Business Review and Case Studies

Factors Affecting The Profitability of Plantation Commodity Business at PT XYZ

Agung Jat Wibowo Arsa — 2024-04-30

PT XYZ was a company engaged as a marketing agent for plantation commodities. The company added new business lines, expanding from marketing agents to traders and retailers. However, the addition of business lines did not increase the company's profitability. A research was conducted to analyze the factors that impacted the profitability of PT XYZ. The research used financial performance analysis and statistical analysis of working capital management on profitability, and it examined the interaction with the covid-19 pandemic using multiple linear regression. The variables used in the statistical analysis were days sales outstanding (DSO), days inventory outstanding (DIO), days payable outstanding (DPO), and cash conversion cycle (CCC). The control variables included current ratio (CR), debt to equity ratio (DER), investment policy (IP), financing policy (FP), and company size (size). Additionally, there was a moderating variable, the covid-19 pandemic (dummy). The dependent variable in the study was the gross operating profit (GOP). The results showed that the working capital management of PT XYZ from the aspect of liquidity had a net working capital that posed low risk and low return. Based on the company's financial statements, PT XYZ had a relatively high cost of sales. Regarding the leverage aspect, the company's debt-to-equity ratio increased, indicating that its capital or equity could not cover its debt. The variable day's inventory outstanding (DIO) had a negative and significant effect on the profitability of PT XYZ companies on the independent variable gross operating profit (GOP).

Keywords: commodity marketing company, gross operating profit, moderation of covid-19, profitability, working capital management

Indonesian Agricultural Sector Regional Value Chain in Regional Comprehensive Economic Partnership (RCEP)

Bugi Biruloma Lagaida — 2024-04-30

Global value chains (GVC) were a phenomenon of production of goods or services that involved various countries acting as providers of raw materials, intermediate products, and finished goods. There was a GVC concept with a more specific scope, namely the Regional Value Chain (RVC). This concept was carried out by countries that had regional cooperation. ASEAN countries and several partner countries had a new regional cooperation agreement, namely the Regional Comprehensive Economic Partnership (RCEP). The presence of the RCEP agreement opened opportunities for Indonesia to contribute. Various production chains could be created. Longer production chains allowed the distribution of benefits from GVC to be uneven in each country. This needed to be watched out for, so it was necessary to conduct research on whether Indonesia's participation in the agricultural RVC of the RCEP region provided benefits for Indonesia or not. The type of data used in this research was secondary data in the form of cross-section data, consisting of the Inter-Country Input Output (ICIO) table sourced from the OECD, which was released in 2021. This research used input-output table methods and backward linkage and forward linkage methods of a country's sector (Indonesia and RCEP partners) so that its position in the RCEP production chain and the world could be known. The result was that Indonesia acted as a provider of raw materials in 21 types of RCEP industries. RCEP provided value added to Indonesian agriculture.

Keywords: global value chain (gvc), inter-county input output table (ICIO), regional value chain (rvc), regional comprehensive economic partnership (rcep)

Covid-19 Impact and Recovery: Online and Offline Marketing Strategy For Victory Building Materials Store

Stella Wijaya — 2024-04-30

The Covid-19 pandemic significantly disrupted various sectors in the third quarter of 2020, notably the construction sector, an essential contributor to Indonesia's Gross Domestic Product (GDP) growth. Located in Glodok, one of Jakarta's most populous and commercially active regions, the Victory Building Materials Store exemplified this disruption. Experiencing a sharp 38.62% decline in sales revenue in 2020, the store grappled with intense marketing competition and the sweeping changes brought about by technological advancements. This study aimed to recommend an integrated online and offline marketing strategy tailored to this specific context. The research was qualitative, classified under conclusive descriptive research, employed interviews, FGDs, and document analysis. External analyses capturing the macro environment, industry dynamics, and customer behavior were conducted, while internal evaluations centered on Victory's existing marketing tactics. The results provided insights into market attractiveness, competitive positioning, and Victory Store's SWOT informed our strategy formulation. By enhancing segmentation, targeting, and positioning, with a keen focus on online sales, we aimed to elevate buyer brand awareness. The designed marketing mix strategy, encompassing the 7Ps, was projected to bolster the sales revenue of Victory Store until 2025. This study underscored the increasing significance of online sales channels, especially e-commerce platforms.

