Case Document

RELEGATING RESPONSIBILITIES: A STUDY OF PERTAMINA UNIVERSITY

This case study strives to capture the way Pertamina University (PU), as a token of PT Pertamina's CSR program, generates money as well as attracting talents to cover the employee turnover. This university should be distinguished from the Pertamina Corporate University (PCU) on which employees do the in-house trainings. In contrast, the PU recruits and educate students to catch up the corporate operational standards after which they would work for the corporation.

PT Pertamina relegates their CSR programs through another legal entity called the the Pertamina Foundation (PF). However, the 2012 Government Regulation No. 47 obliges the CEO to executes the CSR program afther which earning the approval from the BOD. In other words, CSR programs should not be run by other organisations whose legal standing are different.

As some, if not most, Indonesians perceive the idea of organisational/corporate social responsibilities as no more than philanthropy, donations or charities, the university might be an example of the best practice of ethical CSR within which the program succeeds to be financially productive, and supporting the corporate business activities.

Author

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

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

DISASTER AVERTED: SAMSUNG CRISIS MANAGEMENT STRATEGY OF GALAXY NOTE 7

This study investigates the crisis management strategy of Samsung during the Galaxy Note 7 fiasco in 2016. The company recalled the product globally less than a month after launching because there were reports about the product overheating and even exploding. As one of the biggest electronic companies in the world, Samsung did their best to avert the crisis and worked on how to gain the trust from the customers while investigating the cause of the product’s defects. The company conducted a series of strategies to manage the crisis that happened globally.

Author

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

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

PT. TOYOTA MOTOR MANUFACTURING INDONESIA: MANAGING CSR STAKEHOLDERS ENGAGEMENT

Engaging the community to be involved in company’s social and ecological initiatives has been proven benefited both company and the community. However it is not an easy things to do as what had happened to TMMIN CSR which intended to replant the mangrove forest along the north cost of java. TMMIN had a strong resistance from several groups of local community as they had different and contradict interests.

The decision of Mr Adjie Sapta as the TMMIN CSR general manager to keep approaching the resistance groups to ask their willingness to collaborate with mangrove project was a difficult to work on. However through an intensive communication with those groups and also the assistance of other TMMIN’s stakeholders, the resistance was agree to participate. Through the participation of all community member, TMMIN’ mangrove plantation initiative successfully produce an important outcomes.

Author

Vidayana, ST., MM

Vidayana, ST., MM

JALES VEVA JAYA MAHE: A CASE OF INDONESIA FISHERY SUPPLY CHAIN

The case is about Fishery Supply Chain in Indonesia. Being the largest archipelago in the world, Indonesia has a tremendous opportunity in its marine and fishery sector. With the President Joko Widodo’s direction in stressing the importance of Indonesia’s fishery and the breakthrough policies set by his minister of Maritime Affairs and Fisheries, Mrs. Susi Pudjiastuti, Indonesia Fishery industry has entered an interesting era.

Yet, fishery supply chain is not easy. It has its own challenges despite tremendous opportunity to add value for all the stakeholders along the chain. The ministry of Maritime Affairs and Fisheries has set some high level policies that should be a good base for improving the fishery industry in strategic level. To materialize the benefits, it must be followed with a good supply chain analysis and initiatives.

Author

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

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

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.

PT NESTLÉ INDONESIA: CREATING SHARED VALUE FOR INDONESIAN COFFEE FARMERS

The case is about how Nestle Indonesia implemented itsCSV initiatives to the rural areas where its factories located. The case uses Nestle coffee factory in Panjang, Lampung as the background setting, and how Nestle helps the coffee farmers in Lampung to support its raw material needs (domestic and export) while guiding the farmers in making a profitable farming.

Coffee is also the 2nd important commodity in the world, with Indonesia coming 4th as coffee exporters. The supply of coffee comes from small scale farmers with limited resources while demand opportunity is attractive with possibility for different market segments. Indonesia’s coffee industryhas its own drawback with limited resources in term of farmers’ knowledge on good agricultural practice, farmers’ financial strength, and inherited old trees.

