BUSINESS

PROPOSAL
BY : GUSFIKA AYU WANDARI
INTRODUCTION

Company A is a leader in the snack food market,

especially in flat wafers of south east asia. They
produces, distributes, and sells a range of wafers
products with a total of 3 million of wafers annually
and the products sold overseas averaged around 9%
of the company’s total sales in 2018. Based on
information that given, company A will increasing the
capacity from 3 million to 6 million wafers per year and
expand the business overseas.
 EXPANSION

For expansion, the company will be choose in

overseas. After analyzed the data from market

trends, population rate, direct manufacturing cost

include labor cost, ports, and buying pattern, we

will choose China country for expansion. Why ??

 Market Trends Population Rate
CAGR
16.00%

14.00% 15%

12.00% 13%
12%
10.00%

8.00%

6.00%

4.00%

2.00%

0.00%
China India Indonesia

- China : 11.7% (2019 – 2024)

- India : 13% (2016 – 2021)
- Indonesia : 15% (2015 – 2020)

From CAGR, Indonesia have higher CAGR for wafer

snack market but forecasted in 2015 – 2020.
Meanwhile, we will start the expansion after 2020.
China have 11.7% CAGR, although have lower CAGR China is the largest population in the world
but forecasted in 2019 – 2024. From that will be safe and demand for wafer snack will be
for company to expansion in China because we know increased.
CAGR after 2020.
And demand for wafer snacks in China has increased.
 Direct Manufacturing Labor Cost
Cost  China : $3.52/hour
 India : $0.92/hour
 Indonesia : $0.81/hour

Although, China have highest labor cost but they

have high skill labor force.
Top 10 Countries With a Skilled Labor Force,
Ranked by Perception. The study is based on a
survey with more than 20,000 global citizens from
four regions to assess their perceptions of 80
countries on 75 different metrics. Respondents to the
2019 Best Countries survey say these nations are
best at producing skilled workers.
China have highest cost in labor cost and natural gas but lowest 1. Japan 6. Canada
cost in electricity than India and Indonesia. Electricity and natural 2. Germany 7. Belgium
gas are variable cost. Variable cost is cost who depend from 3. South Korea 8. Denmark
changes capacity production. If want to increase capacity 4. China 9. Norway
production so electricity and natural gas also will be increased, and 5. US 10. UK
give benefit if electricity has lower cost. And labor cost is fixed
cost. Fixed cost is constant cost and unchanged despite an Source :
increase or decrease of production. If capacity production will be https://www.usnews.com/news/best-countries/slides
changed is not effect for labor cost. hows/top-10-countries-with-a-skilled-labor-force-rank
ed-by-perception?slide=9
 Ports
Cost Exporting a Container in 2014
$1,800.00

$1,600.00
$1,629.00 China have lower cost for exporting a
$1,400.00 container and it makes an advantage for
$1,200.00
$1,332.00
international market. The company can
$1,000.00 Cost/container distributes and sells their product in overseas
$800.00 with lower cost.
$823.00
$600.00

$400.00

$200.00

$0.00
China India Indonesia

Buying Pattern
Personal Consumption Expenditure
As % of aggregate PCE per capita, 2015 India China Indonesia
Food 29.90% 22.50% 38.50%
China have lower personal consumption expenditure (PCE) on food varies greatly. But based on information given that
personal consumption spending on packaged food in China is greater than in India. Indonesia have highest PCE per capita
and have 4 plants, from that plants Indonesia can fulfill their buying pattern of food.
STRATEGY

For increasing capacity production from

3 million to 6 million must have some

strategy such as sales, costs, products,

operations, people, and the business

process flow to achieve the targets.

 SALES COST
I. Promotion If want to increase production capacity,
 Media Publication (Advertising on Television and production cost also will be increased. Additional
Social Media) raw materials, operation, and labor will affect
 Giving discount and promo gift for customer such cost production. From that, to reduce cost
as lottery production must doing some strategy cost
 Promotion in society such as being sponsorship in analysys, such as :
social activities for branding image to customer.  Utilizing inventory product when market demand
 Giving target for sales staff is less than factory initial production
II. Distribution  Maximizing the work of production equipment
 Expand distribution in mall or stores  Set the number of hours worked or the number of
 Expand exporting in other country through plant labors
in China because cost exporting in China is lower
than Indonesia
 Expand distribution in all Indonesia region

OPERATION PEOPLE
To increase production capacity but also reduce labor
For increasing production capacity we can using existing
costs, we can doing several things :
equipment more effectively and not buying a new
 Recruit new labor but using outsourcing
equipment.
 Maintaining the number of labors but increasing
work hours
 Raw
Material
Orders Orders

Operating
SUPPLIER
PRODUCTIO RETAILER
N
Product
Product
LABOR CUSTOME
RS
Product

PROMOTIO SALES
N / DIGITAL
MARKETIN
Product
G
BUSINESS
Product
PROCESS
DISTRIBUTO FLOW
HOW TO MANAGE 1
Giving a direction clearly about the goals of
organization

ORGANIZATION The effectiveness of the organization is seen from

how the company can achieve the goal. From that, all
EFFECTIVELY workers must understand the goal of organization.

2 Arrange the strategy clearly

Starting from analyst and arrange of policies,

planning, and preparation of appropriate programs.

3 Supporting Facilities

Good facilities and infrastructure will certainly support

the performance of employees and easily achievement
the goal.

4 Supervision And Control System

Employee performance must also be monitored

properly. If something goes wrong, the manager can
do something that educates the problematic employee.

1 Performance
evaluation & benefits
Performance evaluation and
career progression can be a
key motivating factor for the
employees to work effectively
and efficiently.
HOW TO MANTAIN
COMPANY
2 Quality of work
PERFORMANCE
Organization performance can
also be described by evaluating
the reliability of service and by
understanding the quality of
customers of the organization. 

3 4
Training and Feedback mechanism
Development and Participative style
of management
Management must provide
Employees need feedback about
appropriate training and
their performance. Employees
development to the employees
need to be communicated about
to increase the efficiency of the
their actual performance and
employees individually. 
their expected performance.
THANK YOU