The current Indonesian economic condition is characterized by having tremendous influences from the political situation as well as economic condition in the region. The above circumstances will unavoidably, directly or indirectly, impact the business of PT KONEBA. In order to survive in any kind of situation, favorable or unfavorable to PT KONEBA, a robust strategy needs to be developed. For that reason, a field study was conducted with the purpose of defining a robust strategy for PT KONEBA to survive and excel in rapidly changing environment.

A series of interviews were conducted by a group of IPMI students involving most of the key managers and staffs of PT KONEBA for the purpose of gathering required information to be analyzed later.

As the result of the interviews, the group was systematically able to identify major issues and concerns faced by PT KONEBA. The issues and concerns were then grouped together according to their characteristic such as corporate strategy, people, marketing, organization, project, HRD, finance, technology, environment, government relation, government policy, economic condition, and social. A set of focus questions was also prepared to provide directions in analyzing the issues and preparing the robust strategies for PT KONEBA to survive in the market.

The process was then followed by a one-day workshop for scenario planning f purpose, conducted by the IPMI students and participated by PT KONEBA's senior executives, managers and staffs. During this session, the issues and concerns were listed and grouped together into controllable and uncontrollable ones. The controllable issues were further categorized as portfolio or main issues and supporting issues.

On the other hand, the uncontrollable issues were further selected and used as the key driving forces that would be considered in the process of answering the I strategic focus questions. The selection and prioritization process was performed by the executives and managers of PT KONEBA considering those having the most substantial impacts to the business of the company.

The two most crucial uncontrollable issues which were "Government Policy" and "Economic Condition" were then referred as the "primary key drivers" where each of the key drivers was viewed as a continuum from one state to the other i.e. good to bad.

With those two axis crossed together we then can have four quadrant and each of them resembles the particular scenario resulting in four different scenarios:

1. Scenario-1, characterized by booming Indonesian economy and favorable government policy towards the business of PT KONEBA where the environment is quite favorable to PT KONEBA. This scenario was then referred as "Winds from Heaven" or "Angin Sorga".

2. Scenario-2, characterized by booming Indonesian economy and unfavorable : government policy towards the business of PT KONEBA where the environment is highly competitive. This scenario was then referred as "Swaying Coconut Leaves" or "Nyiur Melambai",

3. Scenario-3, characterized by busting Indonesian economy and unfavorable government policy towards the business of PT KONEBA where the environment is quite tough. This scenario was then referred as "Bleak Future" or "Madesu".

4. Scenario-4, characterized by busting Indonesian economy and favorable government policy towards the business of PT KONEBA where the environment is neither favorable nor unfavorable. This scenario was then referred as "La Nina".

The situation in each scenario was then described explaining major aspects such as political condition, economic condition, government policy, infrastructure, technology and environmental issues on energy.

To see how PT KONEBA will perform in the circumstances described in all scenarios, a win tunneling exercise was conducted. The result showed that using the existing strategies and resources, PT KONEBA would only be able to survive in the market if the condition persists as stated in scenario-1.

For each scenario a series of implications was determined as a result of the condition described in there. Strategies to face the implications were also developed accordingly. -

The strategies in the four different' scenarios were then reviewed to find out common elements, which would work in any scenario. These would later become core strategies. Some strategies that would only work in 1 of 2 scenarios were then listed as scenario-specific strategies. Several key strategic elements out of these scenario specific strategies were selected and put as contingent strategies.

Finally the strategies were used as a base for the group to develop conclusions and recommendations.

Based on our findings we were able to develop primary conclusion. Our interviews with PT KONEBA and its customers revealed some relevant issues and concerns.

The areas that we feel require improvement are:

.Company strategy, vision, mission, goals and objectives,

.Delegation of authority and empowerment including human resource development,

.Making optimum use of the marketing force,

.Productivity and professionalism among the staff members, and

.Company image as a result of product and service quality offered which is

. reflected in the customer satisfaction.

The low energy price is also a major concern for PT KONEBA which substantially lower the awareness for energy conservation in the community.

Being a state owned enterprise and getting some privilege from the government is one of the strengths that PT KONEBA posses besides having quite a number of experienced people to perform the service offered.

As a final part, strategic recommendation is also given to address the issues and concerns faced by PT KONEBA. Clearly defined corporate strategy, mission, vision, goal and objectives are crucial matters that need to be addressed and well communicated to the employees.

A related diversification to potential opportunities available in the market is also recommended during the "low season" period.

In the sales and marketing area attention should greatly be paid to customer satisfaction by means of improving professionalism of the field people. The driving force behind this is an appropriate reward system in order to motivate the people.

Organization structure should also be aligned with market demand by having a project-based matrix organization structure without neglecting key-account coverage. Internal bureaucracy should also be minimized when necessary to slash low productivity.

In the human resource area, a quality hiring is imperative while the qualified people sholud be maintained in the organization. The release of non-performers should be done when necessitates.

A good skill of project management is mandatory to ensure projects are well managed and up to standard.

A company name we believe should resemble its business and sound representative, attractive and easy to remember. For that reason a change in the company name should be considered.

We understand that implementing the directed recommendations is solely at the discretion of PT KONEBA but it is advisable that the implementation be prioritized and carried out accordingly.



Research location: PT. KONEBA Persero

Supervisor: Hadi Satyagraha

Accepted on December 1998



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