INTERNATIONAL JOURNAL OF SOCIAL SERVICE AND RESEARCH

BUSINESS STRATEGY ANALYSIS OF COCOA AGRIBUSINESS COMMODITY EXPORT COMPANY AT AGRO TAMA

Marina Diah Hapsari*¹, Musran Munizu², Abdul Razak Munir³

Department of Agribusiness, Post Graduate Program, Universitas Hasanuddin, Makassar, South Sulawesi, Indonesia¹

Department of Management, Faculty of Economics and Business, Universitas Hasanuddin, Makassar, South Sulawesi, Indonesia^2,3

Email: [email protected]*, [email protected], [email protected]

Abstract

Cocoa, which is known as one of the people's plantations, is one of the commodities that has a positive contribution during the Covid-19 pandemic. The positive results of macro data related to the contribution of agriculture, especially cocoa to Indonesia's income during the pandemic, in fact experienced problems in raw materials which experienced a gradual decline in productivity in recent years, and also affected the productivity of several domestic cocoa companies. The decline in raw materials and the COVID-19 pandemic that has occurred since the end of 2019 also added to other problems faced by agricultural commodity export companies, including Agro Tama. Agro Tama is a domestic export company located in Makassar City which has been established for more than 20 years and contributes to the Indonesian economy through the export of cocoa beans. This study aims to analyze the company's internal and external factors, namely Strength, Weakness, Opportunity and Threat to produce an alternative strategy that is right for the company's condition. The results of the SWOT analysis show that the company's condition is in quadrant III strategy, namely WO (Weakness Opportunity) and produces 4 alternative strategies which are then analyzed again using the Analytical Hierarchy Process model. The results of the AHP analysis resulted in a proposed priority strategy, namely optimizing the company's export commodity diversification, with the main objective of the analysis model being the company's business development during the pandemic with a weight of 0.303.

Keywords: SWOT; AHP; cocoa export business performance

Received 22 May 2022, Revised 01 June 2022, Accepted 21 June 2022

Volume data for the last 3 years shows a quite significant level of fluctuation. Fluctuations in export volumes were caused by the uncertainty of the supply of commodities received even before the pandemic occurred. In addition, the high level of competition between similar companies in Makassar City, which also offers commodity drying services with a larger capacity, has increased in recent years. The pandemic conditions that occurred throughout 2020 also added several new problems for the company, such as changes in working hours and demands for management to maintain employee conditions and be able to predict situations amidst uncertain economic conditions. Some of these changes are considered to have an impact on the company's performance which also depends on daily field activities.

Impact of the Covid-19 Pandemic on Exports and Imports of Agricultural Commodities showed that the positive trend that was widely discussed regarding the influence of agriculture in the Indonesian economy, experienced an increase in July 2020 (Yofa & Erwidodo, 2020). However, the results of the study also showed a significant decline as well. happened at the start of the pandemic. Cocoa exports in 2020 showed a positive but not significant value because they were only around 0.08% compared to 2019. The results of the Covid-19 survey analysis of business actors (Volume II, 2021) showed that the agriculture and livestock sector was 55.28% and the warehousing sector 81.11% were in fact also affected by the regulation amidst the uncertainty of economic conditions and had to temporarily stop operating. This means that the positive data shown by Indonesia for its contribution to national economic income, on the other hand, also experiences obstacles that have an impact on the internal scope of related industrial companies. Cocoa business and SMEs in the Agricultural Technology Park, also shows the problem of lack of supply of cocoa beans and the current condition of cocoa is one of the obstacles so that business turnover cannot run optimally (Fauzi, Falah, & Suwondo, 2019). This research also seeks to formulate the right business development strategy to improve the company's existence. The results of the study indicate that diversification of the final product is an alternative strategic priority that can help TTP SMEs to maintain the company's existence in the community.

