STRATEGIC MANAGEMENT

END OF SEMESTER EXAM 2020/2021

STRATEGIC MANAGEMENT ANALYSIS IN

PT MITSUBISHI MOTORS KRAMA YUDHA SALES INDONESIA

Arranged by:
Susanti (1842126)
Fina Fiorentini (1842132)
Merry Agustina (1842133)
Kennily Kho (1842135)

ACCOUNTING STUDY PROGRAM

ECONOMY FACULTY
UNIVERSITAS INTERNASIONAL BATAM
BATAM
2021
 ABSTRACT

Economic growth in Indonesia is influenced by various factors. The main ob

jective of this research is to analyze how the foreign investment business in Indon
esia. The foreign investment company that is the subject of the discussion in this p
aper is the Mitsubishi Group. This research is about Business Development Analy
sis at Mitsubishi. A foreign investment company is an attractive company because
it has a large market share but a unique strategy is needed in order to survive in th
e industry. This research is a qualitative research, namely library research using se
condary data which can be obtained from the available literature. The results of thi
s research indicates that Mitsubishi has implemented multi-domestic strategy and
transnational strategy that integrates cost leadership, product differentiation and fo
cus to help maintain its position as a foreign investment company in Indonesia.
Mitsubishi achieves its competitive advantage by applying differentiation strategy
and a focus strategy which are used to develop non-existing products and existing
products. Mitsubishi has also signed a basic agreement to form a strategic alliance
with Nissan. Mitsubishi is using functional organizational structure which is
divided based on their functional specialization that is responsible for the
organizational structure of the company such as the PPC, Quality, Production, etc.
and the President Director, Naoya Nakamura is the key person in Mitsubishi. Mits
ubishi analyzes existing competitors so that they can shape the company's competi
tive advantage either with the strategy implemented or through the diversification
of its business. Mitsubishi always makes updates to its platform so that it can adap
t to consumer needs, especially during the Covid-19 pandemic.

Keywords: Foreign Investment, Mitsubishi, Competitive Advantage,

Organizational Structure, Key Person.

i
 PREFACE

Praise and thank to Almighty God who has given us His bless and grace so t
hat we can finish this mini paper assignment properly, as a requirement for passin
g the end of semester exams in the Strategic Management course with the title
“Strategic Management Analysis in PT Mitsubishi Motors Krama Yudha Sales
Indonesia”.
The authors also deliver gratitude to Mr. Adi Neka Fatyandri,. MBA., the
strategic management lecturer, for his guidance so that authors can complete this
mini paper. Authors realize that this mini paper is still far from perfect in terms of
its composition, language, and writing. Therefore, we really expect criticism and s
uggestions from all readers to become a reference so that we can be even better in
the future.
Hopefully this mini paper can broaden the readers' insight and can be useful
for the development and improvement of science.

Batam, 21 May 2021

Authors

ii
 CONTENTS
ABSTRACT.............................................................................................................i
PREFACE...............................................................................................................ii
CONTENTS..........................................................................................................iii
INTRODUCTION..................................................................................................1
1.1 Company Profile........................................................................................1
1.1.1 Company History...............................................................................1
1.1.2 Vision and Mission of the Company..................................................3
1.1.3 Organization Structure.......................................................................3
1.1.4 Mitsubishi’s Business Process.........................................................10
1.2 Purpose and Benefits of Research...........................................................12
1.2.4 Purpose of Research.........................................................................12
1.2.5 The Aims of Research......................................................................12
CHAPTER II........................................................................................................13
LITERATURE REVIEW....................................................................................13
2.1 International Strategy..............................................................................14
2.2 Cooperative Strategy...............................................................................15
2.3 Organizational Structure and Control......................................................15
2.4 Corporate Governance.............................................................................15
2.5 Strategic Leadership and Entrepreneurship.............................................16
CHAPTER III......................................................................................................17
RESEARCH METHODS....................................................................................17
3.1 Type of Research.....................................................................................17
3.4 Object Research.......................................................................................17
3.3 Data Collection Methods.........................................................................17
CHAPTER IV.......................................................................................................18
ANALYSIS AND DISCUSSION........................................................................18
4.1 The types of international strategies used by PT Mitsubishi Motors
Krama Yudha Sales Indonesia (MMKSI) to be able to expand business in
Indonesia and the reason of why PT Mitsubishi Motors Krama Yudha Sales
Indonesia (MMKSI) choose Indonesia as its expansion destination.................18
4.2 How can the company compete and gain a competitive advantage with lo
cal competitors?.................................................................................................19
4.3 Does the company carry out a collaborative strategy, for example an allia
nce strategy? If so, with what companies and how do they share the resources, c

iii
 apabilities and core competencies of each company? If not, give your recomme
ndation which company should collaborate with / collaborate with?....................
19
4.4 What is the organizational structure of the company, and how does the h
ead office exercise control over companies located in Indonesia / other countrie
s? 21
CHAPTER V........................................................................................................25
CONCLUSION AND RECOMMENDATION.................................................25
5.1 Conclusion...............................................................................................25
5.2 Recommendation.....................................................................................26
BIBLIOGRAPHY................................................................................................27
DIVISION OF TASKS........................................................................................29

