RISK ASSESSMENT OF RATTAN MANUFACTURER AS BUSINESS IMPROVEMENT (CASE STUDY: CV. TROPICA RATTAN)
Keywords:
Risk Management, Rattan Industry, MSME, Business Model Canvas, PESTLE, Analytical Hierarchy Process.
Abstract
Indonesia's rattan industry, a major contributor to the Indonesian economy, faces significant challenges, such as fluctuating raw material supply, rising production costs, and competition from synthetic furniture products. CV Tropica Rattan, a mid-sized company in Cirebon, faces the challenges of declining export performance and limited innovation. This study applies a customized risk management framework to address operational and financial risks that may affect CV Tropica Rattan. Internal and external analysis was conducted using Business Model Canvas and PESTLE to identify possible risk factors. The Analytical Hierarchy Process was then used to prioritize the risks to implement mitigation strategies efficiently. Semi-structured interviews and focus group discussions provided qualitative insights, while secondary data was used to support contextual analysis. The results show that structured risk management can improve the company's resilience and competitiveness while providing a model that can be used for similar MSMEs in the rattan industry. This research contributes to understanding how tailored risk strategies can promote sustainable growth and operational efficiency in traditional manufacturing.
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[3] Alrawad, M., Lutfi, A., Almaiah, M. A., Alsyouf, A., Al-Khasawneh, A. L., Arafa, H. M., Ahmed, N. A., AboAlkhair, A. M., & Tork, M. (2023). Managers’ Perception and Attitude toward Financial Risks Associated with SMEs: Analytic Hierarchy Process Approach. Journal of Risk and Financial Management, 16(2). https://doi.org/10.3390/jrfm16020086
[4] Benzaghta, M. A., Elwalda, A., Mousa, M., Erkan, I., & Rahman, M. (2021). SWOT analysis applications: An integrative literature review. Journal of Global Business Insights, 6(1), 55–73. https://doi.org/10.5038/2640-6489.6.1.1148
[5] Choo, B. S.-Y., & Goh, J. C.-L. (2015). Pragmatic adaptation of the ISO 31000:2009 enterprise risk management framework in a high-tech organization using Six Sigma. International Journal of Accounting & Information Management, 23(4), 364–382. https://doi.org/10.1108/IJAIM-12-2014-0079
[6] Debrulle, J., Steffens, P., De Bock, K. W., De Winne, S., & Maes, J. (2023). Configurations of business founder resources, strategy, and environment determining new venture performance. Journal of Small Business Management, 61(2), 1023–1061. https://doi.org/10.1080/00472778.2020.1831807
[7] Falkner, E. M., & Hiebl, M. R. W. (2015). Risk management in SMEs: a systematic review of available evidence. The Journal of Risk Finance, 16(2), 122–144. https://doi.org/10.1108/JRF-06-2014-0079
[8] Helms, M. M., & Nixon, J. (2010). Exploring SWOT analysis – where are we now? Journal of Strategy and Management, 3(3), 215–251. https://doi.org/10.1108/17554251011064837
[9] Hindarsah, I., Purwanto, B. H., Priadana, S., & Fahrudin, A. (2020). The Owner Factor: An Innovation Element of Business Model Canvas by SMEs Rattan Industry in Cirebon Indonesia. International Journal of Advanced Science and Technology, 29(6), 3963–3972.
