Syntax Literate: Jurnal Ilmiah Indonesia
p�ISSN: 2541-0849 e-ISSN:
2548-1398
�Vol. 8, No. 8, Agustus 2023
ADVERTISEMENT BUSINESS
FINANCIAL STRATEGY DURING THE COVID-19
PANDEMIC: A CASE STUDY OF SATRIA ADVERTISEMENT COMPANY
Ronald Septyanto Suparta, Liliana
Inggrit Wijaya
Faculty of Business and Economics, University of Surabaya,
Indonesia Email: [email protected]
Abstract
The COVID-19
pandemic has had a major impact on the business world,
including Karya Satria Advertisement companies engaged in out-of-home
Advertisement. The company
experienced difficulties in obtaining Financial due to strict banking policies during the pandemic and new
regulations from the government during the
pandemic, which also impacted the company's operations. Based on this, the purpose
of this study is to explore Financial strategies that can be applied by Karya Satria Advertisement during the COVID-19
Pandemic. The approach
used is qualitative and exploratory. The research data was obtained by
interviewing three resource persons,
consisting of the Finance Manager, Head of Magelang
Branch, Head of Solo Branch.
Furthermore, the data obtained were analyzed using three stages of analysis:
data condensation, data presentation, and conclusions. The results showed that Karya
Satria Advertisement felt the negative impact of the COVID-19 Pandemic, especially at the beginning
of its spread. However, based on the company's good adaptive power and
support from loyal customers, as well as strong commitment from all internal
parts of the company, Karya Satria Advertisement
can overcome these negative impacts. Karya Satria
Advertisement has a positive response
to these regulations, namely by trying their best to comply with and implement various new government
regulations. The Financial strategy that can be applied
by Karya Satria
Advertisement is to look for alternative sources
of Financial, ranging from venture capital, P2P lending, government
programs, strategic partnerships, or alternative financial instruments.
Keywords: Covid-19 Pandemic;
Financial Strategy; Out of
Home Advertisement
Introduction
The outbreak of the COVID-19 pandemic has had a negative impact on
various business sectors,
including the Advertisement business. According to the chairman
of the Indonesian Advertisement Companies Association (P3I), Janoe Arijanto, in mid-2020
the
Advertisement
industry experienced a business decline of up to 35%. The impact of the pandemic has caused company activities
(events) or product brands to decline sharply,
especially product brands with characters that focus on events or
activation and tend to interact
directly with consumers. At the same time, the work-from-home policy also increases the number of television
viewers. In addition, the high penetration of internet use also changes the behavior of users of government services to
shift their activities to digital
form. Furthermore, this will be a challenge as well as an opportunity for the Advertisement industry (Sitinjak & Ginting, 2020).
Business actors need to implement crisis management in order to survive
in the midst of a pandemic. According
to Ratten (2020), crisis management is defined as an activity
or activity used as a response to dealing with a threat.
The key to crisis management is the ability
of company management to face crisis
events head-on and limit the potential damage that will be caused.
The level of success in dealing with crises at the ongoing stage depends largely on the
ability of company management to make the right decisions, especially in establishing and implementing defensive
strategies that are in accordance with the characteristics of the company
and the crisis situation being experienced (Elliot et al., 2005).
A survival strategy
is a strategy generally applied
by a company to be able to deal with situations that are less favorable
to the company (Sopiah & Sangadji,
2022). This situation can occur when the company
is unable to compete with competitors, when there are many potential competitors in the
same industry sector as the company, or when a
disaster occurs, such as the outbreak of the COVID-19 pandemic.
In accordance with its relevance to the COVID-19
pandemic situation, the survival strategy implemented by the company has
become one of the topics that are widely studied
in scientific research. However, most of these studies are still limited to the objects
of newspaper companies and radio Advertisement, such as research
conducted by Hutapea & Simbolon (2021) on the Kiss FM Medan radio object, which
found that the survival strategy that
can be applied is to invite listeners or the public to participate in activities directly. This is a powerful
strategy to encourage an increase in the number of radio advertisers during the COVID-19 pandemic. This step needs
to be taken because Advertisement promotions, which can initially be carried out simultaneously with events that are usually carried out in malls,
coffee shops, and other places, cannot be done due to social
restrictions due to the COVID-19 pandemic.
