Abstract
ABSTRACT
 Potatoes undergo processing to create a product, specifically potato chips, which represents a strategic business development to enhance their recognition among consumers, ensuring that the sales turnover remains consistent and continually optimizing performance. This study's primary objective is to assess the value added by potato chips as a raw material, necessitating an added value analysis to gauge the efficiency and profitability of the operation, including the "Kemala Sukma" potato chips agro-industry situated in Ngemplak Village, Tuban Regency. Data for the research encompassed business owners, employees, and consumers, with a sample size of 40 respondents determined through a census of business owners and employees as per the author's specifications. The utilized method for added value analysis is the Hayami Method, which yielded an added value of IDR 177,289,- from the potato chips agro-industry, resulting in a value-added ratio of 62.18%, categorizing it as high, exceeding the 40% threshold. The profit earned by the agro-industry players amounted to IDR 103,489,- with a profit ratio of 88.23%. Additionally, the strategy for developing the internal environment within the Kemala Sukma potato chips agro-industry encompasses two components: strengths and weaknesses, each with associated variables. Simultaneously, the external environment considers the opportunities and threats confronted by the potato chips agro-industry.
 
 KEY WORDS : Added Value, Hayami Method, Profit, Development Strategy
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