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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
Marketing Strategy for Bandrek Hanjuang : Market Development in Central Bogor Region Prabowo, Puji; Nasution, Reza Ashari
The Indonesian Journal of Business Administration Vol 1, No 1 (2012)
Publisher : The Indonesian Journal of Business Administration

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Abstract

Bandrek is the traditional drink of the original Bumi Parahyangan or Sunda. This drink is made from natural ingredients and has benefits such as warming and nourishing the body. Bandrek Hanjuang is one of the pioneers in producing bandrek instant powder. The number of new players both large and small companies has been contributing in hampering Bandrek Hanjuang sales growth. There many of competitors that use ginger as the beverage core ingredients. These companies are considered as direct competitors to Bandrek Hanjuang. Since 2011 not achieved the target of sales and competition is getting tighter in Bandung. Therefore, Bandrek Hanjuang has decided to expand its market to outside Bandung and Cimahi by entering Sukabumi on January 2012 and Bogor on July 2012. Bandrek Hanjuang requires appropriate marketing strategies for market development in Bogor. The range of marketing budget is limited between IDR 50-75 million. The purpose of this research is to provide suitable marketing strategies within the given budget. Bogor Tengah was chosen as the sampling area due to higher population density since this area is supported with facilities such as residential, offices, schools, and tourism spots. In this research, a market development model is developed as the synthesis of literature and case study. This model is utilized to analyze market characteristic and to determine the appropriate marketing strategy based on the market characteristic. Applying this model in Bandrek Hanjuang case, complemented with company external and internal analysis, the research shows that Bogor market characteristics are heterogeneous and the appropriate marketing strategy is guerrilla attacks. The proposed business solution implementation includes human resource plan, schedule planning, and financial budget to run a guerrilla marketing. The marketing strategy would be carried out at the beginning of July to December 2012; first to test the market and then slowly would penetrate the market. The required resources to do guerrilla marketing is 9 people with estimated budget of IDR 70.5 million. This budget is still in accordance with the request of the company.Keywords: Market Development Strategy, Guerilla Marketing, Market Development Model, Bandrek, Bandrek Hanjuang, Central Bogor.
Project Risk Management of Indah Senada Apartment Haryogo, Ryan; Wiryono, Sudarso Kaderi
The Indonesian Journal of Business Administration Vol 3, No 1 (2014)
Publisher : The Indonesian Journal of Business Administration

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Abstract-PT. ABC as housing developer is planning to build Indah Senada apartment, and they need bank loan in order to build the apartment project. Since they need borrow loan from the bank, managing the Indah Senada apartment project risk is important for PT. ABC themselves and the bank. By managing the risk of the Indah Senada apartment project it is expected that the risk loss can be minimizes and opportunities can be maximized.The context of the risk management in this final project is to manage the external and internal risk factors that can affect to the on time schedule of the Indah Senada apartment project process. And from external, internal and SWOT analysis there are 19 risk factors that might happen and can affect to the on time schedule of the apartment project. And then from risk assessment there are two extreme risk factors priority, 8 high risk factors priority, 6 medium risk factors priority and three low risk factor priorities. And the last from risk treatment there are 6 risk factors that must be doing risk prevention or risk avoidance, two risk factors that must be doing impact mitigation, 8 risk factors that must be doing risk sharing or insurance and three risk factors that can be risk retention.And for implementation planning, the first month of the project schedule is meeting to determine risk treatment planning for each risk factor and the last 23 month of the project schedule is implementation of risk treatment for each risk factor. Keywords: Risk Management, Project Management, Apartment Project
Proposed Approach to Develop Corporate Social Responsibility Activities at KSO Pertamina Depot Cikampek Muhammad, Arisman; Rudito, Bambang
The Indonesian Journal of Business Administration Vol 2, No 3 (2013)
Publisher : The Indonesian Journal of Business Administration

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Corporate race to do Corporate Social Responsibility (CSR) not only as marketing tools but also because Indonesian government has regulate it. In return, of corporate CSR, social legitimacy is established. CSR also can create corporate imaging in society; it will be good for company reputation in business world and can attract investors or other company who is willing to have partnerships. Pertamina Depot Cikampek is Pertamina depots manage by Pertamina Patra Niaga using Joint Operation (KSO) systems as a partner. Depot management has done some CSR programs, however community judges Depot management doing unsatisfying CSR program. Relation between Depot management with community and local administration are not go well. Research is done by doing observation, interviews and secondary data gathered from local administrations. From gathered data, it was found that communication between communities with the Depot is not running properly due to lack of a system to perform engagement. In addition, Depot management did not have planning for long term and sustain CSR program. Implementation begins from doing stakeholders analysis and mapping by doing stakeholders engagement. At the same time, CSR division should be establish and recruit its officers. After management can figure out community needs, they can start planning and preparation for CSR program. Lastly, implementation of program can be conducted.  Keywords: Pertamina Depot Cikampek, Corporate Social Responsibility, stakeholders engagement.
Optimizing the Capital Structure Using Cost of Capital Approach: a Case Study at PT.Telekomunikasi Indonesia, Tbk Darsana, I Ketut Suwetja; Sumirat, Erman
The Indonesian Journal of Business Administration Vol 2, No 17 (2013)
Publisher : The Indonesian Journal of Business Administration

