Analysing The Wood Industry In Indonesia Commerce Essay

Indonesia, as universe ‘s largest archipelago, has tonss of natural resources. Among those natural resources, wood is one of the biggest natural resources merchandises of Indonesia, which besides contributes a great amount of income for Indonesia. Wood is one of the most of import natural merchandises and about one tierce of universe ‘s land countries are covered by woods that contain a entire growing in the supply of wood around 300,000 million M3. ( Steinlin, 1979 ) .

The Ministry of Forestry has classified 75 % of the land country as being within forest boundaries. This equates to 144 million hectares, where 34 % is designated for protection and National Parks, and 21 % is designated for transition to other utilizations. The staying 45 % is managed for lumber and other forest merchandise production.

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Dutch east indies has at least 19 different forest types including coastal woods on beaches and dunes ; tidal woods such as Rhizophora mangles, nipah, and thenar ; heath woods associated with hapless sandy dirts ; and peat, swamp, wetland, evergreen, bamboo, savanna and montane woods. Of the 4,000 species of trees in Indonesia, merely 120 hardwood species are recognized as being suited for commercial usage. Of these, approximately 48 are used in the plyboard industry.

Indonesia has 10 % of the universe ‘s tropical woods, 60 % of Asia ‘s tropical woods, and a important proportion of the universe ‘s staying virgin bases. These woods are place to huge Numberss of animate being and works species and people. Thus their value is well greater than merely their ability to bring forth wood and associated wood merchandises.

Thousand old ages ago, people were utilizing wood merely for fuel and tools but nowadays its map has grown into an even more valuable portion of homo ‘s lives. For case, wood is now used as: natural stuffs for fabricating wood coal ( used in Fe smelting ) , K ( in the industry of glass ) and besides natural stuffs for paper, movie and other merchandises. In this modern country, wood besides utilized as furniture.

PT Barito Pacific Tbk is an Indonesia-based incorporate wood company. It holds more than 400.000 hectare of Forest Concessions Rights and over a 100.000 hectare Concessions for Industrial Forest in assorted part in Indonesia. Since its presence in 1983, Barito Pacific become widely recognized and has a reputable name in the forestry sector in Indonesia. The Company ‘s merchandises include plyboard, block boards, particleboards, phenolic film-faced plyboard, sawn lumbers, woodworking, panels, procedure panels, doors, furniture parts and handcraft.

The Company has 17 subordinates which are engaged in the petrochemical, wood fabrication, wood plantation, gum, and plantation industries. The Company is supported by production installations located in Banjarmasin.

KettenWulf GmbH is a mid-sized company which has been owned by the same household for three coevalss. It has grown and go one of the universe ‘s prima makers of conveyer concatenation, thrust ironss and sprockets. This company was established in Kuckelheim, Germany in 1925.

Kettenwulf GmbH merchandises are used in assorted industries worldwide and one of its industries is wood industry. Range of merchandises offered by KettenWulf in wood industry are log conveyance, plank conveyance and sawing line, woodchips managing, and wood processing. Presently, this company has more than 10 production and distribution location universe broad such as: Germany, Austria, Belgium, People Republic of China, Japan, Poland, USA, France and India.

After admiting the growing of wood industry, the company has planned to spread out its concern in Indonesia. Hence, this research survey is intended to help the company in analysing Indonesia ‘s wood industry through spread outing scheme creative activity and market entry analysis.

1.2 Research Purpose

The intent of this research paper is to supply a complete cleavage analysis including SWOT analysis, rival analysis wood cleavage industry analysis and market analysis to develop the appropriate concern scheme.

1.3 Research Problem

There are three jobs to be addressed:

1.3.1 Current market and rival analysis, which is explored utilizing the environmental analysis, i.e. SWOT Analysis

1.3.2 Segmentation state of affairs

1.3.3 Obtain complete information sing contraptions used within wood industry in Indonesia

1.4 Significance of Study

This thesis will supply a necessary counsel for KettenWulf GmbH to make the appropriate expand scheme in Indonesia.

1.5 Research Questions

Question # 1: What is the state of affairs and status of the wood industry users in Indonesia?

Question # 2: What type of contraptions used by wood industry in Indonesia? Its rivals

Question # 3: What are the users ‘ outlooks sing to the KettenWulf merchandise contraptions?

