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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
Proposed Strategy Formulation of PT Jelajah Alam Raya Komunitas
The Indonesian Journal of Business Administration Vol 3, No 8 (2014)
Publisher : The Indonesian Journal of Business Administration

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Abstract. Increasing GDP for next decade will lead to increasing Indonesian middle class. It effected the growing of business travel in Indonesia. Based on data from World Travel and Business Council, Oxford Economics, 2013 Indonesia one the biggest contributor demand for business travel in the next 10 years. Indonesian travel market growth estimate in 2012 until 2020 is about 5.9 % per year. Based on the financial performance, JAR Travels have unhealthy financial condition, due to the actual revenue didn’t meet the target revenue. This condition resulted the target Break Even Point for one year is not reached. To get the problem solving of issues that occurred, the analysis strategy and proposed strategies will be discussed in this journal. The environmental scanning for external and internal are conducted to find the root cause. External scanning is done by using the PEST, Five Forces, Collaborator Analysis and Competitor Analysis. The internal scanning is done by using value chain tools. The results of the external and internal analysis is used to obtain directional strategy, proposed business strategy, and to generate functional strategy.From the analysis, JAR Travels is proposed to implement several strategy to achieve target revenue and BEP. The proposed of directional strategy is stability strategy with market penetration. Proposed business strategy is "Differentiation Focus". The proposed functional strategy are increasing online travel service by the build system, increasing capability in IT, maximizing online marketing, Increasing the function of HR, maximizing control in finance, increasing partnerships to support JAR Travels business, change distribution channels, create uniqueness products as competitive advantages, and market penetration to grab the opportunity.Keywords: strategic formulation, online travel community, business strategy
Proposed Marketing Strategy in Terms of Changes in Channel and Pricing Strategy of Foglia with The Purpose to Imporve The Sales
The Indonesian Journal of Business Administration Vol 2, No 5 (2013)
Publisher : The Indonesian Journal of Business Administration

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The fashion industry is as old as the idea of wearing clothes. This industry was born and evolved along with the increasing need for clothing. The increasing need for clothes opened many opportunities for businessmen offer many varied designs of clothes for the customer. Foglia is a new player in the fashion business. The company is established in July 2011. Foglia is a company engaged in woman’s clothing boutique online concept. Foglia creates its own design with a touch of lace as a uniqueness for every clothes offered. During the business, Foglia faces several issues. The most prominent issues are about pricing, promotion, and company business. Internal and external analysis are done to find the root cause. Internal analysis is performed to determine the strength and the weakness of the company whereas external analysis is performed to find out the external factor of the business that can influence the company. According to the analysis, there are two root causes. They are 1) Gap of pricing (company’s price tends to be expensive than customer willing to pay), and 2) Company business (remain on an online store boutique concept or do both online and offline store). Problem solving on this study begins with determining the company business, it is done based on the behavioral about buying clothes of the intended target market. The choices are remaining on online store boutique concept, changing in offline store boutique concept, or doing both online and offline boutique concept. The final step is determining the pricing strategy for Foglia in order to conform with the intended target market. The propose solution for Foglia is do online and offline boutique concept. This is done to attract prospective customers who usually buy clothes in online store and physical stores. The last solution is set the appropriate price by using penetration pricing strategy and choosing promotion price strategy to stimulate early purchase from the customer and to expand the market share of Foglia.    Keywords: Online Store, Offline Store, Penetration Price, Promotion Price, and Fashion
Designing Internal Audit Rating for Evaluating The Implementation of Risk Management and Internal Control at PT Bank BNI Syariah
The Indonesian Journal of Business Administration Vol 3, No 5 (2014)
Publisher : The Indonesian Journal of Business Administration

