Advances in Social Science, Education and Humanities Research, volume 353 Third International Conference on Sustainable Innovation 2019 – Humanity, Education and Social Sciences (IcoSIHESS 2019) The Value Chain Holistic Model of Industrial Ulos Weaving Fabric

Dameria Naibaho Politeknik Negeri Jl. Almamater No. 1 Kampus USU Medan, Sumatera Utara, e-mail: [email protected]

Abstract - The research objective is to create a tangible and intangible benefits. The role of the holistic model of value chains that can enhance tangible government is very much needed as a facilitator of yarn raw and intangible benefits for stakeholders in Ulos Woven material providers, providers of human resource Fabric Industry in Pematang Siantar City, development services especially the art of designing colors Simalungun, Samosir, and . and shapes of apparel, including also supporting weavers The specific target is to inventory all activities that by doing good promotions about the results of ulos woven occur in all parties involved in the series of them, like fabrics and apparel. (Ratna and Naibaho, 2014). evaluate existing activities whether added value or not Increasing customer value means increasing value added. Data collected were inventoried came realization for customers reducing customer sacrifice or from informants like weavers, entrepreneurs, sellers, both (Hansen and Mowen, 2000). Through satisfying consumers, and KOPERINDAG (Department of customer needs, the company will obtain needful income Cooperatives, Industry, and Trade), with observations to fulfill the needs of other stakeholders. The purpose of and submitting open questions related to activities, this study is to produce a holistic value chain model using problems, and solutions of them, like their advantages Strength Weakness Opportunity Threats analysis that can related to the ulos woven fabric industry in North be applied in the Ulos woven fabric industry in Pematang Sumatera. SWOT analysis is used and the Ulos woven Siantar City; Samosir, Simalungun and North Tapanuli fabric industry has produced Strength-Opportunities Regency which will benefit stakeholders involved in the strategies because External-Internal factors show score Ulos woven fabric industry in increasing continuous numbers > 2. The proposed holistic value chain model benefits. is to increase quality production capacity with strong The series of activities in the Ulos woven fabric capital by forming Producers Cooperative. It will industry, it should show value-added activities that can provide quality and inexpensive yarn, new product provide tangible and intangible benefits to all stakeholders development designs that are creative and skilled by and continuously make changes that will create compete weavers. The implementation of the strategy is advantage, so that raises the question of what kind of accompanied by coaching and training from the "holistic value chain model" can be applied in the Ulos Cooperative, Industry and Trade Department, like the woven fabric industry in , Pematang role of Development Planning and Community Siantar City, and North Tapanuli Discussion (Musrenbang) Regency which is able to increase tangible and intangible Keywords: Value Chain, Holistic, SWOT analysis, Ulos benefits for stakeholders ". woven fabric Literature Review Introduction According to the Big Indonesian Dictionary, the In 2019 the tourism industry is projected to be the meant of holistic is a way of approaching a problem or largest foreign exchange earner in Indonesia, which is US symptom by looking at the problem or symptom as a $ 24 billion, surpassing the oil and gas sector, coal and unified whole (Big Dictionary of Indonesian). The series of palm oil, and the impact of foreign exchange that is directly activities in procurement, production and marketing is felt by all levels of society, including tourist toba lake area expected to be holistic, as a whole the activities are (Simanjuntak; 2017), where souvenirs made from ulos interrelated and must be enjoyable in the whole series of cloth become souvenirs that can be obtained easly, which activities. According to Chow et al. (2008) Supply Chain has the quality and competitiveness that can be brought by Management is a holistic and strategic approach in terms foreign tours. (Ratna and Naibaho 2017). of demand, operations, purchasing and management of the The ulos woven fabric industry has problems logistics process, is a synchronization of activity activities starting from the supply of non-quality goods, inefficient related to product flow, both in an industry and between and ineffective production processes to the process of industries. delivering products to customers, shows non-value-added The series of activities in the procurement, activities. Some types of ulos fabric produced apparently production and marketing of ulos woven fabric is expected did not provide adequate benefits for weavers, but were to be holistic (Indonesian Dictionary) how to approach a beneficial for collectors (Naibaho and Ratna: 2016) (Ratna problem or symptom by looking at the problem or and Naibaho: 2014). Holistically, we hope that all actors symptom as a whole unity. The value chain can be involved in the ulos woven cloth value chain can enjoy described as all activities needed to bring goods or services