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 CHAPTER I
INTRODUCTION

1.1 Company Profile

PT Mitsubishi Motors Krama Yudha Sales Indonesia (MMKSI) as the offici
al distributor of Mitsubishi Motors vehicles in Indonesia, both passenger vehicles
and light commercial vehicles. Mitsubishi Motors vehicles have been present in In
donesia for more than 40 years. As of April 1, 2017, PT Krama Yudha Tiga Berlia
n Motors (KTB) conducted business restructuring and transferred the distribution
business of passenger and light commercial vehicles for the Mitsubishi Motors bra
nd in Indonesia to PT Mitsubishi Motors Krama Yudha Sales Indonesia (MMKSI).
This line of business is engaged as an official distributor of Mitsubishi Indonesia
vehicles from Mitsubishi Motors Corporation (MMC).
The shareholders of PT Mitsubishi Motors Krama Yudha Sales Indonesia
(MMKSI) are Mitsubishi Corporation, PT. Krama Yudha, Mitsubishi Motors Cor
poration. Mitsubishi offline address is on Jl. Jend A. Yani, Pulo Mas Project, East
Jakarta 13210.
1.1.1 Company History
PT. Mitsubishi Krama Yudha Motors and Manufacturing (MKM) is located
in Jakarta and was established based on the notary deed of Eliza Pondang dated
August 3, 1973 No. 17 of the deed of establishment and its amendments were
approved by the minister of justice with a decree No. Y. A. 5/362/19 dated 11
June 1981 and published in an additional State Gazette No. 103 dated December
26, 1981, additional No. 1029 / 1981. (company source)
As for PT. Mitsubishi Krama Yudha Motors and Manufacturing is a
company with foreign investment (PMA), in this case in collaboration with Japan
with its shareholders consisting of:
1. PT. Krama Yudha, Indonesia : 18.2 %
2. PT. Krama Yudha Tiga berlian Motors, Indonesia : 17.2 %
3. Mitsubishi Corporation, Japan : 32.3%
4. Mitsubishi Motors Corporation, Japan : 32.3 %

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The joint venture agreement (Joint Venture) occurred on January 18, 1973
between PT. Krama Yudha (KY), Mitsubishi Corporation (MC) and Mitsubishi
Motors and Manufacturing which then on May 19, 1973 established PT.
Mitsubishi Krama Yudha Motors and Manufacturing which has an authorized
capital of $ 42,866,250 and a paid-up capital of $ 42,866,250.
Construction of the factory building began on January 14th, followed by the
supply of machinery and equipment in May. Construction of the factory was
completed within four months. Trial production began in mid-October 1974
which lasted for several months, while commercial production began on 6 January
1975.
PT. Colt Engine and Manufacturing (CEM) was founded in December 1982
where the company is a joint venture also between Indonesia and Japan, namely
PT. Mitsubishi Corporation and Mitsubishi Motors Corporation. In March 1983,
PT. Colt Engine and Manufacturing began production, commercial production
began in 1985.
On January 1, 1988, PT. Mitsubishi Krama Yudha Motors and
Manufacturing has merged with PT. Colt Engine and Manufacturing is called
MKM I (Stamping Plant) and PT. Colt Engine Manufacturing is called the MKM
II (Engine Plant). The reasons for the merger were, among others, to be efficient.
At the time of the merger, the share ratio between the Indonesian and Japanese
parties was 35.4% and 64.6%. In MKM I (Stamping Plant) with a land area of
63,400 m2 and a building area of 20,750 m2, it produces vehicle body
components and MKM II (Engine Plant) with a land area of 86,460 m2 and a
building area of 13,608 m2, produces vehicle engine components. As for the
development of PT. MKM, after being able to make engine components such as
Crank Shaft, Connecting Rod, Cylinder Head and Cam Shaft. In 1997, other
engine components began to be manufactured, namely the Transmission Case and
Extension Housing for the Colt L300 and Horse types. In 1998, the export of
engine components, namely Cylinder Head, Crank Shaft and Connecting Rod,
was started to Japan. Then in 1999 the body components were exported to the
 3

Philippines. And in 2000 the export was carried out for transmission to the
Philippines.
1.1.2 Vision and Mission of the Company
Mitsubishi's vision is to make a global company by producing and surviving
the tough competition and emerging in the Asian market which is growing very
well, and managing a safe and advanced factory by implementing QCD (Quality,
Cost, Delivery) control by having responsibility for environment and put top
priority to gain consumer trust. Apart from that, the company's vision also
increases satisfaction for Shareholders, Shareholders, Government, Directors, and
all employees.
In achieving the vision that has been made, Mitsubishi makes a company mission,
namely:
1. Decrease costs
2. Quality improvement
3. Supervision of delivery schedules
4. Make smooth and good preparations for new capital products
5. Improvements in management, safety and the environment
1.1.3 Organization Structure
An organization is an association of individuals who work together to
achieve the same goal. When two or more individuals cooperate in the work
effort, one of them must direct the group activity; otherwise they will work as
individuals with goals opposite to one another. Thus there needs to be direction
from one source to coordinate these groups.
A good organization should tend to reduce the number of management
problems that arise, keep efforts to a minimum, reduce tensions and disputes in
the organization, increase teamwork to be more effective and keep operating costs
to a minimum and show a smooth, flexible work flow in order to adapt to
developments that occur in the business world today and steady control so that the
organization can run well
The main objective of the production organization in the factory is to
develop team workers who serve as the sole instrument for low-cost production.
 4