Question # 4: What might be the Risk Management needed by the company to research this section market? So make the fiscal theoretical account?

1.6 Research Restrictions

In carry oning this research, there are some restrictions that occur and may be needed to be considered towards the concluding consequence. First, this thesis is a research undertaking, hence there will be no hypothesis, merely replying the research inquiries. Second, there is merely few wood industry users in Indonesia, for this ground, the research worker will merely take 10 wood industry users to be interview, which are 5 from big industry and the remainder, will be from intermediate industry.

The last 1 is sing the information. Since this thesis is a research survey, the informations will be obtained from interview the representative from each industry or company and sometimes the representative seldom tell the truth reply and the location of most of wood industry are located in Kalimantan Island.


Marketing Research


Marketing Research plays an indispensable function in interpreting informations into utile information and besides helps directors make better determinations in any of their countries of duty. Market research is defined as the aggregation and scrutiny of information about things that people buy or might purchase and their feelings about things that they have bought. ( Cambridge Advanced Learner ‘s Dictionary )

In order to cognize the demands and wants of client, consumer and public, market research must be conducted, so that sellers would non lose their concern chance as they get the information they need. Information is utile to place market chances and job, hence to advise the sellers what to make and besides to supervise selling public presentation. Information is generated through market research, which will be passed to the seller.

Therefore, overall, it can be known that market research is taking an indispensable portion as it would move as a span between client, consumer, public and the seller ( Churchill and Iacobucci, 2005 ) .

Nathan birnbaums and Bush ( 2005 ) besides defined marketing research as a tool to work out jobs by planing, garnering, analysing and describing information.

Harmonizing to Kotler and Armstrong ( 2008 ) selling research is used to assist sellers understand client satisfaction and purchase behaviour.


The intents of selling research are:

1. To obtain a elaborate and better apprehension of the consumers ‘ demands

2. Reduce the hazard of concern failure

3. Forecast future tendencies

2.1.3 Marketing research offer several benefits such as:

1. Market research provides elaborate information about the clients in a assorted ways such as age, gender, and demographic information.

2. By making market research, we can place our mark market and besides the merchandises and services that fit into our mark market.

3. Market Research will help you to vie with you rivals. Then it helps us to place our strengths and failings and besides our rivals.

2.1.4 Marketing Research can be used to detect information about:

Market size and consumer gustatory sensations and tendencies.

The merchandise and its sensed strengths and failings.

Rivals and their claimed alone merchandising propositions.

SWOT Analysis

SWOT, which is an abbreviation of Strengths, Weaknesses, Opportunities, and Threats, is a methodological analysis used to placing the company ‘s place, compared to its rivals. This analysis can besides assist investors to make up one’s mind whether their investings are good placed. To accomplish the company ‘s aim, SWOT analysis involved two factors, which are internal and external factors. Internal factors consist of the strengths and failings of the organisation. On the other side, the chances and menaces are including in external factors.

2.2.1 SWOT procedure

This type of analysis is stipulating the aim of the concern or company ‘s aims and placing the internal and external factors that are favourable and unfavourable to accomplishing that aim.

Internal factors include the strengths and weaknesses internal to the organisation.

External factors include the chances and menaces presented by the external environment to the organisation.

2.2.2 Conduct SWOT analysis

The basic technique to carry on SWOT Analysis is by pulling four columns or boxes, each for Strengths, Weaknesses, Opportunities and Threats. A SWOT analysis must first start with specifying a coveted terminal province or aim. It analysis may be incorporated into the strategic planning theoretical account.

Strengths: properties of the individual or company that is helpful to accomplishing the aim ( s ) .

Failings: properties of the individual or company that is harmful to accomplishing the aim ( s ) .

Opportunities: external conditions that is helpful to accomplishing the aim ( s ) .

Menaces: external conditions which could make damage to the aim ( s ) .

