seed presentation group 5

Bandung, 31 October to 12 November 2010

Social Enterprise for Economic Development (SEED)

Presenta(on overview

RESEARCH

•  Cross-‐cultural learning process

•  Methodology •  Research process •  Poten(al projects

BUSINESS PLAN

•  Firm portrait •  Analysis tools •  Calcula(ons •  Improvement guideline •  Spill–over effects

Cross-‐cultural Learning

Area of Research

RW 09 Sub-‐Village: PasirAwi (RW 08, 09 & 17) Village: Cisondari Sub-‐District: PasirJambu District: Bandung Indonesia


RESEARCH



BUSINESS PLAN


Methodology

Economic Development in Cisondari Village

The op(miza(on of the available resources

S(mulate community-‐based and -‐driven

economic ac(vi(es

Support from the individual economic ac(vi(es that s(mulate upper level changes

Methodology


RESEARCH



BUSINESS PLAN


Research process

Problem solving Mo(vate and empower

Data analysis Change our perspec(ve

Field research Empathize and adapt

Research process

Field research •  Observa(on

–  In daily situa(ons – One night in village

•  Individual talks – Depth interview – Easy to interact

•  IdenBficaBon of Key actors – Pak Aca (head of sub village) – Pak Kurniawan (Head of RW 09) – Pak Fauzi (young, influen(al and wealthy) –  Ustadz Ooy (Imam)

Research process

•  Experience of InteracBon – Basa Basi – Funny and joking a lot – Hospitality – Openness – Coopera(ve

Research process

Research process

I would like to develop a ca]ish business…

…actually I‘m running a ca]ish businness…

…so my ca]ishes are already dead! …a week ago I

forgot to feed them…

Research process Data Analysis

Natural Resources •  Fer(le soil •  Good weather condi(ons •  Water surplus Human Capital •  Farming •  Other specific skills

Research process

Data Analysis Social Capital •  Gotong royong •  High community commitment •  Kerjabak( (community service work) •  Spiritual and religious

Research process Data Analysis

People‘s needs •  Becer educa(on •  Acceptable infrastructure (bridge, road, ...) •  More government presence •  Less economic dependency


RESEARCH


•  Methodology •  Research process •  PotenBal projects

BUSINESS PLAN

•  Firm portrait •  Analysis tools •  Calcula(ons •  Improvement guideline •  Spill-‐over effects

Poten(al projects

Farmer koperasi + Milk koperasi + Mushroom + Sandals + Bags +

Football shoes

Mushroom + Sandals

Milk koperasi + Mushroom + Sandals

Filter: Individualinterviews

Filter: Focus groupdiscussion

Mushroom + Sandals

Poten(al projects

Dismissal Reasons: •  Too high dependency (high risk) •  No willingness •  Too strong compe((on •  Market oversaturated •  Legal incompa(bility

Poten(al projects

Mushroom Project feasibility: •  Availability of natural, human and financial resources

•  Community driven •  High demand •  Simple process •  Common objec(ve

Project Feasibility

Sandals project feasibility: •  exis(ng business •  high poten(al •  Sustainable market •  Poten(al for diversifica(on

Idea of interven(on

Efficency improvement

Get a credit

Reduce dependency

Increase produc(on and prices

Support economic development

empower and mo(vate TIME


•  Cross-‐culturallearning process

•  Methodology •  Research and findings •  Poten(al projects

BUSINESS PLAN


Firm portrait

•  Owner: Head of RW 09, 29 years old •  Manager (transport, sales, purchase and accoun(ng)

•  Since 2008 (start capital: 1‘500‘000 IDR) •  Empowered by brother

•  Own brand, Not registered •  Sandals and flip-‐flops •  3 workers, 1 dynamo, 1 sewing machine •  Target groups:

– Children & teenager – Comfort and prac(cal orientated customers

Firm portrait

Firm portrait Product I: •  Hand-‐made flip-‐flops, all sizes, many colours •  Special: doll and combina(on of colour •  Current produc(on: 400 pairs with 3 workers •  Total cost per pair: 10‘000 IDR

– Market price: 20‘000-‐25‘000 IDR

Firm portrait

Product II: •  Leather imita(on •  Formal sandals •  Small and medium sizes •  Own brand •  Hand-‐made •  Exis(ng prototypes