Department activities in the business are held to obtain maximum and efficient
results. From the bottom to the top, each member of the organization must be
mobilized to achieve maximum results in his own work, coordinate cooperation
with other departments and generally generate the necessary team spirit.
Form of organizational structure of PT. Mitsubishi is a functional form. This
can be seen from the functional specialization that is responsible for the
organizational structure of the company such as the PPC, Quality, Production, etc.
In the organizational structure mainly describes:
1. The levels of management within the company, the degree and position of
each function
2. Streamlining cooperation between functions
3. Make it easy to control the efficiency of each function so that it can assist
management in management control in making decisions
4. Describe the work relationship that exists between one function and another
5. Guidelines and standards used in the preparation of written procedures
regarding business activities.
PT. Mitsubishi Krama Yudha Motors And Manufacturing (PT. MKM) has
the highest leadership held by the President Director who is assisted by three Vice
Presidents and five Directors. Where each director in charge of several
departments.
 5

Graphic 1 PT MKM Organizational Structure

1. Board of Director
President Director, Senior Executive Advisor, Vice President Director and
Director at PT. MKM is referred to as the Board of Directors, they collectively ha
ve the duty and authority for the progress of PT. MHM, namely:
a. Create an annual company quality policy.
b. Make the company's annual quality goals.
c. Select a management representative
d. Conduct a monthly review of the achievement of quality objectives.
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e. To review the results of the internal audit of the product, the process and the
external internal audit of the quality management system.
f. Conduct a self-help study.
2. Human Resources Development Department (HRD)
a. Responsible for activities and work results in the Human Resources Depart
ment.
b. Responsible for industrial relations.
c. Responsible for procurement and employee development.
d. As a company representative in Bipartite negotiations, and liaise with gover
nment agencies.
e. Responsible for improving employee skills and knowledge.
f. Responsible for employee discipline.
g. Establish good cooperation between companies.
Authority:
a. Establish policies for the HRD department.
b. Establish employee knowledge and skill measures.
c. Has the authority to enforce employee discipline.
3. General Affair Department
a. Responsible for activities and work results in the department.
b. Responsible for employee welfare
c. Responsible for the safety of employees and company assets.
d. Establish good cooperation between companies.
e. Responsible for general administrative duties.
f. Responsible for servicing the needs of employees at work.
g. Responsible for the needs of facilities and infrastructure.
Authority:
a. Establish department policies in company order and security.
b. Establish company policies in group cooperation on general and personnel
matters
c. Authority over employee discipline.
d. Determine the need for administrative support facilities.
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e. Determine and approve the service needs of employees at work.

f. Determine and control the needs of facilities and infrastructure.
4. Marketing Department
a. Responsible for measuring and controlling purchases in both the domestic a
nd foreign markets.
b. Responsible for purchasing sub material and equipment from domestic supp
liers / agents.
c. Responsible for and controlling the purchase of raw materials, imported equ
ipment and tools.
d. Carry out sales and purchase reporting controls.
e. Responsible for the procurement of Local Part / new location.
f. Stock Control
Authority:
a. Perform vendor selection and decide and negotiate prices.
b. Evaluating supplier prices, supplier payments and issuing purchase orders.
c. Verify material prices and monitor the stock levels of materials
d. Provide recommendations regarding stock conditions and material order pla
ns.
5. Localization Process Department
In essence, this department has responsibility for plant location extensions t
hat are related to projects that will be carried out only having a department head.
6. Controlling Department
Responsible for activities and work results in the Controlling department, su
ch as:
a. Responsible for creating sales reports.
b. Responsible for making company budget reports.
c. Monitoring expenses.
d. Monitoring income.
e. Responsible for the company's financial activities.
f. Responsible for any problems related to payment.
g. Issue a report on the company's total revenue.
 8

