Vision

 

Indofood has been standing from 1990 until the present time. We are one the most known food companies in Indonesia. Indomie is one of the most successful products that we produce. It is not only well known in Indonesia but also in many other countries. Other than Indomie we also have products such as Popmie that is more convenient to bring. Our company does not only produce noodles but also materials for cooking such as pasta, flours and oil. Our company also produces milks, food for pregnant mother and seasonings. From the start of the company, we have created our vision and mission as our guide to run the company and to reach success.

 

 

Our Vision & Mission

 

 

VISION

 

A Total Food Solutions Company

 

 

MISSION

 

To provide sustainable solutions for food needs

 

To continuously improve our people, processes and technologies

 

To contribute to the welfare of the society 

 

To continuously improve stakeholders’ values

 

Values

 

“With discipline as the basis of our way of life; we conduct our business with integrity; we treat our stakeholders with respect; and together we unite to strive for excellence and continuous innovation.”

 

The vision and mission, along with the values serve our company as the working guidelines for the entire employees, including high-level employees and the board of directors. They also help us to create company’s culture in doing our job and getting results.

 

Our company is well known due to our market segment that reaches almost all levels in the society. The price of our products is quite affordable, which enables people from various economics levels to purchase them. Additionally, we also provide different array of food for many different age groups. This way, we can contribute to society by helping people to fulfill their basic necessities. We also have a wide range of products that provides customers with more choices to choose. In addition to that, we also create our own unique seasonings in many diverse variants that give a distinctive taste to attract customers.

 

However despite all of the strengths, Indofood has some weaknesses that create some hesitation for customers to buy our products. One of the weaknesses is the use of MSG (Monosodium Glutamate). MSG is used in order to create strong tastes. Another weakness is the use of preservatives in many of our products. Preservatives are necessary to maintain the freshness and prolong the shelf life of our products. However, along with the benefits, both ingredients also bring some consequences. Some customers are concerned with the impacts of MSG and preservatives to their health, and therefore, many of them reduce or even stop the use of products with MSG and preservatives.

 

Besides strengths and weaknesses, we also see some opportunities to improve our company. One of them is to expand the market of our products to the whole world. Currently Indofood is working on this opportunity and progress has been made. One of our best selling products, which is known worldwide, is Indomie. Indomie has been exported to many countries, such as Malaysia, East Timor, Australia, Saudi Arabia, Egypt, Netherland, Kenya, Hong-Kong, Japan, China, and even the United States of America.

 

Just like any other businesses, threats also exist in our market. On of the threats is the innovation of the competitors with almost the same products. However the bigger threat is the healthy life-style issue that creates some customer loss. This issue is in line with our weaknesses, which is the use of MSG and preservatives. Therefore, this is something that we need to go further and find some alternatives or solutions.

 

 

STRENGTH

 

• Cover almost all market segment

• Wide range of distribution

• Strong seasoning

• Strong brand image

• Catchy and memorable jingles and slogan

• Affordable price

• Convenient—easy to get, easy to prepare

• A lot of distinct flavors

 

WEAKNESSES

 

• Contain MSG

• Contain preservatives

 

 

OPPORTUNITIES

 

• Expanding the market to the whole world

• Making healthy noodles

 

THREAT

 

• Innovation from other competitors.

• Healthy life-style issue

 

Our company, PT. Indofood Sukses Makmur Tbk. was founded in Indonesia as PT. Panganjaya Intikusuma in 1990.  Indofood originally only produced instant noodle, but it has been transformed into a total food solutions company that produces flour, pasta, snack foods, dairy products, and many others. PT. Indofood Sukses Makmur Tbk. operates four complementary strategic business groups, specifically, Agribusiness group, Distribution, Bogasari, and Consumer Branded Products. We tend to use centralisation of authority and product departmentalisation in our company.  We organise works and employees into eight separate divisions, namely noodles, food seasonings, dairy, snack foods, nutrition and special foods, edible oils and fats, flour, and pasta. (First Pasific Company, 2005).

