Case Document

Year 2021

GREEN IS IN THE EYES OF BEHOLDER - A CASE OF SC JOHNSON GREENWASHING IN US

In 2001 SC Johnson launched The Greenlist™ program. The GreenlistTM is company program to evaluate and assess the ingredients of SC Johnson product.  The program has goal to continually improve products by choosing ingredients that better protect human health and the environment. However, SC Johnson using its own assessment process to claim the safety of the product and the social and environment protection and put their patented logo based on their own company assessment.  For that SC Johson faces several law suits which some have been settled out of court. The questions are Is Company owned assessment a fair method to make any safety and environment claim?; From ethical point of view, is such practice acceptable from the view of accountability, tranparancy and fairness?; Is SC Johnson doing Greenwashing marketing?

Author

Dr. drh. Diena Dwidienawati Tjiptadi, MM

Dr. drh. Diena Dwidienawati Tjiptadi, MM

Year 2020

SHABU HACHI GROUP: MANAGING IN TURBULENT TIMES

Indonesia was facing both a pandemic and an economic crisis. Saving human lives during the coronavirus outbreak was a priority, and the treatment of the nation’s economy — amid spiraling unemployment rates — would have ramifications for the country’s future. In April 2020, the coronavirus epidemic had already spread nationwide and on April 9, 2020, the governor of Jakarta announced that large scale social restrictions (PSBB) were to be held in the capital. These restrictions were later extended until 22 May 2020. These large-scale social restrictions had a massive impact on the F&B industry. No dine-in customers were allowed as citizens were told to stay at home. More than 6800 restaurants were forced to close down and over 200,000 employees in this industry had to be laid off amid the coronavirus. The Hachi Group, a restaurant chain worried that their restaurants would become a potential source of infection. Closing outlets would mean stopping sales and producing no income without knowing when this pandemic would end, therefore while risking the future of the company. On the other hand, remaining open would produce sales but at the risk of the safety of their workers and their customers. Any decision would greatly affect the company.  

Author

H. Toto Edrinal Sebayang, S.Kom., M.M., M.H.

H. Toto Edrinal Sebayang, S.Kom., M.M., M.H.

Accounting Year 2020

JIWASRAYA: OLD ASSETS WITH NEW LIABILITIES

The Association of Certified Fraud Examiners (2016) indicates that asset misappropriation is the most common form of occupational fraud. There are six other types of frauds such as collusion, commissions, fictitious sales, rebates, refunds, and write-offs. Asset misappropriation includes examples relating to theft of cash, misuse of inventory, and fraudulent reimbursement. The most interesting part of this case was a financial innovation product called JS Saving Plan. It was a ‘bancassurance’ insurance product, with protection for five years, but with a one-year investment period. The product was distributed through eight Indonesian banks: Bank Rakyat Indonesia, Bank Tabungan Negara, KEB Hana Bank Indonesia, DBS Indonesia, ANZ Indonesia, QNB Indonesia, Standard Chartered and Bank Victoria International. JS Saving Plan was sold with the minimum amount of IDR 100 million (USD 6890, with an exchange rate of 1USD = Rp 15,000) The scheme claim the investor would be paid on a yearly basis unless the customer requested an extension of the policy or rolled it over. After the claim was paid, the personal accident protection period would continue until the fifth year. The company tried everything to survive, but it could not weather the economic conditions and turned around the direction of the stock price as an underlying foundation for its portfolio.

Author

Dr. Ir. Dewi Tamara, MM., MS.

Dr. Ir. Dewi Tamara, MM., MS.

Dr. Anita Maharani, S.E., M.M.

Dr. Anita Maharani, S.E., M.M.

