PROPOSED IMPROVEMENT PLAN TO IMPROVE SMALL AND MEDIUM ENTERPRISE FINANCIAL PERFORMANCE: A CASE STUDY OF ORBIT

• Main Author: Dikara, Raihan
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/85848
• Institution: Institut Teknologi Bandung

This thesis presents a comprehensive analysis and proposed improvement plan for Orbit, an interior design company established in 2020 in Bandung, West Java, Indonesia. As a small and medium enterprise (SME), Orbit faces significant challenges in financial management, operational efficiency, and market competition. The primary objective of this research is to identify the specific financial management practices that have led to Orbit's financial issues and to propose measures to optimize its financial performance. The study employs both internal and external analysis frameworks, including the Resource-Based View (RBV), VRIO Analysis, PESTEL Analysis, Porter’s Five Forces, and SWOT Analysis, to assess Orbit's current situation comprehensively. Financial performance is evaluated using liquidity, activity, debt, and profitability ratios, while non-financial performance is assessed through marketing, human resources, governance, and operational indicators. Key findings indicate that Orbit struggles with cash flow management, primarily due to high accounts receivable and inefficient collection processes. Additionally, economic fluctuations adversely impact its operational efficiency and financial stability. The proposed improvement plan recommends implementing stricter credit policies, enhancing collection processes, establishing clear budgeting limits, Expanding market reach by targeting new segments and forming strategic partnerships, strengthening brand and marketing efforts through showcasing unique design capabilities and maintaining strong client relationships is essential for sustained growth.