Daftar Isi:
  • This study aims to (1) analyze the production factors which affect productivity of kemplang crackers small industry in North Tebing Gerinting Village South Indralaya Sub-District, Ogan Ilir Regency, (2) analyze the optimalization of the production factors utilization which influence the productivity of the industry and (3) determine or arrange the strategy of its bussiness development. The study was done in North Tebing Gerinting Village South Indralaya Sub-District, Ogan Ilir Regency. The location was selected on purpose. Data collection was held on February 2017. The sampling method used was the simple random sampling with 30 samples from 72 populations. The collected data were primary and secondary data. The results of this study showed that the use of production factors were in the form of fish, flour, labor and capital. The obviously influential factors were fish, flour, and capital whereas, the workers’ roles had no effect otowards this industry. The utilization of fish and flour were not efficient yet, whereas the utilization of workers and capital were not allocatively efficient. The optimal use of production factors as in the amount of 10832.8 pounds of fish per year and 44058.2 kilograms of flour per year. The utilization of workers and capital were not counted because it had negative influences towards the production. From the SWOT analysis, the internal factors which was the strength of the industry had higher weight score than weakness factors and on the external factors, chances had higher weight score than the threat factor. It showed that the position of internal and external factors on the industry was strong enough. The total score of the internal factors was 2.94 and the external factors was 3.14, these values indicated that the business strategy was in the second cell strategy that is the concentration strategy through horizontal integration, an activity to expand the company with the aim to increase sales and profits by utilizing advantages both from production and marketing. The industry which is in this cell is able to expand the market, cooperate with other similar industries and use technology for the business development.