Mustika Ratu
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Transcript of Mustika Ratu
NAVIGATING THROUGH SOCIAL
AND ECONOMIC CRISIS
Delfiana – Rahadi – Reski – Reza - Teguh
Vision
To be a market leader in manufacturing traditional cosmetics and herbal with high quality of natural ingredients.
Missions
constantly produces high quality products that are formulated by selected natural ingredients. Capture all segments.
BACKGROUND
1997 Mustika
Ratu
Focus on Domestic
Speed up Internation
al Expansion
Background
Mustika Ratu is Indonesia’s leading manufacturer of cosmetics and traditional herbal supplements.
Mustika Ratu was established by Mooryati Soedibjo in 1975.
The Company made initial public offering and recorded its shares in PT. Bursa Efek Jakarta in 1995.
In 1998 there was a financial crisis in Indonesia, resulted in unpredictable prospect.
Core Competencies
Natural product ingredientexpertise in formulation of jamus and
cosmetics
FinancialNet SalesCOGS 0.33%Gross Profit -0.33%Operating Expenses
Selling 4.72%General and Adm 1.12%
Total Operating Expenses 5.84%Income From Operations -6.17%Other Income (Expenses)
Gain on foreign exchange - net 12.89%Market Development -4.12%
Intereset Income - net -1.19%Donation to Yayasan Dana Sejahtera
Mandiri-0.02%
Gain on sale of property, plant and equipment
0.26%
Amortization of goodwill 0.00%Miscellaneous 0.18%
other income - net 7.98%Income Before Provision for Income Tax 1.81%
Provision For Income Tax 1.35%Income Before Minority Interest in Net Loss (Earnings) of Subsidiaries
0.47%
Minority Interest in Net Loss (Earning) of Subsidiaries
0.06%
Net Income 0.53%
Increase/Decrease
Net income slightly increase in unpredictable condition
STRONG FINANCIAL HEALTH
Situation of may 1998
Worst Financial Crisis
-Decrease buying power-Decrease Profit Margin
Sales Decrease
Emerging Opportunities for speeding international expansion
Corporate Culture
Based on their motto Mustika Ratu believes customer satisfaction is number one priority. Inside the company Mustika Ratu believes in intimacy workplace, so each employee can be familiar to each other. Beside that Mustika Ratu encouraged their employee to work with high integrity and professionalism.
Corporate Resource
Their founder closed with government people at the moment.
Has widespread distribution channel in Indonesia
Has several foreign operation in Southeast Asia
Has extensive brand products to cover wide segment
IFAS TABLE
Factor Weigth Rating Average Stdev CV Value
1 2 3 4 5
StrenghtHas widespread distribution channel in Indonesia
0.190476 5 4 4 3 5 4.2
0.748331 0.8 4
Has several foreign operation in Southeast Asia0.14285
7 4 3 3 2 4 3.20.74833
10.45714
3 3
Strong financial product0.09523
8 3 4 3 4 3 3.4 0.32381 2Has extensive brand products to cover wide segment
0.142857 4 4 4 4 4 4 0
0.571429 3
Weakness
Many her customer is lower middle income0.14285
7 3 3 4 3 4 3.40.48989
80.48571
4 3
Raw material dependency0.19047
6 2 3 3 2 2 2.40.48989
80.45714
3 4
Did not have strong foreign awareness outside Southeast Asia
0.095238 3 3 4 3 3 3.2
0.304762 2
Total 13.09523
8
EFAS TABLE
Factor Weigth Rating Average Stdev CV Value
1 2 3 4 5
Strenght
Has widespread distribution channel in Indonesia
0.190476 5 4 4 3 5 4.2
0.748331 0.8 4
Has several foreign operation in Southeast Asia0.14285
7 4 3 3 2 4 3.20.74833
10.45714
3 3
Strong financial product0.09523
8 3 4 3 4 3 3.4 0.32381 2
Has extensive brand products to cover wide segment
0.142857 4 4 4 4 4 4 0
0.571429 3
Weakness
Many her customer is lower middle income 0.142857 3 3 4 3 4 3.4
0.489898
0.485714 3
Raw material dependency 0.190476 2 3 3 2 2 2.4
0.489898
0.457143 4
Did not have strong foreign awareness outside Southeast Asia 0.09523
8 3 3 4 3 3 3.20.30476
2 2
Total 13.09523
8
GE Matrix
Weight Rating ValueOverall Market Size 0.22 5 1.10Competitive intensity 0.165 3 0.50Distribution channel 0.13 3 0.39Pricing package 0.101 2 0.20Product innovation 0.162 3 0.49Inflationary vulnerability 0.074 3 0.22Crisis impact 0.148 4 0.59
Total 1 3.49
Element
Market Attractiveness
GE Matrix
Weight Rating ValueMarket share 0.169 5 0.85Share growth 0.076 3 0.23Product quality 0.318 4 1.27Brand reputation 0.114 5 0.57Performance effi ciency 0.138 3 0.41Distribution network 0.061 3 0.18Performance productivity 0.123 3 0.37
Total 1 3.88
Element
Competitive Position
GE Matrix
GE Solution
Invest heavily in most attractive segment
Build up ability to counter competition
Emphasize profitability by raising productivity
QSPMOpportunities AS TAS AS TAS
O1 the fourth populous country in the world 0.123 0 0 0 0.00
O2 Foreign market 0.121 0 0 0 0.00
O3 reaching high income target market 0.094 4 0.38 3 0.28
O4 decreasing number of local competitor 0.086 4 0.34 3 0.26
O5 high entry barrier due to geographical condition 0.074 4 0.30 3 0.22
Threat
T1 Economic crisis leads to increasing cost 0.125 3 0.38 4 0.50
T2 High raw material cost 0.105 3 0.31 4 0.42
T3 Increasing number of unemployement 0.081 0 0.00 0 0.00
T4 The retailer prefer to not hold many inventories 0.075 4 0.30 3 0.23
T5 Compete with foreign brand 0.115 3 0.35 5 0.58
1.0 0.00 0.00
Strength
S1 Has widespread distribution channel in Indonesia 0.190 4 0.76 2 0.38
S2 Has several foreign operation in Southeast Asia 0.143 0 0.00 0 0.00
S3 Strong financial position 0.095 3 0.29 4 0.38
S4 Has extensive brand products to cover wide segment 0.143 3 0.43 5 0.71
Weakness
W1 Many her customer is lower middle income 0.143 2 0.29 5 0.71
W2 Raw material dependency 0.190 3 0.57 4 0.76
W3Did not have strong foreign awareness outside Southeast Asia 0.095 0 0.00 0 0.00
1 4.69 5.44
Strategy: Concentration of Growth by entering foreign and domestic market
IMPLEMENTATION
Domestic
Door to door marketing
Direct selling
Reaching wide segment
International
Partnership with local brand
Distribution channel via agent