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.