CHAPTER I
INTRODUCTION
1.1
Background
In globalization era, economic condition has many significant improvement. The
innovation of technology has made an impact to the world’s economic condition.
Nowadays, competition in business area has gotten more fierce and they have to
improve in order to sustain in the business area they work. Other than that, company
are forced to put their business in a strategic position in order to maintain their
market share and the profit company expected.
There are many ways the company can do to achieve that goal. Strategy is an
important thing in doing business in order to complete the goal the company has set.
Because of that, a good and effective business strategy are needed. With the right
strategy, company will sustain in their business and survive among their competitors.
There are many strategy that company can use but company has to see, whether that
strategy are the right one for them or not based on the situation so that strategy will
success.
The right way to achieve company’s goal based on the situation right now is
formulate a business strategy. Based on Karina Aviana and Fani Azzalia on their
thesis (2011,page.1) the right way to formulate business strategy so it will come up
to a right and effective strategy is to see the internal factors that include company’s
strength and weakness and also external factors that include opportunites and threats
from the industry.
To know further about business strategy, writer do some research on PT.
Jagakarsa Motor. PT. JAGAKARSA MOTOR is a company that move on service
area. PT. JAGAKARSA MOTORS offers service for the user of HONDA
motorcycle and also sell HONDA motorcycle and its spare parts. PT. JAGAKARSA
MOTOR was founded in 2006. Writer doing survey at the main office. The office is
at Jl,Moh Kafi 2 no 20, Jagakarsa, Jakarta Selatan.
Based on The Jakarta Post (2013/01/16) Sales of motorcycles in Indonesia, the
world’s largest producer of several key commodities, such as palm oil, coal and
rubber, have been affected by declining commodity prices due to the prolonged
global slowdown. The commodity boom in recent years has driven demand for
motorcycles, particularly in outside Java, where motorcycles are popular among
plantation and mining workers. Overall motorcycle sales, an indicator of
consumption in Southeast Asia’s largest economy, reached 7.06 million last year,
down 11.83 percent from 2011, the highest level in recent years. The drops affected
key firms such as Astra Honda Motor, Yamaha Indonesia Motor Manufacturing and
Suzuki Motor Indonesia. Market leader Honda, for instance, sold 4.09 million
motorcycles last year, down 4.33 percent from 2011, while runner-up Yamaha
delivered 2.42 million, down 22.71 percent, and Suzuki distributed 418,940, down
by 15.04 percent.
Based on that problem, PT. JAGAKARSA MOTOR keep trying to sustain and
increase their service quality in all sectors, where PT. JAGAKARSA MOTOR has
weakness in advertising and promotion. If that weakness can be handled, PT.
JAGAKARSA MOTOR will sustain in this industry. Company’s management board
keep gather information from the market to improve their quality and analyse it so a
good business strategy can be produced to handle this situation
A good business strategy formulation begins with Input Stage, which is discuss
about IFE Matrix ( Internal Factor Evaluation), CPM (Competitive Profile Matrix),
and EFE (External Factor Evaluation). After that, proceed to Matching Stage, which
is deciding good strategy alternatives by using SWOT (Strength-WeaknessOpportunites-Threats) Matrix, SPACE (Strategy Positioning And Action Evaluation)
Matrix, IE (Internal, External) Matrix and Grand Strategy Matrix. And then Decision
Stage, which formulating the best strategy alternatives by using QSPM (Quantitative
Strategy Planning Matrix). With a good, correct and effective business strategy
planning, the company is expected to handle all the problems and keep operating,
survive and achieve its goal.
Based on the background above, writers willing to discuss this problem in a
research proposal “ Business Strategy Analysis In Motorcycle Industry on PT
JAGAKARSA MOTOR”.
1.2
Problem Identification
Based on the background, the problem identifications are :
1. What is the internal and external factors of the company?
2. How to formulate business strategy for PT JAGAKARSA MOTOR in the
future?
3. How PT JAGAKARSA MOTOR recommend the business strategy
implementation in order to compete in this industry?
1.3
Objectives
1. Identify the internal and external factors of the company.
2. Formulate business strategy for PT JAGAKARSA MOTOR for the
future.
3. Gives recommendation of good business strategy implementation that
should be used by PT JAGAKARSA MOTOR to compete with their
competitors.
1.4
Benefits
Benefits from this research proposal
1. For Company :
Gives evaluation about the company’s internal and eksternal factors and
implement the correct business strategy for PT JAGAKARSA MOTOR in order
to sustain and compete in the market.
2. For Others :
As an reference for others who needs information about business strategy
and share knowledge for the public.
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