CHAPTER 1
PREFACE
1.1
Background
"Indonesia was expected to emerge as the largest automotive market in ASEAN
by 2019 the amount of 2.3 million vehicles. This is supported by sustained economic
growth, middle class incomes greater, increased investment in the automotive sector, and
automotive regulations that support the growth of the market," said Director of Regional
Research Frost & Sullivan Asia Pacific Vijay Rao.
With a population of 240 million people and a per capita income increases, Indonesia
has the potential to be a market for producers and importers of automotive.
Development in middle class and expanding the economic base is referred to as
the two driving forces behind the expansion of the Indonesian automotive industry
which are estimated quiet fast. Other aspects are the level of ownership of the
automotive industry in Indonesia is lower when compared with its neighbors. In
Indonesia, the automotive industry penetration rate is about 80 vehicles per 1,000
people. It was much smaller when compared with the penetration in Malaysia 330 per
1,000 people.
The competitions between firms are getting tighter due to the rapid progressive of
technologies and market economic in the world. Market economic also has made a
great progress. Every company will try their best to compete with other companies or
they’ll go decline. That’s why every firm needs to sustain in this fierce market
economic condition by making a strategic decision to compete with other firms in
order to be more optimal in their performances and reach their company’s goals.
Auto parts industry in Indonesia is growing along with the development of the
automotive industry. Supporting the automotive components industry also developed
one of which is a car battery industry.Accumulators (batteries, battery) is a device that
can store energy (usually electricity) in the form of chemical energy. Examples are the
accumulator batteries and capacitors. In general in Indonesia, said accumulator (as
battery or batteries) simply understood as a "battery" cars. While in English, the word
can refer to the accumulator batteries, capacitors, , etc. In international standards every
single accumulator cell has a voltage of 2 volts, So the 12-volt battery, has a 6 cell
battery is 24 volts while having 12 cells.
1
2
Accu is a cell that we encounter as used in motorbikes and cars. Including
secondary battery cells, because in addition to generating an electric current, the
battery can also becharged electric current back. Simple battery is a cell consisting of
Pb electrode as the anode and cathode with PbO2 as H2SO4 electrolyte
The development and progress of the battery industry will continue to go hand in
hand with changes and advances in technology. Currently component of automotive
products have a very large number and variety of the product is very high.
Variations of products produced in the automotive components industry is very
wide and varied, ranging from engine components to the motor vehicle body
components even include any accessories such vehicles. Automotive components
industry consists of large-scale industry to small-scale industries.
Seeing its potential, the company engaged in the automobile would have to set up
the anticipation in order not to lose the opportunity in the future.
PT. Aksimeka Indoputra is a battery distributor who has been running more than
10 years. National company with struggles who have contributes to the growth of the
national economy, especially in the real sector. In addition, the commitmentof the
battery products make the company increasingly mature in the next tread on the
company's commitment to the automotive parts business. With the increasingly rapid
technological developments and the intensity, companies within the demographics,
consumer behavior is unpredictably increasing and unstoppable globalization can lead
to a crisis for the company with increasingly fading boundaries of an industry, the
continued development of business models, and the emergence of new players in the
arena competition.
Dynamic market requires more than just sales calls and brochures for a successful
sales model. Complex products and services in a rapidly changing market required a
focus on brand integrity and trust. The level of confidence can only be achieved
through improved relationships and solutions-selling.
According to information obtained from interviews with Directors of PT.
Aksimeka Indoputra, it was said that, in recent years the competition in the industry is
quite large. As more batteries with other brands try to emulate brand produced by PT.
Aksimeka Indoputra namely Bosch brand. Percentage of sales in the company is
unstable, but not significantly increased as expected by the company. When it was
seen in the sales data, in the monthly basis, it was up and down. There are certain
months of declining sales that can be said. Sales increased rapidly for example when
3
ahead of Eid Mubarak because many Indonesian people who replace the battery,
because they will be going home far away back to their village. Sales data were taken
in July 2014 - December 2014 in the form of units and in total each month of the
products sold. The company wants that the decline in sales is not far from the month
the month that could be said to rise.
Total Sales from July 2014 – December 2014
Figure 1.1 Sales graphic at PT. Aksimeka Indoputra
Source: PT. Aksimeka Indoputra
The graph above shows the growth of sales in the last 5 years which is unstable.