Copyright © 2019, the Authors. Published by Atlantis Press. This is an open access article under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/). 308 Advances in Social Science, Education and Humanities Research, volume 353

from the design place, through various production phases customer sacrifice includes the cost of purchasing the (involving physical and input transformation from various product, the time and effort spent to obtain and learn how service providers), send to end customers with customer to use the product, as well as post-purchase costs which are value and recycling (full selling service) after using that defined as the costs of using, maintaining, and stopping the can increase added value (added value) for customers and use of the product. Increasing customer value means streamline costs incurred, it also has a competitive increasing realization for customers reducing customer advantage (Porter, 1985: 64) (Shank and Govindarajan, sacrifice or both. (Hansen and Mowen, 2000) Through 2000) (Pearce and Robinson, 2009) (Howieson et al, 2016). satisfying customer needs, the company will obtain much- Value Chain analysis helps companies to identify company needed income to meet the needs of other stakeholders. positions and analyze existing activities in the value chain Customers will feel satisfied if they get products and and reduce or eliminate activities that do not create added services that meet their needs at the right time, and at prices value to products or services and tools used to create value that are considered suitable for customers. Satisfied for their customers to achieve a competitive advantage. customers will again buy products and services produced Activity management through analysis of activities that by the company. Satisfied customers will tell others about increase customer value can be done with a strategy of the benefits obtained from the products and services they reducing costs or through differential strategies. Activity consume or which are often known as words of mouth analysis is a process of identifying, explaining, and (words of mouth). Satisfied customers will cause revenue evaluating various activities carried out by the company, streams into the organization so that the organization is showing, what activities are carried out; how many people able to produce adequate financial returns. Consumer did the activity; the time and resources needed to carry out satisfaction is an important measure that is considered in various activities, and an assessment of the value of the short term, which is also the main indicator of long- activities for the company, including suggestions for term performance (Anderson and Sullivan 1993; Hauser et selecting and maintaining various activities that add value. al. 1994). In evaluating customer satisfaction, a number of Various activities can be classified as activities that are questions will be submitted to customers, using a weighted value-added or not value-added. There are activities that index of customer satisfaction. are value added due to regulations, and there are In facing the level of competition in international discretionary ones that simultaneously fulfill the trade, the industry is required to be able and ready to have requirements: activities that produce changes in conditions; high competitiveness. High competitiveness is absolutely changing conditions that cannot be achieved through necessary for every industry to remain superior. Industrial previous activities; and activities that allow various other competitiveness in achieving optimal international trade activities to be carried out (Hansen and Mowen, 2000). performance, one of which is influenced by an effective Continuous improvement aims to reduce costs, which value chain (valuechain) (Nurimansyah, 2011). Porter according to Kaizen Costing can be done through (1985: 64) and Kaplinsky and Morris (2002) explaining elimination of activities, selection of activities, reduction effective value chains is the key to competitive advantage of activity and pooling of activities (Hansen and Mowen, (competitive advantage) that can produce value added for 2000). In process value analysis is possible to determine an industry. The value chain can be described as the overall competitive advantages that increase customer value and activities needed to carry goods or services from the design process efficiency (Human Capital Journal, 2015). place, through various production phases (involving According to Human Capital Journal (2015), in physical and input transformation from various service analyzing the value chain analysis can be divided into three providers), sending to end customers and recycling after parts, among others: analyzing activities (i.e. identifying use. Furthermore, value chain analysis also functions to what activities are carried out to be able to deliver products identify the stages of the value chain in which industries or services to customers), analyzing values (i.e. analyzing can increase value added for customers and streamline what will be carried out to provide the greatest added value costs incurred. Industry is able to become more competitive for customers) and evaluate and plan further actions (i.e. through cost efficiency or increase in value added obtained consider whether it is valuable enough to make changes through its value chain activities (Managifera, 2015). and then plan the next action). Competitive Advantage, has forced business “Satisfaction is a person’s feelings of pleasure or activities / companies to choose the right strategy, where disappointment resulting from comparing a product’s the company is in a strategic position and can adapt to the perceived performance (or outcome) in relation to his or changing environment. Companies must be able to make her expectations” (Kotler, 2003: 138). Customer the best choices about what is the needs of consumers and satisfaction will be seen from the higher customer value. how to meet the needs or demands of consumers at prices Customer value is the difference between what customers that are as low as possible in other words that can increase receive (realization for customers) and what customers the value of customers (Ellitan, 2008). Strategy is an action submit (customer sacrifices). What the customer receives or pattern that is carried out to achieve the goal, which not is all benefits, both tangible and intangible that the only includes the planned strategy but also includes the customer receives from the product purchased, including consistency of the company in making decisions general features and specifically a product, service, quality, (Mintzberg, 1978). The company's strategy usage instructions, reputation, trademark and other factors implementation focuses on developing company that are considered important by customers. While competencies, namely knowledge and skills specifically

