Analysis of Business Development Strategies of PT XYZ (Study of Acquisition of Minority Shares of PT XYZ)

PT XYZ is the first pharmaceutical raw material (Active Pharmaceutical Ingredient/API) factory in Indonesia, established through a joint venture between PT ABC and PT FGH (a representative of FGH Co Ltd, South Korea). Despite strategic intent and supportive government policies, the joint venture failed to deliver significant performance contributions from 2016 to 2021, resulting in negative profitability and excessive debt accumulation. This study aims to evaluate the performance of PT XYZ’s joint venture, analyze its internal and external strategic environments, and formulate corrective strategies to support minority share acquisition by PT ABC. A qualitative case study approach was employed. Primary data were collected through in-depth interviews, questionnaires, and focus group discussions (FGDs) with purposively selected management informants (n=3: Operations Director, Marketing & Sales Director, and Operations Division Head). Secondary data included financial reports, legal documents, and industry data. The IFE score of 3.083 and EFE score of 3.195 place PT XYZ in Cell I of the IE matrix, indicating a grow-and-build strategic position. The SWOT analysis generated six alternative strategies centered on market penetration, horizontal integration, good corporate governance, and cost efficiency. Minority share acquisition by PT ABC is strategically justified and can be executed through three scenarios: (1) direct takeover by PT ABC; (2) PT ABC seeks a new business partner; or (3) PT FGH finds an independent buyer. Managerial implications include adoption of an aggressive growth strategy, enhanced value chain management, and human resource capacity development.