Efas Ifas Mustika Ratu

IFAS Weight Rating

STRENGTH

0.200 4

Mustika Ratu is a beauty product that specially for Indonesian skin 0.030 3

0.040 3

In mid-1996, Mustika Ratu established a direct selling division 0.030 2

0.020 3

0.005 2

0.070 3

Mustika Ratu had their own specialization plantations on Java 0.070 3

Mustika Ratu has Halal standard 0.070 2

Mustika Ratu used modern imported equipment 0.060 3

Controlled through a recently installed information technology (IT) system 0.010 2

Mustika Ratu focus on domestic market and protect the existing position 0.070 3

Quality control was a key part of the company’s product strategy 0.040 3

The promotion through a myriad of media and point of sale promotions 0.060 4

Sponsorship of several major beauty events 0.070 3

Concentrated on intensifying their departement store distribution channels 0.060 3

Muatika Ratu has a top selling of the company revenue 0.035 3

WEAKNESS

In 1998 the stock had declined dramatically 0.060 3

TOTAL 1

Mustika Ratu is a leading Indonesian manufacturer of cosmetics and traditional herbal supplements

Mustika Ratu used each of these channels to market their extensive products lines

Mustika Ratu had opened 14 “House of Mustika Ratu” outlets in major urban centres

Mustika Ratu had 4.000 agents, 1.300 beauty advisers and 40.000 retail outlets

Product of Mustika Ratu has made by health and beauty properties of local plants and herbs

0.8

0.09

0.12

0.06

0.06

0.01

0.21

0.21

0.14

0.18

0.02

0.21

0.12

0.24

0.21

0.18

0.105

0.18

3.145

Weighted Score

EFAS Weight Rating

OPPORTUNITY

0.07 2 0.14

0.17 3 0.51

Indonesia is a rich natural resources and agriculture 0.28 4 1.12

0.09 3 0.27

In Malaysia, Mustika ratu in doubling sales 0.07 3 0.21

0.05 2 0.1

0.04 2 0.08

THREATSThe Asian financial crisis had devasted the Indonesian economy 0.07 4 0.28

0.04 3 0.12

Close to half of Indonesia’s 200 banks were insolvent 0.06 3 0.18

The ranks of the unemployed swelled by thousands each day 0.06 4 0.24

TOTAL 1 3.25

Weighted Score

The political tensions running up to a parliamentary election June, along with the issue of sovereignty in some regions of the country were expected to manifest in continued social unrest

Population of Indonesia is over 210 million and Indonesia is the fourth most populus country in the world

In urban center, these market held the potential of more 100 milion Muslim consumer

Using a mail order distribution channel in Hongkong and Holland

The company’s web site invited distributors meeting certain criteria to form strategic alliance

Foreign direct investment (FDI) had dried up and the domestic bankruptcy rate increased dramatically

Weight Option 1

Rating

STRENGTH

0.100 4

Mustika Ratu is a beauty product that specially for Indonesian skin 0.015 3

0.020 3

In mid-1996, Mustika Ratu established a direct selling division 0.015 2

0.010 3

0.002 2

0.035 3

Mustika Ratu had their own specialization plantations on Java 0.035 3

Mustika Ratu has Halal standart 0.035 2

Mustika Ratu used modern imported equipment 0.030 3

Controlled through a recently installed information technology (IT) system 0.005 2

Mustika Ratu focus on domestic market and protect the existing position 0.035 3

Quality control was a key part of the company’s product strategy 0.020 3

The promotion through a myriad of media and point of sale promotions 0.030 4

Sponsorship of several major beauty events 0.035 3

Concentrated on intensifying their departement store distribution channels 0.030 3

Muatika Ratu has a top selling of the company revenue 0.015 3

WEAKNESS

In 1998 the stock had declined dramatically 0.030 3

OPPORTUNITY

0.035 2

0.09 3

Indonesia is a rich natural resources and agriculture 0.14 4

0.04 3

In Malaysia, Mustika ratu in doubling sales 0.033 3

Using a mail order distribution channel in Hongkong and Holland 0.03 2

0.02 2

THREATSThe Asian financial crisis had devasted the Indonesian economy 0.035 4

Mustika Ratu is a leading Indonesian manufacturer of cosmetics and traditional herbal supplements

