BUSINNESS EXPANSION STRATEGY OF ARBIE SCIENTIFIC

• Main Author: Adi Putra, Panji
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/71875
• Institution: Institut Teknologi Bandung

Arbie Scientific is a company that is in the coal industry which provide services like sample analysis (preparation and testing), proficiency test, coal training and manufacturing laboratory equipment for coal preparation and testing which located in Bandung. In 2020, Arbie Scientific had a plan to expand its operations to sampling, preparation and testing in Cirebon. However, that plan was put in hold because there was a concern in the external pressure, quality control, human resource and capital needed to build the second laboratory. The research will explain about the expand problems using fish-bone analysis to identify the problems and the sub-problems and explain about the internal situation using VRIO method to identify whether the company has resources that valuable enough to expand and external analysis using Porter’s Five Forces to identify the threat of new entrants, bargaining power of buyer, bargaining power of supplier, threat of substitute, competitor rivalry and PESTEL to analyze the political, economic, sociocultural, technology, environment and legal factors. This research has a purpose to give an insight whether Arbie Scientific has the opportunity and capability to expand in year 2023 and give a financial forecast for Arbie Scientific. There are three objectives that will be explained in this research, which is: the current business situation, to keep the quality control in sampling, preparation, testing and to calculate the profit from expand. Analysis methods that will be used in this research are SWOT analysis, VRIO and Porter’s Five forces to know what kind of factors that will affect the expand decision, ASTM method (American Society for Testing and Materials) for sampling to make sure the operational standard and to calculate the ROI (Return on Investment), ROA (Return on Asset), ROE (Return on Equity). The result of ROI, ROA, ROE calculation will influence the company’s decision whether to expand or not. After that, the research will explain about the risk identification, 5W + 1H implementation and plan to expand its operations.