LEADING AND MANAGING ORGANIZATIONAL CHANGE ANALYSIS

MADTARI CAFÉ BANDUNG

COURSE REPORT

Created By:
Group 2

Andina Diah Hapsari (29118130)

Bagja Auzan Karami (29118104)
Billy Gema Mahaputra (29118082)
Laily Fauziah (29118159)
Sri Nova Adhi Dhea (29118073)
Vanita Zahra Zahirah (29118182)

MASTER BUSINESS ADMINISTRATION PROGRAM

SCHOOL OF BUSINESS AND MANAGEMENT
INSTITUT TEKNOLOGI BANDUNG
2019
 ACKNOWLEDGEMENTS

Alhamdulillah, big thanks for the presence of Allah SWT, because of His blessings, grace,
instructions, and help so that the course report can be completed well on the right time as one of
the requirements for completing the Leading and Managing Organizational Change task.

The author realizes that there are still many shortcomings in the implementation and preparation
of the course report, but thanks to our lecture, Mrs. Yuni Ros Bangun as a guidance and
encouragement from many parties during the making of course report so that the obstacles can be
passed.

May Allah SWT give His blessings to all of us. In addition, this course report still has many
shortcomings and far from perfection so author expect constructive criticism and suggestions in
improving this course report. Hopefully this course report has a great impact to the company and
provides benefits for readers, ITB, and especially the author.

Bandung, 19 September 2019

Group 2
LMOC Class

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 TABLE OF CONTENTS

ACKNOWLEDGEMENTS ……………………………………………………………………..i
TABLE OF CONTENTS ……………………………………………………………………….ii
LIST OF TABLES ……………………………………………………………………………...iii
LIST OF FIGURES ………………………………………………………………………….…iv
LIST OF APPENDIX …………………………………………………………………………...v
EXECUTIVE SUMMARY……………………………………………………………………..vi

CHAPTER I - INTRODUCTION
1.1 Background ………………………………………………………………………….…..1
1.2 Company Profile ……………………………………………………………………..….1
1.3 Scope of Work ………………………………………………………………………….3
1.4 Objectives of the Task ……………………………………………………………….….4

CHAPTER II – BUSINESS ANALYSIS

2.1 Theoretical Framework ………………………………………………………………….5
2.1.1. Business Model Canvas ……………………………………………………..…..5
2.1.2. Porter Five Forces ………………………………………………………….…..10
2.1.3. Turbulence Level ………………………………………………………………12
2.1.4. Discontinous Predictable Level …………………………………………….….13
2.1.5. Organizational Capability Change …………………………………………..…14

CHAPTER III – BUSINESS SOLUTION

3.1 Current Condition …………………………………………………………………...….15
3.2 Business Issue …………………………………………………………………………..17
3.3 Recommendation Plan ……………………………………………………………….…21
3.4 Implementation Plan ……………………………………………………………………25

CHAPTER IV – LESSON LEARNED

4.1. Lesson Learned From Problem Solving Activity ………………………………….…..29
4.2. Lesson Learned From Observation ………………………………………………….....29

REFERENCE ………………………………………………………………………………..…30
APPENDIX ……………………………………………………………………………………..31

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 LIST OF TABLES

Table 2.1 Porter Five Forces of Madtari Café ………………………………………..…………11

Table 2.2 Turbulence Level Cafe Industry………………………………………………………12
Table 2.3 Discontinuous Predictable Level …………………………………………………..…13
Table 3.1 Taxasion of Madtari (3 branches) ……………………………………………………17
Table 3.2 Expenses of Madtari …………………………………………………………………26
Table 3.3 Income Statement of Madtari ………………………………………………………...27
Table 3.4 Cashflow Statement of Madtari (2020) ……………………………………………....27
Table 3.5 Payback Period …………………………………………………………………….…28

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 LIST OF FIGURES

Figure 1.1 Madtari Café …………………………………………………………………….…...1

Figure 1.2 Madtari Café Food Menu ………………………………………………………..…...2
Figure 1.3 Madtari Café Drink Menu ……………………………………………………….…...3
Figure 2.1 Business Model Canvas Of Madtari Café ………………………………………..…..6
Figure 2.2 Value Proposition Canvas Of Madtari Café ………………………………………...7
Figure 2.3 Organizational Capability Change ……………………………………………..…...14
Figure 3.1 Point of Sales (POS) ………………………………………………………………..22
Figure 3.2 Tabletop Tablets ……………………………………………………………………22
Figure 3.3 Mobile Apps ……………………………………………………………………..…23
Figure 3.4 Mobile Charging ………………………………………………………………...….23