Mustika Ratu used each of these channels to market their extensive products lines

Mustika Ratu had opened 14 “House of Mustika Ratu” outlets in major urban centres

Mustika Ratu had 4.000 agents, 1.300 beauty advisers and 40.000 retail outlets

Product of Mustika Ratu has made by healt and beauty properties of local plants and herbs

The political tensions running up to a parliamentary election June, along with the issue of sovereignty in some regions of the country were expected to manifest in continued social unrest

Population of Indonesia is over 210 million and Indonesia is the fourth most populus country in the world

In urban center, these market held the potential of more 100 milion Muslim consumer

The company’s web site invited distributors meeting certain criteria to form strategic alliance

0.02 3

Close to half of Indonesia’s 200 banks were insolvent 0.03 3

The ranks of the unemployed swelled by thousands each day 0.03 4

TOTAL 1

Foreign direct investment (FDI) had dried up and the domestic bankruptcy rate increased dramatically

Option 1 Option 2

Rating

0.4 4 0.400

0.045 3 0.045

0.06 4 0.080

0.03 2 0.030

0.03 2 0.020

0.004 3 0.006

0.105 3 0.105

0.105 2 0.070

0.07 2 0.070

0.09 3 0.090

0.01 2 0.010

0.105 4 0.140

2 0.040

0.12 3 0.090

0.105 3 0.105

0.09 3 0.090

2 0.030

0.09 3 0.090

0.07 2 0.070

0.27 3 0.270

0.56 2 0.280

0.12 2 0.080

0.099 2 0.066

0.06 2 0.060

0.04 2 0.040

0.14 3 0.105

Weighted Score

Weighted Score

0.06 2 0.040

0.09 3 0.090

0.12 3 0.090

3.09 2.702

TOWS MATRIX

STRENGTH

S1

S2

S3

S4

S5

S6

S7

S8S9S10

S11

S12

S13

S14

S15

S16OPPORTUNITY SO STRATEGIES

O1 1.

O2 2.

O3 Indonesia is a rich natural resources and agriculture 3.

The political tensions running up to a parliamentary election June, along with the issue of sovereignty in some regions of the country were expected to manifest in continued social unrest

Population of Indonesia is over 210 million and Indonesia is the fourth most populus country in the world

INTERNAL FACTOR

EXTERNAL FACTOR

O4 4.

O5 In Malaysia, Mustika ratu in doubling sales 5

O6

O7

THREATS

T1 1.

T2 2.

T3 3.

T4 4

In urban center, these market held the potential of more 100 milion Muslim consumer

Using a mail order distribution channel in Hongkong and Holland

The company’s website invited distributors meeting certain criteria to form strategic alliance

The Asian financial crisis had devasted the Indonesian economy

Foreign direct investment (FDI) had dried up and the domestic bankruptcy rate increased dramatically

Close to half of Indonesia’s 200 banks were insolvent

The ranks of the unemployed swelled by thousands each day

STRENGTH WEAKNESS

W1

Mustika Ratu had their own specialization plantations on Java

Mustika Ratu has Halal standard

Mustika Ratu used modern imported equipment

Sponsorship of several major beauty events

Mustika Ratu has a top selling of the company revenue

SO STRATEGIES WO STRATEGIES

Mustika Ratu is a leading Indonesian manufacturer of cosmetics and traditional herbal supplements

Mustika Ratu is a beauty product that specially for Indonesian skin

Mustika Ratu used each of these channels to market their extensive products lines

In mid-1996, Mustika Ratu established a direct selling division

Mustika Ratu had opened 14 “House of Mustika Ratu” outlets in major urban centres

Mustika Ratu had 4.000 agents, 1.300 beauty advisers and 40.000 retail outlets

Product of Mustika Ratu has made by health and beauty properties of local plants and herbs

Controlled through a recently installed information technology (IT) system

Quality control was a key part of the company’s product strategy

The promotion through a myriad of media and point of sale promotions

Concentrated on intensifying their departement store distribution channels

Market development to other country (S1;S10;O1)

Strengthen brand name in marketing strategy (S2;S3;O2)

Continous improvement for quality product (S11;S12;O3)

1.

