Mid Term Exam

MM 5012 – Business Strategy and Enterprise

Modeling
YP 62B
Open Book
November 11th, 2020
08.30-12.00

Multahadi Qisman
29119492
YP62B
ANSWER SHEET
1. Permasalahan utama yang terdapat pada case ini ialah tentang promosi yang dilakukan
oleh MEIKARTA dianggap terlalu terburu buru oleh potential consumer, dikarenakan belum
jelasnya pembangunan tetapi sudah gencar dengan promosi promosi yang sudah ditawarkan.
Masyarakat khawatir termakan dengan promosi yang telah disebar oleh meikarta, sedangkan
untuk izin pembangunan nya saja masih terkendala dan juga inkonsistensi pernyataan antara
MEIKARTA group dengan pemerintah provinsi Jawa Barat ini semakin membingunkan kepada
potential consumer yang ada.
We can analyze the problem on the case , we can use Caroll four responsibilities framework

MEIKARTA seharusnya melakukan pelaporan CSR sesuasi Caroll four responsibilities

framework agar masyarakat tidak menimbul respon negative seperti yang terdapat didalam case
Philantrhopic Responsibility, transparansi apa yang telah dilakukan oleh company, melakukan
strategy marketing sesuai kelayakan dari produk yang ingin ditawarkan. Menurut informasi yang
terdapat didalam case, untuk IMB dari MEIKARTA bukan telah mendapatkan IMB tetapi sedang
proses mendapatkan IMB. Management MEIKARTA terlalu overconfidence telah
mengumumkan bahwa proses pembangunan meikarta ini telah mendapatkan IMB. Dari sisi
Philanthropic Responsibility seharusnya managemen meikarta memikirkan tanggung jawab
sosial terhadap lingkungannya, terutama cara-cara perusahaan tersebut menangani masyarakat
yang terdampak pembangunan proyek ini. Kepedulian dari MEIKARTA terhadap lingkungan
yang lebih luas dapat mempengaruhi penilaian publik terhadap perusahaan tersebut. Dengan
tingkat kepedulian yang tinggi terhadap lingkungan sekitarnya, suatu perusahaan juga akan dapat
menggalang hubungan yang saling menguntungkan dengan para stakeholder atau dengan
pemerintah setempat
Ethical Responsibility, MEIKARTA mempunyai tanggung jawab moral terhadap apa yang telah
ia lakukan, salah satu kesalahan yang ada ialah melakukan unethical decision seperti yang
terdapat didalam case bahwa pernyataan pemerintah provinsi dengan management MEIKARTA
berbeda terkait IMB dan strategi pemasaran yang dilakukan. Hal ini mengundang keresahan
masyarakat terhadap kredibilitas MEIKARTA dikarenakan sebagian masyarakat merasa bahwa
this promotion irrational.
Legal Responsibility, seharusnya MEIKARTA memperhatikan untuk patuh terhadap hokum yang
berlaku agar masyarakat mendukung apa yang dilakukan oleh management meikarta, bisa kita
lihat dari case, bahwa meikarta melanggar beberapa undang-undang yang berlaku di Indonesia.
Economic Responsibility, strategi pemasaran yang dilakukan MEIKARTA terbilang kontroversi,
dikarenakan disaat ijin IMB belum resmi, mereka sudah melakukan promosi dari produk
meikarta secara massif, yang artinya untuk urusan dengan pemerintah pun MEIKARTA belum
menyelesaikannya dengan baik tetapi sudah melakukan pembangunan, dari strategi
pemasarannya pun membuat resah masyarakat karena dengan iming-iming uang yang
dikeluarkan consumernya sedikit, tetapi bisa booking mendapatkan produk yang fasilitasnya
bisa dibilang diatas harga pasaran. Hal ini yang membuat apa yang dilakukan management
MEIKARTA patut dipertanyakan

2. Menggunakan five porters analysis untuk membandingkan competitive in industry, dalam

case ini saya akan mengambil contoh McDonalds untuk food industry dan Ford Mobil untuk
vehicle industry
Mc Donalds :
1. Competitive Rivalry atau Competition dengan McDonald's (Strong Force)
• Jumlah perusahaan yang tinggi (kekuatan kuat)
• Agresivitas perusahaan yang tinggi (kekuatan kuat)
• Biaya beralih rendah (kekuatan kuat)
pelanggan McDonald's mempunyai biaya switching yang rendah, yang berarti mereka dapat
dengan mudah berpindah ke restoran lain, seperti Wendy's
2. Threats of New Entry (Moderate Force)
Pendatang baru dapat mempengaruhi McDonald's. mengacu pada efek pemain baru terhadap
perusahaan yang ada. Dalam kasus McDonald's, new entry didasarkan pada faktor eksternal
berikut:
• low switching cost (strong)
• Biaya modal (moderate)
• High cost R&D (weak)
Karena switching cost rendah, konsumen dapat dengan mudah berpindah dari McDonald's ke
perusahaan makanan cepat saji baru. Juga, biaya modal moderate untuk mendirikan restoran baru
membuatnya cukup mudah bagi perusahaan kecil atau menengah untuk mempengaruhi
McDonald's.
3. Threats of Subtitute Product
 Subtitute product (High)