Based on the description of Agro Tama and correlated with Indonesian macroeconomic data as well as empirical research that has been carried out previously, it is important then that the company management is able to study more deeply apart from the opportunities they have optimized, whether there are other challenges, seeing the pandemic conditions that have not ended yet. Measurements related to threats and opportunities are one of the concepts of the company's business strategy known as SWOT analysis (Strength, Weakness, Opportunity, and Threat) (Rangkuti, 2015).

As an analytical tool, Coman and Rowen in Suciati, Utami, and Jaya (2021) explain that SWOT is useful for building effective organizational and competitive strategies. With a SWOT analysis, a company is expected to be able to develop strategies that have been obtained from the results of the company's internal and external analysis, then use the AHP (Analytical Hierarchy Process) to find the main strategic priorities.

The application of the AHP model according to Saaty in Noviandri, Tama, and Yuniarti (2015), is suitable for use in the decision-making process of complex problems such as planning, determining alternatives, setting priorities, to conflict resolution. Based on the background and problem statements described above, the purpose of this study is to analyze the company's internal and external factors that affect the company's business performance and analyze the proposed alternative strategic priorities that are able to optimize the company's business, especially during the Covid-19 pandemic.

METHOD

This research lasted for ± 2 months, namely January-March 2022 with the object of research being the Agro Tama Company which was selected purposively with the consideration that the company is one of the exporters that actively contributes to national export income. This research is case study method (explanation without any hypothesis-test) using a quantitative and qualitative approach. The data used in this study consisted of primary data and secondary data. Primary data were obtained from informants who in this study amounted to 7 people and are informants (experts) who are considered to know and master the problems studied (Faisal, 2014). The respondents consisted of 5 industry players and 2 external parties. Secondary data was obtained from literature with reliable sources such as books, journals and reports related to the object of research.

Data analysis

The analysis used in this study is divided into two stages, namely SWOT and AHP analysis, the framework of thought in Figure 2:

a) Stages

Analysis SWOT analysis is carried out through identification of the company's internal and external environment, then the informants conduct an assessment of the identification results which are divided into an assessment of the achievement or condition of the current factor. After identification is done, then in formulating the company's strategy, the internal factor matrix (IFE) and the external factor matrix (EFE) are used which will then produce a SWOT matrix for the company's position.

b) Stages Analytical Hierarchy Process

The strategy formed in the results of the SWOT analysis, then re-analyzed with the AHP questionnaire instrument formed through the formulation of a hierarchical model, and then processed using software Expert Choice V.11. The AHP model is used to analyze the proposed strategic priorities that the company can implement with the aim of developing and improving the company's business performance. AHP analysis is the principle of compiling a hierarchy that describes complex problems into simpler elements, where the hierarchy is divided into several levels such as Goals, Criteria, Sub-Criteria, and Alternative Strategies (Noviandri et al., 2015).

Table 1

Assessment of the company's internal

factors Internal Factors		Rating	Weight	Score
Strength (strength)
1	Business Location	2.71	0.10	0.27
2	Quality of export commodities	2.71	0.13	0.33
3	Company management capability	3.29	0.12	0.32
4	Quality and quantity of labor	2.86	0.16	0.30
5	Location ownership status business	3.00	0.10	0.27
6	Coverage of the company's business	3.71	0.16	0.39
7	Availability of business support infrastructure	2.57	0.12	0.28
8	Standardization of measuring instruments/infrastructure of the company	3.00	0.12	0.35
Weakness Labor
9	incentives	2.57	0.17	0.44
10	Source of cocoa beans for personal processing	2.14	0.14	0.31
11	Company publication activities	2.71	0.18	0.49
12	Company branding	2.57	0.18	0.46
13	Distribution process to and from business locations	2.57	0.17	0.44
14	Company K3 Standards	2.86	0.15	0.43

