Strategy Model for Dealing with Business Crisis During the Pandemic for the Local Culture-Based Micro, Small and Medium Enterprises (A Case Study on Tafeba Tabua MSME Group)

DOI

10.2991/978-2-494069-83-1_86How to use a DOI?

Keywords

MSME Strategy; Business Crisis; OODA Loop; Altman Z Score

Abstract

The purpose of this study is to implement the method of survival formula strategy for MSMEs in facing business crisis as a result of the integration of two methods, namely the OODA Loop Approach which is a strategy formulation cycle in dealing with crisis by using a predictive analysis of business continuity and the Altman Z Score calculation. The rationale for this study is by seeing how bad the impact of the Covid-19 Pandemic has faced on the sustainability of MSME business in general and local culture-based MSMEs specifically. The type of this study is field observation research combine with case study research with the aim to find methods as solutions to the problems encountered. The nature of this study is descriptive analysis, which provides an initial description of the object of research in formulating strategy and predicting how capable the business can survive. The research data comes from secondary data in the form of financial reports which is going be analyzed using the quantitative technique of Altman Z Score calculation and will integrated with primary data from interviews with the MSME actors to explore the strategy formulation process using the OODA Loop approach. From the z score calculation, it can be seen that there are 4 MSMEs that are in the green area, meaning that these MSMEs are in good health. However, there are 2 MSMEs that are included in the grey area, they are in an alarming condition because they have the potential to go bankrupt in the near future. 2 MSMEs that need serious attention, namely Rumah Mentari and Sanggar Rebung Cendani. After calculating, to formulate the strategy then the researcher uses OODA Loops which resulted that the steps that need to be taken by MSME actors are to evaluate and exploit ideas to create new products, new services or new marketing strategies to survive. The real action is to change the form of sales from offline to online by utilizing social media, websites and other applications and platforms to market products.

Copyright

© 2022 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Clara Margilina Reinamah
AU  - Moni Yuniati Siahaan
PY  - 2022
DA  - 2022/12/30
TI  - Strategy Model for Dealing with Business Crisis During the Pandemic for the Local Culture-Based Micro, Small and Medium Enterprises (A Case Study on Tafeba Tabua MSME Group)
BT  - Proceedings of the International Conference on Applied Science and Technology on Social Science 2022 (iCAST-SS 2022)
PB  - Atlantis Press
SP  - 482
EP  - 486
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-494069-83-1_86
DO  - 10.2991/978-2-494069-83-1_86
ID  - Reinamah2022
ER  -