ST STRATEGIES

1.

Catch moeslem market for introduce the Halal product (S6;S9;O4)

Strategic alliance to enter the new market (S4;S14;O7)

Push strategy (S5;S13;T1)

Educate market about product of Mustika Ratu (S7;S8;T2)

Increasing relationship with distributor (S15;S16;T3)

Hire key employees from ex-competitor (S1;T4)

WEAKNESS

In 1998 the stock had declined dramatically

WO STRATEGIES

WT STRATEGIES

Increasing market share or sales from Asia and Holland

(O5;O6;W1)

Program training in recruitment to get expert employees to increase sales in Indonesian market (W1;T4)

TOWS MATRIX

STRENGTH

S1

S2

S3

S4

S5

S6

S7

S8

S9S10

S11

S12

S13

S14

S15

S16OPPORTUNITY SO STRATEGIES

O1 1

O2 2

O3 Indonesia is a rich natural resources and agriculture 3

O4 4

The political tensions running up to a parliamentary election June, along with the issue of sovereignty in some regions of the country were expected to manifest in continued social unrest

Population of Indonesia is over 210 million and Indonesia is the fourth most populus country in the world

In urban center, these market held the potential of more 100 milion Muslim consumer

INTERNAL FACTOR

EXTERNAL FACTOR

O5 In Malaysia, Mustika ratu in doubling sales 5

O6 6

O7

THREATS

T1 1

T2 2

T3 Close to half of Indonesia’s 200 banks were insolvent 3

T4 4

Using a mail order distribution channel in Hongkong and Holland

The company’s website invited distributors meeting certain criteria to form strategic alliance

The Asian financial crisis had devasted the Indonesian economy

Foreign direct investment (FDI) had dried up and the domestic bankruptcy rate increased dramatically

The ranks of the unemployed swelled by thousands each day

STRENGTH WEAKNESS

W1

Mustika Ratu is a beauty product that specially for Indonesian skin

In mid-1996, Mustika Ratu established a direct selling division

Mustika Ratu had their own specialization plantations on Java

Mustika Ratu has Halal standard

Mustika Ratu used modern imported equipment

Quality control was a key part of the company’s product strategy

The promotion through a myriad of media and point of sale promotions

Sponsorship of several major beauty events

Concentrated on intensifying their departement store distribution channels

Mustika Ratu has a top selling of the company revenue

SO STRATEGIES WO STRATEGIES

Market development to other country (S1;S10;O1) 1

Strengthen brand name in marketing strategy (S2;S3;O2)

Continous improvement for quality product (S11;S12;O3)

Mustika Ratu is a leading Indonesian manufacturer of cosmetics and traditional herbal supplements

Mustika Ratu used each of these channels to market their extensive products lines

Mustika Ratu had opened 14 “House of Mustika Ratu” outlets in major urban centres

Mustika Ratu had 4.000 agents, 1.300 beauty advisers and 40.000 retail outlets

Product of Mustika Ratu has made by health and beauty properties of local plants and herbs

Controlled through a recently installed information technology (IT) system

Catch moeslem market for introduce the Halal product (S6;S9;O4)

Strategic alliance to enter the new market (S4;S14;O7)

ST STRATEGIES

Push strategy (S5;S13;T1) 1

Educate market about product of Mustika Ratu (S7;S8;T2) 2

Increasing relationship with distributor (S15;S16;T3)

Hire key employees from ex-competitor (S1;T4)

Product Development that fit in the country cultures and tastes (S7;S9;O4)

WEAKNESS

In 1998 the stock had declined dramatically

WO STRATEGIES

Increasing market share or sales from Asia and Holland (O5;O6;W1)

WT STRATEGIES

Program training in recruitment to get expert employees to increase sales in Indonesian market (W1;T4)

Increasing risk management strategy for the unxpected loss (W1;T1;T2)

SO STRATEGIES

1.

2.

3.

4.

5

6 New Product that fit in the country cultures and tastes (S7;S9;O4)

ST STRATEGIES1.

2.

3.

