The Covid-19 coronavirus pandemic has suddenly triggered a global health crisis, large numbers of human lives continues
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The Covid-19 coronavirus pandemic has suddenly triggered a global health crisis, large numbers of human lives continues to be tragically lost until today. There is still deep uncertainty on how the Covid-19 vaccines can be realized to be immediately deployed and effectively used to defeat the disease. This pandemic has also tremendously challenged the global business community, damaging severely both in economic and social context. The impact of the restraints in social interaction and strict lockdown measures used to contain the pandemic outbreak, triggered a sudden collapse of the economic activity. Other than the few essential critical services and businesses, most businesses had to suspend activities whilst people were forced to stay home. It is inevitable that the number of business failures have drastically increased. Paradoxically there are also a number of businesses that have endured during this pandemic period. One such case is within the food processing industry, namely in the frozen foods sector as well other downstream food processing business offering value-added products enhanced home cooking process up to Ready Meals. These trends have been carefully been observed by the management of PT. Mega Food Tbk. This company started from a small, family-run business, focusing in raising chickens to produce poultry and eggs. In its development over the last four decades PT. Mega Food has since expanded in terms of both their scale and market reach as well as through vertical integration and product differentiation into the processed poultry product lines. They are now able to offer a variety of frozen chicken meat and processed chicken products such as Chicken Nuggets, Chicken Meatballs, Chicken Strips, Chicken Wings and Chicken Loaf. Presently PT. Mega Food owns 5 production plants strategically located around 4 of the largest cities in Indonesia. This is further supported by solid distributor and reseller network covering the entire span of Indonesia. PT. Mega Food management team is currently lead by Mr. Surtono. Besides serving as the CEO, being the third generation member of the Surtono family who founded the company he is also a major shareholder of the company. He is seen as a very capable leader and has been credited for the successful execution of highly complex and strategic initiatives of the company. Leading the company not only during the transition from second to third generation ownership, but also the further the transition from a private to a public company through IPO and indirectly as public company, increased transparency and credibility of PT Mega Food management. The company intends to further seek further avenue of growth, by advancing downstream and to expand its product lines from frozen Ready-to-Cook into frozen Ready-to-Eat products. It has been a very dominant trend emerging from the Covid-19 pandemic, as a solution to serve the customers during the recent social restriction. Ms. Chintia, as Head of Business Development for PT. Mega Food is currently focusing the company's business strategy into the new market. Together with the members of the development team, they have completed a thorough analysis of the opportunities and constraints and formulated the business plan to produce and enter the market to serve Ready-Meal products. Mr. Surtono has requested Chief Financial Officer, Mr. Malik to provide comprehensive analysis of PT. Mega Food financial condition. The information will be used to evaluate and assess the feasibility to advance with the proposed business expansion. In this regard, Mr. Malik has directed his team to compile the necessary data on the company's finances. rn
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