Candra Intyas, Pudji Purwanti, Agus Tjahjono, Faizah Ajeng Fadillah, Ismail Sebastian Rifaldo

The financial feasibility analysis of seaweed product at ora food MSMEs in Yogyakarta

Introduction

The financial feasibility analysis of seaweed product at ora food msmes in yogyakarta. Analyze the financial feasibility and business sensitivity of Ora Food MSMEs' seaweed chips in Yogyakarta. Discover profitability, NPV, IRR, and payback period insights for sustainable growth.

Abstract

Introduction: Diversification of processed seaweed products aims to respond to changes in consumer preferences, reach a broader market, and reduce the risk of dependence on one particular product type. In addition, product diversification can also be a practical innovation in increasing public interest in fishery products. One is the Ora Food MSMEs Yogyakarta, which is in the form of seaweed chips. Business feasibility is needed in a company's progress, and it is an analysis carried out on agencies on a particular project to provide direction as to whether investment in the project is feasible or not. Therefore, this study aims to analyze financial feasibility and business sensitivity in Ora Food MSMEs. Methods: Profitability analysis (BEP, profit, R/C and RTC), financial feasibility (NPV, B/C, IRR and PP) and business sensitivity analysis. Results: Profitability analysis, namely BEP sales of Rp. 119,324,566 or selling as many as 6,609 pcs with the product that must be sold the most on the regular spicy seaweed chips product (BEPq KRLBP ) a total of 3,182 pcs R/C = 2.18 (>1), RTC = 95.42% (>6%) then financial feasibility is NPV = Rp. 747,908,878,- (NPV positive) Net B/C = 3.62 (>1) and IRR = 65% (>6%) and payback period = 1.65 years. Furthermore, the business sensitivity analysis uses three scenarios, namely (1) Costs increase (138%), benefits remain the same, (2) Costs remain the same, benefits decrease (41%), and (3) Costs increase (56%), Benefits decrease (31%). Conclusion: The results of the financial feasibility analysis show that the business is profitable in the short term and financially feasible. In the sensitivity analysis, it can be concluded that the company is quite sensitive if there is a decrease in benefits but is not sensitive to increasing costs. Therefore, sales are expected to be constant at current production or improved by using optimised social media online marketing to reach a larger market.

Review

The study presents a timely and relevant financial feasibility analysis of seaweed products at Ora Food MSMEs in Yogyakarta, focusing on seaweed chips. The abstract effectively introduces the importance of product diversification for market reach and risk reduction, setting a clear objective to assess the financial viability and business sensitivity of this particular venture. This research provides valuable insights for MSMEs in the agri-food sector, offering a structured approach to evaluating investment decisions in new product lines and contributing to the understanding of small business sustainability in the region. The methodology is comprehensive, employing a robust set of financial tools including profitability metrics (BEP, R/C, RTC), standard financial feasibility indicators (NPV, B/C, IRR, Payback Period), and a detailed business sensitivity analysis. The results strongly indicate the financial attractiveness of the seaweed chip business, with an impressive NPV of Rp. 747,908,878, a Net B/C ratio of 3.62, an IRR of 65%, and a rapid payback period of 1.65 years. The sensitivity analysis, examining three scenarios of cost and benefit fluctuations, is a particular strength, offering a nuanced understanding that the business is more vulnerable to decreases in benefits than increases in costs. While the study offers a clear picture of financial viability, the abstract could be enhanced by providing a more explicit time horizon for the financial projections, beyond simply "short term," to better gauge long-term sustainability. Additionally, a deeper exploration of the underlying causes for the observed sensitivity to benefit decreases, and concrete strategies for mitigating this risk, would strengthen the practical recommendations. Future research could expand beyond financial metrics to include qualitative aspects such as market demand projections, competitive analysis, supply chain resilience, and the scalability of the social media marketing strategy, to offer a more holistic business assessment for similar MSMEs.

Full Text

Comments

You need to be logged in to post a comment.