Sasmito and Santosa's (2022) research on the
KFC Stay At Home Campaign Advertisement object found that content capture and social media
channels are strategic instruments to
communicate that KFC remains resilient and serves fully. Furthermore, social media channels can be a quick
booster in delivering messages contained in KFC's Stay At Home Campaign advertisements during the COVID-19
pandemic.
Sihite et al.'s (2021) research
on outdoor Advertisement objects found that although
the trend in the number of advertisers has decreased due to the COVID-19 pandemic, this does not mean that outdoor
media channels are abandoned. An emotional
approach is needed so that people
can engage according
to their needs, desires, or interests
during the pandemic so that they can encourage
interest in products
as well as build long- term loyalty.
Outdoor media content
must adapt by showing concern
and appealing to the wider community to comply with
health protocols.
Putri and Setyaningrum's (2020) research on Suara Surabaya
radio objects concluded that to attract advertisers
during the COVID-19 pandemic, strategic steps are needed to attract advertisers' attention, namely by providing
discounts and choices of Advertisement packages.
Another strategy is a promotional step that leads to an educational
soft campaign. The interaction with listeners through the TalkSS
webinar program using Zoom live
streaming, Facebook E100, and Youtube Suara Surabaya regarding the Surabaya Care for COVID-19
movement can encourage a positive image of
Suara Surabaya radio during the COVID-19 pandemic so that it can stimulate the number
of advertisers.
Kadir's (2022) research on the object of the Samarinda
Pos newspaper concluded that a strategic step that can be taken during the COVID-19 pandemic
is to create a digital
newspaper (e-paper) that can be accessed through
the Samarinda Pos website. In addition, the step of giving discounts is also
carried out by publishing newspapers at a price of Rp 5,000 per copy with a total of 16 pages. Discounts are also
given to marketers according to the place where newspapers are distributed, for example, at red-light highway
intersections, government agencies, stalls, and others. Ispandriarno's (2020) research on the object of the Yogyakarta People's Sovereignty Daily also
concluded that strategic steps that
can be taken in the pandemic are increasing the number of readers through collaboration with several communities,
such as the UGM Alumni Family, the Gowes group, the Chinese
community, and Crossword lovers. In addition, strategic steps are also carried out by intensifying
advertisements. Ads written in a journalistic style will be offered to a number of institutions, such
as colleges, hotels, and other institutions. The next strategic step is to implement a technology-based strategy
through media convergence, namely e-paper, by establishing Krjogja.com and KoranMerapi.com. Muliawan and Sukendro (2022) examined changes in the Advertisement
strategy of Ozzigeno
Studio Digital Agency Jakarta during the COVID-19 pandemic. The strategic step taken by Ozzigeno
Studio Digital is to use a mix of marketing communications, namely digital marketing, personal
selling, and sales promotion. The platforms used by Ozzigeno Studio Digital in marketing
its services are Facebook, Instagram, Twitter,
websites, Facebook ads, and Google ads. Personal
selling activities carried
out by Ozzigeno are assisted by the use of technology, such as Advertisement order applications and calls via WhatsApp and Zoom. In this
personal selling activity, the Ozzigeno team also continues to maintain applicable health protocols. Another
step is to apply discounts, where Ozzigeno will provide
an all-in-one package
for prospective customers
that includes a variety of services to support Advertisement activities.
Sudarmiatin (2022) analyzed
survival strategies used by micro, small, and medium-scale
enterprises during the COVID-19 pandemic. The analysis is carried out using the SWOT method. The results of his
research stated that survival strategies that
can be applied during the pandemic include:
1) Adapting to changing consumer
behavior
during the pandemic; 2) increasing training
to develop skills
in the use of technology that supports
business activities; 3) Developing target consumers from offline to offline and online; 4) adding an online marketing
network by selling products on the marketplace; and 5) increasing product diversification according to consumer needs.
Sari et al. (2022) analyzed
survival strategies for small and medium-scale companies in Kendari City during the COVID-19 pandemic.
