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CHAPTER I
Planning & Formulation of the Strategy
(Using Balance Scorecard Approach)
1.1 Purpose of the Practicum
1. Students can analyzing SWOT of organization
2. Students can formulating vision and mission of organization from SWOT analysis
3. Students understand about steps to making strategy and work program.
4. Student can making strategy and work program to realizing company vision and applying
it.
1.2 Input
1. New family Car for output mission and vision
2. Mission and vision for develop company strategy
1.3 Output
1.4.1 SWOT Analysis and Grouping (Group + & Group -)
Internal
Strengths Weaknesses
The use of human resources & qualified
technology
New product development
Having SOP that easy and clear
understanding
Having not produce many product yet
High selling value Limited of service network
Spare part are widely available on the
market
Difficulties in obtaining customers
satisfaction
Table 1.1 IFAS Analysis
External
Opportunities Threats
The existence of free trade in ASEAN High government policy for tax
Product market share is big High competitive industry
Having effective coorporate Rise and fall of currency values
Accuracy in product launches Cheaper product competitor
Table 1.2 EFAS Analysis
Grouping
SWOT Group + Group -
Internal
The use of human
resources & qualified
technology
New product
development
Having SOP that easy
and clear understanding
Having not produce
many product yet
High selling value Limited of service
network
Spare part are widely
available on the market
Difficulties in obtaining
customers satisfaction
External
The existence of free
trade in ASEAN
High government policy
for tax
Product market share is
big
High competitive
industry
Having effective
coorporate
Rise and fall of currency
values
Accuracy in product
launches
Cheaper product
competitor
Table 1.3 SWOT Analysis Grouping
1.4.2 Vision and Mission Statement
Blueprint Vision Statements
SWOT
Questions
What products that
you want to
create? Why the
products made?
What kind of
product that you
want made?
How the
company in 10
years to come?
Answers
Group
+
The use of human
resources & qualified
technology
Economical family
car. Because in our
country, family car
became primadona
in 5 years ago. So,
our company want
to make the family
car that
economical,
Quality and good
after service
The car use for
daily live with
capacity for
family and
implemented
high technology
for the attribute
and machine.
The product is
safe and comfort
for the
passenger, then
the performance
itself can be
assurance for 10
years.
The company
can lead the
market
especially in
family car with
good after
service sales.
Spare part are widely
available on the
market
The existence of free
trade in ASEAN
Product market share
is big
Group -
New product
development
Having not produce
many product yet
High government
policy for tax
Rise and fall of
currency values
Vision Statement
Being the leader in the market automotive industry that
provide low price, good quality, and the best after service
sales
Table 1.4 Form Blueprint Vision Statements
Blueprint Mission Statements
Organization Name Questions
What you do? For whom do you
do it?
How you will get it
done?
Answers
PT. Mobil Unggul
Indonesia
1. Become the
market leader
for automotive
industry at least
in 50 country in
the world.
2. Continous
improvement for
the production
system, quality,
machine
performance,
design of the
product and
implement
competitive
pricing
1. For customer
satisfaction
2. The company
itself
1. Improving in
research and
development
field
2. Expand the link
for marketing
and also
advertising
3. Supported with
compatible
worker &
technology
4. Good
production
system
Mission Statement To being the leader in automotive industry that implemented
competitive pricing
1. Improving in research and development field
2. Expand the link for marketing and also advertising
3. Supported with compatible worker & technology
4. Good production system
Table 1.5 Form Blueprint Mission Statements
1.4.3 Strategy Formulation
Internal
External
Strengths
- The use of human
resources & qualified
technology
- Having SOP that easy
and clear understanding
- High selling value
- Spare part are widely
available on the market
Weaknesses
- New product
development
- Having not produce
many product yet
- Limited of service
network
- Difficulties in obtaining
customers satisfaction
Opportunities
- The existence of free trade in
ASEAN
- Product market share is big
- Granting the discount to loyal
customers
- Accuracy in product launches
SO
1. Continous
improvement
supported with human
resources and
qualified technology
2. Accuracy product
launches and give the
discount can affect
the customer
satisfaction
WO
1. Expand the networking
of the company
2. Develop new plant with
high capacity
3. Doing survey customer
Threats
- High government policy for
tax
- High competitive industry
- Rise and fall of currency
values
- Cheaper product competitor
ST
1. Efficience and
effective cost
production
2. Adjust the total cost
based on the tax
WT
1. Doing market research
2. Supplier selection with
loyalth and good
criteria
Table 1.6 Matrix SWOT
Formulation of the strategy
1. Continous improvement supported with human resources and qualified technology
To follow the growth in automotive industry, the company should improve the product
continously. This activity is a strategy to survive in this bussiness.
