Journal Industrial Servicess, vol. xx, no.

yy, Month 20xx

Available online at: http://jurnal.untirta.ac.id/index.php/jiss

JOURNAL INDUSTRIAL SERVICESS

Industrial Engineering Advance Research & Application
1
2 Value Chain Management Strategy Plan of Sugar Cane in the Takalar Sugar Factory
3 De Naddya YF. Sumarataa,*, Muhammad Rusmana, Syarifuddin M. Parenrenga

4 a
Department of Industrial Engineering, Hasanuddin University, Jl. Poros Malino Km. 6 Bontomarannu, Gowa 92119, South of Sulawesi,
5 Indonesia
ARTICLE INFO ABSTRACT
Limited resources for the primary and supporting activities of the Takalar Sugar
Article history:
Received xxxx Factory have resulted in sub-optimal productivity. The purposive sampling method
Received in revised form xxxx was used by considering the representation of the sugar processing business in the
Accepted xxxx sugar cane commodity value chain at the Takalar Sugar Factory. Relationships
Available online xxxx between actors are carried out using a Value Chain Analysis approach to all internal
environmental activities and PESTLE Analysis to external environmental factors
Keywords: and forming a TOWS Analysis in the form of variables of threats, opportunities,
Commodity weaknesses, and strengths that are owned so that a priority plan for appropriate
Sugar cane management strategies is developed through the Analytical Hierarchy Process. The
Strategy sugarcane commodity chain involves production flows, supply price information,
Value Chain
and income streams with 4 actors: farmers, producers, traders, and final consumers.
The chain flow shows that service activities and production technology
development are not optimal, and the low bid price causes uneven income
distribution. On the other hand, the authority's policy of empowering cane sugar,
especially farmers, creates low-value creation. Then the priority strategy was chosen
Editor:
De Naddya YF. Sumarata for its management, namely efficiency in sugarcane production with modern
cultivation techniques, utilization of Internet of Things production technology,
Publisher’s note: increasing sugarcane production capacity through on-farm restructuring and sugar
The publisher remains neutral concerning production through revitalizing off-farm factories and maintaining and increasing
jurisdictional claims in published maps
market share through the promotion of new packaging products.
and institutional affiliations.

6
7

8 1. Introduction 30 technology is a complex problem that must be

31 comprehensively resolved by sugarcane processing
9 Statistical of the National Leading Estate Crops 32 producers [2].
10 Commodity records sugarcane as one of the prioritized 33 The government is very ambitious in launching a
11 plantation commodities because of the process of 34 national sugar self-sufficiency program in response to
12 creating value in sugar and one of the main 35 the increasing demand for sugar. However, until now
13 ingredients for food needs to meet the needs of the 36 it has not shown significant results because the
14 Indonesian people every day, covering household and 37 demand for sugar in South Sulawesi reaches 200,000
15 industrial needs both large and small scale [1]. That 38 tons per year with only around 27% of the total sugar
16 made sugar become the first trading commodity with a 39 produced annually [3]. Meanwhile, the Takalar Sugar
17 demand rate that continues to increase by the year. 40 Factory is a business unit of PT. Perkebunan
18 Increasing population development will also increase 41 Nusantara XIV is in South Sulawesi. The position of
19 people's consumption of sugar. Until now, the position 42 the Takalar Sugar Factory as one of the active factories
20 of sugar as the crucial sweetener in Indonesia can't 43 in the South Sulawesi region makes it very potential to
21 replace by other alternative sweeteners, so sugar is 44 support the achievement of national sugar self-
22 determined to be one of the staple foods regulated by 45 sufficiency in the future.
23 the Government based on Presidential Decree Number
24 71 of 2015 and number 59 of 2020 which have a 46 2. Material and methods
25 significant influence on economic sustainability.
26 However, the imbalance between the rate of 47 2.1. Problem formulation
27 production and demand for sugar, the lack of land for
28 planting sugar cane and superior varieties, the role and 48 The various productivity problems faced by the
29 support of the government, and the development of 49 Takalar Sugar Factory are the yield rate which is still

*Corresponding author: Journal Industrial Servicess is licensed under a

Email: denadsuma@gmail.com Creative Commons Attribution-ShareAlike 4.0
International License (CC BY-SA).
http://dx.doi.org/xxxx
 2 Sumarata et al. (2023), Journal Industrial Servicess, vol. xx, no. yy, month, pp. xx–yy, xxx

