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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
Brand Audit and Improvement Brand Artika Agatari, Juwita; Desiana, Krisnati
The Indonesian Journal of Business Administration Vol 4, No 11 (2015)
Publisher : The Indonesian Journal of Business Administration

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Abstract; the raising of modern people awareness toward healthcare in all aspect including sexual healthcare made the condom industry into a promising industry. PT. Mitra Rajawali Banjaran is the only one Indonesia local condom producer. With its Brand Artika which stands for Arti Kasih Sayang PT. MRB at first selling its product to fulfill government market through National Family Planning Coordinating Board (BKKBN). But on other side Artika Condom only grab 1% market share in commercial market nevertheless this brand is already produced and distributed in Indonesia for almost 30 years. Turned out that Artika faced business issue poor brand in the consumer mind and its awareness that PT. MRB believe that is the cause of it low purchasing by consumer in commercial market. To solve the business issue faced by this brand first is by analyzing internal and external factor from the company and especially from the brand Artika itself. In searching and solving the problem the brand audit method will be the tool for examines the health of the brand PT. MRB knows which problems that need to be fixed the most to entering commercial market. Either needs new brand or just simply improving the Artika brand. And the brand Audit in conjunction with market survey resulting that Artika is rarely know by consumer, having no special distinctive compared with other brand, having weak marketing program, poor packaging appearance, confusing association of brand name, known as worthless product and have poor distributing channel. And this kind of situation will need company to have new brand that more suitable for commercial market Keyword: marketing, brand audit, , brand improvement, condom industry
Comparison of Natural Hedges from Diversification and Derivative Instruments Agains Commodity Price Risk: A Case Study of PT Aneka Tambang, Tbk Dwiparandi, Dikdik; Murtaqi, Isrochmani
The Indonesian Journal of Business Administration Vol 2, No 13 (2013)
Publisher : The Indonesian Journal of Business Administration

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Antam is a mining company which most revenues come from the sales of diversified commodities, namely ferronickel (36.5% of total revenues in 2011), nickel ore (24.1%), gold (36.0%), silver (2.7%), and coal (0.8%). With the trend of declining nickel price in 2012, more than half of the company’s revenue is exposed to the nickel commodity price downside risk. Despite that, Antam claimed that its diversified commodities can reduce such impact, in other words it creates natural hedges, a hedging method that comes from daily activities. The topic of this final project is concerning the commodity price risk of nickel against Antam’s natural hedge and other hedging tools. This research aims to find the strength of natural hedge compared with the use of derivatives to mitigate the risk of declining nickel price. Due to the limitation of data, only forward and option contract are used as derivative instruments. Risk in natural hedge is conducted by calculating the VaR of portfolio using Delta-Normal method, which then is compared to the company’s retained earnings in 2011. Forward and Option contracts are applied to ferronickel and nickel ore, which make four combinations of derivatives strategy. Comparison of natural hedge and derivatives is done by comparing VaR of natural hedge with the cost of hedging of derivatives strategy in three time horizon. Based on calculation, although Antam’s natural hedges is strong, the company should hedge its nickel-based commodities in short period by entering ferronickel into put option contract and nickel ore into short forward contract. Antam may also improve its diversification by adjusting its sales volume per commodity or use both derivative instruments to each commodity.  Keywords: Commodity Price Risk, Value at Risk, Natural Hedge, Forward Contract, Option Contract.
Rescue Strategy Concept for a Company in a Weakening Market Nurfalah, Mohamad Hamzah; Siahaan, Uke MMP
The Indonesian Journal of Business Administration Vol 1, No 6 (2012)
Publisher : The Indonesian Journal of Business Administration

