Case Document

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.

STOCK-OUT!

The case is hypothetical events of an Australian based company operated in Indonesia with background of 1998 financial crisis. The case demonstrated cultural differences amongst Indonesian staffs with Australian expatriates in business context, ignited by major financial crisis that hit Indonesia in 1998 when its currency plunged from 2500 to 15000 against USD. The case demonstrated the dynamics in business decision where different leadership styles was encountered amongst multiple stake holders in a cross-culture management set up.

Author

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

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

GOOGLE’S CHINESE COMPROMISE: A CAPITALIST CAPITULATION?

For global businesses, the Chinese market is tempting due to the sheer size of the population. According to World Bank data (2018), China has a population of 1.4 billion citizens. However, the Chinese market is notoriously difficult to crack (Stalk & Michael, 2011; Stevenson, 2017; Yongfu, 2014). According to Horowitz (2018), “doing business in China comes with a long list of demands”. Alphabet, the parent group of Google, was listed as having the third largest market value in the world (Statista, 2018), but it has still had its share of ups and downs in the Chinese marketplace. China’s harsh line on censorship has made it impossible for a company whose main raison d’etre is the availability of information on the internet. Having withdrawn from the market in 2010 due to China’s political overreach, what message is Google sending to the world by re-engaging with the nation? Is the quest for global dominance - and the accompanying advertising dollars - enough for Google to capitulate to China and grant them their censorious wishes?

Author

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

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

PT. PUCO: STRUGGLING ON BECOMING INDONESIAN VALVE MANUFACTURE

PUCO is ambitious to be the only one Indonesian valve control systems, they aimed to convince their customer to use their product. But in order to convince, they know that they need to struggle to get certification “American Petroleum Institute (API)”, that is not easy to get. Baskoro thought that all efforts that he has been taking is enough to get API’s auditors impression, but unexpectedly PUCO didn’t pass the certification, and receive reports from API around mid-April 2018, one month after certification process. From the reports, Baskoro was in terrible disappointed, since one of the findings mentioning PT. PUCO need to evaluate and improve their documentation also their quality control.  

Author

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

Dr. Anita Maharani, S.E., 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 THREE-WHEELED GIANT: THE BAJAJ GROUP CASE STUDY

Bajaj Auto went from a small company in one town in India to being a world leader in vehicles, finance and other areas.
For the people of Jakarta, Indonesia the bright orange three-wheeled bajaj used to be a very common sight. In recent years the blue model, which uses natural gas, has taken the place of the once ubiquitous orange model. Similarly the citizens of Bangkok, Thailand are accustomed to the ever-present so-called tuk-tuks or “'sam lor' (three-wheeled)” (Tuk-tuks in Bangkok, 2018). In many countries and numerous Indian cities (Mani, 2010) these three-wheeled vehicles are an important part of daily transportation.
What many people don’t realize is all these vehicles, also known as auto-rickshaws, originate from one very successful Indian company, in fact, one Indian family, the Bajaj family. The company was founded in 1926 by “humanitarian, freedom fighter, philanthropist, social reformer and a devoted Mahatma Gandhi follower,” Jamnalal Bajaj. (Jamnalal Bajaj Foundation, 2018)
The company that created the common three-wheeled auto-rickshaw has become a world leader in two and especially three-wheeled vehicles. The company, started by an Indian man in the 1920s has become an extremely successful diversified group of companies.

Author

Charles M. Schuster, M.A.

Charles M. Schuster, M.A.

BATTLE THE OF OLD VS SHARING ECONOMY: HOW GO-JEK & GRAB DUEL FOR INDONESIA AND CRIPPLED BLUEBIRD

It was a gloomy Tuesday morning and the date was March 22nd, 2016. There were rumors for the past few days that there would be a demonstration protesting against the very existence of online taxi such as Go-Jek, Uber and Grab, rumors that happened to be true. There was some sweeping against online taxi in some areas of Jakarta done by several taxi companies, the very-legal taxi company that were being hit quite hard to the point of extinction by these online transportation companies. The sweeping went quite violent as these demonstrators harass personal vehicles in search for Grab and Go-Jek drivers. It was a sad day for Indonesian transportation industry as demonstrations went brutal and temporarily slipped towards anarchy in some parts of Jakarta. Specific for Nadim Makarim’s Go-Jek company, the demonstration really showed the bitterness that his company brings towards this legal taxi drivers. Few years has been passed since the establishment of Go-Jek company and he is still wondering whether he is doing the right thing? And whether he can keep doing this right?