• Biaya beralih rendah (High)

• Rasio kinerja-terhadap-biaya tinggi (High)

Ada banyak pengganti produk McDonald's, seperti produk dari produsen makanan rakyat dan
toko roti lokal. Konsumen juga bisa memasak makanan mereka di rumah. Hal ini juga mudah
untuk beralih dari McDonald's ke pengganti ini (biaya switching rendah). Selain itu, substitusi ini
kompetitif dalam hal kualitas dan kepuasan konsumen. Dalam elemen analisis Lima Kekuatan
McDonald's ini, pengganti merupakan isu utama yang harus ditangani perusahaan melalui
pendekatan seperti peningkatan kualitas produk.
4. Bargaining of Suppliers
 Large number of supplier (Weak)
 High overall Supply (Weak )

Relative abundance of materials like flour and meat reduces individual suppliers’ influence on
the company. Thus, this element of the Five Forces analysis shows that external factors combine
to create the weak supplier power.
5. Bargaining Power of Buyers
 Low switching costs (High)
 Large number of providers (High)
 High availability of substitutes (High)

because of market saturation, consumers can choose from many fast food restaurants other than
McDonald’s. This condition makes the bargaining power of buyers a strong force in affecting the
company’s external environment

Ford Motor Indonesia :

1. Competitive Rivalry
 High aggressiveness of firms (strong force)
 High exit barriers (strong force)
 Moderate number of firms (moderate force)

Ford needs to compete against top players (e.g. Toyota) that aggressively innovate and market
their products. Also, the automotive industry has high exit barriers, which means that firms
would rather keep competing with Ford than to close their business, because of the high costs
and investments. Such a condition exerts a strong force of competition against Ford
2. Bargaining power of buyers
 Moderate switching costs (moderate force)
 Moderate size of individual purchases (moderate force)
 Moderate availability of substitutes (moderate force)

Ford Motor Company’s customers face moderate switching costs, which are the consequences of
moving from one firm to another. In this case, customers can easily transfer to other firms,
although infrequently because automobiles are big-ticket items. Also, each purchase of Ford’s
products is moderate in terms of its price and contribution to the company’s revenues.
3. Bargaining power of suppliers
 Moderate overall supply (moderate force)
 Moderate population of suppliers (moderate force)
 Low forward vertical integration (weak force)

The moderate overall supply and moderate population of suppliers give suppliers significant but
limited bargaining power on firms like Ford. Also, most of these suppliers have low forward
vertical integration, which means that they do not own or control the distribution and sale of their
products to Ford

4. Threats of substitutes
 Moderate availability of substitutes (moderate force)
 Moderate switching costs (moderate force)
 Low performance of substitutes (weak force)

here are considerable substitutes to Ford’s products, including public transportation and
bicycles. However, these substitutes are not always available or appropriate in certain areas or
situations. In addition, the switching costs are moderate because, even through Ford’s customers
can shift to using these substitutes
5. Threats of New Entrants
 High capital costs (weak force)
 High cost of doing business (weak force)
 High cost of brand development (weak force)

Companies like Ford commit to huge spending to set up and maintain their businesses and
facilities. These costs are a barrier to entry that weakens the threat of new entrants. In addition, it
is costly to develop a strong brand comparable to Ford’s, thereby making it difficult for new
entrants to effectively compete against industry giants.
From the five porter analysis we can conclude in food industy and automotive industry totally
different. We can see from each point five porter analysis marketing competition in each industy
have different pattern. So we can say food industry have high profit and otomotif industry low
profit based on “Fortune 500”

4. Porter identified 4 generic strategies that can be used to both classify company behaviour and
drive company behaviour. They’re all around gaining competitive advantage, so if you’re at
currently looking at your strategy then reminding yourself of the generic strategies can be very
useful.

The Cost Leadership Strategy is where a business focuses on reducing the cost to deliver
the products or services to a customer, ensuring you’re more profitable and thus can add
shareholder value or invest in other parts of the business.