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PT Telekomunikasi Indonesia, Tbk (Telkom) keeps strengthening its infrastructure to support the business. Investment in infrastructure urgently needed as technologies always develop very fast following the services demanded. The fund for investment can be generated from internal cash flow, or generated from external sources from debt or equity. But it is important to consider the proper composition of funding to get the lowest cost of capital possible. The objective of this study is to examine Telkom’s optimal debt ratio, using cost of capital approach based on the condition as of December 31, 2012. Rating consideration, share repurchase program and high dividend are root causes that must be taken into consideration to maintain the company’s growth in the long run. A simulation applied to estimates the weighted cost of capital at different debt ratios. Some constraints, including debt rating and earnings before interest and tax (EBIT) volatility against debt ratio, are considered in order to reduce the risk of default. With current debt ratio of 14%, Telkom is still under levered. The optimum debt ratio is 17% after considering the constraints. Historical investments showed good performances with return on capital no less than 25%, which was higher than the current cost of capital of 9.31%. Considering the issuance cost, interest paid and macroeconomic conditions, it is recommended for the company to take new debt of Rp.7 trillions.  Keywords: capital, value, default, constraints. eh�e �@�p�r with BAPPENAS. Waste on Nambo TPPAS will be processed into useful products 1.Recycle Material 2. RDF(refuse derived fuel) 3. Compost. These projects are expected to be the solution to the waste problem in the city of Bogor and Depok. This Final Project is to analyze  the project feasibility study of development projects nambo TPPAS based on Regulation of Minister of national development planning No.3 2012 . Feasibility study perform by using various indicators of financial feasibility including IRR,NPV and PBP, combined with Sensitivity Analysis, Risk Analysis , and ABMS (analisa Biaya manfaat sosial – Social cost benefit Analysis). Based on the analysis of financial and risk positions suggests that development projects can be assessed Nambo TPPAS feasible to be implemented with the assumption that the government provide support in the form of government funding in the beginning of the project. However, the project can’t be assessed only in terms of financial side but must be assessed in terms of the resulting social benefits. These projects generate substantial EIRR. This prompted the government to immediately implement the construction of this project.  Keyword: Waste, Waste management, RDF , PPP , Project feasibility Study.
Maximizing the Value of Information Technology Investment based on Strategic Alignment, Risk Control and Real OptionsA Case Study of Enterprise System Implementation at PT. Pegadaian (Persero) Mulyana, Rahmat; Wiryono, Sudarso Kaderi
The Indonesian Journal of Business Administration Vol 1, No 10 (2012)
Publisher : The Indonesian Journal of Business Administration

