Case Document

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.

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.

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.

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.

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.

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.

JNE: LEADERSHIP IN LOGISTIC COMPANY

In mid-2014, Feriadi contemplated the way back to his home while accompanied by the sound of radio newscaster’s in his car. The news mostly discussed about some of the structural weaknesses in the economy of Indonesia, such as the rise of the e-commerce and the leadership system that have less influence on employee performance. With the rocketing competition from similar businesses, he thought harder on how to increase the growth of their company while not unsettling the current value of JNE.

Author

Sukma Putra, SE., M.Ed.

Sukma Putra, SE., M.Ed.

Dr. Ahmad Syamil, CFPIM, CIRM, CSCP

Dr. Ahmad Syamil, CFPIM, CIRM, CSCP

PT TOKOPEDIA: WHEN A LEADERSHIP TAKES A LEAD

On August 17, 2009, William Tanuwijaya and Leontinus Alpha Edison two close friend that worked together to achieve their dream, officially launched the first online platform shop called Tokopedia. Tokopedia held an icon of green owl with big eyes, the owl was the symbol of wisdom and had a great vision into every direction. It means that Tokopedia had holistic point of view for their business start from the company itself, the buyers and the sellers.

At that time, Internet was  forecasted to be the new era of commerce since its inception in the beginning of 2000.  Internet development in Indonesia continues to increase in 2013 (Exhibit 1), there were 74.6 million Internet users in Indonesia (the highest in Southeast Asia), a rising up 22 percent from a year earlier. This figure is expected to exceed 100 million in 2015 (Marketeers, 2014). ebay, Amazon, Alibaba were the e-commerce company that already stable worldwide while in Indonesia the online shop was a new things. The current Internet-based commercial transaction (e-commerce) is an essential element in the business life. With the number of internet users that is about 30% of the total population of Indonesia, Indonesian e-commerce market has a high potential in the future.

Eight years later, Tokopedia was known as the biggest e-commerce platform in Indonesia with thousands of tenants or retails and Tokopedia announced funding of US$100 million from SoftBank and Seqouia Capital (techinasia.com, 2014). The two founders, William and Leon were known as the former electronic entrepreneurs that went beyond their time. This case study explores or explains the factors that made Tokopedia big as we know today . This case study focuses on five entrepreneurial mindset such as creativitiy, collaboration, direction, coordination and delegation that the two founders did along with the growth of Tokopedia.

Author

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

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

Aryo Bismo , SE, MM.

Aryo Bismo , SE, MM.

LEADERSHIP IN RURAL AREAS: A CASE STUDY IN INDONESIA

This case study discusses some inspiring rural leaders consisting of the Regency of Purwakarta (West Java), Batang (Central Java), and Bantaeng (Southeast Sulawesi). Why rural leadership?

Rural leadership is interesting to discuss especially in transitional countries such as Indonesia, where the agricultural-based society is still very strong versus industrial-based societies. Nowadays the discussion about rural-based development depends very much on the leaders. It is said if the leader is bad then the region will not go anywhere and the leader ends up under government financial scrutiny or in jail.

In this case study three leaders change the mindset and mentality of their people, apply corporate governance especially in allocation and budget, and implement system-based government instead of preserving the cult of the individual. Each of the regents were owed credit due to their high achievements from very mediocre region that they ruled.

Author

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

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

Sukma Putra, SE., M.Ed.

Sukma Putra, SE., M.Ed.

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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