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 - – central banks are concerned over increasing inflation, competitive advantages are harder to sustain because of technology dispersion, increasing inequality as vast percentage of new income is going to the top 1%, increasing transportation and logistics costs, technology disruption, increasing commodity prices, challanges to central banks by blockchain based private currencies,
increasing government debt because of Covid-19 spendings, wage bills are increasing, 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 -
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.
Ability to lead change in Innovation & Entrepreneurship field
– Carmi Bali is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Carmi Bali in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
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.
Sustainable margins compare to other players in Innovation & Entrepreneurship industry
– Social Entrepreneurship and Sustainable Farming in Indonesia firm has clearly differentiated products in the market place. This has enabled Carmi Bali to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Carmi Bali to invest into research and development (R&D) and innovation.
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.
Learning organization
- Carmi Bali is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Carmi Bali is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Social Entrepreneurship and Sustainable Farming in Indonesia Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
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.
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.
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.
Analytics focus
– Carmi Bali is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Ilan Alon, Eve Misati can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
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.
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.
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 -
Increasing silos among functional specialists
– The organizational structure of Carmi Bali is dominated by functional specialists. It is not different from other players in the Innovation & Entrepreneurship segment. Carmi Bali needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Carmi Bali to focus more on services rather than just following the product oriented approach.
Aligning sales with marketing
– It come across in the case study Social Entrepreneurship and Sustainable Farming in Indonesia that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Social Entrepreneurship and Sustainable Farming in Indonesia can leverage the sales team experience to cultivate customer relationships as Carmi Bali is planning to shift buying processes online.
Need for greater diversity
– Carmi Bali has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Slow decision making process
– As mentioned earlier in the report, Carmi Bali has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Carmi Bali even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
High bargaining power of channel partners
– Because of the regulatory requirements, Ilan Alon, Eve Misati suggests that, Carmi Bali is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
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.
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.
Lack of clear differentiation of Carmi Bali products
– To increase the profitability and margins on the products, Carmi Bali needs to provide more differentiated products than what it is currently offering in the marketplace.
High operating costs
– Compare to the competitors, firm in the HBR case study Social Entrepreneurship and Sustainable Farming in Indonesia has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Carmi Bali 's lucrative customers.
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.
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.
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 -
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.
Leveraging digital technologies
– Carmi Bali can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Carmi Bali in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Innovation & Entrepreneurship segment, and it will provide faster access to the consumers.
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.
Learning at scale
– Online learning technologies has now opened space for Carmi Bali to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Developing new processes and practices
– Carmi Bali can develop new processes and procedures in Innovation & Entrepreneurship industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Innovation & Entrepreneurship industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Carmi Bali can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Carmi Bali can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Carmi Bali to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
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.
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.
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 -
Easy access to finance
– Easy access to finance in Innovation & Entrepreneurship field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Carmi Bali can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Regulatory challenges
– Carmi Bali needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Innovation & Entrepreneurship industry regulations.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Stagnating economy with rate increase
– Carmi Bali can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
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.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Carmi Bali in the Innovation & Entrepreneurship sector and impact the bottomline of the organization.
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.
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 .
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.
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.
Technology acceleration in Forth Industrial Revolution
– Carmi Bali has witnessed rapid integration of technology during Covid-19 in the Innovation & Entrepreneurship industry. As one of the leading players in the industry, Carmi Bali needs to keep up with the evolution of technology in the Innovation & Entrepreneurship sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
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.
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.