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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 1,144 Documents
Scenarion Planning Development of PT. Krakatau Posco Siregar, Lukman; Sunitiyoso, Yos
The Indonesian Journal of Business Administration Vol 8, No 2 (2019)
Publisher : The Indonesian Journal of Business Administration

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Abstract - Steel industry is an industry that has lots of uncertain factors. Some of uncertain factors that give impact to the steel industry are demand volatility, continuous overcapacity, and increased volatility in raw material prices. Rising trade tension and volatile currency movement are further increasing the uncertainty. Krakatau Posco, as one of the major steel producers in Indonesia is playing an important role in the success of the country’s national plan to reduce dependency on the steel imports in the future. Therefore, Krakatau Posco needs a comprehensive strategy formulation process based on the long-run understanding of the future. This final assignment is focused on the developing of a scenario planning as a vision and insight for Krakatau Posco’s decision maker to challenge the current thinking about the long-term strategy agenda of the company. As the result finding, raw material prices and government support become the most two critical and uncertain factors for Krakatau Posco to consider in the long run. These two factors create scenario matrix and form four plausible scenarios, they are Raw Material Chaotic, Steel Survival, The Lobbying, and Steel is King. Implication and options from each scenario are explored to identify alternative strategies. Furthermore, early warning signals are identified to address the movement of current condition toward one scenario or another. As the conclusion of this research, three strategic imperatives are defined as. They are long-term contract of raw material supply, creation of government relationship task force, and expansion of raw material storage capacity. Keywords : Steel Industry, Scenario Planning, Strategic Decision Making, Krakatau Posco
Layout proposition to enhance production performance of pt. Mutiara jaya prahasta Prawira, Pandu; P.K. Bintoro, Bambang
The Indonesian Journal of Business Administration Vol 7, No 3 (2018)
Publisher : The Indonesian Journal of Business Administration

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Abstract – PT Jakarta International Container Terminal (JICT) is the first container terminal that has the most advanced equipment in Indonesia. PT JICT has experienced uptrend of import dwelling time using linear trend model has increased in from 2016 to 2017, as well as YOR. The situation in the field shows that the deposition or accumulation of containers might be prolonged which made dwelling time became longer and it affected the level of yard occupancy ratio (YOR). The methodology used in this research is Kepner – Tregoe (KT) Approach, which was supported by Cause and Effect Analysis (Fishbone Diagram) in problem analysis and Analytic Hierarchy Process (AHP) in decision analysis with six hierarchies used in this research based on the stakeholders which classified by governmental institutions including customs, regulator, and ministries and non-governmental institutions including PT JICT, importers, trucking and warehousing services. It includes the alternative option strategies: (a) Improving the quality of equipment, infrastructures and operational systems. (b) Creating Early Warning System model among stakeholders. (c) Optimizing internal trucking and warehousing. (d) Optimizing single window services. (e) Proposing regulations by evaluation from operational point of view. Based on the AHP, resulting Importer is the highest priority weight (0.308) which indicates that Importer is stakeholder that has the most impact in dwelling time issue. Followed by Ministries in the second priority (0.215). Third place is occupied by the Regulator (0.197). Then, Customs is prioritized on the fourth (0.116). Next, Trucking & Warehousing Services is prioritized on the fifth (0.073). While the last priority is PT JICT (0.056). Under overall alternative strategy priorities, creating Early Warning System model among stakeholders occupies the highest priority weight (0.317) which will be the most prioritized strategy in solving high dwelling time import containers in PT JICT. N.CO (Notification Cargo Owner) is an Early Warning System model that supports the container terminal in dealing with dwelling time issue.Keywords: Analytic Hierarchy Process (AHP), Decision Making, Dwelling Time, Kepner – Tregoe, Yard Occupancy Ratio (YOR)
Business model and business strategy Formulation for ciao Rendy Irawan, Muhammad; Dung Do, Anh
The Indonesian Journal of Business Administration Vol 5, No 2 (2016)
Publisher : The Indonesian Journal of Business Administration

