FINANCIAL PLANNING STRATEGIES FOR BOOSTING BUSINESS PERFORMANCE IN THE COSMETICS INDUSTRY: A CASE STUDY OF LUMNA COSMETICS

• Main Author: Indra Prasetya Setiawan, Ahmad
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/77404
• Institution: Institut Teknologi Bandung

The beauty industry is constantly evolving, and one of the latest trends that has taken the world by storm is Fast Beauty. However, the rapid development of this industry has given rise to a new set of problems, particularly with regards to the environment. Lumna is a business that wants to provide solutions in the form of eco-friendly and healthy cosmetic products. This research adopts a quantitative method utilizing both primary and secondary data sources. The collected data will be used to develop a five-year financial projection, considering internal and external assumptions. To analyze profitability and return on investment, financial feasibility will be examined using measures such as IRR, NPV, and payback period. To enable the seamless execution of the financial strategy, an implementation plan will be developed, defining specific tasks, dates, and responsible parties. This planning tries to define five-year strategic goals. Lumna's researcher creates three calculating scenarios to limit the risk of not meeting the goal sales forecast: worst-case scenarios, usual scenarios, and optimistic scenarios. These scenarios let Lumna predict probable outcomes and make educated judgments based on changing conditions. All three NPV and IRR are acceptable with an NPV of Rp188,176,427; Rp171.069.479; Rp153,962,531 and IRR in 40.93%; 37.21%; 33.49% After figuring out the value of Lumna, an implementation plan is put in place to be carried out. Lumna is predicted to improve its company performance in the future with the given strategy/solution. The solution is intended to prevent unforeseen financial strategies in each department, thus ensuring Lumna's financial stability and resource efficacy in the future. This study seeks to improve Lumna's company performance through better financial planning, resulting in long-term growth in the beauty industry. This plan will explain the processes, time constraints, as well as responsible parties involved in implementing the planned financial initiatives. Lumna intends to improve its financial performance and achieve long-term growth in the beauty business by carefully implementing this plan.