50 low, the factory's performance isn't optimal, and 113

51 production costs are higher than the Takalar Sugar 114 2.2.2 The value chain mapping activity
52 Factory has not been able to support the demand for 115
53 sugar which continues to increase every year, 116 The final stage is Porter's Mapping Value Chains
54 especially in the South Sulawesi region. On the other 117 which are used for value chain analysis of all activities
55 hand, the very high level of inquiry for the prevailing 118 namely, primary (main) activities and secondary
56 price of sugar in the market markedly influences it 119 (supporting) activities [5]. There is a standard set
57 because it is through marketing channels by 120 value, namely an average value of 2 (two) and it is
58 distributors and retailers. The length of the marketing 121 carried out by giving weights, scores, and scores to
59 channel for sugar products from producers to final 122 each value chain activity.
60 consumers indicates that the Takalar Sugar Factory 123
61 must make improvements to maximize all its 124 2.2.3 PESTLE
62 production activities through factory performance 125
63 efficiency to achieve stability in selling prices, meet 126 PESTLE is a method used to analyze external
64 sugar demand, and add value to the factory itself and 127 environmental conditions at a macro level regarding
65 its customers as well as being able to create acceptable 128 matters that will harm and benefit through political,
66 business management system. 129 economic, social, technological, legal, and
67 Based on the description above, it is interesting 130 environmental factors on business continuity in the
68 to study through Value Chain Analysis by knowing 131 future and assist stakeholders in evaluating
69 the potential of activities that can be an advantage for 132 opportunities and minimizing threats from obstacles
70 the company and shows what activities are carried out 133 influenced by its external environment [6].
71 by the dominant actors along the chain and how much 134
72 profit value each one gets actors so that the supply 135 2.2.4 TOWS
73 chain becomes efficient. In addition to the value chain 136
74 being used to increase factory efficiency and achieve 137 Attention to the external environment and
75 stability in the selling price of sugar, it is necessary to 138 internal environment, the TOWS analysis method
76 carry out strategic planning through the methods of 139 helps the process of formulating appropriate strategic
77 threats, opportunities, weaknesses, and strengths 140 plans for stakeholders and decision-makers in the
78 (TOWS) in identifying the external and internal 141 company. The results of the analysis are in the form of
79 conditions of the factory which are used as the basis 142 a matrix of combinations of External-Internal
80 for strategic planning and work realistic programs. 143 alternative strategies that describe effectively threats
81 When the company already knows the condition 144 and opportunities that affect productivity from the
82 and situation as well as the location of the company, 145 external environment and then adjust to weaknesses
83 the company can make estimates and planning 146 and strengths owned by the company [7].
84 descriptions regarding the formulation of an 147 Furthermore, the result of this method is the overall
85 appropriate strategy according to the vision of the 148 assessment of the weighting (Y, X) of the EFE (Y) and
86 decision-makers in the company. In determining 149 IFE (X) matrices which are vulnerable between 1.0 to
87 priority strategies for decision-makers in the company, 150 4.0 with a standard value of an average value of 2.5. If
88 a technique was necessary for the Takalar Sugar 151 the total value > the average value, then the business
89 Factory for decision-making, and researchers decided 152 has a very strong response to external and internal
90 to use the Analytical Hierarchy Process (AHP). 153 factors. Vice versa if the total value < the average value
91 Given that sugar is one of the most crucial 154 then the business has a very weak response to external
92 commodities that contribute most to long-term 155 and internal factors.
93 economic growth and development, to increase the 156
94 productivity of sugarcane through the value chain, the 157 2.3 Alternative strategy formulation
95 researchers are interested in how to plan for the 158
96 management of value chain at Takalar Sugar Factory. 159 The productivity level Takalar Sugar Factory
97 160 through analysis of internal and external
98 2.2 Value chain 161 environmental conditions has been identified through
99 162 the Value Chain Analysis and PESTLE Analysis
100 Value chain is used to internally determine the 163 approach, so the next stage is the formulation of
101 condition of the Takalar Sugar Factory by mapping 164 alternative strategies through a review of the following
102 supply chain activities. 165 TOWS matrix [8].
103 166 1. The input stage is carried out by plotting the values
104 2.2.1 The point of entry 167 of the TOWS matrix, are External Factor Evaluation
105 168 (EFE) and Internal Factor Evaluation (IFE) to form
106 The initial stage is through the point of entry for 169 an EI matrix. The External-Internal (EI) strategy
107 the value chain, to find out whom the actors involved 170 model is classified into three core strategies [9]:
108 in the Takalar Sugar Factory value chain and through 171 a. The first strategy is a growth and development
109 mapping the value chains regarding the flow of roles 172 strategy (growth and focus build), namely cells
110 and functions of actors, costs, and benefits incurred or 173 I, II, and V. The right strategy is intensive
111 generated by value chain actors by considering the 174 (product development, market development,
112 factors of production [4]. 175 and market penetration) and an integration
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176 strategy with various perspectives including 236 close to 0.1. Meanwhile, the pairwise comparison
177 forward integration, backward integration, and 237 matrix is considered consistent if it has a CR value
178 horizontal and vertical integration. 238 ≥ 0.1 (10%).
179 b. The second strategy is the defense strategy 239
180 (stability), namely cell IV with a focus on
181 increasing performance efficiency and added 240 3 Results and discussions
182 value and growth and diversification strategies
183 (growth and diversification) in cells VII and VIII. 241 3.1 The point of entry value chain analysis
184 c. The third strategy is a retrenchment strategy,
185 namely cells III, VI, and IX through cutting 242 In the stages of the point of the entry value
186 activities that are less efficient and do not 243 chain, it was found that the factory is the second actor
187 provide value to either products or services for 244 (producer) which has the main actor as a supplier of
188 the sake of financial and asset stability. 245 raw materials (farmers) and has 2 (two) levels of final
189 2. The external-internal matrix matching stage [10]. 246 consumers, namely traders (buyers) and households so
190 247 that the flow of entry points as figure 2.
191 2.3.1 Analytical Hierarchy Process 248 1. Farmers (suppliers)
192 249 Farmers in the sugar cane value chain have a
193 The Analytical Hierarchy Process is a method of 250 role as providers of production inputs (raw
194 ranking decisions with several criteria so that 251 materials) in the form of sugarcane. Farmers carry
195 companies can determine the best alternative for the 252 out a series of sugarcane farming activities starting
196 following decisions [11]. 253 from cultivating the planting land, sowing seeds,
197 1. Hierarchical Arrangement. 254 planting seeds, fertilizing, caring for, and
198 Multicriteria problems in the analytic hierarchy 255 maintaining until the harvest season. Farmers are
199 process are summarized in a hierarchical form 256 divided into two parts, namely Tebu HGU
200 consisting of 3 main parts, namely goals, criteria, 257 Gapoktan Farmers and Tebu Rakyat Mandiri
201 and choices. 258 Farmers. Tebu HGU Gapoktan Farmers are farmers
202 2. Assessment of criteria and alternatives. 259 who are given land by the Takalar Sugar Factory
203 The form of the criteria and alternatives is 260 with HGU (Business Use Right) status. Meanwhile,
204 carried out by pairwise comparisons so that the 261 Tebu Rakyat Mandiri Farmers are farmers who
205 importance scale of each available criterion will be 262 have their land and then carry out sugarcane
206 known against the other criteria based on the 263 cultivation activities, and the entire sugarcane
207 TOWS matrix using a scale of 1–9. 264 harvest is transported to the Takalar Sugar Factory.
208 3. Determination of priorities. 265 2. Takalar Sugar Factory
209 This priority is called the priority vector, which 266 The Takalar Sugar Factory acts as a producer
210 is a limitation on decisions to be taken by correcting 267 that distributes white crystal sugar and molasses
211 together the number of columns and number of 268 products to traders and consumers directly. The
212 rows so that the average value (priority vector) is 269 process of processing sugar cane into sugar is