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Abstract - In the recent years many business startups from many industries have emerged, trying to stand out in an already saturated market. Usually, business owners will use the services of designers to help with the choice of room design, lighting and which furniture and appliances to use, in order to make the place as cozy as possible so that people will want to come. This is where other businesses could take advantage of the situation. A variety of businesses could benefit from this opportunity. But then again, that business also has to be unique in order to be able to stand out. Something that would stand out in this area would have to be something that is selling a very unique product; something that business owners could benefit from having instead of using conventional products from other businesses. Selling appliances that not only looks and functions as good as other products, but also incorporates an innovative technology could make more people come to the new store or shop, and help your business to sustain and grow as well. CIAO currently focus on designing 4 products, which are wireless charging-integrated products, smart interactive tables, e-brochures, and a floating table. These products are very one of a kind here and no other company here is known to be making these unique products. CIAO currently is faced with a challenge, which is to educate the customers about the benefits of using unique ways in presenting their product could yield them better results in the long run. Surveys and interviews are used to collect primary data and information about CIAO’s current condition, as well as the current market segment. The results from the survey are then processed through a TOWS matrix to help formulate a strategy based on the strengths, weaknesses, opportunities, and threats. After that, the strategies generated from the TOWS matrix is then used to create a Strategy Diamond and a new business model using a Business Canvas Model. The result of this research shows that CIAO’s current business model does not have the necessary strategy to support its current value proposition. The new strategies formulated in this research suggests CIAO to improve their marketing strategies and focus more on its marketing strategies to establish a distinctive uniqueness among its competitors and in order to sustain as business and continue to grow Keywords:Business Strategy, Business Canvas Model, TOWS Matrix, WirelessCharging, Smart Table
Financial performance analysis of airline companies evidences from southeast asia airline industry for the period of 2013-2017 Arif, Jumaidi; M. Daryanto, Wiwiek
The Indonesian Journal of Business Administration Vol 8, No 1 (2019)
Publisher : The Indonesian Journal of Business Administration

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Abstract. Since 2004, the Low Cost Carriers (LCC) had tremendous growth in the Southeast Asia airline industry. Due to this condition, the Full Service Airline (FSA) market share had dropped to below 50 percent. Currently, most of FSA in SE Asia are stated-owned airlines and it becomes important due to the role as the front liner of government in tourism. Therefore, it is necessary to maintain the sustainability as the future development of the tourism industry depends on a gradual increase in air service. This research aims to analyze the financial health conditions of four airline SOEs period 2013 – 2017 and validated by the decree No. KEP-100/MBU/2002 issued by Indonesia Ministry of SOEs in June 2002. There are eight ratios analyzed: 1) Return on Equity 2) Return on Investment 3) Cash Ratio 4) Current Ratio 5) Collection Period 6) Inventory Turnover 7) Total Equity to Total Asset and 8) Total Asset Turnover. In addition, return on invested capital (ROI) results from the companies will be compared with the industry benchmark of weighted average cost of capital (WACC) to measure the company’s level of profitability The result shows that from 2013 – 2017, four airline SOEs has achieved rating as follows: SIA (BBB, BBB, BBB, BBB, BBB); HVN (BB, BB, BB, BBB, A); GIA Tbk (BBB, BB, BBB, BB, B); and THA (B, B, B, B, B). The return on invested capital (ROIC) of four stated-owned airlines were below the weighted average cost of capital (WACC) of each company. This research has added the knowledge in the financial literature. It also gives strong insights about the financial condition, therefore the company could make decisions to increase the market share and the profitability.Keywords: Airlines industry, Financial ratio analysis, the SOE decree No. KEP-100/MBU/2002, stated owned enterprises, Weighted Average Cost of Capital, Southeast Asia
Financial performance evaluation and correlation of selected key financial ratio and stock price: a case study of indonesia lq45 state owned enterprises construction companies Perdana Suherman Putra, Aditya; M. Daryanto, Wiwiek
The Indonesian Journal of Business Administration Vol 7, No 3 (2018)
Publisher : The Indonesian Journal of Business Administration