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PT ABC is a company located in Puncak Region West Java. Its main business is providing outdoor training activity, or known as outbound. To support its business, it is also facilitated with accommodation facility. Since the beginning of its business, a proper management principle is not being used properly by this company, therefore there’s an indication that this company will go to a bankruptcy. This paper is going to discuss about the alternatives to rescue this company from bankruptcy. Using the Altman’s z score prediction model, this paper will try to find out the real condition of this company toward bankruptcy. After that four alternatives of rescue strategy will be analyzed. These strategies are the strategies that hopefully will rescue this company from bankruptcy. The alternatives are refinancing, diversification of business, reorientation of business, or sell the company. Capital budgeting techniques, like NPV, IRR, PBP, etc will be used to analyze it. After that, decision tree will be used to pick the most promising alternative. Keywords: Bankruptcy, Capital Budgeting, NPV, Decision tree, Altman Z Score
The Optimal Financing Decision of Indonesia Digital Network (IDN) Arsiyanti, Ida; Wiryono, Sudarso Kaderi
The Indonesian Journal of Business Administration Vol 3, No 4 (2014)
Publisher : The Indonesian Journal of Business Administration

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Abstract. Becoming a broadband wireless access operator is in line with the transformation of Telkom’s business to Telecommunication, Information, Media, and Edutainment (TIME). In order to deliver IME service, high speed bandwidth is required so there is no other choice but to prepare network with true broadband capability. Regarding that poin, Telkom plans to focus on the Indonesia Digital Network (IDN) until 2020 for development of internet broadband, pitching the initiative to Indonesian  as a way to bridge the digital divide suffered by the developing country and also significantly boost its GDP. IDN is a vision of true broadband infrastructure development of Telkom by end-to-end (user terminals, access, transport and service). IDN is a mega project that requires large amount of financing support. Missmanagement on financing strategy could affect Telkom’s long-run equity performance. The connections between capital structure and investment decisions should be most apparent when a company undertakes a large investment. By taking the right financings decision, IDN is expected to be able to be developed without cause any financial difficulty for Telkom. The objective of this final project is to formulate  financing strategy for IDN Project at the lowest cost of capital and the optimal mix of debt and equity that maximizes firm value itself. The financing decision for IDN Project despite to achieve the cheapest financing, should also encourage the overall company’s capital structure towards optimal, respectively. Keywords : cost of capital, company capital structure, firm value, financing source
The Utilization of Coal 4200 Calories Using Value-Added Method and Capital Budgeting Technique For Economic Evaluation Sitohang, Pesta Ferdinan; Aldianto, Leo
The Indonesian Journal of Business Administration Vol 4, No 8 (2015)
Publisher : The Indonesian Journal of Business Administration

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Abstract. Coal is an alternative energy derived from vegetation which are buried in the ground for millions of years ago and become rock. The changing of vegetation into the rocks was done by natural with supporting factors such as burial depth, time length of the burial, temperature and pressure in certain depth and also the type of vegetation. The embodied energy comes from the absorption of energy millions years ago by vegetation. Based on quality, coal divided into two main categories. The first category is low rank coal (lignite, sub-bituminous) and the second is hard coal (bituminous and anthracite). This categorization is based on the carbon quantity/component in the coal. PT Trisensa Mineral Utama is a mining company that established from 2004 and starts its production in Sanga-Sanga, East Kalimantan at the end of 2011. Produce coal with 4200 GAR for the first time, PT Trisensa Mineral Utama sold its coal to Hongkong, China, India, Japan, South Korea, etc. PT Trisensa Mineral Utama is a sister company of PT Toba Bara Sejahtra , together with PT Indomining, and PT Adimitra Baratama Nusantara, listed in Jakarta stock exchange since July 6, 2012. The golden era of coal occupied until 2011, where the mining industry enjoys the big margin; while more and more competitors (producer) or new comers and contractor was emerged, from small to big scale. After 2011, the coal price headed to its equilibrium value, causing a lot of players who do not have experience and strong capital into bankruptcy. As the root cause of the problem is that the production cost exceeds the sale price. This condition applied to the two coal category, especially low rank coal (lignite and sub-bituminous). PT Trisensa Mineral Utama which previously had 4200 GAR coal products, move to produce 4800 GAR and 5600 GAR coal. In the end the 4200 GAR coal is abandoned because it cannot give economic value to the organization. Seeing this problem, there is a need of innovation for its coal product. It can be achieved if carried out an increase in value-added products. Coal with 4200 GAR can be used for several types of value added services such as coal to liquid (Liquefaction), coal to gas (gasification), coke, as well as into electric through power generation. Based on existing conditions and needs, the possible solution is the use of coal for generating electricity. This is influenced by the production cost which should be less than the selling price. The evaluation is conducted by using economic analysis based on the capital-budgeting-technique (NPV, IRR, PP), where the results give a positive tone.The solution will necessarily require human resources and finance. Associated with the existing regulation Pasal 5 (1,2,3) Permen ESDM No. 10 Tahun 2014, PT Trisensa Mineral Utama need to form a consortium with another organization/company to establish a new entity for power plant company. The success of the implementation of this solution is very dependent on the readiness and seriousness PT Trisensa Mineral Utama as a major shareholder. Keywords: capital-budgeting-technique, coal value added, power plant
Business Model and Strategy Development of PT Rev Kreasindo Utama Novrizal, Aldila; Hamsal, Mohammad
The Indonesian Journal of Business Administration Vol 4, No 5 (2015)
Publisher : The Indonesian Journal of Business Administration

