Universitas Indonesia Conferences, Asia Pacific Business and Economics Conference

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Strategy and Feasibility Study in Financial Segment for Property Business (Case Study KSO XYZ)
Nadia Anindita, Edward Tanujaya

Last modified: 2018-01-15

Abstract


This research talk about KSO XYZ problems related to the low level of residence sales which cause declining performance of KSO XYZ, in relation to the problems, the purpose of this research is analyzing which business strategy suitable for KSO XYZ to increase their performance. Then, this research analyzes feasibility of business strategy implementation to identify whether in financial scope the project is feasible or not to be executed. This research implement PESTEL theory to analyze external factor which influence business strategy, Five Porter’s Forces theory to identify competition faced by KSO XYZ, Five Generic Competitive Strategies option to identify which strategy suitable for KSO XYZ, and IRR and NPV theory to identify feasibility of the business in financial segment. From the analysis, suitable strategy to be implemented by KSO XYZ is low-cost strategy with IRR 17,9% and NPV Rp12.769 million with 3 years project execution and IRR 16,4% and NPV Rp16.184 million with 5 years project execution. IRR for project in 5 years is lower than project in 3 years because KSO XYZ receives cash flow in a longer time, however NPV is higher because it is affected by the increase of property price. Therefore, this research conclude that the project is feasible to be executed with several advice, which will support an increase of sales, such as change of site plan for home store, change of design for the large type of house, and also restructuring of competent human resource.

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