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ANALYSIS OF BUSINESS STRATEGY IN
IMPROVING COMPETITIVE ADVANTAGE
CASE STUDY: CV. CIPTA BUMI LESTARI
(ADDICTEA BRAND)
By
Ayu Purnama Sari
(014201100038)
A Skripsi presented to the
Faculty of Business President University
in partial fulfillment of the requirements for
Bachelor Degree in Economics Major in Management
February 2015
i
PANEL OF EXAMINERS
APPROVAL SHEET
The Panel of Examiners declare that the Skripsi entitled “Analysis Of
Business Strategy In Improving Competitive Advantage Case
Study: CV. Cipta Bumi Lestari (Addictea Brand)” that was
submitted by Ayu Purnama Sari majoring International Business from
the Faculty of Business was assessed and approved to have passed the
Oral Examinations on February 6th 2015.
Dra. Genoveva, MM
Chair – Panel of Examiner
Ir. Erny Hutabarat, MBA
Examiner I
Misbahul Munir MBA., Ak., CPMA
Examiner II
ii
SKRIPSI ADVISER
RECOMMENDATION
LETTER
This Skripsi entitled “(Analysis Of Business Strategy In
Improving Competitive Advantage Case Study: CV. Cipta
Bumi Lestari (Addictea Brand)” prepared and submitted by
Ayu Purnama Sari in partial fulfillment of the requirements
for the degree of B.Sc in the Faculty of Business has been
reviewed and found to have satisfied the requirements for a
Skripsi fit to be examined. I therefore recommend this Skripsi
for Oral Defense.
Cikarang, Indonesia, January 22nd
, 2015
Acknowledged by, Recommended by,
Vinsensius Jajat K. SE., MM., MBA. M. Munir MBA., Ak., CPMA
Head, Management Study Program Advisor
iii
DECLARATION OF
ORIGINALITY
I declare that this Skripsi, entitled “Analysis Of Business Strategy In
Improving Competitive Advantage Case Study: CV. Cipta Bumi
Lestari (Addictea Brand)” is, to the best of my knowledge and
belief, an original piece of work that has not been submitted, either in
whole or in part, to another university to obtain a degree.
Cikarang, Indonesia, January 22nd
2015
Ayu Purnama Sari
iv
ABSTRACT
The purposes of this research are to know the internal and external factors
and develop the best alternative strategy for CV. Cipta Bumi Lestari. This
research conducted in the scope of CV. Cipta Bumi Lestari with the object of
research is limited only to internal and external factors and alternative strategy as
an independent variable and best strategy formulation as dependent variable.
Informants for this research are 4 peoples. Research method used is qualitative
research with tools IFE, EFE, IE-Matrix, SWOT Matrix, and QSPM. Limitations
of the study are this research just covers market area for beverage industry in
Bandung and Jakarta only, and special for milk tea in the bottle as a tea beverage.
The result of this research is researcher find 9 alternative strategies for company
such as open new spot and adding new reseller outside Bandung and Jakarta, also
more active in social media with TAS 7.315 and the last alternative strategy is
recruiting new employee with TAS 4.703. Then, as a conclusions derived from
this study are company should set a SOP for management and develop the
alternative strategy to increasing the competitive advantage of addictea.
Keywords: milk tea, strategy, alternative strategy, IE, SWOT, QSPM
v
ACKNOWLEDGEMENT
I would like to express my first and foremost gratitude to Allah SWT for health,
opportunity, amazing life ever, and His blessing and guidance for me in
accomplishing this Skripsi as the fulfillment in obtaining bachelor degree Faculty
of Business. Through this opportunity, I would like to express the deepest
appreciation to: Mr. Irfan Habsjah MBA., CMA. as my adviser, Thank you so
much for your guidance advice, support, and suggestions until I finished and
completed this Skripsi; CV. Cipta Bumi Lestari who has giving me a chance to
doing this research. Especially big thanks to Ms. Mutia, Ms. Shisy, and Mr. Iqbal
for support me and help me while brainstorming about this Skripsi; my parents,
Mama and Papa who always support me and never ending love; my best partners
who always help me while doing this research: Dean Rachman Putra, Rizki
Andira Lauria, and Hanang P. Paranta. Thank you so much guys for helping me
in every single things while I‟m doing this Skripsi; my beloved best friends who
completing me and always stand in all of my conditions: Luthfi, Olivia, Eja, Rara,
Reza, Dhita, Alfi, Furqoni, Idham, Icha, Saroha, Kristiantho, Ditta, Luqman,
Ajeng, Andini and Agistia. Thank you for the support, best memories ever in my
college life; and lastly, to all parties that I cannot mention one by one who
participate, helped advices and contributes to this research.
Cikarang, January 22nd 2015
Ayu Purnama Sari
vi
Table of Contents
Panel Of Examiners Approval Sheet ............................................................. i
Skripsi Adviser Recommendation Letter .....................................................ii
Declaration of Originality ........................................................................... iii
ABSTRACT ................................................................................................... iv
ACKNOWLEDGEMENT ............................................................................. v
List of Table ................................................................................................... ix
Table of Figure ............................................................................................... 6
CHAPTER
I. INTRODUCTION
1.1 Background of the Study .......................................................................... 1
1.2 Problem‟s Identification ........................................................................... 2
1.3 Statement of the Problem ......................................................................... 3
1.4 Research Objectives ................................................................................. 3
1.5 Definition of Terms .................................................................................. 3
1.6 Scope and Limitations .............................................................................. 6
1.7 Research Benefits ..................................................................................... 6
II. REVIEW OF LITERATURES
2.1 Theoretical Review .................................................................................. 8
2.1.1 Strategy Concepts ......................................................................... 8
2.1.2 Strategic Management Concept.......................................................9
2.1.3 Strategic Management Process ...................................................... 9
2.1.4 External Environmental Analysis ................................................ 11
2.1.5 Marketing Concepts .................................................................... 14
2.1.6 Marketing Mix ............................................................................ 16
2.1.7 Generic Competitive Strategic .................................................... 17
2.1.8 SWOT Analysis .......................................................................... 18
vii
2.1.9 SWOT Matrix ............................................................................. 19
2.1.10 QSPM......................................................................................... 20
2.2 Previous Research .................................................................................. 21
2.3 Theoretical Framework .......................................................................... 23
2.4 Operational Definition ............................................................................ 24
III. METHODOLOGY
3.1 Research Design ..................................................................................... 26
3.1.1 Location and Time of Research .................................................... 26
3.1.2 Types and Sources of Data ........................................................... 26
3.2 Key Informant ........................................................................................ 27
3.3 Research Instrument ............................................................................... 28
3.3.1 Description Analysis..................................................................... 28
3.3.2 Formulation Process of Alternative Strategy ................................. 28
3.3.3.1 The Input Stage ............................................................... 29
3.3.3.2 The Matching Stage ......................................................... 33
3.2.2.3 The Decision Stage .......................................................... 37
3.4 Validity and Reliability .......................................................................... 39
3.5 Data Collection Procedure ...................................................................... 40
IV. ANALYSIS OF DATA AND INTERPRETATION RESULTS
4.1 Company Profile .................................................................................... 42
4.1.1 Company History and Development ............................................. 42
4.1.2 Vision and Mission ....................................................................... 43
4.1.3 Decision of Company ................................................................... 43
4.1.4 Code of Ethic................................................................................ 44
4.1.5 Location of Company ................................................................... 44
4.1.6 Organizational Structure of Company ........................................... 45
viii
4.1.7 Operational Activity of Company .............................................. 45
4.2 Data Analysis ......................................................................................... 45
4.2.1 Internal Environmental Analysis ................................................... 46
4.2.2 External Environmental Analysis .................................................. 52
4.2.3 Industry Environment ................................................................... 54
4.3 Interpretation of Results ......................................................................... 57
4.3.1 Internal Strategy Factors ............................................................... 57
4.3.2 External Strategy Factors .............................................................. 59
4.3.3 IFE and EFE Matrix Analysis ....................................................... 62
4.3.4 IE Matrix Analysis ....................................................................... 65
4.3.5 SWOT Matrix Analysis ................................................................ 66
4.3.6 QSPM Analysis ............................................................................ 70
V. CONCLUSIONS AND RECOMMENDATIONS
5.1 Conclusion ............................................................................................. 72
5.2 Recommendations .................................................................................. 72
REFERENCES ................................................................................................ 74
APPENDICES.................................................................................................. 78
ix
LIST OF TABLES
3.1 IFE Matrix ............................................................................................. 30
3.2 EFE Matrix ............................................................................................ 31
3.3 Weighted Assessment of External Factor Strategic ................................. 33
3.4 Weighted Assessment of Internal Factor Strategic ................................. 33
3.5 SWOT Matrix ........................................................................................ 37
3.6 QSPM Analysis ...................................................................................... 39
4.1 Addictea Spot ......................................................................................... 44
4.2 Product‟s Size ........................................................................................ 48
4.3 Product‟s price ....................................................................................... 48
4.4 Production Process ................................................................................. 50
4.5 List of Existing Competitors ................................................................... 55
4.6 Compare: addictea with existing competitors.......................................... 57
4.7 IFE and EFE Matrix for competitors ...................................................... 58
4.8 IFE Matrix CV. Cipta Bumi Lestari ........................................................ 63
4.9 IFE Matrix CV. Cipta Bumi Lestari ....................................................... 64
4.10 IE Matrix Analysis ................................................................................. 66
4.11 SWOT Matrix CV. Cipta Bumi Lestari................................................... 66
4.12 QSPM CV. Cipta Bumi Lestari .............................................................. 70
x
LIST OF FIGURES
2.1 The Strategy – Formulation Analytical Framework ................................ 10
2.2 PEST forces ........................................................................................... 12
2.3 Porter Five‟s Forces ............................................................................... 13
2.4 The Five Generic Competitive Strategic ................................................. 17
3.1 Framework For Strategy Analysis Formulation ...................................... 28
3.2 Internal-External Matrix ......................................................................... 35
4.1 Organizational Structure ......................................................................... 45
1
CHAPTER I
INTRODUCTION
1.1 Background of the Study
In this modern era, competitiveness in every industry is going tighter,
especially for food and beverage industry. In Indonesia which is the 5th largest
populations in the world, F&B industries are going more variety. This is one
of the huge markets for every player in F&B industry to offers and sells, also
gain profit from the customers. In Indonesia, beverage business is booming
especially for coffee and tea. If we go to mall, food court, super and
hypermarket, we can see and find a lot of coffee shop with variety brand (start
from local brand to global brand). Nowadays, almost cities in Indonesia had a
coffee shop. Drinking coffee while talking and meeting with our friends or
partner is become a new lifestyle for peoples in this era. However, in the last
recent years, tea become booming and had a special place in tea lover‟s
hearts.
Tearoom starts popping up. Of course not a big number like a coffee shop
but we can find tearoom easily in the shopping centers. See the changes of
lifestyle, most of coffee shop added tea to their menu. Tea with package
(bottles, plastic cup, etc) is coming out with many varieties of flavor and
brand. Not only served as beverage, now there are some variants of cookies
with tea flavors, especially green tea.
Let‟s we flash back to 1684. As already known, tea plant was first entered
Indonesia in 1684, in the form of Japanese tea seeds brought by a German
named Andreas Cleyer, and planted as an ornamental plant in Jakarta.
The success of planting large-scale experiment in Purwakarta West Java and
in Banyuwangi East Java pave the way for Jacobs Isidore Loudewijk Levian
Jacobson, an expert on tea, put the foundation for the tea plantation business
2
in Java. In 1828 during the reign of Governor Van Den Bosh, tea became one
of the plants should be planted on the people through politics Forced
Cultivation (Culture stelsel).Since then the tea to be part of community life
(1).
Since 2012, innovation of tea beverage is booming in Asia, such as
1Taiwan, Hong Kong, China, also Indonesia. The first comer for this industry
in Indonesia is Cha Time with tagline “Good Tea Good Time”. Cha Time
provided tea beverage with many variants and topping, that‟s why this
franchise like a mushrooms in the rains seasons because most of peoples love
this beverage and match with Indonesia seasons. In the same years, addictea
born as a pioneer of milk tea in the bottles with 6 variants Thai tea, Green tea,
Taro milk tea, Banana milk tea, Coffee milk tea, and Minty milk tea.
This research proposed to identify and analyze the strategy of business for
CV Cipta Bumi Lestari. Result of the study can be used as a barometer for tea
industry in Indonesia, especially for local brand beverage (innovation of tea
beverage; milk tea) to face the changes of market needs, increasing
competitiveness, new innovation, etc.
1.2 Problem’s Identification
CV. Cipta Bumi Lestari established in Bandung 2011 as a pioneer of milk
tea beverage in the bottles with 6 variants and 3 kinds of size (S240ml,
M450ml, L1000ml). Strategy that addictea used are to changes the new trend
of drinking tea with many variants, no harmful so can be consumed start from
child until adult, eye catching package so can be suitable with teenagers life
style who always uploading everything to social media, etc.
1 http://teapackages.wordpress.com/2010/12/15/sejarah-teh-di-indonesia-history-of-tea-in-
indonesia/)
3
Nowadays CV. Cipta Bumi Lestari facing the problems such as many
competitor also new entrants who copy paste and following the shape of the
bottles, variants, and selling price cheaper than addictea
1.3 Statement of the Problem
Conditions and problems that already describe in background of study,
company needs to make a plan and decision to set the strategy and alternative
strategy to face the high competition in beverage industry (looks from internal
and external factor). Here the statement of the problem for this research:
1) What are the internal conditions (strengths and weaknesses) and external
conditions for CV. Cipta Bumi Lestari?
2) How to develop the alternative strategies for CV. Cipta Bumi Lestari?
3) What are the best alternative strategies that we can use for increasing
competitiveness for CV. Cipta Bumi Lestari?
1.4 Research Objectives
Based on the problems identification that already mentions, the objectives of
the research are:
1. To identifies the internal and external factors that faced by CV. Cipta
Bumi Lestari.
2. To develop the alternative strategies for CV. Cipta Bumi Lestari based on
the result of analysis.
3. To decide the best and suitable strategy for CV. Cipta Bumi Lestari while
operating the business.
1.5 Definition of Terms
Here some definition of terms that used in this research, they are:
4
a. Strategy
Strategy is all of these perspective, position, plan, and pattern. Strategy is
the bridge between policy or high-orders goals on the one hand and tactics
or concrete actions on the other. (Fred Nickols, 2012).
b. Management
Process and the activities of leading business and direction of the
organization of duties show inside the making of an organization that has
been set goals. (Rosyidi, 2010).
c. Strategic management
Strategic management refers to the analysis of the factors associated with
the externals (customers and competitors) and internal (organization)
environments. It can also be defined as the analysis of the activities and
processes that organizations use to coordinate and align resources with
their mission, vision, and strategy.
d. Strategy formulation
Strategy formulation includes planning and decision-making involved in
developing organization‟s strategic goals and plans.
e. Marketing strategy
Marketing strategy is developed at different levels of an organization,
across core marketing functions (the horizontal dimensions), and for
marketing executions and control functions (the implementation
dimension).
f. Competition
Competition is a situation in which someone is trying to win something or
be more successful than someone else.
5
g. Competitive Advantage
Competitive advantage is what distinguishes you form the competitions in
the minds of your customer. (Kimberly Amadeo, 2014)
h. Internal Factor Evaluation (IFE) matrix
Internal Factor Evaluation (IFE) matrix is a strategy tool used to evaluate
firm‟s internal environment and to reveal its strengths as well as
weakness.
i. External Factor Evaluation (EFE) matrix
External Factor Evaluation (EFE) matrix is a strategy tool used to examine
company‟s external environment and to identify the available
opportunities and threats.
j. Internal – External (IE) matrix
Internal-External (IE) matrix is another strategic management tool used to
analyze conditions and strategic position of a business. This is based on an
analysis of internal and external business factors which are combined into
one suggestive model.
k. SWOT matrix analysis
SWOT analysis is an analytical tool used for the identification and
categorization of internal and external factors. Strengths and weaknesses
in SWOT analysis are termed as internal factors while opportunities and
threats termed as an external factors.
