Business Strategy to Increase the Asset Value of Pt. Martheen House (Case Study: Land in Pattimura Airport, Ambon)

: PT. Martheen House is the owner of the Idle Assets in North Maluku, Ambon. Numerous project options exist in the vicinity of Asset Idle, including the Pattimura international airport in Ambon, the processing of raw materials from crushed stone, and the surrounding countryside. In addition to numerous project options, Idle Assets also has office space and a total fisheries asset and facility value of Rp 7,761,500,000. In this study, PT. Martheen House intends to devise a plan to raise the selling price of its assets. Alternative projects that boost the resale value of these assets will be analyzed and profitable project ideas will be selected. utilizing SWOT to determine the internal components of an organization PESTLE to study competitors to explain external elements from the company that must be open, Porter's Five Force to enable the company to overcome the underlying opportunities and dangers in the company's external environment. After performing a Feasibility Study to establish the alternatives and the US Index to determine the chosen resource, the corporation must maximize capital in the form of Equity, Debt, or both to determine which resource to select. The final step is to determine the internal financial position using Financial Ratio Analysis.The investigation reveals that the chosen alternative project is the crushed stone processing project for Rp. 2.035 billion, the Warehouse Project + small office for Rp. 8.787 billion, and the Transit Hotel Project for Rp. Using loans to finance the implementation of this alternate project is doable. Due to the company's internal financial predicament, it will implement the first alternative project selected, the crushed stone processing project.

There are features accessible for the home/small office: a. four bedrooms and an office b.two large rooms for conference purposes c. three restrooms d.The remaining is undeveloped ground that was previously utilized for brick manufacture.

Opportunities that exist in the surrounding area
The following picture depicts the benefits associated with the land:  The above-mentioned business issues center on how to transform idle assets into successful businesses so that the company's commercial expansion can go smoothly.Even if it operates smoothly and correctly, the company must consider how many investments it makes in order to persuade investors to invest in the company's expansion.

RESEARCH QUESTION
The following questions will be addressed by this research: 1. What are the best business opportunities for using idle land for enterprises expanding in Maluku? 2. What is the feasibility study on the chosen strategy?3. How much capital do companies need to invest in order to expand their business by effectively utilizing idle land?4. What is the best suitable funding strategy?

RESEARCH OBJECTIVE
The objectives of this study are based on the questions in the research question above: 1. Determine acceptable alternative solutions for the company's idle land utilization in business expansion.
2. Determine the feasibility of the chosen alternative business expansion strategy.
3. Determine the investment made available by the company.4. Determine an appropriate financial source to carry out the idle land use strategy in business expansion.

Investment
An investment is an asset or item purchased with the intention of generating income or appreciation (Nweze & Ejim, 2021).Income or appreciation comes in the form of a growing asset or item in which the investor initially invested.When investors buy assets (goods, a house, land, or a machine), they do not intend to consume the goods right away, but rather to generate wealth from those assets in the future.Furthermore, an investment project is a collection of activities that require capital resources, such as founding, purchasing, and expanding.Typically, the investor anticipates a profit or margin at the end of the investment project.However, if the investors lack sufficient knowledge of investment fundamentals and the area of their investment, an investment may go wrong and generate no profit.In today's market, investment failures are relatively common.
The majority of significant losses in businesses appear to be the result of unreasonable and ineffective investments (Aničić & Aničić, 2019).

Investment Feasibility
The business investment seeks to expand the company in order to generate more profit in the future.Furthermore, the feasibility study research provides information about the investment's worth and the benefits to investors (Firmansyah et al., 2006).The Net Present Value (NPV), Internal Rate of Return (IRR), and Payback Period are commonly used as indicators to determine whether an investment is feasible or not.Feasibility should be thoroughly prepared because it helps the entrepreneur make sound decisions by contributing to his or her evaluation of all possible outcomes (Gezer & Kingir, 2020).As a result, the feasibility study can be regarded as the first step prior to the execution of the investment project.The feasibility study reduces risk and ensures that the proposed investment is advantageous (Soraya et al., 2017).Furthermore, a thorough and accurate calculation of the feasibility study can reduce the risk of loss in the investment project.A feasibility study could provide an overview of the investor's money, how long it will return, and how much profit is expected.Although this feasibility study will cost money, it is a small price to pay when compared to the risk of investing (Yomina et al., 2021).As a result, it is preferable for a company to set aside a specific budget for a feasibility study before embarking on an investment project, especially when large sums of money are at stake.

SWOT Analysis
The Strengths, Weaknesses, Opportunities, and Threats analysis is a well-known method for examining market features.The SWOT Analysis, which is an acronym that stands for a firm's strengths, weaknesses, opportunities, and threats, is a tool that is used in business planning to analyze how a company stacks up against its rivals (Teoli et al., 2019).The process of conducting a SWOT analysis can also be viewed as an initial stage that a corporation goes through before making a decision.Opportunities and threats are concerned with external issues, whereas strengths and weaknesses are concerned with internal factors (current procedures, human resources, physical resources, and financial resources) (market trends, economic trends, political and economic regulations).