 

The biggest division under Indofood is the noodle division. Under noodle division, Indofood produces seven different instant noodle lines such as “Indomie”, “Sarimi”, “Supermi”, and “PopMie”. Under food seasoning division, we have eight different types of food seasonings, for example “Maggi”, “Sambal Indofood”. “Bumbu Racik”, and “Kecap Indofood”. “Indomilk”, “Kremer”, “Indoeskrim” and “Orchid Butter” are some products from Indofood dairy product division. Indofood nutrition and special food section is in charge of  “Promina”, “Sun” and ‘Govit” production. Under the snack food division, we sell five different types of snacks like “Cheetos”, “Lay’s”, and “Qtela”.  “Bimoli”, “Happy Soya Oil”, and “Palmia” are produced under edible oils and fats division. “Cakra Kembar”, “Segitiga Biru”, and “Kunci Biru”, are produced under the flour division. Lastly, under the pasta section, Indofood produces “LaFonte” (Wikipedia, n.d.).

 

PT. Indofood Sukses Makmur Tbk. which has dominated many sectors of the country's economy for decades is an example of a mechanistic organisation.  All of  our  employees have their own job specialization.  The hierarchy of authority is well-defined. This can be seen from our board of directors. We have one CEO and eight directors. Each director has to organise his/her own division and he/she may also work in Indofood partnership company, such as Nestle and IndoLakto. Indofood also uses the centralised authority by keeping the important decision-making made by upper management. Beside that, Indofood also has our own standards. In addition to that, we mostly use vertical communication. The rules and procedures come down from the upper management and hand down to the front-line supervisors and eventually reach the workers. Indofood’s vertical communication leads to high efficiency because there is a clear line of authority and it is easier to control all employees in the company.

 

The two dimensions of leadership behaviour, Consideration and Initiating Structure, are implemented in PT Indofood. This means that leaders in PT Indofood set goals and deadlines, give directions, and assign tasks for the employees (initiating structure). However, when necessary, the leaders may switch the leadership behavior to consideration structure, which are being friendly, approachable, and supportive with their staff.

           

For leadership styles, leaders in Indofood use several different ones. The leaders adjust their styles according to the situation they are in. “In a daily basis, we usually apply the directive leadership style or sometimes known as autocratic style” (Lamidin, 2014). With this style, the leaders let their staff know exactly what is expected of them. Subordinates are given specific guidelines and orders, performance standards are set, and employees are expected to follow rules and regulations of the company. In some cases where employees need some motivation or when the company faces new employees, supportive leadership style is implemented. This leadership style means the leaders create a friendly and approachable atmosphere. The leaders are attentive to the welfare of their staff. They try to find ways to keep their staff satisfied and motivated.

           

In other situations, when our leaders are working with skilled workers, achievement oriented leadership style is implemented. In this style, the leaders set challenging goals and show confidence to their staff to meet their high expectations.

 

With this in mind, we are very selective in choosing our employees. The job applicants in Indofood have to pass a written and practical tests, psychological test, health test, and an interview with our human resource department. We also hold job trainings regularly for our employees to improve their skills, abilities, capabilities, knowledge, and productivity. With a strict hiring and job training, we strive to have employees who are actually suitable for and passionate with their job because we believe this will eventually lead to job efficiency, effectiveness, and satisfaction. Furthermore, we also take good care of the welfare of our employees. We provide our employees job security, salary and bonuses, health care insurance and many more. Moreover, Indofood also offer several assistant programs for our employees, for example, a scholarship program for our employees’ children (Rayyan, 2012).

 

To become a total food solution company, we also build partnership with our competitors by signing joint-venture agreements with several multi-national and international companies. In 2005, Indofood established a 50-50 joint-venture company with Nestle named PT Nestlé Indofood Citarasa Indonesia.  Indofood licenses to the new joint venture company its brands of culinary products (“Indofood”, “Piring Lombok” and others) while NESTLE licenses initially its “MAGGI” brand. The products are sourced from affiliates of the shareholders both in Indonesia and overseas. (First Pasific Company, 2005).

 

Again in 2012, Indofood set up a joint-venture agreement with a Japanese beverage group Asahi to produce non-alcoholic beverages in Indonesia and market the products in Southeast Asia (The Jakarta Post, 2012).  Furthermore, in 2013 we also completed an acquisition of PT. Pepsi-Cola Indobeverages (The Jakarta Post, 2013). We believe our joint-venture companies combine the best of the companies involved in the agreement and deliver more benefit for the shareholders and customers.

 

To manage our customer satisfaction, we create a customer care department to communicate with our customers and organize several competitions to let costumers have more opportunities to participate and contribute in our product development.