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The world of IT market has experienced fast growth by9.7% worth US$ 527.9 billion (Rp 5.015,1 trillion) in 1995, but still IT value realization is questioned with the advent of IT Productivity Paradox phenomenon. In 2002, Gartner survey stated that 20 to 70% IT investment worth US$ 600 billion (Rp6,315.8  trillion)  was  wasted.  However,  the  phenomenon  was fading  with the  rise  of  IT governance  and  management  field, including IT investment management best-practice. Latest research from PwC and ITGI in 2011 has shown that the practice brought 27.1% increased value and 28.1% improved business competitiveness. Recently, PT. Pegadaian (Persero) has planned to invest on a new centralized real-time online Enterprise System. Considering this is a large scale IT investment which estimated TCO is around Rp 1.1 trillion (16% of Total Gross Revenue and 1100% of Total Investment in 2011), while the world historical data has shown many of its failures, in fact Pegadaian itself has experienced ES implementation failure in 2009-2011 which has wasted significant resources, therefore the management is very concerned   about   how   to   prevent   project   failures   while maximizing the value from it. The author has proposed the combination use of strategic alignment, risk control and real options valuation methods which enhanced the conventional investment  analysis  methods  such  as  IRR,  NPV,  ROI  and Payback Period to solve Pegadaian’s problem. This paper result showed that the combination of those methods has maximized the value of IT investment by making sure that the investment is aligned with business objectives, able to control its risks and offered managerial flexibility through viable investment option configurations which maximizing the value. Keywords: IT investment, strategic alignment, risk,  real options, enterprise systems, IT governance and management
Analysis and Proposed Improvement Permit to Work (PTW) in Chevron Geothermal Darajat Garut Perwira, Bayu Ananta; Yudoko, Gatot
The Indonesian Journal of Business Administration Vol 3, No 8 (2014)
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Abstract. Chevron is one of the international companies and businesses that have been run all over the world. Every worker they are committed to getting good results by way of applying the advantages of implementing innovative new technologies, responsible and get new opportunities that will be profitable growth for their success. Energy industry in the world almost all there is involvement of Chevron. Chevron to explore, create and lifting oil crude and natural gas; making power and produces geothermal energy; makes efficient energy and develop new energy sources for the future, including for advanced biofuels research. Chevron have an Operation Excellent for their safety. Operational Excellence is complex and multidimensional. It has to be in order to address all of the potential risks and causes of incidents that can impact our workforce, the environment and our assets. To help navigate this complexity, we developed the Operational Excellence Management System (OEMS). Based on the OE, then every will start the necessary work Permit To Work (PTW). However PTW requires a rather long time to process it. The methodology in this thesis is to conduct research for 2 months straight. During the study found some errors made by workers, that is giving approval is not in the work location. This can lead to the danger that arises in the work. From the results of the interview, according to the workers this is done in order to speed up work time, but on the other hand there is a danger that can arise from the actions of workers. By using the 5 whys, root cause of the problem is obtained that is the lack of workers who become Area Controller. The results of the analysis will result in improvement proposals that will be used to accelerate the process of Permit To Work (PTW) is. The results are in get is by adding people to become Area Controllers or provide training to supervisors in order to become a Controller Area.Keywords : Operation Excellent, Permit to Work (PTW), business solution, area controller
Marketing Strategy Development for Bezta Food Co. Prasetya, Bayu Adhika; Taufik, Tonton
The Indonesian Journal of Business Administration Vol 4, No 12 (2015)
Publisher : The Indonesian Journal of Business Administration

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Abstract. The potential of food and beverage industry in Indonesia is increasing, with a large population and continue to grow, plus the fact that Indonesian second highest expenditure are to purchase food and beverage product. This sector is expected to increase 5.2% growth per year. (The Archipelago Economy). One of its cause is the new wave of consuming class in Indonesia that contribute the economy growth. With more than 250 million population, Indonesia has the most promising market for food and beverage industry. By the data in GAPPMI, the demand increased by 91% from the period 2007 to 2013, and reached 770 trillion in 2013. Bezta Food Co. is a manufacturer of snack product that has a vision to become a famous snack company in Indonesia. Bezta Food Co. established in June 2014 in Semarang. The first product of the company is wolu chips that has a various flavors. As a new startup, Bezta Food Co. faced a problem that is low of brand awareness. Poor marketing strategy plan are the reason why Bezta Food Co. has low brand awareness. This affected to slow growth for the company. The company should solve the problem by implementing marketing strategy to increase the brand awareness. First step is by scanning the external environment to understand the external condition that affect the company, such as societal environment, task environment, and competitors. The second step is by scanning the internal environment of the company to figure out about company product, service, and how the company operated. Based on the external environment and internal environment analysis, the proposed marketing strategy development is divided into two priority. The first priority is to improve product packaging to compete with other competitors. The second priority is to maximize the brand promotion through internet tools. To solve the problem is required a concrete steps that explained in the implantation plan. Keywords: Food and beverage industry, snack products, brand awareness, marketing strategy. 
Analysis Using Open System Model on Logistics Department in Rumah Sakit Ibu dan Anak Kenari Graha Medika Fauzi, Muhamad Ibnu; Yudoko, Gatot
The Indonesian Journal of Business Administration Vol 2, No 14 (2013)
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The Logistics department in Rumah Sakit Ibu dan Anak Kenari Graha Medika (RSIA KGM) where this research is the department that act as the key of cost structure of firm that support the whole operation. The department focused on targets that stated as goals to be achieved that consist of stock, store supplies, administration, distribution to units, monitor and control, and response. Currently logistics department couldn’t fulfill the target of their operation. The root cause of the research is the lack of standardized operational guidelines. The root cause is causing confusion in the department that resulting lost sales, defect supplies, and expired supplies. The method that used to reach the goals is open system model. The model acts as the guide to make a better system. The model which draws the input-throughput-output model with feedback looped to adapt throughput to the environment. The environment consist of all elements outside the system that have the potential to affect that all part of the system. The result will generate feedback that will be used for future transformation. The solution in this research will show the procedure of all logistics activities. Logistics activities in RSIA KGM consist of 6 main activities, they are order supplies, accept and check supplies, store supplies, grant request of supplies, return supplies, and documentation. The usage of stratified random sampling, colored tag, control card, Reorder point, and risk mitigation plan will become the way for logistics department to reach their targets. Even though the old system is simpler, but it is subjective and have disorganized activities. The proposed system have structured activities and standardized procedure, but in the other side the system is quite complex and it will need well trained employee. Keywords: Open system model, standard operational procedure, Reorder point,  Logistic, Rumah Sakit Ibu dan Anak
Improvement Efforts in Construction Equipment Management at Central Services Division PT. Freeport Indonesia Dewantoro, Bartholomeus; Yudoko, Gatot
The Indonesian Journal of Business Administration Vol 1, No 7 (2012)
Publisher : The Indonesian Journal of Business Administration