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 LIST OF APPENDIX

Appendix 1. Madtari Cafe Observation By Group 2 ………………………………………….….31

Appendix 2. Madtari Cafe Existing Condition ………………………………………………...…32

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 EXECUTIVE SUMMARY

Madtari Café was founded in 2000, they selling instant noodles (fried and boiled), and snacks such
as various snacks ranging from bananas, toast, and various other drinks. In the first 10 years
Madtari was street food vendor (PKL). The first Madtari Café stands on Ranggagading Street No.
10 Bandung. Before moving to Ranggagading Street, Madtari Café was in the area of Ir H Juanda
or Dago Street. In the middle of 2019, Madtari Café moved to Ranggagading Street No. 1A and
opened two other branches on Dipatiukur Street No.5a and Jatinangor Raya Street No.86 Bandung.

For Menu, Madtari Café has 426 menus namely Bread, Fried Rice, Meatballs, and Beverages.
Besides, Madtari Café has 96 indomie variants consisting of 48 noodles with standard size and 48
jumbo sized noodles with 6 different indomie flavors. The level of spiciness can also be adjusted
from level 1-6. Price for beverages start from Rp 3,500 – Rp 20,000 and food starting from Rp
6,000 – Rp 27,000.

Currently, Madtari Café needs to be improved and develop their aspects based on Organizational
Capability Theory and Discontinuous Predictable Level. To solve that problem, the author will
focus on developing the recommendations, such as: speed, innovation, customer connectivity,
adaptable to change, strategic alliance, efficiency, and talent so that the Madtari Café could survive
and compete against other competitors in the next five years.

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 CHAPTER I

INTRODUCTION

1. Background
The author ordered to develop and improve several aspects in order to make Madtari Café
survive and could compete against other competitors in the next five years. Therefore, Madtari
Cafe should implement several recommendations that is created by the author based on
Organizational Capability Change and Discontinuous Predictable Level theory. Before that,
here is the company profile introduction of Madtari Cafe.

1.1 Company Profile

Figure 1.1 Madtari Café

Madtari Café was founded in 2000, they selling instant noodles (fried and boiled), and
snacks such as various snacks ranging from bananas, toast, and various other drinks. In the
first 10 years Madtari was street food vendor (PKL). The first Madtari Café stands on

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Ranggagading Street No. 10 Bandung. Before moving to Ranggagading Street, Madtari
Café was in the area of Ir. H. Juanda or Dago Street. In the middle of 2019, Madtari Café
moved to Ranggagading Street No. 1A and opened two other branches on Dipatiukur Street
No.5a and Jatinangor Raya Street No.86 Bandung.

For Menu, Madtari Café has 426 menus namely Bread, Fried Rice, Meatballs, and
Beverages. Besides, Madtari Café has 96 indomie variants consisting of 48 noodles with
standard size and 48 jumbo sized noodles with 6 different indomie flavors. The level of
spiciness can also be adjusted from level 1-6. Price for beverages start from Rp 3,500 – Rp
20,000 and food starting from Rp 6,000 – Rp 27,000. The menus could be seen in the figure
below.

Figure 1.2 Madtari Café Food Menu

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 Figure 1.3 Madtari Café Drink Menu

1.2 Scope of Work

To fulfill the course report of Leading and Managing Organizational Change, the
authors ordered to take an observation by visiting Madtari Cafe and observe the current
condition which could arise as a business issue that has to be solved in order to make
Madtari Cafe survive and could compete against other competitors. According to our
observation, the real existing condition of Madtari Cafe is really concerned. There are
several things that should be developed and implemented better to make Madtari Cafe
become a cafe that could survive in the next five years.
Next process is the authors should analyze what aspects should be developed or
implemented better and have a big impact for Madtari Cafe itself if they do not develop
new strategies. After analyzing those aspects, the authors give recommendations based on

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 Organizational Capability Change and Discontinuous Predictable Level theory that
Madtari Cafe has been classified. This scope of work is done to help Madtari Cafe become
a better place and cafe in the new era.

