Effnu Subiyanto
This study aims to share the knowledge and practices behind the false corporate strategy implemented by the state-owned airline Garuda Indonesia due to multiple malpractices. Excessive investment should expand the scale and scope of the business but, otherwise, the strategy has accelerated management's chaos and disruption. The methodologies used in this study were mixed, combining case studies with descriptive and content analysis. The data taken was from 2009 to 2021, during this period, the state air flag carrier Indonesia has made excessive investments to procure 50 new aircraft from Boeing and an additional 10 units of Airbus by funding from the debts. This study found that Garuda went bankrupt because of excessive investment amplified by several mistakes in corporate strategy malpractices. The strategy to procure hundreds of aircraft is fine and precise, but some key persons took personal benefits from the transactions. In 2009, Garuda started extraordinary contracts, and by 2021 it was going into severe trouble. This study provides guidance and lesson learned for corporations that would have been considering doing business expansion due to wishing to increase the scale and scope of the corporation. This study enriches the literature on corporate strategies for future research. © 2022 World Conference on Transport Research Society
Department of Postgraduate School, Faculty of Magister Management, Widya Mandala Surabaya Catholic University (UKWM), Jl. Dinoyo 42-44, Surabaya, 60265, Indonesia
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