Analysis Report PPM Regional Business Case

Competition
TIGA PILAR CORPORATION:
A Journey to Greatness
Written by :
Haris Suhendra, Pramita Wardani, William Andrew

Case Framework
1

Situation
Situation
Problem
Problem
Analysis
Analysis
Company
Profile
(Corporate
TPC
TPC
Profile, &
Combination
Combination
BUs
ss of
of
TPS
TPS
Profile).
Food
Food
Balance
Balance
Problem
Problem

TPS
TPS
d
d
Identificati
Identificati
Corporat
Agro
Agro
e
on
on
Scoreca
Scoreca
TPS
TPS
Performa
Tradi
Tradi
rd
rd +
+
nce
ng
ng
SWOT
SWOT
TPS
TPS
Good
Ventu
Ventu
Corporat
re
re
e
Governan
Indonesias
Indonesias Economic
Economic Landscape
Landscape
ce

4
Recomme
Recomme
n-dation
n-dation

Strateg
Strateg
y
y
Recommend
Recommend
ation
ation

Indonesias Economic Landscape

Macro Economic
Indicator

Data

Macro Economic Indicator

Data

Net Capital Inflow (Million)

22.64

Economic Growth

7%

3600

Indonesias Income Per capita

projection 2030 (US$)

10,00
0

8500

Economic Growth (ASEAN)

6,9%

Population

240 million

GDP growth (%)

6,5 %

GDP per capita (US

$)
Exchange rate per
US$

The
Fourth
Cluster
Poverty
Rate
14,6% Driving Growth : food and beverages
industry. Textiles, textile products, and footwear industry,
electronics
and
electronic
components
industry,
and
transportation equipments and automotive components industry.

Situations of TPC
TPC is one of Indonesias most respected
food producers
TPC has a huge amount of assets
TPC use Acquisition Strategy to expand
their business
TPC has become a holding company in
2010
TPS Academy as the source of companys
knowledge

Problem Identification
Strugglin
g to
Synergiz
TPC has been the
e company to
holding
the four BUs.

Distributio
n Channel
Duplicatio
Overlapping
n
function between
TPC and TPS
Trading.

Negative
Net Profit
Growth
TPS Venture
average net profit
growth : - 68.77%.

Small
Market
Shares

Underutili
zed assets

TPS Food instant

noodle market share :
< 4%

TPS Agro land

property utilization :
14,89%

How do we analyze

Framework Analysis

We call it BSWOT
SWOT
Balanced
Scorecard

Source :
http://www.tvk.se/templ/page____107.aspx

Recommendations
2.Stabilize
Stabilize
2.
Strategy to
Strategy
stabilizetothe
stabilize
the
profit
profit

1.Synergize
Synergize
1.
Strategy to
Strategy
tothe
synergize
synergize
the
company
company

We Called

PANCAN
AKA
Strategy

3.
3.
Strategy to
Centraliz
Strategy
tothe
centralize
Centraliz
centralize
the
distribution
distribution
ee

4.

4.

Strategy to
Strategy
to
Win
win the
Win
win the
market
market

5.
5.
Strategy to
Strategy
Profit
increasetothe
Profit
increase
the
profit
profit

Recommendation (1)
1. Strategy to synergize the company

Source : Alignment (Robert S. Kaplan and David P.

Norton)

Recommendation (1)
1. Strategy to synergize the company

TPC
TPC

Food
TPS Agro

TPS Food

Business
Unit

TPS
Food

TPS
Agro

Ener
TPS
TPS
Trading gy
Venture

TPS
Tradi
ng

Business Group under TPC

Business
Unit

TPS
Ventur
e

Recommendation (2)
2. Strategy to stabilize the profit

We will give more attention to the TPS Venture.