Source: Processed Data, 2022

factors		Rating	Weight	Score
Opportunity and
1	central government support	3.57	0.15	0.54
2	Market demand for cocoa	3.14	0.17	0.53
3	Cooperation with suppliers	3.43	0.19	0.66
4	Partnership with management industry/factory	3.14	0.14	0.45
5	Potential of other agribusiness export commodities	3.71	0.23	0.84
6	Advances in technology and information	2.86	0.12	0.34
Threat of
1	cocoa beans as the main commodity	1.86	0.21	0.38
2	Government policy/intervention regulations related to exports	2.14	0.21	0.44
3	The level of competition of similar business in Makassar City	2.00	0.22	0.43
4	Conditions of the Covid-19 pandemic	2.14	0.21	0.44
5	Dollar Currency Value Fluctuation	2.29	0.16	0.38

EFAS

IFAS

Strength

1. Business Location

2. Quality of export commodities

3. Ability of company management

4. Quality and quantity of workforce

5. Ownership of business location

6. Scope of company business

7. Availability of infrastructure

8. Standardization of measuring instruments/company infrastructure

Weight 2.51

Weakness

1. The concept reward & Punishment of labor

2. Source of personal processing cocoa beans

3. Company publication activities

4. Company branding

5. Distribution process to and from business locations

6. Company OHS Standard

Weight 2.58

Opportunity

1. Local and central government support

2. Cocoa commodity market demand

3. Cooperation with suppliers

4. Partnership with industry/factory management

5. Potential of other agribusiness export commodities

6. Advances in Technology and Information

Weight 3.36

1. Increase sales and export quality of cocoa by establishing a development division that focuses on business development by looking at market potential to adjust the quality and suitability of export market demand

2. Optimization of company infrastructure from real time recording system, warehouse capacity, maintenance of drying machines with the application of more appropriate technology

3. Building cooperative relationships with the government by participating in export-related events, job fairs or holding their own activities, which invite similar industries, and the government to improve the company's existence

4. Establish branches or subsidiaries to make it easier to reach locations with better commodity potential as well as suppliers from outside.

5. Establish collaborative activities with extension workers at local farmers' locations to provide education and supervision of the proper cultivation of cocoa related to potential

Weight 5.87

1. Increase cooperation again through capital assistance / input to partner farmer groups to build sustainable cooperation to fulfill the company's cocoa bean supply.

2. Evaluation of Human Resources through the HR&GA department related to employee safety and welfare which is also considered capable of influencing performance and quality in the supervision, processing and distribution of commodities.

3. Increasing publication activities, company branding by utilizing technology to expand market share through partnerships with industry players/manufacturing factories so that sales are not limited to export companies.

4. Diversification of export products/commodities to be sold looks at the opportunities/potential for agribusiness commodities that are available and able to be supplied by suppliers to the company.

Weight 5.94

Threat

1. Commodity supply and availability

2. Government policy regulations/interventions related to exports

3. Level of similar business competition in Makassar City

4. Covid-19 pandemic conditions

5. Fluctuations in Dollar Currency Value

Weight 2.08

1. Establish a legal research/development division that aims to seek information related to government policy updates on exports and mitigate business changes related to dollar fluctuations

2. Increase the company's business scope with the development of other commodities to see the decline in cocoa potential which is increasingly unstable

Weight 4.59

1. Establishing a marketing / public relations division to improve information and public understanding regarding the company and the existence of the business being carried

out 2. Evaluation of all departments in order to enter an endemic condition against Covid-19

3. Evaluation of the HR/GA department regarding employee conditions and rules regarding OHS, employment so that the company is able to compete with similar companies that have been standardized.