1) Strengths refer to internal characteristic which may be
deemed favorable for the organization.
2) Weaknesses refer to internal characteristic which may be
deemed unfavorable for the organization.
3) Opportunities are external characteristic which
organization may use to its advantage.
6
4) Threats are external characteristic which may be potential
sources of failure to the organization.
l. QSPM analysis
Quantitative Strategic Planning Matrix analysis is a high - level strategic
management approach for evaluating possible strategies. QSPM provides
an analytical method for comparing feasible alternative actions.
1.6 Scope and Limitations
In this study, the researcher will gather the opinion and make an interview
with the owner of addictea, addictea staff, and addictea customers. The
researcher collects the data from journal, article, and survey to addictea home
production and previous research regarding analysis strategic business for
F&B industry.
In here, the researcher will limitation the area for milk tea market,
Bandung and Jakarta area only. For kind of product, just for milk tea in the
bottle. However, the time constraints limit the researcher to accomplish the
research process in a short time.
1.7 Research Benefits
This research would give important significance to related parties in the
field of Indonesia local product for Beverage industry.
To Researcher
a. To analyze internal condition which is can be the strength and
weakness for CV. Cipta Bumi Lestari.
7
b. To analyze external condition which is can be the opportunities
and threats for CV. Cipta Bumi Lestari.
c. Help to make a decision what is the best and suitable strategy
for CV. Cipta Bumi Lestari to increasing competitive
advantages of their products.
d. Gain knowledge about business strategy in the real market
To Future Researcher
This research will give advantages for future researcher who want
to make research or can be used as reference for doing some
project that have related topic to trends of tea beverage in
Indonesia especially in trend of milk tea.
To CV. Cipta Bumi Lestari
a. Known about the best strategies while facing the competitors
b. Known about their SWOT analysis
c. Can be a leader in the market and dominate market not just in
Bandung area.
8
CHAPTER II
REVIEW OF LITERATURES
2.1 Theoretical Review
2.1.1 Strategy concepts
Strategy is the basic concepts that every company should
maintain. Without strategy, company cannot maintain their business and
cannot able to compete with competitors in the market. As we know, in
this era, there is a lot of variety of business that people do because what
peoples need and want always changes and increase day by day. There
are many strategies which can be chose by company like acquisition,
joint venture, market penetration, etc. the common meaning of strategy
is all of these perspectives, position, plan, and pattern. Strategy is the
bridge between policy or high-orders goals on the one hand and tactics
or concrete actions. Strategy and tactics are together straddle the gap
between ends and means. Strategy is at once the court that we chart, the
journey we imagine and, at the same time, it is the course we steer, the
trip we actually make (Fred Nickols, 2012)
2.1.2 Strategic management concepts
Strategic management refers to the analysis of the factors
associated with the externals (customers and competitors) and internal
(organization) environments. It can also be defined as the analysis of the
activities and processes that organizations use to coordinate and align
resources with their mission, vision, and strategy. (answer.com, 2012)
According to (David, 2010, p.5), strategic management can be
defined as an art and science of formulating, implementing, evaluating
the cross-functional decisions that will enable an organization to achieve
9
its objectives. Strategic management integrates the activities of the
various functional sectors of a business, such a management, marketing,
finance, and accounting, production and operation, research and
development, and computerized system to achieve the organizational
goals. The purpose of strategic management is to exploit and create new
and different opportunities for tomorrow or long term planning, and
seek to optimize the trends today for tomorrow.
2.1.3 Strategic management process
The strategic management process is best implemented when
everyone within the business understands the strategy. The five stages
of the process are goal-setting, analysis, strategy formulation, strategy
implementation, and strategy monitoring. (Jim Clayton, Feb 2013)
1. Goal – setting
The purpose of goal-setting is to clarify the vision for
your business. This stage consist of identifying three keys
facets: first, define both of short and long term objectives.
Second, identify the process of how to accomplish your
objective. The final step is to write a mission statement that
succinctly communicates your goals to your shareholders and
staff.
2. Analysis
In this stage, gather as much information and data
relevant to accomplishing your vision. The focus of the
analysis should be on understanding the needs of the business
as a sustainable entity, its strategic direction and identifying
initiatives that will help your business grow. Examine any
internal or external issues that can affect your goals and
objectives. Make sure to identify both strengths and
weaknesses of your organization as well as any threats and
opportunities that may arise along the path.
10
3. Strategy formulation
The first step in forming the strategy is to review the
information gleaned from completing the analysis. Determine
what resources the business currently has that can help reach
the defined goals and objectives. Started from determine
vision, mission and decision of the company, identification the
internal and external environment analysis, find some
alternative strategies by using Internal-External (IE) Matrix
and SWOT Matrix analysis, and the last step is determine the
most suitable strategy by using QSPM analysis.
The firm‟s present strategies, objectives, and mission, coupled with
the external and internal audit information, provide a basis for
generating and evaluating feasible alternative strategy (David,
2011). Important strategy-formulation techniques can be integrated
into a three-stage decision-making framework (David, 2011):
Figure 2.1 The Strategy – Formulation Analytical Framework
(Source: Fred R. David, 2011)
4. Strategy implementation
Successful strategy implementation is critical to the
success to the business venture. This is the action stage of the
strategic management process. If the overall strategy doesn‟t
11
work with the business‟ current structure, a new structure
should be installed at the beginning of this stage.
5. Strategy monitoring
Strategy evaluation and control actions include
performance measurements, consistent review of internal and
external issues and making corrective actions when necessary.
Any successful evaluation of the strategy begins with defining
the parameters to be measured. These parameters should
mirror the goals set in Stage 1. Determine your progress by
measuring the actual results versus the plan. Monitoring
internal and external issues will also enable you to react to any
substantial change in your business environment. If you
determine that the strategy is not moving the company toward
its goal, take corrective actions. If those actions are not
successful, then repeat the strategic management process.
Because internal and external issues are constantly evolving,
any data gained in this stage should be retained to help with
any future strategies.
2.1.4 External Environmental analysis
1. Macro environmental analysis
PEST or PESTEL analysis is a simple and effective tool used in
situation analysis to identify the key external (macro environment
level) forces that might affect an organization. These forces can
create both opportunities and threats for an organization.
Therefore, the aim of doing PEST is to:
a. Find out the current external factors affecting an
organization
b. Identify the external factors that may change in the future
12
c. To exploit the changes (opportunities) or defend against
them (threats) better than competitors would do
Figure 2.2: macro environment forces affecting a firm (PEST forces including legal,
environmental, ethical, and demographic forces)
PEST analysis is also done to assess the potential of a new
market. The general rule is that the more negative forces are affecting
that market the harder it is to do business in it. The difficulties that we
have to be dealt with significantly reduce profit potential and the firm
can simply decide not to engage in any activity in that market. (Ovidijus
Jurevicius, 2013).
2. Industry analysis
Industry analysis also known as Porter‟s Five Forces analysis
is a very useful tool for business strategist. It is based on the
observation that profit margins vary between industries, which can
be explained by the structure of an industry.
13
a) Porter’s Five Forces Analysis
Figure 2.3 Porter‟s Five Forces (source: article by Ville Kilkku, 5 july 2014)
1) Industry rivalry (degree of competition among existing firms)
intense competition leads to reduce profit potential for companies
in the same industry.
2) Threat of substitutes (product or services) availability of substitute
products will limit your ability to raise prices.
3) Bargaining power of buyers, powerful buyers have a significant
impact on process.
4) Bargaining power of suppliers, powerful suppliers can demand
premium prices and limit your profit.
5) Barriers to entry, acts a deterrent against new competitors.
b) Industry analysis and competition
Competition within an industry is grounded in its
underlying economic structure. It goes beyond the behavior
current competitors. The collective strength of these forces
determines profit potential in the industry. Profit potential
is measure in terms of long-term return on invested capital.
Different industries have different profit potential, just as
14
the collective strength of the five forces differs between
industries. (Porter, 1998)
2.1.5 Marketing concepts
The marketing concept is the commonly held idea that
companies achieves success by meeting the needs and wants of their
customers. This is important because it defines how your company will
drive business and flourish.
a) Definition from experts
1) Marketing is defined as an activity, set of institutions,
and processes for creating, communicating, delivering,
and exchanging offerings that have value of customers,
clients, partners, and society of large. (Ferrell, 2014))
2) Marketing is the management process responsible for
identifying, anticipating, satisfying customer‟s
requirements profitably. (Nigel Bradley, 2013)
3) Marketing is so basic that it cannot be considered a
separate function. It is the whole business seen from the
point of view of its final result, that is, from the
customer‟s point of view…business success is not
determined by the producer but by the customer. (Peter
Drucker, 2013)
4) Marketing is an organizational function and a set of
processes for creating, communicating, and delivering
value to the customer‟s and for managing customer
relationship in ways that benefit the organization and
its stakeholders. (Kotler, 2013)
5) Functions of marketing
Marketing is responsible for the performance of eight
universal functions; buying, selling transporting, storing,
standardizing and grading, financing, risk taking, and
15
securing marketing information. Some functions are
performed by manufactures, others by retailers and still
others by marketing intermediaries called whole seller.
(David Kurtz, 2014)
6) Buying – ensuring that product offerings available in
sufficient quantities to meet customer demands.
7) Selling – using advertising, personal selling and sales
promotion to match products to customer needs.
8) Standardizing and grading – ensuring that products
offering meet quality and quantity controls of size,
weight, and others variable.
9) Financing – providing credit for channel members and
consumers.
10) Transporting – moving product from their point of
production to location convenient for purchaser.
11) Storing – warehousing product until need for sale.
12) Risk taking – dealing with uncertainty about future
customer purchases.
13) Security marketing information – collecting
information about consumers, competitors, and channel
members for use in making marketing decisions.
b) Marketing strategy
Marketing strategy involve selecting and analyzing
target markets and creating and maintaining an appropriate
marketing program (product, distribution, promotion and
price) to satisfy the needs of those target markets. (Ferrell,
p.40)
16
2.1.6 Marketing Mix
The marketing mix is the set of controllable tactical marketing
tools (product, prices, place and promotion) that the firm blends to
produce the response it wants in the target market. (Kotler, 2010)
a. Price is the amount the consumer must exchange to receive
the offering. (Solomon et al, 2009)
b. Place includes company activities that make the product
available to target consumers. (Kotler and Armstrong,
2010)
c. Product means the goods and services combination the
company offers to the target market. (Kotler and
Armstrong, 2010)
d. Promotion includes all of the activities marketers undertake
to inform customers about their products and to encourage
potential customers to buy these products. (Solomon et al,
2009)
e. Physical evidence is the environment in which the service
is delivered, and where the firm and customers interact, and
any tangible components that facilitate performance or
communication of the service. (Zeithaml et al, 2008)
f. People are all human actors who play a part in service
delivery and thus influence the buyer‟s perceptions;
namely, the firm‟s personnel, the customer, and othe
customers in the service environment. (Zeithaml et al,
2008)
g. Process is the actual procedures, mechanisms, and flow of
activities by which the service is delivered – this service
delivery and operating systems. (Zeithaml et al, 2008)
17
2.1.7 Generic Competitive Strategies
Early in the process of crafting strategy, company have to
decide five basic competitive strategies such as overall low-cost, broad
differentiation, focused low-cost, focused differentiation and best-cost
provider.
Figure 2.4 The Five Generic Competitive Strategies (source David, 2011)
A low-cost provider‟s basis for competitive advantage is lower
overall costs than competitors. Successful low-cost leaders, who
have the lowest industry cost are exceptionally good at finding
ways to drive cost out of their business and still provide a product
or service that buyers find acceptable while cost driver is a factor
that has a strong influence on a firm‟s costs.
Different enhances profitability whenever a company‟s
product can command a sufficiently higher price or produce
greater unit sales to more than cover the added cost of achieving
the differentiation. Broad different strategy is to offer the unique
product to wider range of buyers and consumers that satisfy with
the fee and products.
18
When focused on low-cost or different strategy is attractive,
the target market niche is big enough to make a profit and offer
good potential growth, that‟s why industrial leader choose to not
compete in niche market. It‟s basically difficult to make multi-
segment competitor to meet the specialized needs of buyers in
niche market.
Best-cost provider strategies are a hybrid of low-cost provider
and differentiation strategies that aim at providing desired quality
of service that happen while compete the rivals on price list. Give
the customers more value for money by satisfying buyer
expectations on key quality/attribute and beat customer
expectations on price. Powerful competitive approach with value-
conscious buyer.
2.1.8 SWOT analysis
SWOT analysis is an analytical tool used for the identification
and categorization of internal and external factors. Strengths and
weaknesses in SWOT analysis are termed as internal factors while
opportunities and threats termed as an external factors.
1) Strengths refer to internal characteristic which may be deemed
favorable for the organization.
2) Weaknesses refer to internal characteristic which may be
deemed unfavorable for the organization.
3) Opportunities are external characteristic which organization
may use to its advantage.
4) Threats are external characteristic which may be potential
sources of failure to the organization
Benefits from using SWOT analysis
We will look at the main advantages of a performing a SWOT analysis.
(Andrew Beattie, 2014)
19
1. Provides a visual overview
A SWOT analysis is usually presented as a square
with each of the four areas making up one quadrant. Although
all the points under a particular heading may not be of equal
importance, there is some insight to be had in seeing how the
number of opportunities measures up to the number of threats
and so forth.
2. Promotes discussion
One of the challenges is that the discussion can be
derailed by listing things rather than thinking strategy, but this
can be counteracted by strong facilitator. Often the SWOT
analysis that you envision before the session changes
throughout to reflect factors you were unware of and would
never have captured if not for the group‟s input.
3. Quick
SWOT analysis is quick and comparatively easy to
do. You can conduct a SWOT analysis for the overall business
strategy over the course of a meeting and that chart will serve
as a quick way to vet ideas throughout the brainstorming
session.
4. Flexible
SWOT can be used to guide overall business strategy
session, but it can also be used to drill into a specific segment
like marketing production or sales.
2.1.9 SWOT matrix
SWOT analysis is then used in four ways to develop strategies:
using strength to take advantage of opportunities (SO), to reduce the
likelihood and impact of threats (ST), using the opportunities to
overcome weakness (WO), and being aware of limitations that emerge
from the combination of weaknesses and threats (WT). (D.Martin
Collado, 2013).
20
(S-O) strategies
Use a firm‟s internal strentghs to take advantage of external
opportunities.
(S-T) strategies
Use a firm‟s strengths to avoid or reduce the impact of external
thretas.
(W-O) strategies
Aim at improving internal weaknesses by taking advantage of
external opportunities. Sometimes key external opportunities
exist, but a firm has internal weaknesses that prevent it from
exploiting those opportunities.
(W-T) strategies
Defensive tactics directed at reducing internal weakness and
avoiding external threats. (David, 2011)
2.1.10 IE matrix analysis
IE matrix is obtained based on the combination of the
weighted score of IFE and EFE Matrix which already done before
to identifying the internal and external factors that exist in the
company. IE Matrix is one of the parameters used to describe the
position of the company so that the alternative strategies that will
be proposed to the company are accordance with the end
condition. In addition, IE matrix can describe the hopes that
company will do in the future. (Nirmala, 2013)
IE Matrix is positioning the various divisions of a company
which then will be analyzed in more detail. IE matrix shown in
nine cells, which divided into three major parts that have different
strategy implications, those are Grow and build, Hold and
Maintain, and Harvest or Divest.
21
2.1.11 Quantitative Strategic Planning Matrix (QSPM)
Quantitative strategic planning matrix (QSPM) is the stage
three of strategy – formulation analytical framework, which is the
decision stage. QSPM is a technique objectively indicates which
alternative strategies are the best (David, 2011).
The QSPM determines the relative attractiveness of various
strategies based on the extent to which key external and internal
critical success factors are capitalized upon or improved (David,
2011).
