Risk in Jakarta Bakery
Company Profile
Jakarta Bakery was established on 1924. This company was produced traditional bread. . The shop located in Jlagran Lor Street no 7. Before they moved to Jlagran Lor, this company was opened their shop in the Poncowinatan no 11. The first shop on 1924 was in the Malioboro Street. The owner of Jakarta Bakery is Hari Purwanto. This company has 8 employees. 5 people for the production and 3 people for serve the consumer.
Description of the business
It produces “Tawar” bread, sweet bread, and pastry bread. The other cake that Jakarta Bakery makes is “sus kering”, “lidah kucing”, “baqelen” and cheese chips. The other is the deposit from the people outside. The company is different from other because it makes traditional bread.
The process to make the traditional bread, it takes time until 12 hours. It makes the seed for bread. After that we developed it and give egg and butter for the dough. The dough divided to the different types and gives it with souses or banana inside the dough. The dough is in roast. After we oven the dough we can package and sell it.
In 1 day, this company can make 25 kilogram dough. The total cost for the production in one day is around more than 1 million. But the revenue 50 percent from the total production cost.
Risk of the Business
- Types and Sources of the Risk
- Hazard risk in Jakarta Bakery is when the company has possibility of damage because fire or earthquake. Hazard risk also comes from product return.
- Financial risk in Jakarta Bakery is come from the price that influence because of the commodity. Commodity price that fluctuate is sugar, butter and egg. The flour is stable.
- Operational risk in Jakarta bakery is come from the labor that can’t do the job well because they absent and also come from the machine to make the bread. If the machine broken and the labor or human resource was absent so the production of the bread can’t maximize.
- Strategic risk in Jakarta Bakery happens because they have many competitors such as Breadtalk and Parsley. When he opens the shop in Malioboro, Bakery Company only Jakarta and Jun company that produced bread.
- Market risk in Jakarta bakery is when the company increases their price so it will influence the customer to buy the product.
- How do The Company Manage The Risk
To minimize the risk for the building, this company has the insurance for fire. In the first time he only has fire insurance but after the earthquake they add the insurance with the earthquake. For the product return he will dry the bread.
From the operational risk, they minimize it with having more than 1 machine. For example for shake the dough, he has two machines and has 3 ovens. And for the machine this company also does the maintenance but only 2 times in one year.
For the competition with other company this company have own characteristic. This company produces traditional bread that doesn’t use developer and preservative. So it make different from the product and processes.
For the price that very influence the customer, this company try to manage it with only once times increase the price. The price will increase in the beginning of the Ramadan. And the price only increases 10 percent from the original price, so the customer can still buy it
CONCLUSION
Although this company has many risk but it can manage or minimize it. So this company can get maximum profit. Although they can manage the risk but it still monitors the management of the risk.
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