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Strategy Development to Increase Global Competitiveness of PT. APAC INTI CORPORA

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This thesis evaluates the performance of PT. APAC INTI CORPORA (AIC) and recommends the strategy plan to boost its competitiveness in globalization era. Global competitiveness of Indonesian textile industry in general is endangered by high production cost which compromises the increased interest on money, inefficient labor but increasing labor cost, high power cost as most industries dependence on fuel while fuel cost is high due to a bad infrastructure in power generation, unstable political and government, and no new investment in technology and innovation. Other problems involve the increasing competition from other large countries and problems insufficiently in internal efficiency.nHubbard ([6]: p 7) clarifies that the fast changing environment makes current strategy no longer consistent with the needs of the environment and some of its capabilities are inappropriate and insufficient for the future. The primary purpose of this research paper is to determine to what extend AIC can improve its competitive position in global market through strategic change. The programs involved in the evaluation of the possible changes for the company in order to stay competitive and sustain its corporate importance in the textile industry in Asia. A second purpose of this research paper is to examine how to improve the efficiency and effectiveness of the organization through meticulous and planned innovative ideas. The final purpose is to recommend ways to improve human resources to maximize the organization's value.nBy doing this research we want to show the importance of strategic change and flexibility to adapt to global competition for huge bureaucracy corporation to sustain and improve its competitive advantage. This will show the hope for Indonesian companies in spite of all limitations above. They still have a potential to compete with aggressive competitors, like China, India, Turkey, etc through undergoing some changes to survive in the long run.nThis thesis will analyze the industry dynamics and development process of strategy to sustain growth in a highly competitive market in textile industry. AIC is a well-known manufacturer that operates in textile and product textile for almost 15 years. While, many textile companies goes bankrupt in the very volatile competitive era, AIC is able to survive and operate normally although there is still struggling with aggressive competitors in the same industry, such as China, India and Pakistan. It also has to deal with unstable infrastructure in the country, Indonesia. nThe methodology being used in this thesis combines qualitative and quantitative studies, where the qualities cover a comprehensive review and observation on the external factor by analyzing industry and competitor situation, market situation, and environmental situation. It also encompasses internal factors by analyzing financial situation of the company, and using the SWOT Analysis, General internal Analysis and Core competence assessment. As the result, these will generate the best strategic recommendation to be implemented by the company. For the quantitative part, it includes the utilization of bivariate statistical analysis by using statistical coefficient of correlation and performing t-test method. nThe conclusion of this research is that the competitive strategies for AIC are to establish a pilot plan for new product development project, create high sense of belonging and customer oriented culture, optimize the company's existing system, establish/enhance a consistency, increase discipline, and drive in a work place, optimize the machinery maintenance, and implement Customer Relationship Management (CRM) program. These all will sustain the growth of AIC in the highly competitive market and stay ahead over its competitors. Finally, the result of this research and recommendation of strategy plan can be directly applied in the company.

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M00109

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Series Title

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Call Number

109

Publisher

: Swiss German University., 2006

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Language

English

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Subject(s)

MBA

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