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Abstract—Under Law 10 of 1998 on the Amendment of Act No. 7 of 1992 Article 29, every bank in Indonesia are required to have and implement a system of internal control in order to guarantee the implementation of the decision-making process in the management of the bank in accordance with the precautionary principle. Therefore, since the BNI Syariah spin off the Internal Audit Division (IAD) was formed in June 2010 for internal control function. IAD BNI Syariah Division has oversight directly and indirectly to all of these areas and produce a qualitative audit report. That why the audit report are not comparable either by the auditee or per audit period. In addition it is sometimes difficult to conclude the qualitative audit reports that will impact on decision making erroneous. This project aims to provide a model of the proposed Internal Audit Rating (IAR) as a tool to calculate the final measurement of the quantitative audit results. There are two main components of IAR which is assessment criteria and weighting of each of the criteria. In determining the major components of IAR, survey, observation and literature review are conducted to find the calculations model in accordance with the needs of BNI Syariah. Research conducted indicates that IAD Related parties need IAR for their stated objectives. Criteria and weights used in the calculation of the IAR is Risk Management (30%), Internal Control (25%), Auditee Performance (15%), Sharia Compliance (20% ) and Audit findings Follow-up (10%). Periodic review of the weights of each criterion is necessary in evaluating IAR. Keywords: Risk Management, Internal Control, Sharia Compliance, Auidtee Performance, Audit Findings Follow up.
Production Planning Improvement Stamping Plant Company (Case Study: PT.TDS)
The Indonesian Journal of Business Administration Vol 2, No 2 (2013)
Publisher : The Indonesian Journal of Business Administration

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PT.TDS is a stamping plant company located in Bekasi, Indonesia. Their main costumers are automotives spare-parts and component suppliers.  In early 2012, PT.TDS experience loss due to the high number of cost of good sold (COGS) which cover 89% of revenue. It is estimated that the company will have a loss in the end of the year. Therefore, the company need to find alternatives to avoid and minimizes the estimated loss. Problem is cause by internal and external factors. This paper will focus on the internal factors that influence to the high of overtime wages which representing approximately 3 to 6 % cost of good sold monthly. Root cause of high overtime wages are includes poor productivity planning, increase absenteeism, and increase of reject rates.  A good production planning for PT.TDS should be able to lower overtime wages while at the same time anticipated increase of absenteeism and accommodate rework due to reject parts. Problem solution for PT.TDS are include improvement in production planning by using constant output strategy, controlling overtime through different working hour policy  based on job classification and new working scheduling system. By conduction recommended production planning improvement the company should be able to reduce COGS/sales from 89% to 84%. As the result, cost analysis of implementation shown that not only the company could avoid loss in future years but is also could generate profit. Proposed problem solution required participation from all departments related to production activities. To ensure related department received adequate knowledge regarding their roles in the new production system, development of proposed solution and training need to be conduct.  Keywords: Stamping plant, COGS reduction, Production planning
Transition Management of Knowledge Workforce in The Grasberg Surface Mine and Underground Mine
The Indonesian Journal of Business Administration Vol 4, No 10 (2015)
Publisher : The Indonesian Journal of Business Administration