Figure 2.2.2. SWOT Analysis diagram

Souce: hypertext transfer protocol: // Strengths

As it shows in Figure 2.2.2, the first column is Strengths. This includes internal capablenesss, resources, and positive situational factors that will help the company to accomplish their ends. ( Kotler, Armstrong, 2008 ) . This factor will assist the company to vie with their rivals by placing what are their authority and high quality that their rivals do n’t hold. Failings

This internal factor can be seen as negative factors. Kotler and Armstrong defined this factor as an internal restrictions and negative situational factors that may halter the company ‘s public presentation. It is non easy to accept that the company has failings but it is of import in the concern therefore the direction can get the better of the failings by making some betterment. Reuvid, 2006, said that “ It ‘s a good thought to acquire an outside position on what your failings are as your ain perceptual experiences may non ever aline with world. ” Opportunities

This factor is the possible countries for enlargement of the concern. Figure 2.2.2 shows that this factor will assist the company but from outside or company ‘s environment. For illustration: technological developments, alterations in market tendencies. Menaces

The last factor is analysing menaces. Some menaces are touchable such as a new rival near company ‘s country. This factor comes from external factors and harmful for the company. A alteration in authorities economic policy is one of the illustrations of concern ‘ menace. Threats present challenges to company ‘s public presentation.

The Goal of SWOT analysis is to fit the company ‘s strengths to attractive chances in the environment, while extinguishing or get the better ofing the failings and minimising the menaces. ( Kotler, Armstrong, 2008 )

2.3 Indonesia Forestry Policies

The National Forest Policy of Indonesia, in common with all development, is based on:

Pancasila, the Five Philosophical Principles of the state ;

The 1945 Constitution ;

Guidelines of province policy set out each five old ages under the National Development Plans ;

The directives of the President ; and

The Kaliurang declaration of 1966 on sustained output.

The purpose of these protections is to develop and protect Indonesia ‘s forest for national development, ecological balance, publicity of industry and preservation of the environment. The end is to steer forestry activities in back uping national development.

National Forestry Action Plan ( NFAP ) was developed by The Ministry of Forestry to pull off and direct the forestry ends with the five old ages economic programs ( Repelitas ) . For illustration, from Repelita I through IV ( 1969-1989 ) , the long term national ends were:

To open up the outer islands for forestry development ;

Rapid development of forest-based industries ;

To accomplish market power in its wood merchandises.

Repelita V ( 1989-1994 ) saw accent move more towards sustainable development, including the undermentioned commissariats:

Limits on log extraction to 31-32 million M3 per twelvemonth ;

Improved forest reviews, including the usage of aerial picture taking and satellite engineering ;

No new sawmill or plyboard factory licenses ;

Loging and treating activities to be integrated – as concessioners with big investings in treating equipment have greater inducement for sustainable direction ;

Reforestation revenue enhancements increased by 150 % , and a new export revenue enhancement on sawn lumber has reduced sawn lumber exports and forced the closing of inefficient industries ;

Constitution of a new Directorate of Extension to promote citizen engagement in preservation direction in concurrence with forestry functionaries ;

Improved preparation of forestry forces in preservation and forestry direction.

Repelita VI ( 1995-1999 ) further modified the focal point of forestry which is expressed in the state ‘s Forest Action Plan. The Plan proposes 9 programmes which include:

Conservation of populating natural resources and their ecosystems ;

Land usage and forest stock list ;

Forest protection ;

Soil and H2O preservation ; betterment of natural forest direction ;

Improvement of forest land productiveness and constitution of industrial plantations ;

Improvement of the efficiency of forest based industries ;

Promotion of people ‘s engagement in forestry development ;

Institutional and human resources development.

The 1945 Fundamental law

Law No. 5 of 1990 refering Conservation of Living Resources and their Ecosystems

Law No. 24 of 1992 refering Spatial Planning

Law No. 5 of 1994 refering the Ratification of the United Nations Convention on Biological Diversity

Law No. 23 of 1997 refering Environment Management

Law No. 41 of 1999 refering Forestry ( this jurisprudence replaces Act No. 5 of 1967 on Basic Forestry Law )

Law No. 22 of 1999 refering Regional Governance

Law No. 25 of 1999 refering Fiscal Balance Between the Centre and the Regions

Government Regulation No. 33 of 1970 refering Forest Planning

Government Regulation No. 25 of 2000 refering Government Authority and Provincial Authority as an Autonomous Region

Government Regulation No. 51 of 1993 refering Environmental Impact Analysis

Government Regulation No. 28 of 1985 refering Forest Protection

Government Regulation No. 7 of 1999 refering Preservation of Flora and Fauna Species