Keywords: covid-19 impact, building materials store, e-commerce transformation, online marketing strategy, retail disruption

The Company's Financial Performance Pre and Post IPO on The Indonesia Stock Exchange

Firman Siregar — 2024-04-30

An initial public offering (IPO) decision always had financial, accounting, and operational ramifications for the company. After an IPO, however, a company's performance typically declined, whereas there should have been an improvement in the company's performance when it went public. Good corporate performance could also be reflected in the company's financial performance. The purpose of this study was to compare the financial performance of companies before and after their initial public offerings (IPO). The research sample consisted of 31 companies that had an initial public offering in 2019, with financial reporting data from three years prior to the IPO and three years after the IPO. The methods of analysis employed were descriptive analysis and the Wilcoxon Signed Rank Test. After an initial public offering, the overall financial ratios examined in the study varied significantly. After their IPOs, the companies' performance declined (Return On Asset (ROA), Return on Equity (ROE), Debt to Assets Ratio (DAR), Debt To Equity Ratio (DER), Total Assets Turnover (TATO), and GR). After an IPO, only the CR grew in value.

Keywords: financial performance, go public, Initial Public Offering (IPO), stock market, wilcoxon signed rank test

Development of E-Logistic Success Model in Indonesia

Muhammad Luthfir Rahman — 2024-04-30

Logistics companies in the world started to shift from traditional logistics business models to E-Logistics business models that benefited digitalization and Information Communication Technology. For the successful implementation of a system that implemented e-logistics, the success factors for adopting e-logistics needed to be studied in order to achieve efficient and effective e-logistics implementation. The purpose of this research was to build a successful model of E-logistics adoption. This study used a Systematic Literature Review to identify the success factors of e-logistics adoption, conducted interviews with experts for validation, and performed quantitative validation through questionnaires and was analyzed using the Spearman correlation test to see the relationship of each factor to the adoption of E-Logistics. This research succeeded in creating a successful model for E-Logistics adoption in Indonesia. The results of the Spearman correlation test showed that all hypotheses were accepted. This could be seen from the correlation value of each factor, which had a positive value towards E-Logistics adoption. The HBS factor had a value of +0.458, the FAO factor had a value of +0.481, the EIF factor had a value of +0.548, the OTD factor had a value of +0.499, the FDC factor had a value of +0.640, the GVS factor had a value of +0.598, the EPM factor had a value of +0.764, the ETC had a value of +0.601, the ECB factor had a value of +0.651, the WDS factor had a value of +0.844, the TIS factor had a value of +0.771, the TMS factor had a value of +0.590, and the FIS factor had a value of +0.498 on the success of E-Logistics adoption. All of the hypotheses were accepted, and it was hoped that the model in this research could become a standard and reference in the development of E-Logistics theory and the development of E-Logistics systems in Indonesia.

Keywords: e-logistics, information technology, logistics, supply chain, systematic review

Capital Structure and Its Impact on Firm Financial Performance in The Transportation and Logistic Sector

Lanang Bagus Satrio — 2024-04-30

Capital structure was a structure that contained a combination of debt and company capital to support operational activities, so this was a concern for company management, including companies in the transportation and logistics sector. Transportation and logistics sector companies had an important role in the country's economy in that they moved goods or passengers from one place to another. However, there were companies in the transportation and logistics sector that had high levels of debt but could record profits, while there were companies that had low levels of debt but suffered losses. Therefore, the aim of this research was to describe the dynamics of capital structure and financial performance and analyze the influence of capital structure on the financial performance of companies in the transportation and logistics sector. This study used 18 samples of transportation and logistics sector companies using purposive sampling technique. The analytical method used was descriptive analysis and panel data regression. The results of this research showed that capital structure as proxied by the level of debt (Debt to Assets Ratio (DAR), Debt to Equity Ratio (DER), Short Term Debt (STD)) had a negative influence on the company's financial performance as proxied by the Return On Assets (ROA) ratio. Meanwhile, the effect of capital structure proxied by retained earnings variable had a positive effect on ROA.

