competing value framework

Competing Values FrameworkCase Study – PT Apexindo Pratama Duta

Presented byAditya Narendra MaharsiAngie Pritta CarolineAhmad Ardiansyah ZeinBambang WijarnakoPranoto Satrio Wicaksono

Competing Values Analysis - APEX

The Content

Company Profile

Theoretical Background

Performances

Competing Values Analysis

Conclusion & Recommended Strategies

Company Profile


Company Profile

Founder Hertriono Kartowisastro

VisionA world-class drilling contractor offering quality without compromise

Mission• Maintaining a high standard of Safety, Health, and

Environment (SHE) to ensure the safety an welfare of employees and to protect the surrounding environment.

• Providing maximum value to all of stakeholders and making a positive impact to the society and the environment.

• Developing human resources with global-standard quality and competency.


Company Profile : Milestone

1984

Established as an Indonesian offshore Drilling contractor

1992

First submersible swampbarge rig, Maera

2005

ISO 9001 :2000 Certification in Quality Management System

2007

Super premium Jack up rig, Soehanah

2008

Upgrade the ISO 9001 :2008 version

2009

The Safety Campaign


Company Profile : Milestone

2000

Expand operation to Middle East

2001

Merged with PT Medco Antareja

2002

IPO : 10 July 2002

2012

PT Apexindo Energi Investama become the new majority shareholder of the Company

2009

Settled IDR Bonds Apexindo Pratama Duta

2011

Certification of ISO


Company Profile : Operation

Onshore

Offshore

FPSO (Floating Production, Storage, and Offloading)


Company Profile


COMPETING VALUE

Kerangka budaya organisasi yang dikembangkan oleh Cameron dan Quinn (1999) berdasarkan model teoritis disebut “Competing Values Framework” atau “Kerangka Nilai Bersaing“.

Parameter atau Variabel yang dianalisa :• Concern for Task vs. Concern for People• Stability and Efficiency vs. Flexibility and Innovation• Internal vs external focus.• Long Term vs Short Term. • etc




CREATE

COMPETECONTROL

COLLABORATE



Kuadran Ukuran Kuadran Pendekatan finansial yang digunakan

Control Quality Gross margin

Efficiency Asset turnover

Compete Profit EVA

Speed Change in EVA growth

Create Growth Sales growth

Innovation Standard deviations of market model errors

Collaborate Knowledge Future growth values

Community Sales/number of employees

CREATING CVF FROM FINANCIAL EMPIRICAL DATA


Innovation

Growth

Speed

ProfitsEfficiency

Quality

Community

Developement

Differentiation

Innovation

Growth

Speed

ProfitsEfficiency

Quality

Community

Developement

Cost Leadership

Type of Organization



Innovation

Growth

Speed

ProfitsEfficiency

Quality

Community

Developement

Fit

Innovation

Growth

Speed

ProfitsEfficiency

Quality

Community

Developement

Stretch




Innovation

Growth

Speed

ProfitsEfficiency

Quality

Community

Developement

Best Cost

Innovation

Growth

Speed

ProfitsEfficiency

Quality

Community

Developement

Best Cost – Blue Ocean




COMPETING VALUE INDUSTRY VS COMPANY (example)


Performances


Performances

No Type of Listing Listed Shares Listed Date

1 IPO (First Issue) @ Rp550,- 200,000,000 10-Jul-02

2 Company Listing 1,545,000,000 10-Jul-02

3 Rights Issue I 25:12 @Rp550 837,600,000 26-Sep-05

4 ESOP Converted (2005 to 2008) 77,250,000

5 Delisting -2,659,850,000 27-Apr-09

6 Relisting @ Rp1,562,- 2.659.850.000 05-Jun-20013

Listing History


Performances

5-Jun

7-Jun

9-Jun

11-Jun

13-Jun

15-Jun

17-Jun

19-Jun

21-Jun

23-Jun

25-Jun

27-Jun

29-Jun

1-Jul

3-Jul

5-Jul

1,500

1,700

1,900

2,100

2,300

2,500

2,700

2,900

3,100

Stock Price Movement (1st Month)Offering Price at relisting (IPO) Rp. 1.562 (5 June 2013)


Performances

Financial Statement2013 2012 ∆

Current Assets 152,051,043 465,143,375 -67%

Non Current Assets 638,859,911 246,580,991 159%

Liabilities And Equity 119,109,331 79,115,039 51%Non Current Liabilities 389,280,099 399,189,027 -2%

