DEVELOPING THE STRATEGY FOR STEEL SALES BY SCENARIO PLANNING APPROACH (CASE STUDY: PT KRAKATAU STEEL)

• Main Author: Hamonangan Simatupang, Tumpal
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/78061
• Institution: Institut Teknologi Bandung

The steel industry as the mother of industry is a sector that has a strategic role in efforts to build national economic independence, become the main supporter of infrastructure development, and the development of the steel industry is a benchmark in industrial development in Indonesia. Over time, competition in the domestic steel industry has been growing, not only being controlled by PT Krakatau Steel itself, but many competitors have emerged for the same products as those produced by PT Krakatau Steel. One of the challenges for PT Krakatau Steel is how to dominate the market share with the right steel sales strategy. Companies need to prepare themselves by making strategies for a challenging future. To get the right strategy, the company must conduct a thorough analysis of external and internal factors. The main problem of this project is how the Sales Team can sell the steel products close or equal to the plant's installed capacity and can dominate the domestic market share amidst the many competitors, both local and imported. The development of scenario planning helps the company to see the future steel industry environment, offers solutions to overcome various challenges, and provides an implementation plan as a guideline for the company's strategy. As a result of the findings, the two most critical and uncertain factors that need to be considered by PT Krakatau Steel are raw material prices and government policies toward the national steel industry. These two factors form a 2 x 2 matrix and form four scenarios, namely Armageddon, The King, The King's Speech, and Cast Away. The implications and options of the scenarios are explored to generate various strategies. Furthermore, early warning signals are set to give a warning to the company and guide the company towards which scenario will occur. In closing, a strong strategic plan was prepared as a reference for the company in facing business challenges and changes in the next seven years.