[10] Ishizaka, A., Pearman, C., & Nemery, P. (2012). AHPSort: an AHP-based method for sorting problems. International Journal of Production Research, 50, 4767–4784. Retrieved from https://api.semanticscholar.org/CorpusID:54499344
[11] Islam, M. M., Akter, L., Pervez, A. K. M. K., Nabi, M. N., Uddin, M. M., & Arifin, Z. (2020). Application of combined swot and ahp for strategy development: Evidence from pottery industry of bangladesh. Asian Journal of Agriculture and Rural Development, 10(1), 81–94. https://doi.org/10.18488/journal.1005/2020.10.1/1005.1.81.94
[12] Krüger, N. A., & Meyer, N. (2021a). The Development of a Small and Medium-Sized Business Risk Management Intervention Tool. Journal of Risk and Financial Management, 14(7). https://doi.org/10.3390/jrfm14070310
[13] Krüger, N. A., & Meyer, N. (2021b). The Development of a Small and Medium-Sized Business Risk Management Intervention Tool. Journal of Risk and Financial Management, 14(7). https://doi.org/10.3390/jrfm14070310
[14] Leitch, M. (2010, June). ISO 31000:2009 - The new international standard on risk management: Perspective. Risk Analysis. https://doi.org/10.1111/j.1539-6924.2010.01397.x
[15] Markopoulos, E., Neumer, V., & Vanharanta, H. (2023). An enhanced version of the Business Model Canvas for risk management and business continuity. In Creativity, Innovation and Entrepreneurship (Vol. 74). AHFE International. https://doi.org/10.54941/ahfe1003311
[16] Mthiyane, Z. Z. F., van der Poll, H. M., & Tshehla, M. F. (2022). A Framework for Risk Management in Small Medium Enterprises in Developing Countries. Risks, 10(9). https://doi.org/10.3390/risks10090173
[17] [17]. Myers, R. (2015). What the Indonesian rattan export ban means for domestic and international markets, forests, and the livelihoods of rattan collectors. Forest Policy and Economics, 50, 210–219. https://doi.org/10.1016/j.forpol.2014.07.009
[18] Oláh, J., Virglerova, Z., Popp, J., Kliestikova, J., & Kovács, S. (2019). The assessment of non-financial risk sources of SMES in the V4 countries and Serbia. Sustainability (Switzerland), 11(17). https://doi.org/10.3390/su11174806
[19] Prakash, A., Agarwal, A., & Kumar, A. (2018). Risk Assessment in Automobile Supply Chain. Materials Today: Proceedings (Vol. 5). Retrieved from www.sciencedirect.comwww.materialstoday.com/proceedings2214-7853
[20] Purdy, G. (2010, June). ISO 31000:2009 - Setting a new standard for risk management: Perspective. Risk Analysis. https://doi.org/10.1111/j.1539-6924.2010.01442.x
[21] Puyt, R. W., Lie, F. B., & Wilderom, C. P. M. (2023). The origins of SWOT analysis. Long Range Planning, 56(3). https://doi.org/10.1016/j.lrp.2023.102304
[22] Qastharin, A. R., & Qastharin, A. R. (2015). Business Model Canvas for Social Enterprise. Retrieved from https://www.researchgate.net/publication/323393037
[23] Ratih, A. S., Rahmi, Y., & Debrina, P. A. (2017). Analisa Manajemen Risiko Pada Industri Kecil Rotan Di Kota Malang.
[24] Saad, M. M., Ismail, R. F., Zam, Z. M., & Hasnan, S. (2024). Investigating the impact of effective risk management on the performance of Malaysian publicly listed companies. Edelweiss Applied Science and Technology, 8(1), 13–23. https://doi.org/10.55214/25768484.v8i1.412
[25] Scannell, T., Curkovic, S., & Wagner, B. (2013). Integration of ISO 31000:2009 and Supply Chain Risk Management. American Journal of Industrial and Business Management, 03(04), 367–377. https://doi.org/10.4236/ajibm.2013.34043
[26] Stasytytė, V., & Aleksienė, L. (2015a). Operational risk assessment and management in small and medium-sized enterprises. Business: Theory and Practice, 16(2), 140–148. https://doi.org/10.3846/btp.2015.568
[27] Stasytytė, V., & Aleksienė, L. (2015b). Operational risk assessment and management in small and medium-sized enterprises. Business: Theory and Practice, 16(2), 140–148. https://doi.org/10.3846/btp.2015.568
[28] Sum, R. M. (2015). Risk management decision-making: the analytic hierarchy process approach. J. International Business and Entrepreneurship Development (Vol. 8).
[29] Trivedi, M. K., Rastogi, N., & Trivedi, M. K. (2016). PESTLE TECHNIQUE-A TOOL TO IDENTIFY EXTERNAL RISKS IN CONSTRUCTION PROJECTS. Retrieved from www.irjet.net
[30] Varpio, L., Paradis, E., Uijtdehaage, S., & Young, M. (2020, July 1). The Distinctions Between Theory, Theoretical Framework, and Conceptual Framework. Academic Medicine. Lippincott Williams and Wilkins. https://doi.org/10.1097/ACM.0000000000003075
[31] Wallenius, J., Dyer, J. S., Fishburn, P. C., Steuer, R. E., Zionts, S., & Deb, K. (2008). Multiple criteria decision making, multiattribute utility theory: Recent accomplishments and what lies ahead. Management Science, 54(7), 1336–1349. https://doi.org/10.1287/mnsc.1070.0838
[32] Wu, Y. (2020). The Marketing Strategies of IKEA in China Using Tools of PESTEL, Five Forces Model and SWOT Analysis.
Published
2024-12-16
Section
Articles
Copyright (c) 2024 Reyhan Pratama, Raden Aswin Rahadi
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
