CHAPTER I

Planning & Formulation of the Strategy

(Using Balance Scorecard Approach)
1.1 Purpose of the Practicum
1. Students can analyzing SWOT of organization
2. Students can formulating vision and mission of organization from SWOT analysis
3. Students understand about steps to making strategy and work program.
4. Student can making strategy and work program to realizing company vision and applying
it.
1.2 Input
1. New family Car for output mission and vision
2. Mission and vision for develop company strategy
.3 Output
1.2.1 SWOT Analysis and Grouping (Group + & Group -)

Internal
Strengths
Weaknesses
The use of human resources & qualified New product development
technology
Having SOP that easy and clear

Having not produce many product yet

understanding
High selling value
Spare part are widely available on the

Limited of service network

Difficulties in obtaining customers

market

satisfaction
Table 1.1 IFAS Analysis

External
Opportunities
Threats
The existence of free trade in ASEAN
High government policy for tax
Product market share is big
High competitive industry
Having effective coorporate
Rise and fall of currency values
Accuracy in product launches
Cheaper product competitor
Table 1.2 EFAS Analysis

SWOT

Internal

Grouping
Group +
The use of human

Group New product

resources & qualified

development

technology
Having SOP that easy

Having not produce

and clear understanding

High selling value

many product yet

Limited of service

Spare part are widely

network
Difficulties in obtaining

available on the market

The existence of free

customers satisfaction
High government policy

trade in ASEAN

for tax
Product market share is
External

big

High competitive

Having effective

industry
Rise and fall of currency

coorporate
Accuracy in product

values
Cheaper product

launches
competitor
Table 1.3 SWOT Analysis Grouping

1.2.2

Vision and Mission Statement

SWOT

Group
+

The use of human

Blueprint Vision Statements

Questions
What products that
What kind of
you want to
product that you
create? Why the
want made?
products made?
Answers
Economical family The car use for

resources & qualified car. Because in our

daily live with

How the
company in 10
years to come?
The company
can lead the

technology
Spare part are widely
available on the

country, family car

capacity for

market

became primadona

family and

especially in

in 5 years ago. So,

implemented

family car with

market
The existence of free

our company want

high technology

good after

trade in ASEAN
Product market share

to make the family

for the attribute

service sales.

car that

and machine.

is big
New product

economical,

The product is

Quality and good

safe and comfort

development
Having not produce

after service

for the
passenger, then

many product yet

Group - High government

the performance

policy for tax

Rise and fall of

itself can be

currency values

years.
Being the leader in the market automotive industry that

Vision Statement

assurance for 10

provide low price, good quality, and the best after service
sales
Table 1.4 Form Blueprint Vision Statements

Organization Name

PT. Mobil Unggul

Indonesia

Blueprint Mission Statements

Questions
What you do?
For whom do you

1. Become the
market leader
for automotive
industry at least
in 50 country in
the world.
2. Continous
improvement for
the production
system, quality,

do it?
Answers
1. For customer
satisfaction
2. The company
itself

How you will get it

done?
1. Improving in
research and
development
field
2. Expand the link
for marketing
and also
advertising
3. Supported with
compatible

machine

worker &

performance,

technology
4. Good

design of the

production

product and

system

implement
competitive
Mission Statement

pricing
To being the leader in automotive industry that implemented
competitive pricing
1. Improving in research and development field
2. Expand the link for marketing and also advertising
3. Supported with compatible worker & technology
4. Good production system
Table 1.5 Form Blueprint Mission Statements

1.2.3

Strategy Formulation
Strengths
Internal - The use of human

Weaknesses
- New product

resources & qualified

technology
External

- Having SOP that easy

development
Having not produce

many product yet

Limited of service

network
Difficulties in obtaining

and clear understanding

- High selling value
- Spare part are widely
Opportunities
- The existence of free trade in
-

