Analysis of Effective Budgeting and Paving Block Business Improvement Strategies in PD Telaga Jaya Blok, Tangerang

Abstract

The intense competition situation in paving block industry, especially in Tangerang district has forced PD Telaga Jaya Paving Block company to keep continue improving its product quality in accordance with quality standard. Quality control supervision activities need to be done in order to produce good products. The increasing effectiveness will enable the company to work with less working capital. The objectives of this study were (1) to analyze the quality of paving block in accordance with quality standard, (2) to analyze the effective cost of paving block production (3) to analyze business development strategies of PD Telaga Jaya Block. The data collecting was done by direct observation on supply process and production process, and interviewing the owner, the manager, and the head of production department of PD Telaga Jaya Block. The data were analyzed by descriptive method, profitability ratio method, Internal Factor Evaluation (IFE) and External Factor Evaluation (EFE) matrix, Internal External (IE) SWOT matrix and QSPM in order to get the most suitable alternative strategy for the business development. Test result at Jasa Marga Laboratory Tangerang District showed that the quality of paving block, kanstin, and bishop produced by PD Telaga Jaya Block conform to prevailing quality standard at Tangerang District and SNI (Indonesian National Standard) 03-0691-1996. Paving block produced by PD Telaga jaya Block was classified into first class concrete quality or K-350, suitable for street construction. Based on IFE and EFE matrix analysis, PD Telaga Jaya Block had IFE score for 2,489 and EFE score of 2,447, which meaned that the company was able to use its internal strength to overcome its weaknesses and to give moderate response to external environment in exploiting the existing opportunities and avoid any threats to the company. Based on SWOT and QSPM matrix analysis the priority of alternative strategies were : (1)to maintain the selling price, (2) to increase the customer’s satisfaction on PD Telaga Jaya Block products, (3) to maintain and expand the marketing network, (4) to do an effective and efficient promotion, (5) to improve the employees’ performance, (6) to develop a subcontract pattern with the supplier, (7) to create the networking with others paving block producers (same scale and bigger scale ), (8) to maintain and improve the product quality, (9) to increase the efficiency of production cost and (10)to diversify company products Business development strategies of paving block that could be used were : (1) to keep selling price, (2) to improve the employees’ performance, (3) to get an agreement of subcontract model with the supplier, and (4) to maintain and improve the product quality.