1.3 Objectives of the Task

In this course report, the authors have successfully helped Madtari Cafe to achieve the
goals and survive in the next five years. Achievement of the goals motivate the authors and
Madtari Cafe also become a reference for completing the new project properly. The
following below are the objectives achieved by the authors in the course report:
• Main Objective
Authors can help Madtari Cafe to achieve the goals by developing new strategies
to change based on Organizational Capability Change and Discontinuous
Predictable Level.
• Academic Objective
Authors can add, develop, and apply knowledge learned in college to the real
implementation strategies for Madtari Cafe to complete the goals and prepare for
the future.
• Group Development
Authors can learn and build a great team for the future work in order to analyze and
give solution to change.
• Skills Development
Authors gains knowledge and improve the skills needed in the future.
• Personal Development
Authors learn to be disciplined, responsible, forward thinking, visionary, critical,
and creative as an individuals, also learn about time management, self-confidence,
increase knowledge and experiences in a professional work environment.

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 CHAPTER 2
BUSINESS ANALYSIS

2.1 Theoretical Framework

2.1.1. Business Model Canvas
In this course report, the authors used business model canvas to help visualize,
explain and assess to optimize the performance of the Madtari business. The
business model articulates logic and provides data, also another evidence that
demonstrates how the company creates and delivers value to customers. The
business model outlines the architecture of revenues, costs, and current profits
related to the value of the company. In short, the business model was defining how
the company creates and delivers value on the activities, and then converting the
payment received for the current profits. The innovation of business model enable
to be reached on the competitive advantage if the business model can be
differentiated, and difficult replicated by incumbents and new entrants. The
business canvas model can also help see the strength and weakness; the possibilities
to better and overcome the business issues. The authors provide the business canvas
model with the existing 9 connected elements which will be laid out below:

The Business Model Canvas – MADTARI

Key Partners Key Activities Value Proposition Customer Relationships Customer
Segments
• WINGS • Ads Online Media • Unique (new • “Warmindo
• Go Pay, Grab • Seminar/event menu) and Experience” • Milenial
• Ovo • Training for staff Affordable Price • Voucher/ free product and Gen Z
• Garasi Opa – • Marketing • Taste and Quality untuk complain
Supplier • HR • Big Capacity customer
• Finance • There are • Social media
Merchandise
• Food Supplier electrical plug relationship (Instagram,
that provide facebook)
• Song of the day with
charging cables
spotify
for any type of
• Free wifi internet
phone
access

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 Key Resources • RAMEAN Package Channels
(3 – 5 persons) • Ads Online Media
• Building • Comfortable • Word of Mouth
• Staff/waitress furniture and cozy • Foodies
• Technology vibe
• Food Quality
Ingredients

Cost Structure Revenue Streams

Fixed Cost : • Food and Beverages

• Depreciation • Parking
• Expenses • Merchandise
• Waitress

Variable Cost :
• Electricity
• Advertising and Promotions Activity
• Internet, telephone, office supplies

Figure 2.1 Business Model Canvas Of Madtari Café

1. Customer Segment :Customer segmentation is dividing a classifying customer types.

They are grouped into individuals or groups that are similar in specific ways. Such as age,
gender, interests, and habits. The other thing to know is the market size and how many
people and that many people there. It will be a help to understand the market perspective
from micro to macro. We must know more specific information to know customer
segment of our business, such as segment dimensions, segment composition and needs of
customers. Things consider customer segment of Madtari are Millennial and Gen Z.

2. Value Proposition: The fundamental of any business or product is the value proposition.
It is the concept of exchanging value between the business and the customer needs. Which
needs that already identified you want to fulfill. The following is the value proposition
canvas for Madtari .

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 Figure 2.2 Value Proposition Canvas Of Madtari Café

Value Proposition define :

• Unique (new menu) and Affordable Price
• Taste and Quality
• Big Capacity
• There are electrical plug that provide charging cables for any type of phone
• Comfortable furniture and cozy vibe
• RAMEAN Package (3 – 5 persons)

3. Channels
Channels are defined as the way through which customer becomes part of sales cycle. It is
includes entities we use to communicate our proposition to the segments as well. Generally,
it is covered under the marketing plan. The channels are :
• Ads Online Media
• Word of Mouth
• Foodies

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4. Customer Relationship
After knowing the value proposition and have developed characters to understand with our
customers. It is defined as how a business interacts with its customers. Customer
relationship is to clarify the engagement between the business and customers. It will be
help us how to define the operations as business and automatically identify the
opportunities, such as :
• “Warmindo Experience”
• Voucher/ free product untuk complain customer
• Social media relationship (Instagram, facebook)
• Song of the day with spotify
• Free wifi internet access

5. Revenue Stream
Revenue Stream are divined as the way by which our business coverts the value
proposition to customers need into financial gain. Accordingly, it is important to know
pricing of our business. To exchange the customer needs with purchasing it.
The revenue stream comes from :
• Food and Beverages
• Parking
• Merchandise

