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.
Keywords
Related Articles
- EP ID EP740692
- DOI 10.47191/ijcsrr/V7-i7-64
- Views 19
- Downloads 0
Franchise Potential in Food Industry Expansion Strategies in East Kalimantan
This study investigates the franchise potential in the food industry as part of expansion strategies in East Kalimantan, with a focus on the Wong Solo Group amid Indonesia’s capital relocation. Utilizing qualitative meth...
Water Quality Assessment of Lower Usuma Dam Water from Treatment plant to points of Consumption in Federal Capital Territory, Nigeria
This study investigated and compared the bacteriological, physicochemical and heavy metals concentrations of drinking water quality of Lower Usuma Dam from treatment plant to the points of consumption in three Area Counc...
The Effect of Magnetic Stirring Duration and Ascorbic Acid Concentration on the Yield of Reduced Graphene Oxide Isolated from East Kalimantan Bituminous Coal
East Kalimantan bituminous coal has a carbon composition of 70.24%, indicating a crystal structure of graphite layers. This makes it a viable material for creating reduced graphene oxide (r-GO), which has multiple advant...
Budget Transparency Nagan Raya Regency Government
This study aims to examine the effect of legislative oversight, regulation, technology utilization, and leadership style on budget transparency. This research was conducted based on information obtained from questionnair...
The Influence of Hedonic Shopping Motivation, Fashion Involvement, and Sales Promotion on Impulse Buying in E-commerce Shopee
The marked phenomenon of the fashion industry causes a person to experience behavior by unconsciously buying something without thinking Long or often called impulse buying driven by positive emotions and motivations. In...