Study Tour to the Morin Jam Factory in Bekashi: Jakarta
FOR GRADE 10B_NEW + 9 Business + 12 B/Sc. + 12 B national
"Write a report on the application of economic theories on your learnings from the study tour to the Indonesia's leading Jam manufacturing Firm"
The Morin
Last date for submission of the Report
March 8th, 2013
Write your report here in 750 Words. [20 Marks]
Please read rubrics and check that have you followed the rubrics for high score.
Referencing at the bottom will give added marks to candidates.
"Marks allocation will be in accordance to the Rubrics"
Topic: Economic Growth
ReplyDeleteLast-last week on 12 February we held a study tour to Morin jam factory, which a private limited company. Morin jam factory located in Cikarang factory complex and it’s quite a big factory. It’s a nice chance that I can go to that factory because I can learn some point in manufacturing business, especially in how to produce a product. This factory employs more than 1000 workers and has more than 20 offices in Indonesia. Just a short history, in the past this factory are just a small factory which located in the city center of Jakarta in Jelambar and the owner of this company are the factory doesn’t employ any one and just work alone in order to make a perfect jam for all people. The first jam that he was invented in 1978 was the kaya paste and pineapple jam, finally after that jam has been succeed to be promoted to the market he then created PT. Astaguna Wisessa and start to create new taste of jam and spread like peanut butter and many more, And from all of his work now Morin factory has become the market leader for jam and spread in Indonesia.
This company involves both democratic and autocratic leadership style because actually in a real business we cannot choose which one to use and which one not. So in a real business we just need to balance it between both democratic and autocratic, like there is a word say like this “we should no too over of something and too low of something” so we should balance on how we manage the leadership system. For me the most useful is the democratic one because we can give the best for our company.
This company has a wide market now, not just Indonesia but they already export it until America. They were doing this thing in order to catch their target market which range at age 4 to 50 years old because they believe that people in this age still like to eat things like brad and jam or peanut butter and jelly which very delicious especially for western people because it’s their daily meals.
Morin factory had so many workers and all of the workers do the same job every day and obviously they easily get bored of it, but in Morin factory they do like a small motivation system so that the employee will not easily to bored, the system is like this so like every week they exchange their position as workers so for example from packing the jam to the testing one, and otherwise. Also they provide a field trip for all the employees so that they can be relax and forget about the job for a while.
Base on what I learn in business studies management approach in this factory is theory Y because they care about they care about the organization they work for and their also given more responsibilities of working, but workers there also need a little supervision because they must make sure that everything are stay in line.
On 5 september 1978, J. Hadi Januar started his first small business of the kaya and pineapple jam. As he time pass his business is experiencing economic growth that in 1989 PT. Astaguna Wisesa was built. With this factory being built, J. Hadi Januar improved his product and add varieties to the flavors of the jam, there are strawberry, mixfruit, peanut butter,orange marmalade, and chocolate peanut. As the jam's flavor had improved there are more demand. with this, J. Hadi Januar need to employ more workers to help with the production of the jams. He helped the country's economy by employing more workers, indirectly he had reduced the unemployment rate of the country. He also bought some equipments and machineries in order to speed up the production of his products. (which means that he had invested some money on machineries / infrastructures). His business mainly works on manual, which means most of the process of the production are done by human. He did not buy lots of machineries and prefer things to be done more manually. This doesn't mean that he is old fashion is just that he is being considerate about the country's employment rate. So he employed quite some labour force, to help the vulnerable. Despite all of the advantage he had from employing more labour force than buying machineries, there are also disadvantages. By doing things manually (by humans) it reduces the speed of production, but on the other hand the errors or the mistakes of the products are more noticeable. Using machineries also increases the accuracy while making the product, also it gives us the exact number of production per day. The company can affect the rate of employment greatly as morin company employed over 1000 employees and own more than 20 offices. If this company went bankrupt over 1000 people will be unemployed. The type that can cause the unemployment of this company includes cyclical, frictional and structural unemployment.
ReplyDeleteAs morin is improving and gets better and better everyday, as a result there will be a fiercer competition between the jam company that is selling the same kind of product but different brand and methods of production such as nuttela and skippy. One of them will either charge their product to a lower price or by investing more money to improve their product and think of other business strategy in order to attract more customers or to meet the needs of the consumers. The competitive pricing strategy that they could use includes destruction pricing (when the company cuts prices often below cost) and price wars pricing (price may be cut drastically to force the new firm out of the market). They might also invest more of their money on advertisement, as creating a powerful brand image and spending a large amount of money on big advertising campaigns can create a barrier to the entry into that product market. The other way morin company can compete is using non-price competition technique when the company compete on all other product features other than price. It can involve new product development, product placements in different area and may also add varieties to the product. On the other hand if there is no competition the consumer will be at disadvantage the company may charge very high to the point of only the high class people can afford. The other low to middle cost people that used to buy the product wont be able to consume the product anymore as they could not afford to buy it.
To conclude this, even though morin company does not sell something that is very necessary for us to buy it is also one of the things that we often buy. If the company went bankrupt it will also affect the economy highly, according the unemployment, competition rate and in other different aspects of the economy.
(Lishia/9B)