Government Regulation No. 8 of 1999 refering the Use of Speciess of Flora and Fauna

Government Regulation No. 25 of 2000 refering Government Authority and Provincial Authority as an Autonomous Region

Government Regulation No. 84 of 2000 refering Guidelines for Regional Organization

Government Regulation No. 39 of 2001 refering Execution of De-concentration

Government Regulation No. 4 of 2001 refering Control of Environmental Degradation and Pollution in Correlation with Forest & A ; Land Fires

Presidential Decree No. 32 of 1990 refering the Management of Protected Areas

Government Regulation No. 34 of 2002 refering Forest Compartment and Forest Management Plan, Forest Exploitation and Forest Area Utilization

Government Regulation No. 35 of 2002 refering Reforestation Fundss

Table 2.3 Relevant Torahs and ordinances for the Indonesian wood policy.

Beginning: Chrystanto, Justianto, Ministry of Forestry Indonesia.

2.3.1 Problems

The recent job sing to Indonesia forest are illegal logging and illegal trade. Both are the consequence of assorted human interactions in pull offing forest resources. Therefore, in order to battling both illegal logging and illegal trade, integrated attacks and the engagement of all stakeholders and concerned parties are indispensable.

2.3.2 International Duties

Indonesia has ratified a figure of international understandings related to forestry such as the Convention on Climate Change ( CCC ) , the Kyoto Protocol, the Convention on Biological Diversity ( CBD ) , etc.

2.4 United Nations Framework Convention on Climate Change

The United Nations Framework Convention on Climate Change ( UNFCCC ) is besides known as the Earth Summit. It was initiated in 1990 by the United Nations. In 1992, 154 states signed the UNFCCC in Rio de Janeiro from 3 to 14 June 1992, but now the members of UNFCCC are increasing to 192 states. The aim of the pact is to stabilise nursery gas concentrations in the ambiance at a degree that would forestall unsafe anthropogenetic intervention with the clime system. ( hypertext transfer protocol: // )

The members of this convention have yearly run intoing since 1995. This meeting called Conferences of Parties ( COP ) and the purpose is to reexamine the advancement in covering with clime alteration. In 1997, the Kyoto Protocol was concluded and established lawfully adhering duties for developed states to cut down their nursery gas emanations. ( http: //

2.4.1 Conferences of the Parties

Delegates from all the members ‘ states gathered in this convention, which is the Conference of the Parties ( COP ) yearly to reexamine the effects of the enterprises taken by Parties and discourse how the convention ‘s aims can best be implemented. COP is responsible to maintain the international attempts to cover with clime alteration. Furthermore, it besides examines the national communications and emanation histories submitted by the Parties.

Kyoto Protocol, which negotiated for developed states to cut down their nursery gas emanations, is the first understanding that the Parties have agreed upon. The Conferences have met in concurrence with Meetings of Parties of the Kyoto Protocol ( MOP ) , and parties to the Convention that are non parties to the Protocol can take part in Protocol-related meetings as perceivers. COP Presidency will alter among the five recognized UN parts, so doest the COP locale.

1995 – Bull 1, The Berlin Mandate

This is the first UNFCCC Conference of Parties that held in 1995 in Berlin, Germany. It voiced concerns about the adequateness of states ‘ abilities to run into committednesss under the Convention, which is known as the “ Berlin Mandate ” . It established a 2-year Analytical and Assessment Phase ( AAP ) , to negociate a “ comprehensive bill of fare of actions ” for states to pick from and take hereafter options to turn to clime alteration which for them, separately, made the best economic and environmental sense.

1996 – Bull 2, Geneva, Switzerland

1997 – Bull 3, The Kyoto Protocol on Climate Change

In December 1997, the 3rd COP 3 took topographic point in Kyoto, Japan, and came into force on February 16, 2005. As of November 2009, 187 provinces have signed and ratified the protocol. ( hypertext transfer protocol: // ) .

It is besides known as Kyoto Protocol. The chief end of Kyoto Protocol is that it sets marks for the 37 industrialised states and the European Union states to diminish their emanations from six nursery gases ( C dioxide, methane, azotic oxide, sulfur hexafluoride, hydro fluorocarbons and PFCs )

To assist the Parties meet their emanation mark in a cost-efficient manner and excite green investing, Kyoto Protocol offers them three market-based mechanism, they are:

Emissions trading

Clean development mechanism ( CDM )

Joint execution ( JI ) .

