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The Indonesian Journal of Business Administration
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The Indonesia Journal of Business Administration(IJBA) is a business journal that bridges the gap between business research and practice, evaluating and reporting on new research to help readers identify and understand significant trends in their fields. The IJBA seeks to publish papers relating to business, broadly defined. It publishes articles that address both theoretical and practical issues in the broad areas of Business Strategy and Marketing, People and Knowledge Management, Entrepreneurship and Technology Management, Decision Making and Strategic Negotiation, Operation and Performance Management, and Business Risk and Finance.Contributing academicians and researchers are encouraged to address a variety of concerns relating to all areas of business. We also encourage students to use an interdisciplinary approach to analyzing a topic, which often yields interesting and novel papers. The published articles provide valuable insight into matters of broad intellectual and practical concern to academicians and business professionals. The Journalis published three times a year: in April, July and October. The journal is mainly an outlet of MBA ITB students to publish their final project works, although it also accepts articles written by students at masters level from other institutions. A published paper is an honor that will be unambiguously beneficial for professional and academic careers, especially for those who want to attend graduate/professional schools. This means that papers written in relations to Accounting, Economics, Finance, Marketing, Management, Operations Management, Information Systems, Business Law, Corporate Ethics, and Public Policy all qualify for submission. Information on the journal format can be found in the journal's website. The number of pages must be at 10 pages. After published, the journal article will be available electronically at the journal's website. Print ISSN: 2252-3464; Online ISSN: 2252-9284
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Articles 42 Documents
Search results for , issue "Vol 5, No 1 (2016)" : 42 Documents clear
Business strategy for pt. Garuda indonesia tbk. Base on operation and finance ratio performance period 2011-2015 Mangiring Ganda Parulian Butar Butar, Paul; Hamsal, Mohammad
The Indonesian Journal of Business Administration Vol 5, No 1 (2016)
Publisher : The Indonesian Journal of Business Administration

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Abstract: In 2011-2015, PT Garuda Indonesia, experienced lots of challenges started from the increment of aviation fuel which increase to the end of 2014, depreciation of rupiah and unexpected economic growth. Those three things caused PT Garuda Indonesia Tbk suffered a loss and reached the peak losses in 2014 at the amount of US$ (371.974.942). As the condition described above, the operating performance of work and financial ratios in the period 2011-2015 should be analyzed performance of financial ratios covering liquidity, activity, solvency and profitability while operation performance is analyzed by using PESTEL Model , The Five Forces Model, 4P  and VRIO and then reanalyzed by using SWOT analysis / TOWS, afterward do differentiation strategy and the value proposition alignment. The result of analysis found that the loans of PT Garuda indonesia Tbk exceeded its assets, that all activities done by this company were financed by the loans; work process that are not well integrated; a constant ASK though the airplane annually increases; competitors dominate domestic market; the lack of experts for aircraft maintenance cause readiness of the airplane decreases in 2014 into 99.27 with the use of aircraft wer also getting down into 9.08 in 2014. Thus, it is recommended to PT Garuda Indonesia Tbk to develop a high performance manpower (collaborating with polytechnics and leading universities), build an flight's IT system that all units can be fully integrated and the customers can facilitate well; applying SLA (Service Level Agreement) or KPI system in all units; reviewing routes (considering the favorable and unfavorable for maintenance); postponing the plan of buying a new aircraft till ASK increased in accordance with the number of the aircraft and an innovation where Full Carrier Service has a low cost without reduce standard for comfortable and Safety so it can compete with the domestic and international competitor. It can be seen from the relation between cost, volume, and price that PT Garuda Indonesia should do a business strategy with affordable prices for the customers can feel a prestige, safety, and comfort flight. Therefore, Garuda Indonesia flight will always be in demand and it will increase the ASK. Thus, the price will decrease and the margin will arise significantly. Keywords: Financial Ratio, CVP, ASK, Uniqueness, FSC with Affordable Price
Project Management Performance Improvement Using Maturity Model at Architecture Firm Meirani Kusuma, Atika; Bekti, Rudy
The Indonesian Journal of Business Administration Vol 5, No 1 (2016)
Publisher : The Indonesian Journal of Business Administration

