Case Document

TOYS ‘R’ US: THE DEMISE OF THE TOY EMPIRE

The case study tells the story of Toys ‘R’ Us which used to be the most prominent player in toys business. Founded in 1957 by Lazarus, Toys ‘R’ Us had grown tremendously in the industry. Proclaimed as “one of the outstanding companies in all of retailing” by Goldman Sachs in 1985, Toys ‘R’ Us started to see its downfall after Lazarus had stepped down in 1994. Having led by different CEOs since then, Toys ‘R’ Us saw a hope in John Eyler who led Toys ‘R’ Us in 2000. In his 5 years serving as its CEO, Eyler, described as “an innovative and passionate marketer with entrepreneurial leadership and the energy needed for the toy market”, had tried many strategies. However, did he manage to save Toys ‘R’ Us from falling deeper?

Author

Sukma Putra, SE., M.Ed.

Sukma Putra, SE., M.Ed.

Michael Setiawan, S.Pd., M.Hum.

Michael Setiawan, S.Pd., M.Hum.

Stefanny Mathilda, S.Pd., M.M.

Stefanny Mathilda, S.Pd., M.M.

PT SUMMARECON AGUNG TBK: THE CONSTANT PURSUIT OF PERFECTION

The case is about PT Summarecon Agung Tbk (SMRA), one of the successful property developers in Indonesia. Throughout its journey, SMRA has undergone a differentiation strategy for its business model, starting with developing a remote area in the eastern fringe of Jakarta and successfully transforming it into a bustling neighbourhood. SMRA has undergone “the constant pursuit of perfection”, starting from the beginning of its existence. The company is an expert in discovering ‘hidden gems’, refining them into perfection and transforming them into marketable accommodation. With the property segments now heavily fragmented, tougher competition and the scarcity of land banks, SMRA needs to diversify its products and look for new ideas for its next ‘hidden gems’. The case is about how SMRA’s leader, Mr Herman Nagaria is exploring the idea of introducing the condo villa concept as a new product as its next hidden gem.

Author

Ir. Elia Oey, M.Eng., M.Sc.

Ir. Elia Oey, M.Eng., M.Sc.

THE BALLADS BETWEEN AREMA AND JOKO SUSILO: SEPARABLE OR INSEPARABLE?

Arema FC or Arema (former known as Arema Malang), is a soccer club from Malang, East Java, Indonesia. There is always a “behind story” of everything, and it happens as well to Arema. For some people in Malang believe that Arema, was a local legend for people lives in Malang, Jawa Timur. Sponsors are the “oil engine”, a soccer club can finance themselves using sponsors. People will easily notice sponsors by looking at soccer team’s jersey. It was also happened with Arema, they need sponsors, they have it and they put the name of sponsor screened on their jersey. But, the problem is, sponsors only interest when a soccer club routinely follow match. And to follow a match, a soccer club relies their future to coach. Joko Susilo or known as Getuk, is no longer strangers. He started his career as soccer player when he was still 16 years old in 1986, he joined Persikaba Blora although he was born in Cepu, Indonesia. he spend more than one year to exercise and learn about being a coach, two years was not a short time, he was “graduated” as junior coach on 2006 and later on 2007 he was trusted by the management to be junior coach  at Arema. As time passes by, since his first debuted as junior coach, he and the team practice a lot, its dynamic and full of stories, good stories and vice versa. Arema’s performance is getting left behind compared with their own performa’s several times before, and the downturn happened during Aji’s rule, they lose five match, and they got only four points from 15 points. Fans of Arema (Aremania and Aremanita) were reacted, they protests by writing some complaints through social media, they demand the management to fire Aji for not making any progress. But, the management insist on hiring Getuk as the coach, will the management finally realise