1998 – Bull 4, Buenos Aires

1999 – Bull 5, Bonn, Germany

2000 – Bull 6, The Hague, Netherlands

2001 – Bull 6, Bonn, Germany

2001 – Bull 7, Marrakech, Morocco

2002 – Bull 8, New Delhi, India

2003 – Bull 9, Milan, Italy

2004 – Bull 10, Buenos Aires, Argentina

2005 – Bull 11, Montreal, Canada

2006 – Bull 12, Nairobi, Kenya

2007 – Bull 13, Bali, Indonesia

As the member of UNFCCC, Indonesia got an award to go the host of 13th COP that took topographic point in Bali, Indonesia. It was held on December 3 until December 15, 2007. This convention talked about the timeline and structured dialogue on the station 2012 model that was achieved with the acceptance of the Bali Action Plan. In this convention, The Ad Hoc Working Group on Long-term Cooperative Action ( AWG-LCA ) was form as a new subordinate organic structure to carry on the dialogues aimed at desperately heightening the execution of the convention up to and beyond 2012. These dialogues took topographic point during 2008 ( taking to COP 14 in Poland ) and 2009 ( taking to COP 15 in Denmark )

2008 – Bull 14, PoznaA„ , Poland

2009 – Bull 15, Copenhagen, Denmark

The recent COP was held in Copenhagen, Denmark from 7 December to 18 December 2009. The COP 15 end was to regenerate the planetary clime understanding for the period from 2012 since the first understanding under the Kyoto Protocol expires.

In order to forestall planetary heating and clime, the UNFCCC and Danish Government was seting large attempt to success this convention because this Climate Conference in Copenhagen is indispensable for the universe ‘s clime. The 15th COP was an extraordinary event that that involved Numberss of engagement and resulted in:

Attendance by 120 Heads of State and Government, raising climate treatments to a new degree.

Record Numberss of participants including 10,500 delegates, 13,500 perceivers, and coverage by more than 3,000 media representatives

Intensive dialogues characterized by over 1,000 functionaries, informal and group meetings among Parties. Perceivers discussed clime alteration in more than 400 meetings and media attended over 300 imperativeness conferences.

A vivacious programme of over 200 side events.

Over 220 exhibits from Parties, UN, IGOs and civil society

A sum of 23 determinations adopted by the COP and the CMP

The delegates from each participant ‘s state have to province what actions they will suggest to take if the understanding was achieved. And so does Indonesia, it stated that Indonesia will seek cut down C emanations by 26 % by 2020, based on business-as-usual degrees. With enhanced international aid, President of Indonesia Dr. Yudhoyono offered an increased decrease of 41 % by 2020, based on business-as-usual degrees. ( Nicholas Stern, 2009 )

The Climate Conference in Copenhagen is organized in cooperation between the Ministry of Climate and Energy, Ministry of Foreign Affairs, Ministry of Science, Technology and Innovation, Ministry of Finance and the Prime Minister ‘s Office.

2010 – Bull 16, Mexico

COP 16 is expected to be held in Cancun, Mexico from 29 November 2010 to 10 December 2010.

2.5 The Forest Dialogue ( TFD ‘s Dialogue on Practical Actions to Combat Illegal Logging, 7-10 March 2005 – Hong Kong, P.R. China )

The Forest Dialogue is the first Dialogue that can garner 120 leaders from concern, civil society and authorities to do an understanding to contend against illegal logging in Asia and around the universe. Both companies and authorities are agreed to take duty to guarantee that the wood and paper that they purchase are legal.

The highest precedence of this Dialogue is to guarantee that no wood is sourced illicitly from National Parks and militias or stolen from local communities and private landholders. Priority actions emerging from the Dialogue include the followers:

Collaborate to beef up of import bing confederations to battle illegal logging, such as:

The Conservation International/ American Forest and Paper Association Alliance to Combat Illegal Logging in Protected Areas.

The Global Forest and Trade Network led by WWF.

The World Business Council for Sustainable Development / WWF joint docket to battle illegal logging

Use experience gained from ongoing partnership to develop agreed, auditable, practical national legality criterions to speed up advancement toward similar criterions in other states with a high-risk of illegal logging.