By using the SWOT method,
findings were obtained
stating that the most
appropriate survival strategy
to be applied is the
SO (Strengths-OOpportunities) strategy, which
consists of: 1) Optimizing the use of technology
to increase sales; 2) improving product quality and packaging to increase consumer interest and confidence. This
strategy is implemented so that the company can survive in the midst of the COVID-19 pandemic.
Rosyidah et al. (2022) examined the survival
strategies implemented by micro, small,
and medium enterprises (MSMEs) when the COVID-19 pandemic has begun to subside and competition has become
stronger. The analysis method used is SWOT analysis. The results of his research
stated that the most
appropriate survival strategies to be applied are
diversification strategies and innovative strategies, which are specifically realized
in the form of creating
innovative new products,
expanding sales areas, increasing promotions, and integrating digital
technology into business activities.
Based on the results of previous research on survival strategies in the
face of the COVID-19 pandemic, it can
be seen that most companies implement e-paper strategies, the use of promotional channels through
social media, and the application of discounts. Regarding the object of research, it can be seen that research
on the object of outdoor Advertisement
companies is still very limited and only focuses on micro, small, and medium-scale companies in general.
Therefore, this research was conducted at Karya Satria Advertisement, which is an
out-of-home Advertisement company that has been in the outdoor Advertisement industry
for more than 30 years. Customers of services provided
by Karya Satria Advertisement come from various
circles, including Sampoerna, Gudang
Garam, Mayora Group, Exxon Mobile, Wismilak, NTI, and
others. Based on the quality of the
services provided, these customers become loyal customers who regularly use the services
of Karya Satria
Advertisement. In addition
to having loyal
customers, the out-of-home Advertisement company headquartered in
Semarang City also continues to
strive to acquire new customers by implementing various types of the most appropriate marketing methods.
However, it turns out that the increase in company sales is still not running steadily. In addition to being
directly affected by the pandemic, Karya Satria Advertisement's business activities are also
affected by new government regulations
implemented in order to overcome the COVID-19 Pandemic in Indonesia. The Indonesian government establishes and implements a Large-Scale Social
Restrictions (PSBB) policy
that limits social interaction by prohibiting people from gathering in one place and limiting the time of activities
outside the home. This has a significant impact on Karya Satria Advertisement's
business activities, which provide Advertisement out- of-home services. More specifically, the results of preliminary
data mining for Karya Satria Advertisement show that the factors that caused the decline in sales of Karya Satria
Advertisement
started with the appeal and government regulations to minimize mobility outside the home, the lack of people's
purchasing power, and the massive penetration of digital Advertisement. This situation makes it difficult
for Karya Satria Advertisement to obtain Financial from banks to finance its production
activities.
In accordance with the explanation from representatives of Karya Satria Advertisement, it is known that after the client
decides to use the
Advertisement services provided
by the company, the company
submits funding to the bank to finance
production activities. After
the company completes its obligations to the client and the client makes a payment to the company,
the payment money
from the client
is used to pay off funding from the bank. In this case, funding from
banks becomes a determining factor for the continuity of the company's
production activities. However,
due to the pandemic situation, banks tightened their
funding by asking
for various additional conditions, which ultimately made it difficult for Karya Satria Advertisement to obtain funding
from banks. In accordance with the situation at hand,
Karya Satria Advertisement needs to plan a Financial strategy
to overcome the Financial problems faced.
Some previous studies that examined the topic of Financial
strategies include Fitriyana & Prasojo (2022),
which aim to analyze financial management strategies for MSMEs in the transition era of the COVID-19 pandemic. The
results of the study stated that
MSME Financial strategies in the era of the COVID-19 pandemic need to
prioritize funding that does not come
from debt from banks because debt funding has the potential to further complicate the company's
financial condition when the business activities carried out cannot achieve the desired results. This potential
is quite large because the pandemic situation presents various problems that
hinder business activities.
Financial strategy is an important thing that must be determined and
applied by every company, both in
normal and pandemic situations. This is based on the influence of the Financial
strategy on the company's performance, which has proven significant (Nyabakora et
al., 2020), and the company's competitiveness (Peprah & Ayaa, 2022). Thus, companies that are in a pandemic
tend to survive well if the company implements
the right funding
strategy, which can maintain company
performance and competitiveness superior to its
competitors.