Financial Ratio Analysis
Financial ratios will be utilized in this study to evaluate the internal financial performance of the business.In this study, there are four different types of ratios: liquidity, debt, profitability, and activity. a.

Liquidity Ratio
The liquidity ratio will evaluate the company's capacity to repay short-term and long-term debts using current or quick assets.The liquidity ratio includes the current ratio and the quick ratio, although this study will only focus on the current ratio.

Current ratio
The current ratio is used to assess a company's capacity to meet its short-term obligations with current assets.A healthy corporation will most likely have a result greater than one.This occurs because assets outnumber liabilities.
Debt Ratio The debt ratio calculates the percentage of a company's resources that are financed by debt.It evaluates the scope of the company's leverage.Leverage has more ramifications than equity because it includes interest payments and other terms and conditions.In this study, two types of debt ratios will be used: 1.

Debt To Equity Ratio
The debt to equity ratio assesses a company's capital structure.It computes the weighted average of total liabilities versus shareholder equity.A high debt to equity ratio indicates that the company is leveraged.In contrast, a low result indicates that the company is conservative.
=   ÷   Debt To Assets Ratio The debt to asset ratio, like the debt to equity ratio, shows the proportion of a company's assets that are financed by debt.The higher the debt to assets ratio, the more liabilities are used to pay for the company's assets.
Profitability Ratio Profitability ratios assess a company's capacity to create income relative to revenue, balance sheet assets, operating costs, and equity over a certain time period.It demonstrates how the corporation uses its assets to maximize shareholder profit.Higher profitability ratios suggest greater efficiency and productivity in operating activities.The operational profit margin and gross profit margin will be evaluated in this study. 1.

Gross Profit Margin
The gross profit margin is the ratio of gross profit to sales revenue.This indicates how much a company earns after deducting the costs of producing its goods and services (Corporate Finance Institute, 2022).A high gross profit margin shows increased operational efficiency and the ability to meet operating expenses while also producing a net profit to the business.
Operating Profit Margin The operating profit margin is widely used to evaluate a company's management performance.Operating profit margin is the percentage of total revenue that is made up by operating income over a certain period.A high operating profit margin indicates competent management that is capable of significantly improving profitability by managing its operating costs.
Activity Ratio Activity ratios are used to determine how well a corporation uses its balance-sheet assets to produce revenue.

1.
Total Asset Turnover The Total Asset Turnover ratio is used to assess how well a company's total assets are being used to generate revenue.This ratio illustrates how a corporation uses its assets in its operational activities.The greater the value of Total Assets Turnover, the better the company's success in utilizing its assets to create sales.

PESTLE Analysis
PESTLE analysis is a tool for competitive analysis that elucidates organizational external factors such as political, economic, social, technological, legal, and environmental factors that impact the organization.PESTLE stands for Political, Economic, Social, Technological, Legal, and Environmental analysis (Simões E, 2019).The primary objective of the analysis is to develop general situations about organizational environmental drivers.These are situations that should be considered when an organization defines and implements a competitive strategy that may have an impact on the organization's environment.The analysis will be carried out in order to accomplish this primary objective.The PESTLE analysis is a crucial framework for companies to utilize in order to concentrate on the expansion process.This is because it is involved in the environmental screening component of the strategic management process.

Porter Five Force Analysis
The idea behind Porter's Five Forces Model, which includes "rivalry with existing competitors," "threat of new entrants," "power of suppliers and buyers," and "substitute products and services," is that an organizational strategy ought to address the opportunities and threats that are inherent in an organization's external environment (Bruijl, 2018).Michael E. Porter of Harvard Business School established the five forces model in 1979.This model explores five separate factors that determine whether or not a business may be profitable in comparison to other businesses operating in the same industry.It is essential for a firm to have a solid understanding of its rivals' products, services, and marketing strategies in order for it to continue existing in the market According to the research results of a feasibility study analysis conducted on the three alternative projects that offer the greatest potential for advancement in the northern Maluku region, the project involving the processing of crushed stone comes in first, followed by a warehouse and a small office, and then by a transit hotel as the third and final option.

Activity Ratio
Total Asset Turnover 0.17 0.46 0.73 The crushed stone processing project that creates the best financial ratio for the implementation of the selected business is the first choice based on the results of the financial ratio analysis performed on the selected project; the second choice for the project was a warehouse including some modest offices, and the hotel was the final option.

3419 Figure I. 3 - 1 1 Figure I. 3 - 2 2 .
Figure I.3-1The terrain shape as shown on Google Earth 1 1 in the graphic below depicts the extraction area for the crushed bridging load and sand used as the major ingredient of concrete, which is used to construct roads and structures.The opportunity from here is to process crushed stone.b.Number 2 in the image below depicts the Pattimura International Airport, which is approximately one kilometer away from land assets that might be used as warehouses, small offices, or transit hotels.c.Number 3 in the image below depicts a rural region of Hatu Village; this possibility can be used to develop housing.

Figure I. 2 - 3
Figure I.2-3 Opportunities that exist in the surrounding area

Table III .5-2
Financial Ratio Analysis on the Selected Project