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Business Case

In: Business and Management

Submitted By metaholix
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INSTITUT TEKNOLOGI BANDUNG

School of Business and Management
INDONESIABUSINESSCASECENTER (IBCC)

LB LIA Buahbatu:
Surviving in a Harsh Environment

It was a bright Monday morning on January 2011 when Iwan enters his office room. In his desk there is a consolidated report of the LB LIA branch performance during the previous year. When he read the report he let out a silent sigh, his fear has turn into a reality. The amount of enrolled student has dropped again, and since the primary source of income for an English course such as LIA is the course fee paid by students that means net profit has dropped as well.

Iwan has become the branch manager of the LB LIA Buahbatu branch for more than 15 years. The branch was open in 1990; in the early days acquiring potential customers is easy, just by doing promotion using pamphlet, banner, and brochure students already lined up during the placement test date. At some point LIA Buahbatu even have to decline a student application to enroll because there is no more available space. Sadly this situation does not last forever. Since 2001 – 2010 LIA Buahbatu experienced a steady decline in the amount of enrolled student. Compared to 2001 the amount of student in 2010 has dropped up to 36%, and since the primary source of income for an English course such as LIA is the course fee paid by students that mean net profit has dropped as well, in 2010 the net profit for LIA Buahbatu has declined up to 32% compared against 2001.

This case was written by Akbar Firdaus under the supervision of Dr. Ir. Mustika Sufiati Purwanegara, MSc from School of Business and Management – Institut Teknologi Bandung. It was prepared solely to provide material for class discussion. The author does not intend to illustrate either effective or ineffective handling of a managerial situation. The author may have disguised certain names and other...

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