Keywords: capital structure, debt ratio, financial performance, retained earnings, transportation and logistics sector

Supply Chain Risk of Animal Welfare, Halal, and Food Safety at RPH Jatimulya and Kranji Market in Bekasi City

Alwi Salam Makarim — 2024-04-30

Risk management was needed to minimize economic loss due to risks related to animal welfare, halal, and food safety and was necessary for sustainable business development. This study identified risk factors and agents, analyzed risk impacts, and determined the effectiveness of mitigation strategies in their application to risk agents related to animal welfare, halalness, and safety at the Jatimulya abattoir and Kranji market meat retailers in the same supply chain of the beef industry in Bekasi City using the 2-Phase House of Risk (HOR) method. The results showed that there were 14 risk events caused by 16 risk agents at Jatimulya abattoir and 7 risk events caused by 11 risk agents at Kranji market beef retailers. The risk agents that had the potential to cause the largest risk events at RPH Jatimulya were bruises on cattle (A1), knives and tools not being sterilized before use (A8), and the absence of a cooler for storing meat after slaughter (A14). As for retail traders in Kranji market, the hands of sellers and buyers were not sterile (A18), knives and tools were not sterilized (A20), and meat storage in the freezer was mixed with other goods (A25). Priority risk mitigation strategies for Jatimulya abattoir were adjustment of overcrowded pen capacity (PA2), creating SOPs for the use of tools and making a place to sterilize tools (PA4), and renting cold storage (PA7). Meanwhile, the Kranji market beef retailers provided rubber gloves for buyers (PA9), created SOPs for the use of tools and the creation of tool sterilizers (PA12), and provided special refrigerators to store meat products (PA14).

Keywords: risk management, beef, animal welfare, halal, food safety

Impacts of Government Policies, Technological Innovation, and Competitive Advantage on Post Pandemic MSME Financial

Evi Maulida Yanti — 2024-04-30

The aim of this research was to analyze the role of government, technological innovation, competitive advantage, and financial institutions in the performance of MSMEs post-pandemic. This research was quantitative research. The data processing used in the research was SmartPLS. This research was conducted in Aceh Province, where 200 MSME managers were selected as samples. The results of this research showed that the role of government had a negative effect on the performance of MSMEs, technological innovation had a positive effect on the performance of MSMEs, competitive advantage had a positive effect on the performance of MSMEs, the role of government had a negative effect on financial institutions, technological innovation had a positive effect on financial institutions, competitive advantage had a negative effect on financial institutions, financial institutions had a negative influence on the performance of MSMEs, financial institutions mediated the role of government on the performance of MSMEs, financial institutions mediated innovation technology on the performance of MSMEs, and financial institutions mediated competitive advantage on the performance of MSMEs. This meant that MSMEs needed to continue improving innovation technology and competitive advantage through financial institutions and the role of government in supporting MSME performance. Innovation technology and competitive advantage needed to be improved in achieving maximum MSME performance in the current technological era because technological civilization was increasingly developing.

Keywords: role of government, innovation technology, competitive advantage, financial firm, msme performance

Business Model Development at Multifinance Agency (Study of Keday Adira Finance)

Safira Aulia Rosalini — 2024-04-30

Every business required strategic planning to face the competition and to grow in their environment. The relationship between consumer and company was affected by several things, one of them was to make an agent as a connection between consumer and company. The relationship sometimes created a conflict of interest such as moral hazard and adverse selection. Keday Adira was an external agent with MSMEs background that could offer Adira Finance’s product to consumers. The purpose of this research was to identify existing model business, analyze alternative strategy and define priority strategy to design Keday Adira’s Business Model Canvas recommendation. This research used the IPA method with 100 respondents to define priority variables on business model, and continued with IFE, EFE, SWOT, and QSPM analysis. The result of this research showed that channels and key activities were priority elements to be improved. Keday Adira was on hold and maintained position and generated ten alternative strategies. Those ten alternative strategies were carried out using QSPM methods to produce a sequence of strategies that could be implemented. Those strategies impacted on the Keday Adira’s Business Model Canvas on value propositions, customer relationship, channel, key activities, key resources, and revenue streams block.