Firm portrait

Produc(on Process

Drawing the size

Cumng out

Glueing and fixing

Cumng out

Glueing

Polishing

Making the holes

Acaching the strap


RESEARCH


•  Methodology •  Research and findings •  Poten(al projects

BUSINESS PLAN


Analysis Tools: Porter‘s Five Forces

Bargaining power of suppliers

Intensity of compe((ve

rivalry

Threat of entry of new

compe(tors

Bargaining power of customers

Threat of subs(tute products

SWOT-analysis independence (2 years),

crea(vity, mo(va(on/ambi(on (vision),

recep(ve, accoun(ngknowledge and prac(ce,

own brand (VIRDA), hard-‐working,

flexible produc(on

risk-‐averse, no capital (profit -‐>investment),

inefficientproduc(on, no

appropriatevehiclefortransporta(ons

demandhigherthancurrentproduc(oncapacity,

poten(al markets, poten(al workers,

directsalepossibili(es, supporchroughbrother

infrastructure (electricity, bamboobridge),

familyresponsibility, bigfactories,

massproduc(on

HARMFUL to achievetheobjec(ve

HELPFUL to achievetheobjec(ve

INTERN

AL ORIGIN

acrib

utes of

theo

rganiza

(on

EXTERN

AL ORIGIN

acrib

utes of

theenviro

nmen

t S W

T O

Analysis tools: Marke(ng-‐Mix PRODUCT

PLACEMENT

PRICE PROMOTION

12‘500 20‘000

20‘000 12‘500-‐17‘500

none

catalogue businesscard

broker

market broker

Analysis tool: Marke(ng -‐ Mix

•  Price price/kodi à quan(ty discount, first mover advantage (skimming possibility, EURO 2012)

•  Product flip-‐flops and sandals for children and adults, different colours, key-‐holder (waste material)

Analysis tool: Marke(ng-‐ Mix

•  Placement Indirect selling: grocery man, markets, stores Skip grocery for higher margin •  PromoBon brother‘s store, catalogue, business card


•  RESEARCH



•  BUSINESS PLAN

•  Firm portrait •  Analysis tools •  ObjecBves •  Calcula(ons •  Improvement guideline

•  Spill-‐over effects

Objec(ves

•  Start to think in advanced – create clear vision

•  More risk taking •  Simple changes à improve prod. process •  More efficient manufacturing •  Higher earnings and profit


•  RESEARCH

•  Cross cultural learning process



•  Firm portrait •  Analysis tools •  Objec(ves •  CalculaBons •  Improvement guideline

•  Spill–over effects

Calcula(ons -‐ Investment plan Name Amount Cost (IDR) Total (IDR)

Dynamo 2 500‘000 1‘000‘000

Sewing machine 2 500‘000 1‘000‘000

Shoe mold

-‐  21 / 25 2 250‘000 500‘000

-‐ 26 / 30 2 250‘000 500‘000

-‐ 31 / 35 2 250‘000 500‘000

-‐ 36 / 40 2 350‘000 700‘000

-‐ 41 / 45 2 500‘000 1‘000‘000

5‘300‘000

Material 4‘700‘000

10‘000‘000

Calcula(ons

•  Price (in IDR) – Leather imita(on sandals: 400‘000 / kodi – Flip-‐flops

•  Adults: 250‘000 / kodi •  Children: 210‘000 / kodi

•  ProducBon capacity – 3 workers: 6 kodi / dayor 35 kodi / week – 9 workers: 18 kodi / day

Calcula(ons – expected revenues (IDR) / week

Flip-‐flops Koditype

Price / kodi

Total

20adults 250‘000 5‘000‘000

30 children 210’000 6‘300‘000

11‘300‘000

Sandals Koditype

Price / kodi

Total

40 children 400‘000 16‘000‘000

16‘000‘000

Calcula(ons – expected costs (IDR) / week

Flip-‐flops Koditype

Price / kodi

Total

20adults 192‘000 3‘840‘000

30 children 180’000 5‘400‘000

9‘240‘000

Sandals Koditype

Price / kodi

Total

40children 362‘500 14‘500‘000

14‘500‘000

Calcula(ons – expected profit (IDR) / week

Flip-‐flops: 11‘300‘000 -‐ 9‘240‘000

Sandals: 16‘000‘000 -‐ 14‘500‘000

PROFIT 3‘560‘000

Calcula(ons

ImplicaBons for repayment plan: •  Monthly profit: 14‘240‘000 •  Monthly spendings (family): 2‘000‘000 •  First two months: expanding capacity •  Ater third month: full repayment


•  RESEARCH




•  Firm portrait •  Analysis tools •  Objec(ves •  Calcula(ons •  Improvement guideline

•  Spill-‐over effects

•  Structural changes Central Bookkeeping Calculator use Glue outside the house (children‘s health)

•  ProducBon process hairdryer to accelerate drying process Waste material recycling

Improvement guideline

Improvement guideline

•  Believe in own crea(vity •  Reduce dependency on grocery man •  Exploit flexibility

–  high customer sa(sfac(on

•  Increase brand-‐awareness –  adver(sement cataloque – Word of mouth

Posi(ve spill-‐over effects

•  Economical effects – Workers come back to Cisondari – Unemployment decreases –  Sustainable increase of livelihood – M x V = P x Y (M and V rise, P constant -‐> Y rises)

Posi(ve spill-‐over effects

•  TransformaBonal effects – Community capacity development –  Improvement of knowledge pacerns –  Incen(ve to follow new behaviours Successful transformaBonal process

Terima Kasih Atas Perha(an Bapak & Ibu

Ques(ons and Answers

seed presentation group 5

Education