4.66 . weight

Table 5

Results of AHP Processing with the Highest Priority

Level	Definition	of Local Weight	Priority
1.	Scenario
	1. Optimistic	0.761	I
	2. Status Quo	0.164	II
	3. Pessimist	0.075	III
2.	Criteria
	Optimistic
	1. Participation of All Stakeholders	0.633	I
	2. Total Supply of Cocoa Beans	0.224	II
	3. Government Relations/Support	0.143	III
3.	Alternative Strategies
	1. Improving cooperation again through capital assistance / input to partner farmer groups to build sustainable cooperation to fulfill the company's supply of cocoa beans	0.198	IV
	2. Evaluation of Human Resources through the HR&GA department related to employee safety and welfare which is also considered capable of influencing performance and quality in the supervision, processing and distribution of commodities.	0.287	II
	3. Increasing publication activities, company branding by utilizing technology to expand market share through partnerships with industry players/manufacturers so that sales are not limited to export companies.	0.212	III
	4. Diversification of export products/commodities to be sold looks at the opportunities/potential for agribusiness commodities that are available and able to be supplied by suppliers to the company.	0.303	I

Source: Processed Data, 2022

Based on the results of calculations using expert choice software, it can be concluded that in the context of developing the company's business strategy during the Covid-19 pandemic, the scenario that is considered realistic to occur is optimistic, with the participation of all stakeholders. The active participation of all stakeholders according to the results of the respondents' assessment in this study is a criterion that needs to be prioritized by the Company in developing the company's business. It means participation is not only limited to being good and disciplined at work. Instead, all relevant parties from input to sales are actively involved in providing ideas, input, and improvements related to the company's vision and mission considering the current conditions. This is also considering the obstacles in developing the cocoa business gradually decreasing. Based on data processing using the AHP method, in order to achieve the goals in the development and participation of stakeholders, the priority order of business strategies is obtained as follows:

1) Optimizing the diversification of export products/commodities to be sold by the company by looking at the opportunities/potential of available agribusiness commodities (I)

Alternative The strategy of diversifying export commodities has started to be busy being launched by several competitors in the business of selling cocoa beans. The potential for cashew nuts as one of the other commodities that Agro Tama also sells has also received a positive response from the international demand market. Agro Tama also does not rule out the opportunity for suppliers who want to import other products to their factories for later resale locally or for export. In Southeast Sulawesi alone, cashew nut production was quite stable during the pandemic, where in 2020 it will be able to produce 48,704 tons and in 2021 it will be 49,143 tons (Ditjenbun, 2022). The market demand for cashew nuts abroad is also getting better, with the main destinations currently being Vietnam and India. In addition, at the end of 2020, one of Makassar's global companies also succeeded in exporting cashew nuts to reach a value of 23 billion rupiahs, a very large value and shows considerable potential (Media Indonesia, 2022). This opportunity is a great opportunity for Agro Tama as a step to anticipate the reduced supply of cocoa beans and maximize the work of existing human resources so that they can play a role in searching for the best products in Sulawesi.

2) Evaluation of Human Resources through the HR&GA department related to employee safety and welfare which is also considered capable of influencing performance (II)

After conducting interviews and discussions with the respondents, HR evaluation became one of the strategies that were considered to need to be improved again. Regular or scheduled employee training has not been resumed. One of issues that arose in 2010, related to incentives for workers, emerged and caused a strike to occur and become news. Socialization and discussions from the relevant department, namely HRD, need to be maximized to identify deficiencies that need to be corrected considering that the company's performance also depends on how its human resources work. As with theories related to human resources, HR evaluation is one of the right solutions to be able to support the business success of a company (Dewi, Sudipta, & Setyowati, 2016).

3) Increasing publication activities, and company branding by utilizing technology to expand market share through partnerships with industrial/factory players (III).

