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FINAL PROJECT GUIDELINE

Master of Business Administration Program

School of Business and Management

Institut Teknologi Bandung

2007
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Revised: 27-11-2013 (minor revisions).

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CHAPTER 1 INTRODUCTION

1.1. Background
The Master of Business Administration Program of ITB (MBA-ITB) emphasizes the
importance of understanding and mastery on the dynamic of business problems in the
real world. Therefore, MBA-ITB presents various real business nuances to its students
inside and outside the class. In the class, these are realized through the use of case-
based teaching method. Different kinds of case from various sources are used to build
business sense within the students. Whereas outside the class, these are realized by
urging the students to directly see the practices of business in any various companies
and to discuss them for the understanding of the business practices.

At the end of learning process, the students are obliged to carry out a Final Project
serving as a means for the students to work independently, under the guidance of a
lecturer, to solve a real business problem in Indonesia. Through this three-month
project, it is expected that they can sharpen up their ability in understanding and
solving the problems in business world. In addition, the Final Project of MBA-ITB has
the following objectives:
1. The Final Project is expected to be a means for the students to develop their
business insights and personalities required to be the reliable and ethical
business leaders who are able to manage the business problems which are
getting more complex in the future.
2. The Final Project is expected to be a means to improve the students
communication ability, both verbally and nonverbally.

1.2. Objective
This Document is prepared to guide the students in making their final projects. This
document substitutes the Final Project Guide prepared in 2004. The difference from the
previous document is in the format of writing. Previously there are three formats
(Problem Solving, Business Plan, and Systems Design), whereas in this document there
is only Business Problem Solving. By this change, it is expected that the students are
able to demonstrate their work contributions for the business problem solving.
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There are two aspects to be explained in this guide book, firstly anything that related to
the physical requirements of the Final Project report and secondly covering the
structure or composition of the Final Project report.

1.3. Physical requirements of the report

1.3.1. Paper size
The Final Project Research shall be printed on the HVS paper of A4 (210 mm x 297
mm) size with 80 g/m2 (HVS 80 GSM) weight.
1.3.2. Printout and binding
The printout and binding of the Final Project report shall comply with the following
conditions:
1. Using black ink computer printout with 12 pt serif font type, such as Times
New Roman or Palatino for narration, and 10 or 9 font size for quotes, tables
and figure annotations
2. Being printed in both consecutive sides.
3. The minimum binding thickness is 35 mm. For the right side page, when the
book is open (recto page), the left margin shall not be less than 25 mm. For the
left side page, when the book is open (verso page), the right margin shall not be
less than 25 mm. The other margins shall not be less than 20 mm.
4. The narration paragraphs shall have 1.5 lines space, whereas the quotes,
diagram contents, tables, figures and references shall have 1 line space.
5. The first new paragraph shall have 3 lines space from the end of the previous
paragraphs.
6. The first letter of the new paragraph shall start on the left margin of the text.
New paragraph shall not start on the bottom margin, except that there is
sufficient space for at least 2 lines. The end of a paragraph shall not be placed
on the next new page, leave the end line on the bottom of the page.
7. The first letter after the punctuation marks, such as comma, semicolon, colon,
and full-stop, shall be printed by leaving a space empty (a space between two
letters) after the punctuation marks.
8. The odd pages shall be on the recto page, and the even pages shall be on the
verso page.
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9. The new chapter shall start on the odd page numbers. Whereas the even page
numbers after the end of a chapter (having odd page numbers) shall be left
empty without page number.
10. The original document of the Final Project shall be printed 3 (three) times for
final project examination and shall be submitted to the Academic Services of
MBA ITB. After the completion of the examination process, and the declaration
of pass, a revision shall be made (if any) as requested by the examiner for the
candidate, further the candidate shall be asked to submit 1 (one) hardcopy of the
Final Project report and 2 (one) soft copy with pdf format.

1.3.3. Tolerance over mistake

The document of the Final Project report shall not contain any mistake, or mistake
correction (zero tolerance). Accordingly, the student is obliged to consider and
accommodate the comments made by the academic counselor or the examiners of the
examination properly to avoid errors.

1.4. Rules of writing

The writing of the Final Project report shall comply with the rules of proper writing,
namely:
(1) Using the standard language and terms briefly and clearly
(2) Following the prevalence of writing in the field of Business and Management
according to this guide book.

1.5. Use of English

The English used in the Final Project document shall be formal English by observing
the rules of grammar. The sentence shall be intact and complete. Using the sufficient
punctuation marks as required shall be intended to differentiate subordinate clause from
main clause, and explanatory sentence from explained sentence, and any others.

Personal pronoun, especially the first personal pronoun (I and We), shall not be used,
except in quotation sentences. Please try as well as possible to make the composition of
sentence unnecessary to use the personal pronoun.
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Syllables may be separated according to grammar regulations. The last word on the
bottom of a page shall not be cut.

1.6. Rules of numbering

Pages, such as executive summary, validation, preface, table of contents, list of tables,
list of figures, list of appendices, list of abbreviations and symbols shall be given
numbers separate from the page numbers of the Final Project by using notations i, ii, iii
. The page numbers of the principal (core) part of the Final Project shall be in the
form of Arabic numerals 1, 2, 3 consecutively from the beginning to the end. Both
numberings shall be placed at the left bottom or the right bottom of the page.