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Abstract - The degree of competition, complexity and uncertainty are high in construction industy. It was observed that the occurrence of unexpected events and changes has caused consequential problems arise throughout the project. In 2015, PT. Penta Rekayasa could manage a good customer satisfaction rate, but the organization experinced over budget in 66.67% of overall and over manhour per drawing in 22.22% of overall project. It is known that organizations that are not mature can still deliver outstanding results but at the same time have other projects that could not be performing well. It is becoming important to understand current maturity level of project management and highlights the key areas as the baseline to make continuous performance improvements. The aims of this research are to assess the current maturity level of PT. Penta Rekayasa and generating effective improvements recommendation in project management area to improve the business performance. To assess the current maturity level, this research using maturity model that focuses on process perspectives with its embedded generic attributes. Those perspectives and attributes are assessed at five maturity level. It allows PT. Penta Rekayasa to have its methods and processes assessed according to management best practice. Gap analysis also used to identify key areas as the baseline for affective improvement. After conducting the assessment and analysis, it is discovered that PT. Penta Rekayasa has level 2 in its project management maturity, which means that the organization has managed its project with various project management frameworks, however, its processes and procedures are running in minimum standard. There is inconsistency of organizational guidance and current performance lacks concept realization. There are prioritized key areas that are needed to improve such as, risk management, planning and estimating, resource management, management control, scrutiny and review,.capability development, and benefits management. PT. Penta Rekayasa is recommended to acquire maturity level 3 by maturing specific processes, concepts and generic attributes in discovered key areas of improvement in order to achive a defined process level and have a consistent set of standards used with clear process owners across the organization that eventually will improve business performance. Keywords: project management, maturity model, improvement, architecture firm
Proposed business strategy for “auraku skin solution” in order to gain the competitive advantage Qonitza, Maghfira; Hamsal, Mohammad
The Indonesian Journal of Business Administration Vol 5, No 1 (2016)
Publisher : The Indonesian Journal of Business Administration

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Abstract – Auraku Skin Solution is a company engaged in the services sector, especially skin care. This company is a branch company located in Karawang and was founded in 2011. Currently, there are two competitors in Karawang skin care companies that offers all-in-one skin care and become the winner of the competition. It has an impact on Auraku Skin Solution’s revenue decreased in late 2014 - mid 2015. In order to survive in the competition and to increase revenue, Auraku Skin Solution requires a sustainable competitive advantage in doing business. To gain competitive advantage and win the competition, Auraku Skin Solution must adapt to the new business models canvas development and strategies resulting from the TOWS Strategy. The conclusion of this strategy, Auraku Skin Solution must be added advantages in its business and conduct marketing activities to promote their value proposition. Keywords: Business Strategy, Business Canvas, TOWS Strategy, Skin Care Industry.
Optimization of e-money and remittance service through cellular service business Syarief, Syachrial; Wicaksono, Agung
The Indonesian Journal of Business Administration Vol 5, No 1 (2016)
Publisher : The Indonesian Journal of Business Administration

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Abstract - Inclusive Financial declaration by the Government of Indonesia since 2006 has been followed by an opportunity involvement of parties interested in developing digital financial services for the people of Indonesia. The aim of this thesis was to analyze the development opportunities of Indosat’s financial services with brand name “dompetku” can grow through cooperation with distribution channels that had been done for the distribution of mobile products to customers throughout Indonesia. As of the time of this paper, distribution line that has been used in the cellular business has not become an alternative choice of developing e-money services and remittances. By using several framework analysis approaches like PESTEL Analysis, Porter 5 Forces Analysis and SWOT Analysis, then set out the partnership business model through the Business Model Canvas. To gain a deeper understanding and focus on the issue of the development of digital financial services, the authors use qualitative methods or qualitative data collection. Advantages of this method are the ability to present a complete description related to personal experiences that relate to a particular problem. Generally this is done with interviews, open-ended questions, or focus on a group. There are several factors that can influence the development of these digital financial services. Continuous evaluation of the regulations that apply in encouraging the development of financial inclusive is the key to get successful development of Digital Financial Services. According to Bank Indonesia Regulation Number 16 of 2014, author recommends to utilize "pulses" agent distribution channels and a modern shopping network with more attractive business model. Various risk factors that may arise should be anticipated through the development of risk analysis and mitigation.  Keyword: digital financial service, financial inclusive, electronic money, e-money distribution channel, remittance.
