Social Entrepreneurship and Sustainable Farming in Indonesia SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Social Entrepreneurship and Sustainable Farming in Indonesia
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.
Swot Analysis of "Social Entrepreneurship and Sustainable Farming in Indonesia" written by Ilan Alon, Eve Misati includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Carmi Bali facing as an external strategic factors. Some of the topics covered in Social Entrepreneurship and Sustainable Farming in Indonesia case study are - Strategic Management Strategies, Marketing, Operations management, Product development, Strategy and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the Social Entrepreneurship and Sustainable Farming in Indonesia casestudy better are - – supply chains are disrupted by pandemic , digital marketing is dominated by two big players Facebook and Google, there is backlash against globalization, cloud computing is disrupting traditional business models, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing inequality as vast percentage of new income is going to the top 1%, geopolitical disruptions,
technology disruption, customer relationship management is fast transforming because of increasing concerns over data privacy, etc
Introduction to SWOT Analysis of Social Entrepreneurship and Sustainable Farming in Indonesia
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Social Entrepreneurship and Sustainable Farming in Indonesia case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Carmi Bali, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Carmi Bali operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Social Entrepreneurship and Sustainable Farming in Indonesia can be done for the following purposes –
1. Strategic planning using facts provided in Social Entrepreneurship and Sustainable Farming in Indonesia case study
2. Improving business portfolio management of Carmi Bali
3. Assessing feasibility of the new initiative in Innovation & Entrepreneurship field.
4. Making a Innovation & Entrepreneurship topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Carmi Bali
Strengths Social Entrepreneurship and Sustainable Farming in Indonesia | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Carmi Bali in Social Entrepreneurship and Sustainable Farming in Indonesia Harvard Business Review case study are -
Training and development
– Carmi Bali has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Social Entrepreneurship and Sustainable Farming in Indonesia Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Operational resilience
– The operational resilience strategy in the Social Entrepreneurship and Sustainable Farming in Indonesia Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Innovation driven organization
– Carmi Bali is one of the most innovative firm in sector. Manager in Social Entrepreneurship and Sustainable Farming in Indonesia Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Successful track record of launching new products
– Carmi Bali has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Carmi Bali has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Ability to recruit top talent
– Carmi Bali is one of the leading recruiters in the industry. Managers in the Social Entrepreneurship and Sustainable Farming in Indonesia are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Effective Research and Development (R&D)
– Carmi Bali has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Social Entrepreneurship and Sustainable Farming in Indonesia - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Highly skilled collaborators
– Carmi Bali has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Social Entrepreneurship and Sustainable Farming in Indonesia HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
High brand equity
– Carmi Bali has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Carmi Bali to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Cross disciplinary teams
– Horizontal connected teams at the Carmi Bali are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Digital Transformation in Innovation & Entrepreneurship segment
- digital transformation varies from industry to industry. For Carmi Bali digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Carmi Bali has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
High switching costs
– The high switching costs that Carmi Bali has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Diverse revenue streams
– Carmi Bali is present in almost all the verticals within the industry. This has provided firm in Social Entrepreneurship and Sustainable Farming in Indonesia case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Weaknesses Social Entrepreneurship and Sustainable Farming in Indonesia | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Social Entrepreneurship and Sustainable Farming in Indonesia are -
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Social Entrepreneurship and Sustainable Farming in Indonesia HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Carmi Bali has relatively successful track record of launching new products.
Capital Spending Reduction
– Even during the low interest decade, Carmi Bali has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Carmi Bali supply chain. Even after few cautionary changes mentioned in the HBR case study - Social Entrepreneurship and Sustainable Farming in Indonesia, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Carmi Bali vulnerable to further global disruptions in South East Asia.