Based on the overall explanation above, the problems raised in this study
can be formulated as follows: (1) How
will the COVID-19 pandemic crisis impact Karya Satria Advertisement? (2) How will Karya Satria Advertisement respond to new regulations from the government due to the COVID-19 pandemic?
(3) What is the Financial strategy
that Karya Satria
Advertisement can apply to
adapt to the COVID-19 pandemic?
In accordance with the above problems, the objectives of this research
are to: (1) Knowing the impact of the
pandemic on business and management activities at Karya Satria Advertisement at the beginning and
in the midst of the COVID-19 pandemic, (2) Explain the response of Karya Satria Advertisement to new regulations from the government due to the COVID-19 pandemic.
(3) Explore Financial strategies that can be applied
by Karya Satria Advertisement in facing crises such
as the COVID-19 pandemic in the short and long term.
Research Methods
This research is of the exploratory qualitative type, which was chosen
with the aim of exploring phenomena
in the object of research to be connected with existing theories. The object of research in this study is the impact of
the COVID-19 pandemic crisis on Karya Satria Advertisement, Karya
Satria Advertisement's response to new regulations from the government, and the funding
strategies implemented by Karya Satria Advertisement during the COVID-19
pandemic. The research data was collected using the interview method (depth interview) with three resource
persons consisting of the Finance Manager,
Magelang Branch Head, and Solo Branch Head at Karya Satria Advertisement. The interview results
are transcribed word by word,
ignoring filler words to
be able to focus only on the interview content. The transcription data will
then be further analyzed
together with data on the reactions and expressions of respondents during
the interview (Neuman,
2013). Data analysis
was carried out using descriptive qualitative techniques to explain the impact of the COVID-19
pandemic crisis, Karya Satria Advertisement's
response to new regulations, and funding strategies that can be applied by Karya Satria
Advertisement.
Qualitative data analysis techniques consist of three stages: data
condensation, data presentation, and conclusion drawing
(Miles et al., 2017). The first stage of qualitative data analysis is the
condensation of data collection, which includes activities of selection, setting
focus, simplification, abstraction, and transforming data that has high relevance to the research topic. The
data condensation stage is carried out after data collection through various methods set out in the study, which
is then followed by the selection of
the data in order to conform to the research focus. The next stage is the presentation of data carried out to make
it easier for researchers to understand the data that has been obtained in research. The presentation of this data is carried
out in the form of narrative descriptions or text,
charts, or tables. The final stage is drawing conclusions to answer the problem formulation carried
out with analytical descriptions, which are developed
based on categories that have been found and look for relationships that are suggested
or that arise from the data.
Results and Discussion
A. Impact of the Pandemic Crisis
on Karya Satria Advertisement
The results of interviews with research informants showed that the COVID-19 pandemic only had an impact on Satria
Advertisement's work in the early days. Companies that are in the process
of adapting have experienced obstacles
because they had to adjust to the situation
during the pandemic
and the business
model of companies engaged in the OOH sector. Before the pandemic, Karya Satria Advertisement could freely assign its employees to carry out work according
to customer requests.
However, during the pandemic, companies must rearrange their
work schedules, work times,
and work procedures so as not to endanger the safety and health of employees and customers.
After Karya Satria Advertisement was able to adapt to the COVID-19
Pandemic situation, the company was quickly able to control
its operational activities. When other companies
in general experience a decline in sales, Karya Satria Advertisement does not experience an increase in sales during the pandemic.
According to the interview, the main factor that caused this was the company's compliance with government regulations during the COVID-19
Pandemic. In addition, the company also has loyal customers who still want to continue
their work even in a pandemic situation.
Karya Satria Advertisement also makes maximum
efforts to ensure that every part
of the company upholds compliance with government regulations during the COVID-19 Pandemic, equips its employees
with the required PPE, provides support in the form of nutrition and health supplements, and routinely carries
out early detection by checking employees at
health clinics near each branch office. Based on these various efforts,
Karya Satria Advertisement can still meet the expectations of its customers well, both related to the
quality of work results and the timeliness of work completion.
