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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 Ratna Collection Tufani, Irni; Wibowo, Satya Aditya
The Indonesian Journal of Business Administration Vol 4, No 7 (2015)
Publisher : The Indonesian Journal of Business Administration

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Abstract - Indonesia is one of the new engines of luxury growth within Asia region. Luxury goods growth in Indonesia is estimate could rise to 40%-60% annually. Indonesia is very attractive country for luxury good brands because number of consumer who can afford luxury goods are increasing. Ratna Collection is providing luxury goods such as bags, watches, glasses, accessories, fragrance, etc. The company objective is to be growing and profitable company. This research focus on marketing issues that consist of decreasing number of visitor, low brand awareness and lack of market research activities. The purpose of this research is to define the target market and get appropriate marketing strategy based on marketing mix. Based on root cause analysis, decreasing number of visitor are caused by unclear target market and not appropriate marketing strategy. Data analysis resulted that Ratna Collection should renewal STP and marketing mix. By conducting clustering, discriminant analysis method and also interview with the owner, the best target market and appropriate marketing strategy for Ratna Collection were decided
Strategy Formulation and Recommendation for Grain Healthy Food and Beverages. Nugroho, Martin Priyo; Inggriantara, Alibasjah
The Indonesian Journal of Business Administration Vol 4, No 4 (2015)
Publisher : The Indonesian Journal of Business Administration

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Abstract.Organic food markets are growing in Jakarta. Therefore, many new organic food business arise. One of them is Grain Healthy Food and Beverages (Grain), which has specialty in healthy nut products. As a start-up business, they face problems. Under the uncertain business conditions, it is difficult to stand out in the market, not to mention the limited capital and resources. The low sales and lack of marketing strategy have resulted in low profit before tax. The objective of this paper is to develop, design and implement the right business strategy for Grain. PEST analysis (Political Economic Social Technological) and Porter’s five forces analysis are used to analyze the external business environment. Whilst internal business environment is analyzed using business model assessment and corporate resources analysis - resource based view. Then those input factors are processed by using IFAS and EFAS matrix (Internal and External Assessment Summary). The Grand Strategy Matrix and Quantitative Strategy Matrix are used to find out the proper company strategy formulation. Porter’s Generic Competitive Strategies is used to find out the business strategy. And TOWS (Threat Opportunities, Weaknesses and Strengths) Matrix are used to find out the functional strategies. All the strategy formulation are summarized in a five-year-long-range plan of road map. To help the business owners visualize the strategies, the paper also suggests new business model canvas on how the company should deliver, create and capture the value. Then the recommended solutions are described in the implementation plan; which includes programs, budget, and timeline.Keywords: Start-up, strategy, entrepreneurship  
Proposal on Electric ARC Furnace Utilization to Achieve Cost Optimization in Slab Steel Plant PT Krakatau Steel Supriyadi, Beno; Larso, Dwi
The Indonesian Journal of Business Administration Vol 2, No 15 (2013)
Publisher : The Indonesian Journal of Business Administration

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Steel Business environment has changed a lot lately, and competition is getting stronger. The global competitive pressure has changed the nature of economy Causing changes in methods of operation in industries. Faced with these situation, the company must be Able to survive and win the competition by performing measurements include all aspects that are future oriented. Krakatau recently imported a lot of semi-finished slab regarding low price for commercial grade steel. In order to win a competition all the effort was done by continuous improvement to reduce production costs. Steel slab plant is part of an integrated stainless steel production facility of Krakatau  play the biggest role of production cost responsibility. It is by the caused of the major metallurgical task to convert iron ore to steel and non-metallic raw  material to slag. Secondly steel making consume huge slab of electrical energy to melt the solid material to liquid steel. Excellent strategy and controlling tights will get very high benefit to earn much profit.The final assigment is focused on formulating a production strategy based on market requirements and production cost. Key point to get succesfull implementation of these depends on the top management strategy comitment, the Efforts of socialization, and the participation of all staff and employee. The feedback pattern always makes the learning more effective strategic and structured and continuous improvement smootly runs. Keyword: cost reduction, formulating strategic production, involvement, feedback pattern
Financing Strategy for FSRU Belawan Project: a Recommendation on Financing Strategy for the FSRU Belawan Project Sentosa, Erik; Wiryono, Sudarso Kaderi
The Indonesian Journal of Business Administration Vol 1, No 6 (2012)
Publisher : The Indonesian Journal of Business Administration