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Abstract. Indonesia Infrastructure development budget of 2015 – 2019 reached Rp 4.197 trillion and 42 percent of it relies on the State Owned Enterprise (SOEs) income. Adhi Karya (ADHI), Jasa Marga (JSMR), PT. PP (PTPP), Wijaya Karya (WIKA) and Waskita Karya (WSKT) are five SOEs Construction Companies listed in LQ45 in July 2018 and act as a responded in this study. The objective of this study is to measure company financial health using eight ratios investigating; 1) return on equity, 2) return on investment, 3) cash ratio, 4) current ratio, 5) collection period, 6) inventory turnover, 7) total asset turnover and 8) total equity to total asset ratio based on audited financial reports of 2013 – 2017 and be validated using the decree of Ministry of SOEs No.KEP100/MBU/2002. Validation using statistical method was also been used by The Pearson Product-Moment Correlation Coefficient (PMCC) to determine the correlation of financial performance with stock price. The results show that the five SOEs were in healthy conditions, except ADHI in 2016 and JSMR in 2013 – 2015 and 2017. The rank of health level were as follow; 1) WSKT (AA, AA, A, AA, AA); 2) PTPP (AA, AA, AA, A, AA); 3) WIKA (AA, AA, AA, A, A); 4) ADHI (AA, AA, A, BBB, A) and 5) JSMR (BBB, BBB, BBB, A, BBB). PMCC shows that the Net Profit Margin has the strongest significant correlation with stock price. Keywords: financial ratios, financial health assessment, SOEs construction, stock price, PMCC.
Strategies and Feasibility Studies of Cattle Fattening Business Rizky Andri Ulaan, Aldi; Maya Damayanti, Sylviana
The Indonesian Journal of Business Administration Vol 5, No 2 (2016)
Publisher : The Indonesian Journal of Business Administration

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The purpose of this study was to find out the feasibility and the benefit of beef cattle fattening by Fresh Farm, Bandung Regency. As the business will begin to be developed, requiring sizable capital. The capital can be obtained either from banks or investors. Of course, both of which require a study of the feasibility of the business to be developed by the Fresh Farm. In this study the feasibility Fresh Farm analyzed, starting from the outside environment analysis, Porter's five forces and financial feasibility. Financially, the business Fresh Farm is considered feasible, amounting to Rp2,359,552,333 positive NPV, IRR 44.66%, Net B/C 2.19, Payback Period 1.8, and ROI 50%. Implementation of business with the application of the principles of good management, it is proposed in the research results. Keywords: crowdfunding, cattle fattening, agriculture, business strategy
The implementation of spatial information system to improve wells data integrity in pt Pertamina ep Purwana, Hadi; Hanafi, Muhammad
The Indonesian Journal of Business Administration Vol 7, No 1 (2018)
Publisher : The Indonesian Journal of Business Administration

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Abstract. PT Pertamina EP, a state-owned enterprise engaged in exploration and production of oil and gas in the upstream sector should optimize wells assets to achieve company’s target. Current wells data management in the company resulting multiple data versions. This situation potentially impact on the operation. In 2013, the Director stated that  as much as 20% of oil drilling undertaken since 2008 have failed, resulting a net loss of USD 300 million. Therefore, it is necessary to implement integrated wells management system. This research uses dispatcher report from 2014-2015 regarding wells data. The research methodology consists of several steps, started from problem finding, root cause analyses, system solution, and system design definition. The data are analyzed using Pareto as the basis for root cause. Furthermore six primary dimension of data quality from DAMABoK, CRT mapping and qualitative interview are used for solving the problem. The proposed system named MAPS assessed based on six data quality dimensions. The result shows that the system meet four out of six data quality dimensions. It requires improvement of the capabilities in the future to integrate the system into company's business processes to to synchronize the data for further decision making process.Keywords:  data quality, integrated management system, MAPS, root cause , wells
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
Optimizing Production Planning of PT Soraya Berjaya Indonesia Wardani, Rahmi; Nizar, Adirizal
The Indonesian Journal of Business Administration Vol 6, No 1 (2017)
Publisher : The Indonesian Journal of Business Administration