This finding has differences with the findings of several previous
studies, which tend to state that the COVID-19 Pandemic
has a significant negative
impact on companies engaged in the OOH sector. The COVID-19 pandemic
has had a significant impact on various business
sectors, including the outdoor Advertisement industry (out- of-home
Advertisement). The pandemic
has also resulted
in a drastic decline in the use of
public spaces. Along with social distancing policies and lockdowns, many people are choosing to stay at home and reduce activities outside the home.
This has an impact on decreasing the number of people who
see advertisements posted outdoors, such as
billboards, billboards on public transportation, or billboards in
shopping centers. A study conducted
by Kim et al. (2020) shows that out-of-home Advertisement companies experience a significant decrease in revenue due to a
decrease in mobility and outdoor activities in the community.
The COVID-19 pandemic
has also changed
consumer behavior and Advertisement
preferences. In a situation full of uncertainty and health concerns, people are focusing
more on information related to COVID-19 and paying less attention
to other advertisements. This has resulted in a decrease in the effectiveness of outdoor Advertisement during the
pandemic. According to research by Jeong et al. (2021), advertisers must change their
Advertisement messages and look for new ways to attract
consumers' attention amid uncertain situations during the COVID-19
Pandemic.
The COVID-19 pandemic
has also forced out-of-home Advertisement companies to innovate and adapt to new circumstances. Many
companies are shifting their
business focus to digital media and online Advertisement to reach a larger audience that is more active at home. OOH
companies are also starting to develop more
flexible and customizable Advertisement solutions, such as digital signage that can be updated
in real-time. A study conducted by Tran et al. (2021)
shows that
companies that are able to adapt quickly to changes in consumer behavior
and technology can survive and even gain profits during
the pandemic.
The COVID-19 pandemic
has caused a decrease
in the Advertisement budgets of various companies. Many businesses are experiencing financial
stress due to declining
revenues and economic uncertainty brought about by the pandemic. As a result, these companies tend to reduce
Advertisement budgets, including those for outdoor
Advertisement. A study by Rovira-Asenjo et al. (2020) found that companies tend
to cut Advertisement budgets to overcome the impact of the pandemic, which has an�
�impact�
�on�
�the��
company's� �revenue�� from���
out-of-home��� Advertisement. The COVID-19 pandemic
has also affected the outdoor Advertisement industry in the long run. Some companies
may consider strategic
changes and business
transformations in the face of challenges and changes in consumer
behavior that are more sustainable.
The study by Gomes et al.
(2020) states that out-of-home Advertisement
companies should consider
structural changes, investments in technology, and increased
industry collaboration to remain relevant
and competitive in the future. The difference between the findings of
this study and the findings of several previous studies above shows that the COVID-19 pandemic does not always
cause downturns for companies engaged
in the OOH sector, such as Karya Satria
Advertisement. The main key that
causes Karya Satria Advertisement to minimize the
impact of the COVID-19 Pandemic is
the ability to adapt quickly and compliance with government regulations. In addition, high
commitment from the company, both to maintain the safety of its
employees and to meet customer demands, is also the main
key.
B. Karya Satria Advertisement's Response to New Government
Regulations Due to the COVID-19
Pandemic
Many companies have responded to government regulations by adopting remote
work policies. This step was taken to maintain the health and safety of employees and comply with government policies
related to social
distancing and lockdown. Through remote working,
companies can maintain
operational continuity while
minimizing the risk of spreading
the virus. Research
conducted by Zheng et al. (2020) shows that companies
that implement remote work policies
during the pandemic can reduce the risk of infection and protect employee
health. This was done by Karya Satria Advertisement, which changed its work schedule
in accordance with government regulations. The company
enforces a division
of labor between
employees who work in the office and those who work from home with a percentage of 50%:50%. Companies in general also respond to government regulations by adopting stricter health and hygiene protocols in the workplace.
The company increased
sanitation measures, such as more frequent cleaning
and disinfection, temperature checks, the use of face masks, and physical distancing
between employees. A study conducted by He et al. (2021) shows that the implementation of strict health
protocols can help reduce the risk of spreading COVID-19
in the workplace. In accordance with the results
of the interview, Karya Satria Advertisement also built a clean culture
during the
pandemic as a follow-up to government regulations to enforce health protocols. In addition, Karya Satria Advertisement actively
provides nutritional support and health supplements to keep
employees healthy and able to carry out their
work optimally.