2.2 Previous Research
1. Suryani Dewi (2013), Analisa Formulasi Strategi Bisnis Untuk
Memperoleh Strategi Bersaing Pada PT. Wonder Bind International. The
researcher wants to analyze the strategy business formulation to get the
competitive strategy of PT. Wonder Bind International. In this research, it
used EFE, IFE, CPM, SWOT, SPACE, IE, Matrix grand strategy, and
QSPM as tools. To get the best strategy for the company, there are 3
stages such as input stage, match stage, and decision stage. For the
decision stage, the researcher use IFE (result: weight rating for company
is 2.7212 which mean the company has strong internal position), EFE
(result: weight rating is 2.7456 which mean the company success to take
advantage from external opportunities and avoid the threats) and CPM
matrix (result: weight rating is 3.053, bigger than the main competitor
2.6148. this condition shows that the company winning the competitive
profile with two main competitors). For the matching stage, researcher use
SWOT (result: alternative strategy; market penetration, market
development, product development and backward integration), SPACE
(result: alternative strategy; backward-forward integration, horizontal;
market penetration, market development, product development; related or
unrelated diversification), IE (result: alternative strategy; market
penetration and product development, and Grand strategy matrix (result:
22
related diversification, unrelated diversification, and joint venture). For
the decision stage, researcher use QSPM matrix with the result that the
best strategy and recommended for the company is market penetration.
2. Putri Ardan areshwari H. Ningrum (2010),Analisis Startegy Pemasaran
Usaha Jasa Pembuatan dan Perbaikan Furniture UD. Suryani Furniture,
Bogor, Jawa Barat. The researcher was to analyze the strategic
management of UD. Suryani Furniture. It used IFE, EFE, IE, SWOT
Matrix and QSPM as the analysis tools. The researched aim to analyze the
internal (strengths and weaknesses) factors of UD. Suryani Furniture
using IFE matrix and the external (opportunities and threats) factors of
UD. Suryani furniture using EFE matrix, both factors then analyzed using
IE Matrix from the result of IFE and EFE Matrices that showed the
position of UD. Suryani furniture was in growing and builds strategy
position. Using SWOT matrix, researcher provided nine alternative
strategies for business development of UD. Suryanifurniture and by
QSPM analysis tools, researcher provided the best strategy that UD.
Suryani furniture should do in order to develop the business, which was to
apply pricing strategy to face competition with the highest total attractive
score from the result of QSPM analysis tool.
3. Yasmin Ahmad Zaky, (2014). Analisis Formulasi Strategi Bisnis Dalam
Meningkatkan Daya Saing Perusahaan PT. Cipta Mufida. The researcher
wants to analyze the alternative strategy for PT. Cipta Mufida and want to
know the implementation strategy of PT. Cipta Mufida to increasing the
competitiveness of company. It used 3 stages also, input stage (IFE, EFE,
CPM matrix), matching stage (SWOT, IE, Grand Strategy matrix), and
decision stage (QSPM matrix) with the result is alternative strategy which
is related diversification. For the internal factors, strengths (management
company, product quality, services, international orientation, competitive
price, clear target market, good raw and materials, and up to date
production tools), and weaknesses (less discipline, production process,
23
web site not exist, storage/warehouse, market product, customer
relationship, un effective promotion). For the external factors,
opportunities (product needs, government support in property industry,
consumer loyalty, government support for export product, ability to have
and buy the property from peoples, technology advantage, growth of
population, and competitors), and threats (fluctuation in foreign currency,
economic situation in Indonesia, readiness of raw materials (wood),
exchange rate of the dollar against the rupiah, rise in fuel prices,
international product seems more attractive, new entrants, similar
competitors).
4. Reny Maulidia Rahmat, (2012). Analisis Strategi Pemasaran Pada PT.
Koko Jaya Prima Makassar. The researcher wants to analyze the best
strategy for PT. Koko Jaya Prima Makassar to increasing the sales
volume. The internal factors, strengths (original sparepart, fast services
(can handle until 7 motorcycle in a day), competitive price, guaranty and
free service regularly), and weaknesses (lack of network to customers,
doesn‟t provide waiting room, infrastructure inadequate hygiene, lack of
human resource with technician knowledge). The external factors,
opportunities (Makassar as a metropolitan city, the tendency of society to
improve their motorcycle performa, economic growth in Makassar),
threats (service rate, competitors are come out, some of employees are not
from good educational background). Based on SWOT analysis, PT. Koko
Jaya Prima has strengths which can use for some specific strategies and
take the advantage to minimalize or avoid the exist weakness and threats.
2.3 Theoretical Framework
The final output of this research is that researcher could give and
provide new information to CV. Cipta Bumi Lestari about how to predict and
analysis the best formulation strategy to increasing competitiveness, then try
to highlight the new innovation and new entrants in this industry.
24
According to this topic, this research will show and conclude what is
the best formulation strategy for CV. Cipta Bumi Lestari while improving the
competitive advantage. Then, the analysis of the strategy will be influenced
by some factors such as internal factors (strength and weakness), external
factors (opportunities and threats) and conclude what is the best strategy
formulation that will be used for improving the competitive advantage. Those
external and internal aspects of CV. Cipta Bumi Lestari next to be analyzed
by using strategic tools such as IE Matrix and SWOT Matrix. The last
decision strategy making is QSPM, to list the most suitable alternative
strategy for company. The analysis of business strategy formulation will be
treated as the dependent variable and the other three variables will be treated
as the independent variables as shown in the chart below.
Constructed by researcher
2.4 Operational Definition
In this research, there are several formulas in the form of matrix as
strategy formulation:
Best strategy formulation
for CV. Cipta Bumi Lestari
Alternative strategies
External factors
(opportunities and
threats)
Internal factors (strengths
sand weaknesses)
25
1. IFE matrix
Internal Factor Evaluation (IFE) matrix is a strategy tool used to evaluate
firm‟s internal environment and to reveal its strengths as well as
weakness.
2. EFE matrix
External Factor Evaluation (EFE) matrix is a strategy tool used to examine
company‟s external environment and to identify the available
opportunities and threats.
3. SWOT matrix
SWOT analysis is an analytical tool used for the identification and
categorization of internal and external factors. Strengths and weaknesses
in SWOT analysis are termed as internal factors while opportunities and
threats termed as an external factors.
4. IE matrix
Internal-External (IE) matrix is another strategic management tool used to
analyze conditions and strategic position of a business. This is based on an
analysis of internal and external business factors which are combined into
one suggestive model.
5. QSPM
Quantitative Strategic Planning Matrix analysis is high - level strategic
management approach for evaluating possible strategies. QSPM provides
an analytical method for comparing feasible alternative actions.
26
CHAPTER III
METHODOLOGY
3.1 Research Design
This research will require Qualitative Research. Qualitative Research
method as cited from (Denzin and Lincoln, 2011:6) is difficult to define
clearly. It has no theory or paradigm that is distinctively its own… Nor
does qualitative research have a distinct set of methods or practices that
are entirely its own. At general level, qualitative research is often
described as a naturalistic, interpretative approach, concern with
exploring phenomena „from the interior‟. The result of qualitative
research can be inform specifics kinds of data, usually involving words or
images rather than numbers.
3.1.1 Location and Time of Research
In arranging this research, the researcher conducted the case study
in CV. Cipta Bumi Lestari which engaged in beverage industry
(brand “addictea”) specialization in milk tea in the bottle. CV.
Cipta Bumi Lestari was located in Jl. Cisangkuy No. 46 Bandung,
West Java. The research was conducted data from October until
December 2014. The researcher hopes that this research will help
the company to arrange the best strategy for their business.
3.1.2 Types and Sources of Data
a. Types of Data
The type of data used by researcher in writing this thesis is
Qualitative Data, which obtained from the interview with relevant
parties in the form of oral data with an explanation of discussion.
27
In addition, this research also supporting by Quantitative Data
which get analysis result from questionnaire and the data in form
of number and formulation without any using of statistical method.
Researcher also using the MS. Excel program in obtaining the data
of formulation testing.
b. Sources of Data
To support the completeness of the discussion in writing this
thesis, researcher obtained the data sourced from:
1. Primary Data
It is the data which is obtained directly from the company in
the form of field observations and the acquisition of company
documents and interviews with a leader and some of
employees in the company.
2. Secondary Data
It is the data which obtained indirectly from the external
documents. In this case the documents derived from the
research include reading books, newspaper, website, journal,
article, etc which relating to the title and purposes of the
research and the data collected.
3.2 Key Informant
In this research, researcher interview 4 informants from CV. Cipta Bumi
Lestari. There are from different division such as Owner, Marketing,
Production and Finance. From Owner side, the informant is Ms. Mutia,
from Marketing division, the informant is Ms. Shisy, from Production
Division, the informant is Mr. Rido, and from Finance, the informant is
Mr. Iqbal. In here, there are 2 times interview session that already held.
First is on October 2014 with Ms. Mutia, Ms. Shisy and Mr. Iqbal.
Second is on January 2015 with Mr. Rido.
28
3.3 Research Instruments
3.3.1 Description Analysis
Description analysis used to describe the real condition of the
company based on the data derived from observations and
interviews to the company. Some of the data can be used in the
description analysis including vision, mission, objectives of the
company, Research and Development, addictea (product) that
produced by the company, company‟s sales and marketing
activities, productions or operations, and management information
system used by the company.
3.3.2 Formulation Process of Alternative Strategy
The strategy formulation techniques can be integrated into the
critical decision–making framework of three stages: the input
stage, the matching stage and the decision stage. The instrument
applied in this framework can be applied to all sizes and types of
organizations and can help strategists identify, evaluate, and select
strategies. In this research, the input stage that use by researcher
are IFE and EFE Matrix only. Stage 2, SWOT and IE Matrix only.
These third stages can be shown in Figure 1 below.
Figure 3.1 Framework for Strategy Analysis Formulation
Source (David, 2010, p. 324)
29
3.3.3 The Input Stage
a. Analysis of Internal Factor Evaluation (IFE) Matrix
The internal factors identified by IFE matrix. IFE matrix classifies
internal factors that being the strength and weakness of the
company. To identify strengths and weakness of the company, it
can do by interviews, observations and questionnaires. The stages
in identifying internal factor in IFE matrix are as follows: (David,
2010)
1) Make a list of the major internal factors as outlined in the
internal audit process. Enter the internal factors of 10 to 20,
including the strengths and weaknesses of the organization.
List strengths and weaknesses. Make it specific by using
percentages, ratios, and comparative numbers.
2) Put a weight on each factor ranging from 0.0 (not
important) to 1.0 (very important). The weight given to a
particular factor indicates the relative significance of these
factors to for the success of industry firms. The factors that
are considered to have the most impact on organizational
performances should be given the highest weight. Sum of
all weights should equal 1.0.
3) Give a rating of 1 to 4 on each factor based on the
weighting effect of the company condition. On internal
factors, rating on a scale of 4 and 3 is given for the
strengths factor, while the scale factor 1 and 2 for
weaknesses factor.
4) Multiply the weight by the rating to obtain a weighted
score to each variable.
5) Sum all weight scores to obtain a total weight score. The
value of total scores indicates how company reacts to the
internal strategy factors.
Internal Factor Evaluation Matrix can be seen in the table 1
below.
30
Table 3.1.Internal Factor Evaluation (IFE) Matrix
Internal Factors Key Weight Rating Weighted
Score
Strengths
1. …………………
2. …………………
3. Etc……………..
Weaknesses
1. ………………...
2. ………………...
3. Etc…………….
Total
Source: (David, 2010)
b. Analysis of External Factor Evaluation (EFE) Matrix
EFE matrix classifies the external factors into opportunities and
threats of the company. EFE Matrix also uses the questionnaire
which distributed to the relevant parties to identify opportunities
and threats of the company. The stages in identifying external
factors in EFE Matrix as follows: (David, 2010)
1) Make a list of key external factors as outlined in the
external audit process. Enter 10 to 20 external factors,
including the opportunities and threats affecting the
company and its industry. Listing first the opportunity, then
the threat. Make it specific by using percentages, ratios,
and comparative numbers.
2) Put a weight in each factor ranging from 0.0 (not
important) to 1.0 (very important). The weight given to a
particular factor indicates the relative significance of these
31
factors for the success of industry firms. The factors that
are considered to have the most impact on organizational
performance should be given the highest weight. Sum of all
weights should equal 1.0.
3) Give rating between 1 and 4 on each key external factor to
indicate how effectively the company‟s current strategy in
response to these factors, where (4 = the response is very
good, 3 = above average response, 2 = the response is
average, 1 = response below average). Rankings are based
on the effectiveness of the company‟s strategy. Therefore,
are different between companies, while the weights in step
2 based on industry. It is important to note that both threats
and opportunities
Table 3.2.External Factor Evaluation (EFE) Matrix
Internal Factors Key Weight Rating Weight
scored
Strengths
1. …………………
2. …………………
3. Etc……………..
Weaknesses
1. …………………
2. …………………
3. Etc……………..
Total
Source: (David, 2010)
According to (Nirmala, 2012) The weight determination
for each variable is by using the assessment of weighted internal
32
and external strategic factor of company to the relevant parties,
who knows the conditions and problems in the company.
Determination of weights can be used with Paired Comparison
Scale method.
The weight of each variable is obtained by determining the
value of each variable to the overall value of a variable number by
using this following formula:
=
∑
Notes: Vi = Variable weighted to-i
n = Number of variable
I = 1,2,3,...,n
X =Variable value to-i
The given total weight should be equal to 1.0. The weight is
then placed in the second column of IFE and EFE Matrix. The
method is used to provide an assessment of any internal and
external determinants. Paired Comparison Scale is a method used
to measure the relative importance. The weighting done is
describing the relatively of few objects.
In this research, researcher use formula from David (2004),
which is describing the weighted of each variable is determined by
using a scale of 1, 2 and 3. The scales that are used for filling the
column are:
1= if the horizontal indicator is less important than the vertical
indicator
2= if the horizontal indicator is same important than the vertical
indicator
3= if the horizontal indicator is more important than the vertical
indicator
33
Table 3.3.Table of weighted assessment of external factor strategic
External Factor Strategy A B C D …. Total Weight
A
B
C
……….
Total
Source: (David, 2010)
Table 3.4.Table of weighted assessment of internal factor strategic
Source: (David, 2010)
3.3.4 The Matching Stage
a. Internal – External (IE) Matrix
The Internal-External Matrix or short IE matrix is based on
an analysis of internal and external business factors which are
combined into one suggestive model. It positions an organization
into a nine cell matrix. IE matrix is based on two key dimensions:
the IFE total weighted scores on the x axis and the EFE total
weighted scores on the y axis. The IE matrix works in a way to
plot the total weighted score from the EFE matrix on the y axis
and draw a horizontal line across the plane. Then take the score
Internal Factor Strategy A B C D …. Total Weight
A
B
C
……….
Total
34
calculated in the IFE matrix, plot it on the x axis, and draw a
vertical line across the plane. The point where horizontal line
meets vertical line is the determinant of the organization strategy.
This point shows the strategy that organization should follow
(Maxi-Pedia Corporation, 2012).
On the x axis of the IE Matrix, an IFE total weighted score
of 1.0 to 1.99 represents a weak internal position. A score of 2.0 to
2.99 is considered average. A score of 3.0 to 4.0 is strong. On
the y axis, an EFE total weighted score of 1.0 to 1.99 is considered
low. A score of 2.0 to 2.99 is medium. A score of 3.0 to 4.0 is
high.
IE matrix can be divided into three major regions which
have different strategy implications.
a Cells I, II, and III suggest Grow and Build strategy. This
means intensive and aggressive tactical strategies. Your
strategies should focus on market penetration, market
development, and product development. From the
operational perspective, a backward integration, forward
integration, and horizontal integration should also be
considered.
b Cells IV, V, and VI suggest the Hold and Maintain
strategy. In this case, your tactical strategies should focus
on market penetration and product development.
c Cells VII, VIII, and IX are characterized with the Harvest
or Divest strategy. If costs for rejuvenating the business are
low, then it should be attempted to revitalize the business.