Authority:
a. Organize and organize Controlling department activities.
b. Authorized to assess the performance of employees of all departments.
c. Authorized to make decisions regarding all transactions in the company
7. Production Stamping Department
Creating a system, among others: production control, quality control, safety
control, sub material control, machine and tool control, man power control, educat
ion.
8. Production Engine Department
a. Planning and controlling all aspects of production management to ensure sm
ooth production output according to schedule.
b. Guarantee the quality of production.
c. Prioritizing customer satisfaction with predetermined standardization.
Authority:
a. Increase productivity
b. Optimizing human resources
c. Minimizing the distribution of production costs
d. Carry out an efficient production system improvement
e. Maintain the safety and health of workers
f. Maintain a working climate related to production employees
9. Production Planning and Controlling Department
a. Responsible for production planning and supervision which includes: Comp
lete knock down, materials, Sub contracts, and vendors, production produce
d by the Stamping factory and Engine factory, domestic and Export Deliver
y.
b. Responsible for the infrastructure needs of planning and production supervis
ion at the Stamping and Engine factory.
c. Responsible for the implementation of duties and production supervision at t
he Stamping and Engine factory.
Authority:
 9

a. Authorized to determine matters relating to planning and controlling the qua

ntity of production and delivery.
b. Authorized in managing and managing the infrastructure needs related to pl
anning and controlling the quantity of production and delivery at the Stampi
ng and Engine factory.
c. Authorized in assigning tasks to planning and controlling the quantity of pro
duction and delivery at the Stamping and Engine plant.
10. Production Engineering Department
a. Total management of work in the department.
• New product relaxation process, new model / change model.
• Implementation of changes in goods.
• The process of creating a master schedule.
• Die / jig manufacturing and maintenance.
• Die / jig / pallet / layout process design and cost estimate.
• Jig machining.
b. The total job leader in the department.
c. Monitoring the total work in the department.
d. Evaluate the total work in the department.
e. Budgeting and investment.
f. Promotion man power total department.
Authority:
a. Approval planning and report section.
b. Deciding the implementation of work.
c. Correction of mistakes / lack of implementation.
d. Implementation of departmental improvements.
e. Decide on the department's budgeting system
f. Approval of promotion man power.
11. Quality Engineering Department
a. Analyze and evaluate new product realization activities to achieve product q
uality in accordance with agreed standards.
 10

b. Report the activities in the relevant section and evaluate the activities for cor
rective action in order to achieve the department's quality objectives and co
mpany quality objectives.
c. Submit information from the Department Head to the Sub Section Head.
Authority
a. Deciding the quality of the results of a product during the new product realiz
ation activities.
b. Decide product quality against parts that come out of specifications / standar
ds.
c. Decide overtime activities in his section.
12. Maintenance Improve Valuation ( MIV ) Department
a. Make progress reports on company policies and assessments.
b. Making progress reports on PT. MHM on the quality management develop
ment system.
c. Making progress reports on PT. MHM on the application of the managemen
t system.
Authority:
a. Company policy on ISO 9001: 2000, ISO 14001: 1996, TPM and safety.
b. Establish company goals and objectives regarding ISO 9001: 2000, ISO 140
01: 1996, TPM safety.
c. Provide reassessment of ISO 9001: 2000, ISO 14001: 1996, TPM and safety.
d. Monthly meeting.
e. Management Review.
1.1.4 Mitsubishi’s Business Process
PT. Mitsubishi Krama Yudha Motors and Manufacturing (MKM) is a comp
any that produces components for vehicles, both components for vehicle bodies an
d components for vehicle engines, therefore its activities are divided into 2 parts, e
ach of which produces different production, as for these parts are:
1. Stamping Factory (MKM 1)
 11

This factory produces components for vehicle bodies and frames, where the
activity is to manage metal plates from cutting, pressing to assembly to produce hi
gh quality vehicles. The resulting components for example:
a. Vehicle bod
b. Chassis
c. Steering
d. Fuel Tank
e. Exhaust pipe
f. Muffler
2. Engine Factory (MKM2)
This factory produces various components for vehicle engines. In this factor
y also assembles machine components both locally and from outside into one mac
hine that is ready to use with high quality. The resulting components are for exam
ple:
1) Machining Line
a. Cylinder Head
b. Crank Shaft
c. Cylinder Block
d. Connecting Rod
e. Cam Shaft
f. Transmission Case
g. Extension Housing
h. TD transmission
i. Differential Case
j. Yoke
k. Axle font
2) Engine Assembly Line
a. Assembly Line 1: 4G15,4D56,4G17
b. Assembly Line 2: 4D34 TD, 6D16 EURO
c. Transmission Assembly: TM TD, TM SLD
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1.2 Purpose and Benefits of Research

1.1.4 Purpose of Research
The purposes of this paper are to analyze Mitsubishi's business development
in Indonesia.
1.1.5 The Aims of Research
The aim of making this paper is that it can be used as teaching material in th
e field of education and research.
 CHAPTER II

