Business Case Analysis - TPC Company

1. Analysis Report PPM Regional Business Case Competition
TIGA PILAR CORPORATION:
A Journey to Greatness
Written by :
Haris Suhendra, Pramita Wardani, William Andrew

2. Case Framework
Situation
• Company
Profile
(Corporate
Profile, &
BU’s Profile).
• Corporate
Performance
• Good
Corporate
Governance
Indonesia’s Economic Landscape
Problem Analysis
Recommen-
dation
1 2 3
TPC
TPS
Food
TPS
Agro
TPS
Trading
TPS
Venture
Combinations of
Balanced
Scorecard
+ SWOT
Strategy
Recommendation
4
Problem
Identification

3. Macro Economic Indicator Data
Population 240 million
GDP growth (%) 6,5 %
GDP per capita (US $) 3600
Exchange rate per US$ 8500
Poverty Rate 14,6%
Macro Economic Indicator Data
Net Capital Inflow (Million) 22.64
Economic Growth 7 %
Indonesia’s Income Per capita projection
2030 (US$)
10,000
Economic Growth (ASEAN) 6,9%
The Fourth Cluster Driving Growth : food and beverages industry. Textiles, textile
products, and footwear industry, electronics and electronic components industry, and
transportation equipments and automotive components industry.
Indonesia’s Economic Landscape

4. Situations of TPC
• TPC is one of Indonesia’s most respected food producers
• TPC has a huge amount of assets
• TPC use Acquisition Strategy to expand their business
• TPC has become a holding company in 2010
• TPS Academy as the source of company’s knowledge

5. Problem Identification
Negative
Net Profit
Growth
TPS Venture average net
profit growth : - 68.77%.
Struggling to
Synergize
TPC has been the holding
company to the four BU’s.
Distribution
Channel
Duplication
Overlapping function
between TPC and TPS
Trading.
Small
Market
Shares
TPS Food instant noodle market
share : < 4%
Underutilized
assets
TPS Agro land property
utilization : 14,89%

6. How do we analyze it

7. Balanced Scorecard
SWOT
We call it BSWOT…
Framework Analysis
Source : http://www.tvk.se/templ/page____107.aspx

8. 2. Stabilize
Strategy to
stabilize the profit
3. Centralize
Strategy to centralize
the distribution
5. Profit
Strategy to increase
the profit
Strategy to synergize the
company
1. Synergize
4. Win
Strategy to win
the market
Recommendations
We Called
PANCANAKA
Strategy…

9. 1. Strategy to synergize the company
Recommendation (1)
Source : Alignment (Robert S. Kaplan and David P. Norton)

10. Business Group under TPC
TPC
TPS Food TPS Agro TPS Trading
TPS
Venture
TPC
Food
Business Unit
TPS
Food
TPS
Agro
TPS
Trading
Energy
Business Unit
TPS
Venture
1. Strategy to synergize the company
Recommendation (1)

11. 1. Reduce Cost of Goods Sold
2. Focus on Energy Business
3. Finding Strategic Partnership
2. Strategy to stabilize the profit
Recommendation (2)
We will give more attention to the TPS Venture.

12. 3. Strategy to Centralize the Distribution
Recommendation (3)

13. 3. Strategy to
Centralize the
Distribution
Regional Distribution CenterRDC
Warehouse
Provincial
Coverage
Area
Warehous
e Regency
Coverage
Area
Warehouse
Provincial
Coverage
Area
Warehous
e Regency
Coverage
Area
Warehous
e Regency
Coverage
Area
Warehous
e Regency
Coverage
Area
Warehouse Sub-
District Coverage
Area Warehouse Sub-
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Warehouse Sub-
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Warehouse Sub-
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Area
Warehouse
Provincial
Coverage
Area
Warehouse
Provincial
Coverage
Area
Recommendation (3)

14. Recommendation (3)
Regional Distribution Center (RDC)
- Zoning System -

15. Haha Mie could be more
focused on children’s market
segment
For Bihunku we invent new
variant products such as Bihun
Healthy Diet or Bihun High
Calcium.
4. Strategy to win the market
Recommendation (4)
TPS Food area :
Utilizing Palm plantations by
maximizing the palm lands
Expand the cassava, sago and
spirulina businesses from
downstream to mainstream
Increase net sales growth yearly by
reduce operating expenses
Use 360-degree Communication
Strategy
TPS Agro area :

16. Reduce operational
costs
Boost up sales
(aggressive marketing)
5. Strategy to increase the profit
Recommendation (5)
TPS Food area :
Reduce costs by
decreasing COGS
Boost up sales
(aggressive marketing)
Innovative products
Increase net sales
growth by reducing
operational expenses
TPS Agro area :

17. “Sangkan Paraning Dumadi”