CHAPTER III RESEARCH METHODOLOGY 3.1Research Design Research methodology explains about methodology used by the researcher in order to conduct research processing of the final result. The research is undertaken using the qualitative approach. It consists of several processes which is started from the problem identification and ends with the conclusion and recommendation. Below is the diagram of research design which used in this research. Figure 3.1 Research Design Strategic Formulation Formulation Formulation Conclusion and Recommendation Corporate Culture Value Chain External Environment PESTEL Analysis Porter’s Five Forces Analysis In-depth Interview Internal Environment Problem Identification Research Objective Research Question Primary Data Secondary Data Internet Source Data Collection Environmental Scanning Corporate Resource 3.1.1Problem Identification Problem identification was about to identify the problem. In this step, researcher will identify the problem that should be solved. Problem identified by seeing current condition of the company and current condition about the industry. Problem identification helps researcher to find the information should be collected to understand the problem. From this step, researcher will find research question and research objective to limit the research 3.1.2Research Objective The second step of this research is identifying the research objecttives. In this step including researcg question and find the objective of the research. After known the problems, research shoul know about the purpose of this research in order to limit the research and minimize ineffective work for this research. 3.1.3Research Question The research question was made after formulation of research objective. The purpose of research question was to develop specific questions that this needed in this research to answer related to the problem that has been identified. It determined the focus of this research. The research questions are written in Chapter I. 3.1.4Environmental Scanning External Analysis External factors consist of natural environment analysis, societal environment such as PESTEL, and Porter’s Five Forces analysis. To gather the data, researcher find the external factors through the internet for the natural environment and PESTEL. Also, in-depth interview was collected for clarifying the company's external factors. Internal Analysis Internal factors consist of corporate culture, corporate resources, and value chain analysis. Which explain about the human resources, marketing and sales, firm infrastructure and the whole production process. The researcher used in-depth interview to employees, owner, and manager to gather the internal data. After list all factors, assess the importance of each of the factors that might be considered strengths and weaknesses and analyze it. 3.1.5Strategic Formulation The tool of this step of analysis was using TOWS matrix. TOWS matrix illustrates how the external opportunities and threat facing a particular corporation can be matched with that company’s internal strengths and weaknesses to result in four sets of possible strategic alternatives. This is a good way to use brainstorming to create alternative strategies that might not otherwise be considered. After use the TOWS matrix, business strategy was formulated. 3.1.6Conclusion and Recommendation The last step in this research is conclusion and recommendation. This stage explains about the conclusion and recommendation based on analysis from the data result. The result will be used for developing the new business strategy for Tahu Saribumi restaurant for sustain the performance of their business. The recommendation will show Tahu Saribumi restaurant regarding the factor which needs to be improved and developed with good strategy and useful recommendation in order could increase their revenue. 3.2Data Collection 3.2.1Primary Data The primary data was the data that researcher collected directly using qualitative method. Qualitative method was the procedure descriptive data in the form of words written or spoken of the people. To collect the primary data about Tahu Saribumi Restaurant, researcher chooses in-depth interview method to explore issues or topics in detail. The researcher used in-depth interview to conduct the internal data of Tahu Saribumi Sumedang which consist of company intangible resource, and value chain. The reason used in-depth interview because the researcher want to generate more detailed and thorough data, as well as deeper insights about the problem and gain a lot information regarding Tahu Saribumi to the owner, manager, and employees’ restaurant itself. Table 3.1 Interviewee Background and Issue being Covered Interviewe e Position Date of Interview Issue Covered Reference For Iman Rohman Owner Tahu Saribumi May 22th 2017 Tahu Saribumi External & Internal environment: Strategy in Tahu Saribumi Marketing & sales Human Resource Management Resource of the company Condition of financial Organization Structure The culture of Tahu Saribumi Competitor condition General environment analysis Industry Analysis Value Chain Analysis Resource Analysis Rivalry among existing competitors The external analysis Financial analysis Industry analysis Febrian Manager Tahu Saribumi May 22th 2017 Tahu Saribumi External & Internal environment: The current condition of the restaurant The logistic and operational in tahu saribumi The service system Marketing and sales Technology that has been used The culture among employees The environment condition The organization structure General environment analysis Industry Analysis Value Chain Analysis Corporate Resource Analysis Corporate culture The external