BUSINESS ENVIRONTMENT: CONDUCT STRATEGY ANALYSIS OF COCONUT SUGAR SMALL ENTERPRISES

Abstract

The business environment has a significant impact on the productivity and sustainability of a business. This is because it encompasses not only internal but also external conditions which contribute to successful business. This research aims to analyze the business environment of small coconut sugar enterprises, namely determining the best strategies by analyzing the internal and external conditions. It collected data from respondents—coconut sugar entrepreneurs in Purbalingga. The business environment analysis is discussed using Conduct analysis in the Structure-Conduct-Performance (SCP) approach, namely how entrepreneurs' strategies understand their business position, where the business is headed, and what strategies will be adopted. The results show the prominent internal conditions are product design strategy, promotional strategy, and legal tactics, while the external ones are market and stakeholders. The suggested implications are (a) the product design strategy is more focused on developing variant products (powder, crystal, and rock), (b) the promotional strategy emphasizes digital promotion via online due to the speed of spreading and ordering, (c) the recommended legal tactic is legalization as a halal product, (d) the market is becoming more focused on segmentation in certain groups with high demand, and (e) developing business networks through expanding and strengthening stakeholders.