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Posts Tagged ‘Asia & Pacific’
Establishing a Specialty Coffee Brand by Building Capacity of Farmers and Middlemen in Indonesia: New GIM Case Study Released

About the authors

Hidemi Yoshida is an associate professor of the Hosei Graduate School of Environmental Management and the Faculty of Humanity and Environment of Hosei University in Tokyo. Her research areas include microfinance, social entrepreneurship, and poverty alleviation through CSV (Creating Shared Value). She published the Japanese Version of the GIM Report “Creating Value for All: Strategies for Doing Business with the Poor”.

Agnes Rampisela is an associate professor of the Graduate School and the Faculty of Agriculture of Hasanuddin University in Makassar, Indonesia. She got her doctoral degree in Hydrology from Kyoto University, Japan, in 1992. She further enriched her experience at the Center for South East Asian Studies of Kyoto University as Visiting Research Fellow from 1996-1997. Her research areas include farming system, agriculture and community empowerment, and poverty alleviation. She contributes as an expert to several Japanese government projects in Indonesia and also conducts series of volunteer work especially under Lembaga Pelangi, an NGO which was established in 1996 under her initiative.

About the case study

P.T. Toarco Jaya, subsidiary of Key Coffee Ltd., a large Japanese company, established a brand of specialty coffee called “Toarco Toraja” by procuring Arabica coffee from Indonesian farmers, and by running its own coffee plantation in the country. Coffee trees that can produce high quality coffee are grown in the mountainous area, where people travel on foot or on horseback. In order to facilitate the collection of coffee beans, Toarco established purchasing stations close to farmers, and leveraged local collectors. After overcoming a number of barriers, such as the lack of farmers’ knowledge and skills, P.T. Toarco Jaya is now exporting 200-500 tons of coffee beans per year, while benefiting about 7,000 small-scale farmers as suppliers, and providing 53 full time and 900 temporary jobs at its Rainforest Alliance certified plantation. Today, Arabica coffee has become a reliable source of income for farmers, and Sulawesi is well-known for its coffee.

To download the Key Coffee case study from the GIM database, please click here.

 
Providing Business Education via Distance Learning in Afghanistan: New GIM Case Study Released

About the authors

Kathrin Hamm worked as Managing Director of the Afghan German Management College where she was responsible to build up the operations across Afghanistan. Under her leadership the college was distinguished by the UNESCO and formed to a profitable social enterprise, serving more than 400 Afghan students with a strong focus on women empowerment and entrepreneurship. Currently, Kathrin is a Master of Public Administration (MPA) Candidate at Columbia University’s, School of International and Public Affairs (SIPA). Kathrin graduated summa cum laude from the University of Witten/Herdecke in Germany, receiving a Master’s degree in Business Economics. Kathrin is also a European Recovery Program Fellow of the German National Academic Foundation. In addition to her academic pursuits, Kathrin has gained work experience at the World Bank Group (IFC), the Boston Consulting Group, and in US Congress’ House of Representatives. Kathrin also spent time with IBM as an International Business Consultant in South America, North America, and Europe.

Tim Lehmann is a consultant in social program replication and nonprofit management. He currently works mostly with Bertelsmann Foundation (Germany). Tim has gathered international research experience in the field of strategic social entrepreneurship and sustainable development in 25 countries in collaboration with the private and social sectors. As a research assistant at IESE Business School, Spain, he conducted research in the intersection of management science and NPO practice, leading a research team in India and moderating strategic discussions among NGO executives. As a result of this work, Tim published a conference paper on organizational forms of nonprofit expansion. An entrepreneur himself, Tim initiated and led an 8-month global study program in Africa, Asia, and Latin America with 40 social entrepreneurs such as Muhammad Yunus. Keen to inspire youth and share his learnings, he disseminated this research including life video conferencing with more than 20 schools all over Germany, a website (www.expedition-welt.de), and the publication of a co-authored book. Tim is an alumnus of oikos International – students for sustainable economics and management. Today he is still active as an alumnus, coordinating a sustainability bachelor award in German-speaking countries and designing entrepreneurship trainings for oikos students. Tim holds a Master of Science degree from Witten/Herdecke University, Germany, where he excelled summa cum laude in international economics and entrepreneurship. His master thesis about the scaling up of Aravind Eye Hospitals was awarded the highest faculty award and was co-supervised by Johanna Mair, IESE Business School. Tim also has a banking background with Deutsche Bank.