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reflected in technology and production expertise. Company Tapanuli Regency. Mapping the activity value chain is the competencies show something that is not easy to be first result of this research, from identifying activities will imitated by competitors and will provide competitive provide information on strengths, weaknesses, advantages (Schoemaker, 1992). The success or failure of opportunities and threats. a company depends on competitive advantage in delivering There are 3 (three) jobs in collecting this research products or services at a low cost or providing unique data: benefits to buyers that are commensurate with the prices 1. To identify the type of Ulos woven fabric,as well applied. The strategic price that the customer will receive as the type yarn and the need for yarn including is the price that is commensurate with the benefits other materials used in accordance with the type delivered to the customer, who consider: 1. The lowest of Ulos woven fabric. value activity in the value chain. 2. Total cost by using 2. To identify the chain of activity and the value vertical linkages. 3. Margin that affects prices to customers chain activities in the Ulos woven fabric industry, by not forgetting the company's position in competition, both value-added activities and non-value-added and 4. Continuous improvement in terms of low cost and activities differentiation so that sustainable competitive advantage 3. To identify the problems of ulos woven fabric will be obtained. business in the value chain of the activity of the Competitors who sometimes cut prices, and the ulos woven fabric industry, with the aim of seeing price cuts are one form of attack that is difficult to resist information on strengths, weaknesses, because of the rapid impact on profitability, thus the opportunities and threats of the ulos woven fabric company must be very careful in giving responses to price industry business. cuts. A company can have lots of strengths and weaknesses After the research data is collected qualitatively, then the in dealing with its competitors, a business can increase data will be processed and analyzed descriptively, through: sustainable competitive advantage when using one of the 1. Mapping the chain of activities and value chain of following two strategies: 1. The low cost strategy, and 2. activity in the Ulos woven fabric industry. The differentiation strategy (Porter, 1985) (Shank and 2. To inventory information on strength, Govindarajan, 2000). weaknesses, opportunities, and threats in the Ulos Low Cost Strategy; If a company can achieve woven fabric industry. and maintain the overall cost of the board, the company 3. Formulating policy recommendations on the will become an above-average company in the industry, regulation of raw materials distribution and provided that the company can control prices at or close to distribution of finished goods which will produce the industry average. With the same or lower price, efficiency, quality and time requirements. compared to its competitors, the low cost position of the 4. Designing a value chain holistic model of boarding house leader is realized into higher profits. industrial ulos weaving fabric based on the However, boarding leaders cannot ignore the basis of evaluation results using Strength, Weaknesses, differentiation. If the product is not felt to be comparable Opportunities and Threats Analysis (SWOT or acceptable to the buyer, the boarding house leader will analysis) be forced to cut prices far below the competitor's price to Mapping of activity chains and value chains for value- get a sale. added or non-value-added activities is the first result Differentiation Strategy; In a differentiation of this research. From identification of activities will strategy, companies strive to be unique in their industry provide information on strengths, weaknesses, along several dimensions that are generally valued by opportunities, and threats, then analyzed and evaluated buyers. Differentiation can be based on the product itself, as a basis for forming a value chain holistic model of the product delivery system used to sell it, the marketing the Ulos weaving fabric industry. approach and the broad range of other factors. The Data collection with primary surveys and primary company differentiates itself from its competitors if the institutions as well as analyzing data and information company can be unique in something considered important collected by making value chain mapping and SWOT by the buyer. Differentiation is a thing that can be created analysis, will be a guideline in this study as described anywhere in the existing value chain, so it is not in the below. The number of samples in this study is using the narrow sense, for example in terms of product or marketing snowball method. (Pemerintah Kabupaten Jepara, practice. Bappeda, 2012).