Equity 282,521,524 233,420,300 21%

Revenue 259,595,002 208,757,661 24%

Direct Costs 161,331,971 136,394,546 18%

Gross Profit 98,263,031 72,363,115 36%


Performances

Financial Statement2013 2012 ∆

Income Before Tax Expense 68,855,235 35,449,657 94%

Income Tax Expense - Net (19,616,096) (12,357,313)

Net Income for the year 49,239,139 23,092,344 113%Other Comprehensive Income (137,915) (45,462)Total Comprehensive Income 49,101,224 23,046,882

Net income for the year 49,239,139 23,092,344 Total comprehensive income 49,101,224 23,046,882

Basic Earning Per Share 0.0185 0.0087 113%


Performances

Aug-13

Aug-13

Sep-13

Sep-13

Sep-13

Oct-13

Oct-13

Oct-13

Nov-13

Nov-13

Nov-13

Dec-13

Dec-13Jan

-14Jan

-14Jan

-14

Feb-14

Feb-14

Feb-14

Mar-14

Mar-14

Mar-14

Apr-14

Apr-14

May-14

May-14

May-14

Jun-140

1,000

2,000

3,000

4,000

5,000

6,000

3865

4946.09

APEXIHSG

Stock Price Comparison



Financial data PT Apexindo Pratama Duta for creating CVF

Quadrant Measures for quadrant Proxies used

Company Sector

Actual Adjusted Actual Adjusted

Create Growth Sales growth 0.97 0.97 11.4 11.4

Innovation Standard deviation of market model errors 0 0.12 0.95 0.95

Compete Profit EVA (Economic Value Added)/ROA 6.55 6.55 7.23 7.23

Speed Change in EVA grwoth/ROA Avg 0 6.55 12.14 12.14

Control Quality Gross margin 37.85 37.85 26.79 26.79

Efficiency Asset turnover 0.35 0.35 0.81 0.81

Collaborate Knowledge Future growth values/capital spending 35.38 35.38 8.47 8.47

Community Sales/number of employess 6897311232 689.7311232 3334958240 333.495824



Industry vs competing value companyPT Apexindo Pratama Duta

Type of organizationI

Innovation

Growth

II

Speed

Profit

III

Efficiency

Quality

IV

Community

Knowledge

0.001

1

1000

Company

Sector

Innovation

Growth

Speed

ProfitsEfficiency

Quality

Community

Developement

Best Cost


Conclusion

• APEX could be categorized as the company with Compete and Collaborate culture.

• In term of Quality, Community and Knowledge, APEX’s scores are higher than average sector’s scores.

• In term of Innovation, Growth, speed and Efficiency, APEX’s scores are far lower than average sector’s scores.

• APEX should have strategies to escalate the Growth, Speed and efficiency score at least close to the average sector’s scores.


Recommended Strategies

• Increasing the ROA

• Escalating the satisfaction of the existing clients and increasing the company performance to attract potential clients and investors.

• Escalating QHSE Performance

• Developing cost reduction (Cost Efficiency) Program

• Developing Training and Development Program to increase the competency of the employee in order to support Cost Efficiency program and increasing the productivity.

• Utilizing available IT system to support Cost Efficiency Program and Increasing the productivity.

• Re-structuring the existing organization to achieve the efficient and Effective organization.


Strategic Mapping

Financial PerspectiveCustomer Perspective

Internal Business Process Perspective

Learning and Growth Perspective

ROASatisfaction

Trust

Safety Perfor.

Cost Efficiency

Productivity

Competency Restructuring IT System


Balance Score Card

Perspective Objective Measures Target

Financial Escalating the ROA The growth of ROA 10 %

Customer

Increasing the satisfaction of the existing clients

Client’s complain 0 Complain

Escalating the trust of potential clients

New Project 1/year

Internal Business Process

Escalating the safety performance

FATALITY 0

Property Damage 50 %

Cost Efficiency Total Asset Turnover 10 %

Increasing Productivity Total Revenue/Employee 20 %

Learning and Growth

Training and Development Program

hour of employee Trained per year

16 h

Using available IT Technology Business Intelligent 100 % Rel.

Re-structuring No of Position 10 %


Thank You

competing value framework

Business

values analysis conclusion

eva growth

net income

globalstandard quality

quality management system

total comprehensive

type of listing

income tax expense net