Strategic Factor Analysis for Exporter of Robusta Coffee Bean from Lampung, South Sumatra, Indonesia

Abstract

Business of robusta coffee beans in Indonesia has been centralized in Bandar Lampung, the capital of Lampung province in South Sumatra, as the main gate of export from Indonesia. About 75 percent of Indonesia coffee bean export is exported from Bandar Lampung. A local company named PT Asia Makmur (PTAM) has been present since 2008 in Bandar Lampung and would need to develop its business strategy   to preserve and escalate its incomes in the future. Internally the company strengths and weaknesses need to be identified as well as the external opportunities and threats for the company. This research considers the analysis of internal and external factors which to be summarized into Strategic Factor Analysis Summary (SFAS) which shall be divided into short term, medium term and long term strategic plan.  The result of this research was shown that production of special (premium) beans, storage and processing capacity are the main strengths of the company while the company needs to overcome its weaknesses which consist of business communication in English, international trade knowledge and qualified human resource. The company has dominant opportunities as well in its ability to do direct selling to end-users, to produce internationally-certified beans and increasing demand in domestic market. While the main threats for the company are the competition with foreign companies (multinational companies), the dynamic volatility of world coffee exchange and sales competition. Recommended strategy would be based on SFAS analysis result which shall be implemented through forward and backward integration.

Keywords: Strategy, Robusta coffee bean, IFAS, EFAS, SFAS.