 

In addition to all of the factors above, we also realize the importance of the quality of our products. Our quality control department ensures the high quality of the products, which includes the processing, tasting, and packaging, from the raw ingredients until the finished products. We only use the best quality ingredients from Indonesia’s natural wealth and we process them using high-quality technology with international standard. These quality standards have been set by our company to ensure costumer satisfaction.

 

For quality control, we use feedback control to correct or prevent performance deficiencies. Feedback control evaluates the company’s progress by comparing the output the company plans on producing to what is actually produced. If the actual performance is not in accordance with performance standard, our company will take a corrective action to fix it. Michael McGrath, James O’Connor, Sinead Cummins (1998, p2) state “However, we also aware that no system is able to entirely replace an experienced operator.” In addition, we develop appropriate decision support mechanisms to help both skilled operators and supervisory employees to effectively carry out their production/processing duties.  If something goes wrong in the production process, the manager will take corrective action by finding a better method for the production and working overtime.

As one of the leading consumer branded products in Indonesia, we have production capacity of about 375,000 tons per year and our company continues to grow due to the high demand for our products.

We are positive with the future of our company as our sales volume increases in all group divisions and we always create innovative products with high quality to keep pace with our customers and their changing nature.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reference list:

 

Asmaniadi, E. K. (2013, April 6). Analisis Produk PT. Indofood CBP Sukses Makmur, Tbk | Ordinary World [Web log post]. Retrieved from http://ervincious.blog.com/2013/04/06/analisis-produk-pt-indofood-cbp-sukses-makmur-tbk/

 

Christiani, M., Nurani, A., &Anggraini, D. 92013,10 17). Indofood Company Profile. Retrieved1 5, 2015, from slideshare: http://www.slideshare.net/desvywidia/indofood-company-profile

 

Farida, E., Anisa, N.,& Rifai, R. (2011, 10 7). Analisis strategi Pt. Indofood Tbk. Retrieved 1 8, 2015, from slideshare: http://www.slideshare.net/RaneyRRifai/pt-indofood-sukses-makmur-tbk

 

First Pasific Company. (2005, 2 24). Indofood Nestle Joint Venture. Dipetik 1 8, 2015, dari First Pasific Company Limited : http://www.firstpasific.com/media/normal/15876_ep050224.pdf

 

First Pasific Company. (2005, 2 24). Indofood Nestle Joint Venture. Retrieved 1 8, 2015, from First Pasific Company Limited : http://www.firstpasific.com/media/normal/15876_ep050224.pdf

 

Lamidin, P. (2014). Leading-Indofood. Jl. Jend. Sudirman Kav. 76-78.

 

McGrath, M. J., O'Connor, J. F., & Cummins, S. (1998). Implementing a Process Control Strategy for the Food Processing Industry. Journal of Food Engineering 35, 314.

 

 

PT Indofood Sukses Makmur Tbk. (n.d.). Vision, Mission, & Values. Retrieved 1 6, 2015, from Indofood : www.indofood.com/en-us/ourcompany/overview/vision,missionamp;values.aspx

 

Rayyan, P. (2012, 4 25). HRD dan standard pegawai perusahaan Indofood. Dipetik 1 8, 2015, dari Palessabil Rayyan: http://palessabilrayyan.blogspot.com/2012/04/hrd-dan-standard-pegawai-perusahaan-pt.html

 

Rayyan, P. (2012, 4 25). HRD dan standard pegawai perusahaan Indofood. Retrieved 1 8, 2015, from Palessabil Rayyan: http://palessabilrayyan.blogspot.com/2012/04/hrd-dan-standard-pegawai-perusahaan-pt.html

 

The Jakarta Post. (2013, 9 13). Indofood Completes Acquisition Pepsi Cola. Dipetik 1 8, 2015, dari The Jakarta Post: http://www.thejakartapost.com/news/2013/09/13/indofood-completes-acquisition-pepsi-cola.html

 

The Jakarta Post. (2012, 7 10). The Jakarta Post. Dipetik 1 8, 2015, dari Indofood CBP set joint ventures with Asahi: http://www.thejakartapost.com/news/2012/07/10/indofood-cbp-set-joint-ventures-with-asahi.html

 

Wikipedia. (n.d.). Indofood Sukses Makmur. Dipetik 1 8, 2015, dari Wikipedia: id.wikipedia.org/wiki/Indofood_Sukses_Makmur