1.7. Rules of title and sub-title writing

The Final Project Report of MBA-ITB is a business report. Each of the principal part is
called Chapter. The rules of writing of each chapter shall be explained in the subtitles
hereunder.

1.7.1. Primary title of chapter

The primary title is designed for the main part of the article. Please write down the
primary title of each chapter at the center, print by using 14 size capital letters with
bold font. For example, see CHAPTER 1 INTRODUCTION first written above.

1.7.2. Secondary title (subtitle)

The Secondary Title (subtitle) shall be given number according to the sequences of the
subtitle in that chapter by using Arabic numeral. The first number shows the chapter
number and the second number shows the subtitle number in that chapter. For example,
1.1. Background shows the first subtitle in the first chapter. The Subtitle shall be
written in small letters, except for each beginning of word, using capital letter. Please
print the secondary title by using bold font, for instance as seen on subtitle 1.8. Rules
of title and sub-title writing.
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1.7.3. Tertiary title (sub-subtitle)

The rules are same as the secondary title, except that the number consists of 3 digits,
and the sub-subtitle shall be written in italic font, for instance as seen on 1.7.3.
Tertiary title (sub-subtitle).

1.8. Rules of quotation writing

In the event of any words or sentences taken from any other document or quoted from
an interview, such quotation shall be written between two quotation marks and if the
quotation is long (more than 3 lines) shall be written in a separate paragraph protruding
to the right along 10 mm. Moreover, the source of quotation should be stated (see
Section 1.9 on Rules of Citing Reference/Source).

The use of quotation should ensure that who is quoted and what is relation, the reader is
informed. Please make this quotation informed in a flow manner, thereby the relation
between quotation and main writing may be seen their harmony.

The following examples give quotation illustration taken from Richard Steers book.
The aggressive defense mechanism is defined in a book titled Introduction to
Organizational Behavior chapter 18 as follows: Aggressive defense mechanism
includes those reactions by which we directly or indirectly attack the source of the
treath to our self concept (Steers,1996: 22)

Name of author Year of publication page

If in the quotation the name of author is stated, the quotation mark shall no more need
to state the name of author, for example:

Arthur Goldsmith defines entrepreneurial politics, as a situation where ...society, or

large part of thinks it gains from a policy that harms a small segment of society (2002:
202).

This example shows long quotation written in one separated paragraph (a quotation
over 3 lines), all at once gives the illustration of using ellipsis (a set of dots). Such a set
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of dots shows that in that part the information of quotation source is not displayed, due
to no relevance.

In the event the quotation is written separately, the quotation shall be written in 10 mm
space from the left side and between the lines shall have one space.
In the recruitment of new employee, an interview shall be made to obtain information,
not to evaluate the information itself, as set forth by Wood & Payne as follows:
The main objective of the interview should be to collect relevant information. You
do not evaluate the information during the interview. ....By relevant information,
we mean relevant to the competencies you are trying to assess. In practice, this
means gathering specific example of candidate has actually achieved in the past
and how they did it. (1998: 108)

Year of publication Page

The following example gives the illustration of quotation from quotation or double
quotation, namely the author quotes from Steers, whereas Steers himself quotes from
Thomas:
In chapter 18 Introduction to Organizational Behavior, Richard Steers offers the
definition of conflict:Conflict is the process which begins when one party perceives
that the other has frustated, or is about to frustate, some concern of his (Thomas,
1976, p.891) (1996: 244)

Source of quotation
written by the author Source of quotation stated in
the book written by Steers

In the following example, the quote is written separately, as it is cut by the statement of
one who quotes:
The process non-action strategy, according to Steers, is to wear down the
dissatisfied employee while at same time claiming that resolution procedures are open
and available (1996: 323)
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1.9. Rules of citing reference/source

All writings quoted from books, journals, documents not published or from internet
needs to state their sources by stating the last name of the author, year of publication
and page number quoted. The sources of quotation shall be placed in the bracket
(Author-Date Harvard System).

1.9.1. Writing of quotation source of more than one author

Format: (name of authors, year: page)
the measured goal for any works having no measured result is often not productive as
the goal is rarely associated with the result (Nahavandi and Malekzadeh, 1999: 205)

........strategic goals ...(Anchonam, Kochan, Van Maanen, & Westney, 1999, M-2, 10)

Or using the word et.al.

........strategic goals ...(Anchonam et.al. 1999, M-2, 40)

The above examples show that the quote is taken from a book written by Anchonam
et.al of Module 2 page 40, as each page in the module is given number separately,
thereby the first page of each module shall be begun with page one.

1.9.2. Interview quotation and published document source writing

In the event the quote is taken from an interview, please state the name of one
interviewed, type of contact (for example, personal interview or by phone) and date,
example: (Fireman, Personal Interview, 10/10/2002).

In the event the quote is taken from any document not published, please state the name
of author, year, page (if available). In the event of unknown author, please state the
name of organization or document quoted, and in the event of no date, please state n.d.:

In the following example, the year of publication is unknown (Hamblin and Austin,
n.d.:25).
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In the following example, the name of author is unknown. (Health Services Partnership
Business Plan, 1999:2)

1.9.3. Writing of internets quotation source

Format: name of author, year of publication, and page number (if any).
In the event there is no name of author, please state the name of periodic magazine, or
website name. In the event of nothing as stated above, please state n.d.

If the information is very up to date (for instance, the information of present year
companys finance), please use the current year when stating the website, it is no need
to state all web addresses (URL), as they are available in references.