Author

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

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

TAUZIA HOTELS’ CORPORATE SOCIAL RESPONSIBILITY (CSR): A STAIRWAY TO HEAVEN

Corporate social responsibility (CSR) departments are often involved with civil society organizations (CSOs) through partnerships in order to develop projects in the format of CSR partnership establishment. Regardless of the type of projects, contemporary CSR paradigm labels the activity as creating ‘shared value’. TAUZIA Equal Chance is a program established by TAUZIA group that is conducted through collaboration with Indonesian Street Children Organization (ISCO). This program was first aimed at provision of education for street children. The partnership has been running since 2013 and was based on a five-year contract. Under this partnership, TAUZIA Management has committed to do fundraising for a certain number of children under the ISCO foundation each year. Over the years, the number of students that they support keeps on increasing. To raise funds for this purpose, TAUZIA Management has employed several methods, including conducting a variety of fundraising events, involving and engaging its own employees as well as other stakeholders, etc. On the other hand, Marc Steinmeyer realized that it is important to ensure that the program was successful and sustainable; knowing that a 5-year program requires a significant commitment on both parties and they may lose perspective along the way. This leads to the next question: how is TAUZIA’s ‘Equal Chance’ program developed in collaboration with Indonesian Street Children Organization (ISCO) to create and sustain the kind of values for both organizations? How can both organizations leverage their partnership? What will be the next move that TAUZIA can take to expand its CSR activities?

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.

PROMISES FACEBOOK WITH PRIVACY USERS

Facebook was released on February 4, 2004 by Mark Zuckerberg along with 4 other friends such as Eduardo Saverin, Andrew McCollum, Dustin Moskovitz and Chris Hughes.

Since 2004, Facebook has introduced some of the features contained in the website. The News Feed feature introduced in 2006 allows users to communicate and view their friends' activities on the website. It also allows for direct advertisement to the user's News Feed. In 2007, Facebook introduced the Beacon feature, which collects data about its user activities, focusing on the habits of user shopping activities.

Beacon Tool is used to track user's search data and purchases from partner sites, Facebook then broadcast this information to the user's network. No need to wait too long, this feature reaps a lot of controversy and protests from the online community. Many communities believe that the Beacon Tool is a privacy violation and a user agreement violation by the company. The Beacon Tool records Internet activity of Facebook users and sends this activity back to Facebook which then publishes across the network of Facebook users. The Beacon Tool is applied to all Facebook users by default.

Author

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

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

PERTAMINA OIL SPILL

The world community faces unprecedented ecological challenges in the 21st century, including climate change, resource scarcity, and threats to biodiversity. A critical task in coming decades for government policymakers, civil society organizations, corporate leaders, and entrepreneurial innovators will be to find ways to meet simultaneously both economic and environmental goals.

 

PERTAMINA has been awarded two platinum awards in the CSR Award (ICA) 2017, and an Appreciation Award presented by Sindo News Media for conducting CSR in the same year. However, PERTAMINA is also linked to controversial cases, such as the devastating oil spill in Balikpapan Bay in 2018 due to a leaked oil pipe. This is not a surprising news, as PERTAMINA allegedly experienced a leak from its oil pipes previously, in the year of 2004 and 2017.

 

The PERTAMINA oil spill case in Balikpapan Bay causes multiple adverse impacts to the environment, the surrounding society, and to the business itself. The ecological damage itself is estimated to be US $8.27 billion. The spill is said to be Indonesia’s worst environmental disaster from the last ten years. How can PERTAMINA manage environmental and business sustainability by reducing ecological damages and promote sustainable development? More importantly, how can the government help impose laws, regulations, and sanctions to help support environmental sustainability?

Author

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

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

BUSINESS AND IT’S SUPPLIER: TAKATA AIRBAG RECALL

In 2013, Takata Corporation, an automotive parts industry, bear the consequences of airbag products defects they have sold to the clients. The airbag inflator is broken, so the airbag does not come out, even suddenly the airbag exploded without cause and the first case appeared in the United States. As a company who applied zero fatalities concept, Takata must provide safety to consumers but in reality, there are 22 casualties and more than 100 of people have accidents because of Takata airbag. The National Highway Traffic Safety Administration (NHTSA) is an agency of the Executive Branch of the U.S. government, part of the Department of Transportation with road safety related regulations handles these Airbags case by conducting investigations and focusing safety factors more comprehensively. But the government did not act quickly even though this case has occurred since the early 2000s but until recently, only about 30-40% airbags has been replaced. There are 18 automobile manufacturer who became the clients of Takata and more than 70 million vehicles has been hit the road. How the government regulates consumer protection related to this issue? How the clients’ companies respond to this issue and protect the consumers? How far Takata’s power and influence as a main supplier to many clients in global supply chain? Why ethical issues such as defective product can affect company’s reputation? And why consumer or the general public is an important organizational stakeholder?

