Perpustakaan Digital ITB

Steel industry as strategic industry in the development of nation has many external factors that interrelated and influencing the direction of the industry which cannot be predicted only with linear forecasting method. Some of these, especially in external factors like political, economical, social, environmental, and technological has its level of uncertainties. The transformation of steel industry changes the game of play within the business competition, which more competitive than before. The challenge of steel producers is how to make long strategic planning in the midst of those uncertainties that have significant impact to the industry while they are required to accommodate every change in business environment that might happen and be responsive and adaptable to deliver the suitable value for its customers. The study objective is to develop scenario planning for PT Krakatau Steel as the method of strategic planning to face the future alternative situation following the changes on the driving forces in steel industry as their business environment. The scenario development is created to give an overview of the future market situation in Indonesian steel industry and all driving forces that have an impact to this industrial sector then used it as a tool to make any strategic decision for the organization to give consideration for PT Krakatau Steel in makes any option for those implications in each scenarios situation. As a leader in domestic steel market, PT Krakatau Steel, a State Own Enterprise steel company, now began to expand their business by making several strategic projects which marked with their decision to be a public company in 2010. With their momentum to prepare the future business environment, a study was conducted in PT Krakatau Steel in 2012 to analyzed their business issues and seek the major driving forces that have the most impact with high level of uncertainty to the firm. Three critical driving forces has been found as the axes of the uncertainty matrix in scenario planning, which are global steel price, government support, and realization of national economic development plans. Then those three forces becoming the axes of uncertainty in four scenarios: Steel in Power, Steel Carry On, Steel Looking for Land, and Steel Battle for Life. By having the scenarios, the firm can see both implications and options in future situation and aligned it with corporate strategic road map with monitoring process to see the shift of each scenario in their early warning signs. The purpose of scenario planning is to prepare the firm for the entire possible scenarios situation that might come. Even each scenario has a specific option to response the implications that might happened, based on this research, PT Krakatau Steel should have a robust strategies that cover and applicable in all possible scenarios, which are: develop a high skilled workforce, revitalize all the aging production facilities, create a new supply chain management strategy, makes a strategic alliance with another industries, and create a government relation department.