Analysis Report PPM Regional Business Case CompetitionTIGA PILAR CORPORATION:A Journey to Greatness

Written by : Haris Suhendra, Pramita Wardani, William Andrew

Case Framework

Situation

• Company Profile (Corporate Profile, & BU’s Profile).

• Corporate Performance • Good Corporate Governance

Indonesia’s Economic Landscape

Problem Analysis Recommen-dation

1 2 3

TPC

TPS Food

TPS Agro

TPS Trading

TPS Venture

Combinations of

Balanced Scorecard + SWOT

Strategy Recommendation

4

Problem Identification

Macro Economic Indicator Data

Population 240 million

GDP growth (%) 6,5 %

GDP per capita (US $) 3600

Exchange rate per US$ 8500

Poverty Rate 14,6%

Macro Economic Indicator Data

Net Capital Inflow (Million) 22.64

Economic Growth 7 %

Indonesia’s Income Per capita projection 2030 (US$)

10,000

Economic Growth (ASEAN) 6,9%

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

Indonesia’s Economic Landscape

Situations of TPC

• TPC is one of Indonesia’s 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 company’s knowledge

Problem Identification

Negative Net Profit Growth

TPS Venture average net profit growth : - 68.77%.

Struggling to Synergize

TPC has been the holding company to the four BU’s.

Distribution Channel

DuplicationOverlapping function between TPC and TPS

Trading.

SmallMarket Shares

TPS Food instant noodle market share : < 4%

Underutilized assets

TPS Agro land property utilization : 14,89%

How do we analyze it

Balanced Scorecard

SWOT

We call it BSWOT…

Framework Analysis

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

2. StabilizeStrategy to

stabilize the profit

3. CentralizeStrategy to centralize

the distribution

5. ProfitStrategy to increase

the profit

Strategy to synergize the company

1. Synergize4. Win

Strategy to win

the market

Recommendations

We Called

PANCANAKA Strategy…

1. Strategy to synergize the company

Recommendation (1)

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

Business Group under TPC

TPC

TPS Food TPS Agro TPS Trading TPS Venture

TPC

Food Business Unit

TPS Food

TPS Agro

TPS Trading

Energy Business Unit

TPS Venture

1. Strategy to synergize the company

Recommendation (1)

1. Reduce Cost of Goods Sold

2. Focus on Energy Business

3. Finding Strategic Partnership

2. Strategy to stabilize the profit

Recommendation (2)

We will give more attention to the TPS Venture.

3. Strategy to Centralize the Distribution

Recommendation (3)

3. Strategy to Centralize the Distribution

Regional Distribution CenterRDCWarehouse Provincial Coverage

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Warehouse Provincial Coverage

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Recommendation (3)

Recommendation (3)

Regional Distribution Center (RDC)- Zoning System -

Haha Mie could be more focused on children’s market segment

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

4. Strategy to win the market

Recommendation (4)

TPS Food area :

Utilizing Palm plantations by maximizing the palm lands

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

Increase net sales growth yearly by reduce operating expenses

Use 360-degree Communication Strategy

TPS Agro area :

Reduce operational costs

Boost up sales (aggressive marketing)

5. Strategy to increase the profit

Recommendation (5)

TPS Food area :

Reduce costs by decreasing COGS

Boost up sales (aggressive marketing)

Innovative productsIncrease net sales growth by reducing operational expenses

TPS Agro area :

“Sangkan Paraning Dumadi”