LITERATURE REVIEW
Strategy is a way, tactics, techniques, tactics, tips and knowledge in utilizing
all sources that contain an outline of the direction that a person takes to act in
order to achieve predetermined goals and objectives. In general, strategy can be
interpreted as a set of options for planning and implementing a series of action
plans and allocation of resources that are important in achieving goals by taking
into account the competitive, comparative, and synergistic advantages of
sustainable ideals towards the ideal, long-term perspective of the individual or
organization. (Yeni et al., 2019)
Lombardi et al., (2020) in his paper demonstrates how the core resource,
"the entrepreneur," influences the performance of SMEs in a competitive world.
The entrepreneur's entrepreneurial mentality, culture, and leadership are important
and partly replicable. They allow strategic management to search out
opportunities and innovate, resulting in competitive advantages and wealth
creation.
Sendouw & Soepeno, (2018) in his research titled “Promotion Strategies
And Effective Distribution Channels To Increase Sales Volume At PT. Astra”
stated that Astra has touched various aspects of the nation's life through the
products and services it produces. The research objective was to determine the
effect of promotion and effective distribution channels in order to increase sales
volume at PT. Astra Internasional Daihatsu Manado. This study uses an
associative research method. The data analysis technique used multiple linear
regression analysis, with the classical assumption test, and the goodness of fit test.
The results showed simultaneously the promotion strategy and distribution
channels had a positive and significant effect on sales volume.
Taroreh et al., (2018) study's findings show that PT. Bosowa Berlian Motor
Kairagi's marketing strategy in the form of a marketing mix, which includes
goods, costs, promotion of locations, individuals, procedures, and physical proof,

13
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has an effect on increasing Mitsubishi Xpander sales. Company should pay more
attention to the available Resources for PT. Bosowa Berlian Motor Kairagi.
Customers would be influenced to purchase Mitsubishi Xpander Mitsubishi
Xpander cars at PT. Bosowa Berlian Motor Kairagi because of the friendly and
nimble human resources in offering goods to customers.
Shah et al., (2018) stated that the characteristics of the Iranian automotive
industry illustrate the conditions for forming R&D strategic alliances, as well as
the obstacles that must be established and removed in order to promote strategic
alliance creation. The lack of technological expertise in the country is one of the
most significant barriers to the development of strategic alliances. Creating the
right conditions for the establishment of such an alliance necessitates a thorough
understanding of the political, motivational, legal, and technological aspects of the
problem, all of which will help to alleviate R&D alliance management issues and
make the situation easier to handle.
The aim of Ferrer Romero, (2018) ‘s article is to explore the relationship
between project management discipline and strategic planning using strategic
management methodology. Some companies are now trying to transform project
management into a strategic advantage, which they can do by aligning it with
organizational strategy. As a result, it's important to ensure that the phases of
strategic planning are clearly matched with project management methodology.

2.1 International Strategy

International marketing strategy is marketing whose operations cross the
borders of more than one country. Global marketing is a marketing activity by
global companies that have global businesses with global marketing strategies,
global markets and global products and standards in various countries.
International trade is trade carried out by a resident of a country with the pleasure
of a resident of another country on the basis of a collective agreement. The
population in question can be between individuals (individuals with individuals),
between individuals and the government of a country and the government of
another country (Wijoyo et al., 2020)
 15

2.2 Cooperative Strategy

Child et al., (2019) stated in their book that cooperative approach refers to a
n organization's effort to achieve its goals by collaborating with other organisation
s rather than competing with them. It focuses on the advantages that can be obtain
ed by cooperation and how these benefits can be realized by cooperation manage
ment. Companies or government agencies that lack significant competencies, reso
urces, or opportunities may benefit from a cooperative strategy. It allows them to
obtain these advantages by collaborating with other organizations that have compl
ementary skills or properties. Cooperation can also help to cut costs and risks asso
ciated with new product creation and other forms of innovation. It can make new
markets more available, as well as opportunities for mutual synergy and learning.
2.3 Organizational Structure and Control
The structured allocation of job functions, institutional mechanisms,
integrated operations, and the establishment of contact networks, authorities,
duties, and accountabilities at various levels within the organization are all part of
the organizational structure. In a nutshell, it's about how organizational tasks are
delegated and tracked in order to meet organizational goals. Internal and external
factors are the two types of factors that affect an organization's structure. External
factors have an impact on structure, but they are not under the organization's
direct control, while internal factors are observable, equivalent, and under the
organization's direct control. (Sukru, 2018)

2.4 Corporate Governance

Corporate governance entails a collection of interactions between the
company's management, board of directors, shareholders, and other stakeholders.
Corporate governance often provides structure by setting company targets,
determining how to achieve them, and tracking results. According to the above
definition, good corporate governance is the implementation of good financial
governance in a business that indicates its financial success, thereby providing a
positive impression for stakeholders as a basis for making investment decisions.
(Widiatmika & Darma, 2018)
 16

2.5 Strategic Leadership and Entrepreneurship

Entrepreneurship and leadership have been described as distinct sets of
characteristics, behaviors, and competencies. In several respects, these areas have
gone hand in hand, despite the fact that most recent research has focused on
leadership and entrepreneurship separately. Some academics argue that
entrepreneurship is simply leadership in a different setting. The fundamental
concept in entrepreneurship research is that the founder (who is also the leader)
makes the difference in the success of a new company, either through his or her
willingness to take risks or through his or her ability of seeing opportunities that
others do not. (Felix et al., 2019)
 CHAPTER III