213 obtained. 270 carried out with the help of a machine and human
214 4. Calculation of the Consistency Ratio (CR) 271 labor which is divided into several stages, namely,
215 Logical consistency contains the results of the 272 milling, refining, evaporation, crystallization,
216 comparison of the consistency index (CI) and 273 separation, and final finishing (sugar handling).
217 random index (RI) with the optimal expected 274 The sugar obtained is packaged in 50 kg and 1 kg
218 answer as follows. 275 packages with the trademark Walini for 50 kg
219 a) The total of the initial pairwise comparison 276 packaging and Gollata for 1 kg packaging as well as
220 matrix is multiplied by the priority vector. 277 molasses which is the remaining sugarcane juice
221 Furthermore, the new vector value is expressed 278 that cannot be formed into sugar crystals per ton.
222 as the vector of the number of weights 279 3. Marketers (2nd level)
223 (eigenvalue). 280 The marketing agency that also acts as a shop
224 b) The sum of the eigenvalues is denoted by max. 281 trader, namely PT. Gelael and Berkah Supermarket
225 c) Calculation of the consistency index (CI) with 282 are actors (traders) in the value chain who are
226 the formula. 283 closest to the so-called 2nd level consumers and end
λmax−n 284 users. The thing that distinguishes marketers or
227 CI = ................... (1) 285 shop traders from retail traders is that marketers or
n−1
228 d) Calculation of the consistency ratio (CR) with the
286 shops buy white crystal sugar products in 1 kg
229 formula. 287 packaging and sell them directly to end consumers
CI 288 (households). Meanwhile, retail traders buy white
230 CR = ............................ (2) 289 crystal sugar in large quantities (50 kg) which are
RI 290 then resold to consumers in small quantities (1 kg).
231 e) The RI table (random index) is shown at the 291 Meanwhile, the purchase of molasses is carried out
232 table 1 [12]. 292 by the amount per ton weight unit. The purchasing
233 The results of the ratio consistency analysis (CR) 293 process is carried out in one milling period during
234 show that respondents are considered consistent in 294 the auction system. In addition, marketing agencies
235 making assessments if the consistency ratio value is 295 or shop traders carry out several handling activities
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296 such as storage and loading and unloading as well 359 The main actors involved in the sugar value
297 as periodic temperature and humidity checks so 360 chain of the Takalar Sugar Factory are PT.
298 that the quality of sugar is maintained so that it is 361 Nusantara Plantation, shop traders, and other
299 hoped that it will reach the final consumer with 362 traders located around Takalar Regency and
300 good quality. 363 Makassar City. The first form of activity carried out
301 4. Wholesalers (2nd level) 364 in this stream is the purchase of sugar by traders
302 Large traders in this chain are also known as 2 nd 365 called buyers to producers. The sales and purchases
303 level consumers who obtain supplies of sugar and 366 process are carried out by the PO (purchase order)
304 molasses from several sugar factories spread across 367 when the sugar supply is ready in the warehouse
305 the South Sulawesi region, namely Takalar, Bone, 368 owned by the Takalar Sugar Factory. The selling
306 and Makassar, namely UD. Surya Putera and CV, 369 price of sugar from the Takalar Sugar Factory to
307 Benteng Putra Sejahtera as well as marketing 370 buyers for 1 kg of packaged sugar is Rp. 12,500.00,
308 authorities. The quantity purchased by wholesalers 371 50 kg of packaged sugar is Rp. 550,000.00 while the
309 is greater and the repurchasing period is carried out 372 price for drops is Rp. 210,000.00 per ton.
310 more quickly. Purchasing through an auction 373 4. Consumers
311 process and buying sugar with the condition that 374 The role of the consumer is as a giver of value in
312 the total purchase is above 10 tons, and the 375 the form of purchases issued for sugar products
313 purchase period is 1-3 days. Sugar that is usually 376 and usually follows the price determined by the
314 purchased is 50 kg packaged sugar and shipping 377 trader and is the last activity in the flow that
315 costs are calculated directly with the purchase price 378 purchases sugar.
316 of sugar, so buyers (wholesalers) do not need to 379 Through secondary time series data along with
317 incur special shipping costs for each delivery. In 380 the costs incurred by sugar cane farmers and sugar
318 addition, wholesalers also become sugar 381 producers for the sugar cane commodity. The
319 distributors for other traders who do not win 382 production of sugarcane which is then processed into
320 auctions and sales through the PO system, such as 383 ready-to-use products in the form of white crystal
321 shops, food or beverage businesses, or restaurants. 384 sugar and by-products in the form of molasses, is then
322 It is also known from the above description that 385 marketed at the following offering prices.
323 several different wholesalers are involved in the cane 386 Table 2 and 3 shows the total farmer production
324 sugar value chain for white crystal sugar and cane 387 costs up to harvest and the selling prices that apply to
325 molasses products indicating that there are two 388 each actor in the chain up to the end user. The table
326 different value chains between the sugar produced and 389 also shows the level of production costs and price bids
327 marketed. The difference in the value chain that occurs 390 increasing each year, so it is assumed that the profit
328 in the cane sugar commodity indicates that there are 391 margins of actors with projected production costs and
329 differences in costs and income that have been 392 revenues of actors in the value chain are the same each
330 incurred and received by the Takalar Sugar Factory 393 year. Therefore, the calculation is carried out using the
331 business. 394 projected year of the highest bidding price or HET
332 Fig. 3 shows the flow of the molasses at the 395 (highest retail price), in 2022. The calculation results
333 Takalar Sugar Factory starts from the initial input (raw 396 for the average sugar value chain at Takalar Sugar
334 material) to the final output (product). Meanwhile, the 397 Factory in 3 periods in 2022, Takalar Regency can be
335 difference in the process shown in Fig. 4 is the white 398 seen in the table 4.
336 crystalline sugar. 399 The results of the analysis at the mapping value
337 1. Production 400 chains stage have explained the function of each actor
338 Farmers as the main producers in producing 401 and found out the size of the profit margin obtained by
339 sugarcane. Independent People's Sugarcane 402 each actor involved in the flow of products from
340 Farmers carry out sugarcane cultivation activities 403 farmers, producers, and marketers to consumers as
341 with a minimum area of 1 ha/person and are 404 shown in fig. 3. The largest profit margin in the sugar
342 combined with other farmers to form a farmer 405 value chain of the Takalar Sugar Factory is obtained by
343 partner group. Farmer partner groups consist of 10- 406 the second end consumer, namely wholesalers and
344 25 people with an average of 30-50 ha of plantation 407 retailers for this type of molasses with a percentage
345 land per group. Meanwhile, the Gapoktan 408 value of 80.04%.
346 Sugarcane HGU Farmers are a combination of 409 The large profit margins owned by wholesalers
347 farmer groups and have an average of 80-100 ha of 410 and retailers who are level 2 consumers are due to the
348 land available for management. 411 many value-added processes such as during the
349 2. Processing 412 interview process, level 2 consumers provide
350 At the grinding processing stage, the Takalar 413 additional treatment, namely handling and
351 Sugar Factory is the main actor involved in the 414 maintenance during the distribution process,
352 processing function of the sugar value chain flow at 415 processing into new products, designing design for re-
353 the Takalar Sugar Factory. The activity carried out 416 packaging on retail packaging, separation, and
354 by PG Takalar as a sugar cane processor is 417 packaging process for products sold in retail, after-
355 receiving sugar cane from farmers and processing it 418 sales services and so on to add value to the product.
356 into white crystal sugar for consumption and 419 The smallest profit margin in the value chain of
357 molasses which is ready for sale. 420 white crystal sugar and cane molasses is obtained by
358 3. Marketing 421 the second-level end consumers, namely marketing
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422 institutions, or shops by 6.50% and sugar cane farmers 483 Sugar Factory and can be used as a reference for
423 from Gapoktan HGU by 2.23%. Seeing the actual 484 performance improvement in small value-creating
424 condition that the distribution of benefits is not evenly 485 activities that are not yet optimal.
425 distributed between farmers, producers, and 486 Table 6 shows the total score obtained was 1.89,
426 consumers level 2 in the sugar value chain at the 487 meaning that the performance of the value chain at the