2. Accuracy product launches and give the discount can affect the customer satisfaction
To build the company more bigger, we must expand our networking. This expansion can
be to our supplier, distributor and some relation in automotive industry.
3. Expand the networking of the company
Try to expand the networking with all aspect that involve in business process such as
goverment, society, supplier and other with intention to grow together.
4. Adjust the total cost based on the tax
Each country have their own policy for the tax. Based on our calculation for total cost, we
can calculate that our product not to expensive if plus with the tax.
5. Supplier selection with loyalth and good criteria
Supplier selection, our company can produce the product based on the material that
supplier send. At least we must have 3 supplier to fullfill our requirement and why we use
3 supplier, because the other supplier can substitute the other supplier when the supplier
can deliver the material.
6. Develop new plant with high capacity
This strategy will be implemented to faced low production to maximalized the market
share in the competitiveness and handle fluctuative demand that will be happened.
7. Doing survey customer
Its difficult to obtain customer satisfaction if we do not know what customer voice really
want. Hence, we try to implemented strategy such as doing survey for customer before
and after customer buy our product to handle before and after customer service.
8. Efficience and effective cost production
To faced high goverment policy tax and cheaper product competition, the company will
be implemented efficience and effectiveness cost production with Total Quality
Management that supported good SOP, human resource, and high technology
9. Adjust the total cost based on the tax
Because of the high tax policy from government, the company should adjust the pricing
cost with the tax to get profitability for company.
1.4.4 Target Strategy
1. Finance perspective
- Profitability
The main purpose in bussiness world is to get the profit from our product. Why it is became
important, because to do our bussiness we need money and if we can increase our profit the
investor will invest in our company. So, our company can growth rapidly.
- Low cost Production system with good quality
To handle with high tax and competitiveness pricing product, the company should try to
develop good production system with criteria low cost and keep maintain quality with focus
to optimized every detail aspect in production system.
- Lead the market
Our company can increase the profit constantly, the number of our customer are increase and
some investor invest their money in our company. This is cool because we can lead the
market based on those three parameter.
2. Customers perspective
- Customers satisfaction
Satisfaction of the customer is the key for the customer comfort with our services.
- Customers belief
Customers belief, we can give some guarantee and 24 hours services, so the customers feel
happy and safe if something happen with our products.
3. Internal bussiness perspective
- Quality of the product
Quality of the product is the most important thing, customer will buy our product because of
our quality.
- Innovative design & product development
In this era product with innovative design can get the customers attention. To do that we must
do continous improving in product development.
4. Learning and growing Perspective
- Skill of employees
Skill less employee can do their job based on company obligation. Each company has their
own obligation to make the product.
- Welfare of the customers
To make our employee loyal with their company, welfare for the worker are became main
concern.
1.4.5 Strategy Mapping
Finance
Customers
Internal
Learning
Table 1.7 Mapping Strategy
Profitability
Lead the market Good pricing
Customer’s satisfaction Customer’s belief
Quality of the productInnovative design and product
development
Welfares of employeesSkill of employees
1. Learning
The first basis or source for satisfied strategy mapping for above table are welfares of
employees and skill of employees. This two state will be influence the internal perspective
of our company where “welfares of employees” can influence “quality of the product”
with increase the morale of employees and “skill of employees” can infulence both state
internal perspective “quality of the product” and “Innovative design and product
development”.
2. Internal
The second step in the information flow for above strategy mapping is internal perspective
where “quality of the product” and “Innovative design and product development”
involved in this perspective then can be influence customers perspective. Both of the
internal perspective can influence both of customer perspective that are “customer
satisfaction” and “ customer belief” because with gain performance both internal
perspective can achive what customer want it and need it.