Some examples:
(Fujiwara, 2001: 19)
(Jenisch, n.d.), in the event the year of publication and page number are unknown.
(businessweek.com, 2004), in the event the name of author is unknown and the
quotation is made in 2004 as well.

1.10. Rules of figure and table attachment

The attachment of figures, diagrams, photos, tables or maps shall be made by following
the rules, as follows:
Use the type of paper same as any other parts of the document, unless due to
technical needs the photo or figure printout is impossible to use the 80 gram
HVS paper. In this case, please try to use a paper possibly for well binding,
thereby joining to any other parts.

The title of figures/photos/maps shall be placed below the figures/photos/maps,

whereas the title of tables shall be fixed above the tables, written in small letter,
except for each beginning of syllable, it shall be written in capital letter (except
for conjunction). See Appendix A1.
A table shall not be fixed separately in two pages, unless the table is too large,
so it is impossible to be in one page. In this case, the continued table may be
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fixed on the next page, by inserting all the same tables heads, and giving the
title with the same table number added with the statement continuation. See
Appendix A2.
The table or figure layout may be adjusted to the needs of a report harmony. If
the landscape layout is used, the rule of page numbering and any others will be
adjusted to page set-up menu of the Word Processor.
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CHAPTER 2 REPORT FORMAT

As set forth in Chapter 1, the Final Project of MBA-ITB is an activity to solve the
business problems. In this chapter, a format on business report prepared to solve a
business issue will be described.

Generally, the Final Project Report is prepared in three sections, as listed in Table 2.1
below.
Table 2.1 Format structure of final project report
Section Subject
Introductory Parts Cover
Abstrak
Abstract
Validation Page
Acknowledgement
Table of Contents
List of Figures
List of Tables
List of Appendices
Core Chapter 1. Introduction
Chapter 2. Business Issue Exploration
Chapter 3. Business Solution
Chapter 4. Conclusion and Implementation Plan
Closing References
Appendices
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2.1. Introductory parts

2.1.1 Cover
The type and size of letters are specified as follows:
Final Project Title : Font 14 bold, Capital
The words FINAL PROJECT : Font 14 bold
The word by : Font 12 bold
Name of Student : Font 12 bold
NIM : Font 12 bold
ITB Symbol : 3.5 cm height and ganesha logo empty
Master of Business Administration Program: Font 14 bold
School of Business and Management : Font 14 bold
Institut Teknologi Bandung : Font 14 bold
Year of completion : Font 14 bold
The letter type as mentioned above shall use serif font, such as Palatino or Times New
Roman. See Appendix B1 for this part.

2.1.2 Abstract
This part shall be written in Indonesian Language and English, each of which starts on
a new page. The Abstract of MBA-ITB Final Project is an executive summary in
business report. This part consists of 500-800 words and contains brief description on
business issues, study results on exploration to business issues in order to find the root
causes, alternative solution suggested and recommended for the implementation plan.
The abstract shall be printed in one space of Times New Roman font (or Palatino) 11
and have the margin same as the main parts of the Final Project. Page containing this
part shall be titled ABSTRAK (for Indonesia Language version) and ABSTRACT
(English version) . The first sentence of the abstract shall have 2 lines space from the
title. See Appendix B2 to find the example of abstract.

2.1.3 Validation page

The Validation Page shall be printed in a new page containing the Final Project title,
name of student, NIM, study program, counselors name and signature (Academic
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Counselor) and co-counselor (if any), either from the company (Field Counselor) or
another Academic Counselor . The names of both counselors shall be written side by
side beginning from the Academic Counselor on the left and the Field Counselor on the
right. The example of validation page can be seen on Appendix B3.

2.1.4 Acknowledgement page

The acknowledgement shall be written on a new page. On this page the student shall
write the expression of thanks to the Counselors, company, and individuals
scientifically related and supporting the preparation of the Final Project by using
standard sentences (example can be seen in Appendix B4).

2.1.5 Table of contents page

The Table of Contents shall be printed on a new page and be titled TABLE OF
CONTENTS written in capital letter with no full stop.

This page contains chapter number, sub-chapter number, chapter title and chapter
subtitle and page number where the chapter title and sub-chapter title are included.
Each of the three shall be written on the three consecutive columns.

The chapter number shall be written in Roman Numerals with no point at the end,
whereas the sub-chapter number shall be written in Arabic Numerals separated by a
point. See explanation on chapter title and sub-title writing.

The chapter title, sub-title and sub-subtitle shall be written in small letters except for
the first letter of each word, it should be written in capital letter, whereas the chapter
title and subtitle shall be stated with no full stop.

The Table of Contents would be better generated by using any facilities available in the
Word Processor. See Appendix B5, Table of Contents example.
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2.1.7 List of figures page

The List of Figures shall be printed on a new page. This page contains figure number,
figure title and page number where a figure is inserted.

The figure number shall be written in two digits separated by point. The first digit shall
be written in Arabic Numerals showing chapter number where the figure is inserted,
whereas the second digit written in Arabic Numerals show the sequential number of the
figure within a chapter.

The figure title or name shall be written in small letter, except for the first letter of the
first word, it shall be written in capital letter. The lines of figure title shall be separated
with one space. The other rules are same as those of writing of the table of contents.

2.1.8 List of tables page

The methods of writing of the List of Table shall be same as those of writing of the List
of Figures.

