Copyright © 2018 Authors. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. International Journal of Engineering & Technology, 7 (4.34) (2018) 284-286 International Journal of Engineering & Technology Website: www.sciencepubco.com/index.php/IJET Research pa The Influence of Business Strategy and Good Corporate Governance on Company’s Performance R. Ait Novatiani, Mohd Haizam Mohd Saudi*, R. Wedi Rusmawan Kusumah, Achmad Fajar, Rita Yuniarti School of Graduate Studies, Widyatama University, Bandung, Indonesia *Corresponding author E-mail: haizam@widyatama.ac.id Abstract In general purpose of a company is to look for the highest profit. An increase in profits shows the company’s performance is good, to ensure that the company’s performance is good, it must be supported by a business strategy and good corporate governance. The purpose of this study is to analyze business strategies and good corporate governance, both partially and simultaneously affect the company’s performance. Sampling technique used in this study non probability namely census sampling which is 46 census sampling. Based on the results of the study, it can be concluded that business strategies and good corporate governance both partially and simultaneously influence the company’s performance Keywords: Business strategies; good corporate governance; company’s performance. 1. Introduction In general, the purpose of a company is to seek profits as highest profit, this accordance with what was stated [3]. That is established company increases its owner’s wealth by increasing the value of the company. Company value can be achieved if the company can achieve a predetermined profit. An increase in profits shows the company’s performance is good. This is in accordance with what was stated by [7] that is the company’s performance is the result or achievement that is influenced by the company’s operational activities in utilizing its resources. Company performance is a level of success that can be measured and seen, the extent to which a person’s work can achieved company performance according to the target. The goals, vision and mission of the organization for a certain period of time. In 2016, there were companies whose performance decreased namely PT. Semen Indonesia Tbk. The results of the company’s financial statements show PT. Semen Indonesia Tbk experienced in net income of 8,4% to 2,9 trillion compared to the same period last year of 3,34 trillion The decline in net income was in line with operating income which fell 0.16% to Rp. 19.08 trillion during January - September 2016. PT. Semen Indonesia, PT. Indocement Tunggal Prakasa Tbk also experienced a decrease in net profit of 2.2% to Rp. 3.14 trillion. This was due to a decline in company revenue by 12% to Rp. 11.34 trillion from Rp. 12.88 trillion previously. Followed by PT Semen Baturaja Tbk which recorded in its books that its net profit decreased by 3.4% to Rp. 174.7 billion during January - September 2016, lower than the same period last year of Rp. 265 billion. Even so, in terms of revenue the company was able to strengthen slightly to Rp. 1.04 trillion from the previous Rp. 1.03 trillion. Purwoko said that actual cement demand would increase in line with infrastructure projects being boosted by the government. However, the increase in demand is not comparable to the level of supply that hit the cement issuer (www.cnnindonesia.com). The problems that occur above are a decrease in net profit from cement companies that occurs because cement companies cannot meet consumer demand which causes profit potential to decline and losses occur, increasing companies in the cement sector, the company must carry out strategies to maintain its business in order to improve company performance. The decline in profits shows that the company's performance is not good, for this reason, an adequate business strategy is needed. The business strategy focuses on improving the competitive position of a company or business unit product or service with a specific industry as well as the market segmentation of the company or service business unit. Business strategy is very important because it looks at how the business unit has an effect on the overall performance of the company [13]. The results of [1] show that corporate strategy can increase the opportunities and performance of the company. The results of other studies conducted by [8] show that there is an influence between business strategy, management techniques, accounting practices on company performance. Other efforts that can improve the company's performance are by applying the principles of good corporate governance in every operational activity of the company with the aim of increasing value that can support the company's performance. This is in line with research conducted by [12] which states that theoretically good corporate governance practices can influence and improve company performance, reducing the risk that may be carried out by the board with favorable decisions and can increase investor confidence to invest. The results of research conducted by [11] show that the implementation of good corporate governance (GCG) that is good and in accordance with applicable regulations will encourage companies to improve company performance. The principles of good corporate governance (GCG) have a purpose to provide performance for the progress of a company. The application of the principles of good corporate governance (GCG) namely accountability, transparency, fairness, responsibility, independence, participation at this time is needed by the company in order to survive and be strong in the face of increasingly tight and strong competition [14].