Make a simple, believable, independent and nonsubjective evaluations system that can be applied to place bad states and three species. Such a system would assist forest merchandises companies, retail merchants and clients, every bit good as investors, creditors and insurance companies, to cut down hazard of back uping illicitly sourced, harvested or traded wood merchandises through their wood and paper purchasing and fiscal services. This could in turn lead to development of a evaluation system for companies.

Encourage companies to utilize advanced engineering for wood trailing and portion best patterns to better their supply concatenation direction, cut down costs, and help them to in guaranting that illegal sourced, harvested or traded wood does come in their supply ironss.

The participates of this Dialogue came from Companies and Non-Governmental groups such as IKEA, Axel Springer Verlag, APRIL, International Paper, Weyerhaeuser, HSBC, ASRIA, Sumalindo, SGS, Stora Enso, Mondi, Tetra Pak, Nippon Paper, Oji Paper, The Nature Conservancy, WWF, World Business Council for Sustainable Development, Conservation International, Greenpeace, Environmental Investigation Agency, Friends of the Earth, Telapak, Tropical Forest Trust, WALHI, CIFOR, and The World Resources Institute.

The subject of this meeting was about the shackle attempts to battle illegal logging such as weak administration, corruptness, hapless jurisprudence enforcement, struggle, ill-defined belongings rights and low investing in preparation and direction of public bureaus. The meeting called on Governments Urgently to Lead Attempts.

To assist construct governmental leading there are several precedence actions agreed:

The Forest Dialogue will direct a little deputation of concern and civil society leaders to run into with Ministers and other top functionaries in cardinal capitals in Asia, Europe and beyond to portion the consequence of this meeting and impulse conjunct attempt.

Calls for action will be communicated at of import approaching intergovernmental meetings including this followers:

G8 Meeting of Ministers of environment and development in England March 17-18.

The United Nations Food and Agriculture Organization ‘s Committee on Forestry March 14-18.

The United Nations Forum on Forests in New York May 16-27.

The G8 Heads of State Summit in Scotland in June.

The East Asia FLEG Task Force meeting in September in Manila, and the North Asia and Russia FLEG Ministerial meeting in November in St. Petersburg.

Cardinal authorities functionaries who participated in the duologue called for greater partnership with industry and civil society. All authoritiess present committed to follow up to beef up such partnership shortly.

Government represented at the meeting included the Peoples Republic of China, Malaysia, Japan, Indonesia, the Philippines, United States of America, United Kingdom, Sweden, Russia and the European Union. During this meeting, the functionaries from China, Indonesia and Malaysia agreed to work more closely together to cut down the trade in illegal wood between their states. ( )

Chapter 3 – Methodology

3.1 Research Process and Problem Formulation

In planing any research undertaking, researcher needs to specify a sequence of stairss, which is called research procedure. These stairss in research procedure can be seen in the undermentioned figure:

Figure 3.1 Relationships among the Stages in the Research Procedure

Beginning: Churchill, Jr. A. & A ; Iacobucci, D. 2005, Marketing Research: Methodological Foundation, Thomson – South-Western, Ohio.

As it shown in the figure 3.1 above, the research procedure starts with formulate the job, and so determines the research design. After those two stairss, the research procedure continues with planing the information aggregation methods and signifiers, planing the sample and roll up informations and of class analyzing and construing the information. Finally, fix the research study.

The basic measure in the research procedure is to explicate the job to be solved. In this survey, the job to be solved is to ease KettenWulf GmbH in footings of expand their concern and happen out the status and state of affairs of wood industry in Indonesia. This survey will besides supply a necessary counsel for KettenWulf GmbH to make the appropriate expand scheme in Indonesia.

After formulate the job, so this job preparation can be used to develop the 2nd stairss of research procedure, which is finding the research design.

3.2 Research Design

Research design is a model for a research as a usher to garner and analyse informations. Research design is classified into three classs: Exploratory research, Descriptive research and Causal research.

Research Objective

Appropriate Design

To derive background information, to specify footings, to clear up jobs and hypothesis, to set up research precedences


To depict and mensurate selling phenomena


To find causality, to do “ if-then ” statements


Table: 3.2.1 the Basic Research Objective and Research Design

Beginning: Burns, Alvin C. & A ; Bush, Ronald F. 2005, Marketing Research: International edition.

