Formulation of Business Strategy Utilizing Environmental Analysis and Business Model to Enhance Fully Burden Operating Income (FBOI) Case Study at PT Z Indonesia

anton yunius hutahaean; M. Riza Sutjipto; Rina Djunita Pasaribu

doi:10.18535/ijsrm/v13i07.em14

Abstract

A business strategy represents a company's comprehensive plan for attaining its projected business objectives within a defined timeframe. A critical performance indicator for a business unit is the achievement of its targeted profitability growth rate. A static or decreasing profitability rate is affected by multiple interconnected factors intrinsic to the business unit. Environmental and business model analyses furnish a holistic perspective of the business unit, facilitating the identification of business processes that can be optimized. This research aims to formulate an effective business strategy to enhance Fully Burden Operating Income case study at PT Z, a company in the oil field industry. A qualitative method with a case study approach is employed, involving Internal and external environmental analyses are conducted using the Resource-Based View framework, Value Chain Analysis, PESTEL, and Porter’s Five Forces. The results of these analyses are integrated into a SWOT/TOWS Matrix to develop strategies. Furthermore, Root Cause Analysis is integrated to identify the underlying issues hindering optimal FBOI performance within PT Z's business model. The TOWS matrix generated 40 strategies that were then combined, integrated and synthesized into 16 key strategies, then it is prioritized by priority. Those of strategies mainly focus on improvements to process efficiency and revenue enhancement, with the expected outcome of enhancing PT Z's profitability and maintaining the position as market leader within its industry. This research offers strategic business recommendations that are both comprehensive and practically applicable, with significant implications for fostering sustainable growth within the company.

Keywords

StrategyFBOIEnvironmental analysisBusiness Model

References

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[refR-2] Bourgeois, L., Meensel, J. V., Marchand, F., & Passel, S. V. (2024). Factors influencing business model change: a case study for the European crop protection industry. In British Food Journal (Vol. 126, Issue 13, p. 643). Emerald Publishing Limited. https://doi.org/10.1108/bfj-03-2024-0281DOI ↗Google Scholar ↗

[refR-3] Creswell, J. W. (2018). Research Design :Qualitative, Quantitative, and Mixed Methods Approaches. (5th ed.). USA: SAGE Publications, Inc.Google Scholar ↗

[refR-4] David, F. R., David, F. R., & David, M. E. (2017). Strategic management: Concepts and cases: A competitive advantage approach (16th ed.). New Jersey: Pearson Education.Google Scholar ↗

[refR-5] Freeman, J., & Waters, C. D. J. (1993). Inventory Control and Management. In Journal of the Operational Research Society (Vol. 44, Issue 3, p. 316). Palgrave Macmillan. https://doi.org/10.2307/2584204DOI ↗Google Scholar ↗

[refR-6] Miles, M. H. (2014). Qualitative Data Analysis, A Methods Sourcebook, (3rd ed.). USA: Sage PublicationsGoogle Scholar ↗

[refR-7] Mitchell, D. W., & Bruckner Coles, C. (2004). Business model innovation breakthrough moves. Journal of business strategy, 25(1), 16-26. http://dx.doi.org/10.1108/02756660410515976DOI ↗Google Scholar ↗

[refR-8] Novia, C., Pasaribu, R. D., Sutjipto, M. R., & Bustomi, D. (2022). ANALISIS BUSINESS MODEL CANVAS (BMC) CV MUNJUL JAYA KARAWANG. In Jurnal Ilmiah Manajemen Ekonomi & Akuntansi (MEA) (Vol. 6, Issue 3, p. 943). https://doi.org/10.31955/mea.v6i3.2445DOI ↗Google Scholar ↗

[refR-9] Osterwalder, A., & Pigneur, Y. (2012). Business Model Generation : A Handbook for Visionaries, Game Changers, and Challanger. Elex Media Komputindo.Google Scholar ↗

[refR-10] Osterwalder, A., Pigneur, Y. (2010). Business model generation: a handbook for visionaries, game changers, and challengers. New Jersey: John Wiley & Sons, Inc.Google Scholar ↗

[refR-11] Pasaribu, R. D., Shalsabila, D., & Djatmiko, T. (2023). Revamping business strategy using Business Model Canvas (BMC), SWOT analysis, and TOWS matrix. In Heritage and Sustainable Development ISSN 2712-0554 (Vol. 5, Issue 1, p. 1). https://doi.org/10.37868/hsd.v5i1.125DOI ↗Google Scholar ↗

[refR-12] Porter, M.E., (1985). Competitive Advantage. Free Press, New York, NY.Google Scholar ↗

[refR-13] Porter, M.E., (1980). Competitive Strategy. Free Press, New York, NY.Google Scholar ↗

[refR-14] Pratama, N. N., & Tricahyono, D. (2024). Designing a Digital Business Model Using SWOT Analysis and Business Model Canvas (Case Study of PT 372 Kopi Indonesia). In International Journal of Scientific and Management Research (Vol.7, Issue 10, p. 1).https://doi.org/10.37502/ijsmr.2024.71001DOI ↗Google Scholar ↗

[refR-15] Rust, R. T., Moorman, C., & Dickson, P. R.. Getting Return on Quality: Revenue Expansion, Cost Reduction, or Both?. Journal of Marketing, 66, 7–24.Google Scholar ↗

[refR-16] Singh, J., & Singh, H. (2012). Continuous improvement approach: state-of-art review and future implications. Emerald Group Publishing Limited 2040-4166. DOI 10.1108/20401461211243694DOI ↗Google Scholar ↗

[refR-17] Sutjipto, M.R., Ernie Tisnawati Sule, E.T., Sucherly., Kaltum, U. (2019). The effect of organizational relationship and competitive strategy on the performance of wholesale network service business in Indonesia. Journal of Entrepreneurship Education Volume 22, Issue 3, 2019.Google Scholar ↗

[refR-18] Sugiyono. (2013). Metode penelitian kuantitatif, kualitatif, dan R&D. AlphabetGoogle Scholar ↗

[refR-19] Teece, D. J. (2010). Business models, business strategy and innovation. Long range planning, 43(2), 172-194. http://dx.doi.org/10.1016/j.lrp.2009.07.003DOI ↗Google Scholar ↗

[refR-20] Wheelen, T. L., & Hunger, J. D. (2015). Strategic Management and Business Policy: Toward Global Sustainability (14th ed.). Pearson Education.Google Scholar ↗

[refR-21] Yi, H. D., Park, S., & Kim, J.-H. (2019). The Effects of Business Strategy and Inventory on the Relationship between Sales Manipulation and Future Profitability. In Sustainability (Vol. 11, Issue 8, p. 2377). Multidisciplinary Digital Publishing Institute.Google Scholar ↗