Problem Identification And Propose Solution For A Small And Medium Enterprise In Educational Industry: A Case Study Of Madu Toys


  • Muhammad Razan Fadhlurrahman
  • Amilia Wulansari


Madu Toys is an SME selling educational toys that is currently experiencing a decline in their business. This study aims to identify the causes of this problem and propose solutions to overcome it. To find these problems, it is necessary to analyze the business situation which is separated into internal and external. External analysis will be carried out using four methods, namely Porter Five Forces, PESTLE, competitor analysis, and customer analysis while internal analysis will be carried out using company analysis. Data collection methods used include observation, literature study, interview, and questionnaires. The results of the analysis show that there are problems in several areas. In marketing, problems are found in business channels, low customer loyalty, and promotions. Problems in operations are related to profit margins and product variety offered by suppliers. In finance, the problem lies in financial recording and budgeting. In addition, Madu Toys' unreliable source of income is increasingly visible with the Covid restrictions. In human resources, the problem is related to employee retention and maintaining employee quality. To overcome all these problems, the proposed solution is for Madu Toys to find alternative business channels and alternative suppliers. For promotion, Madu Toys should start a social media account with the support of content advertising and online advertising. In addition, Madu Toys is recommended to have a referral program, partnership with preschool, and in-store events. Madu Toys must also add after-sales service to increase customer loyalty. Regarding human resource issues, Madu Toys is encouraged to improve their working relationship with its employees. For financial management problems, Madu Toys can overcome them with training and recruitment.


Keywords: Problem Identification, Propose Solution, Educational Toys, SME, Root Cause, SWOT Analysis