IFAS STRENGTH

Weight

Rating

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 Mustika Ratu had their own specialization plantations on Java Mustika Ratu has Halal standard Mustika Ratu used modern imported equipment Controlled through a recently installed information technology (IT) system Mustika Ratu focus on domestic market and protect the existing position Quality control was a key part of the companys 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 Muatika Ratu has a top selling of the company revenue
WEAKNESS

0.200 0.030 0.040 0.030 0.020 0.005 0.070 0.070 0.070 0.060 0.010 0.070 0.040 0.060 0.070 0.060 0.035 0.060 1

4 3 3 2 3 2 3 3 2 3 2 3 3 4 3 3 3 3

In 1998 the stock had declined dramatically TOTAL

Weighted Score 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

EFAS OPPORTUNITY

Weight

Rating

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 Indonesia is a rich natural resources and agriculture In urban center, these market held the potential of more 100 milion Muslim consumer In Malaysia, Mustika ratu in doubling sales Using a mail order distribution channel in Hongkong and Holland The companys web site invited distributors meeting certain criteria to form strategic alliance THREATS 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 Indonesias 200 banks were insolvent The ranks of the unemployed swelled by thousands each day
TOTAL

0.07

0.14

0.17 0.28 0.09 0.07 0.05 0.04

3 4 3 3 2 2

0.51 1.12 0.27 0.21 0.1 0.08

0.07 0.04 0.06 0.06 1

4 3 3 4

0.28 0.12 0.18 0.24 3.25

Option 1 Weight STRENGTH Rating

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 healt and beauty properties of local plants and herbs Mustika Ratu had their own specialization plantations on Java Mustika Ratu has Halal standart Mustika Ratu used modern imported equipment Controlled through a recently installed information technology (IT) system Mustika Ratu focus on domestic market and protect the existing position Quality control was a key part of the companys 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 Muatika Ratu has a top selling of the company revenue
WEAKNESS

0.100 0.015 0.020 0.015 0.010 0.002 0.035 0.035 0.035 0.030 0.005 0.035 0.020 0.030 0.035 0.030 0.015 0.030

4 3 3 2 3 2 3 3 2 3 2 3 3 4 3 3 3 3

In 1998 the stock had declined dramatically

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 Indonesia is a rich natural resources and agriculture In urban center, these market held the potential of more 100 milion Muslim consumer In Malaysia, Mustika ratu in doubling sales Using a mail order distribution channel in Hongkong and Holland The companys web site invited distributors meeting certain criteria to form strategic alliance THREATS The Asian financial crisis had devasted the Indonesian economy Foreign direct investment (FDI) had dried up and the domestic bankruptcy rate increased dramatically

0.035

0.09 0.14 0.04 0.033 0.03 0.02

3 4 3 3 2 2

0.035 0.02

4 3

Close to half of Indonesias 200 banks were insolvent The ranks of the unemployed swelled by thousands each day
TOTAL

0.03 0.03 1

3 4

Option 1 Weighted Score 0.4 0.045 0.06 0.03 0.03 0.004 0.105 0.105 0.07 0.09 0.01 0.105 0.12 0.105 0.09

Option 2 Weighted Rating Score 4 3 4 2 2 3 3 2 2 3 2 4 2 3 3 3 2 3 0.400 0.045 0.080 0.030 0.020 0.006 0.105 0.070 0.070 0.090 0.010 0.140 0.040 0.090 0.105 0.090 0.030 0.090

0.09

0.07

0.070

0.27 0.56 0.12 0.099 0.06 0.04

3 2 2 2 2 2

0.270 0.280 0.080 0.066 0.060 0.040

0.14 0.06

3 2

0.105 0.040

0.09 0.12 3.09

3 3

0.090 0.090 2.702

TOWS MATRIX

STRENGT S1
INTERNAL FACTOR

S2 S3 S4 S5 S6

EXTERNAL FACTOR

S7 S8 S9 S10 S11 S12 S13 S14 S15 S16

OPPORTUNITY O1
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 Indonesia is a rich natural resources and agriculture In urban center, these market held the potential of more 100 milion Muslim consumer

SO STRATEG

1.

O2 O3 O4

2.

3. 4.

O5 O6 O7

In Malaysia, Mustika ratu in doubling sales Using a mail order distribution channel in Hongkong and Holland The companys website invited distributors meeting certain criteria to form strategic alliance

THREATS T1 T2 T3 T4
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 Indonesias 200 banks were insolvent The ranks of the unemployed swelled by thousands each day
1.

2.

3. 4

STRENGTH
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 Mustika Ratu had their own specialization plantations on Java Mustika Ratu has Halal standard Mustika Ratu used modern imported equipment Controlled through a recently installed information technology (IT) system Quality control was a key part of the companys 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

WEAKNESS W1

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

WO STRATEGIES

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)

ST STRATEGIES
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)
1.

