Proposed Business Strategic Improvement to Accelerate Waste Management Business Unit at Building Materials Company (Case Study at Cement Inc)
Journal Title: International Journal of Current Science Research and Review - Year 2024, Vol 7, Issue 07
Abstract
The rising environmental concerns and regulatory measures in Indonesia have created new opportunities for the expansion of waste management services in the cement sector, specifically by utilizing thermal technology. The Waste Management Unit (WMU) of Cement Company presents substantial strategic opportunities for expansion and development. After undergoing a merger and acquisition, Cement Inc experienced a transformation and has now become a state-owned firm. This change offers WMU Cement Inc further opportunities for growth and expansion. The objective of this research is to identify the most effective strategy for the Waste Management Business Unit within the Cement Company using the Analytical Hierarchy Process. The study explores three fundamental research question: (1) What is the current situation for WMU Cement Inc in terms of market, money, customer, and organization? (2) What are the obstacles inside the organization and in the external environment that hinder the acceleration of waste management services in Indonesia, resulting in limited value creation for the company? (3) What are the suggested recommendations and strategic choices for the company to enhance its value absorption? The study used the SWOT (Strengths, Weaknesses, Opportunities, and Threats) and AHP (Analytic Hierarchy Process) framework to perform a comprehensive evaluation and evaluate three strategic options for the waste management division: retaining it within the cement firm, expanding it to the cement group as a whole, or establishing it as an independent entity. The results of this study indicate that the most favorable choice (40.6%) is to establish WMU as a separate entity, which offers greater advantages compared to fully integrating with the parent company (30.9%) and keeping the current business operations (28.4%). By creating WMU as an independent organization, it may effectively avoid market and pricing cannibalization amongst its subsidiaries and optimize operations. WMU Cement Inc possesses the capacity to assume a leading role in waste management services by offering waste solutions to all SIG subsidiary plants and other cement makers, including ITP. The benefits of this method include autonomous operations, targeted management, rapid decision-making, and varied income streams achieved via the cultivation of specialized skills and expertise in waste management. This decision presents a chance to attract targeted investments and collaborations that promote innovation and expansion in waste management.
Authors and Affiliations
Merdiano Buyung Maulana Rachman, S. T. , Yudo Anggoro, M. S. M. , Ph. D.
Factors Influencing Intention to Adopt Generative AI Tools in Indonesian Enterprise Users
Indonesian enterprises are in the early stage of adopting generative AI tools. A report from Forbes shows that AI companies around the world have raised around $354 billion for Generative AI technology. One of the key dr...
Machine Learning as Managerial Tool: A Case Study in ADNOC
In the current business environment, managers are facing challenges in managing different kinds of people. They find it difficult to track, evaluate, and manage employees in a fast-paced work setting. Machine learning is...
Barriers and Facilitators to Cervical Cancer vaccination Among Young Females in Chennai: A Cross-Sectional KAP Study
Cervical cancer develops in the cervix, primarily caused by persistent infection with high-risk types of human papilloma virus (HPV). It is one of the most common cancers in women, especially in low- and middle-income co...
Implementation of Bailouts on Umrah Financing Products at FIFGROUP Amitra Syariah in the Perspective of Positive Law and Islamic Law
The implementation of Umrah financing through bailouts is a product issued by PT. FIFGROUP (AMITRA) for Umrah financing through Umrah bailout funds using ijarah contracts, referring to Fatwa DSN MUI No. 09/DSN-MUI/VI/200...
Breaking the Chains: Transforming Africa's Economies through Sound Financial Management
The guide, “Breaking the Chains: Transforming Africa’s Economies through Sound Financial Management,” embarks on a comprehensive journey through the financial landscapes of African nations. It illuminates the pressing ch...