Workers concerns about automation
– As automation is fast increasing in the segment, Carmi Bali needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
No frontier risks strategy
– After analyzing the HBR case study Social Entrepreneurship and Sustainable Farming in Indonesia, it seems that company is thinking about the frontier risks that can impact Innovation & Entrepreneurship strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Carmi Bali is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Social Entrepreneurship and Sustainable Farming in Indonesia can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Social Entrepreneurship and Sustainable Farming in Indonesia, it seems that the employees of Carmi Bali don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Social Entrepreneurship and Sustainable Farming in Indonesia, is just above the industry average. Carmi Bali needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Social Entrepreneurship and Sustainable Farming in Indonesia, in the dynamic environment Carmi Bali has struggled to respond to the nimble upstart competition. Carmi Bali has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Skills based hiring
– The stress on hiring functional specialists at Carmi Bali has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Interest costs
– Compare to the competition, Carmi Bali has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Opportunities Social Entrepreneurship and Sustainable Farming in Indonesia | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Social Entrepreneurship and Sustainable Farming in Indonesia are -
Creating value in data economy
– The success of analytics program of Carmi Bali has opened avenues for new revenue streams for the organization in the industry. This can help Carmi Bali to build a more holistic ecosystem as suggested in the Social Entrepreneurship and Sustainable Farming in Indonesia case study. Carmi Bali can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Buying journey improvements
– Carmi Bali can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Social Entrepreneurship and Sustainable Farming in Indonesia suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Carmi Bali can use these opportunities to build new business models that can help the communities that Carmi Bali operates in. Secondly it can use opportunities from government spending in Innovation & Entrepreneurship sector.
Using analytics as competitive advantage
– Carmi Bali has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Social Entrepreneurship and Sustainable Farming in Indonesia - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Carmi Bali to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Low interest rates
– Even though inflation is raising its head in most developed economies, Carmi Bali can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Carmi Bali to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Carmi Bali to hire the very best people irrespective of their geographical location.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Carmi Bali can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Innovation & Entrepreneurship industry, but it has also influenced the consumer preferences. Carmi Bali can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Carmi Bali in the consumer business. Now Carmi Bali can target international markets with far fewer capital restrictions requirements than the existing system.
Building a culture of innovation
– managers at Carmi Bali can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Innovation & Entrepreneurship segment.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Carmi Bali can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Carmi Bali can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Social Entrepreneurship and Sustainable Farming in Indonesia, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Better consumer reach
– The expansion of the 5G network will help Carmi Bali to increase its market reach. Carmi Bali will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Threats Social Entrepreneurship and Sustainable Farming in Indonesia External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Social Entrepreneurship and Sustainable Farming in Indonesia are -
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Carmi Bali business can come under increasing regulations regarding data privacy, data security, etc.
Environmental challenges
– Carmi Bali needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Carmi Bali can take advantage of this fund but it will also bring new competitors in the Innovation & Entrepreneurship industry.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Carmi Bali with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Consumer confidence and its impact on Carmi Bali demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Carmi Bali.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Social Entrepreneurship and Sustainable Farming in Indonesia, Carmi Bali may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Innovation & Entrepreneurship .
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Carmi Bali will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Shortening product life cycle
– it is one of the major threat that Carmi Bali is facing in Innovation & Entrepreneurship sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Carmi Bali in the Innovation & Entrepreneurship industry. The Innovation & Entrepreneurship industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
High dependence on third party suppliers
– Carmi Bali high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Carmi Bali needs to understand the core reasons impacting the Innovation & Entrepreneurship industry. This will help it in building a better workplace.
Increasing wage structure of Carmi Bali
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Carmi Bali.
Weighted SWOT Analysis of Social Entrepreneurship and Sustainable Farming in Indonesia Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Social Entrepreneurship and Sustainable Farming in Indonesia needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Social Entrepreneurship and Sustainable Farming in Indonesia is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Social Entrepreneurship and Sustainable Farming in Indonesia is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Social Entrepreneurship and Sustainable Farming in Indonesia is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Carmi Bali needs to make to build a sustainable competitive advantage.