2.1.9 List of appendices page

The List of Appendices shall be printed on a new page. This page contains appendix
number, sub-appendix, appendix title and sub-appendix title, and page number where
the appendix title and sub-appendix title are inserted.

The sequence of appendix shall be written in capital letter using Latin Alphabets, A, B,
... and so on, whereas the sequence of sub-appendix shall be printed in Arabic
Numerals, showing the sequential number of the sub-appendix. The methods of writing
shall be same as those of chapter title or sub-chapter title in the table of contents page.
This List would be better generated through the facility available in the Word
Processor. The samples of appendix can be seen on any appendices available in this
document.
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2.2 Report core

The report core will be explained in detail in Chapter 3 of this book.

2.3 Closing
2.3.1 References
In the References, any references are included serving as direct reference in the Final
Project made. The method of writing of the References shall follow the following
guidance:
a. The References shall start on a new page.
b. Write the title REFERENCES as primary title.
c. Use the hanging indent paragraph format, so the second line and the
following shall protrude to the right more than the first line.
d. The sequence of references shall be made according to the alphabetical order of
the last name of author or editor. If there is no authors name, please use the
companys author alphabetical order (for instance, BPS), monthly magazine (for
instance, Bulletin ITB).
e. Another alternative is to use the referencess sequential number.
f. If in the references there are more than one book written by one author (a group
of authors), please restate the authors name (a group of author) according to
books he/she/they write(s).
g. In the event of any matters of item f above, please order the references
according to the successive year of publication.
h. In the event of the same year of publication, please differentiate the books by
inserting the small letters a, b, c, etc.... after the year.

2.3.1.1 Book-related references

The rules of the book-related references attachment shall be as follows: Authors or
Editors Last Name, Initial, Year, Book Title (italic), City of Publication, Country
Name Abbreviation, and Publisher.
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Example:
Kahn, R.L. & Bouding, E (Eds.), 1964, Power and Conflict in Organization, Glencoe,
IL: Free Press.
Katz,D., & Kahn, R.L. 1978, The Social Psychology of Organizations (2nd ed.), New
York: Wiley.
Wibisono, D., 2003, Riset Bisnis Panduan Bagi Praktisi dan Akademisi, Jakarta, INA:
Gramedia Pustaka Utama.

If the publisher or place of publication or any other information is not available, then
the following abbreviation shall be stated:
n.p. (no publisher) in the event of no publisher information available,
N.p. (No place of publication) in the event of no publishers location available
n.d. (no date) in the event of unknown information on the date of publication
n.pag. (no pages) in the event of no page number available.

2.3.1.2 Magazine/journal/bulletin-related references

The sequence of this bibliographical writing shall be: Authors Last Name, Initial, year
of publication, Name of Magazine/Journal/Bulletin (italic) volume number (issue
number), page number. If in the magazine/journal/bulletin, the page numbering is not in
order (every issue shall be begun by page 1), then the issue number is necessarily
stated.
Example:
Fry,L.W., & Slocum, J.W. Jr., 1984, Technology, Structure, and Workgroup
Effectiveness: A Test of a Contingency Model. Academy of Management Journal, 21:
221-246
Goggin, W.C. 1974, How Multidimensional Structure Works at Dow Corning, Harvard
Business Review, 55(1): 54-65

If the journal article has no author, the writing shall be as follows:

Biro Pusat Statistik, 2004, Laju Inflasi bisa Disebabkan oleh Kenaikan Populasi,
September, 24:14.
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2.3.1.3 Chapter in a book

The rules of writing shall be: Authors Last Name, Initial, year of publication, In
Editor, and the Last Name (Eds), Book Title: page, City or Country of Publication (if
necessary): publisher.
Example:
Berg, N.A. 1973, Corporate Role in Diversified Companies. In B. Taylor & I.
MacMillan (Eds.), Business Policy: Teaching and research: 298-347, New York:
Wiley.

Roberts, F.S., 1976, Strategy for the Energy Crisis: The Case of Computer
Transportation Policy, In R. Axelrod (Ed.) Structure of Decision: 142-147, Princeton,
NJ: Princeton University Press.

2.3.1.4 Source of translation quote

Format : author, Book Title, (translation), translators name, place of publication,
publisher, year of publication.

Apple, J., Tataletak Pabrik dan Pemindahan Bahan (Plant Arrangement and Material
Movement, (translation), N. Mamun, Bandung: ITB Publisher, 1990.

2.3.1.5 Other sources

In the event of unknown author, the method of bibliographical writing shall follow the
guidance of writing for companys author.

Interview
If the interview is used as reference, please use the name of one interviewed placed at
the position of author, followed by Personal Interview by (insert the name of
interviewer) placed at title position, place, and interview date.
Example:
Fireman, Paul. Personal Interview by Joan C. Tonn. Boston, MA: 22 October 2002.
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Unpublished document
Format: authors name (if known), date of document making (if known), full title of the
document; the words unpublished document.
Example:
Tonn, J. C.,1999, syllabus MM 6303, unpublished document.
Perencanaan Lima Tahunan Perusahaan XYZ (A Five Year Plan of XYZ Company),
unpublished document.

On-line sources
If the on-line sources, such as on-line magazines are taken as reference, then following
shall be stated:
a. authors last name and initial
b. year
c. article or document title
d. publication name (in the event it is an article or publication)
e. date (in the event of no date, please state n.d. no date)
f. volume number (if any)
g. issue number in the bracket (if any), in the event of any volume number
h. page number (if available)
i. date of quote taken
j. complete web address or URL.

