CHAPTERIII METHODOLOGY 3.1ResearchDesign AccordingtotheUniversityofSouthernCaliforniaLibraries(2024),researchdesignisthe comprehensivestrategyandanalyticalframeworkselectedbytheresearchertocohesively andlogicallyintegratethevariouscomponentsofthestudy.Thisapproachensuresathorough investigationoftheresearchproblem.Itservesasablueprintforcollecting,measuring,and interpretinginformationanddata.Therefore,thissectionwilloutlineeachsteprequiredto assessthefinancialfeasibilityoftheinvestmentprojectforthenewbranchthatPT.Crown TeknologiIndonesiaplanstoestablish.Figure3.1providesanoverviewofthesestages: viii Figure3.1ResearchDesign(Source:author) 3.2DataCollection AccordingtoScribbr.com,datacollectionisanorganizedmethodofobtainingobservations ormeasurements,enablingresearcherstogatherpertinentinformationfortheirresearch problem(Bhandari,2020).Itisacrucialstepinresearchthatensurestheinformation obtainedisaccurateandreliable.Therearetwotypesofdata,primaryandsecondarydata. Theprimarydataisfirst-handknowledgeordatathatiscollectedbytheresearcherfromthe mainsource.Also,thesecondarydataisresearchdatathatwaspreviouslycollectedbyothers andisusedbytheresearcherforanalysis.Inthisresearchwillbeconductedwithbothtype data,primaryandsecondarydata.Theprimarydatawillbecollectedbydoinganinterview 15 withtheownerofthecompanytogatherinformationaboutthecurrentconditionofthis projectplanning.While,thesecondarydatacollectedthroughanonlinedatabasetoknowthe marketconditionincludingrisk,demandandsoon. 3.3DataAnalysis Inthispart,theresearcherwillconductastepbystepdataanalysisaftermanagingtocollect allthenecessaryinformation.Thefirststepofthisresearchiscreatingtheassumptionby consideringthecompany’sexternalandinternalfactors.Thenfollowedbyconstructingthe financialstatementandconductingthefeasibilityanalysisusingcapitalbudgetingtechniques. Thelaststepisassessingtheriskanalysisusingsensitivityanalysis. 1.MarketAnalysis ThemarketanalysisforPT.CrownTeknologiIndonesia's(CTI)expansionwill involveacomprehensiveexaminationofthemarketlandscapeusingthe4P’s MarketingMixAnalysisandtheTAM-SAM-SOMframework.Theseanalyseswill provideinsightsintothepotentialmarketsize,targetsegments,andstrategic positioningnecessaryforsuccessfulmarketentryandexpansion. 2.BusinessModelCanvasAnalysis TheBusinessModelCanvas(BMC)providesacomprehensiveframeworktooutline andanalyzethekeycomponentsofCTI'sbusinessmodel.Thisanalysiswillhelp identifythevalueproposition,customersegments,keyresources,andothercritical elementsessentialforthecompany'ssuccess,particularlyinthecontextofits expansionintotheIndonesianmedicaldevicemarket. 3.ExternalAnalysis TheexternalanalysisforPT.CrownTeknologiIndonesia's(CTI)expansioninvolves examiningthemacro-environmentalandindustry-specificfactorsthatcouldimpact thecompany.ThisanalysiswillutilizethePESTLEframeworkandPorter’sFive Forcesframeworktoprovideacomprehensiveunderstandingofexternalinfluences onCTI’sbusinessenvironment. viii 4.InternalAnalysis TheinternalanalysisforPT.CrownTeknologiIndonesia(CTI)willincludeaSWOT analysisandaTOWSanalysis.Theseanalyseswillprovideacomprehensive understandingofCTI’sinternalstrengthsandweaknesses,aswellasexternal opportunitiesandthreats.ThiswillhelpCTIformulatestrategicactionstoleverageits strengths,addressitsweaknesses,capitalizeonopportunities,andmitigatethreats. 5.CreateAssumption ToconductathoroughfinancialanalysisforPT.CrownTeknologiIndonesia’s(CTI) expansion,severalkeyassumptionswillbemade.Theseassumptionswillserveasthe basisforfinancialprojections,riskassessments,andinvestmentdecisions. 6.ConstructingProFormaFinancialStatement Thecreationofprojectedfinancialstatementsformsacrucialstepintheanalysis process.Usingthecarefullydevelopedassumptionsfromthemarketanalysis,BMC analysis,alsointernalandexternalanalyses,threekeyfinancialdocumentsare prepared:theIncomeStatement,BalanceSheet,andCashFlowStatement.The IncomeStatementprojectsfuturerevenues,expenses,andprofitability.TheBalance Sheetforecaststhecompany'sassets,liabilities,andequitypositionovertime.The CashFlowStatementpredictstheinflowsandoutflowsofcash,includingoperational, investing,andfinancingactivities.Together,theseproformafinancialstatements provideacomprehensiveforecastofthecompany'sfinancialperformance,offering valuableinsightsintoitsprojectedfinancialhealth,liquidity,andoverallviabilityin thecomingperiods. 7.FeasibilityAnalysisusingCapitalBudgeting Thefeasibilityanalysisemployscapitalbudgetingtechniquestoassessthefinancial viabilityoftheprojectorinvestment.Thiscrucialstepinvolvesapplyingseveralkey methods:NetPresentValue(NPV)calculatesthedifferencebetweenthepresentvalue ofcashinflowsandoutflowsovertime;InternalRateofReturn(IRR)determinesthe discountrateatwhichtheNPVbecomeszero;PaybackPeriodmeasureshowlongit takestorecovertheinitialinvestment;andProfitabilityIndexcomparesthepresent valueoffuturecashflowstotheinitialinvestment. 17 8.FinancialRiskAnalysis Thefinalstageoftheanalysisprocessfocusesonassessingriskthroughtwoprimary methodswhichissensitivityanalysis.Sensitivityanalysisexamineshowchangesin specificvariables,suchassalesvolume,price,orcosts,impacttheoverallfinancial outcomes.Thishelpsidentifywhichfactorshavethemostsignificantinfluenceonthe project'ssuccess.Thisriskanalysistechniquesoffervaluableinsightsintothe project'sresiliencetovariouschangesanduncertainties,enablingdecision-makersto betterunderstandthepotentialrisksandvariabilityinherentintheirfinancial projections.Thisinformationiscrucialfordevelopingrobuststrategiesand contingencyplans. viii.