Research Methodology This research and the data to be collected is YARN SUPPLIERS -> PRODUCTION -> qualitative, by conducting observations and open questions DISTRIBUTORS -> CUSTOMER/ CONSUMER related to activities and values from a connected activities then analyzed and evaluated with a Strength Weaknesses Opportunity Threats analysis in depth for the sake of Fig. 1. The Historian Tilas Schemes the Value Chains of drawing conclusions in forming a holistic model of value Ulos Woven Fabrics chains from the ulos woven fabric industry in Simalungun Regency, Pematang Siantar City, Samosir and North

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Strengths, Weaknesses, Opportunities and Threats important to very unimportant. Rating in column 3 for each Analysis factor by providing a scale ranging from 4 to 1 based on the The analysis in this study was carried out on influence of positive opportunity factors. After an external factors and internal factors that influenced the assessment of external an internal factors is carried out, continuous improvement of the Ulos woven fabric then a strategy is formulated from the result of the analysis industry. This analysis is expected to produce a plan of external an internal factors described in the table below. strategy that considers Strengths, Weaknesses, Opportunities and Threats by identifying various factors Table 3. Matrix of Strengths, Weaknesses, Opportunities systematically to formulate a development strategy. and Threats Strategy This analysis is based on logic that can maximize EFAS Strength (S) Weakness (W) strength and opportunity, but together can minimize IFAS Opportunities SO Strategy: WO Strategy: weaknesses and threats. The strength, weaknesses, (O) Create strategies that Creating strategies that opportunities and threats analysis will compare external use the strengths to take minimize weaknesses to factors (opportunities and threats) with internal factors advantage of take advantage of (strengths and weaknesses), the given an assessment opportunities, if the opportunities, if the total total score of internal score of external factors (weight and rating). The following is a table that shows a and external factors is is greater than 2 (two), matrix analysis of external factors. greater than 2 (two) and the internal factors is Table 1. Matrix Analisis of External Factors smaller or equal to 2 External Factors Weight Rating Weight Comment x Threats (T) ST Strategy: WT Strategy: Rating Create strategies that Create strategies that 1 2 3 4=2x3 5 use force to overcome minimize weaknesses Opportunities: Do write X Y XY Note that threats, if the total score and avoid threats, if the a description of the contains of internal factors is total score External opportunities from the reasons greater than 2 and the factors and internal research location and can for total score of external factorsis smaller than 2 be used as an choosing factors is smaller or opportunities in a factor equal to 2. developing the potential of the ulos woven fabric Note: industry. 1. EFAS: External Factors Analysis Summary Threats: Do wrtite a X Y XY Note that description of the threats contains 2. IFAS: Internal Factors Analysis Summary that can affect the reasons potential development of for Based on table 3 about Matrix of SWOT strategy, the ulos woven fabric choosing will created the value chain holistic model of Ulos woven industry. a factor fabric industry based on research data.

Description of table 1: the weight of each factor in column 2 (two) is totally equal to one (1), starting from very Results and Analysis Data collected based on observations and important to very unimportant. The rating of each factor in interviews with open and unstructured questions, from column 3 (three) given a scale ranging from 4 (four) to 1 stakeholders in the ulos woven fabric industry in Pematang (one). Siantar City, Simalungun, Samosir and North Tapanuli Table 2. Matrix Analisis of Internal Factors Internal Factors Grade Rating Grade Commentary Regencies. The questions raised were related to any x activities carried out in accordance with their respective Rating roles in the Ulos woven fabric industry. 1 2 3 4=2x3 5 Respondent profile data are shown in Table 4 and Strengths: Do X Y XY Note that data on the types of ulos woven fabric can be seen in Table write a description contains reasons that contains the for choosing a 5 below: potential from the factor Table 4. Informan Profile research location, Regency / City then will be developed in the No Informant Simalu- Samo- North Pematang Ulos woven fabric ngun sir Tapanuli Siantar industry. 1 Weaver 20 17 18 20 Weaknesses: Do X Y XY Note that 2 Entrepreneur 1 1 1 1 write a description contains reasons 3 Seller 3 3 3 3 that contains the for choosing a 4 Consumer 4 4 4 4 obstacles that factor 5 Cooperative, 1 1 1 1 cause the problems Industry and in the Ulos woven Trade fabric industry Department development. (KOPERINDAG)

Description of table 2: The weight on each factors in column 2 are totally equal to 1, starting from very