6. Key Activities
Key activities of business are the actions that undertakes to achieve the value proposition
of customers, such as :
• Ads Online Media
• Seminar/event
• Training for staff
• Marketing
• HR
• Finance

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 • Food Supplier

7. Key Resources
It is about what practical resources are needed to achieve the key activities (actions) of the
business. This means the resources that you need are required to do business.
These resources are :
• Building
• Staff/waitress
• Technology
• Food Quality Ingredients

8. Key Partnership
Key partners are the list of external companies, suppliers or parties we may need to achieve
our key activities and deliver value to the customer. They are such the value of the business
promises to customers that we should achieve, such as :
• WINGS
• GoFood, GrabFood
• OVO, Go Pay, Dana, Link Aja
• Garasi Opa – Supplier Merchandise

9. Cost Structure
It is defined as the monetary cost of operating as a business. Cost structure work to know
how the key activities drive our propositions and hence our revenue.
Fixed Cost :
• Depreciation
• Expenses
• Waitress
Variable Cost :
• Electricity
• Advertising and Promotions Activity
• Internet, telephone, office supplies

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2.1.2. Porter Five Forces
Porter's Five Forces is a business analysis model that helps to explain why
different industries are able to sustain different levels of profitability. The model was
published in Michael E. Porter's book, "Competitive Strategy: Techniques for
Analyzing Industries and Competitors" in 1980. The model is widely used to analyze
the industry structure of a company as well as its corporate strategy. Porter identified
five undeniable forces that play a part in shaping every market and industry in the
world. The forces are frequently used to measure competition intensity, attractiveness,
and profitability of an industry or market. These forces are:

1. Threat of New Entrants

The threat of new entrants is high. The number of entrants of this industry keep
increasing up allowing increasing number of market. It means however the
industry has high competition, but the market still large especially for Madtari
because many customers still like to eat instant noodles.

2. Bargaining Power of Buyers

The bargaining power of the buyers is high. The number of the players of this
industry increasing every year and each player bargain more innovative of product
or service. The consumers can easily move to other café when one café has not
enough satisfied them.

3. Bargaining Power of Suppliers

Bargaining power of the supplier is high. Madtari really depending on one
supplier, such as Indofood, but they can move to another supplier with the same
product such as Wings, ABC, and WICO.

4. Threat of Substitute Products

There are so many substitute products for café in Bandung, and the customer can
choose the substitute product if the price of the substitute is lower, has a better
quality, better facility and

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 service, or unique compared to the others. The substitute products are eating place
other than Madtari such as Upnormal and EatBoss.

5. Rivalry among Existing Competitors

The competition in this industry is very high, especially for the instant food.
Seeing the development of this industry in which showed an increase especially
on small medium enterprise, and product innovation that continue to create.
Therefore, the demand and supplies of instant food like Madtari are high as well.

Scale

Forces 1 2 3 4 5 Conclusion

Threat of New Entrants

Switching cost to competitor X

Government policy X

Capital requirement X High

Bergaining Power of Suppliers

Number of suppliers X

Suppliers's switching cost X

The importance of supplier product to buyer X High

Bergaining Power of Buyers

Switching cost to move to another brand X

Choice of brand X

Number of buyers X High

Threat of Substitude Products

Number of competitors with different products X

Switching cost to subtitute X High

Rivalry Among Existing Competitor

Number of equal competitors X

Barriers to exit X

Relative industry growth X High

Table 2.1 Porter Five Forces of Madtari Cafe

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2.1.3 Turbulence Level
Turbulence in organization is usually considered a negative property of an
organization’s environment. In a restorative mode, turbulence generates formative
spaces that are creative and have a regulating function, useful for organizational
productivity. Turbulence Level is scale occurs when organizational solutions found at
one level within one organization causes new problems of turbulence at another level
(within another organization). There are five levels of Turbulence, such as:
• Repetitive
• Expanding Slow Incremental
• Changing Fast Incremental
• Discontinuous Predictable Level
• Surprise - Discontinuous Unpredictable
The authors decided to choose Cafe Industry to make a Turbulence Level analysis
for Madtari Cafe. Turbulence Level analysis is shown in the figure below.

Table 2.2 Turbulence Level Cafe Industry

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 Based on Table 2.2, Turbulence Level result of Cafe Industry has a high score,
which is 3.3. This is shown that Cafe Industry needs to change and always have new
product innovation if they want to survive or compete against other competitors.

