In October 2010, a group of college people from SBM ITB and St. Gallen University, Swiss, come to Cisondari, a village in Ciwidey, northen Bandung, Indonesia. We came to observe the activity in there SEED is a cross-cultural management program in which you will work closely with participants from various countries (previous participants come from Indonesia, Switzerland, Germany, Singapore, Malaysia, Vietnam, Thailand, and Brunei Darussalam) and stay in the middle of rural communities and help them develop their economic potentials.

1. Social Enterprise for Economic
Development (SEED)
Bandung, 31 October to 12 November 2010

4. Presenta(on
overview
RESEARCH
BUSINESS
PLAN
• Cross-­‐cultural
learning
• Firm
portrait
process
• Analysis
tools
• Methodology
• Calcula(ons
• Research
process
• Improvement
guideline
• Poten(al
projects
• Spill–over
effects

5. Cross-­‐cultural
Learning

6. Area
of
Research
RW
09
Sub-­‐Village:
PasirAwi
(RW
08,
09
&
17)
Village:
Cisondari
Sub-­‐District:
PasirJambu
District:
Bandung
Indonesia

7. Presenta(on
overview
RESEARCH
BUSINESS
PLAN
• Cross-­‐cultural
learning
• Firm
portrait
process
• Analysis
tools
• Methodology
• Calcula(ons
• Research
process
• Improvement
guideline
• Poten(al
projects
• Spill–over
effects

8. Methodology
Methodology
Economic
Development
in
Cisondari
Village
The
op(miza(on
of
the
available
resources
S(mulate
community-­‐based
and
-­‐driven
economic
ac(vi(es
Support
from
the
individual
economic
ac(vi(es
that
s(mulate
upper
level
changes

9. Presenta(on
overview
RESEARCH
BUSINESS
PLAN
• Cross-­‐cultural
learning
• Firm
portrait
process
• Analysis
tools
• Methodology
• Calcula(ons
• Research
process
• Improvement
guideline
• Poten(al
projects
• Spill–over
effects

10. Research
process
Field
research
Empathize
and
adapt
Data
analysis
Change
our
perspec(ve
Problem
solving
Mo(vate
and
empower

11. Research
process
Field
research
• Observa(on
– In
daily
situa(ons
– One
night
in
village
• Individual
talks
– Depth
interview
– Easy
to
interact

12. Research
process
• IdenBficaBon
of
Key
actors
– Pak
Aca
(head
of
sub
village)
– Pak
Kurniawan
(Head
of
RW
09)
– Pak
Fauzi
(young,
influen(al
and
wealthy)
–
Ustadz
Ooy
(Imam)

13. Research
process
• Experience
of
InteracBon
– Basa
Basi
– Funny
and
joking
a
lot
– Hospitality
– Openness
– Coopera(ve

14. Research
process
…actually
I‘m
I
would
like
to
running
a
develop
a
ca]ish
ca]ish
business…
businness…
…so
my
ca]ishes
…a
week
ago
I
are
already
dead!
forgot
to
feed
them…

15. Research
process
Data
Analysis
Natural
Resources
• Fer(le
soil
• Good
weather
condi(ons
• Water
surplus
Human
Capital
• Farming
• Other
specific
skills

16. Research
process
Data
Analysis
Social
Capital
• Gotong
royong
• High
community
commitment
• Kerjabak(
(community
service
work)
• Spiritual
and
religious

17. Research
process
Data
Analysis
People‘s
needs
• Becer
educa(on
• Acceptable
infrastructure
(bridge,
road,
...)
• More
government
presence
• Less
economic
dependency

18. Presenta(on
overview
RESEARCH
BUSINESS
PLAN
• Cross-­‐cultural
learning
• Firm
portrait
process
• Analysis
tools
• Methodology
• Calcula(ons
• Research
process
• Improvement
guideline
• PotenBal
projects
• Spill-­‐over
effects

19. Poten(al
projects
Farmer
koperasi
+
Milk
koperasi
+
Mushroom
+
Sandals
+
Bags
+
Football
shoes
Filter:
Individualinterviews
Milk
koperasi
+
Mushroom
+
Sandals
Filter:
Focus
groupdiscussion
Mushroom
+
Sandals
Mushroom
+
Sandals

20. Poten(al
projects
Dismissal
Reasons:
• Too
high
dependency
(high
risk)
• No
willingness
• Too
strong
compe((on
• Market
oversaturated
• Legal
incompa(bility