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Table 5. Types of Ulos Woven Fabric Produced Table 7. List of Advantages Possessed the Ulos Weaving No Name of Ulos Woven Fabric Working Hours Fabric Industry 1 Sarung and Selendang 4-6 hours No Description Total (%) 2 Panonga 2 hours 3 Sekata 3 hours 1 Weavers are conscientious in 25 % 4 Es Es 2 hours weaving 5 Small Tarutung 2 hours 2 Able to design / Creative to 18,75 % 6 Sibollang 1 hour 45 minutes make motifs 7 Small Sadum 6 hours 3 The work can be done at home 18,75 % 8 Songket 21-84 hours 9 Parompa Sadun 140-294 hours 4 There are many emerging new 12,5 % 10 Ulos Godang 42-70 hours weavers 11 Bakal of Sarung and Selendang 40 hours 5 The Quality of Ulos woven 12,5 % 12 Bakal Baju / Kemeja 14 hours fabric is very good 6 High Employee Loyalty 12,5 % There are also problems faced by stakeholder in ulos woven fabric industry can be seen in Table 6 below: Based on the available data, using the Strength Weaknesses Opportunity Threats analysis, inventories the Table 6. List of Problems Faced by Stakeholders Strengths, Weaknesses, Opportunities and Threats in the No Description of Problems Total (%) Ulos Woven Fabric Industry, determined weight and rating Weaver 1 Low Wages 21,875 % of each element of the SWOT analysis, then the Internal 2 Yarns are easily broken, damaged, hairy, and 18,75 % Factor Matrix and External Factor Matrix are arranged as rolled shown in table 8 and table 9 below. 3 Tools of Waving are damaged / broken so that 12,5 % inhibit weaving 4 There is no place of weaving in the house 12,5 % Table 8. Internal Factor Matrix 5 Creativity makes woven motifs is less (not 18,75 % No. Category Uraian Bobot Rating Total skilled with new motifs) 1. Strength 1. Man Power/ 0.24 4 0,960 6 Delayed work because of being slow to out the 9,375 % Weaver (Skilled yarn in the jade (can not slash themselves) are Creative 0.14 4 0,560 in Designing or 0.13 3.5 0,385 7 Not yet implemented K3 (Occupational Health 6,25 % Motifs) 0.10 3 0,300 and Working Safety) 2. Product Quality 0,07 3 0,210 Entrepreneur 3. Selection of The 1 Lack of Working Capital to fulfill orders 18,18 % Uniqly Motifs 2 Price of yarn is expensive 18,18 % 4. Employee Loyality 3 Low Employee Loyalthy 18,18 % 5. Availaibility of Raw 4 More Independent Weaver (don’t want as 18,18 % Materials worker more) 2. Weakness 1. Lack of Working 0.24 4 0,880 5 Marketing 9,09 % Capital 0.04 3 0,120 6 Lack of Government Attention 18,18 % 2. Family Business 3 0,090 Seller 3. Less Quality of Yarn 0,04 1,5 0,045 1 The Woven Products are less neat 55,6 % (Broken and Hairy) 0.03 1,5 0,030 2 Buyers ask for low prices 44,4 % 4. Lack of Information 0.03 Maker of Yarn/ Benang Lusi (Wrap) dan Benang Sources Pakan (Woof) 5. The wood used in 1 The Level of Work is Difficult when bombing 34 % ATBM is Often 2 The Size of Lalatan doesn’t match with Alat 33 % Damaged and Broken Tenun Bukan Mesin (Not Weaving Machine Total 1 3,580 Tools) 3 Takes Along Time 33 % Customer/ Consumer 1 The Price is not The Same As Quality 50 % 2 Lack of historical information about ulos 50 % woven fabrics Cooperative, Industry and Trade Department (KOPERINDAG) 1 The Group of ulos woven fabric industry that 100 % had been given training mostly did not follow up on the training or counseling There is also an advantage possessed by the Ulos woven fabric industry shown in table 7 below:

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Table 9. External Factor Matrix No. Category Description Quality Rating Total Based on the Internal External Matrix of the Ulos 1. Opportu 1. Establishment of a 0.2875 4 1,15 Woven Industry as shown in table 7, the appropriate nities Producer 0.1375 3 0,4125 Cooperative 0.0375 3 0,1125 strategy applied is the Strength-Opportunity strategy, 2. Technology increasing quality production capacity with strong capital Changes 0.0375 3 0,1125 by establishing producer cooperatives, where producer 3. Many new cooperatives will be able to overcome capital problems, weavers have appeared supply of quality and cheap yarn, which in the end will also 4. Prices of weaving can develop new products with creative design motives by products that are skilled weavers, coupled with the opportunity to produce in too cheap and large quantities. The government must be able to facilitate insufficient for the life needs of the implementation of this strategy, with the formation and weavers training of the cooperative, industry and trade services, as well as the musrenbang (development planning and 2. Threats 1. Types of thread 0.105 4 0,42 community discussion) which consists of village that are hard to 0.09 4 0,36 find governments that work together with society and other 2. Yarn that is cut stakeholders. when woven / 0.085 3,5 0,2975 brewed with too 0.08 3,5 0,28 Cooperative, Industry and Trade Department much feather fiber 0.045 2 0,09 (KOPERINDAG) 3. The price of yarn

is relatively 0.035 3 0,105 3 expensive 0.025 3 0,06 Producer Cooperatives: 2a Providers Yarn and 4 4. Sequence Color buyers Ulos Woven order is rarely 0.02 2,5 0,0375 2b Other Fabrics found 0.015 2,5 0,0375 Weavers 1a 1b 5. The wood used in ATBM is often 0.01 2,5 0,025 5 Weavers : Skilled, Loyal, Increased Amount, broken and (as a cooperative member) broken 6. Prices of woven 4 5

fabrics tend to fall MUSRENBANG 4 7. Prices of woven (development planning

products that are and community too cheap and discussion) insufficient for Customer/

the needs of Consumer weavers 8. Weaver fans are Fig. 3. The Value Chain Holistic Model of Industrial Ulos getting smaller Weaving Fabric 9. Lack of attention from relevant agencies Description of Figure 10. Number of To overcome the weaknesses of weavers in providing warp weavers (products and weft yarns at cheap and quality prices directly from similar) yarn manufacturers, then a Producer Cooperative was Total 1 3,500 formed. Weavers as members of producer cooperatives The External Internal Matrix of the Ulos Woven will get a share of the remaining proceeds of the Fabric Industry can be seen in Figure 2. Below. business. 1a.The producer cooperative provides the yarn needed by Strong Average Weak the weaver, in the form of quality yarn (not easily 4,0 3,0 2,0 1,0 broken, not hairy, varied colors and cheap). The management of this cooperative producer must be able

High to bring yarn directly from yarn manufacturers in sufficient quantities, according to their needs and lower 3,0 prices; and able to provide weaving equipment with good quality, light and not easily broken wood, and also Middle weaving equipment needed by cooperative members class easily. Those who are members of producer 2,0 cooperatives here are weavers who are also owners. As

cooperative management, it is required to pay attention Low

to its role in the cooperative, which is an honest and

1,0 orderly administration in recording cash in and out, and

Fig. 2. The External-Internal Matrix of Ulos Woven must remember the cooperative principles is from Fabric Industry members to members. The existence of this producer cooperative will support the skills of weavers who are