2.1.4 Discontinuous Predictable Level

Discontinuous Predictable Level is a tool that shown by a table that could
classified level of the business position. Discontinuous Predictable Level also could be
a tools to give or create recommendations for a better strategy. Turbulence Level result
becoming a data to analyze Discontinuous Predictable Level. Based on Turbulence
Level Cafe Industry Result, Madtari Cafe has 3.3 points. It means that Madtari Cafe is
classified into Level 4. The figure of Discontinuous Predictable Level is shown below.

Table 2.3 Discontinuous Predictable Level

Based on Table 2.3, Turbulence Level result of Cafe Industry has a high score,
which is 3.3. It means that Madtari Cafe is classified into level 4. In this level, the new
strategy that the cafe should be implemented is based on two aspects, such as:
1. Strategic Aggressiveness, which is for Madtari Cafe is Entrepreneurial.
2. Organizational Responsiveness, which is for Madtari Cafe is Environment
Driven and Seeks Related Change.

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2.1.5 Organizational Capability Change
Organizational Capability Change is the ability of an organization to plan, design,
and implement all types of change efficiently with committed stakeholders, causing
minimal negative impacts on people and operations, so that desired business and cultural
results from change are consistently achieved and integrated. There are nine elements
in Organizational Capability Change to be managed and implemented in order to
achieve company goals. Those elements are shown in the figure below.

Figure 2.3 Organizational Capability Change

Based on the Figure 2.3, Organizational Capability Change consists of nine

elements that should be managed and implemented. Those aspects are important in order
to stabilize the company and make the company achieve their goals. Organizational
Capability Change is also used as a tools to create a solution/recommendations for
company when they need to change. Turbulence Level becoming their input to be
processed.

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 CHAPTER 3
BUSINESS SOLUTION

3.1 Current Condition

A popular culinary destination in Bandung is Café Madtari. At night the cafe is visited as
a hangout. Open from 7am to 4am. Cafe Madtari is located on Jalan Rangga No 12, Bandung
north of West Java. There are also branches that are still in the area of Bandung, namely Teuku
Umar Street No. 1, Jalan Surapati No. 72, and Jalan Dr. Otten no 11 Bandung. But now they
only have 2 branches due to decreasing income, they are placed in Jl. Dipatiukur and Jl. Raya
Jatinganor.

Madtari Café is famous for its dishes with abundant cheese. Café Madtari has favorite
menu such as toast, various processed bananas, and instant noodles. There are also other dishes
such as fried rice and meatballs. Madtari also provides warm drinks such as Bandrek, Bajigur
and Wedang Jahe which are suitable for the breezy air of Bandung. The menu prices here vary
from IDR 5,000 to IDR 30,000.

Madtari has been ordained as one of legendary culinary spots in Bandung for almost 15
years. They gained enormous popularity among students and couples who seek an alternative
choice of food and beverages. Upnormal, who established in 2014 starting to disrupt Madtari
and become one of their main competitors as a “cheap and cozy” cafe. Nowadays, Upnormal
has already overcome Madtari’s success with their innovative branding strategy. Madtari start
to lose their customer and the cafe becomes quiet. They still had some loyal customers but
not as many as previous years.

They try to rejuvenate their looks by moving to another place, not far from their original
location and serving a minor change in interior design. Unfortunately, these changes still could
not help them to follow up the success of Upnormal. Red paints are very dominant inside the
cafe and there so many electric plug in case their customers want to hang out for a while and
doing their assignments. Indomie’s logo was printed on every table as it thair main supplier
for its trademark menus.
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 Based on a survey conducted in Cafe Madtari's financial management using a financial
system of its own capital (funding) so that in their financial system there is no such thing as
profit sharing (dividends) and investments. So it only has one owner or also called a trading
business (UD). In calculation, revenue generated per day around Rp 10 million - Rp 12 million
for one place of sale. But now the income is decreased around 50 percent, which is around 5-
7 million rupiah.

The following is the perspective of Human Resources (HR) management at Cafe Madtari :
• Recruitment
For the process of recruiting employees in Madtari by word of mouth, for example Madtari
needs employees, it will be notified to the closest relatives and neighbors who can be
invited to work together.
• Selection
They do not prioritize requirements that are too specific, which is important, clear personal
data and their age must be above 17 years. More importantly in need for a job and want to
work.
• Placement
Employee placement is divided into three, namely:
✓ The Kitchen Section is the process for processing raw materials from types of
noodles, bread, bananas and drinks.
✓ The waiter part is the part waiting for visitors and delivering food and cleaning the
table.
✓ Cashier Section is a place to serve the payment of food that has been ordered.

