIO and PESTLE Analysis respectively, financial statements projection, capital budgeting, and then risk assessment through sensitivity analysis and Monte Carlo analysis. The study indicates that LOS Tropis’s new outlet opening is feasible as indicated by NPV positive of Rp563,911,323, internal rate of return of 72%, payback period on 1.33 year, and profitability index of 2.43. The probability of this investment will generate NPV lower than zero is 29.81%, Skewness and Kurtosis resulting on positive 2.96 and positive 13.56. Moreover, any changes in; quantity sold realization, amount of daily transaction, weekday of sales realization, and weekend sales realization should be considered further regarding the implementation of this investment.