A proposed corporate strategy plan for P.T. Texmaco Perkasa Engineering

As partial fulfilment of the subject Strategic Management , this term paper was conceived to formulate a strategy for P.T. Texmaco Perkasa Engineering, a private owned compant, which is a member of Texmaco Group, the biggest textile manufacturer in Indonesia. This paper presents how P.T. Texmaco Perkasa Engineering can become the most successful company in pioneering the engineering technology in td610extile weaving machinery manufacturing, improving the quality of textile products in Indonesia and contributing significantly to the development of the economy. The paper starts by identifying the industry- the textile weaving machinery industry i Indonesia, also in brief section about Indonesia textile industry, factors affecting the industry, major players and industry trens. From the industry analysis using Michael E. Porter\u27s five forces model, the opportunities and threats od the industry are identified. Then it continues with the P.T. Texmaco Perkasa Engineering internal conditions analysis and using the value chain analysis, the company\u27s strengths ansd weaknesses are recognized. Further, the paper probes into the strategies of P.T. Texmaco Perkasa Engineering. Based on the framework of Collins and Porras, the vison and mission was proposed. The vision is to be the most successful company in pioneering technology in textile weaving machinery manufacture and to achieve engineering excellence through the development og indigenous technology in textile machinery manufacture. The mission is to through the company s products and services, it will create the competitive advantages for he customers and will fulfill the machine requirements/demands of the textile industry and contribute to development of the economy. From the evaluation of the present objectives using the SNART method, the specific objectives were then identified to be able to give a clearer guide on how the company can achieve its vision ans mission. Baased from P.T. Texmaco Perkasa Engineering\u27s vision and missiion and also the proposed objectives, together with SWOT analysis, the generic strategy is then identified. The proposed generic strategy for the company is low cost leadership strategy. Corporate strategies were also developed along with its corresponding implementation plan. Since stratetgies that have been carefull formulated are of little value if they cannot be succesfully implemented, it is important to have an implemetation plan for the proposed strategies. The McKinsey\u27s 7-S framework was used as a guide for implemetation strategy. The central idea of the fraework is that organization effectiveness stems from the interaction of several factors, for it is an interrelationship between strategy, system, skill, staff, style and shared value. Implementation of a strategy requires a change in all the 7-S. Many of the carefully planned strategies do not work because of the failure in the execution, resulting from the inattention to one or any other S\u27s. Implementing strategies requires of tactical choices, trade-foo, conflicts, obstructions, misunderstanding and even errors