There are a number of factors to consider when you’re going for Cost Leadership:
 What impact will the drive down on costs have to your customers and employees?
 Is it maintainable as you scale?
 How will you reinvest the additional profits of the business?
 How will you produce the lowest cost delivery vs your competitors?
 Will any of the saving be passed on to customers?
 Can you maintain your position as the lowest cost, or will competitors catch up?

For example I will explain hot PT Indah Kiat choosing cost leadership strategy
Cost Driver

Purchasing Materials Order size

Location of supplier
R&D Number of frequency of new paper type
Efficiency process
Production Process Capacity utilization
Scale of Plants
Quality Control Level of quality target
Frequency of deffect
Inventories Finished product Predictability of sales
Customer willingness to wait
Sales and Marketing Budgeting of advertisement
Strength of existing reputation
Sales volume
Distribution Number of channel
Sales per channel
Frequency defect requiring repair under
warranty

Make Assumption total cost driver each department

Department Cost Total Cost (%)

Purchasing Materials 1.657.671 58,49
R&D 85.028.34 3
Production Process 506.685 17,88
Quality Control 85.028.34 3
Inventories Finished product 85.028.34 3
Sales and Marketing 174.623 6
Distribution 226.742.24 8,63

From the data, we can see the linkage of departments such as :

 Controlling from upstream to downstream
 High quality of raw material reduce cost of defects at later stages
 Accurately in paper processing reduct defects

From the linkage, there are opportunitis for cost reduction, like :
  Production:

Institute -just-in-time component supply to reduce inventories

Use of raw material with good quality and efficient
 RND:

Making variety of materials with existing components

Consistency while controlling the quality of new products
 Quality Control:

Quality control is more stringent to reduce the defect that causes the product return
Outsource for jobs that do not require special skills

With Cost leadership strategy it will give PT Indonesia Kiat such as :

As a leading global pulp-and-paper company, is delivering innovation, sustainably and
responsibly, working together to secure a better future of our customers, communities,
employees, shareholders and customers .by offering functional and good quality product
To minimize waste in the pit scrap paper production system at PT. Indah Kiat Pulp and
Paper Tbk, the company, should further increase the implementation of the lean supply chain
which will increase productivity to reduce the total manufacturing lead time and supply chain
lead time as well as increase the paper efficiency cycle process at PT. Indah Kiat.
So by identifying cost saving potentials, PT. Indah Kiat should Use Just In Time supply
(Production), Making variety of materials with existing component (RND/Design /Engineering),
Outsource for jobs that not require special skills (Quality Control).

3. A competitive advantage is an attribute that enables a company to outperform its

competitors. This allows a company to achieve superior margins compared to its competition and
generates value for the company and its shareholders. A competitive advantage must be difficult,
if not impossible, to duplicate. If it is easily copied or imitated, it is not considered a competitive
advantage. When a firm sustains profits that exceed the average for its industry, the firm is said
to possess a pompetitive advantage over its rival.
 According to the resource, in order to develop a pompetitive advantage. The firm must have
resources and capabilities that more flexible than comperitors. For resource are asset to useful for
creating cost advantage or differentiation. There are example of resources :
 Technology
 Reputation of the company
 Brand equity

Capabilities refer to company ability to utilize resource effectively. For example ability to
bring a product to market faster than competitor.
To construct competitive advantages, company must understand about :
 Benefit : Companu must be clear what benefit ther product or service provide
 Target Market : Company must establish wo his purchasing our product and how to get
target market they want ?
 Competitor : Its important to know who is your competitor, what competitor strategy to
get they target market.

From the steps we can chose what company should executing plan, Cost advantage (Cost
leadership strategy) or Differentiation advantage ( different strategy ). Its will make value
creation for the company than other competitors, make company more profit than competitor.
 REFERENCES
https://www.mindtools.com/pages/article/newSTR_82.htm#:~:text=According%20to%20Porter's
%20Generic%20Strategies,Cost%20Leadership%2C%20Differentiation%20and
%20Focus.&text=All%20of%20this%20is%20achieved,those%20of%20the%20organization's
%20competitors.
https://getlucidity.com/strategy-resources/introduction-to-porters-generic-strategies/
https://strategiccoffee.chriscfox.com/2017/05/porters-generic-strategies-and-how-to-use-
them.html
https://www.investopedia.com/terms/p/porter.asp
https://www.indonesia-investments.com/business/business-columns/automotive-sector-ford-cars-
to-return-on-the-streets-of-indonesia/item8264
https://asiapulppaper.com/investors/annualreports