Group 2

IEMM Batch 9:

Benhard Sihombing
Eunike Grace Subur
Michael Susanto Pardi
Natalia Nagan
Sunarto Wangsa Widjaja
Rowny B. Ginting
Victoria W. Ratnaningtyas
Garuda’s History
Garuda’s Vision and Mission

Garuda translated its vision into missions concentrated

in shareholders, customers, processes and employees.
Based on its vision and mission, it developed 5 strategic
themes.
Strategy Map OBJECTIVES

Increase Return on
Investment

Efficient cost
SHAREHOLDERS:
Grow Revenues/
Increase Market structure compared Maximize group value for better
FINANCIAL PERSPECTIVE Share to peers
shareholder return among regional
airlines
Increase
traffic

Attract and
retain more
customers

Stronger CUSTOMERS:
brand Reliability and
value for By delivering excellent Indonesian
CUSTOMER PERSPECTIVE money
Convenient,
hospitality and world best
on-time and experience to customers
safety

Better Sharpen
Product & segmented
Services pricing

Conserve
fuel PROCESS:
INTERNAL PROCESS Expand, simplify and
rejuvenate fleet. Implementing cost leadership and
PERSPECTIVE synergy within group
Effective operations: Improve Operational
Practices, Efficient Aircraft Operations,

HUMAN CAPITAL: CULTURE:

Right quality and Condusive EMPLOYEE:
quantity, skillful staff, work
LEARNING and GROWTH leadership/managerial environment By engaging passionate and proud
skills employee in one of the most admire
PERSPECTIVE
TECHNOLOGY: company to work for in Indonesia
Improved
technology
Balanced Scorecard
MEASUREMENT TARGET

f Operational Revenue f US$ 1.9 Billion

f Operational Expense f US$ 2.1 Billion
f Net Profit (Loss) f (US$0.1 Billion)

f Top 10 the world best airline by Skytrax

f Maintain current position
f World 5-star airline rating by Skytrax
f Top 10 major carrier in Asia
f The World Best Cabin

f 18.3 Million
f Passenger Carried
f 89%
f On-Time performance
f 78%
f Seat Load Factor.
f 9:40
f Aircraft Utilization.

f Employee Training f 16 Hours

f Hiring & Retentation Talent f 97%
Action Plan
INITIATIVE BUDGET

f Bridge facility used to re-profile existing commercial term loans

f Proposed IDR bonds issuing to refinance bridge loan to extend
maturity profile

f Setting/ Reviewing Customer Expectations

f Comunication with Customers in every stage of engagement
f Strengthen Customer service skills and improve customer
interaction
f Give Customer a way to provide feedback

f Cost Saving Program

f Improving efficiency of distribution channel

f Career planning
f Air crew job and ground crew job categories
f Repair and maintenance job categories
f Training for recruits and training for different job categories
f Online learning
 Overall Strategy Management
STRATEGY MAP BALANCE SCORECARD ACTION PLAN
OBJECTIVES MEASUREMENT TARGET INITIATIVE BUDGET

Increase Return on
Investment
SHAREHOLDERS:
f Operational f Bridge facility used to re-profile
Maximize group
Grow Revenues/ Efficient cost Revenue f US$ 1.9 Billion existing commercial term loans
FINANCIAL Increase Market structure compared value for better
Share to peers f Operational f US$ 2.1 Billion f Proposed IDR bonds issuing to
PERSPECTIVE shareholder
Expense f (US$0.1 Billion) refinance bridge loan to extend
return among
f Net Profit (Loss) maturity profile
Increase regional airlines
traffic

Attract and
retain more
f Top 10 the world f Setting/ Reviewing Customer
CUSTOMERS:
customers best airline by Skytrax Expectations
By delivering
Stronger
f World 5-star airline f Comunication with Customers in
excellent
brand Reliability and rating by Skytrax f Maintain current position every stage of engagement
CUSTOMER value for Indonesian
money
f Top 10 major carrier f Strengthen Customer service skills
PERSPECTIVE hospitality and
Convenient, in Asia and improve customer interaction
on-time and world best
safety f The World Best f Give Customer a way to provide
experience to
Cabin feedback
customers

Better Sharpen
Product & segmented
Services pricing
f Passenger Carried f Cost Saving Program
Conserve PROCESS: f 18.3 Million
f On-Time f Improving efficiency of distribution
INTERNAL fuel Implementing f 89%
Expand, simplify and performance channel
PROCESS rejuvenate fleet. cost leadership f 78%
f Seat Load Factor.
PERSPECTIVE and synergy f 9:40
f Aircraft Utilization.
Effective operations: Improve Operational within group
Practices, Efficient Aircraft Operations,

EMPLOYEE:
f Career planning
By engaging
HUMAN CAPITAL: CULTURE: f Air crew job and ground crew job
Condusive passionate and
Right quality and f Employee Training categories
LEARNING and quantity, skillful staff, work proud employee f 16 Hours
leadership/managerial environment f Hiring & f Repair and maintenance job
GROWTH skills in one of the f 97%
Retentation Talent categories
PERSPECTIVE most admire
TECHNOLOGY: f Training for recruits and training for
Improved company to
technology different job categories
work for in
f Online learning
Indonesia
Issues and Follow Up Actions
Current Key Issue
• Employee
satisfaction
• Profit Loss
• High Operation
Expense
• Fuel Surcharge
• Expand Selling
Channel (explained
further in next slides - 9
and 10)
Follow Up Actions
• Improve Employee
Engagement
• Increase customer
satisfaction
• Cost Saving Program
• Restructuring non Profit
division (Spin off)
• Outsourcing supporting
activities e.g.
Maintenance
• Conserve fuel
• More digitalization
Expanding Selling Channel
Expanding Selling Channel
THANK YOU