PROPOSED BUSINESS STRATEGIC IMPROVEMENT TO ACCELERATE WASTE MANAGEMENT BUSINESS UNIT AT BUILDING MATERIALS COMPANY (CASE STUDY AT CEMENT INC)

• Main Author: Buyung M R, Merdiano
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/85956
• Institution: Institut Teknologi Bandung

The increasing environmental concerns and government laws in Indonesia have created new opportunities for the growth of waste management services in the cement business sector, especially through application of thermal technology. The Waste Management Unit (WMU) in Cement Company has substantial strategic potential for expansion and development. After merger and acquisition, Cement Inc has transformed into a state-owned company, which giving expansion potential for WMU Cement Inc. This research objective is to determine the optimal strategic direction for the Waste Management Business Unit within the Cement Company by applying the Analytical Hierarchy Process. The research addresses three critical questions: (1) What is WMU Cement Inc Current Situation related with Market, Finance, Customer and Organization? (2) What are the Challenges (internal and External) in Accelerating Waste Management Services in Indonesia in order to gaining more value for Company? (3) What are Proposed recommendations and Business Strategic Decision for Company in order to absorb more value for Company? By conducting a comprehensive analysis using the Kepner Tregoe framework, the study evaluates three strategic alternatives: maintaining the waste management division within the cement company, expanding it to the holding cement group, and establishing it as a separate entity. The Result of this research are best alternative (40.6%) by Specialized WMU Business Unit, better than WMU Market Expansion by Sinergy with SIG (30.9%) and Optimized WMU Operational Focus (28.4%). by Specialized WMU Business Unit, can avoid market and price cannibalization among subsidiaries and streamlining operations, WMU Cement Inc can lead the Waste Management services by providing Waste for all of SIG Subsidiary Plant and other Cement Factories (such as ITP, etc). The Advantages of this decision are, WMU Cement inc can have independent operations, can lead to more focused management and agility in decision making and can diverse the revenue by developing specialized capabilities and expertise in waste management.