427 Takalar Sugar Factory, it indicates the need for 488 Takalar Sugar Factory was still below average because
428 performance improvements in terms of the 489 the final score was less than 2. Several activities still
429 performance efficiency of processing plants 490 had a low score indicating that all potential value
430 (producers) to optimize white crystal sugar products 491 creators throughout the value chain at Takalar Sugar
431 which are the main product. compared to waste 492 Factory are not optimal. Nevertheless, activities at the
432 products or molasses. The target of this optimization 493 Takalar Sugar Factory have competitive advantages,
433 will be a competitive advantage which is expected to 494 namely the results of an assessment that shows several
434 increase productivity in the value chain at the Takalar 495 2 or more such as operational activities, outgoing
435 Sugar Factory. 496 logistics, and company infrastructure. Based on the
497 scores obtained, these activities are arranged into a
436 3.2 Mapping value chain analysis 498 mapping matrix of value chain activities based on the
499 highest and lowest scores.
437 Information that is known that the flow of value 500 The highest activity on fig. 4 needs to be
438 (supply and income) is not balanced for the Takalar 501 maintained and used as an internal strength of the
439 Sugar Factory and Farmers, reveals the need to 502 Takalar Sugar Factory. While the lowest activity
440 identify product flows by mapping the value chain 503 requires full attention to improve performance to add
441 according to activities, namely primary (main) 504 product value and add indicators of competitive
442 activities, and supporting activities. The application of 505 advantage that will be owned by the Takalar Sugar
443 each primary and supporting activity is then given 506 Factory in its value chain.
444 weighting and scoring to determine the level of 507
445 performance in each activity in the value chain. The 508 3.4 PESTLE Analysis
446 weighting and assessment are carried out directly by 509
447 the actors involved in the value chain according to the 510 Factors influencing internal activities and
448 conditions in the internal environment of the Takalar 511 performance that can create value in the business have
449 Sugar Factory. In direct proportion to the weighting 512 been identified through the previous discussion.
450 and assessment of activities, performance 513 Meanwhile, the following is an analysis of PESTLE
451 measurement has also been carried out and it has been 514 affecting activity and performance in the external
452 identified which activities act as the biggest value 515 conditions of the Takalar Sugar Factory.
453 creators in the sugar value chain at the Takalar Sugar 516 1. Politics (Politics)
454 Factory. Table 5 shows the breakdown of constraints 517 The production pattern involves farmers and the
455 that each indicator has for each activity and has the 518 Takalar Sugar Factory whereas actors who
456 potential in the form of numbers that have been 519 participate in maintaining the stability of national
457 measured previously. The low performance in this 520 sugar, the government is still ambitious about
458 service activity is because the Takalar Sugar Factory is 521 establishing policies and regulations so that the
459 still limited by the minimum quality of human 522 supply and value obtained from the distribution of
460 resources. 523 sugar can help meet the needs and benefit all
461 On the other side, technological development 524 parties who involved.
462 greatly influences all activities that occur within the 525 2. Economic (Economy)
463 factory. The acquisition of low-performance scores is 526 The Takalar Sugar Factory has a broad market
464 because the Takalar Sugar Factory still uses old 527 because it produces food products for consumer
465 machine technology and equipment (old machine) so 528 groups at all levels, both for direct and indirect
466 machine downtime often occurs and there has been no 529 consumption. The market is very closely related to
467 revitalization from a technological point of view. 530 the fulfillment of goods (supply) for the demands
468 Considering that the yield of sugarcane to be obtained 531 of needs (demand) and vice versa. According to the
469 is greatly influenced using machines during the 532 Minister of Industry No. 3 of 2021 concerning
470 sugarcane extraction process, development from a 533 guarantees for the availability of raw materials for
471 technological standpoint needs to be done. If the 534 the sugar industry to meet national sugar needs, the
472 machine does not work effectively, then the level of 535 limited availability of raw materials for sugar
473 sugar productivity is not optimal and the potential for 536 production requires sugar imports. The above
474 value creation is not optimal so many parties feel 537 shows that indeed the demand for sugar is
475 disadvantaged. 538 increasing, but the domestic (domestic) sugar
476 539 industry has not been able to meet market demand.
477 3.3 Value Chain Performance Measurement 540 3. Social
478 541 Social views of the community include socio-
479 Performance measurement is the final stage in 542 cultural and village aspects such as social status,
480 Porter's value chain analysis to measure which activity 543 employment opportunities, social behavior, and
481 acts as the largest value creator in the sugar 544 social security [13]. This was confirmed in the
482 commodity value chain sold through the Takalar 545 interviews conducted that the people around the
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546 Takalar Sugar Factory are people with livelihoods 609 Takalar Sugar Factory has a high response to the
547 as farmers who initially planted corn and rice and 610 opportunities that exist, but the response to threats is
548 turned into sugarcane farmers since the factory was 611 low.
549 founded. Farmers experienced changes and 612 Meanwhile, from Table 9 it is known that the
550 improved living standards, such as income, 613 internal environmental strategic factors have a
551 education, health, and relations between 614 response to the Takalar Sugar Factory in a weak
552 communities around the Takalar Sugar Factory 615 position, namely the resulting total score shows an
553 4. Technology 616 inability to respond to a weakness of 1.08 through the
554 Takalar Sugar Factory is a factory that has been 617 utilization of the strength of 1.35 which is owned
555 producing since 1987 using the latest technology 618 because it produces a score below the value average.
556 applied at that time. Along the time, the use of 619
557 technology begins to decline, which is indicated by 620 3.6 Alternative Management Strategy Formulation
558 the very low and uncompetitive level of sugarcane 621
559 and sugar productivity. This is a big threat that the 622 The preparation of the EFE and IFE matrices has
560 Takalar Sugar Factory must immediately deal with. 623 shown that the position of the Takalar Sugar Factory in
561 5. Legal (Law) 624 responding to external and internal factors is not
562 Law is a rule that is made for society derived 625 optimal. This is evidenced by the EFE matrix (External
563 from the values of life and culture such as religion, 626 Factor Evaluation Matrix) only obtaining a value of
564 customs, decency, and culture in society [14]. 627 2.57, which is equivalent to 7% of factory responses
565 According to Constitution No. 3 of 2014 also 628 indicating a strong average in avoiding threats and
566 contains that industry is carried out based on the 629 taking advantage of opportunities. While the IFE
567 principles of national interest, economic 630 matrix (Internal Factor Evaluation Matrix) scores
568 democracy, business certainty, equal distribution, 631 below the strategic position with a value of 2.43, which
569 fair business competition, and industrial linkages as 632 means that the factory responds very weakly to exploit
570 the main guideline for the Takalar Sugar Factory. 633 strengths and minimize weaknesses in internal
571 innovative, tough, and characterized to support the 634 business activities. Furthermore, through the values
572 progress of the domestic industry. 635 produced by the EFE and IFE matrices, an EI matrix is
573 6. Environment 636 obtained which shows the position intersection point is
574 External environmental factors in this analysis 637 in cell V as shown on figure 5.
575 are environmental factors that are related to and 638 The right strategy shown by that cell is an
576 influence the business continuity of the Takalar 639 intensive strategy to try to avoid external threats that
577 Sugar Factory, either directly or indirectly. Based 640 can cause losses through increasing production
578 on its line of business, the Takalar Sugar Factory is 641 facilities, using and utilizing technology, expanding
579 an industrial unit engaged in agribusiness, namely 642 market segments, or expanding business activities at
580 plantations and processing of sugar cane into sugar 643 the same production level to create one goal, namely
581 products. The upstream of the Takalar Sugar 644 adding value to business and chain. Furthermore, an