4

Marketing1 Market development to other country 2 Strengthen brand name in marketing strategy 3 Catch moeslem market for introduce the Halal product 4 Increasing market share or sales from Asia and Holland

5 Push strategy

6 Educate market about product of Mustika Ratu

7 Increasing relationship with distributor

Human Resources9 Hire key employees from ex-competitor

10

Market development to other country (S1;S10;O1)

Strengthen brand name in marketing strategy (S2;S3;O2)Continous improvement for quality product (S11;S12;O3)

Catch moeslem market for introduce the Halal product (S6;S9;O4)

Strategic alliance to enter the new market (S4;S14;O7)

Push strategy (S5;S13;T1)

Educate market about product of Mustika Ratu (S7;S8;T2)

Increasing relationship with distributor (S15;S16;T3)

Hire key employees from ex-competitor (S1;T4)

Program training in recruitment to get expert employees to increase sales in Indonesian market

WO STRATEGIES marketing stra

1.

financial strat

WT STRATEGIESR & D strategy

2 Increasing risk management strategy for the unxpected loss (W1;T1;T2) operations str

1.

Operational11 Continous improvement for quality product

Research and Department8 New Product that fit in the country cultures and tastes purchasing strategy

logistics strateFinancial

12 Strategic alliance to enter the new market

13Increasing risk management strategy for the unxpected loss HRM strategy

Increasing market share or sales from Asia and Holland

(O5;O6;W1)

Program training in recruitment to get expert employees to increase sales in Indonesian market (W1;T4)

deals with pricing, selling, and distributing a product push strategy

pull strategy

skim pricing

penetration pricing

dynamic pricing

examines the finaincial implications of corp strategic options and identifies the bestleveraged buyout

reversed stock splits

deals wih product and process innovation and improvment open innovation

determines how and where a product or service is to be nanufactured, the level of vsix sigma

Job shop

Connected line batch flow

Flexible manufacturing systemsDedicated transfer linesMass productionContinuous improvement systemModular manufacturing

purchasing strategy multiple sourcing

sole sourcing

Parallel sourcingjust in time

deals with the flow of products into and out of the manufacturing process Logisitic Strategy

addresses the issue of whether a company should hire a large number or low skilledjob design

spending large amount of money on trade promotion in order to gain or hold shelf space in retail outlets

co spends money on consumer advertising designed to build brand awareness so that shoppers will ask for products

offers the opportunity to look at the top of demand curve with a high price whie the product is novel and cometitors are few

attempts to hasten market development and offers the pioneer the opportunity to use the experience vurve to gain market share with low price and then dominate industry

practice in which prices vary frequently based upon demand, market segment, and product availabily

company is qcquired in a transaction financed largely by deby, such as an insurance company or investment banker

the aquired company pays for its own acquisitioninvestors shars are split in half for the same total amout of money

1 for 2 stock split (shares are now worth twice as much)

firms use alliances and connections with corporate, government, labs, and consumers to develop new products and processes

analytical method for achieving near perfect results on a production line

Define - a process where results are poorer than average

Measure - the process to determine exact current performance

Analyze - the info to pinpoint where things are going wrongImprove - the process and eliminate errorEstablish - controls to prevent future defects from occuring

the purchasing company orders a particular part from several vendors

only one supplier for a particular part

two suppliers are the sole suppliers of two different parts, but they are also backu suppliers for each other's productsconcept of having the purchased parts arrive at the plant just when they are needed, rather than having inventoriescentralizatonoutsourcinginternet

the study of individual tasks in an attempt to make them more relevant to the company and to the employees

Job enlargementJob rotationJob enrichment

spending large amount of money on trade promotion in order to gain or hold shelf space in retail outlets

co spends money on consumer advertising designed to build brand awareness so that shoppers will ask for products

offers the opportunity to look at the top of demand curve with a high price whie the product is novel and cometitors are few

attempts to hasten market development and offers the pioneer the opportunity to use the experience vurve to gain market share with low price and then dominate industry

company is qcquired in a transaction financed largely by deby, such as an insurance company or investment banker

firms use alliances and connections with corporate, government, labs, and consumers to develop new products and processes

two suppliers are the sole suppliers of two different parts, but they are also backu suppliers for each other's productsconcept of having the purchased parts arrive at the plant just when they are needed, rather than having inventories

the study of individual tasks in an attempt to make them more relevant to the company and to the employees