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Abstract - Production planning is one of the important factors to run business company. One of production planning is determine the product combination which will be produced in order to optimize the production capacity to fulfil the market demand by considering the availability of the resources. The instability of total products demand cause production planning changes every week. The first thing to do is identifing the product combination which will be produced. The product combination can be determined by using linear programming method. The aim of linear programming method is to determine the product combination which will be produced. Therefore, the company can optimize the production capacity of the company to get maximum revenue. If the company is not able to fulfil all demand, the company can do outsourcing production. Outsourcing production is the act of moving some of a firm’s internal activities to outside provider. But the weakness of outsourcing production is a lack of communication between the company and the outsourced provider may occur production delay and the quality of the product is not necessarily the same as the company's quality standards. Therefore, the company must maximize the use of production capacity first, then it could use outsource production.Keywords: Linear Programming, Outsourcing Production, Production Planning, Production Capacity
Proposed Strategy Formulation and Implementation for Puri Luluran Wanoja Ratnapuri, Chyntia Ika; Wandebori, Harimukti
The Indonesian Journal of Business Administration Vol 3, No 11 (2014)
Publisher : The Indonesian Journal of Business Administration

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Abstract. Nowadays, along with the increasing density of population growth and activity in Indonesia especially in Bandung as one of the biggest city in Indonesia, clearly give significant impact against any person. High levels of stress due to the density of activity became a common thing nowadays, especially for a woman. For the reasons above, the importance of taking the time to take care the body at the spa became very important needs in the present era. The development of a spa industry nowadays was growing rapidly and the competition was very intense. This issue gives a fairly significant impact on the company's condition such as the hijacking of the therapists, declining in profit margin, declining in number of customers, the determination of the price more stringent. Therefore, Puri Luluran Wanoja needs to formulate and implement strategies to compete in the industry and gain a competitive advantage.After identifying the business issue, the next step is to make an analysis to determine the company’s current condition by scanning the company’s environment that was divided into external and internal analysis. This analysis used to determine the strength, weaknesses, opportunities, and threats of the company to compete the tight competition in spa industry. The result of this external and internal analysis will be used to find the root cause of the problem and strategy formulation can be made based on the root of the problems occurred. This strategy formulation required to anticipate the high level of competition and then implementing these strategies to solving the problems.The internal and external analysis also used to determine the company’s position in industry by performing IFAS and EFAS calculations. According to IFAS and EFAS score, Puri Luluran Wanoja is in Growth Position of corporate strategy but still lack of differentiation that can be the competitive advantages in the face of fierce competition in the spa industry. Puri Luluran Wanoja still requires uniqueness and diversification, especially in service to be offered to customers so that can built the customers loyalty. Therefore the suitable diversification strategy is Concentric (Related) Diversification strategy. For business strategy, Puri Luluran Wanoja chooses to conduct a differentiation strategy in order to gain competitive advantage. Some strategy differentiation that will be done by Puri Luluran Wanoja in the future is “One Stop Healing Place”, the unique service of treatment, and built children playground.Strategies should be implemented through an action plan based on strategy formulation of Puri Luluran Wanoja which are make an massive advertisement strategy, using computerize system, create a unique treatment, provide new facilities and create “one stop healing place”. The Milestone, Action Plan and Recommendation expected to increase profits and gain competitive advantages to compete in this tight competition of spa industry.Key Words: PURI LULURAN WANOJA, competitive advantages, strategy formulation

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