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Related to PGN’s plan to invest in Floating Storage and Regasification Unit (FSRU) in Belawan, Medan, Budget Division of PGN needs an efficient financing strategy. Based on PGN’s financial condition in 2010, four scenario of financing strategy were analyzed. The four financing strategy are carried out by issuing right, issuing corporate bond, combination of issuing right and utilizing company’s liquid assets, and combination between issuing corporate bond and utilizing company’s liquid asset. Each scenario is analyzed by computing its WACC and assessing NPV, IRR and payback period based on the calculated WACC. Along with that, the opportunity costs, securities issuance costs, and its effect to company’s liquidity are also assessed. The recommended solution is to issue corporate bond and utilizing excess liquidity, since this strategy has the highest NPV, no opportunity cost in issuing undervalued stock, short period of debt repayment, and relatively acceptable effect on company liquidity. Another part of the report is the risk management strategy for the project. The risk management is mainly mitigating the funding liquidity risk, and the market risk of interest rate, foreign currency and natural gas price. The implementation plan will discuss about the project management in corporate bond issuance and liquidity allocation for project financingand risk management.   Keywords: Financing strategy, FSRU, Right issue, Corporate bond issue, WACC.
Implication of Right Issue Cum and Ex-Date Announcement to the Stock Return(Empirical Study on Indonesia Stock Exchange Period: 2009-2012) Sugiana, Bilfian; Surya, Budhi Arta
The Indonesian Journal of Business Administration Vol 2, No 12 (2013)
Publisher : The Indonesian Journal of Business Administration

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Rights issue is one of corporate actions conducted by the company in order to increase the new funds through issuance of new shares. The common purposes from issuing right issue are to improve company’s capital structure in pursuance of expanding their business as well as meet the need for a new stream of funds in terms of the debt repayment. Therefore, right issue is a signal that may be good or bad news for investor’s investment decision depending on the company’s objectives. This study aimed to test market efficiency by analyzing the right issue cum and ex-date event in Indonesia Stock Exchange. The object of this research is the content of information by observing changes in stock prices and return around observation period. To examine the object, the populations used in this study are all publicly traded companies in the Indonesian Stock Exchange (IDX) which are performed corporate action in right issue during 2009-2012 periods. The period consisting 74 events of right issues captured in the 30-days of observation. Scopes of the research covers the analysis using the event study conducted to capture market reaction reflected by the changes of abnormal return. The estimation used to test information content which implicated to the stocks return by the events in order to test the semistrong form of market efficiency using form of public information available as an object of study and selecting performance of stock that generates the best return during the event using Jensen’s Rules analysis. In the further analysis of the market reaction, company is divided into two categories which are growing and not growing companies conducted by proxy investment opportunity set (IOS) MVE/BVE. From the analysis shows that the market reacted negatively before and after the event both for growing and not growing companies by its significant abnormal return.  Keywords: Right issue, Ex-date event, Abnormal Return, Event Study, Market Efficiency, Investment Opportunity Set (IOS) MVE/BVE, Jensen’s Rule. 
The Strategic Analysis of PT Bank “X” (Persero) Tbk. Transformation : To be the most admired and progressive Financial Institution in Indonesia Sardjono, Ardana Hendratama; Do, Anh Dung; Wicaksono, Agung
The Indonesian Journal of Business Administration Vol 1, No 4 (2012)
Publisher : The Indonesian Journal of Business Administration