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Abstract.In the early and mid of 2000s, casual fashion became a trend among youth in Indonesia, especially teenager and young adult, due to the development in music or any other creative activities engaging youth to express their ideas and interests. In the notion of grabbing the business opportunities in this industry, Rev Clothing was founded in 2007. As the company keeps developing, it challenges the fierce competition within the clothing industries involving both local and international brand companies. This thesis aims to analyze the business development of Rev Kreasindo Utama and to draw the business strategy and model that are applicable for the company in order for the company to survive and compete within the industry. For the environmental scanning stage, this process is to analyze both external and internal factors that effect to company. Then, formulating the strategy is also done to decide what strategy that needs to be undertaken by Rev Kreasindo Utama to overcome the obstacles challenged. All of the strategies and business models development must be formulated in its implementation plan so that Rev Kreasindo Utama can easily get solutions to settle the problems faced in running the business.Keywords: Fashion, Casual Fashion, Business Model, and Business Strategy 
Determining Bakrie Telecom’s Business Strategy to boost the Revenue from Internet Data Business Prajunianto, Prajunianto; Titus, Amol
The Indonesian Journal of Business Administration Vol 2, No 11 (2013)
Publisher : The Indonesian Journal of Business Administration

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The study is aim to explore & analyze business model and business strategy for Bakrie Telecom (BTEL) in order to increase the revenue from internet data business. Trend of internet/telecommunication such as the use of smartphone (Android, IPhone, and BlackBerry) are giving significant revenue for operator. But total revenue earned by Bakrie Telecom, not quite able to offset current funds out. Issues facing Bakrie Telecom in internet data business can be overcome by applying a Business Model Canvas, which has nine factors that include improvements in Customer/Client, Brand Development, campaign activities to increase product awareness, product delivery by the supplier, resources development, budget/fees management, and which revenues to be gained. This research will get excellent result if capable of forming Canvas business model measured its success by applying Diamond business strategy in Bakrie Telecom. Those strategy is expected to increase corporate earnings especially from internet data business and able to earn internet market widespread in Indonesia. The recommendation to implement business model and business strategy are began by providing employees upgrading/training skills, improvements in terms of finances, expansion and infrastructure’s development and build the programs that can make customers interested in using internet products of Bakrie Telecom.  Keywords: internet data business, canvas business model, diamond business strategy. 
Measurement of Social Media Marketing Performance on Klik-Amazing’s Product At Marketing Division, Klik-Amazing Alim, Ihwanul; Iskandar, Budi Permadi
The Indonesian Journal of Business Administration Vol 1, No 4 (2012)
Publisher : The Indonesian Journal of Business Administration