1. Reduce Cost of Goods

Sold
2. Focus on Energy Business
3. Finding Strategic
Partnership

Recommendation (3)
3. Strategy to Centralize the
Distribution

3.
Recommendation
Strategy
to
Centralize
the
Distributio
n

(3)

Warehouse
Sub-District
Coverage Area

Warehouse
Sub-District
Coverage Area

Warehouse
Sub-District
Coverage Area

Warehouse
Sub-District
Coverage Area

Warehouse
Sub-District
Coverage Area

Warehouse
Sub-District
Coverage Area

Wareho
use
Wareho
Regenc
use
Regency
yCovera
ge Area
Covera

Warehouse
Sub-District
Coverage Area

Warehouse
Sub-District
Coverage Area

Warehouse
Sub-District
Coverage Area

Warehouse
Sub-District
Coverage Area

ge Area

Warehouse
Sub-District
Coverage Area

Warehouse
Sub-District
Coverage Area

Warehouse
Sub-District
Coverage Area

Warehouse
Sub-District
Coverage Area

Wareho
use
Wareho
Regenc
use
Regency
yCovera
ge Area
Covera

Warehouse
Sub-District
Coverage Area
Warehouse
Sub-District
Coverage Area

ge Area
Warehouse
Sub-District
Coverage Area
Warehouse
Sub-District
Coverage Area

Warehou
se
Warehou
Provinci
se
al
Provinci
Coverag
al
e Area
Coverag
e Area

RD
RegionalRD
Distribution Center
C
C

Warehou
se
Warehou
Provinci
se
al
Provinci
Coverag
al
e Area
Coverag
e Area

Warehou
se
Warehou
Provinci
se
al
Provinci
Coverag
al
e Area
Coverag
e Area

Warehouse
Sub-District
Coverage Area

Warehouse
Sub-District
Coverage Area
Warehouse
Sub-District
Coverage Area

Warehouse
Sub-District
Coverage Area

Wareho
use
Wareho
Regenc
use
Regency
yCovera
ge Area
Covera
ge Area

Warehouse
Sub-District
Coverage Area
Warehouse
Sub-District
Coverage Area

Wareho
use
Wareho
Regenc
use
Regency
yCovera
ge Area
Covera

Warehouse
Sub-District
Coverage Area
Warehouse
Sub-District
Coverage Area

ge Area
Warehouse
Sub-District
Coverage Area
Warehouse
Sub-District
Coverage Area

Warehouse
Sub-District
Coverage Area
Warehouse
Sub-District
Coverage Area

Warehouse
Sub-District
Coverage Area
Warehouse
Sub-District
Coverage Area

Warehouse
Sub-District
Coverage Area

Warehouse
Sub-District
Coverage Area
Warehouse
Sub-District
Coverage Area

Warehouse
Sub-District
Coverage Area

Warehou
se
Warehou
Provinci
se
al
Provinci
Coverag
al
e Area
Coverag
e Area

Warehouse
Sub-District
Coverage Area

Warehouse
Sub-District
Coverage Area

Warehouse
Sub-District
Coverage Area

Warehouse
Sub-District
Coverage Area

Recommendation (3)
Regional Distribution Center
(RDC)
- Zoning System -

Recommendation (4)
4. Strategy to win the market
TPS Food area :

TPS Agro area :

Haha
Haha Mie
Mie could
could be
be
more
more focused
focused on
on
childrens
childrens market
market
segment
segment

Utilizing
Utilizing Palm
Palm
plantations
plantations by
by
maximizing
maximizing the
the palm
palm
lands
lands

For
For Bihunku
Bihunku we
we invent
invent
new
new variant
variant products
products
such
such as
as Bihun
Bihun Healthy
Healthy
Diet
Diet or
or Bihun
Bihun High
High
Calcium.
Calcium.

Increase
Increase net
net sales
sales growth
growth
yearly
yearly by
by reduce
reduce
operating
operating expenses
expenses

Use
Use 360-degree
360-degree
Communication
Communication
Strategy
Strategy

Expand
Expand the
the cassava,
cassava,
sago
sago and
and spirulina
spirulina
businesses
businesses from
from
downstream
downstream to
to
mainstream
mainstream

Recommendation (5)
5. Strategy to increase the profit
TPS Food area :
Reduce
operational
costs
Boost up sales
(aggressive
marketing)
Innovative
products

TPS Agro area :

Reduce costs by
decreasing COGS
Boost up sales
(aggressive
marketing)
Increase net
sales growth by
reducing
operational
expenses

Sangkan Paraning
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