Developing The Strategy for Steel Sales by Scenario Planning Approach
DOI:
https://doi.org/10.58344/jws.v2i10.452Keywords:
steel industry, scenario planning, internal and external analysis, strategic planning, krakatau steelAbstract
The steel industry, often regarded as the mother of industry, holds a pivotal role in fostering national economic independence and supporting vital infrastructure projects. In Indonesia, the development of the steel industry stands as a key indicator of industrial advancement. However, the landscape has evolved dramatically, with escalating competition not just from PT Krakatau Steel but also from numerous emerging competitors producing similar products. This dynamic situation demands an aggressive sales strategy to secure market dominance, especially given the challenges posed by both local and international competitors. Addressing this, PT Krakatau Steel faces the essential question of how to optimize steel sales, approaching or even matching the plant's installed capacity, amidst this competitive environment. The solution lies in proactive strategic planning, which involves a meticulous analysis of both external and internal factors. Recognizing the need for foresight, the company has employed scenario planning, envisioning potential futures for the steel industry. By considering variables like raw material prices and government policies, four scenarios emerged: Armageddon, The King, The King's Speech, and Cast Away. Each scenario prompts a specific set of strategies and actions. Moreover, the company has established early warning systems to discern which scenario might unfold, enabling timely and precise responses. This forward-thinking approach culminated in a comprehensive strategic plan designed to guide PT Krakatau Steel through the complexities and uncertainties of the business landscape over the next seven years.
References
Barney, J. B., & Hesterly, W. S. (2020). Strategic Management and Competitive Advantage Concepts (6th ed.). The University of Utah..
Basson, E. (2020). 2020 World Steel in Figures. World Steel Association. Retrieved from Worldsteel: https://worldsteel.org/
Berawi, M. A. (2022, December 1). Nusantara Indonesia’s Smart and Sustainable Forest City. Deputi Transformasi Hijau dan Digital Otorita Ibu Kota Nusantara.
Chermack, T. J. (2011). Scenario Planning in Organizations: How to Create, Use, and Assess Scenarios. Berrett-Koehler Publishers, Inc.
Committee, S. and E. (2022). 2022 SEAISI Statistical Yearbook. South East Asia Iron and Steel Institute.
Cooper, D. R., & Schindler, P. S. (2014). Business Research Methods (12th ed.). New York: McGraw-Hill/Irwin.
Creswell, J. W., & Creswell, J. D. (2017). Research design: Qualitative, quantitative, and mixed methods approaches. Sage publications.
Every, S. (2020). The Growth Model. Retrieved from Alpha Learning.
Fahey, L., & Randall, R. M. (1998). Learning From The Future: Competitive Foresight Scenarios. John Wiley & Sons, Inc.
Garvin, D., & Levesque, L. (2006, July 31). A Note on Scenario Planning. Harvard Business School.
Gheyle, N., & Jacobs, T. (2017). Content Analysis: A short overview. Internal Research Note, 10.
Harto, J. D. (2021, October 16). Scenario Planning – A Tool for Navigating Strategic Risk. Scenarios to Strategy Inc.
IISIA. (2023). Sunset Review Anti Dumping Hot Rolled Coil (HRC) 7 Negara. Iisia.or.Id.
Janes, A., & Sutton, C. (2017). Ebook: Crafting and Executing Strategy: The Quest for Competitive Advantage. McGraw Hill.
Leshem, S., & Trafford, V. (2007). Overlooking The Conceptual Framework. Innovations in Education & Teaching International, 44(1), 93-105.
Lindgren, M., & Bandhold, H. (2009). Scenario Planning: The Link Between Future and Strategy (Revised and Updated Edition). Palgrave Macmillan.
Mugo, P. (2020). Porter's five forces influence competitive advantage in the telecommunication industry in Kenya. European Journal of Business and Strategic Management, 5(2), 30–49.
Porter, M. E. (1996). What is Strategy? Harvard Business Review, 74(6), 61-78.
Porter, M. E. (1980). Competitive Strategy: Techniques for Analyzing Industries and Competitors. New York: The Free Press.
Ramirez, R., & Wilkinson, A. (2016). Strategic Reframing: The Oxford Scenario Planning Approach (1st ed.). Oxford, United Kingdom: Oxford University Press.
Rothaermel, F. T. (2021). Strategic management. McGraw-Hill.
Schoemaker, P. J. (1995). Scenario Planning: A Tool for Strategic Thinking. MIT Sloan Management Review.
Schwartz, P. (1991). The Art of The Long View (1st ed.). New York: Bantam Doubleday Dell Publishing Group, Inc.
Thompson, A. A., Gamble, J. E., Peteraf, M. A., & Strickland III, A. J. (2022) Crafting and Executing Strategy: The Quest for Competitive Advantage – Concepts and Cases (23rd ed.). New York: McGraw-Hill.
Published
How to Cite
Issue
Section
License
Copyright (c) 2023 Journal of World Science
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-ShareAlike 4.0 International. that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.