3. Customer
The third step in strategy mapping above is customer perspective where there are two state
that are “customer satisfaction” and “ customer belief”. Both of the customer perspective
can influence directly two of the finance perspective and after that can get third of finance
perspective that is profitability.
4. Finance
The last perspective is finance perspective where in this mapping strategy there are three
state of finance perspective that are “lead the market”, “good pricing”, and “profitability”.
1.4.6 Work Program
Target Strategy Objective Measurement Target Working
Program
Finance
- Profitabilit
y
- Good
Pricing
- Lead the
Market
- Market
condition
- Customers
demand
- Total Cost
- Increasing
profit each
year
- Effective
and
efficiency
production
system
- Lead the
market
- Expand the
distribution
of product
- Implemented
continuous
improvemen
t in all
aspect
Customers - Customer’
s Belief
- Customer’
s
Satisfactio
n
- Level of
Demand
- Level of
Satisfaction
- Level of
Demand
- Customer
services
- Give
guarantee for
the product
- Open new
branches
Internal - Innovative
Design &
Product
Developm
ent
- Quality of
Product
- Level of
Satisfaction
- Customer’s
Satisfaction
- Research
and
developing
- Skill of
Employees
- Test &
interview
- Improvemen
t Skill
- Give periodic
training
Profit
Lead the market
Good Pricing
Customer’s satisfaction
Customer’s belief
Quality of product
Innovative design & research development
Welfares of employees
Skill of employees
Learning
- Welfares
of
Employees
- Level of
Satisfaction
- High
Productivity
- Health
insurance
Table 1.8 Working Program
1.4 Conclusion and Recommendation
1.4.1 Conclusion
This research about planning and formulation the strategy using Balanced Score Card
approach and determine the Strength, Weakness, Opportunity and Threath in PT. Mobil
Unggul Indonesia that walk in automotive bussiness with the product is family car.
Before we determine the SWOT of our company, the first thing is find the vission and
mission in PT. Mobil Unggul Indonesia. To determine the vission, we use grouping (group +
and group -) of our strength, weakness, opportunity and threath. And for mission in our
company, we use some question to find what is our mission to achieve our vission.
Vision
Being the leader in the market automotive industry that provide low price, good
quality, and the best after service sales
Mission
o Good production system
o Improving in research and development
o Expand the link for marketing and also advertising
o Supported with compatible worker & technology
After determine the SWOT in our company and grouping them based on group + and
group -, the next step is make the SWOT matrix to find the correlation each component. After
that we can formulate our strategy, in this case we conclude that there are 8 parameter such
as:
1. Continous improvement supported with human resources and qualified technology
To follow the growth in automotive industry, the company should improve the product
continously. This activity is a strategy to survive in this bussiness.
2. Accuracy product launches and give the discount can affect the customer satisfaction
Accuracy in product launches will break the other competitor, because we launch our
product when the customer nedd this. Beside that giving some discount can get the
customer to buy our product.
3. Expand the networking of the company
To build the company more bigger, we must expand our networking. This expansion can
be to our supplier, distributor and some relation in automotive industry.
4. Adjust the total cost based on the tax
Each country have their own policy for the tax. Based on our calculation for total cost, we
can calculate that our product not to expensive if plus with the tax.
5. Supplier selection with loyalth and good criteria
Supplier selection, our company can produce the product based on the material that
supplier send. At least we must have 3 supplier to fullfill our requirement and why we use
3 supplier, because the other supplier can substitute the other supplier when the supplier
can deliver the material.
6. Develop new plant with high capacity
This strategy will be implemented to faced low production to maximalized the market
share in the competitiveness and handle fluctuative demand that will be happened.
7. Doing survey customer
Its difficult to obtain customer satisfaction if we do not know what customer voice really
want. Hence, we try to implemented strategy such as doing survey for customer before
and after customer buy our product to handle before and after customer service.
8. Efficience and effective cost production
To faced high goverment policy tax and cheaper product competition, the company will
be implemented efficience and effectiveness cost production with Total Quality
Management that supported good SOP, human resource, and high technology
Based on those eight parameter we can mapping our strategy and make our working program.
1.4.2 Recommendation
By determine the vission and mission of the company, company can know the purpose of
their bussiness. Based on those colaborated by using SWOT analysis, company can mapping
their strategy and work program to defend in their bussiness, automotive industry specific
product is family car.