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This Study is to capture the experience overcome problems that could ruin the Bank "x" as the largest bank in Indonesia. In 2005, transformation of Bank “X” set up to anticipate corporate problem. Literature Review for this final project, refer to the strategy diamond and concept of Value Chain. The secondary data is chosen for Research methodology approach.Achieving the target, the Bank “X” have articulated following vision are : committed to building long-term relationships with world-class standards of service and innovative financial solution, seek to promote a culture of performance and teamwork which attracts the best personnel, and will actively contribute to Indonesia's long-term growth by working towards the success and growth of the customers. Recommendations are : Bank “X” focus on achieving growth of low cost deposit, in case of that has to develop wholesale transaction banking; Focus on High Yield business to generate profit; Synergies and alliances between Strategic Business Unit or Subsidiaries and full supported by support services unit; Diversified business by acquiring new line of business; and focus on ASEAN market Keywords: Bank “X”, transformation, strategy diamond, value chain,
Improving an Organization Declining Performance Anzalna, Raden Akbar; Welly, John
The Indonesian Journal of Business Administration Vol 2, No 5 (2013)
Publisher : The Indonesian Journal of Business Administration

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PT Nusantara Turbin dan Propulsi (NTP) is one of trusted excellence center leading in South East Asia in the field of engineering, maintenance, repair and overhaul of gas turbines and rotating equipment. PT NTP has two strategic business units, namely Aero Engine Services and Industrial Turbine Services. PT NTP facing a problem in achieving the target in terms of revenue and timeliness of project completion that led to customer dissatisfaction and also there is geopolitical issue that affects the company financial performance. Those problems are the overcome challenges of the company in the future. In accordance with those problems, this final project will discuss improvements an organization declining performance. Two methods were used to find out problem that occurred at NTP, first is quantitative; by distributed questionnaires among fulltime employees, and second is qualitative; by conduted interviews with managers and employees. Questionnaires spread to Managers, Supervisor, and Staffs were aims to analyze level of organization, groups, and individual. Organization criteria (by Mckinsey) are strategy, structure, system, skill, staff, style, and shared values. Group (by Thomas Cummings and Cristopher Worley) are task structure, group composition, team functioning, and group norms. Individual (by McShane and Von Glinow) motivation, ability, role of perception, and situational factors. To improve an organization declining performance, organization can be diagnosed at three different levels, namely individual level, group level, and organizational level. Those three levels are the main factor to improve an organization declining performance. Based on this analysis, it can be determined the level of organization that led to a declining performance of organization. The result of the analysis of the information obtained from PT NTP concluded that the level of organizational is the causes of the organization declining performance. The analysis that conducted is by improving the elements that derived from the Mckinsey 7-S framework, namely strategy, system, structure, skill, staff, style, and shared values. The implementation plan of those improvements is applied using the eight-step model of change from John P. Kotter. Keywords: Organization declining performance, organizational level, Mckinsey 7-S framework
Speedy Wifi, A TELKOM'S Business Strategy to Compete in Broadband Internet Access Business in Bandung Sari, Lidya; Soedjarno, Alibasjah Inggriantara
The Indonesian Journal of Business Administration Vol 2, No 9 (2013)
Publisher : The Indonesian Journal of Business Administration

