ASSESSING THE FINANCIAL FEASIBILITY OF OPENING NEW TUPKIES BRANCH STORE

• Main Author: Akbar Setiadi, Rafi
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/83207
• Institution: Institut Teknologi Bandung

This study assesses the financial feasibility of expanding Tupkies, a distinguished food and beverage company specializing in cookies, by opening new branches in Bandung, Indonesia. Established in 2020, Tupkies has successfully integrated innovative product offerings with a strong market presence, particularly in Bandung, a city celebrated for its culinary diversity. The expansion strategy includes establishing a central production facility and implementing a grab-and-go retail model to enhance operational efficiency and customer convenience. The financial feasibility of Tupkies proposed expansion was evaluated using several analytical methods, including Pro Forma Financial Statements, Capital Budgeting, and Risk Analysis through Scenario Planning over the 5 years projection. Financial metrics such as Net Present Value (NPV), Internal Rate of Return (IRR), and Payback Period were calculated to determine the economic potential of the expansion. The analysis reveals a Payback Period of 3.06 years, a positive Net Present Value (NPV) of Rp342,523,246.13. and an Internal Rate of Return (IRR) of 45% which higher than the Weighted Average Cost of Capital (WACC) value of 11.31%, which indicating strong profitability on this Tupkies project expansion.