582 Factory business, namely sugar cane as a raw 645 evaluation form is carried out through matching
583 material for sugar production which is an element 646 strategic planning based on the TOWS matrix that is
584 of the biotic environment, cannot be separated from 647 by the following capacities, capabilities, and
585 abiotic environmental elements that affect its 648 sustainable policies on figure 6.
586 growth or productivity. Sugarcane productivity is 649 The TOWS matrix clearly describes the external
587 also strongly influenced by climatic conditions, 650 threats and opportunities currently being faced by the
588 land (soil), and the management and maintenance 651 Takalar Sugar Factory, so that it is adjusted to its
589 of sugarcane plants [15]. 652 weaknesses and strengths. This matrix produces 4
590 653 (four) cells of possible factory strategic alternatives
591 3.5 TOWS Analysis 654 namely, SO strategy (Management), WO strategy
592 655 (Technology), ST strategy (Human Resources), and WT
593 The following TOWS factors are known after 656 strategy (Marketing).
594 obtaining results through value chain analysis which 657
595 describes the internal approach to activities at the 658 3.7 Analytical Hierarchy Process
596 Takalar Sugar Factory so that strengths and 659
597 weaknesses can be identified and through the PESTLE 660 The hierarchical configuration in determining the
598 analysis which has described a macro approach to 661 priority of the Takalar Sugar Factory value chain
599 identify threats and opportunities that may occur on 662 management strategy uses 2 levels, namely level 2 for
600 table 7. The next stage is the formulation of an 663 factor strategy analysis (criteria) and level 5 for
601 alternative strategy which begins with the weighting 664 alternative strategies (criteria elements) which produce
602 and rating of each factor. The formulation of the 665 priority strategies. The results of the Analytical
603 strategy is shown at the input stage and the matching 666 Hierarchy Process (AHP) obtained the eigenvector
604 stage as follows the table 8. 667 (score) for each factor as shown on the table 10.
605 The results of the EFE matrix show that the threat 668 Human resources (HR) is the ST strategy, namely
606 factor has a score of 1.01 and the opportunity factor 669 by utilizing internal strengths to avoid external threats
607 has a score of 1.56. The total threat score is smaller 670 to be a factor of choice and very relevant to the
608 than the total opportunity score, indicating that the 671 strategy results from the TOWS analysis which at the
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672 same time shows HR has full responsibility for 735 yield of sugar cane. In the process of processing
673 sugarcane cultivation (sugar cane production) and 736 sugarcane into sugar, the yield level produced by
674 maintenance as a supply raw materials, processing, 737 sugar cane affects the total sugar production
675 supervision, and control in the process of sugar 738 produced. This is evidenced by looking at the
676 production, product supervision up to the product 739 historical time series of the Takalar Sugar Factory,
677 service process to the end user. 740 so far it has not been able to achieve a sugar cane
678 The result is also comparable to the results of the 741 yield of 8%. Besides that, production costs used can
679 value chain analysis which shows that the lowest 742 be reduced if sugarcane production is more
680 activity, namely service and technology development, 743 efficient and added value is obtained for farmers
681 is directly proportional to the factor analysis which 744 and producers (factories). Efficiency in sugarcane
682 shows that human resources and technology are in the 745 production can be achieved if farmers as the main
683 2 (two) highest priority positions. Human resources 746 supplier of factory raw materials implement better
684 are related to creating good services carried out in 747 modern sugarcane cultivation techniques such as
685 internal and external factory activities, such as giving 748 land use, selection of superior seeds, use of
686 rewards to employees/farmers/customers to create 749 fertilizers, regular and fully scheduled care, and
687 satisfaction so that factory performance can be optimal, 750 maintenance up to the climate anticipation process
688 quality management team and integrated 751 during TMA (cutting, loading and transport).
689 employee/farmer training including the use of 752 2. Production IoT technology for added value creation
690 modern technology-based machines and equipment, 753 The manufacturing industry is required to keep
691 developing and studying varieties and superior seeds 754 abreast of technological developments to create
692 for sugarcane production, more optimal land use 755 efficiency in the production process and can help to
693 through testing and analysis of soil conditions and the 756 increase production capacity and quality so that
694 surrounding environment to determine the dosage or 757 they can survive and have competitive quality. If
695 use of appropriate types of fertilizers and growing 758 you use more modern equipment and machines, it
696 substances (according to soil conditions), 759 will automatically speed up, facilitate, and increase
697 understanding (ethics) of the production flow right on 760 production activities and productivity levels can be
698 target to the services provided to customers after sales 761 more optimal. Likewise with the case at the Takalar
699 to create customer satisfaction for their products. 762 Sugar Factory, the use of old production machines
700 Likewise, without the use of high technology, the 763 may affect the low yield achievement which has so
701 utilization of human resources will not work optimally 764 far been far from the target. One of the most
702 if it is not matched with technology that is following 765 powerful factors for increasing the yield of cane
703 the strategy. Those factors are then interconnected to 766 sugar is the use and utilization of technology
704 the criteria elements (alternative strategies) that will 767 (techno ware), namely good integrated equipment
705 form strategic priorities so that the optimal 768 and machines, such as the use of the Internet of
706 management strategy in the Takalar Sugar Factory 769 Things (IoT) for each production line. If the factory
707 value chain can be identified. 770 could take advantage of the use of technology, the
708 771 expected output is to minimize wasting (molasses),
709 3.8. Optimal Alternative Strategic Plan Priority 772 maximize the internal and external performance of
710 773 the factory, and reduce production costs which will
711 The alternative strategy priority to be more 774 affect the value chain [16].
712 optimal is to carry out a form of strategic assessment 775 3. Increasing sugar cane and sugar production
713 from the TOWS matrix that has been done before and 776 capacity
714 adapted to the conditions of the Takalar Sugar 777 The Takalar Sugar Factory has a milling capacity
715 Factory's capabilities. Then proceed with giving 778 of only 2400 TCD which is the minimum standard
716 weight to each alternative strategy using the hierarchy 779 capacity for a sugar factory. Considering that the
717 process method as has been done in the strategy factor 780 amount of sugar demand for both consumption and
718 criteria. The weight score calculation is done by 781 industry tends to increase, this should be a priority
719 multiplying the factor weight values and the 782 consideration for factories to carry out on-farm
720 alternative strategy weight values, resulting in the 783 restructuring through the development of
721 following priority design optimal management 784 sugarcane planting areas, sugarcane quality (yield),
722 strategy for the Takalar Sugar Factory value chain on 785 modern cultivation techniques and factory
723 table 11. 786 revitalization (off-farm). Factory revitalization by
724 The priority strategy chosen is also very closely 787 increasing productivity through increasing milling
725 related to the achievement of results in the mapping of 788 capacity, developing the quality of human
726 value chain activities, where the lowest activity, 789 resources, especially the factory operations section,
727 namely technology and service development, needs to 790 and replacing old machines.
728 achieve management optimization to create added 791 4. Maintain and increase market share
729 value (value added) as well as a competitive 792 Maintaining and increasing market share can
730 advantage for the Takalar Sugar Factory business. 793 increase added value because it makes the factory
731 1. The efficiency of prasaproni sugarcane production 794 known and growing rapidly compared to
732 Infrastructure and farming production facilities 795 competitors. Automatically this becomes one of the
733 are the main factors in the agro-industry business. 796 factors of competitive advantage that factories will
734 One prasaproni that has a major contribution is the 797 have in their value chain. The market share for
 8 Sumarata et al. (2023), Journal Industrial Servicess, vol. xx, no. yy, month, pp. xx–yy, xxx