Marketing Year 2020

PRUCEKATAN: DIGITAL MARKETING SURVIVOR

The income of the premium of the life insurance industry declined during the COVID-19 pandemic and caused the industry to post losses (Exhibit 1). And Government Regulation Number 21 of 2020 on Large-Scale Social Restrictions (PSBB) to stay at home and maintain a distance so that sales agents cannot sell insurance products face-to-face directly to potential customers. The president director of Prudential Indonesia, Jens Reisch said that "the appearance of COVID-19 in Indonesia has caused activities to occur at home, one of which is the implementation of Working From Home (WFH). In this context, Prudential undertook various initiatives to continue providing services that meet customer needs." To address these issues, Prudential Indonesia and other companies that are members of the Indonesian Life Insurance Association (AAJI) applied to the financial services authority (OJK) through letter Number 087 / IA.KPI / AAJI / 2020 dated March 24. 2020 on the Proposed Changes to Various Regulations Related to Marketing and Marketing. Sale of Insurance Products to Prepare the Life Insurance Industry to Face Problems Caused by the Corona Virus and Facing the Digital Era and letter number 101 / PRI / AAJI / V / 2020 regarding May 5, 2020, PAYDI marketing applications with direct meetings in digital or electronic media. In response to this letter, on June 22, 2020, Prudential Indonesia obtained permission from the Financial Services Authority (OJK) to conduct virtual face-to-face marketing of unit-linked insurance products. The wave of digitization has affected various sectors, fields, and industries, including life insurance. Preparation for digitization in the insurance industry is ripe because many have invested in digital technology. Additionally, many insurance companies have collaborated with digital technology companies to improve customer services to be more efficient and faster. The president and director of Prudential Indonesia, Jens Reisch, said that "the appearance of COVID-19 in Indonesia has caused activities to occur at home, one of which is the implementation of Working From Home (WFH). In this context, Prudential carries out several initiatives to continue providing services that meet customer needs". In the process, Jens managed to find a solution after many discussions with his team, "We are proud to have obtained permission from OJK to market unit link products through a virtual face-to-face, and launch a digital marketing channel, called PRUCekatan. The product uses integrated end-to-end digital systems and capabilities. Prudential Indonesia's marketing strategy was developed and managed directly by Prudential Indonesia. Customers and prospects can now consult with marketers about their insurance needs and realize life insurance applications anytime, anywhere in Indonesia conveniently and most importantly, safe. "

Author

Dicky Hida Syahchari, S.T., M.M., Ph.D

Dicky Hida Syahchari, S.T., M.M., Ph.D

Dr. Maria Grace Herlina, S.Sos., M.M.

Dr. Maria Grace Herlina, S.Sos., M.M.

MEIKARTA .... WILL ALL THE DREAMS COME TRUE?

For the sake of promoting the ambitious project, Lippo has poured more than Rp 1.5 trillion in marketing funds. The massive Meikarta advertisements have been seen since the beginning of 2017. Almost all promotional media such as television, radio, newspapers, billboards, and social media are full of Meikarta advertisements, which offer classy metropolitan residences in the east of Jakarta. The buyers' interest was so high that the order for apartments in Meikarta had reached 16,800 units and these sales got the MURI record as the most apartment unit sales in one day until it was discovered that the Meikarta Project did not have an Environmental Impact Analysis (Amdal) and Building Permit (IMB) permit. The Consumer Protection Act prohibits businesses from offering, promoting, and advertising goods or services that are not yet available. The Flats Act states that the developer must at least have a permit to construct flats if they market before construction. The government should strictly prohibit the sale of property that is not accompanied by a full license. Buying and selling an unfinished apartment needs to be stopped because it may be hazardous for the buyer. Apartment consumers are always in a weak position if the project is stalled or the developer goes bankrupt.

Author

Dicky Hida Syahchari, S.T., M.M., Ph.D

Dicky Hida Syahchari, S.T., M.M., Ph.D

Dr. Maria Grace Herlina, S.Sos., M.M.

Dr. Maria Grace Herlina, S.Sos., M.M.

Marketing Year 2020

NET TV FUTURE: ARE WE REVOLUTIONARY ENOUGH?

NET TV is one of the private television stations in Indonesia. This television station claims to be different from other television stations in Indonesia. The most interesting aspect is the different form of programs offered by this television station to the public. For example, if other television stations broadcast soap operas, comedies that have violence, or gossip news shows, NET TV claims it will not broadcast these common programs. On the contrary, NET TV offers programs which according to the company will increase the usefulness of public knowledge.

Author

Sukma Putra, SE., M.Ed.

Sukma Putra, SE., M.Ed.

Harly Toindo, MM.

Harly Toindo, MM.

Dr. Anita Maharani, S.E., M.M.

Dr. Anita Maharani, S.E., M.M.

THE SURVIVAL STRATEGIES IN E-COMMERCE INDUSTRY: A CASE OF TRAVELOKA INDONESIA

As almost all activities can be executed with just a smartphone and internet connection these days, companies should consider to provide online services unless they do not wish to stay in the market any longer. That does not exclude tourism industry which involves airlines, hotels, trains and other types of accommodation and transportation. People, including Indonesian, prefer to sit and relax while planning their trip rather than waiting in a long queue just to book their plane tickets. This gives Traveloka the ability to stay on the top of the as number one solution for all kind of travel needs. Traveloka itself was established as the founder, Ferry Unardi, often had difficulty in plane reservations, especially when he wanted to return to Padang, Indonesia, from the United States. Even though it began as a search engine to compare the price of airline tickets from various other sites, Traveloka succeeded in becoming a ticket reservation website, where users can place an order on its official website. A while later, hotel booking services are also available on the Traveloka website.