The name of URL (Uniform Resource Locator) would be better as complete as possible
until its web page, thereby the reader may visit the site concerned.
Example:
Kharif, O., 2003, Cellular carriers under siege. Business Week Online, March 18.
Available from
http://businessweek.com/technology/content/mar2003/tc20030318_0236tc106.htm
[Accessed on 20 March 2003].
Zunitch, V.M. 2003, Businesses in transition, Journal of Accountancy, March, 1995
(3). Available from http://www.aicpa.org./pubs/jofa/mar2003/zunitch.htm [Accessed
on 17 March 2003].
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In the event the authors name is unknown, please use the journal or magazine title
serving as author.
Example:
The Economist, 2003, In search of those elusive returns, 20 March. Available from
http://economist.com/finance/displayStory.cfm?story_id=1649643 [Accessed on 21
March 2003].

The sources obtained from internet may be an independent article, not periodic
publication, may be no authors name, the writing may be seen in the following
example:
Austin, A.H., n.d. The Electronics Industry, 1947-1997, Available from
http://www.geocities.com/econhist/html [Accessed on 21 June 2007].
Departemen Tenaga Kerja Republik Indonesia, n.d. Hukum Ketenagakerjaan di
Indonesia. Available from http://www.Naker.go/UU2003/whd/fair.pdf [Accessed on
23 May 2003].
Yahoo.com, 2003, Verizon Communication profile. Available from
http://finance.yahoo.com/index.asp [Accessed on 21 September 2003].

2.3.2 Appendix
The Appendix is useful to keep information explaining or detailing any main parts of a
writing to help any readers requiring additional information; text of a document,
regulation, and that gives description for the text; very long list, questionnaire, or even
the map, chart and table.

An appendix may consist of some matters, amongst others, likely containing additional
information, the example of calculation, raw data, table, figure and so on, if they are
inserted in the Final Project narration, they will disturb the smoothness of presentation.
Each appendix shall be given capital letter A, B, C, and so on, and for sub-appendices,
if any, number in the form of numerals 1,2,3, and so on, and titled.

The appendix shall be preceded by one page containing only the word APPENDIX in
the central of the page. No number is given in this page.
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CHAPTER 3 MAIN REPORT

Business issues could often not be defined effectively. Such issues are called as ill-
defined if its cause and impact could not be acknowledged clearly. Meanwhile,
concerning with well-defined issues, we have already known well what causes the
matters and impacts for the company. The followings are steps conducted in solving
activity problem for the ill-defined matters:
1. To understand developed business issue and to develop plans in order to find
out the issues.
2. To find out the root of issues causing the above mentioned issues.
3. To develop several alternative solutions in solving the issues
4. To conduct comprehensive analysis including criteria determinant to choose
optimal solution and to prove that the selected solution could solved the above
issues
5. To develop implementation plan for selected solution, and also its controlling
and evaluation system.

If the above mentioned steps are fulfilled in business report, then the report should
contain four main parts, which are1:
1. Introduction
2. Business issue exploration
3. Business solution
4. Conclusion and Implementation Plan

3.1. Introduction
Introduction Part is commenced with description regarding on how the student firstly
obtains business assignment as his latest project topic. Then, it continues with sub-part
of company short profile as the focus of the latest project containing (1) Companys
history, (2) Scope of business field undergone by the company, (3) description
regarding to the working unit or subsidiary as the unit of analysis in the recent project

1
For well-defined issues, the part regarding business issue exploration may be excluded. However, in
introduction section, the business issue should be clearly described and explained.
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and (4) business issue faced by such unit. These four parts are sub-chapters in Chapter
1. For example: sub-chapter 1.1.1. History of company, 1.1.2 Scope of business field
and so forth. For well-defined issues, the part regarding business issue should contain
in detail regarding any issues to face, the causing factor arising the issues and the
impact suffered by the company at the current time and its prediction in the future.

3.2. Exploration of business issue

In this part, student attempts to find out factors so assumed to be the root of business
issue. Such factors form conceptual framework of his/her final project. By analyzing
factors found in such conceptual framework, the student could identify one or several
significant factors affecting the business issues. Description concerning conceptual
framework and analysis is described as follows.

3.2.1. Conceptual framework

In this part, student develops conceptual framework that may assist them to find root of
issues. Good criteria of conceptual framework is to have balance rigor and relevance, it
means that:
- to have sufficient foundation or concept, and
- to be relevant with the business context
Determinant of rigor and relevance of a conceptual framework is discussed in each
expertise group in accordance with the conducted topic. As the guidance, conceptual
framework often contains several parts regarding internal condition of the company,
industrial situation, competitive condition, customer profile and attitude, supplier,
procurement of substitute product, communication system and marketing line and such
other several factors in macro level such as infrastructure, economic condition,
regulation and politic. The example of conceptual framework may be seen in the
Appendix B6.

3.2.2. Analysis of business situation

After developing conceptual framework, student is required to analyze every factor
contained in conceptual framework. These detail factors would assist any readers to
conceive business situation of relevant company/industry. In order to improve
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reliability of its description, student should explain the required data base and method.
The example may be seen in Appendix B7.