In other cases, aggressive cost management is a way to
play the end game.
35
For more details about the shape of the Internal-External
Matrix, and relations with the placement of the IFE and EFE
values can be seen in Figure 2 below.
Figure 3. 2.Internal – External Matrix (IE) (WordPress.com, 2011)
b. SWOT Matrix Analysis
The next analysis stage after using the IFE matrix
and EFE is doing various combinations by using SWOT
Matrix. This matrix is a matching tool to help managers
develop four types of strategies, which are as follows
(Purwanto, 2006, p. 131):
1. S-O Strategy (Strength-Opportunities) utilizing the
company's internal strengths to take advantage of
external opportunities.
2. W-O Strategy (Weaknesses-Opportunities) aimed at
improving internal weaknesses by taking advantage of
external opportunities.
36
3. S-T Strategy (Strength-Threats) uses the power of a
company to avoid or reduce the impact of external
threats.
4. W-T Strategy (Weaknesses-Threats) is a defensive
tactics directed at reducing internal weaknesses and
avoiding external threats.
To facilitate the external environment analysis
techniques in SWOT Matrix is using External Factor
Evaluation (EFE). While the Internal environmental analysis
will provide an overview of the strengths and weaknesses
(SW) of the company. To simplify the analytical techniques
that is used internally in SWOT using Internal Factor
Evaluation (IFE). The detail steps in making SWOT matrix are
as follows:
a) Make a list of significant company‟s external
opportunities.
b) Make a list of significant company‟s external threats.
c) Make a list of significant company‟s internal strengths.
d) Make a list of significant company‟s internal
weaknesses.
e) Matches between internal strengths and external
opportunities and record the result in the cell SO
strategy.
f) Matches between internal weaknesses and external
opportunities and record the result in the cell WO
strategy.
g) Matches between internal strengths and external threats
and record the result in the cell ST strategy.
h) Matches between internal weaknesses and external
threats and record the result in the cell WT strategy.
37
To make it clear, the SWOT Matrix can be seen in
Table 5 below.
Table 3.5.SWOT Matrix
Strengths (S) Weaknesses (W)
Opportunities (O)
SO Strategy
Capitalize the existing
strengths in the
pursuit of
opportunities
WO Strategy
Cover up or
minimize
weaknesses in order
to seize
opportunities
Threats (T)
ST Strategy
Capitalize the existing
strengths in effort to
deal with threats
WT Strategy
Cover up or
minimize
weaknesses in order
to deal with threats
Source: (David, 2010)
3.3.5 The Decision Stage
The decision stage is done by using a QSPM (Quantitative
Strategic Planning Matrix). QSPM is a technique which objectively
indicates the best strategy for company. There are at least six steps that
must be done to make QSPM, those are:
a) Provide a list of internal factors
strengths and weaknesses. Then generate a list of the
firm's key external factors opportunities and threats.
These will be included in the left column of the QSPM.
These factors can take from the EFE matrix and the IFE
matrix.
INTERNAL
FACTORS
EXTERNAL
FACTORS
38
b) Give a rating (weighted interest received) of each
internal and external factors listed above according to
IFE and EFE matrix.
c) Make a list of alternative strategies generated by
SWOT matrix. Grouping the strategy into the unity of
the mutually exclusive if possible.
d) Set the Attractiveness Score (AS), which is a number
that indicates the relative attractiveness for each chosen
strategy. Attractiveness Score (AS) determined by
examining each of internal and external critical success
factors. Attractiveness Value Score (AS) must exist on
each strategy to show the relative attractiveness of one
strategy to another with thresholds: 1 = unattractive, 2
= somewhat attractive, 3 = logically attractive, and 4 =
very attractive.
e) Calculate the Total Attractiveness Score (TAS) by
multiplying the rating value and Attractiveness Score
(AS). Total Attractiveness Score (TAS) shows the
relative attractiveness each alternative strategy.
f) Sum of all Total Attractiveness Scores (TAS) on each
QSPM column. The greatest value of QSPM indicates
that the alternative was a major strategic choice and the
smallest value indicates that alternative strategies be the
last choice.
The basic form of the Quantitative Strategic Planning
Matrix (QSPM) can be illustrated in Table 6 below
39
Table3.6.QSPM Analysis
Key Factors Rating
Alternative Strategy
Strategy – 1 Strategy – 2 Strategy - 3
AS TAS AS TAS AS TAS
Opportunities 1………………….. 2………….............. Threats 1…………………. 2…………………. Strengths 1…………………. 2…………………. Weaknesses 1…………………. 2………………….
Total
Source: (Purwanto, 2006, p. 136)
3.4 Validity and Reliability
In qualitative research, reliability can be thought as consistency.
For validity, two others form of validation that have been suggested
as particularly appropriate to the logic of qualitative research is
Triangulation, meaning comparing different kinds of data
quantitative and qualitative and different kinds of methods
(observation and interview) to see whether they corroborate one
another and respondent validations taking ones finding back to the
subjects, where these people verify ones findings (Silverman, 2011:
355).
40
3.5 Data Collection Procedure
To obtain the complete and accurate information in the discussion of this
study, the researcher requires any data or information about the company itself.
Here are some of the methods used by researcher to obtain the data:
1) Field Research
Is the research which done to the company concerned to
obtain the required data in the research process through these
following methods:
a. Observation
Is the form of research conducted by researcher with
the observation of both directly (face to face) or indirectly (by
provide a list of questions to be answered). The results of the
observation are description of action, interpersonal interaction,
etc.
b. Interview
Is the form of research by holding the question and
answer (in-depth) directly to the head of the company and the
number of employees to related to research in provide the
information about the internal and external environmental
factors of company in current. The results of the data interview
are argument, perception, feelings, and knowledge. In this
research, the interview conducted directly with the owner of
CV. Cipta Bumi Lestari Ms. Mutia, marketing area Bandung
Ms. Sishy, and HRD MR. Iqbal (key informant).
41
c. Documentation
Is the research which done by collecting the documents
of company related to the research, either soft copy or hard
copy.
2) Library Research
Is the research which done by reading a few literature
books related, journal, collecting the documents, archives, and the
important records of the company, as well as the data obtained
through internet and journals related to the problem solving of
thesis writing and further processed again to the systematic and
complete structure.
42
CHAPTER IV
ANALYSIS OF DATA AND INTERPRETATION
RESULTS
4.1 Company Profile
4.1.1 Company History and Development
In 2011, Saskia Pratiwi (owner) tried to make Thai tea by her own.
Because she loves to drink milk tea, especially Thai tea so much, and in
that time it‟s difficult to find café and restaurant that sell delicious milk
tea. Fortunately, her family and friends love the taste of milk tea that she
made, and they suggest Saskia to sell milk tea that her produce and finally
Saskia decided to sell milk tea in the form of packaging. December 2011,
there are some milk tea products that already exist in Bandung, but the
packaging that they used is plastic glass with sealer plastic cap. To make a
different with product that already exist, Saskia used plastic bottle and
choose “addictea” as a name of her milk tea product.
Addictea is from two words, “addictive” and “tea” with a purpose
that peoples who already tasted the taste of addictea will addicted. In the
beginning after Saskia launch addictea, she just sells the product to her
friends, colleges, and office‟s bank. In early 2012, Saskia invited Mutia
(her best friend) to join in the business as the owner of addictea. They start
to promote, sell, and expand addictea to public with bigger segment than
before. In the middle of 2012, owners added new variants of milk tea as
an innovation and improving in taste, then the demand of addictea
increase day by day and owners decided to hire employees for production
43
and distribution staff, and more serious to develop addictea as a pioneer of
milk tea in the bottle.
4.1.2 Vision and Mission
Vision
Make addictea as a competitive and famous brand in global
market.
Mission
Make a premium quality of food and beverage product with
milk-based and or tea-based
4.1.3 Decision of Company:
1. Management Independence
The company without any influence or pressure form
external factors which not in line with the vision and mission
of the company. The company runs the business based on the
principal and rules that have been created by addictea to make
a good and health company situation.
2. Responsibilities
In the implementation, company follows the rules and
regulation from the government, and also culture from the
public.
3. Togetherness
Equal treatment for all stakeholders, balance in the
implementation of rights and obligation, and collaboration with
all parties are prioritizing.
44
4.1.4 Code of Ethic
1. Honestly
In the process of production, distribution, human
resource, and other part of the company, all of business process
should be run based on honest and legal norms.
2. Family Oriented
Form of a step or guidelines for all activities with
purpose to get good profit and benefit.
4.1.5 Location of Company
CV. Cipta Bumi Lestari located in Jl. Cisangkuy 46 Bandung, West
Java. For the home production, located in Sukaluyu, Suci, Bandung (in
front of Selamat trans pool).
Table 4.1 Addictea‟s spot
President University Food Court Kemang, Jaksel
PVJ sky level BelahDoeren FC istana plaza
Boris Barbershop Jl. Prof. Dr.
Sutami 58 lt. 2
Roti Gempol Jl. Surya Sumantri
61
Zoe Dluck Jl. PagarGunung 3 Aromanis Jl. WiraAngun 14
Reds Dipo Jl. Dipatiukur 1 BatagorHanimun Jl. Ambon 14
Roti Gempol Jl. GempolWetan Kopi Anjis Jl. Bengawan 34
Festival Citylink lt. 3 The Dreams Cake Jl. Trunojoyo
23
Gudeg Banda Jl. Taman
Cibeunying 33
Sushi Den Jl. HariangBanga 8
Sam‟s Strawberry Jl. Dago315 Kantin SIT Telkom
Che.co Jl. Raya Jatinangor 83 The Dreams Cake Jl. BKR 22
Pino Pizza Jl. BuahBatu 140 Che.co Jl. Raya Jatinangor 83
Voilla Salon, Dago
Source: CV. CiptaBumi Lestari
45
President Director
Saskia Pratiwi
Operation and Finance Manager
Muhammad Iqbal
SPV PRoduction and Distribution
Rida Alpiah
Production Staff
Pepep
Heti
Depi
Dani
Yono
Rita
Distribution Staff
Deden
Kuncoro
Ujang
Yudi
SPV General
Ardi
Director of Research and
Marketing
Mutia Safrina
SPV Research
Nadia Karina
QC Staff
Rosa
SPV Marketing
Siti Mardiyyah
SPV outlet
Ima
Outlet Staff
Taufiq
Kurnia
Rahmat
Mirna
4.1.6 Organizational Structure of Company
Figure 4.1 CV. Cipta Bumi Lestari‟s organizational structure
Source by CV. CiptaBumi Lestari
4.1.7 Operational Activity of Company
Operational activity for CV. Cipta Bumi Lestari covers all of
stages for production process, start from processing the raw material
until finished goods that ready to sell.
4.2 Data Analysis
Environmental analysis of company is the first stage in identifying the
internal and external environment of company in the strategy management
process.
46
4.2.1 Internal Environmental analysis
1) Management and Human Resources
CV. Cipta Bumi Lestari already has a structured about the
management system and Human Resource Department, but the overall
employment monitoring still doing by the owners. CV. Cipta Bumi
Lestari has 21 employees separated in the office and home production.
The Company has 4 division, they are Research and Development,
Finance, Marketing, and Operational. In the Research and
Development division there are 2 employees. In the Finance division
there is 1 employee. In the Marketing division there are 5 employees
(3 persons stay in PVJ Mall store, 1 person in Cisangkuy store, and 1
person as sales and administration). Then, for Operational division,
there are 13 employees. Some people who work in the operational
division had educational background start from junior high school
until senior high school. The company doesn‟t have a high standard
for the operational, because they preferred to hire people with capable
experience in that field.
About hiring process, CV. Cipta Bumi Lestari has two type
of hiring, first is based on relation or family links and second is
open recruitment. For open recruitment, they have a standard for
managerial level minimum D3/S1. Then, about the wages, the
employee has main salary, bonus, overtime payment, foods and
transportation allowance. For facilities itself, the company
provides health insurance, BPJS, and children educational
allowance (for 2 children).
Every week, HR team makes an evaluation for each
employee to evaluate and educate new knowledge. And every year
they give training for employee.
47
In order to keep the family atmosphere and fluency in the
all division, the fluent communication and mutual-assistance
needed in company among all employees.
2) Marketing
a. Segmentation, Targeting, and Positioning
Segmentation
Company makes segmentation based on ages (15-35yo) or
teenagers until young adult. Also company enter the segment of
community in Bandung area, office staff (bank, government, etc).
Targeting
In determining the target market of CV. Cipta Bumi
Lestari, the company focuses making products which not just
delicious but matching with teenagers until young adult life style
towards trend of social media such as Instagram, Path, Pinterest,
and etc. Addictea itself packaged with transparent bottle which is
can easy to take everywhere, capture and upload to social media.
In here, company‟s target market is middle-up.
Positioning
As a pioneer of milk tea in the bottle, CV. Cipta Bumi
Lestari always keep the quality and the originality of the product,
try and make a new innovation to re-continue the existing of
Addictea as a premium homemade beverage.
b. Products Marketing Mix
Product
The product offered by CV. Cipta Bumi Lestari is milk tea
with 6 variants (thai tea, green tea, taro, banana, coffee, mint), then
we called as addictea brand. Not just milk tea in the bottle, the
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company has several innovative products for every event that they
held like addictea Ice Cream for Taste Market Event in PVJ,
Bandung 2014, addictea Float for Kekeun Food and Festival in
Balaikota, Bandung 2014. These table below shows some of the
types and names of products that have been produced by CV.
Cipta Bumi Lestari for current:
Table 4.2. Product‟s Size (addictea)
Source: CV. CiptaBumi Lestari (has been processed)
Price
For the first time, CV. Cipta Bumi Lestari set the price
based on price of their competitor. Then, they found some problem
about profit, sales, and etc because of the price. They realized that
they already wrong to setting the price. After they evaluate, they
found the way to set up the price. The product prices of CV. Cipta
Bumi Lestari can be seen in the table below:
Table 4.3 Product‟s price
Product Size
(small
240ml)
Size
(medium
450ml)
Size
(large
1000ml)
AddicteaThaitea
AddicteaGreentea
Addictea Taro
Addictea Banana
Addictea Coffee
Addictea Mint
Product Price
Small Medium Large
Thai tea Rp 15.000 Rp 20.000 Rp 35.000
49
T
a
b
l
e
Source: by researcher
Place
CV. Cipta Bumi Lestari located in Bandung, West Java.
Actually, the workshop is located in Sukaluyu, Bandung, West
Java. For the stores, the company has 3 stores around Bandung,
West Java, which is in Jl. Cisangkuy No. 46, PVJ Mall at sky
level, and Festival Citilink Bandung and also has 21 spot around
Bandung and Jakarta. In Jakarta, the company has store in
Kemang, in order to fulfill the customers need in Jakarta areas. In
Cikarang, they have spot in food court President University to
fulfill demand area Cikarang and Bekasi.
Promotion
The promotional activities undertaken by CV. Cipta Bumi
Lestari are following the food festival in Jakarta and Bandung,
actually all events in school and campus, bazaar, until government
event, already followed by the company. In here, after they know
all market by the event, the company filters every event that they
want to join, such as just wants to follow the event with theme art,
culinary, and fashion concept to protect the image of addictea
itself.
Green tea Rp 15.000 Rp 20.000 Rp 35.000
Taro Rp 15.000 Rp 20.000 Rp 35.000
Banana Rp 15.000 Rp 20.000 Rp 35.000
Coffee Rp 15.000 Rp 20.000 Rp 35.000
Mint Rp 15.000 Rp 20.000 Rp 35.000
50
3) Production and Operation
Table 4.4 Production Process Flow
Production Process:
1. Preparation of raw and materials (water, tea, milk)
2. Boiled water, and enter tea into the water
3. Brewing tea
4. Filtering process 1 (tealeaf)
5. Mixing with milk
6. Heating the mixture
7. Cooling the mixture
8. Filtering process 2 (foam and dregs of tea)
9. Enter the mixture to the bottle
10. Separation between one flavor to another flavor
11. a. Delivery
b. Stock Source CV. CiptaBumi Lestari
Construct by researcher
1. Preparation of raw and materials (water, tea, and milk)
that will produce in that day. Usually company produce
1000 bottles per day (include all variants). They make
300L per variant.