Author

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

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

FAKE NEWS: A LOOK AT COMPLETELY UNTRUE HEADLINES

In a world where democracies are important, news organizations play a crucial role in the development of modern society. In other words, media organizations significantly influence society through their content. The character of the media is interesting in this regard. The media serves as a surveillance for public institutions and society, but media outlets are also business entities with the baggage of potential bias and interests that come with money.

As the press has grown into a massive and powerful existence, especially with the emergence of online media, there has been a significant change in reporting news from things that already happened to things that are happening. However, in order to provide 'real-time' news, the essence of journalism, which should strictly rely on the verification of facts, seems to be often neglected. Some of the most important aspects of the media's social responsibilities lie in the areas of ethical journalism, news accuracy, and media bias. The failure to appraise upon those aspects might cause public misinformation and, in the Indonesian context, social conflict.

In 2017, in West Kalimantan, Maman Budiman, a 53-year-old man was on March 26 attempting to visit his son in Amawang village in Mempawah regency when he was beaten to death by local people who suspected him of preying on children. Maman, who was a trader in petai beans (bitter beans), had been intending to deliver some rice and other foods to his son, Tedi (26) when he stopped to ask for directions. He was brutally bashed and detained at the village hall. At the time, false information on “massive” child kidnapping was being spread in the country through social media and chat apps which lead people to believe it. As people rely more on social media for news, there is a real risk of fake news hijacking Indonesian democracy. It is crucial that Indonesian schools teach children to practice critical thinking, so they can distinguish between facts and lies because media have a strong influence towards our children these days in order to get the standard perspective of the news and prevent bias on news media.

Author

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

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

HARRIS HOTELS: CONNECTING THE DOTS BETWEEN HARRIS DAY AND CSR

HARRIS Day was a program that combined CSR and marketing programs. The program took various themes and activities which aimed to order to raise community awareness on HARRIS Hotel existence as local hotel with International Network. HARRIS Day was fully supported by Mark Steinmeyer, the founder of Tauzia Hotels. Although HARRIS Days has been implemented for 10 years, Marc was still looking for ways  to formulate HARRIS Day program that meets CSR and marketing objectives. It must be able to encourage HARRIS stakeholders to accept the program properly and willing to execute it successfully. It was not easy to carry out activities involving many people and simultaneously held in some areas. The biggest challenge was to determine the theme and concept of HARRIS Fun Bike because it had to accommodate many things such as brand development and budget allocation. The most important thing was the committee because it consists of internal stakeholders who also had high workloads. Moreover, it also took time to select the venue for HARRIS Fun Bike. The venue will be rotated every year. Every mid-year THM and all HARRIS Hotels chain started looking for sponsors and decide the theme and concept. GM Cluster in each city who was pointed by THM must be able to lead the preparation and responsible for the success of the events. GM Cluster must establish the operational team in their area. THM corp. team (Brand, Marketing, Event, and CSR) and operational teams in each cities coordinate each other to work together to carry out the event simultaneously. To boost the excitement of events outside Jakarta, senior managers from THM Jakarta were sent to each cluster to attend the HARRIS Fun Bike. The evaluation obtained from each chief operating officer after the event was completed would be an input for the next event preparation.

Author

Yunita Kartika Sari, MM.

Yunita Kartika Sari, MM.

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

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

ETHICAL CONCERNS FOR ELECTRONIC ARTS: A CASE STUDY OF PUBLIC RELATIONS REJECTION IN THE COMPUTER GAMES INDUSTRY

The world of computing is a highly-technical business, with constant innovation a hallmark of the industry. These innovations benefit business as the world becomes more inter-connected; communication channels are opened up, and markets become more globalized. However, forums for globalized communication facilitate a worldwide consumer base with a right to reply that did not exist for previous generations. Complaints are no longer private affairs, as the customer has the ability to take their grievance to the court of public opinion, and the company is forced into defending their position under increasingly tighter scrutiny. This case will examine the dilemma a company can face when their own users turn against them.

Author

Martin James Moloney, BSc Hons, M.I. Kom.

Martin James Moloney, BSc Hons, M.I. Kom.

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