Strategic Transformation
Execution
GarudaFood
GarudaFood is a food and beverage company was formally established in August 31st 1990 pursuant to Ministry of Law Decree (SK Menkeh), subordinated to Tudung Group. In addition to GarudaFood, Tudung Group also subordinates agribusiness companies operating in Crude Palm Oil field and peanuts. GarudaFood Group had originated from PT Tudung Putra Jaya (TPJ), it was established in Pati, Central Java. The company founder is the deceased Darmo Putro, ex-warrior who had chosen to engage in business sector after the independence of Indonesia.
External Challenges:
- Competition intensifies with improving consumer purchasing power and business friendly environment
- High level of competition among traditional players and challenge from new entrants
- Aggressive expansion of multinational corporation
- High level of innovation (marketing, products etc)
Internal Challenges:
- To position GarudaFood for further growth and “take it to the next level” by being one of the best regional and world-class Organizations in its industry
- Areas for attention: Clarity of vision and mission; Business expansion strategy; Optimization of excess capacity and assets; World class quality products and services; Performance management
- To further develop and sustain its strategy and performance management system
- Implementation of Strategic framework to Develop and Execute strategic direction
- Introduced comprehensive Strategic directions to each Company, SBU and individual:
–Corporate priorities for the companies defined
–Identified value thru cost drivers & intangible enablers
–Cascaded into all BU & SU
–Development of Personal Scorecards
–Understanding the readiness of intangible assets and converting them into tangible outcomes - Set-up of OSM (Office of Strategy Management)
- Introduced organization wide communication program
- Linked reward system
- The Strategy Management Platform became the “performance language” across the organization
- Financially Healthy & Profitable (ROA & ROE indicates a high return, averaging above 20%)
- Growth Potential (Revenue growth almost doubled since 2014 & Innovation – block buster products in Biscuit)
- Products – eliminated non performing SKU’s (220 to 150)
- Manufacturing – Closed 1 Factory, combined the plants, 3 automated biscuit lines
- SCM – Integrate the entire chain end to end under one Leadership
- People – Restructured and increased productivity by > 50%