The economics of production factors and operational cost in medium businesses in bandung: hospitality, restaurant and beauty center Ayuningtyas, Harvita; Budi nugroho, Anggoro
The Indonesian Journal of Business Administration Vol 5, No 1 (2016)
Publisher : The Indonesian Journal of Business Administration

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Abstract - The Government’s decision to raise the Basic Electricity Tariffs (BET) turns out according to party sequence is caused due to PLN from fuel price hike are getting bounced. When fuel prices go up automatically the operational cost increased so that the budget of PLN funds allocated to operating costs is insufficient. The existence of the phenomenon of increasing the fuel price, Basic Electricity Tariffs (BET) and Regional Minimum Wage (RMW) greatly affect corporate business then the author doing research on these three factors associated with the Operational Cost especially in MICE and tourism industry in Bandung. In this research, external and internal analysis is used to determine the economics situational conditions. The data are collected from ABC Hotel, DEF Restaurant, and GHI Beauty Center. The company size analysis is also used to determine which company`s category that can reflect MICE and Tourism industry`s condition. In order to find the effect of BET, RMW, and Oil price to operational cost. After doing every analysis, there is a finding that BET and RMW are have significantly positive effect with operational cost in MICE and tourism industry in Bandung. In order to reduce the operational cost in MICE and tourism industry, using the technology of electricity component such as LED light, Inverter AC, and LED TV could reduce the electricity cost significantly. Furthermore, in order to reduce RMW`s cost, force planning is used. The effect of using those ways could reduce RMW`s cost significantly. Regression analysis shows that BET has significantly positive effect to operational cost while RMW and gasoline price have no effect in ABC Hotel. In DEF Restaurant, there are no variables have positive effect. In GHI Beauty center BET and RMW have significantly positive effect to operational cost while gasoline price has no effect. In order to reduce Operational Cost, a new strategy is needed for each company. With new strategy, ABC Hotel could reduce Operational Cost as amount as 795 billion rupiah and GHI Beauty Centre could reduce Operational Cost as amount as 120 billion rupiah. Keywords: MICE, Tourism, Operational Cost, BET, RMW, Fuel Price
New business strategy to improve the enterprise resources planning (erp) system in order to increase the performance and efficiency of the operational maintenance program: case of chevron indonesia Kresno Adikusumo, Linung; Dung Do, Anh
The Indonesian Journal of Business Administration Vol 5, No 1 (2016)
Publisher : The Indonesian Journal of Business Administration

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Abstract— Since last year the oil and gas industry in grim conditions. Almost all companies in difficult conditions as a result of oil and gas prices were low. Even today a giant oil companies like Exxon, Chevron, Shell and others also began to be affected. Chevron, the current was devastated because the company is focused on upstream business where oil reserves are available today are secondary and tertiary reserves. Investment in the exploration of oil and gas reserves of the secondary and tertiary very expensive because it requires a modern and sophisticated technology. Unsuccessful drilling activity will result in tremendous losses in some oil and gas fields. External factors also affect the company in how to run a business; local government permits, issue a contract extension, the discovery of shale gas, and global economic conditions greatly affect the company to make the best strategy. These conditions forced the company to reduce exploration activities and focus more on production. Production is the most economical series in the upstream business chain. Crude oil is a commodity, the competition occurs in differentiating the company to improve the effectiveness and efficiency of the business. Companies must also adhere to the existing rules so as to build the confidence of the shareholders. Efficiency through the development of organizations that are into is a must, if not then Chevron would not survive in competition with rivals. To create a sustainable competitive advantage, Chevron should remain sustainably strengthen the factor that differentiates it from its competitors. Technology as a differentiator to be able to enhance the company's core competencies, thus making a positive impact on the company's core business. ERP (Enterprise Resource Planning) system