Social Entrepreneurship and Sustainable Farming in Indonesia

Social Entrepreneurship and Sustainable Farming in Indonesia Description

Oded Carmi was a social entrepreneur striving for a "green Bali." He started Sari Organik as a model farm intended to grow organically with market demands and to benefit the local community while serving as an educational center for small scale farmers in the region. Thirteen years later, the idea was not as well embraced as he had hoped. The case provides information on social entrepreneurship, providing a background on Carmi, the environment in Ubud, Bali, and Indonesia at large, and discusses some of the challenges the entrepreneur was facing as the founder and owner of Sari Organik farm and the restaurant "Warung Bodag Maliah" (overflowing basket). His main challenge was to replicate and sustain his organic rice farming model across Bali and eventually other parts of Indonesia. His initial thoughts involved some options: (a) To utilize the established village system and its leadership (religious and civil) to re-introduce traditional rice farming culture in Ubud, Bali and eventually Indonesia. (b) To introduce a new model such as micro-franchising through which he (the micro-franchiser) would recruit a number of local farmers (micro-franchisees) and provide them with the resources to grow rice organically, (c) To go into a joint venture with the few existing organic rice farmers in the region. (d) To expand his business as a sole proprietor, i.e. buy more land and increase organic rice production - this was his least favorite option since it would go against his mission of involving the community. The case may be a good starting point for discussion on the impact of modernization on a traditional society and the role of business in society. Carmi, a native of Israel, tried to revive traditional farming techniques that were more sustainable and healthy. Carmi realized he had to come up with a strategy soon, and he was open to other viable options for replication and sustenance.

Case Description Social Entrepreneurship and Sustainable Farming in Indonesia

Strategic Managment Tools Used in Case Study Analysis of Social Entrepreneurship and Sustainable Farming in Indonesia

STEP 1. Problem Identification in Social Entrepreneurship and Sustainable Farming in Indonesia case study

STEP 2. External Environment Analysis - PESTEL / PEST / STEP Analysis of Social Entrepreneurship and Sustainable Farming in Indonesia case study

STEP 3. Industry Specific / Porter Five Forces Analysis of Social Entrepreneurship and Sustainable Farming in Indonesia case study

STEP 4. Evaluating Alternatives / SWOT Analysis of Social Entrepreneurship and Sustainable Farming in Indonesia case study

STEP 5. Porter Value Chain Analysis / VRIO / VRIN Analysis Social Entrepreneurship and Sustainable Farming in Indonesia case study

STEP 6. Recommendations Social Entrepreneurship and Sustainable Farming in Indonesia case study

STEP 7. Basis of Recommendations for Social Entrepreneurship and Sustainable Farming in Indonesia case study

Case Analysis of Social Entrepreneurship and Sustainable Farming in Indonesia

Social Entrepreneurship and Sustainable Farming in Indonesia is a Harvard Business (HBR) Case Study on Innovation & Entrepreneurship , Texas Business School provides HBR case study assignment help for just $9. Texas Business School(TBS) case study solution is based on HBR Case Study Method framework, TBS expertise & global insights. Social Entrepreneurship and Sustainable Farming in Indonesia is designed and drafted in a manner to allow the HBR case study reader to analyze a real-world problem by putting reader into the position of the decision maker. Social Entrepreneurship and Sustainable Farming in Indonesia case study will help professionals, MBA, EMBA, and leaders to develop a broad and clear understanding of casecategory challenges. Social Entrepreneurship and Sustainable Farming in Indonesia will also provide insight into areas such as – wordlist , strategy, leadership, sales and marketing, and negotiations.

Case Study Solutions Background Work

Social Entrepreneurship and Sustainable Farming in Indonesia case study solution is focused on solving the strategic and operational challenges the protagonist of the case is facing. The challenges involve – evaluation of strategic options, key role of Innovation & Entrepreneurship, leadership qualities of the protagonist, and dynamics of the external environment. The challenge in front of the protagonist, of Social Entrepreneurship and Sustainable Farming in Indonesia, is to not only build a competitive position of the organization but also to sustain it over a period of time.

Strategic Management Tools Used in Case Study Solution

The Social Entrepreneurship and Sustainable Farming in Indonesia case study solution requires the MBA, EMBA, executive, professional to have a deep understanding of various strategic management tools such as SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

Texas Business School Approach to Innovation & Entrepreneurship Solutions

In the Texas Business School, Social Entrepreneurship and Sustainable Farming in Indonesia case study solution – following strategic tools are used - SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

We have additionally used the concept of supply chain management and leadership framework to build a comprehensive case study solution for the case – Social Entrepreneurship and Sustainable Farming in Indonesia

Step 1 – Problem Identification of Social Entrepreneurship and Sustainable Farming in Indonesia - Harvard Business School Case Study

The first step to solve HBR Social Entrepreneurship and Sustainable Farming in Indonesia case study solution is to identify the problem present in the case. The problem statement of the case is provided in the beginning of the case where the protagonist is contemplating various options in the face of numerous challenges that Carmi Bali is facing right now. Even though the problem statement is essentially – “Innovation & Entrepreneurship” challenge but it has impacted by others factors such as communication in the organization, uncertainty in the external environment, leadership in Carmi Bali, style of leadership and organization structure, marketing and sales, organizational behavior, strategy, internal politics, stakeholders priorities and more.

Step 2 – External Environment Analysis

Texas Business School approach of case study analysis – Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the Social Entrepreneurship and Sustainable Farming in Indonesia.

The external environment analysis of Social Entrepreneurship and Sustainable Farming in Indonesia will ensure that we are keeping a tab on the macro-environment factors that are directly and indirectly impacting the business of the firm.