RESEARCH METHODS

3.1 Type of Research

This research is a qualitative research which is descriptive critical research
by emphasizing the power of analysis of existing sources and data by relying on
existing theories and concepts to be interpreted based on writings leading to
discussion. Qualitative research is aimed in understanding social phenomena from
the participant's point of view ((Taroreh et al., 2018). There are three types of
qualitative research, there are based on library research, field research, and
development research (Sari & Asmendri, 2018). This research is based on library
research which is useful to obtain the necessary secondary data through various
media, namely books, journals, articles and websites (Sari & Asmendri, 2018).
3.4 Object Research
This research uses secondary data, which means that the source of the data
is not directly provided by the relevant sources. Sources of data come from
articles and journals on the internet regarding Mitsubishi company data.
3.3 Data Collection Methods
Data collection methods are techniques or method used to collect data. The
method refers to a way that can be demonstrated through questionnaires,
interviews, observations, tests, and documention (Taroreh et al., 2018). In this
research, the authors use documentation method by collecting data and
information from documented company records and written report which is
Mitsubishi company.

17
 CHAPTER IV

ANALYSIS AND DISCUSSION

4.1 The types of international strategies used by PT Mitsubishi Motors

Krama Yudha Sales Indonesia (MMKSI) to be able to expand business
in Indonesia and the reason of why PT Mitsubishi Motors Krama
Yudha Sales Indonesia (MMKSI) choose Indonesia as its expansion
destination.
The strategy used by PT Mitsubishi Krama Yudha Motors Sales Indonesia is
the domestic multi strategy and transnational strategy . This is because the service
s provided by Mitsubishi for each market are in accordance with market needs. PT
Mitsubishi is expanding its business in Indonesia by restructuring its business and
transferring the distribution business for passenger and light commercial vehicles
of the Mitsubishi Motors brand in Indonesia to PT Mitsubishi Motors Krama Yud
ha Sales Indonesia (MMKSI).
The strategy used by Mitsubishi to develop its business on an international s
cale is to strengthen its position in the local market and seek opportunities in inter
national markets. One way is to cooperate with Nissan. PT Mitsubishi Motors Kra
ma Yudha Sales Indonesia (MMKSI) targets to increase factory production to 160,
000 Xpander units by 2020. In addition, Mitsubishi Motors will also develop a net
work of up to 153 passenger vehicle dealerships spread across a number of region
s in Indonesia and 20 body and paint facilities. In the official broadcast received b
y the business, a number of other strategies will also be carried out to strengthen t
he Mitsubishi brand as "Mitsubishi Motor's No.1 Distributor in the World".
The strategies are:
1. Launching new products and refreshing existing products, MMKSI will la
unch several new products and refresh products that have been developed.
2. Commitment to speed up delivery of goods. Currently, the Xpander unit d
elivery pivot is running normally, which is a maximum of 1 month for the D
KI Jakarta area.

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3. Increased consumer satisfaction MMKI strives to maintain and achieve co

nsumer satisfaction through sales and after-sales services with the target of
winning the SSI and CSI No.1 2019 awards.
4. Integrated communication Above the line, below the line, Public Relations
and Digital activities will be more integrated with the improvement of more
optimal communication channels and holding and participating in various na
tional and international scale automotive events.
The reason for choosing Indonesia as a country for expansion is because Indonesi
a is a consumptive country, with various prices so that it is able to compete with o
ther competitors.
4.2 How can the company compete and gain a competitive advantage with l
ocal competitors?
Mitsubishi Motors Krama Yudha Indonesia (MMKI) is a company engaged
in the official distributor of Mitsubisi Motor vehicles in Indonesia, both passenger
vehicles and light commercial vehicles. The importance of increasing Mitsubishi
unit sales is to increase competitiveness with competitors. Mitsubishi applies its c
ompetitive advantage by employing a differentiation strategy and a focus strategy
 The differentiation strategy is used to develop non-existing products and focus str
ategies for existing products. The marketing strategy used by Mitsubishi is to deve
lop more dealers in various places. Therefore, it is easier for the community to rec
eive the services that have been provided
4.3 Does the company carry out a collaborative strategy, for example an all
iance strategy? If so, with what companies and how do they share the re
sources, capabilities and core competencies of each company? If not, giv
e your recommendation which company should collaborate with / collab
orate with?
Nissan and Mitsubishi have signed a basic agreement to form a strategic alli
ance between the two manufacturers. In Mitsubishi's press release, it was stated th
at Nissan would take a 34 percent stake in Mitsubishi. This strategic alliance will
develop the cooperation between Nissan and Mitsubishi which has been formed si
nce 5 years ago. Nissan and Mitsubishi agreed to cooperate in purchasing, vehicle
 20

