MM 5012 Business Strategy

Final Exam Holcim Strategy and Business Model

Executive 46 Ferdinand Throedu (29111343)

MASTER OF BUSINESS ADMINISTRATION SCHOOL OF BUSINESS AND MANAGEMENT INSTITUT TEKNOLOGI BANDUNG 2013

CHAPTER 1 INTRODUCTION

1.1.Company Profile Holcim is a pioneer and an innovator in Indonesia's fast-developing cement sector, as the market for homes, commercial buildings and infrastructure expands. Holcim is the only provider of a fully integrated range of 10 cement types, concrete and aggregates. Holcim is building a unique franchise, Solusi Rumah, to deliver complete, affordable housing solutions and upgrades, drawing on the skills of over 11,500 Holcim-trained masons, 399 franchisees as of mid-2011 and a growing telesales presence. Holcims products are sold in more than 15,000 retail stores across Indonesia. Holcim Beton was first to market with SpeedCrete, a fast-setting concrete that slashes time on repair work to roads and developments, while Holcims MiniMix phone service allows same-day ready-mixed concrete delivery; Holcim was also first with mobile concrete batching plants. Holcims construction industry seminars on best practices in large-scale concrete pHolcimsing for multi-storey building foundations are literally ground breaking. Holcim is pioneers in creating a professional centre of excellence in vocational and managerial skills, the Holcim Academy, drawing students from across Southeast Asia. Holcim serves Holcims home market of the island of Java from two major production sites and a grinding station with a combined finished cement capacity of 8.3 million tonnes per annum. A third production site in Tuban, East Java, of 1.7 mtpa is currently being constructed and is expected to open in 2013. Holcim operates multiple concrete batching plants, two stone quarries and an extensive logistics network of warehouses and silos. Holcims Geocycle team provides a total solutions waste disposal model for industry, municipalities and agriculture, providing Holcims customers with peace of mind that comes with the safe collection, storage and disposal of both hazardous and nonhazardous waste. As Holcims reputation has grown, Holcim has become solutions providers to a wide range of industrial and municipal users who number among the largest companies in Indonesia. Working under the principles of reduce, reuse and recycle, Holcims team of consultants also helps companies minimize their waste footprint.Geocycle pioneered safe disposal of CFC ozone depleting gases - the first facility in Southeast Asia. Holcim earns carbon credits under the UNFCCC Clean Development Mechanism for co-processing biomass, thus eradicating CO2 emissions from decomposition of discarded agricultural waste. In 2011, Holcims Cilacap Cement Plant was one of only a few businesses in Indonesia to

receive a Gold PROPER rating from the Ministry of Environment, the highest award in Indonesia for environmental and waste management and the second time the plant has achieved this result. Holcims Narogong Plant holds a Green PROPER Rating. The same year, Holcim has attained first place in the Green Industry Awards for the second year, and the Golden Flag occupational health and safety award for the third time consecutively. Holcim is also the only business to receive an Ozone Award recognising Holcims ongoing work to safely dispose of ozone depleting substances. For community relations, Holcim programmes were recognised by corporate social responsibility awards from non-profit Dompet Dhuafa Foundation and local governments.

1.2. Vision, Mission and Values Vision Building sustainable solutions for society's future.

Mission Holcim Indonesia will grow by creating value for stakeholders through: - delivering sustainable building solutions focused on distinctive customer segments - caring for safety and the environment - the development of people, innovative leadership and integrated networks

Values Partnership is our Strength, Delivering Our Promise is our Performance, Care is our Passion

1.3.Objectives Objectives of this paper are to understand Holcims strategy and to propose new or better strategy to face competition ahead.

CHAPTER 2 EXTERNAL and INTERNAL ANALYSIS

2.1. External Analysis 2.1.1. General Environment Analysis 2.1.1.1. Political /Legal 2.1.1.2. Economic 2.1.1.3. Sociocultural 2.1.1.4. Technological 2.1.2. Industry Environment Analysis 2.1.2.1. Threat of New Entrants 2.1.2.2. Bargaining Power of Suppliers 2.1.2.3. Bargaining Power of Buyer 2.1.2.4. Threat of Substitute Products 2.1.2.5. Intensity of Rivalry among Competitors 2.1.3. Competitor Analysis 2.1.3.1. Future Objectives 2.1.3.2. Current Strategy 2.1.3.3. Assumptions 2.1.3.4. Capabilities 2.2. Internal Analysis Value Chain Analysis 2.3. SWOT Analysis 2.3.1. Strengthnesses 2.3.2. Weaknesses 2.3.3. Opportunities 2.3.4. Threats

CHAPTER 3 STRATEGY IMPLEMENTATION 3.1. Business Level Strategy 3.2. Corporate Level Strategy 3.3. Functional Level Strategy 3.4. International Strategy 3.5. Good Corporate Governance 3.6. Organizational Structure

CHAPTER 4 BUSINESS MODEL 4.1. Existing Business Model 4.2. Proposed Business Model

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