As one of the companies that have been around for a long time with a workforce that is considered quite professional, the results of discussions and interviews with respondents resulted in questions related to the extent to which the company's efforts to maintain its existence amidst the ease of technology and the current acceleration of progress. Promotional activities and brand image in the current era are important unit carried out by businesses in influencing consumers to make purchases. Various studies and research related to the effect of publications on consumer interest have been widely circulated and show a positive relationship. It is certainly unfortunate to see that this activity is actually a point that has not been maximized by the company. Other opportunities that have not been taken into account can be created if the company maximizes this promotion, such as meeting with many partners and much larger factories and even getting the opportunity from the government to carry out single exports like several global companies. The task of marketing management in this regard can be used as material for evaluation and consideration for improvement and improvement of the company's existence. Good publication and branding will result in a reputation that provides the final result of creating trust for the company (Chandra, 2010).

4) Increasing cooperation again through capital assistance / input to partner farmer groups to build cooperation with the aim of fulfilling the company's cocoa bean commodity supply (IV)

Problems and one of the weaknesses that arise, namely the uncertainty of the supply of cocoa beans due to the absence of products from private processing or separate partners can be the main focus of company improvement. As one of the strategies used by the company to attract the interest and cooperation of farmers to supply their produce through capital assistance, it can be reconsidered seeing the pandemic conditions which are now gradually improving. By providing capital assistance and indirect input, the company is also able to carry out more optimal supervision and open communication opportunities with many other farmers who are able and willing to cooperate with the company. With the help of capital and targeted inputs and a commitment to the problem of cocoa bean supply, it is hoped that the problem of cocoa bean supply will gradually improve, seeing also one of the weakness factors of farmers in producing higher productivity due to the high cost of production and the ability or insight of the farmers themselves.

E. Sensitivity Analysis

Sensitivity analysis is used to analyze priorities, if there are changes in the assessment, for example, due to changes in economic conditions. Sensitivity analysis, in this study, will compare the results of data processing, if all respondents consider the scenario that is considered the most realistic is the status quo or pessimism. From the results of the analysis of the status quo scenario, where the company's external and internal environmental conditions are considered the same as current conditions, the priority target is the participation of all stakeholders, with the alternative strategy formed is the evaluation of human resources with a weight of 0.302.

The results of the respondent's assessment that the realistic scenario chosen is pessimistic, which means that the internal and external environmental conditions that affect the company are worse than current conditions, then the priority target is to increase cooperation and relations with the government to maximize the company's credibility with a weight of 0.350. The alternative priority strategy chosen based on the processing of respondents is to increase the company's publication activities, which so far have not been carried out properly and optimally. The presence of government intervention in development is a process to support and support community development potential. Based on its policy instruments, the government has a policy of open market operations, changing the legality / operation policy with the aim of increasing national production capacity, national income, creating job opportunities and others (Sumodinigrat, 2018).

CONCLUSION

Based on the analysis and identification of the company's internal factors, the results of the company's business coverage area and management capability are strength factors, while the availability of privately-owned commodity supplies such as privately owned processed plantations is the main weakness factor for Agro Tama. The identification of the company's external factors resulting in the potential of other available agribusiness commodities and government support for the agricultural export business is the biggest opportunity factors for the company, while the supply of cocoa beans from suppliers and the level of competition in similar businesses are the biggest threat factors. The results of the company's SWOT analysis resulted in an alternative strategy that can be recommended, namely WO (Weakness-Opportunity) with a score of 5.94 with four strategic choices formed. The results of the analysis using the AHP model produce realistic strategic priority proposals in which the goal of Company Business Development during the Covid-19 Pandemic is Optimizing agribusiness product/ commodity diversification with a weight of 0.303. The main strategic priority proposals presented based on research are still very likely to change, especially if things happen that are outside the company's plans. According to the researcher, the proposed second strategic priority related to the overall evaluation of HR and Manpower, according to the researcher, can be considered considering the current conditions faced by the company will not be able to be overcome with good cooperation and synergy from all relevant departments. In addition, discussions and interviews in a forum (focus group discussion) with informants as a whole can be an alternative for faster and interactive data collection in research using the AHP model.