platforms, sharing technology and factory utilization and enhancing their respectiv
e markets.
This is also a breakthrough and a good solution for both parties. This also cr
eates a new movement in the automotive industry and enhances the synergy of the
two companies, mutual respect for brands and bonding growth prospects. This ne
w framework is intended to strengthen the alliance's business model and strengthe
n its management structure. The framework was endorsed at the Aliiance Operatin
g Board (AOB) meeting in Yokohama, Japan. Under the agreement, alliance mem
bers can take advantage of the strengths of the members in each company to incre
ase leadership across the region, new products and technologies. And each allianc
e member also gets his or her own share of market focus in the deal.
In its technical practice, the alliance will work on developing the main mode
l and expanding the scheme into a core platform, powertrain and technology. This
means that one company will be the leader in this alliance for the development of
each technology before being distributed to each member of the alliance. The lates
t global automotive alliance, Renault, Nissan and Mitsubishi, announced plans for
a six- year collaboration . We are now announcing the Alliance 2022-themed strat
egy with several main targets, such as developing new technologies and platforms
launching 12 electric vehicles, 40 self-driving vehicles, and reducing costs. Carlo
s Ghosn, as CEO, targets to double the annual synergy to reach 10 billion euros. It
is targeted that more than nine million vehicles will be built using the four new pl
atforms that are shared. Apart from that, the 2022 alliance also plans to produce 4
0 autonomous vehicles and robots with different technology levels ranging from p
ublic vehicles to larger vehicles.
Program trials currently underway in various regions of the world as part of
the development of autonomous drive technology. As for off-road enthusiasts, Nis
san and Mitsubishi will work together to create a new vehicle in the segment base
d on the Pajero and Nissan Patrol. The following outline the plans for the 2022 alli
ance. Development of a common platform including for electric vehicles (EV) bas
ed on the Common Module Family architecture (CMF). Mitsubishi Motors will ga
in access to the CMF and take advantage of the general powertrain in 2020.
 21

4.4 What is the organizational structure of the company, and how does the
head office exercise control over companies located in Indonesia / other
countries?
Mitsubishi Motors vehicles have been present in Indonesia for more than 40
years. As of April 1, 2017, PT Krama Yudha Tiga Berlian Motors (KTB) conduct
ed business restructuring and transferred the distribution business of passenger an
d light commercial vehicles for the Mitsubishi Motors brand in Indonesia to PT M
itsubishi Motors Krama Yudha Sales Indonesia (MMKSI). This restructuring aims
to focus more on each market segment, as well as to respond and contribute to eve
ry request from each market segment quickly and flexibly. Through this change in
organizational structure, Mitsubishi aims to continue to develop and expand produ
cts and services with better quality, which of course is for loyal customers of Mits
ubishi vehicles and also the Indonesian people.
Along with the increasing number of Mitsubishi Motors consumers in Indon
esia thanks to the presence of the newest small MPV, XPANDER. So PT Mitsubis
hi Motors Krama Yudha Sales Indonesia (MMKSI) continues to strive to satisfy it
s customers in Indonesia. One way is to improve the quality of human resources
(HR) by holding contests for all layers of the workforce at dealers throughout the
archipelago. The dealer is at the forefront of Mitsubishi which directly serves cons
umers, therefore MMKSI continuously holds contests for these dealers.
This contest is held regularly every year to test the capabilities of Mitsubishi
dealers, which include Sales, After Sales and Customer Service. Each contest is al
so subdivided for each category are Sales Appraisal Program. For Sales, the Sales
Appraisal Program (SAP) contest is MMKSI's annual agenda to motivate salespeo
ple starting from the Sales Force, Sales Supervisor and Sales Manager levels to co
ntinue to increase sales quantity and quality, to achieve customer satisfaction and i
ncrease Mitsubishi customer loyalty. The points evaluated in SAP for salespeople
include the sales productivity of a sales force who is supported by good product k
nowledge, and has communication skills in explaining products and providing ma
ximum service to all Mitsubishi customers. Whereas for Supervisors and Manager
s, the evaluation aspects are more directed at leadership in the team (Team Leader
 22

ship) and the achievement of sales targets (Target Achievement). What's interestin

g about SAP 2017 is that several test stages have used e-Learning technology whe
re the big topic is Mitsubishi Xpander.
Next for the After Sales contest, the contest which is also held every year ai
ms to motivate After Sales personnel to improve their skills and services so that c
ustomer satisfaction in carrying out service activities is achieved. The After Sales
Contest is also further divided into three categories. Technician Contest, this conte
st is for Senior Mechanics. The second is the Frontliner Contest, this contest is for
Service Advisors, and the third is Periodical Maintenance for Junior Mechanics at
the dealership. The values evaluated in this After Sales contest are also divided ac
cording to their respective assignments, for a mechanic or technician contest they
must have the skills and abilities to handle vehicle service at the dealer, so that the
y can handle existing troubleshooting quickly according to manual workshop proc
edures Yes, also able to use measuring instruments and MUT III (Mitsubishi Scan
ner).
For the Frontliner contest (service advisor), skills and abilities are required i
n the process of receiving to delivering the vehicle when the customer performs se
rvice activities at the dealership. In this consumer acceptance process, a frontliner
must apply the 7 Step Procedure, which includes technical skills in passenger vehi
cles, and has a Cross Seliing spirit in offering vehicle maintenance products. So th
at consumers get the right information on vehicle maintenance.
Finally, for the Periodical Maintenance contest, you must have the skills and
ability to carry out a periodical maintenance process in accordance with the Servic
e Booklet, Flaterate and manual workshop. In this contest, what is displayed is the
maximum work speed and quality in accordance with Mitsubishi standards.
The third contest is for the Customer Satisfaction Officer (CSO) which is als
o held annually. The purpose of this contest is to improve service standards at deal
erships through CSOs who act as agents of change. The CSO contest uses the Kai
zen concept, which is the application of devaluation and continuous improvement
 In its application in the company, Kaizen includes the notion of continuous impro
vement that involves all employees, from top level management to lower level ma
 23