is essential to be able to be a tool that is capable of integrating the functions of important business. Module EAM (Enterprise Asset Management) is part of the ERP system and as part closest to the Operation Maintenance and should be able to support the maintenance business in order to achieve better business efficiency and effectiveness through increased system reliability, capability (usability and functionality) and sophisticated reporting system. In other words, implementation of ERP systems In other words, implementation of ERP systems and specifically to the EAM module will be able to optimize production by reducing the LPO (Lost Production Opportunity). Proposal business strategies to increase investment in ERP are: 1. Revision JDE governance in Indo Asia Business Unit and IT support Team, 2. Build a Business Intelligence as a solution for reporting requirements, 3. Realize the JDE upgrade project to improve the reliability and capabilities of the system, 4. Implement Viziya to strengthen the maintenance scheduling system, 5. Conduct regular visits to customers, holding gatherings for Power Users, and training regularly. Some of the proposed strategies have been approved by the management of Chevron Indonesia, while several other strategies are still in the approval process. The new business strategy will strengthen the ERP system particularly EAM module to improve the performance and efficiency of program maintenance operations and strengthen core competencies and create a sustainable competitive advantage. Keywords: Enterprise Resources Planning, Enterprise Asset Management, Business Strategy Introduction
Proposed Business Strategy for Inditex Global Mukmin Qowiy, Ismail; Hudrasyah, Herry
The Indonesian Journal of Business Administration Vol 5, No 1 (2016)
Publisher : The Indonesian Journal of Business Administration

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Abstract - Rising prosperity and a spread of wealth have given a huge and expanding market for textiles and clothing industry. Market are expanding and so the competition. Inditex as a leader in the industry seek this opportunity to increase its standing among the top player of this industry. With its “fast fashion” model, Inditex has been performed exceptionally well, proofed by its huge channel of 1,700 stores in 86 countries leaving behind its main rival like GAP and H&M. However the success not last long. Contrast with rapid expansion several years before, in 2013 annual sales report Inditex began showing sign of slowdown. For the last few years, company has been aimed to find new source of profit due to shrinking growth. The aim of this study is to find out the root cause behind the slowdown and to formulate the strategy to tackle the problem and enhance the growth of Inditex. This study is divided into four chapters. The first chapter talks about the outlines of the research background and highlight the objective of the study. Chapter two talk about business issue and the analysis of business environment. Chapter three provides the business solution alternatives. Last chapter discusses the application and practice of the solution. It highlights the execution of the business strategy on four aspect; marketing, finance, research & development (R&D), and management information system. This chapter also presents the conclusion of the main findings.  Keyword: Business strategy, Fast fashion, Growth slowdown, Business Expansion, Apparel industry
Analysis and solutions to improve account receivables of traditional trade business of company xyz Manggolo Putro, Tidar; Herlanto Anggoro, Achmad
The Indonesian Journal of Business Administration Vol 5, No 1 (2016)
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Abstract - The company business in traditional trade segment grew at double digit rate. However, it faces an issue of even higher increase rate in its relevant Accounts Receivable (AR). This deteriorating AR performance is therefore an important business issue to be resolved in this project. The research methodology used includes activity observation and interview during sales area visit, and use of company data to measure the impact of the AR loss. To analyze the root cause, several conceptual frameworks are used, such as time value of money, cash conversion cycle, average collection period, and credit management. The research finds out that the causes of the problems include insufficient insightful reports that can trigger actions on the drivers of the AR aging, weak credit worthiness assessment process causing confusion in granting credits, and unclear collection performance system. This research recommends solutions including deployment of more effective reports such as AR loss tree and excess financing dashboard that pinpoints where the issues are and hence the responsible function to follow up. A standard business process of customer creditworthiness assessment has been designed and is proposed to be implemented across all area, and similarly for standard collection process, which differentiates treatment based on the type of the distributors, and include new collection role with clear accountability. Furthermore, ideas on speeding up collection are introduced, consisting of Distributor Financing and Cash Discount improvement. Both schemes rely on discipline execution of the new collection process. Keywords: Account Receivable, Collection management, Credit management
