Russian Journal of Agricultural and Socio-Economic Sciences (Nov 2019)

STRATEGY FOR DEVELOPMENT OF PALM OIL MILL CONTRACTOR SERVICES

  • Sitepu H.M.P.,
  • Sjarief R.,
  • Sahara

DOI
https://doi.org/10.18551/rjoas.2019-11.10
Journal volume & issue
Vol. 95, no. 11
pp. 75 – 82

Abstract

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Palm oil production is supported by a palm oil mill, where oil palm mills are required to produce high hours of production. One of the business sectors that support the utility of palm oil mills is a contracting services company. PT SMI is a company engaged in the business of contracting services that focuses on the maintenance and repair of tools and machinery in palm oil mills. The tight competition between contractor service companies, because North Sumatra is a palm oil center, so that it affects the decrease in the amount of PT SMI's revenue. The method in determining the main strategy can be done through three stages of implementation, namely the stage of data collection (evaluation of internal and external factors), the matching stage (IE and SWOT matrices), and the decision stage (QSPM matrix). The results of this study are based on three strategic priorities, namely first to carry out maintenance and repair in existing palm oil mills and prepare installations for waste management in palm oil mills. Second, form a part of the marketing team to carry out the promotion and outreach agenda related to the maintenance, repair and management of palm oil mill waste and to collaborate with the North Sumatra environmental department (DLH). Third, socializing the utilization of palm oil liquid waste to palm oil mills to open new market opportunities in North Sumatra.

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