49 Chapter IV Results and Discussion Chapter IV consists of three main sections. The first section provides the analysis consisting of analyzing the company's situation both external analysis using PESTEL Analysis and Porter's Five Forces Analysis as well as internal analysis using Resource-Based View, VRIO Framework, and Value Chain Analysis. The second section provides business solutions. The third section gives an implementation plan and justification. IV.1 Analysis IV.1.1 Analyzing the Company’s Situation The strategy implementation process begins with the evaluation of the company’s current situation. A company's position can be broken down into two distinct aspects, the first one is the external environment, most notably the industry competition in which the company operates, and the second one is the internal environment, more specifically the company's resources and organizational skills. Both external and internal analysis will affect the creation of scenario planning. Then, a thorough analysis of a company's internal and external environments is a must for success in developing a strategy that is ideally suited to the circumstances of the organization. It is the initial evaluation of a successful strategy. In order to choose a long-term direction and create a strategic vision, strategic thinking starts with an assessment of the company's external and internal environments, as shown in Figure IV.1 (Thompson et.al., 2022). It then progresses to a review of the most viable alternative business models or strategies before concluding with the selection of a particular approach. 50 Figure IV.1 Analysis Company’s Situation Source: (Thompson et al., 2022) The immediate industry and competitive environment as well as a more comprehensive macro-environment are all parts of a company's external environment as shown in Figure IV.2. Political factors, economic conditions in the company’s overall environment (local, national, regional, and global), sociocultural forces, technological factors, environmental factors, and legal or regulatory conditions are the six main components of this macro- environment. Although some of these factors are probably more likely to have a more significant impact than others, each of these factors has the ability to impact the company's more immediate industry and competitive environment. PESTEL analysis is a term used frequently to describe an analysis of the factors of certain components. The author uses PESTEL together with Porter's Five Forces for external analysis. 51 Figure IV.2 Components of a Company’s Macro-Environment Source: (Thompson et al., 2022) IV.1.1.1 External Analysis – PESTEL Analysis The author uses PESTEL analysis to identify the forces in the macro- environment that are affecting PTKS business now and are likely to continue to do so in the future by examining political factors, economic conditions, sociocultural forces, technological factors, environmental forces, and legal or regulatory factors as well. IV.1.1.1.1 Political Factors Political factors result from the processes and actions of government entities that can influence the decisions and behavior of firms (Rothaermel, 2021). The steel industry as the mother of industry is one of the upstream industries which since its inception has had a close relationship with developments in political issues, and mutually support each other. The development of the steel industry itself is inseparable from the political background and national 52 security strategy, especially in order to meet the needs of vital goods that use steel as raw material, ranging from light industry to heavy industry and the military equipment industry as well.