During the COVID-19 Pandemic,
companies are required
to be able to adjust
their operational activities by complying with government regulations related to activity restrictions. The Company
reduces or stops operations in sectors that are considered non-essential in accordance
with government policy. Some companies are
moving towards digitizing
their businesses to continue operating
effectively in situations of restriction. A study by Chan and Nguyen (2021) shows that companies that
are able to adapt quickly
and utilize digital
technology have a competitive advantage during the pandemic.
Likewise, Karya Satria
Advertisement changed the model of interaction with its customers
from the initial one through face-to-face, so during����� the������ COVID-19��������� Pandemic,������������� Karya���������� Satria���� Advertisement���������������� prioritized communication with customers with the
help of long-distance communication media.
\Every company needs to innovate
to meet changing market needs due to government regulations. Companies must be able to develop new products or services that are appropriate for the pandemic
situation, such as online delivery
of food and goods, health apps, or telemedicine services.
Research by Gagne et al. (2020) shows that business
innovation is the key to surviving and adapting amid rapid regulatory changes and market
needs during the pandemic. This is not in line with the findings of this study,
which found that Karya Satria Advertisement feels no need to innovate
because there is no significant market trend that can affect the company.
This is evidenced by the continued customer
demand, even in the COVID-19
Pandemic
situation. Even the company stated that it had increased sales during the pandemic.
Companies must work with governments and relevant entities
to support pandemic response efforts. Studies by
Zhang et al. (2021) show that collaboration between
companies and governments can lead to more effective solutions for dealing with pandemics. This is also carried out
by Karya Satria Advertisement, namely by collaborating with health clinics around
the company's branch offices to facilitate employee
health checks as a form of early detection of COVID-19 in the company environment.
C. Financial
Strategy Applied by Karya Satria Advertisement in Adapting
to the Covid-19 Pandemic
The right Financial strategy
allows the company
to meet urgent liquidity needs.
The Covid-19 pandemic has led to a decrease in revenue and an increase
in operating costs for many
companies. Therefore, the company must be able to obtain sufficient funds to meet its financial obligations,
such as payment of salaries, rent, and other
bills. Research by Meyliana et al. (2020)
shows that companies that have fast and effective
access to liquidity have a greater chance of surviving and recovering from the impact of the pandemic. In accordance
with the results of the interview, it can be
seen that Karya Satria
Advertisement only relies on Financial from bank loans.
Therefore, when
the COVID-19 Pandemic broke out and banks implemented strict policies in their loan programs, Karya Satria Advertisement had difficulty obtaining Financial.
The right Financial strategy helps companies manage
financial risks arising
during the pandemic. Uncertain economic situations
and market fluctuations can cause financial
instability for the company. In dealing with this risk, companies need
to consider sources of Financial that
can reduce risk, such as utilizing government programs that provide
financial support or restructuring debt.
A study conducted by Zhao et al. (2021) shows that companies with a good Financial
strategy can reduce the negative impact posed by financial risks during the pandemic. Related to this, Karya Satria Advertisement actually has a big risk of Financial
because it only depends on bank loans. Although the impact of the COVID-
19 Pandemic is not felt too much, in the long run or when there is a crisis
situation that is heavier than now, it is likely
that Karya Satria
Advertisement will experience greater Financial difficulties, which in
turn can threaten the sustainability of the company.
The right Financial strategy
also helps the company optimize
its capital structure. In a pandemic situation,
companies need to consider the balance between
internal and external funding as well as their own debt and capital
structure. A study by Jensen & Meckling (2020) shows that companies that have a balanced and optimal capital
structure tend to have better financial stability during economic
crises. Related to this, the interview results
show that Karya Satria Advertisement does not yet have a balanced capital structure
because it still relies on bank loans
to finance its production activities.