ASEAN
Product market share is big
Granting the discount to loyal

customers
Accuracy in product launches

customers satisfaction

available on the market

SO
WO
1. Continous
1. Expand the networking
improvement

of the company
supported with human 2. Develop new plant with
high capacity
resources and
3. Doing survey customer

qualified technology
2. Accuracy product

launches and give the

discount can affect
the customer
satisfaction

Threats
- High government policy for
-

tax
High competitive industry
Rise and fall of currency

values
Cheaper product competitor

ST
1. Efficience and
effective cost
production
2. Adjust the total cost

WT
1. Doing market research
2. Supplier selection with
loyalth and good
criteria

based on the tax

Table 1.6 Matrix SWOT

Formulation of the strategy

1. Continous improvement supported with human resources and qualified technology
To follow the growth in automotive industry, the company should improve the product
continously. This activity is a strategy to survive in this bussiness.
2. Accuracy product launches and give the discount can affect the customer satisfaction
To build the company more bigger, we must expand our networking. This expansion can
be to our supplier, distributor and some relation in automotive industry.
3. Expand the networking of the company
Try to expand the networking with all aspect that involve in business process such as
goverment, society, supplier and other with intention to grow together.
4. Adjust the total cost based on the tax
Each country have their own policy for the tax. Based on our calculation for total cost, we
can calculate that our product not to expensive if plus with the tax.
5. Supplier selection with loyalth and good criteria
Supplier selection, our company can produce the product based on the material that
supplier send. At least we must have 3 supplier to fullfill our requirement and why we use
3 supplier, because the other supplier can substitute the other supplier when the supplier
can deliver the material.
6. Develop new plant with high capacity
This strategy will be implemented to faced low production to maximalized the market
share in the competitiveness and handle fluctuative demand that will be happened.
7. Doing survey customer
Its difficult to obtain customer satisfaction if we do not know what customer voice really
want. Hence, we try to implemented strategy such as doing survey for customer before
and after customer buy our product to handle before and after customer service.
8. Efficience and effective cost production

To faced high goverment policy tax and cheaper product competition, the company will be
implemented efficience and effectiveness cost production with Total Quality Management
that supported good SOP, human resource, and high technology
9. Adjust the total cost based on the tax
Because of the high tax policy from government, the company should adjust the pricing
cost with the tax to get profitability for company.

1.2.4 Target Strategy

1. Finance perspective
- Profitability
The main purpose in bussiness world is to get the profit from our product. Why it is became
important, because to do our bussiness we need money and if we can increase our profit the
investor will invest in our company. So, our company can growth rapidly.
-

Low cost Production system with good quality

To handle with high tax and competitiveness pricing product, the company should try to
develop good production system with criteria low cost and keep maintain quality with focus
to optimized every detail aspect in production system.
-

Lead the market

Our company can increase the profit constantly, the number of our customer are increase and
some investor invest their money in our company. This is cool because we can lead the market
based on those three parameter.
2. Customers perspective
- Customers satisfaction
Satisfaction of the customer is the key for the customer comfort with our services.
-

Customers belief

Customers belief, we can give some guarantee and 24 hours services, so the customers feel
happy and safe if something happen with our products.
3. Internal bussiness perspective
- Quality of the product
Quality of the product is the most important thing, customer will buy our product because of
our quality.
-

Innovative design & product development

In this era product with innovative design can get the customers attention. To do that we must
do continous improving in product development.
4. Learning and growing Perspective

Skill of employees

Skill less employee can do their job based on company obligation. Each company has their
own obligation to make the product.
-

Welfare of the customers

To make our employee loyal with their company, welfare for the worker are became main
concern.
1.2.5

Strategy Mapping

Finance

Profitability
Lead the market

Good pricing

Customers
Customers satisfaction

Customers belief

Internal
Innovative design and product
development

Quality of the product

Learning
Welfares of employees

Skill of employees
Table 1.7 Mapping Strategy

1. Learning
The first basis or source for satisfied strategy mapping for above table are welfares of
employees and skill of employees. This two state will be influence the internal perspective
of our company where welfares of employees can influence quality of the product
with increase the morale of employees and skill of employees can infulence both state
internal perspective quality of the product and Innovative design and product
development.
2. Internal
The second step in the information flow for above strategy mapping is internal perspective
where quality of the product and Innovative design and product development
involved in this perspective then can be influence customers perspective. Both of the
internal perspective can influence both of customer perspective that are customer
satisfaction and customer belief because with gain performance both internal
perspective can achive what customer want it and need it.
3. Customer
The third step in strategy mapping above is customer perspective where there are two state
that are customer satisfaction and customer belief. Both of the customer perspective
can influence directly two of the finance perspective and after that can get third of finance
perspective that is profitability.
4. Finance
The last perspective is finance perspective where in this mapping strategy there are three
state of finance perspective that are lead the market, good pricing, and profitability.