Author

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

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

PT. KAI: BUSINESS & PEOPLE TRANSFORMATION - THE LEADERSHIP ROLE OF IGNASIUS JONAN

The key operation of PT. Kereta Api Indonesia is now more on the customer perspective such as better customer service, competitive price, on time schedule and safety. One of PT. Kereta Api Indonesia’s services is on how customer can buy their ticket faster and convenience. Currently, customer can buy their ticket through many channels of ticket distribution in mini markets, even 90 days before the D-day. People can now buy their ticket through a franchise store and also through online payment that allows customer to pay directly through the ATM. This services has resulted many achievements and awards in 2013 on various area, from marketing, GCG, IT and Jonan appointed as The Best CEO of State-Owned Enterprises. PT. KAI has change from an old perception into a brand new experience of a real customer oriented services. The main transformation element was the leadership role from Jonan during 2009-2014. He mostly touched the operational aspects which focus more on the customer satisfaction. The transformation of PT. Kereta Api Indonesia would be a very good example on how a company can have its own turnaround point and transformed to be a better and performed company with a strong leadership.

Author

Dr. Jimmy Sadeli, M.M.

Dr. Jimmy Sadeli, M.M.

PT GARUDAFOOD : NUT TRANSFORMATION

In early 2012 GarudaFood, under PT Tudung Putra Putri Jaya, opened its overseas operation center in India, named Garuda Polyflex Foods. The development of this company which started as a beginning in Pati, Central Java, certainly has involvement from Sudhamek, stepped down as CEO of GarudaFood in August 2012, and now a Commissioner within the company. At 2004, Sudhamek was awarded as Entrepreneur of the Year by Ernst & Young Indonesia Entrepreneur of the Year Award and dubbed as The Most Admired CEO by Warta Ekonomi magazine from 2004 to 2007.

The long journey of Sudhamek’s involvement in Garuda Food started when he sold roasted peanuts while he was still in college. Now GarudaFood oversees 20,000 knowledge workers and with its recent partnership with Suntory Beverage & Food Ltd, Japan, in non alcoholic beverage business, things looked bright for GarudaFood. Yet opportunities still await, and people within the company even asked themselves: Who would be able and how to continue the legacy?

Author

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

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

NESTLÉ INDONESIA: CREATING SHARED VALUES

Nestlé had been operating in Indonesia since 1971 and currently had three factories across the country.  The ones in Kejayan and Pasuruan (East Java) produced Nestlé’s dairy products; the other in Panjang, Lampung (South Sumatra) produced coffee products; and the one in Cikupa (Banten) made confectionery products.

The Swiss-based private company placed the principle of Creating Shared Values (CSV) highly.  It believed that creating values for both the shareholders and society had to be placed on an equal footing in Indonesia.  Its mission in Indonesia was: Nurturing a Healthier Life for Indonesians.

 Nestlé believed that a strong and healthy future generation was very important for Indonesia, and therefore, it was equally important to ensure the availability of healthy and nutritious products for Indonesia’s next generation.

Along with the company’s business growth, Nestlé Indonesia had shown its commitment to uphold the CSV as part of its business strategy.  In 2010, approximately 72 percent of their products sold met the Nestlé Nutritional Foundation status – a strict measure to ensure that Nestlé products contributed to the nutritional needs of the consumers; about 660,000 liters of fresh milk were supplied from dairy farmers in East Java, as well as 10,320 tons of coffee beans from farmers in Lampung.  By the end of the year, more than 1,250 biogas units were installed in every house of Nestlé’s cattle raisers.

Issues that can be brought up from the case for class discussion would revolve around the value chain strategy developed by Nestlé using Michael Porter and Mark Kramer framework (2002, 2011)

Author

Muhammad Ariono Margiono, S.IP., MSc. (ECON), MM.

Muhammad Ariono Margiono, S.IP., MSc. (ECON), MM.

THE CHARTER: THE CHAIRUL TANJUNG ENTREPRENEURSHIP

The topic about leadership and entrepreneurship style of Chairul Tanjung (known as Pak CT) is always interesting.  His recent move on taking over the 40% share of Carrefour Indonesia on 2009 and announcement of being one of Forbes’ 1,000 richest business man in the world in the end of 2009 were considered bold and brilliant.

This case study discussed about CT’s leadership and entrepreneurship style that he was never labeled or branded before. He believes that business men have their own style and uniqueness in running their business. There was no such thing as identical styles that could be generalized. As he liked to share, he loves to teach in his own Bank Mega and is happy to be a visiting lecturer in Indonesia’s universities. The case study explores Pak CT’s opinion and experience for the benefit of others’ competencies development.

Author

Tubagus Hanafi Soeriaatmadja, MBA., M.Si.

Tubagus Hanafi Soeriaatmadja, MBA., M.Si.

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