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Currently the Internet is not regarded as a luxury, but it has been regarded as a primary need. This resulted in a change in lifestyle people who are looking for cheap internet access service, fast, and of course can be accessed wherever and whenever they want. Telkom Speedy (Speedy) is one of the flagship products from PT. Telkom, which provide Internet access service to the people of Indonesia. In 2011 ago, the average sales and customer sales increased significantly. Only in 2012 was not as good performance achieved in the previous year. To find out the root cause of this problem external and internal analysis is done. External analysis divides into macro and micro environment. Macro environment is using PEST. While micro environment is using porter five forces. The general summary of macro environment is a changing of people lifestyle in doing internet access, while for micro environment is a high competition between internet service providers.  For internal analysis is by doing analysis of Speedy product, which the result is Speedy offers high and stable speed access internet but couldn’t use in mobile. From the results of this analysis inferred that Speedy couldn’t answer the changing of lifestyle that happened in the market. The solution to the above problem was found by adjusting the analysis of strengths, weaknesses, opportunities and threats of the company (SWOT) and Porter Generic strategy options. The chosen strategy is cost leadership with product release Speedy WiFi. In addition Telkom has the power in the financial and sales channel distribution strategy is another reason why it was chosen because Speedy WiFi using existing network that already exists and wireless modem that has been installed on the customer side so it does not require an expensive cost. Segment to be addressed by Speedy WiFi are existing phone customers, potential customers phones, mobile internet subscribers, and new internet users. While the target to be addressed now is Telkom Speedy and existing customers from competitors. Positioning to be delivered from this product is a service to Internet users both normal and advanced users who need high speed internet and stable anytime, anywhere full of content and an affordable price. To maximize the sales of these products, promotional activities carried out above and below the line. The choice of a media campaign in which television, radio, print media, visits to educational institutions, offices institutions, communities, and doing canvassing Key Words: Telkom Speedy, Speedy WiFi
Measurement and Improvement of Employee Engagement Level , a study case in PT Dirgantara Indonesia (Persero) Purba, Sondang Romian; Gustomo, Aurik
The Indonesian Journal of Business Administration Vol 3, No 1 (2014)
Publisher : The Indonesian Journal of Business Administration

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Abstract— The high turn over rate  in  Directorate of Technology and Development and the  high overtime rate in the Directorate of Production in PT Dirgantara Indonesia are few circumstances that show the need of improvement in  employee engagement level.  The study is to measure and analyze the  employee engagement and give recommendation to improve the employee engagement level in PT Dirgantara Indonesia. The survey in this study will use the WIFI model, that will show how the employees think about the Wellbeing, Information, Fairness and Involvement dimensions in the company. The study was conducted using both qualitative nd quantitative methods. Qualitative methods were in-depth interviews and focus group discussion with selected employees, and the questionnaire is the one designed based on the questionnaire from Sarah Cook using the WIFI Model.  The results of the survey shows the most significant area to improve the level of employe engagement in PT Dirgantara Indonesia is Involvement Dimension.  To produce the atmosphere of involvement and encouraging the employee to get involved in PT Dirgantara Indonesia,  the sense of involvement need to happen at three levels. The first level is involvement with employee’s direct line that can be improved by the action of coaching and facilitating and empowering skills. The second level is involvement with other team,  consist of encouraging cross functional involvement. And the third level is Involvement with organization as a whole, that consist of the activity of making senior manager as Role Models.  Keywords: Employee Engagement, WIFI Model, Involvement 
Proposed Marketing Strategy to Increase The Number of Students of Study Programs For Yarsi University Amalia, Rizki; Purwanegara, Mustika Sufiati
The Indonesian Journal of Business Administration Vol 2, No 8 (2013)
Publisher : The Indonesian Journal of Business Administration

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Since the establishment of  School of Medicine in 1967 YARSI which consists of only one medicine faculty until they changed the status to YARSI University in 1989 until now, with five faculties,  many achievements have been reached and can be proud of. Among them are the best private medical college in Jakarta, and even nationally recognized. However, these conditions are not followed outside medicine faculty where less students when compared to medicine faculty. To find the root problems that facing by YARSI university and its solutions, a preliminary step is collecting data on both primary and  secondary  data. Secondary data used to analyze the macro environment, the porter's five force analysis, competitors analysis, segmenting, targeting and positioning, and marketing mix. Primary data used to consumer analysis with distributing questionnaire to and YARSI University  student. The result analysis are YARSI university does not have a strong marketing strategies and less optimal promotions so that could cause low awareness. Therefore, the proposed marketing strategy in accordance with current conditions as well as marketing communications strategy to increase the number of students who enroll in all YARSI  university courses. Keywords: higher education, YARSI, marketing strategy

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