Here are the taxation of their financial condition per month from three branches:

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 Table 3.1 Taxasion of Madtari (3 branches)

From the data above, the total profit per month from the three branches are Rp
250,320,000. Based on Regional Regulation No. 11 of 2011, regarding Restaurant Tax,
Madtari has not met the qualifications to get theax. This is because Madtari's profit per
month does not meet the qualifications of the minimum determination.

3.2 Business Issues

Here are the business issue that we found in our observation of Madtari Cafe:

• Expensive Price with Mediocre Product

1. The three Madtari branches are located in well-known campus areas, but the prices
offered are a bit pricey, with a price range of 20 to 50 thousand rupiahs, even though
the products offered seem 'ordinary'.
2. They seem to use Integrated Cost Leadership as their main strategy (based on their
price for the last 3 years and have almost 426 variety products), but sadly that
strategy becomes more ineffective along the time, simple because they are unable
to compete with their competitor such as Eat Boss and Upnormal that able to bring
more variant and interesting product than Madtari with similar price, and Madtari

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 behaviour to periodically increasing their price without offering new product or
better service, because of that, in the past year they unable to attract their primary
consumer, which is college students (based on their branch location).

• Unfriendly and Unprofessional Waiter

1. Madtari waiter was unable to show a friendly attitude towards their customer, and
unable to prioritize customer needs than their own, example: when customers need
their assistance, some of the waiter still talk with other waiter even though they saw
that the customer need help with something.
2. They rarely smile and show welcoming attitude to the customer.
3. They don’t dress appropriately. The drifters uniforms are less neat and do not look
like cafe waitresses, some don't even wear uniforms.

• The Waiting Time

1. The average time customers had to wait for their order was more or less 20 minutes
for the snack, and 15 minute for the drinks.
2. The longest time customer had to wait was 30 minutes, in which case the product
that been ask was Mie Goreng Jumbo Interjuned and ‘Pisang Susu’ even thought
the place at that time wasn’t that crowded.
3. Then observers go for prying their musholla, we saw the kitchen was quite small
compared to the maximum capacity of customer, therefore explaining the long
waiting time.

• Lack of Parking Space

1. Even though Madtari had enormous capacity (approximately Madtari Taman Sari
can hold up to 150 customers, Madtari DU up to 30, and Madtari Jatinangor up to
60), they don’t have enough space for the parking spot, solidifying the idea that they
main target was college student from nearby university that can came to their place
by foot.

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 2. Madtari Taman Sari can hold up to 3 cars and 7 motorcycle, Madtari DU don’t have
a parking space, and Madtari Jatinangor with the biggest parking spot can hold up
to 6 cars and 20 motorcycles.

• ‘Bakso’ Style Cafe

1. To maximise the holding capacity of customer, Madtari employ the ‘Warung
Bakso’ interior design with uncomfortable plastic chair and adjacent table distance.

• Messy Room Layout

1. Madtari place their inventory such as rack of soft drinks, dozens of rice bag, dozens
of noodle package, and etc. in open place that can be seen by the customer while
they are eating.
2. Customer can also saw their messy kitchen when they had to go to the toilet or
prayer room.
3. Some of the table was practically been placed in front of the toilet and the kitchen.

• Customer Had to Manually Order and Ask the Waiter To Take Their Order
1. Waiter gave the customers their menu and a piece of paper for them to list their
orders.
2. It took awhile for the waiter to come to the table after the customers done listing
their orders although they already called.
3. The waiter sometimes still come back to the table to make sure what the customers
wrote in the order paper.

• 24 Hours of Unwanted Facilities

1. Even though their biggest marketing strategy was the right place to hangout and do
your homework for long period of time, Madtari don’t have the appropriate facility
to support that claim.
2. They have free WiFi but we cannot connect to id, they don’t have electric plug stack
outlet for every table.

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• Irregular Maintenance Time
1. Maintenance of facilities with uncertain time makes visitors feel uncomfortable
because it is noisy and affects their appetite.
2. Payments are still made conventionally (not using POS) and there is no cashless
platform available.
3. Consumers have limited choices for payment methods because they are only done
in cash.
4. A manual payment method that is impractical makes the cashier have to count
orders manually and is prone to making mistakes, especially when there are enough
orders at one time.
5. There is no appropriate proof of payment because it is only in the form of
handwritten paper.