About the case study

The Afghan higher education infrastructure is unable to sustain a growing number of high school graduates preparing to transition into higher education. Currently, an estimated 600,000 students will be vying for 100,000 available spaces in colleges and universities. The Afghan German Management College (AGMC) provides access to business and entrepreneurship education via an internet based learning platform. The curriculum content for the online platform is produced by lecturers located in Germany and delivered to students in numerous provinces and remote areas of Afghanistan. The low cost internet operations allow an inclusive pricing strategy for students from low-income households. The AGMC runs on a profitable basis, has reinvested all surpluses in the future growth of its student body and provided jobs for seven full time and part time employees in Afghanistan. The four-year study program grew from 12 students in 2006 to 350 students in 2011, 22% of whom are women. Such an education is crucial in motivating young Afghans to pursue the path of entrepreneurship and thereby stimulate the local economy.

To download the AGMC case study from the GIM database, please click here.

 
Q&A with Charlie Dou, author of Micro-Hydro Power case study in China

Charlie Dou is an adjunct Professor and Research Associate, Alternative Energy Institute, West Texas A&M University, USA; CEO, Beijing Bergey Windpower Co. Ltd., served as International advisor for UNDP/GEF on renewable energy project in China, key Expert for EU, Consultant for the World Bank/GEF, etc. He is directly involved in many research and international projects sponsored by UNDP/GEF, the World Bank, China central government, and has published and/or edited 14 books and more than 40 papers/presentations, including “China Village Power Project development Guidebook” and the series books of “Capacity Building Strategy for the Rapid Commercialization of Renewable Energy in China” for UNDP. He received his Master’s Degree in Engineering Technology in the US, and Master’s Degree in Electric Engineering in China, and once worked on his doctoral degree on Industrial Engineering at Texas Tech University.

To download the Micro-Hydro Power case study from the GIM database, please click here.

What is the project’s basic value proposition and what makes its financial model sustainable?

The economic development is slow for these remote villages located in China’s western mountain regions and the life of these villagers is poor because of their inability to access electricity.  Extension of traditional utility power line is not viable, and not affordable for low-income residents.  Finding a technical and economically feasible solution is key for rural electrification in such areas.  Micro-hydro power is the least costly technology for power generation compared with other renewable energy technologies and traditional power plants. This case provides a successful example of local people relying on their own efforts to develop an electricity service without government and outside financial assistance and improve their life.

In developing countries, what are the main challenges for access to energy for the poor?

The main challenges for access to energy for the poor in developing countries is to develop a solution for a financially and technically sustainable power supply and affordable power service.

What main factors make this model successful that will allow it to be replicated elsewhere?

First, availability of resource and technology. Second, affordability of the solution (again, micro-hydro power generation is one of the least costly power generation technologies). Third, self-motivation (local residents wished to change their status). Fourth, clear ownership (the micro-hydro power system was developed and managed by the villagers themselves).

What would you say was critical about the actor ecosystem that enabled this business to be successful?

The villagers there have lacked power supply for generations. They wished to change this situation.  But the local utility company is not interested in expanding the service to such areas due to high investment and poor return (or even no return, since the losses from the power transmission may be even more than the power to be applied).  Micro-hydro power generation provides an affordable and environmentally friendly solution, since usually, for such a micro-hydro power generation, no civic construction is needed.  The water flow will not change significantly, which means little negative impact on local ecosystems compared with large hydro dams.