What is PESTEL Analysis? Briefly Explained

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Social Entrepreneurship and Sustainable Farming in Indonesia case study. PESTEL analysis of " Social Entrepreneurship and Sustainable Farming in Indonesia" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

How to do PESTEL / PEST / STEP Analysis? What are the components of PESTEL Analysis?

As mentioned above PESTEL Analysis has six elements – political, economic, social, technological, environmental, and legal. All the six elements are explained in context with Social Entrepreneurship and Sustainable Farming in Indonesia macro-environment and how it impacts the businesses of the firm.

How to do PESTEL Analysis for Social Entrepreneurship and Sustainable Farming in Indonesia

To do comprehensive PESTEL analysis of case study – Social Entrepreneurship and Sustainable Farming in Indonesia , we have researched numerous components under the six factors of PESTEL analysis.

Political Factors that Impact Social Entrepreneurship and Sustainable Farming in Indonesia

Political factors impact seven key decision making areas – economic environment, socio-cultural environment, rate of innovation & investment in research & development, environmental laws, legal requirements, and acceptance of new technologies.

Policy Making Impact on Social Entrepreneurship and Sustainable Farming in Indonesia

Government policies have significant impact on the business environment of any country. The firm in “ Social Entrepreneurship and Sustainable Farming in Indonesia ” needs to navigate these policy decisions to create either an edge for itself or reduce the negative impact of the policy as far as possible.

Data safety laws – The countries in which Carmi Bali is operating, firms are required to store customer data within the premises of the country. Carmi Bali needs to restructure its IT policies to accommodate these changes. In the EU countries, firms are required to make special provision for privacy issues and other laws.

Competition Regulations – Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. Social Entrepreneurship and Sustainable Farming in Indonesia has numerous instances where the competition regulations aspects can be scrutinized.

Import restrictions on products – Before entering the new market, Carmi Bali in case study Social Entrepreneurship and Sustainable Farming in Indonesia" should look into the import restrictions that may be present in the prospective market.

Export restrictions on products – Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. Carmi Bali in case study “ Social Entrepreneurship and Sustainable Farming in Indonesia ” should look into these export restrictions policies.

Foreign Direct Investment Policies – Government policies favors local companies over international policies, Carmi Bali in case study “ Social Entrepreneurship and Sustainable Farming in Indonesia ” should understand in minute details regarding the Foreign Direct Investment policies of the prospective market.

Taxation & Regulation Impact on Social Entrepreneurship and Sustainable Farming in Indonesia

Corporate Taxes – The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. Corporate taxation can be divided into two categories – taxes on profits and taxes on operations. Taxes on profits number is important for companies that already have a sustainable business model, while taxes on operations is far more significant for companies that are looking to set up new plants or operations.

Tariffs – Chekout how much tariffs the firm needs to pay in the “ Social Entrepreneurship and Sustainable Farming in Indonesia ” case study. The level of tariffs will determine the viability of the business model that the firm is contemplating. If the tariffs are high then it will be extremely difficult to compete with the local competitors. But if the tariffs are between 5-10% then Carmi Bali can compete against other competitors.

Government Scheme & Subsidies Impact on Social Entrepreneurship and Sustainable Farming in Indonesia

Research and Development Subsidies and Policies – Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. Managers at Social Entrepreneurship and Sustainable Farming in Indonesia case study have to assess whether their business can benefit from such government assistance and subsidies.

Consumer protection – Different countries have different consumer protection laws. Managers need to clarify not only the consumer protection laws in advance but also legal implications if the firm fails to meet any of them.

Political System & Stability, and its Impact on Social Entrepreneurship and Sustainable Farming in Indonesia

Political System and Its Implications – Different political systems have different approach to free market and entrepreneurship. Managers need to assess these factors even before entering the market.

Freedom of Press is critical for fair trade and transparency. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption.

Corruption level – Carmi Bali needs to assess the level of corruptions both at the official level and at the market level, even before entering a new market. To tackle the menace of corruption – a firm should have a clear SOP that provides managers at each level what to do when they encounter instances of either systematic corruption or bureaucrats looking to take bribes from the firm.

Independence of judiciary – It is critical for fair business practices. If a country doesn’t have independent judiciary then there is no point entry into such a country for business.

Government attitude towards trade unions – Different political systems and government have different attitude towards trade unions and collective bargaining. The firm needs to assess – its comfort dealing with the unions and regulations regarding unions in a given market or industry. If both are on the same page then it makes sense to enter, otherwise it doesn’t.

Economic Factors that Impact Social Entrepreneurship and Sustainable Farming in Indonesia

Social Factors that Impact Social Entrepreneurship and Sustainable Farming in Indonesia

Technological Factors that Impact Social Entrepreneurship and Sustainable Farming in Indonesia

Environmental Factors that Impact Social Entrepreneurship and Sustainable Farming in Indonesia

Legal Factors that Impact Social Entrepreneurship and Sustainable Farming in Indonesia

Step 3 – Industry Specific Analysis

What is Porter Five Forces Analysis

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Social Entrepreneurship and Sustainable Farming in Indonesia case study. PESTEL analysis of " Social Entrepreneurship and Sustainable Farming in Indonesia" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

Step 4 – SWOT Analysis / Internal Environment Analysis

Step 5 – Porter Value Chain / VRIO / VRIN Analysis

Step 6 – Evaluating Alternatives & Recommendations

Step 7 – Basis for Recommendations

References :: Social Entrepreneurship and Sustainable Farming in Indonesia case study solution