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able to design diverse and unique ulos woven fabrics, and partnership patterns and intellectual property rights so that the weaver's productivity is higher and (Damayanti, 2018). sustainably qualified. The ability of cooperative 4. Weavers who are not members of the Cooperative and members to be better at producing quality and unique cooperative member weavers can make direct sales to ulos woven fabrics will increase the use of cooperative consumers. Producers cooperatives consisting of funds. Therefore, it will increase the remaining weavers can also sell products directly to consumers, business process of the cooperative members, which in with / without facilitation from the Department of the end will be enjoyed by all members and Industry and Trade. management of the cooperative in accordance with 5. MUSRENBANG or Development Planning and their participation in the cooperative. Community Discussion (village / urban village, city / 1b. With the availability of guaranteed capital by the regency Development Planning and Community procurement of good-quality, cheap and varied-colored Discussion, which consist of village government in yarns, then weavers with well-owned skills, high collaboration with residents and other stakeholders, loyalty and the ability to design ulos woven fabrics with including village head and urban village head), must various motives, will produce good quality and unique actively participate in facilitating the problems of the products. Furthermore, weavers sell their products to Ulos woven fabric industry group, by incorporating the producer cooperatives (which have marketing subunits) program into the village budget plan or urban village at competitive / more expensive prices than to budget or into the village development work plan collectors (middlemen) who have been funding the (Musrenbang, 2015) work of weaving (loan sharks); at the time of delivery of woven fabric products, the management can at the Conclusion same time cut off the mandatory savings of members. Based on data that has been collected by means of The high production activity will automatically open interviews and observations directly to the field, and increase the amount of Remaining Business Proceeds further processed by the author, and evaluated, the that will be received by weavers as members of the following conclusions are obtained: cooperative. The existence of this cooperative will also [1] Strength possessed by the ulos woven fabric industry increase the bargaining power of the weavers group, include the skills of workers in designing ulos woven because they can determine competitive market prices fabric motifs with high loyalty, and producing quality with good quality and unique designs. ulos woven fabric, so that competitive prices can be 2a/b. Weavers who are not members of cooperatives may determined by this ulos woven fabric industry group also buy yarn and sell their ulos woven products to the if they take advantage of the opportunities by forming cooperative (of course, they will not get the remainder a cluster of woven fabric industries, gather in of the cooperative's business because they are not producer cooperatives that will provide quality yarn, members of the cooperative). (not easily broken, hairless, color available) following 3.Office of Cooperative, Industry and trade(Cooperatives, technical, administrative and marketing training Industry and Trade) Cooperative Office and Micro, (domestic and outside country) on an ongoing basis Small and Medium Enterprises are declared from KOPERINDAG (Cooperative, Industry and healthy/good if the aspect of cooperative service to Trade Department) members is at least 80%, by disseminating [2] The holistic model of the value chain of the Ulos woven GEMASKOP (Cooperative Conscious Community fabric industry in Simalungun Regency, Pematang Movement) so that the role of cooperative services will Siantar City, Samosir Regency and North Tapanuli be able to encourage the realization of this home Regency based on Strength Weaknesses Opportunity industry as an economic power by providing Threat analysis is a Strength-Opportunity strategy administrative training to management or management that must use force to take advantage of opportunities of producer cooperatives that aims to develop to eliminate external weaknesses and threats, namely cooperatives and develop weaver human resources in by establishing producer cooperative which consists producing good quality products, unique and ultimately of weavers / entrepreneurs in the Ulos woven fabric will prosper people's lives (Wardani,2013). Industry industry; producer cooperatives that will overcome and Trade Department have a role in guiding and capital problems providing quality threads (cheap, counseling, developing production quality (product hairless, not easily broken, available of many colors); standardization), fostering facilities and infrastructure, and will buy Ulos woven fabric from producers and developing marketing patterns. The guidance that cooperative members at attractive prices compared to can be provided by the industry and trade services for being sold directly to collectors. As a member of the the ulos woven fabric industry includes training in cooperative, they are entitled to receive technical, management, production techniques, marketing administrative and marketing services from the techniques, conducting comparative studies in more cooperative office, especially with the existence of advanced regions, including exhibitions at both local movement of people that conscious cooperative and national and even international levels, fostering (GEMASKOP); the industry office can provide marketing and promotion patterns, developing linkages technical training on the standardization of the quality of ulos woven fabrics and the trade service can give

