IMPROVING COMPANY PERFORMANCE USING FINANCIAL PLANNING APPROACH TOWARD FRAGRANCE COMPANIES: A CASE STUDY OF SAJA

• Main Author: Nafisah, Salmatun
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/83898
• Institution: Institut Teknologi Bandung

Perfume industry had development changes of the use of natural oils and synthetic oil components, influenced changing customer preferences and increased awareness of natural products. Saja, a perfume company established in 2022, offering natural products and capitalizing on this growing natural market trend. However, the company faces financial challenges, primarily due to the lack of strategic financial planning. An analysis of Saja's financial performance from late 2023 to mid-2024 revealed inconsistent income and fluctuating cash flow. These issues were identified through financial ratios and DuPont analysis, indicating inconsistent performance implicated by the company's low performance. To address these challenges, Saja will enhance its financial planning and improvement strategy through optimizing budget allocations, increasing production cost efficiency, and expanding product & market segments to boost income. The strategy's viability was assessed under three risk scenarios: realistic, optimistic, and pessimistic. In a realistic scenario, the Payback Period (PP) on Future Value (FV) is 2,80, and on Present Value (PV) is 3,84, with an Internal Rate of Return (IRR) of 39% and a Net Present Value (NPV) amounting to IDR 157.604.6917. The optimistic scenario shows PP at FV 2,65 and PV 2,83 years, IRR of 52%, and NPV of IDR 257.598.883In the pessimistic scenario, the PP on FV is 3,14 while the PV is 3,84, with an IRR of 28% and an NPV of IDR 94.804.400. Through feasibility measurements indicated that the proposed financial strategies are acceptable and feasible, suggesting that their implementation would help Saja address its financial inconsistencies and increase company performance.