2. Boiled water (16 pot; 18L per pot).
preparation of raw and
materials boiled water brewing tea
filtering process 1
mixing with milk
heating the mixture
cooling the mixture
filtering process 2
enter the mixture to the
bottle
separation flavor
delivery and stock
51
3. After the process of boiled water done, enter the tea
into the water and wait until 10 minutes to get best
texture and good smell from tea.
4. After 10 minutes, filtering process 1 is to filter the
tealeaf.
5. After filtering process is done, mixing with milk
6. After they already mix, boil again.
7. After that, cooling the mixture until around 35 degree
Celsius.
8. While process number 2 until 7 are running, there are
some people in production prepare the bottles, labeling
and washing the bottle.
9. After cooling the mixture, filtering 2 is for separating
foam of milk and dreg of tea.
10. After that, enter the mixture to the bottle (small,
medium, large)
11. After that, product already deliver to the spot and
reseller.
4) Financial
The initial capital used to start a business is from the
private equity of the owners. The company has 2 owners (share
capital). In order to support the business activities and to develop
the business, the company has loans in Bank to buy a building for
home production.
The level of income per month is fluctuated. Besides the
sales from exhibitions and events (wedding event, bazaar,etc)
company also receives money from their resellers in Jakarta and
Bekasi, also from the stores that they have in Bandung and Jakarta.
52
5) Research and Development
During run the business, CV. Cipta Bumi Lestari did some
Research and Development regularly. Before they sell and launch
the product to the market, company did tester to their friends and
family about the taste of product regularly, to keep the constantly
quality and taste of addictea itself. Then, they also have some
peoples who expert in food and beverage to tasted the taste of the
product. Also, the company always controls their internal
production regularly to make sure that everything goes right.
In addition, CV. Cipta Bumi Lestari does some surveys for
marketing location in shopping center, sport center, etc. By this
survey, company knows what customers need and want from their
product, what is strengths and weakness also many critics from
customers, also who is the real target market for their product.
6) Information Management System
Technology nowadays is like a basic need for every people.
Technology can be used for make life easily and quickly. The
technology changes are also really supporting the progress of
industries. The company using media social as a communication
tools to the customer. They have Instagram and twitter
(@addic_tea), also have their own website www.addictea.com.
However, the website was never updated again because nowadays
instagram and twitter more booming and update, also almost
everybody has it.
53
4.2.2 External Environmental Analysis
a. Macro Environment
Macro environment is the external environment factor in outside of
company‟s operations. Macro environment may be affected by
political factors and government policies, social, economy, and
technology.
1. Political and Government Policies Factors
Political and government policies factors in a country will
affect the company‟s business activities. The conducive
and stable situation can affect to the economic growth and
investment in every industry. For food and beverage
industry, there is special institute to fulfill and analysis
about “Halal” certificate and they declare the “Halal”
certificate for industry that qualified with the terms, the
institute is MUI (Majelis Ulama Indonesia).
2. Social, Cultural, Demography and Environmental
Factors
For demographic factors, the rate of population growth,
especially in Bandung and Jakarta area always increase.
This is one of our benefits to sell our product to them
which is majorities is teenager-young adult.
The purchasing power increasing because of lifestyle, in
here company try to utilize this condition to reach new
customer and keep the existing customer (customer loyalty)
3. Economic Factors
Automatically, economic factors can affect the industry.
When the economic condition in a country run well and
smooth, it will increasing the power of buying and
54
consumption in a country. This condition will ultimately
affect the macroeconomic conditions of the country. The
macroeconomic variables based on domestic side in the
economic system are the price level, employment, total
income and interest rate. Because some of raw materials
that the company used for addictea product, they import
from Thailand, Taiwan and Malaysia. Sometimes, if the
economic condition is not stable, the process of the raw
materials in bea dan cukai are postponed.
Based on the report of Indonesia Investment and article in
Kompas (Juni, 2014) economic growth reach slightly
5.17% but government predict around 5.50%, but it will
going to increase because the president election that held
this year are success, it will increasing investment in
Indonesia. It also supports by house hold consumption
growth 55.79% in Indonesia, therefore food and beverage
industry will gain more profit than last year.
4. Technology Factors
Technology can be used for make life easily and quickly.
The technology changes are also really supporting the
progress of industries. For machine updates, CV. Cipta
Bumi Lestari didn‟t have any machine update. Everything
that they do in production process is still manual. They
keep the originality and exclusivity of the “home made”.
Another influential technology factor is internet. With
internet, the company can keep in touch with the customer
by social media, and communicate between suppliers and
resellers via email and line.
55
4.2.3 Industry Environment
Industry environment describes the company‟s position in the
competition in the same industry that they operate. There are some aspects
of competition within the industry is as described in Five-Power Model
Porter‟s five forces through combination, namely: 1) threat of new
entrants, 2) rivalry among firms in the industry, 3) threat of substitute
products, 4) bargaining power buyers, 5) bargaining power of suppliers.
1. Threats of new entrants
New entrants in beverage industry (especially for milk tea) can
easily enter the market and became obstacle for existing
Beverage Companies, including CV. Cipta Bumi Lestari.
These following may be analyzed some threats from new
entrants to this industry:
a. The buyer switching costs is variety, buyer is free to move
and buy another brand. In average, buyers tend to prefer
the product with a lower price, good taste, and easy to ship
to their house (delivery to all area in Indonesia).
b. The switching cost from one supplier to another supplier.
There are many suppliers of raw material offer the
competitive price.
2. Rivalry among existing firms
The competition level in every industry may be affected by
several factors such as number of competitors, product
characteristics, and enthusiasm of one things, capacity, fixed
cost, and so forth.
Trend of drinking milk tea in Indonesia is increasing the
number of other parties to create and sell the same product like
addictea, especially in Bandung and Jakarta area. CV. Cipta
56
Bumi Lestari as the market leader of milk tea in the bottle can
take advantage from this, because most of people now this
brand as the first brand that sell milk tea in the bottle with
many variants which is delicious. Based on the raw materials
that the company used for Addictea, this is not really hard to
find and create the same things like Addictea. Of course this
one can be a threat for company. Competitors faced by CV.
Cipta Bumi Lestari, in the medium scale enterprises is actually
so many, moreover since the company followed many events
and exhibitions. But some of them, did not have same variants
with the company, also there is a competitor that used cream as
a basic raw material, not fresh milk like addicctea. Here are
some of the small medium enterprise competitors which
followed the same event also exhibition.
Table 4.5 List of Existing Competitors
No. Name of Product Address Variants
1. Say Tea Bandung 10 variants
2. Super Nom Bandung 6 variants
3. Ghis Tea Bandung 5 variants
4. Tarik Kumis Bandung 7 variants
5. King Bandung 2 variants
Constructed by researcher
With tight of competition, CV. Cipta Bumi Lestari should
always innovating and give new gimmick of Addictea (current
gimmick: Addictea mix, Addictea ice cream, Addictea float),
focus on design of packaging, and always maintain the quality
of the product so they can have the opportunity to compete
with larger competitors and open more store in some areas.
57
Table 4.6 Comparation: addictea with competitors
No Name of Product Plus Minus
1 Say Tea Have 8 variants,
can delivery
around Indonesia,
one of hijabers
community
sponsor.
They said that
they are
milktea but
the basic raw
material is
cream not
milk.
2 Super Nom Milk tea in the
bottle with
blackforest cake
and jelly as the
topping.
Production
still limited.
Doesn‟t have
a spot.
3 Ghis Tea This is the first
milk tea with
cheese in the
bottle.
Minim
promotion.
4 Tarik Kumis Delivery around
Indonesia.
Lack of
capital.
5 King Cheaper than
addictea, drink
supply for
KingKong Express
Restaurant in
Bandung.
Didn‟t have
any spot
except
KingKong
Express
restaurant.
Based on that condition, the researcher make an IFE and EFE
table for all the competitors based on FGD (Forum Group
Discussions) with 2 partners. For IFE Score analysis, there are
different score for each competitors. But in here, we make the
58
same score for EFE because opportunities and threats for
beverage industry especially for milk tea industry are same.
Table 4.7 IFE and EFE Matrix for Competitors
No Brand Name IFE Score EFE Score
1 Say Tea 2.4 2.75
2 Super Nom 3 2.75
3 Ghis Tea 3.25 2.75
5 Tarik Kumis Tea 2.8 2.75
5 King Tea 2.95 2.75
3. Threats of substitute products
CV. Cipta Bumi Lestari is a company that engaged in
beverage industry that using milk and tea as the main raw
material production. Threats of substitute products that faced
by the company is like the buyer who don‟t like milk (cow‟s
milk) or vegetarian can use and choose almond milk as an
alternative. Then, the threats can be same products with lower
price without considering the quality of product. Milk tea with
any toppings such as bubble, silk pudding, grass jelly, and etc
also can be a substitute product.
4. Bargaining power of buyers
Bargaining power of buyers is affect this industry due to
the increasing number of player in this sector by using a
variety of materials and offer many flavors of milk tea itself.
The buyer can freely make their choice easily, because a lot of
brands are selling their product in the market, and just choice
what they want. In addition, buyers also have the ability to
reduce the selling price with the demand of high quality
products and good services. Therefore, CV. Cipta Bumi Lestari
continues to innovative product with always give new
gimmicks of addictea regularly, consistent with the quality and
59
best services, and keep the good relationship with their loyal
customers.
5. Bargaining power of suppliers
Currently CV. Cipta Bumi Lestari has several suppliers for
each material. In general, the suppliers are located in Bandung,
West Java. That‟s why CV, Cipta Bumi Lestari not really faced
the high switching cost when changing supplier in case is not
able to meet demand and needs of suppliers raw materials at
CV. Cipta Bumi Lestari. Based on the explanation, the
bargaining power of suppliers for CV. Cipta Bumi Lestari is
not too strong. There is not too difficult to switch one supplier
to another supplier.
4.3 Interpretation of Results
4.3.1 Identification of internal and external strategy factor
1) Strentghs
a) Market leader and pioneer of milk tea in the bottle
CV. Cipta Bumi Lestari has the milk tea brand “addictea” which is
launch in 2011 and be the first company to sell milk tea in the
bottle especially in Bandung, West Java. After the product
booming, since the end of 2012 there are similar product come up
to the market. But, because people already know about milk tea in
the bottle is addictea (before many brand come up) they prefer buy
addictea rather than other product. This is can we called that
addictea have a brand re-call.
b) Dominate in Bandung market
Addictea has a lot spot in Bandung area. More than 20 spots that
you can find, it make customer easily to find and buy the product.
60
It‟s not easy for competitors to cover and dominate in Bandung
market.
c) Having brand advantage and quality product
People know about addictea brand because of quality of the
product itself. In the process of making the milk tea, company are
very carefully mix and match the raw materials and always control
the quality of the product before the product arrived to the
customer.
d) Solid teamwork and good leadership from both owner
CV. Cipta Bumi Lestari has two owners who dedicated,
responsible, and humble to their workers, team, also customers.
Both of owner always patient to listened and receive complain
from customers. They always maintained good relationship to
every customer that they handle. Always spirit and optimist while
doing this business are the key success from the owner.
Transparency and always evaluate regularly to keep in touch with
the team, listen their suggestion, etc.
2) Weaknesses
a) Needs extra handling care
The basic raw material for addictea is milk. Because the product
didn‟t contain any harmful materials, so the product must keep in
refrigerator, temperature resistant around 2-6 hours, avoid to the
direct sun, and best before around 7 days start from the day that
they produce. Sometimes buyer didn‟t care about how to handle
the product and after they buy the product, they complain that the
product already change, not in the good taste, and expired.
61
b) The quality control process still doing manually
CV. Cipta Bumi Lestari still doing the production process,
manually. Because they want to keeps the image of homemade and
home production exclusively. This one is good if the quantity of
the production is small, because the demand of the product always
increasing by year, they must think twice to use this method and
try to use machine as the alternative.
c) The taste sometimes not consistent
Because the company still doing the production process by
manual, sometimes the components are uneven. It will affect to the
taste of addictea. But overall, the taste still good and not too
changes.
d) Cannot delivery outside Bandung and Jakarta
Because the short product life cycle and the product must keep in
refrigerator, company cannot fulfill the demand of delivery
product outside Bandung and Jakarta.
4.3.2 External strategy factors (opportunities and threats)
1) Opportunities
a) Having a lot of media to promote the product
Not just social media that company used as a media to promote the
product, culinary event, bazaar, also food festival can be
alternative. Also the loyalty customer or community, company
used both of them to promote the product.
b) The expanding of market segment
An increasing number of populations can be an opportunity to
company for run its businesses. The demand of the product will be
62
increasing start from upper until middle class society. In addition,
company can make a new innovation to reach all segments in the
market.
c) Increasing national economic growth with independent UKM
Easiness to apply proposal Kredit Usaha Rakyat (KUR) from
government helps small medium enterprise get the credit or loan to
expand and increasing their business. Based this condition, it will
affect the national income by SME‟s activities. That‟s good also to
domestic economic growth, because SME can‟t affect by global
issues.
d) Huge market for beverage industry
Market for beverage industry is very huge, especially in big city in
Indonesia. Many segments of people and lifestyle will give new
idea to always increase the creativity of the product. This condition
will give an opportunity to expand this business.
2) Threats
a) Third-party schedules
CV. Cipta Bumi Lestari is using Baraya Travel as their third party
to deliver the product to their reseller in Jakarta and Bekasi.
Sometimes, Baraya Travel didn‟t on time to deliver the product. It
will damage the product and make the product life cycle shorter
than before.
b) High competition in beverage industry
Many brand are popping out and they sale the similar product like
addictea. Customer free to choose the product that they want. The
competitive price between rivalries also can be threat for this
sector.
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c) The substitute product are come out
Nowadays, the variety of food and beverage that market offered to
the customer can be a threat. If we just now about milk tea with
basic material is cow‟s milk, now for vegetarian or people who
allergic with cow‟s milk, there is available milk tea based on nuts
milk.
d) Economic situation (import process and procedure)
Because some of raw materials such as Thai tea extract and Taro
extract are imported from Thailand and Taiwan, sometimes in the
import process are having trouble because of unstable economic
situation and dwelling time process.
e) Unstable climate changes
As we know Bandung has cool, not too hot climate or weather.
This condition make addictea product still fresh and stay longer.
Different with Jakarta area which is the climate is hotter than
Bandung. Climate changes between Bandung and Jakarta area can
give affect for addictea product.
f) Readiness of raw and materials
The main raw and materials for addictea‟s product is rare and
should import from overseas. Not all time the import process is
easy and doesn‟t have a problem. If there is some problem about
import procedure, the stock of raw and materials cannot fulfill the
demand.
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4.3.3 IFE matrix and EFE matrix analysis
IFE Matrix analysis
Internal Factor Evaluation Matrix is a formula to analyze the
internal environment. IFE Matrix also give summary and
evaluation of strengths and weaknesses of company.
In the table 4.3.1, we can see the greatest or first strength of the
company is dominated in market Bandung with weighted score
(0.6). Second strength is having brand advantage and quality
product with score (0.576). Third strength is market leader and
pioneer of milk tea in the bottle with score (0.481). Last strength is
solid teamwork and good leadership from both owners with score
(0.285).
For weaknesses that company has, the first weakness is needs extra
handling care for addictea with weighted score (0.502). Second
weakness is the taste sometimes not consistent with score (0.348).
Third is the quality control process still doing manually with score
(0.341). and last weakness is cannot delivery outside Bandung and
Jakarta with score (0.2). The total combination of both strengths
and weaknesses of CV. Cipta Bumi Lestari are 3.408.
