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.

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.

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.

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.

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.

THE BIRTH, BRIEF LIFE AND DEATH OF PATH

On September 17, 2018, Path reluctantly announced that they would stop their services. Previously, the internet line was busy with the news that Path would die. Not so long ago Path confirmed that by displaying the announcement on the Path.com page and in the Path application to the user. At the beginning of its presence, Path comes with offering interesting differentiation. Its position as a social media that is very personal is different from its competitors at that time, Facebook and Twitter. This is based on a psychological theory which states that an individual can only be close friends with a limited number of people, namely a maximum of 150 people. Absorbed with momentary popularity, Dave Morin and his team did not provide any innovation when several competitors began to emerge, such as Snapchat and Instagram which had a variety of new and fresh features. With that in mind, will there is a hope for Path to survive even though the news about the closure of their services is clearly spread?

Author

Charles M. Schuster, M.A.

Charles M. Schuster, M.A.

GRUNDFOS INDONESIA: MEASURING ELECTRICITY EFFICIENCY

The case study is a case study on energy efficiency accounting that leads to energy saving and CO2 reductions with cost saving as the financial result. This case study describes how Grundfos Indonesia as a pump supplier for PT. SRM, a chemical company in Indonesia, contributes to energy saving and Co2 reduction that can lead to wider access to clean water by providing its advanced inverter pump technology to its consumer.

The case study covers the introduction on Grundfos Group and Grundfos Indonesia, followed by the understanding of pump life cycle cost to enhance students’ experience and learning in studying the case. The role of PT. SRM in the case study is as the background of the case in which Grundfos has successfully delivered its services.

The main concept of the course specific topic that is relevant to the case study is the consumers and suppliers engagement. Under the concept of stakeholder engagement, the case study describes how a seemingly marketing-oriented activity conducted by Grundfos as part of engagement agreed by PT. SRM can actually lead to energy saving, CO2 reduction and cost saving. In this case study, the stakeholder engagement is slightly different from the stakeholder engagement of consumers and suppliers described in the text book (Chapter 6). In the book, stakeholder engagement is generally described as an engagement “allowed” by the inviting organization. However, in the case study, the engagement started with the pro-active approach of Grundfos that eventually agreed to solution phase in which Grundfos becomes one of the suppliers of PT. SRM in pumping system. This difference in starting point can enrich student understanding on stakeholder engagement between suppliers and consumers. The kind of report and energy accounting done in the case study will also expose the students to actual practices of communication or accountability in the making between a supplier and a consumer.

Author

Dewi Fitriasari, Ph.D, CSRS, CMA

Dewi Fitriasari, Ph.D, CSRS, CMA

STOCK-OUT!

The case is hypothetical events of a multinational company experienced a sudden severed stockout situation due to quality problem at its factory. The situation is worsened by having a minimal stock cover, full utilization at its factory and unique recipe for the stock-out products. The case demonstrates the dynamics in balancing demand and supply under multiple stake holders in a global supply chain management set up.

Author

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

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

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.

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