• Customer Had to Manually Order and Ask the Waiter To Take Their Order
1. The menu list is difficult to read (the menu writing is too small and too much).
2. The menu is made up of several categories per page in order to save costs in its
making, but this is quite disturbing to visitors because of the small writing.
3. Some of the foods written in the menu books are duplicated so that it is quite
confusing.

• The Menu Offered is Less Varied and There is No Product Innovation from The Year
They were Established
1. The menu choices, although quite a lot but tend to be monotonous and can be found
in similar eating places (no or only a little differentiation).

• Although There are Changes and Developments in Terms of Interior Aesthetics, the
Atmosphere of The Cafe is Still Not Enough to Make Visitors Comfortable to Linger
There
1. There is no separate room for smokers so the smoke can disturb other visitors who
don't smoke.

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 2. The layout of the chairs and dining table is quite close together so the room feels
quite narrow.
3. There needs to be an improvement in terms of interior aesthetics so that there is a
special experience for visitors.

• The Taste of Food and Drinks Sometimes Tastes Bland

1. This is quite often the case with some visitor experiences so they are considering
returning to come again or not.
2. There needs to be a separate operational standard so that services to the customer
can be maximized.

3.3 Recommendation Plan

To solve the problem that arises in Madtari Cafe, authors create several
recommendations based on Organizational Capability Change and Discontinuous
Predictable Level theory. According to our analysis, from nine elements of Organizational
Capability Change, there are seven recommendations that we proposed, such as:

1. Recommendation For Speed

• Providing financial technology platforms such as OVO, Go-Pay and Dana.
• Make the menu type simple and easy to understand so that consumers do not
experience confusion that will hinder the ordering process.
• Recruit job candidates who are adept at serving. (The number of workers is not
much so that the services provided are not convoluted).

2. Recommendation For Innovation

• Add point-of-sale (POS) system. The best digital point-of-sale (POS) system is a
cloud-based model that acts as an operational platform for staff: waitstaff take
orders, the kitchen instantly receives them, and cashiers process customer
payments. The benefit of POS are reporting features offer in-depth analysis that

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 helps owners and managers make data-supported decisions to improve operations
such as which items are selling best or poorly, eliminating guesswork.

Figure 3.1 Point of Sales (POS)

• Implementation of Tabletop Tablets/Kiosk to browse the menu, send orders directly

to the kitchen, and pay the bill without the need of a live server. Other enhancements
may include video games to make customer enjoy while waiting they food.It can be
eliminate incorrect orders and food waste that often come with orders made over
the tablets.

Figure 3.2 Tabletop Tablets

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• Create Madtari Mobile Apps. There are so many mobile apps (and so many free or
inexpensive ones) that they’re a great place to start for companies on a budget. One
app that many cafes overlook is an engaging loyalty program that incentivizes
customers with points and freebies that makes inexpensive marketing; additional
customer spending or return visits; less time taking live reservations; timely seating
reminders using push notifications.. Apps also notify customers about specials,
events, and coupons.

Figure 3.3 Mobile Apps

• Providing mobile charges for all types of mobile phones at the charger corner, so
the customer will have no worries if they forgot to bring the mobile charger.

Figure 3.4 Mobile Charging

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3. Recommendation For Customer Connectivity
• Provide good WiFi quality, because in this era, this is the most needed in a cafe. If
this can be fulfilled, customer satisfaction will be created which results in a good
impression then turns into engagement and arises good customers connectivity.
• Waiter training is very necessary so that the waiter can serve customers well. This
is very important because if the customer is well served then they will feel valued
and create convenience and long-term customer satisfaction.
• Improve the presentation equipment (according to the type of food and not just
any), because serving the wrong tableware will cause a bad impression for the
customer and the customer feels not served well which then has an effect on the
loss of the customer.
• Comfort, safety, and cleanliness of the place is another aspect of customer
connectivity because if the cafe provides those aspects, it will make the customer
happy to be in that place and create customer loyalty and satisfaction.
• Create and update good content of social media so that people can easily attracted,
besides, create unique promotion and provide more information about the cafe that
announced through social media (not using konvensional way anymore). This step
will create strong customer connectivity.

4. Recommendation For Adaptable To Change

• Put music on the outlet through aux cable using Spotify/Joox.
• The interior should be adjusted to the Madtari’s theme, but still emphasizes
contemporary accents, for example instagramable 90's theme.
• Provide special delivery services using the application, where prices offered are
cheaper than merchants.

