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.
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
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
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
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
58.
59.
60.
61.
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