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Internet in Indonesia grew fast. Indonesian do socialize in online social media, also. Klik-Amazing was small company run in media industry and used online social media to do the marketing communication.Customer’s media habit consumption also shifting from offline media (without internet) into offline and online (by internet) media, including the online social media. The most used online social media were facebook and twitter. Klik-Amazing prepares their low cost-marketing strategy by these online social media. With online social media, Klik-Amazing measured the market’s response on applied marketing strategy.This online marketing measured by Klout, an influence measurement tool on social media internet and facebook fan page analytics, which analyze brand/company’s influence in facebook.  The results compared with online target that had been decided before by Klik-Amazing.Facebook fan page utilization on 2 months produce 57 fans, photo as most influence medium, 96,60% of fans and 84.80% reached people were appropriate with target market’s identitiy. The sales of company grew into 1,600,000/month in 5 months. The klout score increase into 32 with ‘Conversationalist’ as the klout style. Those results had achieved the online targets and considered success.By this final project, AISAS model had been modified into the model that optimizes the utilization of facebook, twitter and website. Besides, another model had been hypothesized to simulate how Klout can generate the Klout-Score and Klout-Style in increasing the online influence in social media. These two models were not proved yet and recommended to be researched further.   Keywords: Klik-Amazing, Social Media Strategy, AISAS Model
Business Strategy Formulation for Multi Makmur Mandiri Budiman, Harry; Hariandja, Evo S
The Indonesian Journal of Business Administration Vol 2, No 5 (2013)
Publisher : The Indonesian Journal of Business Administration

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Multi Makmur Mandiri is a company dealing in construction material trading and located in Garut Regency, West Java Province, Indonesia. As of recent years, Multi Makmur Mandiri faced with requirement of management regeneration. In order to facilitate it Multi Makmur Mandiri changes its business entity status from sole proprietorship to limited partnership company in 2012. These two changes required the company to restructure its organization and readjust its business strategy in order to maintain and improve its competitive advantage. The process of formulating business strategy may be divided into three main phases; strategic analysis, strategic analysis output and strategy identification, selection and implementation During strategic analysis, external analysis and internal analysis in order to provide output which will be to identify opportunities, threats, strengths and weaknesses. These 4 elements would then be used to identify business strategy alternatives which would be selected based on predetermined criteria. The result of selection process would end as proposed business strategies and its implementation plan. This paper’s objective is to provide business strategies suitable with Multi Makmur Mandiri’s situation. These proposed business strategies are expected to help Multi Makmur Mandiri to maintain and improve its competitive advantage. The result of this strategy formulation is: a). Value proposition based on product line breadth; b). Organization structure building; c). Implementation of integrated information system. Keyword: strategic market management, business strategy, formulation, construction material, building material.
A Service Quality Survey and The Anticipation Service Failure in Bonnela Shoes Nurfitriani, Gina; Aprianingsih, Atik
The Indonesian Journal of Business Administration Vol 4, No 2 (2015)
Publisher : The Indonesian Journal of Business Administration

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Abstract.Bonnella is one of the small and medium enterprises in fashion item, especially shoes. Bonnella provides services in the customized manufacture of shoes for men and women. Currently, Bonnella uses online sales system. Bonnella was first formed in 2010. The business went well until the end of 2013. However, since early 2014, the number of orders has dropped. A large number of complaints suspected cause of decreasing in sales. Furthermore, current Net Promoter Score (NPS) of Bonnella’s customers is -10%, a negative NPS (<0) is generally considered as bad. This situation makes the owner Bonnella worry because it could threaten Bonnella existence if left too long it will impact for the future. Bonnella wants to investigate the causal of that situation in order to maintain existence of Bonnella. Started by analyzing the external and internal environment. Internal analysis consists of current STP, marketing mix 7P, Porter’s value chain, and E-ServQual analysis based on customer view. External analysis consist of PESTEL analysis, Porter's five forces analysis, and competitor analysis. The result of these environment analysis is SWOT analysis of Bonnella. Then, conduct gap analysis using E-Service Quality (E-ServQual) and E-Recovery Service Quality (E-RecSevQual) adapted from Parasuraman et.al (2005) to find wheather customer satisfaction or not. To determine the priority of solve the problem conduct Importance Performance Matrix (IPM). After the service problem were identified, the proposed solution to improve service quality were based on IPM result was combine with TOWS matrix. TOWS matrix can also be used to generate a number of possible alternative strategies based on external opportunities and threats facing can be matched with internal strengths and weaknesses to result of possible strategic alternatives. The proposed solution were followed on implementation plan. To implement the proposed solution considering the most urgent issues and the resources available.Keywords : Service Failure, Importance Performance Matrix, Gap Analysis, Online shop, Customized Shoes. 

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