Marketing

Human Resources

FUNCTIONAL STRATEGYObjective

Marketing StrategyStrengthen Brand Awareness

Increasing Sales 15% each year

Financial StrategyIncreasing Sales 15% each yearPrevention for the next unexpected event

Market development to other country (S1;S10;O1)

Strengthen brand name in marketing strategy (S2;S3;O2)Catch moeslem market for introduce the Halal product (S6;S9;O4)

Increasing market share or sales from Asia and Holland

(O5;O6;W1)

Push strategy (S5;S13;T1)Educate market about product of Mustika Ratu (S7;S8;T2)Increasing relationship with distributor (S15;S16;T3)

Hire key employees from ex-competitor (S1;T4)

Program training in recruitment to get expert employees to increase sales in Indonesian market (W1;T4)

Research and Development (R&D) StrategyProduct acceptance in other countries

Operational Strategy

Strengthen Brand Awareness

Human Resources Management (HRM) StrategyIncreasing Sales 15% each yearCompetitive Advantage

Operational

Financial

Strategy

Push Strategy

Market Development

Product Development that fit in the country cultures and tastes

Increasing relationship with distributor

Long-term asset management strategyIncreasing Risk Management performance

Continous improvement for quality product (S11;S12;O3)

Increasing risk management strategy for the unxpected loss (W1;T1;T2)

Strategic alliance to enter the new market (S4;S14;O7)

Defensive R&D

Adjusting in Other Country Culture and Tastes

Continous improvement for quality product

Training DevelopmentRecruitment Strategy

Individual and Group reward system

Program

Member CardBuy one get one freeFree beauty Consulting 15 minutesFree Gift for poin cumulative

Introduce the Halal product for the Moeslem market

Educate market about Mustika Ratu productsBonus compensationCreate code of counduct relationship with distributor

Strategic alliance to enter the new marketPeriodic ReviewBusiness Continuity Plan

Buy Mustika Ratu Product up to Rp.500.000, free spa voucher and free ticket for beauty contest show

Using signature natural herbs in each tcountry as the ingridients of Mustika Ratu Produtcs

Provision for risk loss

Customization Product Ingridients

Keep updating the information system controlled

Using Alliances partner Plants for manufacturing

Increasing the quality of human resources.Hiring key Personal from ex-competitorHiring local talentPromotions, awards, bonus, profit sharing

Product Specialty (ex.Uni Emirates Arab:you don’t need to clean the make-up because it's allowed for praying)

Private specialization plantations for local herbs of each country

ObjectiveStrengthen Brand Awareness

Increasing Sales 15% each year

Prevention for the next unexpected event

Product acceptance in other countries

Competitive Advantage

Program TimelineMember Card AnytimeBuy one get one free 2 MonthsFree beauty Consulting 15 minutes 6 MonthsFree Gift for poin cumulative 6 Months

1 Month

6 Months

Keep updating the information system controlled Each quarterUsing Alliances partner Plants for manufacturing 3 Months after contract dealIntroduce the Halal product for the Moeslem market 6 Months

Educate market about Mustika Ratu products 6 MonthsBonus compensation for distributor 1x/end of the yearCreate code of conduct relationship with distributor 3 MonthsStrategic alliance to enter the new market 1 YearIncreasing the quality of human resources. 6-12 MonthsPeriodic Review Each quarterBusiness Continuity Plan 3 MonthsProvision for risk loss Each quarterCustomization Product Ingridients 1 Year

1 Year

Hiring key Personal from ex-competitor 3-5 WeeksHiring local talent 3 Months

Buy Mustika Ratu Product minimal Rp.500.000, free spa voucher and free ticket for beauty contest show

Private specialization plantations for local herbs of each country

Using signature natural herbs in each country as the ingridients of Mustika Ratu Produtcs

Everytime of Production Process

Product Specialty (ex.Uni Emirates Arab:you don’t need to clean the make-up because it's allowed for praying)

StaffingMarketingMarketingMarketingMarketing

Marketing

Operation

OperationOperationMarketing

Marketing

MarketingHuman ResourcesHuman ResourcesFinancialHuman ResourcesFinancialFinancialFinancialR&D

R&D

Human ResourcesHuman Resources