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Abstract – PT. Freeport Indonesia is a subsidiary company of Freeport McMoRan Copper & Gold Inc. (FCX) which hold 81.28% of its share, GOI (9.36%), and PT. Indocopper Investama (9.36%). PTFI was establish on April 8th, 1967, which the main business is produce and distributing concentrate copper and gold. Grasberg Surface Mine was contributing 80% of concentrate production for all PTFI revenue’s since 26 years ago and will be closure by early 2018. Safety slope stability issue is become the main reason to closure the Grasberg surface mine, then will be continued by using block cave technic of underground mine – Grasberg Block Caving ( GBC). Grasberg mineral district have a remaining deposit of minerals ore 2.4 million tons. In line with  the developing of infrastructure which estimating require of capital around US $ 16 billion since 4 years, GBC also posting the manpower requirement. In other side Grasberg will have a surplus manpower due to ramping down of production afterward the mine closure. Currently PTFI faced strategic problem related the manpower such as (i) termination of 1,271 Grasberg manpower is need huge cost for final payment, and will impacted to PTFI reputation as a mining operator in Indonesia and also negative impact to drop of share price (ii) the limitation of availability manpower experienced in underground miner to fulfil underground manpower requirement (iii) Grasberg workforce knowledge transition was built to assessment shifting the manpower from Grasberg to Underground mine (iv) Resistance of manpower mixing with gap competencies & skill to-be job in underground  need to be created strategy and approach (v) Timing gaps between Grasberg manpower released plan as supplied and underground mine manpower requirement schedule as demand have possibility disturbing the ore production goals.  Therefore in anticipation the manpower problem issue with some potential alternatives (i) Transition management program of knowledge workforce strategy and approach (ii) Enrichment and reskilling program of basic competencies (iii) Organizational change which lead by change management (iv) Involving all stakeholder to support change management.  Keywords: Knowledge Workforce, Transition Management, General Environment Analysis, Five Forces of Competitor, QSPM, The Jay Galbraith Star Model, Force Field Analysis, Change Management  
Marketing Strategy for Rennika Studio
The Indonesian Journal of Business Administration Vol 4, No 6 (2015)
Publisher : The Indonesian Journal of Business Administration

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Abstract - Creative industry has become one of the biggest supporter for national income for growth and develop country. In Indonesia, creative industry continuously contributed to increasing income each year. One of the creative industry product is clip art. Clip art is ready made art, designs, graphics, and photographs that come bundled with illustration software packages. Today, clip art is used for printable items, like printable greeting cards, printable planner and printable calendar. For printable items, more pricey than the ordinary clip art. Rennika Studio is a small business that sells clip art and printable items, started in January 2013. Rennika sells their products at Etsy.com, an online sales site. Rennika sales demonstrated a significant drop of 25% in February 2014. The root cause of the sales decline is less product variation, have no marketing activities and owner had experienced saturated.To solve the business issue, analysis about internal and external factors is needed. External factor analysis consists of Porter’s Five Forces and Competitor Analysis, while STP and Marketing Mix 4P are used to analyze internal factor. In addition, the result of interview with the owner and customers of Rennika Studio becomes one of sources in listing SWOT of Rennika Studio. From SWOT result, TOWS matrix is utilized to generate some alternative marketing strategies for Rennika Studio. There are 12 proposed marketing strategies for Rennika Studio which are formulated into marketing mix 4P. Some of these strategies has been implemented by Rennika Studio started December 2014, the strategies are creating new product with ethnic theme, make promotion through social media, make website for Rennika, and also accept special customized order from customer. After doing the strategies, by January 2015 Rennika already enjoyed a sales increase of 15%. This progress encourages Rennika to grow her business further. Hopefully Rennika can double and differentiate her products further and start to implement the other strategies that can give more advantages for Rennika.Keywords: Marketing Strategy, Creative industry, Clip art, Printable product
Strategic Importance Analysis of PT Telkom Telecommunications Products According to Critical Performance Indicators of The Products in Telecommunication Industry
The Indonesian Journal of Business Administration Vol 3, No 2 (2014)
Publisher : The Indonesian Journal of Business Administration