794 sugar products to date is all types of consumers 839 in sugarcane production, IoT technology production
795 because sugar products are one of the basic needs. 840 for creating value added, increasing sugar cane and
796 Reviewing its strategic product position, Takalar 841 sugar production capacity as well as maintaining and
797 Sugar Factory must absorb this opportunity as well 842 increasing market share.
798 as possible. A company will have a competitive 843
799 advantage if the company is in favorable conditions
800 from five (5) competitive factors, namely the spread 844 References
801 of new competitors, the potential to develop
802 substitute products, the strength of the factory's 845 [1] Directorate General of Estate Crops. 2021. Statistical of
803 position as a supplier, the power of the factory in 846 National Leading Estate Crops Commodity. Jakarta:
804 offering to consumers, and defense. so that it can 847 Secretariate of Directorate General of Estate Crops.
805 compete with other existing companies. Likewise, 848 [2] Pusat Penelitian dan Pengembangan Perkebunan. 2012.
849 Budidaya Dan Pascapanen Tebu.
806 Takalar Sugar Factory could take Porter's
850 [3] Indonesian Sugar Cane Statistics. 2021. Statistics
807 competitive factors by taking advantage of external 851 Indonesia. Jakarta: Directorate of Food Crops,
808 opportunities and internal strengths that it already 852 Horticulture, and Estate Crops Statistics.
809 has, namely as a supplier of products and relatively 853 [4] Kaplinsky, R., & Morris, M. (2000). A handbook for value
810 stable price sells so it survives in business 854 chain research (Vol. 113). Brighton: The University of
811 competition. What factories need to do is increase 855 Sussex, Institute of Development Studies.
812 market share optimally by increasing the 856 [5] Porter, E. M. 1985. Competitive Advantage-Creating and
813 promotion of their products both through print and 857 Sustaining Superior Performance, New York: Free Press.
814 digital media. This situation was carried out 858 [6] Rastogi, N. & Trivedi, K. M. (2016). Pestle Technique—A
859 Tool to Identify External Risks in Construction Projects,
815 because the Takalar Sugar Factory already has a
860 International Research Journal of Engineering and
816 new packaged product (1kg) so that it can be
861 Technology (IRJET).
817 offered to its final consumers (level 2 consumers), 862 [7] Ravanava, G. & Charantimath, P. (2012). Strategic
818 without going through distributors or level 1 863 formulation using TOWS matrix – a case study.
819 consumers in its value chain. So that can have an 864 International Journal of Research and Development.
820 effect 865 [8] Pearce II, John A. dan Robinson Richard B.Jr. 2008.
866 Manajemen Strategis 10. Salemba Empat: Jakarta.
821 4 Conclusions 867 [9] David F. R. 2011. Strategic Management: Concepts and
868 Cases. Edition 13th Pearson Education
822 The use of the value chain method through 869 [10] Weihrich, H. (1982). The TOWS matrix: a tool for
870 situational analysis. Long Range Planning.
823 value chain analysis at the Takalar Sugar Factory
871 [11] Alonso, J. A., & Lamata, M. T. 2006. Consistency In the
824 found that product flow, information, and prices did 872 Analytic Hierarchy Process: A New Approach.
825 not run optimally, resulting in weak productivity 873 International Journal of Uncertainty.
826 levels. The results of this analysis serve as a reference 874 [12] Saaty, T. L. (1994). Fundamentals of Decision Making and
827 for conducting further analysis with the help of the 875 Priority Theory with The Analytic Hierarchy Process. USA:
828 TOWS analysis method to increase productivity 876 Universitas Pittsburgh.
829 through a strategic plan based on an analysis of the 877 [13] Mubyarto. 2009. Pengantar Ekonomi Pertanian. Jakarta:
830 external and internal environment which is formed 878 LP3ES.
831 into the threats, opportunities, weaknesses, and 879 [14] Apeldoorn, Van. 1990. Pengantar Ilmu Hukum.
880 Terjemahan Oetarid Sadino. Jakarta: Pradnya Paramita.
832 strengths of the Takalar Sugar Factory. The results of
881 [15] Direktorat Jenderal Perkebunan. 2020. Statistik
833 this strategy are combined with the capabilities, 882 Perkebunan Unggulan Nasional 2019-2021.
834 capacity, and internal policies of the Takalar Sugar 883 https://ditjenbun.pertanian.go.id/template/uploads/2
835 Factory through focus group discussions with the help 884 021/04/ [Diakses tanggal 08-11-2022].
836 of analytical hierarchy process techniques to produce 885 [16] Sinulingga, S., & Sitompul, D. (2014). Optimalisasi
837 the main factors that influence the value chain are 886 Rendemen Gula melalui Pemanfaatan Teknologi
838 human resources with priority strategies for efficiency 887 Produksi pada Pabrik Gula Sei Semayang Pt
888 Perkebunan Nusantara II (Persero).
889
890
891
 Sumarata et al. (2023), Journal Industrial Servicess, vol. xx, no. yy, month, pp. xx–yy, xxx 9