1.2.6

Work Program

Target Strategy

Objective

Measuremen

t
- Profitability - Market
Profit
- Good
condition
Finance
Pricing
- Customers
Good Pricing- Lead the
demand
Market
- Total Cost

Target

Working

Increasing

Program
- Expand the

profit each

distribution

year
Effective

of product
Implemente

Lead the market

Customers
Customers
belief

Innovative design &

research development

d continuous

efficiency

improvemen

production

t in all

system
Lead the

aspect

- Customers - Level of
Belief
Demand
- Customers - Level of

Demand
- Customer

Satisfaction

n
- Innovative - Level of

Internal

and

market
- Level of

Satisfactio

Customers
satisfaction

Design &

Satisfaction

services
- Customers
Satisfaction

Product

-Give guarantee
for the
product
-Open new
-

branches
Research
and
developing

Developm
ent
- Quality of

Quality of
product

Product
- Skill of
Skill of
employees
Welfares of
employees

- Test &

Employees
interview
- Welfares of - Level of
Employees

Satisfaction

- Improvement - Give periodic

Skill
- High

training
- Health insurance

Productivity

Learning

Table 1.8 Working Program

1.3.4
1.3.1

Conclusion and Recommendation

Conclusion

This research about planning and formulation the strategy using Balanced Score Card
approach and determine the Strength, Weakness, Opportunity and Threath in PT. Mobil
Unggul Indonesia that walk in automotive bussiness with the product is family car.
Before we determine the SWOT of our company, the first thing is find the vission and
mission in PT. Mobil Unggul Indonesia. To determine the vission, we use grouping (group +

and group -) of our strength, weakness, opportunity and threath. And for mission in our
company, we use some question to find what is our mission to achieve our vission.

Vision
Being the leader in the market automotive industry that provide low price, good
quality, and the best after service sales

Mission
o Good production system
o Improving in research and development
o Expand the link for marketing and also advertising
o Supported with compatible worker & technology
After determine the SWOT in our company and grouping them based on group + and

group -, the next step is make the SWOT matrix to find the correlation each component. After
that we can formulate our strategy, in this case we conclude that there are 8 parameter such as:
1. Continous improvement supported with human resources and qualified technology
To follow the growth in automotive industry, the company should improve the product
continously. This activity is a strategy to survive in this bussiness.
2. Accuracy product launches and give the discount can affect the customer satisfaction
Accuracy in product launches will break the other competitor, because we launch our
product when the customer nedd this. Beside that giving some discount can get the
customer to buy our product.
3. Expand the networking of the company
To build the company more bigger, we must expand our networking. This expansion can
be to our supplier, distributor and some relation in automotive industry.
4. Adjust the total cost based on the tax
Each country have their own policy for the tax. Based on our calculation for total cost, we
can calculate that our product not to expensive if plus with the tax.

5. Supplier selection with loyalth and good criteria

Supplier selection, our company can produce the product based on the material that
supplier send. At least we must have 3 supplier to fullfill our requirement and why we use

3 supplier, because the other supplier can substitute the other supplier when the supplier
can deliver the material.
6. Develop new plant with high capacity
This strategy will be implemented to faced low production to maximalized the market
share in the competitiveness and handle fluctuative demand that will be happened.
7. Doing survey customer
Its difficult to obtain customer satisfaction if we do not know what customer voice really
want. Hence, we try to implemented strategy such as doing survey for customer before
and after customer buy our product to handle before and after customer service.
8. Efficience and effective cost production
To faced high goverment policy tax and cheaper product competition, the company will be
implemented efficience and effectiveness cost production with Total Quality Management
that supported good SOP, human resource, and high technology
Based on those eight parameter we can mapping our strategy and make our working program.

1.3.2

Recommendation

By determine the vission and mission of the company, company can know the purpose of their
bussiness. Based on those colaborated by using SWOT analysis, company can mapping their
strategy and work program to defend in their bussiness, automotive industry specific product
is family car.