3rd Asia Pacific International Conference on Industrial Engineering and Operations Management

Performance Analysis and Business Strategy using Economic Value Added (EVA) Method: A Case Study

Dessy Srikandi, Wahyudi Sutopo & Renny Rochani
Publisher: IEOM Society International
0 Paper Citations
Track: Graduate Student Paper Competition

The company was founded with the commercial purpose of obtaining profit, maximizing share value, and increasing sales & service. Companies must have good performance both financially and non-financially. A competent company can be identified through a description of the financial condition that reflects a well-structured and organized management process. Companies with superior and stable financial performance can attract and retain investors to continue to entrust their capital to the company. Financial performance assessment with profit and value orientation can use Economic Value Added (EVA). In a case study on a cable company in Indonesia, PT KMI Wire and Cable Tbk (KMI) suffered losses due to declining sales and the effects of the pandemic (2020). With the EVA method, financial performance is analyzed, and then we formulate a business strategy with the SWOT analysis method to obtain a tactical strategy and become a suggestion for managers to make decisions in strategy selection. Several strategies that can be considered are strengthening the private market by increasing tenders, expanding national and international business by using effective technology through online markets, reducing production costs by mass production of low-voltage cable types with industrial market coverage and housing, maintaining quality and competitive prices, strengthening distribution and marketing networks by conducting joint ventures for selling products in both national and international markets, strengthening the R&D team by involving universities in product innovation and managing CSR effectively so that the company automatically builds value through research activities and social actions involving educational institutions.

Published in: 3rd Asia Pacific International Conference on Industrial Engineering and Operations Management, Johor Bahru, Malaysia

Publisher: IEOM Society International
Date of Conference: September 13-15, 2022

ISBN: 978-1-7923-9162-0
ISSN/E-ISSN: 2169-8767