892 List of tables

893 Table 1.
894 Random Index
N 1 2 3 4 5 6 7 8 9 10
1,
R 0,5 0 1,1 1,3 1,4 1,4 1,4
2
I 0 0 0,8 9 2 4 2 1 5 9
895
896 Table 2.
897 Total productions costs

Actors 2018 2019 2020 2021 2022

Tebu Rakyat
Rp. 10.400.000
Mandiri Farmers Rp. 12.000.000 Rp. 13.300.000 Rp. 14.800.000 Rp. 15.300.000
Tebu HGU
Rp. 10.400.000
Gapoktan Farmers Rp. 12.000.000 Rp. 13.300.000 Rp. 14.800.000 Rp. 15.300.000
Takalar Sugar
Factory Rp. 9.863.504.932 Rp. 11.963.804.213 Rp. 12.229.288.992 Rp. 12.203.270.747 Rp. 12.825.811.225

898
899 Table 3.
900 Selling Price of Takalar Sugar Factory
901
Selling Price Actors 2018 2019 2020 2021 2022
Tebu Rakyat
Mandiri Rp. 7.590 Rp. 7.755 Rp. 7.920 Rp. 8.085 Rp. 8250
Farmers
White Cristal
Tebu HGU
Sugar
Gapoktan Rp. 6.325 Rp. 6.463 Rp. 6.600 Rp. 6.738 Rp. 6.875
(HET)/kg
Farmers
Takalar Sugar
Rp. 11.500 Rp. 11.750 Rp. 12.000 Rp. 12.250 Rp. 12.500
Factory
Tebu Rakyat
Mandiri Rp. 125.400 Rp. 128.700 Rp. 132.000 Rp. 135.300 Rp. 138.600
Farmers
Molasses Tebu HGU
(HET)/Ton Gapoktan Rp. 104.500 Rp. 107.250 Rp. 110.000 Rp. 112.750 Rp. 115.500
Farmers
Takalar Sugar
Rp. 190.000 Rp. 195.000 Rp. 200.000 Rp. 205.000 Rp. 210.000
Factory
902
903 Table 4.
904 Actor Value Streams
Profit Margin Value
Value Chain (Rp/kg) Margin Percentage (%)
(Rp/kg)
No. Sugar Marketing Chain White White White
Crystal Molasses Crystal Molasses Crystal Molasses
Sugar Sugar Sugar
The Cost of sugarcane
1. production Tebu Rakyat 1.827 86 - - - -
Mandiri Farmers
The cost of sugarcane
2. production HGU Gapoktan 1.827 86 - - - -
Farmers
Sugar cane processing costs at
3. 667 31 - - - -
the Takalar Sugar Factory
Prices are at the level of Tebu
4. 11.385 138 9.558 52 31,58 4,00
Rakyat Mandiri Farmers
Prices are at the level of Tebu
5. 9.488 115 7.661 29 25,31 2,23
HGU Gapoktan Farmers
Prices are at the producer level
6. 11.750 210 11.083 170 36,61 13,74
of the Takalar Sugar Factory
7. Prices at the marketer level 13.718 1.250 1.988 1.040 6,50 80,04
The final price received by
8. 13.718 1.250 - - - -
consumers
Total 30.271 1.299 100 100
905
 10 Sumarata et al. (2023), Journal Industrial Servicess, vol. xx, no. yy, month, pp. xx–yy, xxx

906
907 Table 5.
908 Calculation results of the Takalar Sugar Factory value chain based on Porter weights
Relative
Activity Value Score
weight
Primary Activity:
Inbound logistics
a. Farmers have difficulty dealing with resource management issues related to sugarcane productivity such
as land, seeds, fertilizer, saproni, and labor. 0,13 1,7 0,22
b. Due to the difficult (limited) supply of raw materials, the impact on the business of managing the value
chain of the Takalar Sugar Factory was disrupted.
Operation
c. Low milling capacity and a limited supply of raw materials resulted in sub-optimal sugar productivity.
On the other hand, the Takalar Sugar Factory is still experiencing difficulties in monitoring the use of all
the machines in the factory. 0,13 2,05 0,27
d. The use of factory machines and equipment does not entirely use renewable technology, so the Takalar
Sugar Factory has difficulty in supervising and controlling operating processes following operational
standards.
Outbound logistics
e. The Takalar Sugar Factory has difficulty managing the number of defective products that do not comply
with national product standards.
0,11 2,45 0,27
f. The Takalar Sugar Factory finds it difficult to create a balanced distribution channel between the factory
network and the head office where product handling and sales (offline) are at the head office. In addition,
it is difficult to use information technology because the factory is in a rural area.
Marketing and sales
g. The Takalar Sugar Factory has weaknesses in sales and promotion due to the lack of quality human
resources, resulting in less innovative and competitive product results, and has not made strategic branch
office location arrangements that can function more effectively as product providers and product services 0,13 1,85 0,24
to end consumers.
h. The Takalar Sugar Factory in product sales and promotions has not fully utilized salespeople, causing the
unavailability of sufficient information to convey information to consumers.
Service
i. The Takalar Sugar Factory has difficulties in carrying out internal services to both partners and 0,05 1,4 0,07
employees and it is difficult to interact with consumers directly due to the limited sales force
Total 0,55 1,07
Relative
Activity Value Score
weight
Support Activities:
Company Infrastructure
a. The general management information system and controls that are not optimal cause the Takalar Sugar
Factory to still have difficulties in dealing with the problem of product accumulation in the warehouse. 0,19 2,03 0,39
b. And have an impact on operations and financial management.
c. As well as the drafting of the work budget becomes weak.
Human Resource Management
d. The system of recruiting employees, especially seasonal and PKWT owned by the Takalar Sugar Factory,
is through ordinary and weak selection.
0,12 1,7 0,20
e. This is due to the lack of implemented HR training units, such as developing HR management,
developing a reward & punishment system, developing OSH for HR, and developing HR information
technology.
Technology Development
f. The Takalar Sugar Factory has not fully used modern sugar cane processing technology so it cannot
0,07 1,5 0,11
produce high-quality products. In addition, the Takalar Sugar Factory has not been able to increase
innovation and modernize its products.
Procurement
g. The Takalar Sugar Factory relies on a structure to supply raw materials from partners, namely farmers.
So, if there are difficulties in procuring raw materials because the raw materials are not sufficient to meet
the needs for raw materials, plus external factors that greatly influence. In addition, the raw materials
needed by the Takalar Sugar Factory have not met the specifications in terms of cleanliness, freshness, 0,07 1,7 0,12
and the target of the required yield level so the quantity and continuity of the supply of raw materials has
not been as planned. In addition, there are frequent delays for production inputs such as transportation
equipment, weighing, inspectors, and waste processing which also have an impact on operational
activities.
Total 0,45 0,82
909
910 Table 6.
911 Performance Measurement of the Total Value Chain of Takalar Sugar Factory
912
No
Value Chain Activity End of Score
.
1. Primary Activity 1,87
2. Supported Activity 0,82
Total 1,89
913
914
 Sumarata et al. (2023), Journal Industrial Servicess, vol. xx, no. yy, month, pp. xx–yy, xxx 11

915
916
917
918
919
920 Table 7.
921 External-Internal Environmental Factors
922
No Threats Opportunities
.
1. Fluctuation price that affect the level of inflation The phenomenon of price fluctuations and demand
2. Diseases and inhibit sugarcane productivity Availability of raw materials continuously
3. The demands for employment opportunities The growth of farmer groups around the factory
4. Import levels are getting higher Direct support by the government
5. Many substitute products (competitors) Purchasing power continues to increase
6. Diversity of farmers' backgrounds and interests The demand for products is increasing
7. Climate or extreme weather changes Advances in technology and information
8. Brand competition Local sugar market opportunities