21. Poten(al
projects
Mushroom
Project
feasibility:
• Availability
of
natural,
human
and
financial
resources
• Community
driven
• High
demand
• Simple
process
• Common
objec(ve

22. Project
Feasibility
Sandals
project
feasibility:
• exis(ng
business
• high
poten(al
• Sustainable
market
• Poten(al
for
diversifica(on

23. Idea
of
interven(on
Increase
Support
economic
produc(on
development
Reduce
and
prices
dependency
Get
a
credit
Efficency
improvement
empower
and
mo(vate
TIME

24. Presenta(on
overview
BUSINESS
PLAN
• Cross-­‐culturallearning
• Firm
portrait
process
• Analysis
tools
• Methodology
• Calcula(ons
• Research
and
findings
• Improvement
guideline
• Poten(al
projects
• Spill-­‐over
effects

25. Firm
portrait
• Owner:
Head
of
RW
09,
29
years
old
• Manager
(transport,
sales,
purchase
and
accoun(ng)
• Since
2008
(start
capital:
1‘500‘000
IDR)
•
Empowered
by
brother

26. Firm
portrait
• Own
brand,
Not
registered
• Sandals
and
flip-­‐flops
• 3
workers,
1
dynamo,
1
sewing
machine
• Target
groups:
– Children
&
teenager
– Comfort
and
prac(cal
orientated
customers

27. Firm
portrait
Product
I:
• Hand-­‐made
flip-­‐flops,
all
sizes,
many
colours
• Special:
doll
and
combina(on
of
colour
• Current
produc(on:
400
pairs
with
3
workers
• Total
cost
per
pair:
10‘000
IDR
– Market
price:
20‘000-­‐25‘000
IDR

28. Firm
portrait
Product
II:
• Leather
imita(on
• Formal
sandals
• Small
and
medium
sizes
• Own
brand
• Hand-­‐made
• Exis(ng
prototypes

29. Firm
portrait
Produc(on
Process

30. Drawing
the
size

31. Cumng
out

32. Glueing
and
fixing

33. Cumng
out

34. Glueing

35. Polishing

36. Making
the
holes

37. Acaching
the
strap

39. Presenta(on
overview
RESEARCH
BUSINESS
PLAN
• Cross-­‐cultural
learning
• Firm
portrait
process
• Analysis
tools
• Methodology
• Calcula(ons
• Research
and
findings
• Improvement
guideline
• Poten(al
projects
• Spill-­‐over
effects

40. Analysis
Tools:
Porter‘s
Five
Forces
Threat
of
entry
of
new
compe(tors
Bargaining
Intensity
of
Bargaining
power
of
compe((ve
power
of
suppliers
rivalry
customers
Threat
of
subs(tute
products

41. HELPFUL
HARMFUL
to
achievetheobjec(ve
to
achievetheobjec(ve
S
SWOT-analysis
W
independence
(2
years),
INTERNAL
ORIGIN
theorganiza(on
crea(vity,
risk-­‐averse,
acributes
of
mo(va(on/ambi(on
(vision),
no
capital
(profit
-­‐>investment),
recep(ve,
inefficientproduc(on,
accoun(ngknowledge
and
prac(ce,
no
own
brand
(VIRDA),
appropriatevehiclefortransporta(o
hard-­‐working,
ns
flexible
produc(on
O
T
demandhigherthancurrentproduc(
EXTERNAL
ORIGIN
theenvironment
infrastructure
(electricity,
oncapacity,
acributes
of
bamboobridge),
poten(al
markets,
familyresponsibility,
poten(al
workers,
bigfactories,
directsalepossibili(es,
massproduc(on
supporchroughbrother

42. Analysis
tools:
Marke(ng-­‐Mix
PRODUCT
PLACEMENT
broker
broker
market
PRICE
PROMOTION
12‘500
20‘000
none
12‘500-­‐17‘500
20‘000
businesscard
catalogue

43. Analysis
tool:
Marke(ng
-­‐
Mix
• Price
price/kodi
à
quan(ty
discount,
first
mover
advantage
(skimming
possibility,
EURO
2012)
• Product
flip-­‐flops
and
sandals
for
children
and
adults,
different
colours,
key-­‐holder
(waste
material)

45. Analysis
tool:
Marke(ng-­‐
Mix
• Placement
Indirect
selling:
grocery
man,
markets,
stores
Skip
grocery
for
higher
margin
• PromoBon
brother‘s
store,
catalogue,
business
card