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The main goal of every construction project is to finish the project on the approved budget, on time and to achieve the required quality. Central Services Division’s of PT. Freeport Indonesia (PTFI) primary responsibility is to manage all capital construction projects approved by Freeport each year. In the past five years (2006 - 2011), Freeport had spent U.S. $600 million investment per year in the form of AFE (Approved for Expenditure) of which 20% - 40% of the fund was managed by Central Services Division to build new facilities. The 2008 records showed that 58% of the projects had been delayed in project completion.  Further analysis showed that failure in providing necessary equipment support was the third basic cause in project completion.  Equipment Control Section in Central Services Division has the responsibility to manage all construction equipment required by the division in completing projects that have been assigned.The focus of this final project is on improving the effectiveness of Equipment Control Section organization in managing construction equipment.  The challenge ahead is that the construction of new facilities of DMLZ and GBC underground mine which is expected to begin its production in 2016.The method used to increase the effectiveness of the organization is the McKinsey 7S Framework. The methodology was conducted by reviewing organization effectiveness of Equipment Control Section based on the 7S elements: Skills, Shared Values, Style, Staff, System, Structure and Strategy at the current condition. By determining the future, expected condition of the organization, then, a gap analysis between the two conditions is conducted. The next step is to determine business strategies in each of the 7S elements with the major goal of eliminating or minimizing that gap.Implementation plan to eliminate gap depends on commitment of Equipment Control Section management.  Without increase in effectiveness in managing construction equipment, completion of all construction projects that meet the principles of cost, quality and schedule will be impossible to achieve. Keywords: McKinsey 7S Framework, effectiveness, equipment, gap analysis, current condition, expected condition
Proposed Strategy for Broadband Business Using Fiber-To- The-Home (FTTH) Technology for PT Telekomunikasi Indonesia Ferdinansari, Chindia; Wandebori, Harimukti
The Indonesian Journal of Business Administration Vol 3, No 5 (2014)
Publisher : The Indonesian Journal of Business Administration

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Abstract— Telecommunication industry in Indonesia is continuously growing with highly competitive market and increasing bandwidth requirement caused by high bandwidth application content, carrying voice, data (Internet) and also IPTV. Fiber-To-The-Home (FTTH) is one of advanced technology in Broadband that use fiber optic until customer home and ready to serve high-speed bandwidth. PT.Telekomunikasi Indonesia (Telkom) implement FTTH by replacing DSL  (Digital Subscriber Line) or Copper Cable gradually at some selected area in Indonesia. Telkom provide triple play service that bundled phone, Internet (Speedy) and IPTV (UseeTV) as a bundled service, which is called IndiHome. Business Issue for this study is low subscription rate of Fixed Broadband (FBB) Service at FTTH implemented area including low penetration service that lead to big idle capacity, compared with Global Benchmark data. Objective of this study is to improve Telkom FBB service using FTTH technology that lead to increasing of market penetration by knowing the cause of low subscription rate of Telkom FBB service using FTTH technology and know the important aspect from customer of the service to be improved. The root causes are lack of marketing activities concerning in FTTH technology differentiation, communication about competitive advantage of IndiHome, lack of churn prevention program, customer touch points are not maximize and fully optimize as an effective sales channel and also as a one stop information and lack of activities that give experience and educate the customer about high bandwidth provided by FTTH as a stimulation. Business solution for defined business issue emphasize on marketing activities improvement in order to create awareness of customer about the product/service regarding the technology, advantage and service differentiation.  Keywords: Internet, Broadband, FTTH, Triple-Play Service, IndiHome

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