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)

TOWS MATRIX

S1

INTERNAL FACTOR

S2 S3 S4 S5 S6

EXTERNAL FACTOR

S7 S8 S9 S10 S11 S12 S13 S14 S15 S16

OPPORTUNITY O1 O2 O3 O4 O5 O6 O7
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 Indonesia is a rich natural resources and agriculture In urban center, these market held the potential of more 100 milion Muslim consumer In Malaysia, Mustika ratu in doubling sales Using a mail order distribution channel in Hongkong and Holland The companys website invited distributors meeting certain criteria to form strategic alliance

SO 1 2 3 4 5 6

THREATS T1 T2 T3 T4
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 Indonesias 200 banks were insolvent The ranks of the unemployed swelled by thousands each day

1 2 3 4

STRENGTH
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 Mustika Ratu had their own specialization plantations on Java Mustika Ratu has Halal standard Mustika Ratu used modern imported equipment Controlled through a recently installed information technology (IT) system Quality control was a key part of the companys 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

WEA W1

SO STRATEGIES 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) Product Development that fit in the country cultures and tastes (S7;S9;O4) 1

WO STR

ST STRATEGIES 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) 1 2

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

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

1. 2. 3. 4

ST STRATEGIES Push strategy (S5;S13;T1)

1 2 3 4 5 6 7

Human Resources 9 Hire key employees from ex-competitor Program training in recruitment to get expert employees to increase 10 sales in Indonesian market

WO STRATEGIES
1.

marketing strategy

Increasing market share or sales from Asia and Holland

(O5;O6;W1)

financial strategy

WT STRATEGIES
R & D strategy
2 Increasing risk management strategy for the unxpected loss (W1;T1;T2)

operations strategy

1.

Program training in recruitment to get expert employees to increase sales in Indonesian market (W1;T4) Operational 11 Continous improvement for quality product Research and Department 8 New Product that fit in the country cultures and tastes

purchasing strategy

logistics strategy

Financial 12 Strategic alliance to enter the new market 13 Increasing risk management strategy for the unxpected loss
HRM strategy

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 best leveraged financial course buyout of action. 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 vertical six sigma integration in the process, the dep Job shop Connected line batch flow

Flexible manufacturing systems Dedicated transfer lines Mass production Continuous improvement system Modular manufacturing rchasing strategy

multiple sourcing sole sourcing Parallel sourcing just in time Logisitic Strategy

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

addresses the issue of whether a company should hire a large number or low skilledjob employees design or receive low pay or higher s

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 s 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 acquisition investors 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 processe 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 wrong Improve - the process and eliminate error Establish - 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 products concept of having the purchased parts arrive at the plant just when they are needed, rather than having inventories centralizaton outsourcing internet the study of individual tasks in an attempt to make them more relevant to the company and to the employees Job enlargement Job rotation Job enrichment

will ask for products

ovel and cometitors are few

ience vurve to gain market share with low price and then dominate industry

nvestment banker

new products and processes

ach other's products having inventories

he employees

Marketing

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)

Human Resources
Hire key employees from ex-competitor (S1;T4) Program training in recruitment to get expert employees to increase sales in Indonesian market (W1;T4)

FUNCTIONAL STRATEGY
Objective
Marketing Strategy
Strengthen Brand Awareness

Increasing Sales 15% each year

Financial Strategy Increasing Sales 15% each year Prevention for the next unexpected event

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

Operational Strategy Strengthen Brand Awareness

Human Resources Management (HRM) Strategy Increasing Sales 15% each year Competitive Advantage

Operational

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

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

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

Strategy
Push Strategy

Market Development Product Development that fit in the country cultures and tastes Increasing relationship with distributor

Long-term asset management strategy Increasing Risk Management performance

Defensive R&D Adjusting in Other Country Culture and Tastes

Continous improvement for quality product

Training Development Recruitment Strategy Individual and Group reward system

Program
Member Card Buy one get one free Free beauty Consulting 15 minutes Free Gift for poin cumulative Buy Mustika Ratu Product up to Rp.500.000, free spa voucher and free ticket for beauty contest show Introduce the Halal product for the Moeslem market Using signature natural herbs in each tcountry as the ingridients of Mustika Ratu Produtcs Educate market about Mustika Ratu products Bonus compensation Create code of counduct relationship with distributor

Strategic alliance to enter the new market Periodic Review Business Continuity Plan Provision for risk loss

Customization Product Ingridients Product Specialty (ex.Uni Emirates Arab:you dont need to clean the make-up because it's allowed for praying) Private specialization plantations for local herbs of each country Keep updating the information system controlled Using Alliances partner Plants for manufacturing Increasing the quality of human resources. Hiring key Personal from ex-competitor Hiring local talent Promotions, awards, bonus, profit sharing

Objective
Strengthen Brand Awareness

Increasing Sales 15% each year

Prevention for the next unexpected event

Product acceptance in other countries

Competitive Advantage

Program
Member Card Buy one get one free Free beauty Consulting 15 minutes Free Gift for poin cumulative Buy Mustika Ratu Product minimal Rp.500.000, free spa voucher and free ticket for beauty contest show Anytime 2 Months 6 Months 6 Months 1 Month

Timeline

Private specialization plantations for local herbs of each 6 Months country Each quarter Keep updating the information system controlled 3 Months after contract deal Using Alliances partner Plants for manufacturing
Introduce the Halal product for the Moeslem market Using signature natural herbs in each country as the ingridients of Mustika Ratu Produtcs Educate market about Mustika Ratu products Bonus compensation for distributor Create code of conduct relationship with distributor 6 Months Everytime of Production Process 6 Months 1x/end of the year 3 Months 1 Year 6-12 Months Each quarter 3 Months Each quarter 1 Year

Strategic alliance to enter the new market Increasing the quality of human resources. Periodic Review Business Continuity Plan Provision for risk loss Customization Product Ingridients

Product Specialty (ex.Uni Emirates Arab:you dont need 1 Year to clean the make-up because it's allowed for praying) Hiring key Personal from ex-competitor Hiring local talent
3-5 Weeks 3 Months

Staffing
Marketing Marketing Marketing Marketing Marketing Operation Operation Operation Marketing Marketing Marketing Human Resources Human Resources Financial Human Resources Financial Financial Financial R&D R&D Human Resources Human Resources