Author

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

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

PT INDOFOOD SUKSES MAKMUR: INTEGRATING SUSTAINABILITY INTO CORPORATE STRATEGY

In general this case study describes the major drivers and activities of PT Indofood Sukses Makmur to become a sustainable organization. This case also dwells on Indofood business environment scanning process in order to map out the real problems that have to be attacked. The objectives of Indofood sustainability strategy was to reduce the company’s negative impact on the social and natural environments. This case study also describes other benefits that Indofood received from their sustainability initiatives such as the company’s competitive advantage.

The case discusses the local and global environment changes which forced Indofood to make adjustments to their business strategy. It also portrays Indofood’s competitive environment that was affected by the local and global situation changing. This case also covers Indofood’s social sustainability (labor conditions and community development) as well as the environmental sustainability management initiatives as the biggest instant noodle producer in Indonesia.

Author

Vidayana, ST., MM

Vidayana, ST., MM

YAYASAN GINJAL DIATRANS INDONESIA (YGDI) ON THE AFFORDABLE HEMODIALYSIS

Back in 2012, patient with kidney failure in Indonesia reach more than 150.000 people that needs dialysis treatment, but however, this treatment only to serve for 100.000 people, and few patients only that afforded to pay the treatments cost. While there were many issues related with insufficient financial capacity for patients with kidney failure, and there is one foundation that aimed to help solving this problem. Although it was not the only one exist, YGDI (Yayasan Ginjal Diatrans Indonesia) through Dr. Bimanesh and team, struggling to find the best solution in order to bring the aim to reality. The struggle is getting more complicated, when YGDI pushed to create money, to finance themselves to run their daily operational. They can use GAKIN or JAMSOSTEK (later known as BPJS) only for the purpose of patient’s treatment. This issue makes YGDI think hard, with limited resources, how can they survive as a foundation, and concurrently still deliver good service to their patients?

Author

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

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

PT. PARAGON TECHNOLOGY INNOVATION: STRATEGIC MANAGEMENT IN MAKING DECISION AND TRUSTING ITS OUTSOURCE COMPANY

Nurhayati felt reluctant to let the outsource company manage the Beauty Advisor. She was to worry the outsource company could not maintain the quality of their service. But, this step should be taken, since Paragon will have to focus on their main business, the business of make-up. That’s why, she decided to keep the recruiting, training and determining the pay under her company, instead of letting it to the outsource company. Nurhayati will be focus more on developing product quality and quantity, as well as building more warehouse for the upcoming years, she hopes that by such strategic move it would made her company compete in the market, and however, any kinds of strategy would affect them financially.

The purpose of outsourcing Beauty Adviser Staff of Wardah rather than run and managed by itself is to create cost efficiency in the Corporation in order to keep it stays competitive in the market. This purpose has been asserted by Nurhayati as the top management. Since February 2017 the Corporation has outsourced its Beauty Adviser Staff to other party. Then, it is expected that Corporation can enjoy the cost efficiency and it can be more focus on the core-business. However, since the outsourcing of Beauty Adviser Staff just started several months ago, it is not appropriate period to evaluate whether the purpose of the Corporation is achieved or not. To be able to evaluate the Company purpose from financial perspective, at least need one year period considering other related cost. The cost of outsource Beauty Adviser Staff must be smaller than the cost when the staff run and managed by itself. How efficient it is, still needs time to see.

Author

Toto Rusmanto, M.Comm, Ph.D.

Toto Rusmanto, M.Comm, Ph.D.

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

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

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