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Abstract - Analysis of product strategic importance needs to be undertaken by companies to manage product portfolio also to develop product. TELKOM needs to assess their product strategic importance, to select which products were more important to the company for forseeable future. This study would help TELKOM in selecting the most important product from six of telecommunication products that has contribute to majority of TELKOM income: Wireline Voice, Astinet, Metro Ethernet, IP Transit, VPN and Speedy, throughexamining critical success factors behindproducts. Critical success factors of products were obtained through studying product development concept using literature review. While, critical success factors of telecommunication industry was obtained through adapted Grounded Theory (GT) method using literature review and knowledgeable employee interview. Based on these findings and knowledgeable employee interview, critical performance indicators of fixed wireline and internet and data products were formed. It was continued by selecting critical performance indicators of TELKOM’s product and determining product strategic importance for 0-3 and 3-5 years ahead using Analytic Hierarchy Process (AHP) model. Resultsfor the most important product for the next 0-3 and 3-5 years were then justified and verified by employee opinions. AHP results indicated that Speedy was the most important product for TELKOM during 0-3 and 3-5 years ahead, with relative weight 0,204 and 0,241 respectively, which strengthen by employee verifications. Therefore, to develop Speedy TELKOM needs to conduct two things, which were maintaining performance of Speedy through its factors and organize different perspectives between Marketing and Product divisions.Keywords: product strategic importance, product’s critical success factors, product portfolio management, telecommunication, product development.
Stock Option Return Analysis at Indonesia Stock Exchange: An Empirical Study using One Touch Barrier and Black Scholes Model Period 2007 – 2011
The Indonesian Journal of Business Administration Vol 1, No 9 (2012)
Publisher : The Indonesian Journal of Business Administration

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Stock option is one of the option contracts which use stock as the underlying assets.Stock option itself has been traded in Indonesia at Indonesia Stock Exchange (IDX)  with  four  stocks  that  could  be  traded  for  stock options and they are PT Astra International Tbk (ASII), PT Bank Central Asia Tbk (BBCA), PT Indofood SuksesMakmurTbk (INDF), dan PT Telekomunikasi Indonesia Tbk (TLKM).Indonesia option can be considered as an American style barrier option with automatically exercise if the price hitsthe barrier level before  maturity.  Indonesia  stock  option  trading activity experienced the void trading in 2006, 2009, 2010 until 2011 and could be concluded that market is not attracted to this investment. The option exercise mechanism seems do not match with the expectation of investors. IDX should consider about other stock option trading mechanism and also other situations related to stock option that could attract market to invest in stock option. Keywords: Investment, Stock Option, One Touch Barrier, Black Scholes, Indonesian Option
An Analysis Project Quality Management Case: Housing Development Project at Griya Cempaka Residential Tambun
The Indonesian Journal of Business Administration Vol 4, No 7 (2015)
Publisher : The Indonesian Journal of Business Administration

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Abstract– Griya Cempaka Residential Tambun is a residential project which developed by PT. Daya Propindo Abadi. The problem of Griya Cempaka Residential is low quality house, the house that was build has oblique shapes and use of poor material. This problem solved by analyzing the project using qualitative analysis and use project quality management tools namely Fishbone diagram and Work Breakdown Structure. This final project objective is to suggest a project quality management by processing information from interview and project’s documents to solve project problems that could be used by developer to manage their house quality especially in Griya Cempaka Residential project. The analysis of project quality management on this project resulted in two implementation plans. The first implementation plan is create a complete house specification and working drawing that should be used in project contract, so it could achieve the expected quality. To support it, the second implementation plan is create work guidance and control that could be used by developer especially project inspector and contractor especially foreman to control and report the progress of the house as good physical form, so it could minimize additional effort of low quality.Keywords: project quality management, work guidance and control, house quality
Business Strategy Formulation and Business Model Development of Ewako!shoes
The Indonesian Journal of Business Administration Vol 4, No 4 (2015)
Publisher : The Indonesian Journal of Business Administration

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Abstract.Ewako!shoes offer shoes using traditional hand–woven silk from Sengkang as hallmark. This final project purpose is finding appropriate business strategy for ewako!shoes by analyzing internal and external environment which obtained from observation and interview then formulated into EFAS and IFAS calculations. Next, the calculation results are plotted into grand strategy matrix. The results show that ewako!shoes positioned in growth strategy quadrant which has two strategy options, concentration and diversification. After thorough analysis, the most suitable corporate strategy for ewako!shoes is concentration strategy with focus on horizontal integration while the appropriate business strategy is differentiation focus. Finally, the author formulated implementation action plans based on strategy formulation result and development of current business model. Keywords: Business Strategy, Growth Strategy, Concentration Strategy, Business model Development   

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