Keywords: business model canvas, business model development, strategic management, SWOT

Procurement Strategy for Organic Coconut Sugar: Case Study of XYZ Company

Eva Saputri Murwaningrum — 2024-04-30

This study aimed to develop an effective procurement strategy to ensure the supply of PT XYZ's organic coconut sugar in 2023-2025. PT XYZ was a manufacturing company that focused on providing added value to natural commodities produced by farmers in Indonesia. The demand for organic coconut sugar increased every year. However, there were obstacles in procuring organic coconut sugar in terms of farmers' supply capabilities and suitability of specifications. To determine the procurement strategy for organic coconut sugar that could be developed by PT XYZ, an analysis of the sourcing strategy was carried out using the Kraljic Portfolio Matrix method. Organic coconut sugar material was in the strategic material quadrant with high supply risk and high-profit impact. The partnership strategy was the best choice for PT XYZ in 2023-2025, which solved company problems and could also be a productivity improvement solution for companies in Indonesia.

Keywords: coconut sugar organic, kraljic portfolio matrix, procurement strategy, coconut sugar productivity, supply risk

Mangosteen Export Business Strategy at CV A&H Fruits Group

Shabrina Ghaissan — 2024-04-30

CV A&H Fruits Group was an exporter from Puspahiang, Tasikmalaya Regency, which offered high-quality mangosteen fruit to the Chinese market. In carrying out its business activities, the company faced instability in mangosteen supply and logistics costs, which had increased significantly due to the Covid-19 pandemic. Apart from that, amidst the many uncertain factors in the agricultural industry, companies needed strategies to remain viable and competitive. Therefore, this study examined the business strategy of CV A&H Fruits Group by reformulating its business model. This study used primary data analysis through in-depth interviews and secondary data analysis through literature studies. The purposive method was used to determine respondents consisting of company directors, farmers, competitors, and the Tasikmalaya District Food Crops Service. The data analysis tools used were the Business Model Canvas and SWOT. Based on the SWOT analysis results, five alternative strategies were formulated, namely offering seedless mangosteen, establishing cooperation with logistics services, expanding cooperation with suppliers, improving service management, and improving warehouse management and product quality. These five strategies were applied to the current BMC resulting in a reformulation of the business model that was reflected in the future BMC CV A&H Fruits Group. This reformulation focused on improving value proposition elements by offering seedless mangosteen, enhancing service to prospects and customers, and carrying out cost efficiencies. Company management needed to intensify relationships, collaboration, and/or cooperation with farmers, universities, or the government to maintain sustainable mangosteen supplies; and logistics services to cut logistics costs.

Keywords: business model canvas, business strategy, seedless mangosteen, mangosteen, SWOT

Structure and Wage Scale Based on The Two-Point Method at Small Enterprises Culinary Sector in Cibinong District

Dea Nur Eriza — 2024-04-30

The Covid-19 pandemic that occurred in Indonesia from early 2020 to 2023 resulted in an unstable economy. However, the Indonesian economy was supported by Micro, Small, and Medium Enterprises (UMKM). The industry contributing the highest to the Gross Domestic Product (GDP) among UMKMs was the Food and Beverage Industry. Based on this, there was a need for the enhancement of UMKM quality, not only in terms of sales but also in managerial systems, including compensation. Government Regulation No. 1 of 2017 mandated that every business must have a Pay Structure and Scale. This research aimed to analyze the Pay Structure and Scale of Culinary Micro and Small Businesses using the dual point method. The research was conducted from January to August 2023 in the Cibinong District, Bogor Regency. The existing Pay Structure and Scale were not ideal; improvement was necessary. The research results showed that each Small Business was already paying its employees in accordance with the Recommended Pay Structure and Scale, thereby eliminating the need for additional wage operational costs. Apart from the Pay Structure and Scale, Micro and Small Businesses could also enhance their quality and competitiveness through internal fairness by implementing the 3P concept (Pay for Person, Pay for Position, Pay for Performance) and external fairness through the attract, retain, engage approach.