46. Presenta(on
overview
• RESEARCH
• BUSINESS
PLAN
• Cross-­‐cultural
• Firm
portrait
learning
process
• Analysis
tools
• Methodology
• ObjecBves
• Calcula(ons
• Research
process
• Improvement
• Poten(al
projects
guideline
• Spill-­‐over
effects

47. Objec(ves
• Start
to
think
in
advanced
–
create
clear
vision
• More
risk
taking
• Simple
changes
à
improve
prod.
process
• More
efficient
manufacturing
•
Higher
earnings
and
profit

48. Presenta(on
overview
• RESEARCH
• BUSINESS
PLAN
• Cross
cultural
• Firm
portrait
learning
process
• Analysis
tools
• Objec(ves
• Methodology
• CalculaBons
• Research
process
• Improvement
• Poten(al
projects
guideline
• Spill–over
effects

49. Calcula(ons
-­‐
Investment
plan
Name
Amount
Cost
(IDR)
Total
(IDR)
Dynamo
2
500‘000
1‘000‘000
Sewing
machine
2
500‘000
1‘000‘000
Shoe
mold
-­‐
21
/
25
2
250‘000
500‘000
-­‐
26
/
30
2
250‘000
500‘000
-­‐
31
/
35
2
250‘000
500‘000
-­‐
36
/
40
2
350‘000
700‘000
-­‐
41
/
45
2
500‘000
1‘000‘000
5‘300‘000
Material
4‘700‘000
10‘000‘000

50. Calcula(ons
• Price
(in
IDR)
– Leather
imita(on
sandals:
400‘000
/
kodi
– Flip-­‐flops
• Adults:
250‘000
/
kodi
• Children:
210‘000
/
kodi
• ProducBon
capacity
– 3
workers:
6
kodi
/
dayor
35
kodi
/
week
– 9
workers:
18
kodi
/
day

51. Calcula(ons
–
expected
revenues
(IDR)
/
week
Flip-­‐flops
Sandals
Koditype
Price
/
kodi
Total
Koditype
Price
/
kodi
Total
20adults
250‘000
5‘000‘000
40
children
400‘000
16‘000‘000
30
children
210’000
6‘300‘000
11‘300‘000
16‘000‘000

52. Calcula(ons
–
expected
costs
(IDR)
/
week
Flip-­‐flops
Sandals
Koditype
Price
/
kodi
Total
Koditype
Price
/
kodi
Total
20adults
192‘000
3‘840‘000
40children
362‘500
14‘500‘000
30
children
180’000
5‘400‘000
9‘240‘000
14‘500‘000

53. Calcula(ons
–
expected
profit
(IDR)
/
week
Flip-­‐flops:
Sandals:
PROFIT
11‘300‘000
16‘000‘000
3‘560‘000
-­‐
9‘240‘000
-­‐
14‘500‘000

54.
Calcula(ons
ImplicaBons
for
repayment
plan:
• Monthly
profit:
14‘240‘000
• Monthly
spendings
(family):
2‘000‘000
• First
two
months:
expanding
capacity
• Ater
third
month:
full
repayment

55. Presenta(on
overview
• RESEARCH
• BUSINESS
PLAN
• Cross-­‐cultural
• Firm
portrait
learning
process
• Analysis
tools
• Objec(ves
• Methodology
• Calcula(ons
• Research
process
• Improvement
• Poten(al
projects
guideline
• Spill-­‐over
effects

56. Improvement
guideline
• Structural
changes
Central
Bookkeeping
Calculator
use
Glue
outside
the
house
(children‘s
health)
• ProducBon
process
hairdryer
to
accelerate
drying
process
Waste
material
recycling

57. Improvement
guideline
• Believe
in
own
crea(vity
• Reduce
dependency
on
grocery
man
• Exploit
flexibility
– high
customer
sa(sfac(on
• Increase
brand-­‐awareness
– adver(sement
cataloque
– Word
of
mouth

62. Posi(ve
spill-­‐over
effects
• Economical
effects
– Workers
come
back
to
Cisondari
– Unemployment
decreases
–
Sustainable
increase
of
livelihood
– M
x
V
=
P
x
Y
(M
and
V
rise,
P
constant
-­‐>
Y
rises)

63. Posi(ve
spill-­‐over
effects
• TransformaBonal
effects
– Community
capacity
development
–
Improvement
of
knowledge
pacerns
–
Incen(ve
to
follow
new
behaviours

Successful
transformaBonal
process

64.
Terima
Kasih
Atas
Perha(an
Bapak
&
Ibu

65. Ques(ons
and
Answers