Summary

Description of the Business

I chose furniture as type of the business and Andi Sari furniture shop as the company. Andi Sari furniture shop is one of traditional furniture shop that 75% of focus selling with made the furniture by their selves and 25% selling the furniture from the other products like Olympic or Ligna. Andi Sari furniture shop is located at Solo street km 11.5 Sleman. Andi Sari furniture shop is preparing all of the material for the furniture; Andi Sari buy the material (wood) and import (oil paint, wood paint, textile, and foam) from the supplier and then they build the furniture suitable with the order from the customer (sometimes several customers have special request the shape of the furniture for their needed) or for the shop’s inventory. Andi Sari furniture shop sell all the need of furniture for house, for example cupboard, desk, dining table, sofa, bed, and forth.

The wood of Andi Sari’s furniture is originally from Jati. Andi Sari furniture shop has very large place to display all of the furniture, because the interest of everybody is different, Andi Sari furniture shop give various kinds of furniture and the customer can choose the furniture that they want. Andi Sari furniture shop has 15 employees consist of designer, carpenters, driver, and salesperson.

The Risk of the Business

There are many risks in the furniture businesses:

1. The Exchanges Rate

2. Now, furniture shops is everywhere

3. Gets confidence from the customer

4. The brave in the pricing and design

The Way of the Company to deal with the Risk

Andi Sari furniture shop has several ways to deal with risk in the furniture business. In the exchanges rate problem, Andi Sari furniture shop decide to selling the furniture based on the cost of production, if the value of US$ stable, the cost of production and the price of furniture also stable, but if the value of US$ increase or decrease, the cost of production and the price of furniture also changes. Because all furniture materials, except woods; are imported from foreign country.

The second risk is furniture shops is everywhere now. Andi Sari furniture shop emulates this condition with has skillful decision making ability in and to specification on market segmentation. Andi Sari furniture shop tries to satisfy the customer from all society class.

Andi Sari furniture shop must have bravery when decide the pricing and the concept for the furniture. Price and design very affected for customer, if Andi Sari furniture shop can fulfill the customer wish, the customer will back again in the future, but if Andi Sari furniture shop can’t fulfill it, Andi Sari will loss the customer.