5. Recommendation For Strategic Alliance

• Madtari Cafe partnering with WINGS FOOD product as they supplier and partner.
Madtari Cafe not only use noodles from Wings, but also other Wings products, such
as: soy sauce, chilli sauce, drinks, etc to support the business and becoming a point
of difference among competitors.

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 6. Recommendation For Efficiency
• Using sophisticated waiter caller technology called iServe Wireless Waiter Calling
System attached to each table, so customers do not need to shout or wave to call
the waiter, reduce waiting time, respond to wait for customers faster, increase brand
image cafe, and reduce operational costs in terms of labor costs.
• Provide the takeaway spot, so all take away orders can take place quickly.

7. Recommendation For Talent

• Submission of SOPs for employees is needed so that they are fully aware of the
importance of this to the experience of consumers in the future with their work
power.
• Instilling awareness in employees to create a comfortable atmosphere for
consumers, especially in cleanliness.
• The right work ethic in serving consumers. Focus on activities related to work,
uphold professionalism.
• Send people to monitor spontaneously every period of time in order to witness the
work environment naturally and as it is at that time. This will make it easier to
assess recent employee performance.

3.4 Implementation Plan

Based on the Business Issue presentation and recommendations that have been
conveyed in the previous chapter, we hope that the recommended plan that has been
proposed can help Madtari to update their product innovations and outlet concepts. In
addition, doing strategic alliance with WINGS FOOD is felt to be very helpful to Madtari
in facing the tight competition in the culinary business.
Based on our recommendations plan that have been proposed, we also provide an
overview for initial funding and financial projection for a year if our recommendations are
implemented, here are the details :

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3.4.1 Expenses

Table 3.2 Expenses of Madtari

3.4.2 Sales Forecast and Income Statement

Assumption: Per day every customers who comes to Madtari will spend as much
money Rp 40.000 and 100 persons visits the outlets. So from one
branch we got Rp 4.000.0000,- and for the three branch we got Rp
12.000.000/ day x 30 days = 360.000.000.

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The following are projections for Madtari's Income statement and Cash Flow
statement in 2020;

Table 3.3 Income Statement of Madtari

Table 3.4 Cashflow Statement of Madtari (2020)

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 The amount of our cash at the end of the period in 2020 for the most-likely
projection is Rp 5.534.800.000,- .

3.4.3 Payback Period

Table 3.5 Payback Period

From the data above shows that with an investment of Rp1,600,000,000, the pepriod pay back falls
in the 6th month of 2020 (1st year).

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 CHAPTER 4
LESSON LEARNED

4.1. Lesson Learned From Problem Solving Activity

To fulfill the task of Leading and Managing Organizational Change, the authors are
given a deadline to complete the task in less than a week. The task given consists of analysis
and problem solving. To solve the problem, the authors must first make observations to the
place, namely Madtari Cafe. Through these observations, an analysis based on the theory
of Organizational Capability Change and Discontinuous Predictable Level is obtained as
the main reference in solving problems.

Problem solving requires an idea that is creative, solutive, and innovative as related to
the theory that states that Madtari Cafe's recommendations must be entrepreneurial,
environment driven, and seek related change. This problem solving is also done by groups
where everyone in the group must be able to give ideas. This recommendation is given so
that Madtari Cafe can survive in the next 5 years and can compete with its competitors.
This recommendation is needed and should be implemented by Madtari Cafe to be able to
change for the better in the future and keep up with the new era.

4.2. Lesson Learned From Observation

After observing in Madtari Cafe, the authors can see the process and procedures done
in Madtari. From the observation day, the authors have deep thoughts about how important
it is for a business to have such standards in the aspect of employment, ambience and
services towards customers. For the employment aspect, it is vital to hire or recruit workers
who are potential and understand work ethics in the workplace. To earn customers’ loyalty
is by treating them as how they should be and with respect. For the ambience aspect, to
give the customers the feeling of comfort by having the impression of hanging out in a
place with cleanliness. In the aspect of services, the most important thing is to show
efficiency from the worker towards the customers; from showing them the available seats,
giving the menu and taking orders until serving.

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 REFERENCE

Hitt, Ireland & Hoskisson (2015). Strategic Management. Singapore, Cengage Learning Asia.
Osterwalder & Pigneur (20100. Business Model Generation. Canada, John Wiley & Sons.

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 APPENDIX

Appendix 1. Madtari Cafe Observation By Group 2

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Appendix 2. Madtari Cafe Existing Condition

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