Plomia stands for Persistence and Love in Operating, Marketing, and Investment Activities. It's a new framework developed by Leonardo Purwadi only recently in 2019.

Plomia stands for Persistence and Love in Operating, Marketing, and Investment Activities. It's a new framework developed by Leonardo Purwadi. The brand itself has already been trademarked in 2010, but only recently in 2019 is developing rapidly. By composing many experiences of relatives, business partners, clients, friends, and acquaintances with theories learned from his formal studies, later teaching experience in private tuition center, and being a bookworm for business books, he was able to compile them all into a principle, PLOMIA was reborn.

Basically, it's a foundation of what business is. A business will have to generate profit, also while doing so, it needs some leveraging effect so that the capital that are being used can produce even more gain than what have been expensed. The business itself, in his opinion, depends so much at these 3 aspects, and 3 aspects only: the market, the investment, and the actions. So then, he propose that a business can be analysed by placing the 'profit leverage' value against the market, investment, and action value. This way, the correlation of one business against it's surrounding conditions and factors can be measured numerically, and provide a better insight of what to be done to the business.

Profit Leverage is the net profit for the corresponding period against the retained profit at the end of that period.

Market means market index multiplied by 1/total expenses for the corresponding period. A market index is the degree of how much the business' market respond to anything that the business do. This can be calculated using many techniques and will be kept updated depends on the best practise from time to time and according to the specific business type. The index will start at 1 and will be declining if the business can't have any response after attempting many actions, and vice versa. This can also happen when the market is not elastic or it is too strongly monopolised. 

Investment is an index that measures risks. It mainly measures how strong is the business' funding against all the risk that is exposed by the business' operating activity. A strong funded business will have an index more than 1, while weaker ones will have and index close to 0. This index will also include the scoring of business' internal control, capital safety ratios, profitability ratios, and dividend payout ratios.

Actions is an index that is measured by comparing the spread of good news versus bad news (perceived by experts by comparing the credibility of the business' actions) against the median point of the spread itself. The measurement starts with 1 and each good news will add one point to the right spread (positive) and each bad news will add -1 to the left (negative) spread. the amount of the median/spread is then added or will reduce the index that starts with 1. If the bad news versus good news is at 2 digits difference, the spread will be cut to the point where the median is.

All of those factors will determine whether a business is too volatile or not. The end result will be around 1-5% for a relatively stable and conservative company, less than 1% for a stagnant company, 5-30% for an aggressive company, and more than 30% for unstable companies. These numbers will more or less represent how much of the profits will be affected for every change related to the market, investment, or actions are taking place.

"This framework is still on its early beta test and are NOT recommended to be used as the only benchmark to analyse any business." -Leonardo Purwadi, 2019.

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