IMPROVING BUSINESS PERFORMANCE USING FINANCIAL PLANNING TOWARD ELECTRICAL & MECHANICAL INDUSTRY: CASE STUDY OF CV. JOGI TEKNIK

• Main Author: Samantha, Afra
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/75481
• Institution: Institut Teknologi Bandung

Based on the 2020 Industrial Information Report issued by the Ministry of Industry of the Republic of Indonesia, there are 76 companies in industrial estates and 137 companies outside industrial estates engaged in repair services and installation of machinery and equipment in Indonesia. One focus of this industry is services for boiler service, maintenance, and installation. The magnitude of the potential and business opportunities in this industry has encouraged many business people from the Micro, Small and Medium Enterprise (MSMEs) scale to large-scale businesses to get involved in this industry. The MSMEs sector which is engaged in the service, maintenance and installation of boilers often faces a series of challenges that hinder its growth and sustainability. The main challenge faced by MSMEs in this industry is the lack of access to finance (Board of Governors of the Federal Reserve System, 2019). Without adequate funding, they may struggle to invest in the equipment, tools and materials needed to provide high-quality services. CV. Jogi Teknik as an MSMEs engaged in the Repair Services Industry and Machine and Equipment Installation for Boilers. CV. Jogi Teknik has limited investment resources and funds in running business management and operations when compared to large competitors. In making financial and business planning, CV. Jogi Teknik needs to determine an effective and sustainable plan to continue to develop according to the company's capabilities. According to (Vesna Grozdanovska K. B., 2017) financial management has an important function in the company, namely, to estimate the capital requirements of the company. Furthermore, based on the Annual Corporate Income Tax Return from CV. Jogi Teknik in 2020-2022 shows that the financial planning that has been carried out has proven to show business performance at CV. Jogi Teknik has experienced a decrease as shown by the gross profit margin on CV. Jogi Teknik is 24.9% in 2020, with an increase of 10.1% in 2021. Unfortunately, the conditions did not last long, where CV. Jogi Teknik experienced a significant decrease in Gross Profit Margin of up to 7.8%. According to NYU Stern School of Business data for 2023, CV has a gross profit margin. Currently the gross profit margin from CV. Jogi Teknik is lower than the electricity industry average. The average gross profit margin in the Power Industry is around 35.40%. This is an indication of the company's growth from CV. Jogi Teknik is slow in its industry. Researchers used a quantitative approach by processing data on the financial history of CV. Jogi Teknik and secondary data from journals, books, articles, and literature reviews. In generating data, researchers used an analysis of internal business conditions with financial reports, SWOT analysis, and business model canvas analysis. Meanwhile, to analyze the external conditions of the business using competitor analysis and competitor mapping. The results of this study want to show that CV. Jogi Teknik has a low financial performance in 2022. After conducting an evaluation, to improve CV. Jogi Teknik financial performance, this company is feasible in three scenarios based on the NPV, IRR, and payback period that can be used as an optimal plan to run this business for the next five years.