Strategy Model for Dealing with Business Crisis During the Pandemic for the Local Culture-Based Micro, Small and Medium Enterprises (A Case Study on Tafeba Tabua MSME Group)
- 10.2991/978-2-494069-83-1_86How to use a DOI?
- MSME Strategy; Business Crisis; OODA Loop; Altman Z Score
The purpose of this study is to implement the method of survival formula strategy for MSMEs in facing business crisis as a result of the integration of two methods, namely the OODA Loop Approach which is a strategy formulation cycle in dealing with crisis by using a predictive analysis of business continuity and the Altman Z Score calculation. The rationale for this study is by seeing how bad the impact of the Covid-19 Pandemic has faced on the sustainability of MSME business in general and local culture-based MSMEs specifically. The type of this study is field observation research combine with case study research with the aim to find methods as solutions to the problems encountered. The nature of this study is descriptive analysis, which provides an initial description of the object of research in formulating strategy and predicting how capable the business can survive. The research data comes from secondary data in the form of financial reports which is going be analyzed using the quantitative technique of Altman Z Score calculation and will integrated with primary data from interviews with the MSME actors to explore the strategy formulation process using the OODA Loop approach. From the z score calculation, it can be seen that there are 4 MSMEs that are in the green area, meaning that these MSMEs are in good health. However, there are 2 MSMEs that are included in the grey area, they are in an alarming condition because they have the potential to go bankrupt in the near future. 2 MSMEs that need serious attention, namely Rumah Mentari and Sanggar Rebung Cendani. After calculating, to formulate the strategy then the researcher uses OODA Loops which resulted that the steps that need to be taken by MSME actors are to evaluate and exploit ideas to create new products, new services or new marketing strategies to survive. The real action is to change the form of sales from offline to online by utilizing social media, websites and other applications and platforms to market products.
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Cite this article
TY - CONF AU - Clara Margilina Reinamah AU - Moni Yuniati Siahaan PY - 2022 DA - 2022/12/30 TI - Strategy Model for Dealing with Business Crisis During the Pandemic for the Local Culture-Based Micro, Small and Medium Enterprises (A Case Study on Tafeba Tabua MSME Group) BT - Proceedings of the International Conference on Applied Science and Technology on Social Science 2022 (iCAST-SS 2022) PB - Atlantis Press SP - 482 EP - 486 SN - 2352-5398 UR - https://doi.org/10.2991/978-2-494069-83-1_86 DO - 10.2991/978-2-494069-83-1_86 ID - Reinamah2022 ER -