3.2.3. Root of problem

In the end of this part, there would be a part constituting entire analysis as the result of
exploration processes which concludes the main cause(s) of the business problem. If
there are several main factors causing the problem, then student may focuses on their
Final Project in one or several factors. This matter should be expressed explicitly in this
part. One of tools that are often used to find out the root of the problems is the cause-
effect diagram or fish bone diagram.

3.3. Business Solution

To determine the business solution, several alternatives are developed to be then
analyzed in determining one optimal solution for the Companys business issue. The
students may not necessarily analyze the solution alternatives one by one, but he/she
could directly focus on one business solution and then analyze the possibilities that the
solution could address the issue that is being faced by the company.

3.3.1. Alternative of business solution

After finding the main cause(s) of the business issue, student is required to develop
alternatives of business solution that, according to them, may resolve the issue. In
demonstrating their creativity to settle the issue, student is required to identify as many
potential alternatives, not only alternatives that have most potential to be applied.
Through this way, there are several advantages such as:
- to develop imaginative intelligence
- to grow openness and confidence attitudes
- to develop realistic thought
The examples may be seen in Appendix B8.

3.3.2. Analysis of business solution

Among the identified alternatives, there are several alternatives considered as the most
potential one to be applied. Student is required to provide the reason(s) why other
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alternatives are considered not to be potential. From those potential alternatives, one
alternative would be selected to be as the most optimal for the condition of
company/industry, by analyzing one by one such potential alternative. The process for
choosing the optimal solution should be effectively explained. Data, assumptions,
criteria, calculation, argumentation and other analyses (e.g. stakeholder value analysis)
must be elaborated. The reason of the use of certain analysis technique should also be
explained briefly (for example, why analysis of Net Present Value is used rather than
Payback Period). Managerial implication of the chosen alternative must be also
mentioned in this part.

3.4. Conclusion and Implementation Plan

3.4.1. Conclusion
This part provides a short summary concluding the business solutions
and previous sections including key findings/recommendations that will
be followed up with an implementation plan.

3.4.2. Implementation plan

One solution should have implementation plan so that it will give real impact for the
company. In the implementation plan, the followings are explained:
- activities that should be conducted and their correlation to each other
- person or unit who is responsible for conducting these activities
- timeframe of the activities
- flow of information, goods and money in each activity
The flow diagram and standard in project management arrangement could be helpful in
presenting the above.

In the implementation plan, various resource requirements to implement business

solution are also explained. This may include human resources, technology, finance and
other.
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APPENDICES
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Appendix A1. An example of a figure.

Key to roof / correlation

+ -
matrix symbols -
+ Positive / Supporting -
- Negative / Tradeoff
+ +
-

DIRECTION OF IMPROVEMENT
Performance Size of Technical
TECHNICAL PLANNING MATRIX
measures range details
REQUIREMENTS

CUSTOMER
REQUIREMENTS

Easy to put on 2 3 3 4 4 1.2 1.1 2.6 7

Comfortable when hanging 5 4 4 2 5 1.2 1.4 8.4 22

Fits over different clothes 1 1 1 5 2 1.2 1.0 1.2 3

Accessible gear loops 3 3 4 1 3 1.0 1.0 3.0 8

Does not restrict movement 5 2 2 3 5 1.6 1.4 11.2 29

Lightweight 3 3 2 5 3 1.0 1.0 3.0 8

Safe 5 4 3 3 4 1.0 1.2 6.0 16

Attractive 2 2 2 5 3 1.2 1.1 2.6 7

TECHNICAL PRIORITIES 54 81.2 63 23.4 70.2 191.6 98.6 30 612 Total (100%) 38

PERCENTAGE OF TOTAL 9 13 10 4 12 31 16 5

Our product Y 174g 250 5 4 4mm 1 4 Key to interrelationship matrix symbols

Competitor A's product Y 193g 321 3 5 8mm 4 5 Strong interrelationship

Competitor B's product Y 157g 198 6 4 3mm 1 3 Medium interreltionship

DESIGN TARGETS Y 160g 250 8 6 4mm 2 4 Weak interrelationship

Figure 3.1. Matrix of House of Quality for rock climbing harness (Lowe, 2000:n.d)
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Appendix A2. Examples of a table

Table 3.14. Sensitivity analysis using simple model
Variable The highest Variable Profit % profit Variable
estimation increase (Rp) change rank
value 5%
Sale (unit) 15.000 15.750 82.500 10 3
Price (Rp./unit) 40 42 105.000 40 1
Variable cost
(Rp./unit)
Raw material 5 5,25 71.250 -5 4
Others 20 21 60.000 -20 2
Fixed price (Rp) 150.000 157.500 67.500 -10 3

Table 6. Sinking fund depreciation, book value, and capital recovery plus return
Ended Depreciation Book value Return on Capital
Year (t) (Capital (capital capital recovered plus
Recovered, Dt) unrecovered, Bt) unrecovered return (Dt +iBt-1)
(iBt-1)
0 $10.500,00
1 $1.296,07 9.203,93 $1.050,00 $2.346,07
2 1.425,68 7.778,25 920,39 2.346,07
3 1.568,25 6.210,00 777,82 2.346,07
4 1.725,07 4.484,92 621,00 2.346,07
5 1.897,58 2.487,34 448,49 2.346,07
6 2.087,34 500,00 258,73 2.346,07

20

And so forth until in the top of the pages

In the following pages,

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Table 6. Sinking fund depreciation (continued)