nagement. In this contest, CSOs are responsible for making analysis and repair pla
ns at the dealership based on customer feedback, running the program, reporting a
nd evaluating the results of improvements that have been carried out.
Later, the final goal of this CSO contest is to improve the Standard Operatin
g Procedure (SOP) at the dealership so that it can increase dealer productivity whi
ch will lead to continuous improvement of dealer service quality so that the numb
er of customer satisfaction with dealer services also increases. The evaluation poin
ts in this CSO Contest include: Good analytical skills, ability to make relevant and
effective improvement plans, and others.
The judging process of all dealer power contests has been completed and the
results have also been announced at the Mitsubishi Dealers Annual Convention
(MDAC) which was held on February 5, 2018. All of these contests are regularly
held by MMKSI in order to achieve an even quality of human resources in all Mit
subishi passenger vehicle dealerships throughout Indonesia. So Mitsubishi consu
mers get the best quality from the dealer starting from the moment before buying
a car to periodic maintenance.
4.5 Who is the key person in the company, and explain what are the results
of the work / achievements obtained in his leadership?
The key person of Mitsubishi is Naoya Nakamura the current President
Director. In 2019 Mitsubishi again achieved the Highest Satisfaction Index in total
sales, among other mass market brands. With this sales satisfaction index
achieved, Mitsubishi won two rankings from JD Power 2019, namely for
customer satisfaction and SSI sales satisfaction. Because Covid-19 Mitsubishi has
a broken way in repairing this Covid-19. Mitsubishi is working with the
Indonesian Red Cross (PMI) to tackle the spread of the virus, by donating 1 unit
of vehicle as an emergency response unit.
 CHAPTER V

CONCLUSION AND RECOMMENDATION

5.1 Conclusion
PT Mitsubishi Motors Krama Yudha Sales Indonesia is the official distribut
or of Mitsubishi Motors vehicles in Indonesia, both passenger vehicles and light c
ommercial vehicles and is one of the foreign investment company in Indonesia.
Foreign investment company is an attractive company because it has a large mark
et share but a unique strategy is needed in order to survive in the industry.
Mitsubishi applies multi domestic strategy and transnational strategy as their
strategic which help them in strengthening its position in the local market and
seeking opportunities in international markets. The reason that Mistubishi choose
Indonesia as a country for expansion is because Indonesia is a consumptive
country, with varying prices so that it is able to compete with other competitors.
Mitsubishi can achieve their competitive advantage by implementing
differentiation strategy and focus strategy. The differentiation strategy is used to
develop non-existing products and focus strategies for existing products. The
marketing strategy used by Mitsubishi is to develop more dealers in various
places. Therefore, it is easier for the community to receive the services that have
been provided.
One of their accomplished strategic is by signing a basic agreement to form
a strategic alliance with Nissan. Nissan will take a 34 percent shares in Mitsubishi.
This strategic alliance will develop the cooperation between Nissan and
Mitsubishi which has been formed since 5 years ago. Nissan and Mitsubishi
agreed to cooperate in purchasing, vehicle platforms, sharing technology and
factory utilization and enhancing their respective markets. This also creates a new
movement in the automotive industry and enhances the synergy of the two
companies, mutual respect for brands and bonding growth prospects which is
intended to strengthen the alliance's business model and strengthen its
management structure. For the organizational structure, Mitsubishi is using
functional structure as their organizational structure which is divided based on

25
 26

their functional specialization that is responsible for the organizational structure of

the company such as the PPC, Quality, Production, etc. and the President
Director, Naoya Nakamura is the key person in Mitsubishi. From the explanation
above, it can be said that Mitsubishi already has its own competitive advantage
through the implementation of these strategies that can make them compete in
Indonesia market.
5.2 Recommendation
The recommendation that can be given to Mitsubishi are:
1. Continue in innovating and updating its platform, especially in this COVID-
19 era.
2. Continue in monitoring the movement of strategies carried out by other
competitors which later can be a consideration for revising or creating new
strategies.
3. Form more strategic alliances with other automotive company that can help
strengthen company.
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 DIVISION OF TASKS

1. Susanti (1842126)
 Chapter I
 Page Number
 Content
2. Fina Fiorentini (1842132)
 Abstract
 Preface
 Chapter III
 Chapter V
3. Merry Agustina (1842133)
 Chapter IV
4. Kennily Kho (1842135) – Group Leader
 Chapter II

29