3.2.1 Exploratory Research

Most research workers are normally use explorative research to derive information sing the research job. Exploratory research helps to specify footings and constructs.

The types of exploratory research used in this research are in depth interview, literature research and observation.

In Depth Interview

In Depth Interview involves figure of persons who will be assigned as the respondents. The occupation of respondents is non hard really, because they merely have to sit down and move candidly on peculiar thought, plan or state of affairs offered by research worker. After that, researcher would research the reaction, attitude, position, and behaviour of them which would stand for the mark clients in the market. Through making this intensive interview, seller would decrease the opportunity of misinterpreting the position of client, so they can see carefully whether this thought would be successful or non in the market.

Normally, it is a face-to-face interview which involves one interviewer and one letter writer. In Depth Interview offers several benefits, such as elaborate information and besides relaxed atmosphere to roll up information. This interview is appropriate to roll up elaborate information about a individual ‘s ideas and behaviours or research some job in deepness.

In this research, research worker will make an in deepness interview with KettenWulf representative to acquire company ‘s item information and information, besides grounds why this company want to spread out their concern in Indonesia. In other manner, research worker will besides make an in deepness interview besides with the wood industry users in Indonesia.

There will be 10 industries to be interviewed, where five industries from large industry and the other five is from in-between industry. The intent is to place the status and state of affairs of wood industry in Indonesia. As it explains before, by making this interview, research worker will derive batch and item information sing the research.

Literature Research

The external informations collected from The Ministry of Indonesia Forestry, libraries, book shops and besides internet such as books, article and other related written information. These informations will back up this research by provide the background and basic information of the research job. For case, Indonesia Forestry Ministry provides information about the natural resources in Indonesia, particularly in this research is wood. As good book and articles that related to wood industry and KettenWulf GmbH. Observation

To finish this research, relevant informations are necessary needed to back up this research. Therefore, research worker will obtain informations from both KettenWulf GmbH and besides the users of wood industry in Indonesia. Besides in deepness interview, to back up the informations and cognize more about the state of affairs and status of wood industry in Indonesia, research worker will make an observation by visits five large wood industry and five in-between wood industry users in Indonesia.

3.3 Data Collection Method

3.3.1 Primary Data

Primary information is an original informations assemblage from people within the mark market. These people are called ‘first-hand ‘ informations as they are being collected by the organisation for the first clip for its ain demands. To collected primary information for this research, the research worker will make an in deepness interview to several parties, in this instance, participants in wood industry. The user of wood industry ‘s satisfaction and outlook sing their company ‘s contraptions will be analysing through the interview.

3.3.2 Secondary Data

Secondary informations are referred as ‘second manus ‘ informations which means that the usage and analysis of informations already exist but for a different intent. The secondary beginnings for the research are obtained from books, newspaper, and company ‘s records to back up the primary informations. These informations will include the current market status of wood industry and the users ‘ background in Indonesia. Besides back uping the primary informations, secondary informations besides clip and cost economic systems.

Sample Design for Data Collection

There are six stairss in pulling a sample as it explains in the figure 3.4 below. The first measure is specifying the mark population. In this research, the mark population used to roll up the primary informations is persons who are the representative of wood industry users in Indonesia.

This survey will utilize the sampling frame of 10 wood industry users, where five of it is from large industry and the other five is from in-between industry. The following measure until terminal is called proof and at the terminal there will be a list of inquiry to be asked in the in deepness interview between research worker and the representative of the wood industry to roll up the primary informations.

Figure 3.4 Six-Step Procedures for Pulling a Sample

Beginning: Churchill, Jr. A. & A ; Iacobucci, D. 2005, Marketing Research: Methodological Foundation, Thomson – South-Western, Ohio.

Datas Analysis

The information to be analyzed in this measure is the wood industry user ‘s satisfaction and outlook sing the contraptions that they use now. The informations are processed utilizing likert graduated tables.

Figure 3.5 Likert Scales


Likert graduated table is a method of construing quantitative informations into qualitative informations. Normally, likert graduated table has five possible picks which are strongly agree, disagree, impersonal, agree and strongly hold. Harmonizing to figure 3.5, the picks goes up from figure one, which is strongly disagree to figure 7, strongly agree.


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