Table 4.8 IFE Matrix CV. Cipta Bumi Lestari
Internal Factors Key Weight Rating Weighted
Score
Strengths
1. Market leader and pioneer
of milk tea in the bottle 0.148 3.25 0.481
2. Dominate in market 0.150 4 0.6
65
Bandung.
3. Having brand advantage
and quality product. 0.144 4 0.576
4. Solid teamwork and good
leadership from both
owners.
0.114 2.5 0.285
Weaknesses
1. Needs extra handling care
for Addictea. 0.134 3.75 0.502
2. The quality control process
still doing manually. 0.105 3.25 0.341
3. The taste sometimes not
consistent. 0.116 3 0.348
4. Cannot delivery outside
Bandung and Jakarta. 0.089 2.25 0.2
Total 1 3.408
EFE Matrix analysis
External Factor Evaluation Matrix is a formula to analyze the
external environment. EFE Matrix also gives summary and evaluation of
opportunities and threats of company.
In the table 4.3.2, we can see the first opportunities that company
face and take is huge market for beverage industry with weighted score
(0.4). Second opportunity is increasing national economic growth by
UKM program with score (0.239). Third opportunity is the expanding
market segment with score (0.212). Then, last opportunity is having a lot
of media to promote the product with score (0.204).
66
Threats that company‟s should be aware are, first is economic
situation (import process and procedure) with weighted score (0.44).
Second threat is readiness of raw and materials with score (0.403). Third
threat is high competition in beverage industry with score (0.412). Fourth
threat is the substitute products are come out with score (0.332). Fifth
threat is third party schedule with score (0.297). Last threat is unstable
climate changes with score (0.203).
The total combination of both opportunities and threats of CV.
Cipta Bumi Lestari are 3.202.
Table 4.9 EFE Matrix CV. Cipta Bumi Lestari
External Factors Key Weight Rating Weighted
Score
Opportunities
1. Having a lot of media to
promote the product. 0.102 2 0.204
2. The expanding of
market segment. 0.106 2 0.212
3. Increasing national
economic growth by
UKM program.
0.087 2.75 0.239
4. Huge market for
beverage industry 0.1 4 0.4
Threats
1. Third party schedule. 0.099 3 0.297
2. High competition in
beverage industry. 0.103 4 0.412
3. The substitute products
are come out. 0.095 3.5 0.332
67
4. Economic situation
(import process and
procedure).
0.110 4 0.44
5. Unstable climate
changes. 0.074 2.75 0.203
6. Readiness of raw and
materials. 0.124 3.25 0.403
Total 3.202
4.3.4 Internal – External (IE) Matrix Analysis
This analysis is doing to easier to find and set the alternative
strategy to face the rivals and business growth in the future. The result
from IFE and EFE matrix are used to fulfill the IE Matrix analysis. Based
on that, we can know about CV. Cipta Bumi Lestari position.
The total score from IFE is 3.408 and from EFE is 3.202, the result
for IE matrix analysis is company will be in cell number I. cells number I
suggest grow and build strategy. This means intensive and aggressive
tactical strategies. Company should focus on market penetration, market
development, and product development. From the operational perspective,
a backward integration, forward integration, and horizontal integration
should also be considered.
For intensive and aggressive tactical strategy, market penetration is
already done by CV. Cipta Bumi Lestari by have a lot of spot for addictea,
so this condition can increase potential customer, promotion and hard for
competitors to dominate Bandung market. Company also can apply
market development strategy by expanding of market segment (new target
market, new area). For product development strategy by make innovation
68
of the product such as add new variants, change the existing packaging,
etc.
Table 4.10 IE Matrix analysis
4.3.5 SWOT Matrix analysis
SWOT matrix analysis as the result from internal factor analysis strategy
and external factor analysis strategy.
Table 4.11 SWOT Matrix CV. Cipta Bumi Lestari
IFAS
S
1. Market leader
and pioneer of
milk tea in the
bottle
2. Dominate in
Bandung market
3. Having brand
advantage and
quality product.
4. Solid teamwork
W
1. Needs extra
handling
care for
addictea.
2. The quality
control
process still
doing
manually.
3. The taste
69
EFAS
and good
leadership from
both owners.
sometimes
not
consistent.
4. Cannot
delivery
outside
Bandung and
Jakarta.
O
1. Having a lot of
media to promote the
product.
2. The expanding of
market segment.
3. Increasing national
economic growth by
UKM program.
4. Huge market for
beverage industry
S – O Strategy
1. (S1, S2, S3, S4,
O1, 02, 03, 04,
05)
Market
Development
- Open new
spot or adding
reseller
outside
Bandung area.
- More active in
social media.
2. (S1, S3, O1, O2)
Try another sector
such as open
addictea café or
tearoom but not
just sell addictea,
also sell another
food (such a
cake/cookies)
W – O Strategy
1. (W1, W4, O1,
O2, O3, O4,
O5)
Make a
research to
expand the
market by
open new
home
production
outside
Bandung and
Jakarta to
fulfill the
demand of
addictea.
2. (W2, W3, O5)
Hire new
employee who
expert in
quality control
70
based on milk and
tea.
product and
understand
about SOP.
T
1. Third party
schedule.
2. High competition
in beverage
industry.
3. The substitute
products are
come out.
4. Economic
situation (import
process and
procedure).
5. Unstable climate
changes.
6. Readiness of raw
and amterials.
S – T Strategy
1. (S1, S2, S3, T2,
T3, T5)
Make a new
innovation to
boost up the exist
image of addictea.
2. (S3, T1)
Looking for
alternative third
party.
3. (S4, T4, T6)
regularly stock the
raw materials
(import) and
prepare the local
supplier for plan
B.
W – T Strategy
1. (W1, W2, W3,
T4, T5, T6)
Double
checking
product and
upgrade
system
production by
using machine.
2. (W4, T1, T2,
T3)
Join event
(food festival
or fashion and
art) to reach
direct
customer also
as a
promotion.
Based on the SWOT table, there are several strategies for CV.
Cipta Bumi Lestari:
1. Open new spot and adding new reseller outside Bandung and Jakarta,
also more active in social media (SO-1), CV. Cipta Bumi Lestari need
71
to open new spot to reach the new market segment (for example, open
spot in car saloon). Company also should active in social media that
they already have such as instagram and twitter to keep in touch with
the customer and update new event or etc.
2. Try another sector (SO-2), such as open addictea café or tearoom but
not just sell addictea, also sell another food (such a cake/cookies)
based on milk and tea.
3. The expanding market (WO-1), make a research to expand the market
by open new home production outside Bandung and Jakarta to fulfill
the demand of addictea.
4. Recruiting new employee (WO-2), hire new employee who expert in
quality control product and understand about SOP.
5. Make a new innovation to boost up the exist image of addictea.(ST-1),
in here company should make a new innovation (for example: add new
variants, change the packaging, make yearly event, etc)
6. Looking for alternative third party (ST-2), company should looking
for another third party to deliver the product to the reseller and
customer on time. Or company open new division such as distribution
division to deliver the product to reseller and customer.
7. Regularly stock the raw materials (import) and prepare the local
supplier for plan B. (ST-3), sometimes economic situation is not stable
and it will give impact to import of raw and materials. In here
company should research another local supplier to fulfill the readiness
of raw and materials.
8. Double checking product and upgrade system production by using
machine (WT-1), because the production system still doing manually,
double checking is a must. And for the future, company should
research and learn about how to upgrade system by using machine for
production.
9. Join event (food festival or fashion and art) to reach direct customer
also as a promotion (WT-2).
72
4.3.6 QSPM Analysis
The result form QSPM analysis for CV. Cipta Bumi Lestari is
alternative strategies for company to more success while run the
business. The main alternative strategy that company should
interpretation (SO-1) in their business is open new spot and adding
new reseller outside Bandung and Jakarta, also more active in social
media. CV. Cipta Bumi Lestari needs to open new spot to reach the
new market segment (for example, open spot in car saloon). Company
also should active in social media that they already have such as
instagram and twitter to keep in touch with the customer and update
new event or etc, by the highest Total Attractive Score (TAS) 7.405.
Table 4.12 QSPM CV. Cipta Bumi Lestari
Order Strategies TAS
Score
1
Open new spot and adding new reseller
outside Bandung and Jakarta, also more active
in social media.
7.315
2 The expanding market. 7.093
3 Join event (food festival or fashion and art) to
reach direct customer also as a promotion. 6.519
4 Double checking product and upgrade system
production by using machine. 6.254
5 Try another sector. 6.218
6 Make a new innovation to boost up the exist
image of addictea. 6.218
7 Regularly stock the raw materials (import) and
prepare the local supplier for plan B. 5.621
8 Looking for alternative third party. 5.233
9 Recruiting new employee. 4.703
73
CHAPTER V
CONCLUSION AND RECOMMENDATION
5.1 CONCLUSION
This research will conclude what is the best formulation strategy for CV.
Cipta Bumi Lestari while improving the competitive advantage. Then, the
analysis of the strategy will be influenced by some factors such as internal
factors (strength and weakness), external factors (opportunities and
threats) and conclude what is the best strategy formulation that will be
used for improving the competitive advantage. Those external and internal
aspects of CV. Cipta Bumi Lestari next to be analyzed by using strategic
tools such as IE Matrix and SWOT Matrix. The last decision strategy
making is QSPM, to list the most suitable alternative strategy for
company. The analysis from QSPM show some alternative strategy such
as the best alternative strategy is open new spot and adding new reseller
outside Bandung and Jakarta, also more active in social media with TAS
7.315.
5.2 RECOMMENDATION
Recommendations for CV. Cipta Bumi Lestari are:
a. Keep going with existing strategy and apply the alternative
strategy while running the business to achieve goals of the
company in the future.
b. Set a Standard Operating Procedure for management.
c. Looking for upgrade system to using machine to make easy the
production process and efficiency time.
74
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78
APPENDICES
Internal Factors Strategy (owner)
Internal Factors Strategy A B C D E F G H Total Weight
Strengths:
A. Market leader and pioneer of milk
tea in the bottle.
X 2 2 3 1 3 2 3 16 0.144
B. Dominate in Bandung market 3 X 3 3 3 3 2 2 19 0.172
C. Having brand advantage and
quality product.
2 2 X 3 3 3 2 2 17 0.153
D. Solid teamwork and good
leadership from both owners.
1 2 2 X 2 3 2 2 14 0.126
Weaknesses:
E. Needs extra handling care for
addictea.
2 2 1 2 X 3 2 2 14 0.126
F. The quality control process still
doing manually.
1 1 1 2 2 X 1 1 9 0.081
G. The taste sometimes not
consistent.
1 1 1 2 3 1 X 3 12 0.108
H. Cannot delivery outside Bandung
and Jakarta.
1 2 1 1 2 2 1 X 10 0.090
Total
111 1
79
External Factors Strategy (owner)
External Factors Strategy A B C D E F G H I J Total Weight
Opportunities:
A. Having a lot of media to
promote the product.
X 2 2 3 2 2 2 2 3 1 19 0.106
B. The expanding of market
segment.
2 X 2 3 2 3 3 2 3 2 19 0.106
C. Increasing national
economic growth by UKM
program.
3 2 X 2 2 3 2 2 2 2 20 0.111
D. Huge market for beverage
industry.
2 1 2 X 2 3 2 2 3 2 16 0.089
Threats:
E. Third party schedule. 2 2 3 2 X 2 2 1 3 2 19 0.106
F. High competition in
beverage industry.
2 2 2 2 1 X 2 1 2 1 15 0.083
G. The substitute products are
come out.
2 1 2 1 2 2 X 1 3 1 15 0.083
H. Economic situation (import
process and procedure).
2 2 3 2 3 2 2 X 2 2 20 0.111
I. Unstable climate changes.
1 1 3 1 2 1 2 2 X 2 15 0.083
J. Readiness of raw and
materials.
3 2 2 3 2 2 3 2 3 X 22 0.122
Total 180
80
Internal Factors Strategy (Marketing)
Internal Factors Strategy A B C D E F G H Total Weight
Strengths:
A. Market leader and pioneer of milk
tea in the bottle.
X 3 2 3 2 2 3 3 18 0.158
B. Dominate in Bandung market 3 X 2 3 1 3 3 3 18 0.158
C. Having brand advantage and
quality product.
2 2 X 2 2 2 3 2 15 0.131
D. Solid teamwork and good
leadership from both owners.
1 1 2 X 1 2 2 2 11 0.096
Weaknesses:
E. Needs extra handling care for
addictea.
2 3 2 3 X 2 3 3 18 0.158
F. The quality control process still
doing manually.
2 1 2 2 2 X 3 2 14 0.123
G. The taste sometimes not
consistent.
1 1 1 2 1 1 X 1 8 0.070
H. Cannot delivery outside Bandung
and Jakarta.
1 1 2 2 1 2 3 X 12 0.105
Total
114 1
81
External Factors Strategy (Marketing)
External Factors Strategy A B C D E F G H I J Total Weight
Opportunities:
A. Having a lot of media to
promote the product.
X 3 2 1 2 2 2 3 2 3 20 0.111
B. The expanding of market
segment.
1 X 3 2 2 2 3 3 2 3 21 0.117
C. Increasing national
economic growth by
UKM program.
2 1 X 1 2 1 1 3 1 1 13 0.072
D. Huge market for
beverage industry.
2 2 2 X 1 2 2 2 1 3 17 0.095
Threats:
E. Third party schedule. 2 2 3 1 X 2 1 1 2 2 16 0.089
F. High competition in
beverage industry.
2 1 3 2 2 X 2 2 2 19 0.106
G. The substitute products
are come out.
1 1 1 1 2 3 X 2 1 1 13 0.072
H. Economic situation
(import process and
procedure).
2 2 3 2 3 2 2 X 3 3 22 0.122
I. Unstable climate
changes.
1 1 3 1 1 2 2 3 X 1 15 0.083
J. Readiness of raw and
materials.
3 2 3 3 3 2 3 2 3 X 24 0.133
Total 180 1
82
Internal Factors Strategy (Finance)
Internal Factors Strategy A B C D E F G H Total Weight
Strengths:
A. Market leader and pioneer of milk
tea in the bottle.
X 2 2 2 2 3 2 3 16 0.147
B. Dominate in Bandung market 2 X 2 2 3 3 3 2 17 0.156
C. Having brand advantage and
quality product.
2 2 X 2 2 3 2 3 16 0.147
D. Solid teamwork and good
leadership from both owners.
2 2 2 X 2 2 2 2 14 0.128
Weaknesses:
E. Needs extra handling care for
addictea.
2 1 1 1 X 2 2 2 11 0.101
F. The quality control process still
doing manually.
1 1 2 1 2 X 2 2 11 0.101
G. The taste sometimes not
consistent.
2 1 2 2 2 3 X 3 15 0.137
H. Cannot delivery outside Bandung
and Jakarta.
1 2 1 1 1 1 2 X 9 0.082
Total
109 1
83
External Factors Strategy (Finance)
External Factors Strategy A B C D E F G H I J Total Weight
Opportunities:
A. Having a lot of media to
promote the product.
X 2 2 1 2 1 2 2 1 3 16 0.092
B. The expanding of market
segment.
2 X 2 2 2 1 2 2 2 3 18 0.103
C. Increasing national
economic growth by UKM
program.
2 2 X 1 1 1 2 1 1 2 12 0.685
D. Huge market for beverage
industry.
2 2 3 X 1 1 2 2 2 3 18 0.103
Threats:
E. Third party schedule. 3 3 3 2 X 3 2 2 3 3 24 0.137
F. High competition in
beverage industry.
2 2 2 2 2 X 1 2 3 3 19 0.109
G. The substitute products are
come out.
2 2 3 2 2 1 X 2 3 3 20 0.114
H. Economic situation (import
process and procedure).
2 2 2 2 2 1 1 X 1 2 15 0.086
I. Unstable climate changes.
1 1 2 1 1 1 2 1 X 2 12 0.068
J. Readiness of raw and
materials.