Ended Depreciation Book Value Return on Capital
year (t) (Capital (capital capital recovered plus
Recovered, Dt) unrecovered, Bt) unrecovered return (Dt +iBt-1)
(iBt-1)
21
22
23
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Appendix B1. An example of a final project reports cover

HUMAN RESOURCE AUDIT AS THE GROUND FOR THE

DEVELOPMENT OF EMPLOYEE COMPETENCE IN PT XYZ

FINAL PROJECT

By:
Markus Handianto
NIM : 29104001

Master of Business Administration Program

School of Business and Management
Institut Teknologi Bandung
2004
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Appendix B2. Sample abstract

SUGGESTED PLANS FOR DESIGN OF BALANCED SCORECARD FOR

PT WINTAI GARMENT

DANY AKHMAD FAJRI

NIM: 24103202

Date of Passing of Final Test (1/2/2005)

Date of Graduation Ceremony (3/5/2005)
Master of Business Administration Program,
Institut Teknologi Bandung, 2005
Final Project Counsellor: Dr. Ir. Dermawan Wibisono, M. Eng.

ABSTRACT

Business environment has changed a lot lately, and competition is getting as fierce as ever. The
global competitive pressure has changed the nature of economy, causing changes in methods of
operation in industries. Faced with these conditions, the company must be able to survive and
win the competition by performing measurements which include all aspects that are future-
oriented.

This problem can be solved by performing a comprehensive measurement which includes these
four perspective, i.e. the financial perspective, the customer perspective, the internal business
processes perspective, and the learning and growth perspective called the Balanced Scorecard
(BSC). Measurement using the Balanced Scorecard is able to guide and evaluate work
performance in creating a value in the future through investment in the customer, the staff, and
in technological advantages.

This final assignment is focused on the designing of a system which measures performance for
use at PT Wintai Garment, a garment business in the manufacture of socks, using the Balanced
Scorecard method. The Vision and the Mission are the stepping stones in performing the
measurement, where this Vision and Mission is interpreted in the perspective objectives. The
next step is to determine a useful success yardstick in order to find out if the set objectives can
be achieved according to the target. Existing objectives for all perspectives is a link in the
cause-and-effect chain wherein the top of these relations is the financial objective.

The research done has resulted in the design of a Balanced Scorecard and the measurement of
company performance that can be applied by PT Wintai Garment, which is hoped to be able to
increase the productivity of the company, increase and develop internal processes, and
 33/41

encourage a willingness to learn and grow, which would improve the performance of the
employees.

The implementation of the Balanced Scorecard is begun by the role and responsibility of the
top management, the efforts at socialization, and the participation of all staff and employees.
The feedback pattern in the Balanced Scorecard concept makes the strategic learning of PT
Wintai Garment becomes fuller, so that the structured, continuous improvement runs smoothly.

Keywords: performance measurement system, Balanced Scorecard, feedback pattern

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Appendix B3. Sample validation page

HUMAN RESOURCE AUDIT AS BASE OF DEVELOPING EMPLOYEE

COMPETENCE AT PT XYZ

By:
MARKUS HANDIANTO
NIM: 29104001

Master of Business Administration Program

Business Leadership/Sharia Banking and Finance/Entrepreneurship*

Approving,

Counsellor
Dated on 8 May 2006

Ir. Nurhajati Mamun, MSc

NIP:..

*choose your concentration program

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Appendix B4. Sample of acknowledgement

ACKNOWLEDGMENT

Words of gratitude doth the author send to Illahi Robbi, for it is by His Grace this final
assignment, one of the conditions to finishing studies at the Master of Business
Administration Program at the Institut Teknologi Bandung, can be completed.

It is hoped that the results of this research can provide information on the perceptions
and expectations of the community to the Savings Account and Fixed Deposit products
of PT Bank Niaga,Tbk., Bandung branch, i.e. knowing each characteristic community
existing and their tendencies in choosing Savings Account and Fixed Deposit products,
especially at PT.Bank Niaga Tbk.

On this opportunity, the author would like to state his/her thanks to Mr. Dr. Reza
Ashari Nasution as his/her counsellor, Ms. Lysse Nurpriatnawati as field guide at
PT.Bank Niaga, Tbk., and to the Parents and Siblings for all of their support and
prayers.

Critiques and suggestions for the perfection of this research are highly sought and it is
hoped that the research will be beneficial for those who needs it.

Bandung, August 2006

The Author
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Appendix B5. Sample table of contents

TABLE OF CONTENTS

ABSTRAK .......................................................................................................................... i
ABSTRACT ........................................................................................................................ ii
VALIDATION PAGE ........................................................................................................ iii
ACKNOWLEDGEMENT ...................................................................................................iv
TABLE OF CONTENTS ......................................................................................................v
LIST OF FIGURES .............................................................................................................vi
LIST OF TABLES ............................................................................................................ vii
LIST OF APPENDICES ................................................................................................... viii
Chapter 1 Introduction ............................................................................................. 1
1.1 Company Profile ................................................................................ 2
1.1.1 Etc. ........................................................................................... 4
Chapter 2 Business Issue Exploration .................................................................... 25
Chapter 3 Business Solutions ................................................................................ 36
Chapter 4 Conclusion and Implementation Plan .................................................... 51
REFERENCES .................................................................................................................... 57
APPENDICES..................................................................................................................... 59
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Appendix B6. Sample conceptual framework

3.3.1. Formulating the map of conceptual thought2

In this final project, the early base of thought formulated refers to the marketing of gold
jewellery products. The factors which influence the marketing of gold jewellery
products are determined, and then described, individually, so that the following map of
conceptual thought is formed:

Product Gold Price

Design

Marketing of
Gold Jewellery
Competition
Products Time of
Launching

Product Ads and

Distribution Promotions

Figure 3.3.1. Map scheme of conceptual thought

The above factors are determined through interviews with the management and by
conducting a bibliothical study regarding factors which influence the marketing of a
certain product.