Measuring implementation of risk management using iso 31000 at pt angkasa pura ii (persero) (case study at sultan syarif kasim ii international airport, pekanbaru) Marthalius, Anton; Aldianto, Leo
The Indonesian Journal of Business Administration Vol 5, No 1 (2016)
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Abstract - In running a company, management is inseparable from risk exposure moreover the nature of activities in PT Angkasa Pura II (Persero) that run an airport management business. To effectively manage risk the company required to implement a good Enterprise Risk Management (ERM). As part of the Risk Management implementation process, PT Angkasa Pura II (Persero) has formulated Risk Management Guidelines (Manual) and has implemented policies and risk control measures. However, PT Angkasa Pura II (Persero) still needs to conduct comprehensive evaluation of  Risk Management in order to get and ideal of the company risk management maturity level. Risk Management maturity level analysis can be conducted through degree of maturity level by using Risk and Insurance Management Society (RIMS) methods for Enterprise Risk Management (ERM). These research is an explanatory research that used qualitative and quantitative analysis. The data processed in this research is primary data through survey, questionnaire, interview and secondary data through data of the existing risk management process in the company. By measuring the existing value of risk management implementation maturity level, it is expected that PT Angkasa Pura II (Persero) espesialy at Sultan Sayrif Kasim II International Airport, Pekanbaru can determine whether the implementation of risk management is effective or not and then this research can generate recommendation for improvements so the implementation of risk management maturity level is in accordance with the desired target from the management.  Keywords: Risk Management Implementation, ISO 31000, Risk Management Maturity Level, Risk and Insurance Management Society (RIMS).
Scenario planning of investment at pt. Pertamina refinery directorate RM Dony, RM Dony; Sunitiyoso, Yos
The Indonesian Journal of Business Administration Vol 5, No 1 (2016)
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Abstract - Currently energy consumption especially in Indonesia tends to increase from year to year, due to advances in technology and science, almost all aspects of life requires energy, such as for electricity generation, transport, commercial activities, industry and domestic purposes. The energy consumption tends to have a significant increase in the last 10 years, so the company must invest in order to increase production capacity so as to meet the consumer demand. Scenario planning analysis is used to develop strategies for a period of five years. Based on some influencing factors that identified from interview, two key uncertainties can be developed which are 'demand for fuel' and 'investment feasibility’. Both key uncertainties then plotted into four quadrants with the positive and negative extreme conditions to get the four scenarios, namely 'head down and recovered'; 'preparation for the future'; 'remain calm and move slowly' and 'growth ahead'. Of the four scenarios can be formulated three possible strategies to be applied by a company which are major investment, the selected investments and focus on operations. Major investment strategy focused on increasing production capacity in addition also to increased complexity and flexibility of existing facilities or build new refineries. The selected investment strategy is generally more focused on increasing the complexity and flexibility of the existing facilities. Focus on the operational strategy generally focused on operations rather than investment concerned with efficiency and product diversification. Implementation plan is needed to describe in more detail all strategies that already developed to be fitted to the entire scenario that may face by the company in the future.   Keyword: energy, scenario planning, investment, refinery, strategy.