PT. Aksimeka Indoputra needs a new strategic decision that can boost their sales, so their
sales will not be in the stabilize position but on the other hand it keeps on raising. There
are lots of strategic decisions that company can use, but they have to determine first
which strategy suit them best. The best way to find the company’s best strategy is to see
the internal factors of the company, which is strength and weaknesses, and the external
factors
which
is
opportunities
and
threats.
PT. Aksimeka Indoputra have set a target which is at January 2016, They need to
boost their sales to reach sales at 6000pcs, so that they can lead their competitors.
Based on those background information, the author would like doing research with the
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title: Analysis of Strategic Management in Optimizing the Performance of PT.
AKSIMEKA INDOPUTRA.
1.2
Problems Identification
1. What are the external factors of PT. Aksimeka Indoputra?
2. What are the internal factors of PT. Aksimeka Indoputra?
3.
What is the critical success factors in the CPM Matrix indicator of PT.
Aksimeka Indoputra?
4.
What is the alternative strategies of PT. Aksimeka Indoputra in the
SWOT
Matrix?
5.
Where is the position of PT. Aksimeka Indoputra in the IE Matrix?
6.
Where is the position of PT. Aksimeka Indoputra in the Grand
Strategy Matrix?
7.
What is the best alternative strategy of PT. Aksimeka Indoputra in the
QSPM
Matrix?
8. What kind of strategy should be implemented in PT. Aksimeka Indoputra in
order to optimize their performance?
1.3
Purpose
1. To understand the external factors in PT. Aksimeka Indoputra.
2. To understand the internal factors in PT. Aksimeka Indoputra.
3. To understand the critical success factors of PT. Aksimeka Indoputra
compared with the competitors.
4. To evaluate the alternative strategies of PT. Aksimeka Indoputra in the SWOT
Matrix.
5. To understand the position of PT. Aksimeka Indoputra in IE matrix.
6. To evaluate the position of PT. Aksimeka Indoputra in the Grand Strategy
Matrix.
7. To evaluate the best alternative strategy of PT. Aksimeka Indoputra in the
QSPM Matrix.
8. To formulate a strategy that is suitable for the company to be more optimal to
compete in automotive industry.
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1.4
Benefits
1. For PT. Aksimeka Indoputra
 The company can evaluate the internal and external factors that have
been affecting their performance and competitiveness among the
automotive companies.
 The company can find the right strategy to optimize their performances.
2. For writer
 To emphasize and implementing the knowledge of strategic
management that had been learned in college.
 To learn how to make a solution with problems.
 To gain more knowledge about automotive industry.
3. For readers
 Readers
would
enhance
knowledge
how
to
emphasize
and
implementing a business strategy in a company
 Readers would have more knowledge about the automotive firms and
implement the strategy used here.
1.5 State of art
1.5.1 First Journal
Title
:SWOT Analysis in Determining Marketing Strategy Motorcycles at PT.
Samekarindo Beautiful in Samarinda
Keterangan
: Administration in 2013
Business development in Indonesia increasingly prominent about the complexity,
competition, changes, and uncertainty. This situation raises the sharp competition between
companies, forcing the company to pay more attention to the environment that may affect
the company, so that the company knows what kind of marketing strategy and how it should
be applied within the company. Identify and explain the strengths and weaknesses (internal
environment) as well as the opportunities and threats (external environment) as well as find
motorcycle marketing strategy right through the SWOT analysis (Strength, Weaknesses,
Opportunities and Threats). Results of research conducted by means of a SWOT analysis.
a. Strength-Opportunities Strategy
b. Strategy Weaknesess - opportunties
c. Strategy Strenght- Threats
d. Strategy Weaknesess-Threats
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1.5.2 Second journal.
Title
: Extending The Competitive Profile Matrix Using Internal Factor
Evaluation and External Factor Evaluation Matrix Concepts,
Source
:Charles J and Michael D, Vol. 28, 2012).
IFE matrix is a summary that measure an internal audit organizations. The main internal
strength and weakness, weight and assessed to obtain a total weighted score based on a scale of
1 to 4 ratings of 2.50 metric represents how the average company in the industry is facing an
internal environment. Likewise, EFE matrix is the last step of the external audit of the
organization. The main external opportunities and threats, weighed and assessed for total
weighted scores are also based on a scale of 1 to 4 ratings of 2.50 metric represents how the
average company in the industry to deal with the external environment. The total value of the
weighted IFE and EFE matrix plotted on a matrix of nine Internal-External (IE) to obtain a
more strategic strategy, as it growth and build, hold and maintain, or harvest and divestment.