REFERENCES

Aurachman, R. (2019). Proses Pengambilan Data Pada AHP (Analytical Hierarchy Process) Menggunakan Prinsip Closed Loop Control System. JISI: Jurnal Integrasi Sistem Industri, 6(1), 55–64. Google Scholar

BPS. (2021). Analisis Hasil Survei Dampak COVID-19 Terhadap Perlaku Usaha #2. Jakarta.

Chandra, A. I. (2010). Strategi Komunikasi Bisnis yang Efektif dalam mengatasi Krisis. Jurnal Administrasi Bisnis, 6(2). Google Scholar

Dewi, A. A., Sudipta, I. G. K., & Setyowati, D. S. (2016). Analisis Aspek Sumber Daya Manusia Terhadap Kinerja Pada Proyek Konstruksi Di Kabupaten Badung. Jurnal Ilmiah Teknik Sipil: A Scientific Journal of Civil Engineering, 20(2). Google Scholar

Fauzi, A. A., Falah, M. A. F., & Suwondo, E. (2019). SWOT analysis and strategy formulation for cocoa small and medium enterprise development in Nglanggeran area, Gunung Kidul regency-Indonesia: The case of Taman Teknologi Pertanian. Journal of Physics: Conference Series, 1367(1), 12045. IOP Publishing. Google Scholar

Media Indonesia, 2020. Mentan SYL Lepas Ekspor Meter dari Makassar ke Eropa. https://mediaindonesia.com/ekonomi/306541/mentan-syl-lepas-ekspor-mete-dari-makassar-ke-eropa. Diakses 20 Maret 2022.

Noviandri, M. R., Tama, I. P., & Yuniarti, R. (2015). Analisis Pemilihan Supplier Metallic Box Menggunakan Fuzzy Analytic Hierarchy Process (AHP)(Studi Kasus: PT XYZ–Malang). Jurnal Rekayasa Dan Manajemen Sistem Industri, 3(3), 132981. Google Scholar

Rangkuti, F. (2015). Personal SWOT analysis. Gramedia Pustaka Utama. Google Scholar

Suciati, R., Utami, K., & Jaya, B. P. M. (2021). Analisa SWOT Strategi Digitalisasi pada Era New Normal untuk Pertumbuhan Ekonomi di Sumatera, Indonesia. Jurnal Ilmiah Aset, 23(1), 63–83. Google Scholar

Sumodiningrat, G (2018). Responsi Pemerintah Terhadap Kewsenjangan Ekonomi. Jakarta: Per Pod

Sugiyono. (2019). Metode Penelitian Kuantitatif, Kualitatif R&D. Bandung: Alfabeta. Google Scholar

Yofa, R. D., & Erwidodo, E. S. (2020). Dampak Pandemi Covid-19 Terhadap Ekspor dan Impor Komoditas Pertanian. Dampak Pandemi Covid-19 Perspekt. Adapt. Dan Resiliensi Sos. Ekon. Pertan, 148. Google Scholar

Opportunity	1
1. The concept reward & Punishment of labor 2. Source of personal processing cocoa beans 3. Company publication activities 4. Company branding 5. Distribution process to and from business locations 6. Company OHS Standards	1. Supply and availability of commodities 2. Government policy interventions/rules related to exports 3. The level of competition for similar businesses in Makassar City 4. The state of the Covid-19 pandemic 5. Dollar Currency Value Fluctuations
WO (Weakness – Opportunity)
1. Increase cooperation again through capital assistance / input to partner farmer groups to build sustainable cooperation to fulfill the company's cocoa bean supply. 2. Evaluation of Human Resources through the HR&GA department related to employee safety and welfare which is also considered capable of influencing performance and quality in the supervision, processing and distribution of commodities. 3. Increasing publication activities, company branding by utilizing technology to expand market share through partnerships with industry players/manufacturers so that sales are not limited to export companies. 4. Diversification of export products/commodities to be sold looks at the opportunities/potential for agribusiness commodities that are available and able to be supplied by suppliers to the company.