No
Weaknesses Strengths
.
1. Limitations of sugarcane planting land Personal branding embedded in the community
2. Minimal production capacity Affordable selling price to customers
3. Underdeveloped technology Product quality conforms to national standards
4. High operating costs Quality assurance of products to be supplied
5. 1 kg packaged sugar operates for 2 years Company infrastructure support
6. Implementation of management is still not good Product innovation to create added value
7. Insufficient product introduction Scheduled and timely product distribution
923
924 Table 8.
925 EFE Matrix
No. External Factor Weight Rating Weight score
Threats
1 Price fluctuations that affect the inflation rate 0,06 1,75 0,10
2 Diseases and inhibit sugarcane productivity 0,07 1,25 0,07
3 The demands for employment opportunities 0,05 3,50 0,18
4 Import levels are getting higher 0,06 2,25 0,13
5 Many substitute products (competitors) 0,07 1,75 0,12
6 Diversity of farmer backgrounds and interests 0,06 3,50 0,22
7 Climate or extreme weather changes 0,06 1,25 0,07
8 Brand competition 0,07 1,75 0,13
Threats Total 0,49 1,01
Opportunities Total 0,51 1,56
Opportunities
1 The phenomenon of price and demand fluctuations 0,06 2,50 0,16
2 Continuous availability of raw materials 0,07 2,50 0,17
3 Growth of farmer groups around the factory 0,07 2,50 0,19
4 Direct support by the government 0,07 3,25 0,22
5 Purchasing power continues to increase 0,06 3,75 0,22
6 Product demand is getting higher 0,06 3,75 0,24
7 Advances in technology and information 0,07 2,75 0,18
8 Local sugar market opportunities 0,06 3,00 0,19
Total Value 1,00 2,57
926
927 Table 9.
928 IFE Matrix
No. Internal Factor Weight Rating Weight score
Weaknesses
1 Limited land for planting sugarcane 0,07 2,00 0,14
2 Minimal production capacity 0,07 2,50 0,18
3 Backward technology 0,06 2,50 0,15
4 High operational costs 0,07 1,00 0,07
5 Innovation of 1kg packaged sugar products 0,07 2,25 0,17
6 Implementation of management is still not good 0,07 2,50 0,16
7 Product introduction is not optimal 0,06 3,25 0,21
Weaknesses Total 0,47 1,08
Strengths Total 0,53 1,35
Strengths
1 Personal branding embedded in society 0,08 2,25 0,17
2 Affordable selling price to customers 0,08 3,00 0,23
3 Product quality according to national standards 0,07 3,50 0,26
4 Guarantee the quality of the products to be supplied 0,08 3,50 0,28
 12 Sumarata et al. (2023), Journal Industrial Servicess, vol. xx, no. yy, month, pp. xx–yy, xxx

5 Internal support and company infrastructure 0,08 2,25 0,19

6 Product innovation to create added value 0,07 2,00 0,14
7 Scheduled and timely product distribution 0,07 1,25 0,08
Total Value 1,00 2,43
929
930
931
932
933 Table 10.
934 Weight of Factor Interests
Factor Score Ranking
Human Resources 0,30 1
Technology 0,26 2
Management 0,24 3
Marketing 0,20 4
935
936 Table 11.
937 Value Chain Strategy Priorities
Factor Score Ranking
Sugarcane production efficiency (prasaproni) 0,154 1
Production of IoT technology for added value creation 0,148 2
Increasing sugar cane and sugar production capacity 0,143 3
Maintain and increase market share 0,129 4
Supervision and control on product quality 0,115 5
Product planning and development 0,106 6
Maintain and improve product quality 0,103 7
Implementation of sugar protection policy 0,103 8
938
 Journal Industrial Servicess, vol. xx, no. yy, Month 20xx

939 List of figures

940
941 Figure 1. The point of entry value chain
942

943
944 Figure 2. Value chain mapping of molasses and white crystal sugar
945

946
947 Figure 3. Value Chain Model of Takalar Sugar Factory Value Chain Actors
948

*Corresponding author: Journal Industrial Servicess is licensed under a

Email: denadsuma@gmail.com Creative Commons Attribution-ShareAlike 4.0
International License (CC BY-SA).
http://dx.doi.org/xxxx
 14
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949
950 Information:
951 : highest activity
952 : lowest activity
953
954 Figure 4. Mapping the highest and lowest activities in the value chain at the Takalar Sugar Factory
955

956
957 Figure 5. EI Matrix (External-Internal)
958
959
960
961
962
963
964
965
966
967
968
969
970
971
972
973
974
975
976
977
Strengths – S Weaknesses – W

1. Personal branding embedded in the 1. Limited land for planting sugarcane

community 2. Minimum production capacity
2. Affordable selling price 3. Underdeveloped technology
 15
Sumarata et al. (2023), Journal Industrial Servicess, vol. xx, no. yy, month, pp. xx–yy, xxx

3. Quality of products according to

standards
4. Quality assurance of products to be 4. High operational costs
supplied 5. 1kg packaged sugar is a new product
5. Internal support and company 6. Implementation of management is still
infrastructure not good
6. Product innovation to add added value 7. Product introduction is not optimal
EXTERNAL FACTORS 7. Scheduled and timely product
distribution
Opportunities – O

1. The phenomenon of price and demand WO Strategy (Technology)

fluctuations SO Strategy (Management)
2. Availability of raw materials
continuously 1. Increase sugar cane and sugar
1. Maintain and improve product quality
3. The growth of farmer groups around production capacity (W1, W2, W4, O2,
(S2, S3, S4, S7, O2, O3, and O7)
the factory O3, O5, O6 and O8)
2. Maintain and increase market share (S1,
4. Direct support by the government 2. IoT technology for added value creation
S5, S6, O1, O4, O5, O6 and O8)
5. Purchasing power continues to increase (W3, W7, O4 and O7)
6. Product demand is getting higher
7. Advances in technology and
information
8. Local sugar market opportunities
Threats – T

ST Strategy (HR)
1. Price fluctuations affect inflation WT Strategy (Marketing)
2. Diseases and inhibit sugarcane
productivity 1. The efficiency of the prasaproni
3. Society's demand for job opportunities sugarcane production process (farm 1. Implement a sugar protection policy
4. Higher levels of imports production infrastructure and facilities) (W1, W2, T2, T6, T7)
5. Number of substitute products (S5 and T6) 2. Doing planning in product development
(competitors) 2. Supervision and control on product (W6, T5, and T8)
6. Diversity of farmer backgrounds and quality (S3, S4, S7, T2 and T7)
interests
7. Climate and extreme weather changes
8. Brand competition
978
979 Figure 6. TOWS Matrix
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980 Revision form

981 Comments from Editor

N Editor’s somments Authors’ response

o
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2
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982
983 Comments from Reviewer #1

N Reviewer’s comments Authors’ response

o
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2
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984
985 Comments from Reviewer #2

N Reviewer’s comments Authors’ response

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2
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986