2
Taken from the Final Assignment of Frida Maya Perdani (29104324): Consurmer Preference for the
Design of Gold Necklace in Bandung and its Surrounding Areas
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Appendix B7. Sample of business situation analysis

Customer needs
Customers who use travel agents with shuttle service are customers who want to
conduct a trip to the Soekarno Hatta Airport, both a working (business) trip, a holiday
trip, or a trip for personal purposes. At the moment, travel agents play a rather
important role in the community in providing convenience in managing trips to the
Soekarno Hatta Airport.

Based on the data obtained from the Department of Transportation, there has been an
an increase of the number of users of both domestic and international airlines from the
years 1999 to 2006. This increase is predicted to continue until the year 2010. It is
triggered by the ever-mushromming existence of low fares from each airline, thus
encouraging people, especially in Bandung, to travel using airplanes.

The increase in the number of airline users, both domestic and international, is followed
with the increase in the number of passengers from outside of Jakarta, especially from
Bandung, going to the Airport.

Service providers
Satisfying the ever-increasing consumer needs in travelling from Bandung to the
Airport can be done in various ways, i.e. using either public transport or private
vehicles. The following Figure 1.1. depicts the generic needs of consumers going from
Bandung to the Airport.
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PRODUCT MARKET STRUCTURE

Generic Needs Bepergian dari Bandung ke

Bandara Soekarno Hatta

Product Type Kendaraan Umum Kendaraan Pribadi

Kereta Api Angkutan Darat Pesawat

Perusahaan Sewa
Travel Agent Bus AKAP
Mobil

Cipaganti Buah Batu Trijaya

Revin Budi Jaya Citra

X-Trans PO Primajasa Dll

Figure 1.1. Product market structure for the travel industry

From Figure 1.1, it can be seen that in order for consumer need to travel to the Airport
to be satisfied, either public transport or private vehicles can be used. On observing the
present conditions, the tendency of people travelling from Bandung to the Soekarno
Hatta Airport is to use public transport.

The characteristics of people using personal vehicles are usually people who go on
holiday trips with their families, possessing a personal chauffeur, and/or carrying a lot
of luggage. Meanwhile the characteristics of people using public transport are those
who go on a business trip, or other personal business, such as a personal holiday,
returning to the hometown; who do not have personal vehicles; who need practicality of
cost and vehicles; and/or free to take a trip at any time.
[The following part is omitted]

Competition in the travel section

Ever-harsher competition arises among travel agents who depend on their services and
vehicular fleets. The prices offered become highly competitive. The vehicular fleets
 40/41

are upgraded to the latest thing, the interiors become ever more luxurious, the hours of
departure are added there is even a guarantee that the departure shall hold even if
there is only one single passenger embarking. These are the benefits that each travel
agent touts.

There are two systems used for travelling to the Airport: Door to Point and Point to
Point. Door to point means that the passenger is picked up from their respective
homes and then conveyed to the Airport. Point to Point means that the travel agent
provides a common site for pooling departing passengers, who are then conveyed
directly to the Airport in other words, the passengers are not picked up at their homes.

The harshest competition faced by travel agents currently providing shuttle service,
especially by PT X, is the existence of PT Y as the latest competitor. PT Y was
established in September 2006. It uses bus fleets manufactured in 2006, with seat
capacity of 36. The added value of PT Y is that the price offered is 50% cheaper than
that offered by other travel agents complete with comfortable seats, television sets,
and clean toilets in the bus. For ticket reservation, PT Y has also provided a
comfortable lounge at one of malls of Bandung and another at Soekarno Hatta Airport
itself. The departure system of PT Y is Point to Point, with hourly departures. These
are the things which cause many consumers to discontinue their patronage from their
usual travel agent to patronising PT Y. The existence of PT Y certainly drastically
reduces the income of travel agents to the extent that several shuttle service travel
agents abandon their Bandung-Jakarta routes, and some even closed down.

For that reason, with such existing business challenge, PT X is forced to execute new
strategies so that the company can withstand the competition. This strategy is created
so that PT X minimal can at least hold is own as a travel agent in comparison to similar
travel agents which operate using minibuses.
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Appendix B8. Sample of business solution alternatives

According to Nirmalya Kumar, in her article, Strategies to Fight Low-Cost Rivals, in

the Harvard Review, when a new player comes in as a low-cost player, there are three
strategies which the company can choose to do. The first is when a company applies
premium price for its products: the company can differentiate by providing an added
value or extra benefit without participating in low-fare competition. The second is
when a company which has a strong brand and image wants to participate in the low-
cost business: the company can create an SBU (Strategic Business Unit) and apply low
cost on that business unit. The third choice is to jump in directly as a low-cost player.
The following is Nirmalya Kumars strategic choices in facing a low-cost competitor:

Figure 3.1Decision tree in facing competitors

(Source: Kumar, 2006)