3 2 2 3 2 2 3 2 3 X 22 0.122
Total 175 1
84
Internal Factors Strategy (Production)
Internal Factors Strategy A B C D E F G H Total Weight
Strengths:
A. Market leader and pioneer of milk
tea in the bottle.
X 3 2 3 1 3 2 2 16 0.142
B. Dominate in Bandung market 3 X 1 2 1 2 1 3 13 0.115
C. Having brand advantage and
quality product.
2 2 X 2 2 3 2 3 16 0.142
D. Solid teamwork and good
leadership from both owners.
1 2 2 X 1 2 1 3 12 0.106
Weaknesses:
E. Needs extra handling care for
addictea.
3 3 2 3 X 2 2 2 17 0.150
F. The quality control process still
doing manually.
1 2 1 2 2 X 2 3 13 0.115
G. The taste sometimes not
consistent.
2 3 2 3 2 2 X 3 17 0.150
H. Cannot delivery outside Bandung
and Jakarta.
2 1 1 1 2 1 1 X 9 0.080
Total
111 1
85
External Factors Strategy (Production)
External Factors Strategy A B C D E F G H I J Total Weight
Opportunities:
A. Having a lot of media to
promote the product.
X 1 1 1 2 2 2 2 1 2 114 0.077
B. The expanding of market
segment.
3 X 3 2 2 3 2 2 2 3 22 0.122
C. Increasing national
economic growth by UKM
program.
3 1 X 1 2 3 2 2 1 3 18 0.1
D. Huge market for beverage
industry.
2 2 2 X 2 3 2 2 2 3 20 0.111
Threats:
E. Third party schedule. 2 1 1 1 X 1 1 1 1 2 11 0.062
F. High competition in
beverage industry.
2 2 2 2 2 X 3 2 2 3 20 0.111
G. The substitute products are
come out.
2 2 2 2 2 3 X 2 2 3 20 0.111
H. Economic situation (import
process and procedure).
3 2 3 2 2 3 2 X 2 3 22 0.122
I. Unstable climate changes.
2 1 1 1 1 2 1 1 X 1 11 0.062
J. Readiness of raw and
materials.
3 2 3 2 3 2 2 2 3 X 22 0.122
Total 180
86
Weight for Internal Factor
No Internal Factor Owner Marketing Finance Production Weight
STRENGTHS
1 Market leader and
pioneer of milk tea in
the bottle.
0.144 0.158 0.147 0.142 0.148
2 Dominate in market
Bandung.
0.172 0.158 0.156 0.115 0.150
3 The family-oriented
and mutual
assistance in working
atmosphere.
0.153 0.132 0.147 0.142 0.144
4 Solid teamwork and
good leadership from
both owners.
0.126 0.096 0.128 0.106 0.114
WEAKNESSES
1 Needs extra handling
care for addictea.
0.126 0.158 0.101 0.150 0.134
2 The quality control
process still doing
manually.
0.081 0.123 0.101 0.115 0.105
3 The taste sometimes
not consistent.
0.108 0.070 0.137 0.150 0.116
4 Cannot delivery
outside Bandung and
Jakarta.
0.090 0.105 0.082 0.080 0.089
Total 1 1 1 1 1
87
Weight for External Factor
No External Factor Owner Marketing Finance Production Weight
OPPORTUNITIES
1 Having a lot of media
to promote the product.
0.126 0.111 0.092 0.077 0.102
2 The expanding of
market segment.
0.081 0.117 0.103 0.122 0.106
3 Increasing national
economic growth by
UKM program.
0.108 0.072 0.068 0.1 0.087
4 Huge market for
beverage industry.
0.090 0.095 0.103 0.111 0.1
.THREATS
1 Third party schedule. 0.106 0.089 0.137 0.062 0.099
2 High competition in
beverage industry.
0.083 0.106 0.109 0.111 0.103
3 The substitute products
are come out.
0.083 0.072 0.114 0.111 0.095
4 Economic situation
(import process and
procedure).
0.111 0.122 0.086 0.122 0.110
5 Unstable climate
changes.
0.083 0.083 0.068 0.062 0.074
6 Readiness of raw and
materials
0.122 0.133 0.12 0.122 0.124
Total 1 1 1 1 1
88
Rating for Internal Factor
No Internal Factor Owner Marketing Finance Production Rating
STRENGTHS
1 Market leader and
pioneer of milk tea in
the bottle.
4 3 3 3 3.25
2 The family-oriented
and mutual assistance
in working
atmosphere.
4 4 4 4 4
3 The family-oriented
and mutual assistance
in working
atmosphere.
4 4 4 4 4
4 Solid teamwork and
good leadership from
both owners.
3 3 2 2 2.5
WEAKNESSES
1 Needs extra handling
care for addictea.
3 4 4 4 3.75
2 The quality control
process still doing
manually.
3 3 3 4 3.25
3 The taste sometimes
not consistent.
3 3 3 3 3
4 Cannot delivery
outside Bandung and
Jakarta.
2 3 2 2 2.25
89
Rating for External Factor
No External Factor Owner Marketing Finance Production Rating
OPPORTUNITIES
1 Having a lot of media
to promote the product.
2 2 2 2 2
2 The expanding of
market segment.
2 2 2 2 2
3 Increasing national
economic growth by
UKM program.
3 2 3 3 2.75
4 Huge market for
beverage industry.
4 4 4 4 4
.THREATS
1 Third party schedule. 3 3 3 3 3
2 High competition in
beverage industry.
4 4 4 4 4
3 The substitute products
are come out.
4 3 3 4 3.5
4 Economic situation
(import process and
procedure).
4 4 4 4 4
5 Unstable climate
changes.
3 3 3 2 2.75
6 Readiness of raw and
materials
3 3 3 4 3.25
90
IFE Matrix for Say Tea
Internal Factors Key Weight Rating Weighted
Score
Strengths
5. Market leader and pioneer
of milk tea in the bottle 5% 2 0.1
6. Dominate in market
Bandung. 35% 3 1.05
7. Having brand advantage
and quality product. 25% 3 0.75
8. Solid teamwork and good
leadership from owner. 5% 2 0.1
Weaknesses
5. Needs extra handling care
for product. 15% 2 0.3
6. The quality control process
still doing manually. 10% 2 0.2
7. The taste sometimes not
consistent. 5% 2 0.1
8. Cannot delivery outside
Bandung and Jakarta. 0% 0 0
Total 100 2.4
91
EFE Matrix for Say Tea
External Factors Key Weight Rating Weighted
Score
Opportunities
5. Having a lot of media to
promote the product. 15% 3 0.45
6. The expanding of
market segment. 15% 3 0.45
7. Increasing national
economic growth by
UKM program.
10% 3 0.3
8. Huge market for
beverage industry 10% 4 0.4
Threats
7. Third party schedule. 10% 2 0.2
8. High competition in
beverage industry. 10% 2 0.2
9. The substitute products
are come out. 15% 3 0.45
10. Economic situation
(import process and
procedure).
5% 2 0.1
11. Unstable climate
changes. 5% 2 0.1
12. Readiness of raw and
materials. 5% 2 0.1
Total 100% 2.75
92
IFE Matrix for Super Nom
Internal Factors Key Weight Rating Weighted
Score
Strengths
1. Market leader and pioneer
of milk tea in the bottle 5% 2 0.1
2. Dominate in market
Bandung. 10% 2 0.2
3. Having brand advantage
and quality product. 15% 3 0.45
4. Solid teamwork and good
leadership from owner. 5% 2 0.1
Weaknesses
1. Needs extra handling care
for product. 15% 3 0.45
2. The quality control process
still doing manually. 20% 3 0.6
3. The taste sometimes not
consistent. 10% 3 0.3
4. Cannot delivery outside
Bandung and Jakarta. 20% 4 0.8
Total 100 3
93
EFE Matrix for Super Nom
External Factors Key Weight Rating Weighted
Score
Opportunities
1. Having a lot of media to
promote the product. 15% 3 0.45
2. The expanding of
market segment. 15% 3 0.45
3. Increasing national
economic growth by
UKM program.
10% 3 0.3
4. Huge market for
beverage industry 10% 4 0.4
Threats
1. Third party schedule. 10% 2 0.2
2. High competition in
beverage industry. 10% 2 0.2
3. The substitute products
are come out. 15% 3 0.45
4. Economic situation
(import process and
procedure).
5% 2 0.1
5. Unstable climate
changes. 5% 2 0.1
6. Readiness of raw and
materials. 5% 2 0.1
Total 100% 2.75
94
IFE Matrix for Ghis Tea
Internal Factors Key Weight Rating Weighted
Score
Strengths
1. Market leader and pioneer
of milk tea in the bottle 5% 2 0.1
2. Dominate in market
Bandung. 5% 2 0.1
3. Having brand advantage
and quality product. 20% 4 0.8
4. Solid teamwork and good
leadership from owner. 5% 2 0.1
Weaknesses
1. Needs extra handling care
for product. 15% 3 0.45
2. The quality control process
still doing manually. 20% 3 0.6
3. The taste sometimes not
consistent. 10% 3 0.3
4. Cannot delivery outside
Bandung and Jakarta. 20% 4 0.8
Total 100 3.25
95
EFE Matrix for Ghis Tea
External Factors Key Weight Rating Weighted
Score
Opportunities
1. Having a lot of media to
promote the product. 15% 3 0.45
2. The expanding of
market segment. 15% 3 0.45
3. Increasing national
economic growth by
UKM program.
10% 3 0.3
4. Huge market for
beverage industry 10% 4 0.4
Threats
1. Third party schedule. 10% 2 0.2
2. High competition in
beverage industry. 10% 2 0.2
3. The substitute products
are come out. 15% 3 0.45
4. Economic situation
(import process and
procedure).
5% 2 0.1
5. Unstable climate
changes. 5% 2 0.1
6. Readiness of raw and
materials. 5% 2 0.1
Total 100% 2.75
96
IFE Matrix for Tarik Kumis
Internal Factors Key Weight Rating Weighted
Score
Strengths
1. Market leader and pioneer
of milk tea in the bottle 5% 2 0.1
2. Dominate in market
Bandung. 10% 3 0.3
3. Having brand advantage
and quality product. 15% 3 0.45
4. Solid teamwork and good
leadership from owner. 5% 2 0.1
Weaknesses
1. Needs extra handling care
for product. 15% 3 0.45
2. The quality control process
still doing manually. 20% 3 0.6
3. The taste sometimes not
consistent. 10% 2 0.2
4. Cannot delivery outside
Bandung and Jakarta. 20% 3 0.6
Total 100 2.8
97
EFE Matrix Analysis
External Factors Key Weight Rating Weighted
Score
Opportunities
1. Having a lot of media to
promote the product. 15% 3 0.45
5. The expanding of
market segment. 15% 3 0.45
6. Increasing national
economic growth by
UKM program.
10% 3 0.3
7. Huge market for
beverage industry 10% 4 0.4
Threats
7. Third party schedule. 10% 2 0.2
8. High competition in
beverage industry. 10% 2 0.2
9. The substitute products
are come out. 15% 3 0.45
10. Economic situation
(import process and
procedure).
5% 2 0.1
11. Unstable climate
changes. 5% 2 0.1
12. Readiness of raw and
materials. 5% 2 0.1
Total 100% 2.75
98
IFE Matrix for King
Internal Factors Key Weight Rating Weighted
Score
Strengths
1. Market leader and pioneer
of milk tea in the bottle 5% 2 0.1
2. Dominate in market
Bandung. 10% 3 0.3
3. Having brand advantage
and quality product. 20% 3 0.6
4. Solid teamwork and good
leadership from owner. 5% 2 0.1
Weaknesses
1. Needs extra handling care
for product. 15% 3 0.45
2. The quality control process
still doing manually. 20% 3 0.6
3. The taste sometimes not
consistent. 10% 2 0.2
4. Cannot delivery outside
Bandung and Jakarta. 20% 3 0.6
Total 100 2.95
99
EFE Matrix for King
External Factors Key Weight Rating Weighted
Score
Opportunities
2. Having a lot of media to
promote the product. 15% 3 0.45
8. The expanding of
market segment. 15% 3 0.45
9. Increasing national
economic growth by
UKM program.
10% 3 0.3
10. Huge market for
beverage industry 10% 4 0.4
Threats
13. Third party schedule. 10% 2 0.2
14. High competition in
beverage industry. 10% 2 0.2
15. The substitute products
are come out. 15% 3 0.45
16. Economic situation
(import process and
procedure).
5% 2 0.1
17. Unstable climate
changes. 5% 2 0.1
18. Readiness of raw and
materials. 5% 2 0.1
Total 100% 2.75
100
Interview session 1
Informant: Mutia (owner of addictea), Sishy (admin marketing), Iqbal (HRD)
Date: 8 October 2014
Time: 17:30 – 18:40
Place: addictea office Jl. Cisangkuy No. 46 Bandung
Management and Human Resources
Ayu: Mr. Iqbal, how many divisions in CV. Cipta Bumi Lestari
itself?
Mr. Iqbal: Okay… heeemm… actually we have 4 divisions for this
company, but the overall monitoring still doing by Mutia
and Saski.
Ayu: Could you mention what division that exists and how many
peoples that works in each division.
Mr. Iqbal: Wait a minute, I will open the document first….
Operational, Finance, Marketing, and
Research&Development. Actually in here, there are some
peoples that work in double job, but I will mention it based
on their main job. For operational 10..11.. 13 peoples with
their head of Operational division. For finance, there is 1
people that handle. For marketing 4 peoples, 3 peoples stay
in addictea store at PVJ Mall, 1 people stay in addictea spot
cisangkuy). Also we have 1 sales administration in
marketing division. For R&D, there are 2 peoples.
Ayu: Okay, so in here there are 21 peoples that work in CV.
Cipta Bumi Lestari. By the way, how about the salary
system for employee? Per month or per week?
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Mr. Iqbal: We pay the salary every month, with specification basic
salary.
Ayu: Nah… except the basic salary that company give per
month, is there any additional income or benefit for the
employee? I mean for UKM sometimes if there is any
event, company will give the employee bonus.
Mr. Iqbal: Oh… no Ayu, it just for basic salary and allowances.
Ms. Sishy: In here, we give basic salary, meal for their lunch, transport
allowance, bonus (for over time), and bonus.
Ayu: Okay, I get it. Then, how about the recruitment system?
Mr. Iqbal: Most of the employee we got is based on relation from
friends and family. And also we have open recruitment.
Ayu: In open recruitment process, what is standard or
qualification to join in this company?
Mr. Iqbal: For the first, we have direct test to specific job, for example
if we open for operational division, we test them direct how
to operate this one and this one. And if we open the
recruitment for admin production, we give problems
question that they should answer it. And for the second is
we look more subjective.
Ms. Mutia: In here we looks from their experience, attitude, and also
from personal data. In here we also did written test and
interview test.
Ayu: So, this is just like another recruitment process, people
bring cv, cover letter, and interview?
Ms. Mutia: Yeah indeed, but for open recruitment we did it just one
day, for the first session they should pass the written test
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based on job that their applied. Then, after they finish it,
we continue to interview section. And the result we
announce in that day.
Ayu: So, if the job vacancy that you open is for production, it
should be people from food engineering background?
Mr. Iqbal: For admin production, yes ofcourse. Because they should
calculate the raw material for every production process.
Ayu: So, there is shouldn‟t base on bachelor degree or diploma?
Ms.Mutia: For every admin, minimum is D3 or diploma 3
Ayu: Okay… so, for admin it should be D3, is it?
Ms. Mutia: Actually, for this company, diploma or D3 is for level
manager. But for production people, in here I mean the real
people who did every single process in production, we
don‟t need D3 or diploma, SMA or Sederajat its okay. As
long as they can learn and handle the production process.
And also they experience.
Mr. Iqbal: For example, in here they have experience as coolie or
construction labor, we can‟t place them in production, we
can placed them in distribution.
