Improving Business Performance Using Financial Planning Toward Healthy Food and Beverages Businesses: A Case Study of Moringa Culinary

  • Salsabila .
  • Raden Aswin Rahadi

Abstract

Micro, Small, and Medium Enterprises (MSMEs) are one of the fastest-growing industry sectors in the world economy. Finance is one of the critical problems for the growth and development of MSMEs. For Micro and Small Enterprises, financial and competitive obstacles are mostly affected by their growth. As a micro, small, and medium enterprises in Indonesia, Moringa Culinary faced several problems in the company. One of the problems faced by company is poor of financial performance. From six months of sales, moringa culinary has decreasing the net income from 2019 to 2020.  The objective of this study was to determine the best selected action for improving financial performance of Moringa Culinary. To achieve the objective, this research uses financial statement analysis, profitability ratio, porter’s five force, fishbone diagram, financial planning, and capital budgeting. The use of financial statement to analyze the financial condition of the company. The results show that the company decrease net profit margin from 2019 to 2020. To analyze the root cause of decreasing net profit margin, the researcher uses the fish bones diagram. The result shows that there are several factors that influence the decrease in net profit margin from 2019 to 2020. The factors are the company lack of knowledge in finance, lack of financial management, and lack of financial planning. Porter 5 force is used to evaluate the industry of food and beverages industry in Indonesia. The result of porter 5 force shows that the threat of new entry in the healthy beverages industry can be considered as high. Capital budgeting is used to find out more detailed funds in improving financial performance in the company for long term. Based on the results of the study, several recommendations can be applied in Moringa culinary to improve financial performance. For further research should explore alternative solutions from other several aspects in terms of finance (human resources, marketing, and operations). The results obtained in improving financial performance are more general not only from a financial perspective.

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Published
2020-07-15
How to Cite
., Salsabila; RAHADI, Raden Aswin. Improving Business Performance Using Financial Planning Toward Healthy Food and Beverages Businesses: A Case Study of Moringa Culinary. Asian Journal of Research in Business and Management, [S.l.], v. 2, n. 2, p. 96-107, july 2020. Available at: <http://myjms.moe.gov.my/index.php/ajrbm/article/view/10109>. Date accessed: 11 aug. 2020.
Section
Articles