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attention to help broader marketing, through cultural [14] D. Naibaho dan Ratna. 2016. Analisis aktivitas bernilai festivals, exhibitions, there will be a memorandum of tambah dalam industri souvenir berbahan kain ulos untuk understanding between investors and the cluster of meningkatkan nilai pelanggan di Sumatera Utara. Laporan ulos woven fabric industry. so that the ulos woven Hasil Penelitian:Politeknik Negeri Medan. [15] Nurimansyah, 2011. Analisi Rantai Nilai(Value fabric industry will have a high bargaining power, in Chain)Industri Pakaian Jadi di Indonesia. MM UGM. the end it will improve the quality of life of [16] J. A. Pearce and R.B. Robinson. 2009. Strategic stakeholders in the Ulos woven fabric industry. Management: Planning for Domestic and Global Recommendation Competition. McGrow – Hill Irwin An equally important role in implementing the [17] Pemerintah Kabupaten Jepara Badan Perencanaan holistic model of the ulos woven cloth value chain is by Pembangunan Daerah. 2012. Studi Analisis Rantai Nilai activating the role of village / city / regency development Komoditas Tenun Ikat Kabupaten Jepara. Laporan Akhir. planning meetings (MUSRENBANG), cooperation [18] M. E. Porter. 1985. Competitive Advantage: Creating and between citizens and other stakeholders with village / city Sustaining Superior Performance. Free Press. New York [19] Ratna dan D. Naibaho. 2014. Analisis Rantai Nilai untuk governments (including village heads) and Lurah), who Menciptakan keunggulan bersaing dalam Industri must actively participate in facilitating the solution to the Pertenunan Ulos di kota Pematang Siantar. Polmed: problem of the Ulos woven fabric industry group, by Laporan Hasil penelitian. incorporating the program into the village budget plan or [20] ------2017. Analisis Model the outline budget or into the village development work Implementasi Aktivitas bernilai Tambah Industri Souvenir plan. (Musrenbang, 2015) Berbahan kain Ulos dengan Peningkatan Pendapatan Penenun di Sumatera Utara. Polmed: Laporan Hasil REFERENCES penelitian. [1] E. Anderson, and M. Sullivan. 1993. The Antecendens and [21] /j.K. Shank and V. Govindarajan. 2000. Strategic Cost Consequences of Customer Satifaction for Firms. Management and The Value Chain. Journal of Cost Marketing Science. 12(2): 125-143 Management. (Winter):5-21 [2] W.S. Chow, C.N.Madu, C-H. Kuei, M.H.Lu, C.Lin and [22] B. Simanjuntak. 2017. Konsep Pembangunan Pariwisata H.Tseng. 2008. Supply Chain Management In the US and Kawasan Danau Toba. Badan Pelaksana Badan Otorita Taiwan: An Empirical Study. Omega 36:pg 665-679 Pengelola Kawasan Pariwisata Danau Toba: 24 Maret 2017. [3] H. Damayanti. 2018. Peran Dinas Perindustrian dan [23] P. J. H. Schoemaker. 1992. How to Link Strategy Vission Perdagangan Kabupaten Bojonegoro Dalam Meningkatkan to Core Capabilities. Sloan Management Review. Fale 67- Pendapatan Pengrajin Kayu Bubutan (Studi di Desa Bandar 81 Kecamatan Kasiman Kabupaten Bojonegoro). Upload date [24] H. K. Wardani. 2013. Peranan Dinas Koperasi dan UKM 1 November 2018. From: http://www.researchgate.net Dalam Pemberdayaan Usaha Kecil Menengah Kota Malang [4] L. Ellitan. 2008. Manajemen Strategi Operasi. Bandung: (Studi Pada Dinas Koperasi dan UKM Kota Malang). Jurnal Alfabeta Administrasi Publik, Vol. 1. No. 2 (2013) Upload date 4 [5] D.R. Hansen and M. M. Mowen. 2000. Management November 2018. From: Accounting. Fifth Edition. South-Western College https://administrasipublik.student.jurnal.ub.ac.id Publishing [6] J. R. Hauser, D. Simester, and B. Wernerfelt. 1994. Customer Satifaction Incentives. Marketing Sciences. 13 (4): 327-350. [7] J. Howieson, M. Lawley dan K. Hastings. 2016. Value chain analysis: an iterative and relational approach for agri- food chains. Supply Chain Management: An International Journal, Vol: 21. Iss 3 pp,- [8] Human Capital Jurnal. 2015. Langkah-langkah Melakukan Value Chain Analysis. Upload date 15 April 2017. From: http://humancapitaljournal.com/langkah-langkah- melakukan-value-chain-analysis/ [9] R. Kaplinsky dan Morris, M. 2001. A Handbook for Value Chain Research. IDRC. McCormick, D. Dan Sshmitz,H., 2001. Manual for value chain Research on Homeworkers in The Garment Industry. www.ids.ac.uk/ids/global/wiego.html [10] P. Kotler. 2003. Marketing Management. 11th Edition. Prentice Hall Int,l New Jersey. [11] L. Mangifera. 2015. Analisis Rantai Nilai (Value Chain) Pada Produk Batik Tulis di Surabaya.Benefit Jurnal Manajemen dan Bisnis, Volume 19, Nomor 1, Juni 2015, halaman 24-33. Diakses tanggal 21 Juli 2018. Dari eprints.ums.ac.id [12] H. Mintzberg. 1978. Patterns of Strategy Formation. Management Science: 24 (9) 934-948 [13] Musrenbang (Musyawarah Perencanaan Pembangunan Desa). 2015. Info Anggaran. Diakses 5 Nopember 2018. Dari https://info-anggaran.com

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