Keywords: umkm culinary, financial compensation, small enterprises, structure and wage scale, two-point method

The Factors Influencing The Purchase of Ornamental Plants (Case Study of Monstera and Philodendron Products)

Noorisiva Larasati — 2024-04-30

Ornamental plants contributed greatly to the economy and could be a profitable business opportunity. The trend of ornamental plants in Indonesia was never empty; every year, there were always booming ornamental plants. The purpose of this study was to explain how the consumption behavior patterns of leaf ornamental plant products and the factors that influenced purchases included motivation, lifestyle, and marketing mix through perception as an intervening variable. This study used SEM-PLS analysis of 214 respondents who had purchased Monstera and Philodendron with a minimum age of 19 years. The results of the study showed that motivation, lifestyle, and conversation had a significant effect on perception. Motivation, co-creation, currency, communal activation, and perceptions directly influenced the purchase of leaf ornamental plants. Then, motivation had a significant effect on purchasing leaf ornamental plants indirectly, namely through perception as an intervening variable. Managerial implications in this research were segmentation, targeting, and positioning (STP) strategies and optimizing the variables that influenced the purchase of leaf ornamental plants, which consisted of motivation, co-creation, currency, communal activation, and perception.

Keywords: ornamental plants, lifestyle, marketing mix, monstera, philodendron

Influential Factors Shaping Retailer Behavior Considering Partnership With Producers (Case Study in Central Java, Indonesia)

Mayang Sari Marchainy — 2024-04-30

This research explored the dynamics of agricultural cultivation in Indonesia, where vast rural areas, distant from urban centers, necessitated robust distribution channels involving distributors and retailers to expand the market for pesticide products. Given the limited information on business interactions between producers and retailers and their implications on product market development, this study sought to evaluate the factors influencing retail behavior when considering partnerships with producers. Employing the PLS-SEM analysis method, we examined the influence of exogenous variables such as capital on endogenous variables like repurchase decisions, incentive programs, collaborative relationships, supply chain management, partnership decisions, and commitment. This investigation involved 53 retailers in the Central Java region and utilized 21 reflective indicators measured through questionnaires. The findings revealed significant relationships among variables, with the exception of the link between collaboration and partnership decisions, as well as partnership decisions and commitment. This indicated that the retailer-producer relationship hinged on business sustainability not yet to the level of product commitment. The implications suggested that producers could strategically utilize supply chain management and incentive programs to foster partnerships with retailers.

Keywords: distribution channels, pesticide market, retail behavior, retail-producers partnership, supply-chain management

Design of Blockchain System for Land Services Administration at Ministry of Agrarian and Spatial Planning/National Land Agency

Suyus Windayana — 2024-04-30

The objective of this study was to analyze the effectiveness of Blockchain for land services at the Ministry of Agrarian Affairs and Spatial Planning. The study was conducted using a rationalistic approach combined with a naturalistic paradigm. Data were collected through observation, stratified sampling, and systems analysis. A black box test was conducted to test the effectiveness of blockchain usage. This method was used to determine if the software was working properly. As a result, it was found that the Ministry of Agriculture and Spatial Planning/National Land Agency (Ministry of ATR/BPN) land service included target optimization divided into two subsections: time and target. Of the two subsections (time and goals), delays in the completion of land certificates and initial preparation of land certificates were found to be less effective. The problem was that there were still some land certificates for which terms and timeliness certainty were inconsistent with the Land Agency Commissioner's Decree No. 1 of 2010 on Service Standards and Land Regulations. The design of the Blockchain system for land services of the Ministry of Agrarian Affairs and Spatial Planning was developed in a limited manner based on the simplification of land data entities (in blockchain technology referred to as business objects) with the aim of illustrating how smart contracts contributed to each stage of data transactions. Thus, the Blockchain system was considered to have a high security value, especially when applied in the digital land certificate security system.

Keywords: black box test, blockchain technology, land certificates, land services