Traveloka started on early e-commerce era which made Traveloka encountered several obstacles as other e-commerce companies had to deal with at that time. One of them was to gain customer trust. People were not feeling comfortable about giving their money without seeing the products with their own eyes yet. Especially in Traveloka case, where people actually had to hand a big sum of money for it is a plane or hotel reservation. But Traveloka has proved themselves as trustworthy to the market with their security guarantees such as a secure payment gateway (Exhibit 1) and customers’ personal data protection. Traveloka also managed to expand its business in Southeast Asia, namely Thailand, Malaysia, Singapore, Vietnam, and the Philippines. However as time passes by, customer trust is no longer the only obstacle they have to face in this e-commerce industry.

Author

Yunita Kartika Sari, MM.

Yunita Kartika Sari, MM.

Aryo Bismo , SE, MM.

Aryo Bismo , SE, MM.

Marketing Year 2019

ARTOTEL GROUP: THE ART OF STEALING MARKET SHARE

The owner of Artotel group comes from the family who own the Marriott Surabaya. Wishing to expand to another market, Artotel was established with the idea of making art available to everyone. The hotel was aimed at marrying the concept of a boutique hotel decorated with art works produced by local artists, resulting in a comfortable and memorable place to stay. Artotel has undergone several changes in its strategic direction. Being an entrepreneurial company, it sees expansion to other businesses and types of accommodation as a way to survive in the turbulent environment. Artotel realizes that its main strength is its ability to have a ‘breathing brand DNA’, i. e. a brand that keeps on evolving depending on its market environment. This case will discuss the different methods that Arotel has employed to gain more market share and maintain its brand DNA.

Author

Dr. Adilla Anggraeni, B.Bus., MBA.

Dr. Adilla Anggraeni, B.Bus., MBA.

Indra Kusumawardhana, BA (Hons), M.Sc.

Indra Kusumawardhana, BA (Hons), M.Sc.

PALM OIL CONTROVERSY

Palm oil is one of the world’s most produced and consumed oils. This cheap, production-efficient and highly stable oil is used in a wide variety of food, cosmetic and hygiene products, and can be used as a source for biofuel or biodiesel. Most palm oil is produced in Asia, Africa and South America because the trees require warm temperatures, sunshine and plenty of rain in order to maximize production. In Indonesia, PT Perkebunan Nusantara as one of the companies owned by Government who specialized operating the palm oil production was challenged by the controversial cases in Sumatra. The case arises after the land clearing activities for the palm oil plantation that caused haze spread throughout several countries in Southeast Asia.

 

The land clearing cases in Sumatra island causes multiple adverse impacts to the environment, surrounding society, and to the business, itself. The 2015 Southeast Asian haze was an air pollution crisis affecting several countries in Southeast Asia. It was caused by PTPN from illegal slash-and-burn practices to open new palm oil plantation due to land clearing, principally on the Indonesian islands of Sumatra and Kalimantan, which then spread quickly in the dry season. This case has been the worst disaster not only for Indonesia but also other countries surrounded.

Author

Dr. Peri Akbar Manaf, B.Sc., MBA.

Dr. Peri Akbar Manaf, B.Sc., MBA.

PT UNITED TRACTORS: THE NOT SO-PROMISING FUTURE

It was one bright afternoon in the month of April 2019. It was just one week ago that Franciscus Xaverius Laksana Kesuma was appointed as the Chief Executive Officer of PT United Tractors Tbk. The bright afternoon, did not seem to be quite bright just yet, as the price of coal continues to fall and the dream of making a comeback for one of the leading company in heavy equipment in Indonesia might only be just a dream. The eerily look on the future of Indonesia mining industry which heavily related to the main business of PT United Tractors who delve in heavy equipment business somehow painted a bit darker grey of the bright afternoon. As Franciscus gazed in the afternoon shades and wonder if the storm would pass?

Author

Tengku Mohd. Khairal Abdullah., BBA., MBA., Ph.D.

Tengku Mohd. Khairal Abdullah., BBA., MBA., Ph.D.

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