The right Financial strategy can help companies
maintain good relationships with stakeholders. The COVID-19 pandemic
has not only affected companies but also suppliers, customers, and investors. In
the face of financial limitations, companies
need to communicate clearly and transparently with stakeholders
regarding Financial
strategies and business recovery
plans. Research by Islam et al. (2021)
shows that trust and
strong relationships with stakeholders can help companies gain the necessary support and understanding during a
pandemic. In accordance with the results of the interview, it is known that Karya Satria Advertisement seeks to slightly
delay payments to suppliers and encourage faster
payments by company
customers. This can have
a negative impact on the relationship between Karya
Satria Advertisement and its suppliers
and customers. The right Financial strategy
has a crucial role for companies
during the COVID-19 pandemic, which allows companies to be able to meet liquidity needs, manage financial
risks, optimize capital structure, and maintain good relationships with stakeholders. This is in line with the
theory of Financial
management, which states that companies need to implement the right Financial
strategy to be able to optimize company
value and protect
the interests of all stakeholders (Brigham and Ehrhardt,
2013). According to this theory,
companies must be able to implement the right Financial strategy
in three important aspects:
determining the
right source of Financial, allocating existing funds, and determining the amount
of funds needed for company
needs (Gitman & Zutter,
2015).
Related to the aspects of proper allocation of funds and determining the amount of funding needed, the interview results
show that Karya Satria Advertisement has been able to carry them out well. However,
related to determining the source of Financial,
Karya Satria Advertisement needs to make quite basic improvements, namely by adding alternative sources
of Financial other
than bank loans.
Companies can explore Financial options through
venture capital or private capital investors.
In situations of economic uncertainty, venture capital investors and private investors may be interested in investing
capital in companies that have long-term growth
prospects. In addition to obtaining sources of Financial, companies can also take advantage of the knowledge,
experience, and network of investors. Research by Gompers & Lerner (2020) shows that venture capital
investment can provide easier access to Financial and contribute to
company growth.
Companies may consider
peer-to-peer (P2P) lending
or crowdfunding options.
Through P2P lending or crowdfunding platforms, companies can request
financial support from the general
public or individual investors. In a pandemic situation, this method
can be an attractive alternative as it can expand the Financial base and provide individuals with the opportunity to participate in supporting trusted
businesses. Studies by Belleflamme
et al. (2019) show that crowdfunding can be a significant source of Financial, especially for small and medium-sized companies.
Companies can consider
funding through government programs aimed at supporting
business sectors affected by the COVID-19 pandemic. Many countries have launched special economic stimulus
and financial assistance programs aimed at helping
companies during this crisis. Companies can apply for such assistance as salary subsidies, operational assistance,
or low-interest Financial. Research by Barrot
& Grassi (2020) shows that government assistance programs can have a
positive impact on company liquidity and help companies
survive during crises.
Companies can explore Financial options through
partnership agreements or strategic
cooperation with other parties. This can include joint ventures, strategic alliances, or lucrative sales agreements. Through partnerships with other parties, companies can gain financial support,
access to new markets, additional resources, or operational efficiencies. The study by Gulati et al. (2020) shows that strategic cooperation can be an important source of Financial, especially in the face of complex economic challenges such as the COVID-19
pandemic. Companies may consider the use
of alternative financial instruments such as corporate bonds, preferred stock,
or leasing. These instruments can
provide flexibility in Financial structures and reduce dependence on bank loans. Research by
DeYoung et al. (2020) shows that alternative
financial instruments can help companies obtain Financial on more
favorable terms and conditions during a crisis.
Conclusion
Three conclusions can be drawn from the discussion. First, Karya Satria Advertisement faced initial difficulties
due to the COVID-19 Pandemic, such as limited
funding and operational constraints. However, with strong adaptability
and support from customers and the company, they managed to overcome these challenges.
Second, complying with new government regulations helped Karya Satria Advertisement
improve its business condition amidst the pandemic. The company's commitment to quality services,
customer satisfaction, and support from suppliers contributed to its success.
Third, Karya Satria Advertisement achieved
remarkable sales growth despite the pandemic's
impact. However, the company still faced financial challenges relying solely on bank loans.
To address this, they can explore alternative financial sources like venture capital, P2P lending, government
programs, or strategic partnerships.
In conclusion, the negative impact
of the COVID-19 Pandemic on businesses can be
overcome with loyal customers, active management, and strong commitment. Future studies
can further explore
the influence of these factors
on company performance during the pandemic.
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Copyright holder:
Ronald Septyanto Suparta,
Liliana Inggrit Wijaya
(2022)
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First publication right:
Syntax Literate: Jurnal Ilmiah Indonesia
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