MANAGEMENT DECISION-MAKING STRATEGY OF HOME INDUSTRY IN LU’AT CHILI SAUCE PRODUCTION (CASE STUDY OF “SUKA MAJU” HOME INDUSTRY AT DESA NAPAN KABUPATEN TIMOR TENGAH UTARA)

Abstract

Home industries are one of the economic drivers of rural communities and require proper management to develop sustainably. This study aims to analyze production costs and business profit, as well as to formulate management decision-making strategies for the “Suka Maju” home industry in Desa Napan, Kabupaten Timor Tengah Utara, which produces Lu’at chili sauce. The research method used was a case study, with primary and secondary data collected through observation and interviews. Data analysis was conducted through production cost calculation, profit and loss analysis using the variable costing method, and SWOT analysis using the IFAS and EFAS matrices. The results indicate that the Lu’at chili sauce business generates positive profit, but still faces several internal weaknesses and external threats. Based on the SWOT analysis, a decision-making strategy is needed that utilizes the business strengths and opportunities while improving weaknesses in production, marketing, management, and bookkeeping. An appropriate strategy is expected to improve business performance and maintain the sustainability of the home industry in the future.