environment Financial analysis Yayat Supriatna Tofu Fryer May 24 th 2017 Tahu Saribumi Internal environment: The condition in production process The supplier of the restaurant The operation system The logistic that has been used The frying process The culture among the Value Chain Internal analysis Human resource managemen t Corporate resource Corporate culture employees Ade Producti on Employe e May 24 th 2017 Tahu Saribumi Internal environment: The condition in production process The supplier of the restaurant The operation system The logistic that has been used The frying process The culture among the employees The production process in the restaurant The warehouse system The human resource management Industry Analysis Value Chain Analysis Company Resource Analysis Corporate culture Inventory analysis Deni Cashier May 24 th 2017 Tahu Saribumi External & Internal environment: The current condition of the restaurant The service system Marketing and sales The culture among employees The environment condition The organization structure External anaylis Value chain analysis Industry analysis Service and sales Financial analysis Erwansya h Waiter May 24 th 2017 Tahu Saribumi Internal environment: The culture among the employees The warehouse system The human resource management The organization structure the service system External anaylis Value chain analysis Industry analysis Service and sales Financial analysis Engkos Head of Trade and Industry January, 9 th 2017 The condition of tofu industry in Sumedang The condition of General condition of tofu industry Current Division tofu industry in West Java The condition of UKM in Sumedang The regulation of UKM condition tofu industry in Sumedang Current condition tofu in West Java 3.2.2Secondary Data Researcher used internet to find additional information about the Sumedang’s tofu itself to complete information needed about this research. The information that found is needed is in environmental scanning which is external environmental and business industry. Furthermore, researcher also seeks data that relate with the external and environment of the business industry. The secondary data also can be found in data which related with the business strategy. Those data are needed to find the necessary factors to identify the best strategy for Tahu Saribumi restaurant. Table 3.2 List of Secondary Data (Publication) Type Author Title Used as reference for JournalPatricia A. Adler and Peter Adler Membership Roles in Field Research Research validation Book Gamble, J., Jr., A. T. & Peteraf, M., Essentials of Strategic Management: The Quest for Competitive Advantage, 4th Edition Corporate Resource JournalRichard Hall Strategic Management Journal Corporate Resource Book Ireland, R.D., Hoskisson, R.E., & Hitt, M.A The management of Strategy Concepts and Cases (9 th edition, International Edition) Environmental Scanning JournalMuhammand Khan & Wasim Jan Strategic Planning and Reality of External Environment of Organizations in Contemporary Business Environments Background Book Porter M.E Competitive Strategic Management Porter’s Analysis Report Matt Wiggers Indonesia Digital and Content Marketing Report Business Strategy Formulation Report Nielsen The New Trend Among Indonesia’s Netizens Business Strategy Formulation Book Fred R. David Strategic Management: Concept and Cases (13 Edition) Theoretical Framework JournalTeuku Reddy Peran UKM dalam Perekonomian Indonesia Background Book Wheelen, Thomas L.; Hunger, J. David Strategic Management and Business Policy: Toward Global Sustainability (13 th Edition) Background, theoretical framework, environmental scanning, SWOT analysis, EFAS, IFAS, SFAS, TOWS matrix, Business strategy formulation. JournalHall W.K Survival strategies in a hostile environment. Business strategy formulation Journal Hofer, C.W Toward a contingency theory of business strategy Business strategy formulation Book Philip Kotler, Veronica Wong, John Saunders, Gary Armstrong Principles of Marketing (4 th European Edition) Environmental Scanning Table 3.3 List of Secondary Data (Website) Type Author Title Retrieved From Used as reference for Websi te - Agricultural Commodities: Indonesia Highly Dependent on Soybean Imports https://www.indonesia- investments.com/news/ todays-headlines/ agricultural-commodities- indonesia-highly-dependent- on-soybean-imports/ item6274. External Environm ent Websi te Davies, Richard Updated: Indonesia – Deadly Flash Floods and Landslide in Garut and Sumedang http://floodlist.com/asia/ indonesia-garut-sumedang- west-java-floods-landslides External Environm ent Websi te Hidayat, Denni Naiknya Kurs Dollar Terhadap Rupiah Penyebab dan Dampaknya https://ekonome.id/ 2016/11/naiknya-kurs-dollar- terhadap-rupiah-penyebab- dan-dampaknya/ External Environm ent Websi te Idris, Muhamm ad Harga Kedelai Impor AS Naik https://finance.detik.com/ berita-ekonomi-bisnis/ 3376663/harga-kedelai- impor-asal-as-naik External Environm ent Websi te Kusuma, Hendra Jokowi Ingin Kementrian/Lem baga Hemat Besar-besaran 2017-2018 https://finance.detik.com/ berita-ekonomi-bisnis/ 3464521/jokowi-ingin- kementerianlembaga-hemat- besar-besaran-2017-2018 External Environm ent Websi te Rundjan, Rahadian Sejarah Tahu http://historia.id/kuliner/ sejarah-tahu-tahu-sejarah Backgrou nd Websi te - The Indonesian Case: The Consumer Economy & Economic Growth https://www.indonesia- investments.com/business/ business-columns/the- indonesian-case-the- consumer-economy- economic-growth/item5603. External Environm ent 3.3Research Validation The validation in this research is when the researcher interviewing the employees of Tahu Saribumi and the interviewees give the same answer.