Ayu: Okay… I see.
Mr. Iqbal: Actually, the real food engineer programs will we placed in
R&D
Ayu: Okay. What are the facilities that company gives to their
employee?
Mr. Iqbal: We give health benefits and education allowance for their
children.
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Ayu: That‟s cool. Not all UKM give education allowance for
their employee‟s children.
Ms. Sishy: Ya ofcourse, most of people that work in here, especially in
operational division already have a childrens.
Ayu: So, there are just facilities that company‟s give to their
employees?
Ms. Mutia: Actually, we want to add one facility, annuity from
jamsostek, but still on the process.
Ayu: So, for health benefits itself isn‟t jamsostek?
Ms. Mutia: No ayu, for now the health benefits still reimburse system.
Okay, essentially we want our employee feel safe and
comfort while work with us. Okay we can‟t give them high
salary but we want them to comfort and not dizzy to think
about school fees, because we provide it.
Ayu: Wow… actually, the system for the employee is
developing very well. Nice touch.
Mr. Iqbal: Actually, our business still small, so we can get closer each
other. In here, the employee already help us to build this
business, so we want them to loyal and comfort to work in
here. We want to make an image that if they take the
decision to work with us in long-term, they will feel safe
and comfort with all facilities that we give.
Ayu: Mr. Iqbal, in your point of view as a HRD in this company,
production is a power or heart of this business, so for the
people, are they capable enough?
Mr. Iqbal: For production, well if we talk about capable I guess no.
But for now, they are fulfilling the standard qualification to
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work in operational division. Of course we need to
upgrade, but we can‟t upgrade them, we should upgrade
our system. For example to check and re-check the product,
and quality unit control they aren‟t 100% understand about
tea, about milk. Then, for data record in warehouse, they
also didn‟t have enough education to do that. Based on this
condition, we have standard qualification as we already
discuss, minimum D3 or diploma for admin in production.
But overall, they are capable enough to work in production.
And we also think that, if someday we change to the
machine, they can operate that.
Ayu: So, until today, the operational still doing manually?
Mr. Iqbal: Yes…
Ayu: Okay, because I need to make some documentation in
home production for all of production process.
Ms. Shisy: You can also open the coverage at net siang/addictea
bandung
Ayu: Wow… okay miss.
Mr. Iqbal: We are transparent and didn‟t lie about the company to
every researcher that has goodwill. Our company is the real
home production, so almost the process still doing
manually. Still using hand, not using machine.
Ayu: Next question about how to handle addictea itself? Because
we know that addictea is a risk product and need extra care
to handle.
Mr. Iqbal: Ya, but basically it is not difficult as long as we give the
right information to customer about how to take care of
addictea. Actually, there is different temperature of
105
refrigerator of every customer. In here, we set the best
before date 3 days before the real date. This is to keep the
addictea itself still fresh while the customer‟s consume it.
And also the weather changing can give effect to addictea,
for example in Bandung it may stay fresh until 10 days, in
Jakarta maybe around 5-7days because the different
temperature.
Ayu: Ya, I‟m agree with that condition! And next question is
how to set the price?
Mr. Iqbal, Ms. Mutia, Ms. Sishy: (laughing together)
Ms. Mutia: Well ayu… actually this is one of our funny story while
build this company. Before we launched addictea, there is a
pioneer of milk tea (thai tea) in Bandung, but in a plastic
glass. And honestly, we set the price as same as their price.
After we launch addictea, we re-calculate again about the
price and we found that we are wrong to setting the price at
the beginning, based on this condition we cannot give the
different price range and lil bit discount between active
reseller, and non-active reseller.
Ayu: Oh… okay. About packaging, is there any innovation, I
mean the bottle itself. I think the bottle not really exclusive,
many competitors using the same shape of the bottle.
Ms. Mutia: Ya we already think about that. Actually we still waiting
for the new design of the bottle, inshaa Allah in 2015 we
will change the bottle with new one.
Ayu: Good news! And then, after addictea change the bottle, it
will give effect for quality of the product? I mean the
product will stay longer, more than 7 days? Or you will use
cartoon box with UHT system.
106
Ms. Mutia: Actually no, ayu. In here, bottle just a media to cover the
addictea itself. Just for branding. But the packaging will be
more exclusive, the detail of product will complete. And
for using milk cartoon with UHT system we still not yet
thinking about that. Because we still use the real home
production process, need a long time to upgrade to
machine.
Ayu: Okay… because it‟s hard to say to customer that addictea
cannot deliver outside Bandung and Jakarta, because the
bottle very transparent and easily to affect with room
temperature.
Ms. Mutia: Yeah we know. And we also didn‟t use any harmful
ingredients, so very pure combination between milk and tea
itself.
Ayu: How about promotion activities, start from first event that
addictea join.
Mr. Iqbal: We already join all of category of event, start from event
that held by government institution, bazaar at school and
campus, fashion community, food community, event
regular per one year, etc. but nowadays, we filter the event
that we will join to because we keep the market and image
of the addictea itself, so we just focus in food festival,
fashion and art festival, entrepreneur event such as
brightspot and trademark.
Ayu: I want to ask about raw materials, what you get from, and
etc…
Ms. Mutia: About the production and raw materials I will send it from
email to you.
107
Ayu: Okay miss, thank you. And next question is, is there any
storage or warehouse to keep the product and raw material?
Ms. Mutia: We don‟t have a warehouse or storage for product, because
every day we always make a new product to keep the
freshness of addictea itself, and Alhamdulillah almost
every day we always soldout in our entire outlet. But for
raw material, we just keep the flavor ingredients at least
stock for next 2 months.
Ayu: Okay… and about finance, where the first capital comes
from?
Ms. Mutia: We have 2 owners in here, me and Saski share capital IDR
2.500.000 per person.
Ayu: How about loan form bank? Do you have?
Ms. Mutia: Ya we have loan in bank for buying a house for home
production.
Ayu: Okay… about R&D. what they do before sell the product
to the real market.
Ms. Mutia: In the beginning, long way before we launch the product to
the real market, we give sample to our family and friends
and ask their comment about the product, and they said
addictea is delicious.
Mr. Iqbal: After several times we give the sample freely, we choose
some of people that expert and know about the
characteristic of addictea itself to tasted addictea regularly,
to make the taste constant and this is the real taste of
addictea.
108
Ayu: Oh… so, these people who check the taste of addictea
regularly is like the barometer for addictea product before
sell to the market?
Mr. Iqbal: That‟s right. Because we still home production so,
sometimes people make mistake in the production process.
Before we deliver product to customer, these people always
check the taste regularly.
Ayu: Ya, because I‟m one of addictea lovers, so sometimes I
found that the thai tea not really sweet, or too much milk
combination rather than thai tea, etc.
Mr. Iqbal: Ya we already know about that. That‟s I already told you,
some mistake may be happens in production process. And
nowadays, our R&D team focuses to make a new product
development and internal reset.
Ayu: I‟m still curious, why you choose milktea as the product?
Ms. Mutia: Because we are milktea lovers, especially Saski, and in
Bandung at that time it‟s hard to find milk tea which is
easy to get, cheap, and delicious.
Ayu: There‟s no chatime in Bandung at that time?
Ms. Mutia: If I‟m not mistaken, chatime not yet enter the market in
Bandung, the thai tea brand that I know just Quickly and
icup.
Ayu: ya I know Quickly product, delicious same like addictea
hahaha. Okay the next question will be data system that
company use. Is there any specification software?
Mr. Iqbal: We have pos (point of sales) for our transaction but we still
develop new software for all access.
109
Ms. Mutia: For example, as an owner I should have one access to see
and control everything that happens in my business, the
kind of software that still we develop.
Ayu: Ya I‟m agree because this is very important to company
data base. And next question will be political and
government policies factor, is there any support from
government to UKM especially for CV. Cipta Bumi
Lestari?
Mr. Iqbal: Ya we have, government in Bandung area send MUI to
give Halal certificate for UKM in Bandung for free.
Ayu: What are economic factors that affect this business?
Mr. Iqbal: Macro-economic?
Ayu: yes…
Mr. Iqbal: Of course we have. If the price of fuel increase, it is hard to
find the raw materials, and because some of raw and
material we import from Thailand, Taiwan and Malaysia
sometimes if the economic condition not stable, the process
of raw materials in bea cukai are postponed.
Ayu: So you don‟t have any backup plan for facing this
situation?
Ms. Mutia: Ya ofcourse, we also have distributor for raw materials in
local area. So, if there is a problem with import process, we
already have a backup plan to fulfill the demand of
product.
Ayu: Nice plan. And about substitute product and threats, how to
face this one?
110
Ms. Mutia: Nowadays many similar products are coming out, but in
here, as a market leader we don‟t really worry about that,
we always focus to branding product, give new gimmick
regularly (addictea ice cream, addictea float, etc), keep the
name of addictea always exists. Actually we want to launch
the new product, silky pudding from addictea but we are
too late and Puyo already booming.
Ayu: So in here, you keep addictea as main product, and to brand
recall, you give new gimmick for addictea to boost the
existence of addictea itself. So people will always pay
attention to addictea.
Ms. Mutia: Exactly!
Ayu: How about bargaining power of buyer? In your point of
view?
Mr. Iqbal: In here we always keep the quality and service to our
customer. And Alhamdulillah our customer said that
addictea is delicious, and enough for us. When we launch
new gimmick such as addictea float, addictea mix, and
addictea ice cream, customers always enthusiast about that
and love the taste. And if there is any complain from
customers, we handle very patient and put our shoe in
customer shoe. And if they understand what we already
explained and said its okay and will buy addictea again, we
feel so happy.
Ayu: How about bargaining power of suppliers?
Mr. Iqbal: Actually we always buy with large quantity, so if the
suppliers can‟t fulfill the demand from our order, there is
not difficult to switch to another supplier.
111
Ms. Mutia: Ayu, I want you to make our SWOT analysis based on our
story
Ayu: Okay miss! Back to packaging, I have some statement from
my friends and people that said why the packaging is lake
this. There is no plastic seal, no ingredients or nutrition
facts, etc.
Mr. Iqbal: In here actually we have different mindset. Ofcourse in the
first time we worry about packaging. But in 2013 there are
some researcher from Europe students that want to make a
reaseach about home production in Indonesia, and after
they know about addictea, they really appreciate about the
packaging, they said that this is the real homemade (in their
mindset). Maybe in the future we will mass production
with machine, but still keep the exclusively of homemade
itself.
Ayu: I‟m agree with you, because people look image of
homemade production more exclusive rather that mass
product.
Mr. Iqbal: That‟s why we want to keep the image of homemade itself
although we already using machine in the future.
Ayu: I think the information is enough for my thesis, if there is
something missing or not complete I will ask you again.
Ms. Mutia: Just contact us to arrange next session of interview, about
production and you will take some video right?
Ayu: Yeah sure. Thank you so much for helping me and spent
your time to have this section with me.
Ms. Mutia: Don‟t worry ayu, we ready to help you. Complete
document and company profile will we send by email ya.
112
Ayu: Okay miss, thank you so much.
Ms. Mutia: Don‟t mind sweety…
------end-----
113
Interview session 2
Informant: Rido (Production)
Date: 7 January 2015
Time: 09.30 WIB
Place: addictea office Jl. Cisangkuy No. 46 Bandung
Ayu: Mr. Rido, Mr. Iqbal already sent me an email of addictea
production flow. And now, could you explain the detail of each
process? Okay lets we see at the process number 1. How many
doses for the water and milk? In the number one, there is already
separated for each flavor or not?
Mr. Rido: In the process number one, we already separated the doses for each
flavor (based on production in that day, for example 300 liters)
Ayu: Okay… then, the second process is boiled the water and after that
enter the tealeaf into the water. Could you explain the specific?
How long this process?
Mr. Rido: In here we boiled the water, after that lift the pan from the stove,
enter the tealeaf into the water and we doing process brewing
around 10-15 minutes.
Ayu: Okay hold on, how many times process of boiling water and
brewing tea?
Mr. Rido: We bolied the water for per 2 flavors, and then after finish,
continue with 2 different flavors until 6 flavors.
Ayu: Oh I see… and for next process is filtering 1 (tealeaf). After
filtering, we mix the water and tea with milk. In this process, we
direct enter the milk or waiting for cooling process?
114
Mr. Rido: In here we process the addictea around 300 liter per day, divided
by 18 is around 16 pans for boiled the water. In here we have 9
stoves, so after 9 pans already finish boiling the water, the next
pan will be ready to put in the stove, and the other measure the
dose of tea (…gram), milk(…liter). The first 9 pans are going to
the next process which is brewing the tea. So, in here we just use
the stove for boiling process.
Ayu: In this process, we just put the fresh milk into the pan without
boiling it first?
Mr. Rido: No ayu, in here after we combine the tea with water and fresh
milk, we heating the mixture, so there is no process of boiling the
milk.
Ayu: Okay, I go back to brewing process. To get the best aroma and
flavor of originality tea itself, how much time we need? I-2 hours?
Mr. Rido: (laughing) no ayu… its around 15 minutes per pan. If less than 15
minutes, the aroma and flavor will not really strong, if too long the
flavor will a little bit bitter.
Ayu: (laughing) I guess around 1 or 2 hours… okay the next step will
be filtering process 2.
Mr. Rido: After we heating the mixture, we cooling the mixture and we wait
until the temperature of the mixture around 35 degree Celsius. We
put off the foam and dregs of tea.
Ayu: In the whole process, there is no one of the process that enter or
mixing the sugar to the mixture. Because in here, addictea is
sweet.
Mr. Rido: Actually we used already sweet milk. So we didn‟t use pure milk.
115
Ayu: Oh… I think the milk that use in here is fresh milk which is plain.
Okay I see.
Mr. Rido: And I will add some point, in the process number 2-7, there is
another process in the same time which is prepare the bottle, team
take the bottle from warehouse and then washing it, labeling the
bottle and bottle ready to use.
Ayu: How many bottle per day?
Mr.Rido: 1000 bottles per day.
Ayu: 1000 bottles is for spot or including order from reseller?
Mr. Rido: Already include all order.
Ayu: Is it possible to sell the 1000 bottles per day?
Mr. Rido: Of course, because we have around 20 spot in Bandung, 2 spot in
Jakarta, also from another reseller outside Bandung and Jakarta.
But sometimes we make the addictea just based on order in that
day.
Ayu: In the result, how many hours in total production per day?
Mr. Rido: Heem… 6-7 hours per day.
Ayu: Okay Mr. Rido, thank you so much for the explanation.
Mr. Rido: The information already enough for you?
Ayu: Yeah of course, if there is another question I will contact you by
email.
Mr. Rido: Okay ayu. Good luck.
---end---
116
Interview with direct customers
Informant: Customers addictea
Date: Oktober-Desember 2014
Time: -
Place: President University Cikarang and Cisangkuy No. 46 Bandung
-Emi Rahayu-President University-
Ayu: Hi Emiiii……. Cieee you buy addictea. How about addictea in your point
of view?
Emi: Hahaha hi kakak! I love to drink addictea because it‟s so delicious
especially for coffee flavor.
Ayu: Wow nice to hear that. And then, how about the other? I mean packaging,
the whole product?
Emi: Honestly everything is okay kak, but one thing is addictea cannot stay in
outside more than 6 hours huuhuu… I‟m so saaad.
Ayu: Hahaha I‟m sorry dear because you already know lah, there is no harmful
ingredient and based raw material is fresh milk.
Emi: Iya kak huuhuu. But okay lah kak, as long as I can drink addictea
everyweek in canteen… please restock per week ya kak.
Ayu: Surely emiiii… Thank you for buying addictea!
Emi: Yuhuuu my pleasure kaaak.
117
1. Logo
2. Product
118
3. Name card
119
4. Addictea spot
spot at PVJ sky level
Spot at Jl. Cisangkuy
120
5. Events
Event at Trans Studio Mall
Wedding reception at Tirta Siliwangi
Event Paskah at PVJ
