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“OTONG.COM – Recycling Waste

EMBA Batch 3
Pricillia Taarea
Stefanus Indra
Ari Mulyono
Dewi Hayati

Pricing Strategy C. Internal Business Process Perspective D. Organizational Culture Financial Plan A. The Entrepreneurial Team B. Key Partners Human Resources and Entrepreneurial Team A. II. Breakeven analysis and profitability E. Product B. Executive Summary The Industry Analysis A. Facilities B. Our Services D. Place (distribution channel) D. Market Size C. Sales Forecasting C. Hyphotesis and Assumptions B. Income Statements D. The Company (Vision. Operations C. Financial Perspective B. Market Analysis A. Learning & Growth Perspective . Key Resources D. Marketing Plan A. The Opportunity C.I. Operation Plan A. Financial Sources Control and Performance Assessment A. VIII. The Clients B. Industry Overview B. VI. VII. Promotion V. Mission. Customer Perspective C. The Environment (Macro – PESTEL Analysis & Micro – Porter’s 5 Forces Model Analysis) IV. Objectives) III.

The high calorific value of plastics is actually similar to that of fuel oil. etc. however there are still many of us encounter poor neighborhoods in almost every corner of the city. The complaint most often delivered on the settlement of the poor are the poor quality of the environment is considered as a part of town that must be removed. Therefore. The Industry Analysis Industry Overview Indonesia is one of the ASEAN countries with the highest population (about 220 million people) with growth rate of 1. In order to achieve the economically and ecologically optimised management of plastics waste. they need work together with us by utilising and recycling garbage or waste. around 28 million people live in poverty line and 400. The population growth brings about the increasing amount of the waste which becomes a problem faced by the government. Because of the similarity of vision to run a business that also contribute to improved social welfare for the poor. create home industry producing floor mat from fabric waste and also to create and develop community of poor people to become early entrepreneurs. II. from day to day and would not be able to prepare their future for any urgent situations (sick. To achieve the high level of waste recovery. Plastics offer society lots of helpful properties.000 – Rp 10. or the embedded energy can be recovered. a combination of all end of life management techniques is required. In Indonesia. which is already in evidence in several European countries (optimising the value of plastics and diverting plastics waste from landfill). accident. good education. Business Goal and Objective: . This poverty problem can cause to criminal problem and slow down the economic growth. and they are also eco-efficient in many ways .2% per year (World Bank 2009). Their average income has around Rp 8. education is a key part of this.including when a product comes to the end of its useful life. People at the bottom of the pyramid lived with a lots of limitation.I. They hardly have a good access for nutritious food. Plastic is just too valuable to waste. Their only access is only through garbage or waste that left behind. The company is planning to provide the services to see the opportunity to empower them to become our partner. Moreover. The current situation only bring them to live daily. produce industrial raw material for plastic and paper industry from plastic and paper waste. we established Otong. In order to improve their standard of living.000 per day equal to less than US$ 1. People at the bottom of the pyramid in Jakarta always have struggled to survive. Plastic is one of the biggest issues from the waste.000 poor people lived in Jakarta. Plastic industry has invested in a widespread program to transfer its knowledge about end of life waste management and share it with relevant as a means for the people at the bottom of the pyramid to improve their quality of life and encourage them to start thinking about their future and the generation to come. Our services will act as distribution centre for collecting raw unused material. job opportunity and finding capital.) Looking at the people at the bottom of the pyramid ’s condition and their available access towards garbage and waste. All plastics can either be recycled as material and/or chemical feedstock for further use. This is when end-of-life management becomes necessary. society needs to learn how. Various efforts and programs undertaken to overcome. plastics waste can either be recycled into new products or it can partly substitute for fuel conserving primary resources. Executive Summary Poverty is one of the social problems in Indonesia that is not easy to overcome.

After process the products. driven by the large amounts of waste generated through consumption per capita. and maintenance of innovative and sustainable waste To ensure the delivery of an integrated. recycling and collection services within an engaged community. finance. To be a leader in the development. home industry even to end customers. The Market Otong. through collecting the waste and delivering it to Otong. the scavengers and Products that the company will recycle are plastics. Mission OTONG. Align with partners (scavengers community). Vision OTONG. The partners have extensive experience in human resources. . home industry and others. There is a growing market for recycled products in seeks to minimize the waste in densely populated urban and city environments that caused flooding during raining Responsiveness: Providing solid waste. In return. recycling products and recovered materials services to serve the needs of our society. This aims is to reduce the incidence of flooding caused by indiscriminate waste disposal and providing opportunities to people at the bottom of the pyramid. cost-effective. through effective waste management system also at the same time provide opportunities to the people at the bottom of the will take and process the waste and turn into recycling products. Indonesia. teamwork and adoption of appropriate new process and technology to reduce and reused waste products. reused by factory. Stewardship: Acting as wise and responsible caretakers of the financial. will sell the recycling products to factory. they receive incentives and some of them can sharpen their skill to process the waste to be recycle will partner with scavengers community to deliver the products to our warehouse and processing and provide incentives for waste collectors. and environmentally sound solid waste management Otong. Innovation: Embracing new and better ways to achieve improved and efficiency results though creativity. and to promote sustainable community programs and policies throughout Jakarta and the archipelago of Indonesia Values is a start-up waste management company which is located in Jakarta. These waste products from a key resource base to generate revenue. The Company – Otong.To alleviate flood and traffic jams in the rainy season by reducing flooding caused by waste. paper and fabric. The Company is founded in 2015 by team of five executive MBA students which becomes the stakeholder in the company and concurrently holds executive positions. The poorer segment such as scavengers and the communities has an important role to play in this market. natural and human resources entrusted to the community. sales and operations Products and services Otong. The Company will provide waste management services. implementation. Otong.

even though not all of them will use recycled material. and at the end of 2014.Environmental Responsibility: Ensuring the and personnel  Enhance the abilities and knowledge of our personnel to support superior service to our customers  Create Entrepreneurs among scavengers and enhance their skill. Education: Continually educating ourselves and our community regarding sustainability. III. professional. Teamwork: Promoting unity and cooperation among staff. but we also develop our own home industries participant from the scavengers family. suppliers. as well as with our community. and the need to consider solid waste management from an environmental perspective  Deliver sound and cost-effective solutions for waste management  Ensure solid waste management best practices are deployed in the field  Effectively use our assets. IMoI also stated that the plastic industry still lacking in raw materials suppliers.go. systems. (http://www.sinarharapan.  Build partnerships with factories. to meet our purpose of achieving the garment industries: 2024 companies as 2010. recycling.kemenperin. and processes that promote sustainability. Continuous Improvement: Focus on improving the division’s efforts through coordination. participation and education with various communities at the bottom at the pyramid. home industry. . and being accountable for achieving results. Integrity: Acting in an honest. and proper waste management. meeting our current needs and challenges while anticipating the needs and challenges of the future. Strategic Thinking: Committed to implementing projects. and stakeholders.kemenperin. ethical. Indonesia still has to import 60-70% of it’s 7 ton waste paper demand (http://www. and work of the division. tools. the process and the management of waste also recovered materials in an environmentally sound manner and in accordance with regulatory requirements. Strategic Objective OTONG. who have a history of caring recycling products  Ensure skill partner compliance with established quality standards for giving best result to the partners  Build community awareness of the need to minimize the production of paper industries: 485 companies listed at 2010 as participants in this industry (http://www. The Clients plastic industries : There are 1356 companies in Indonesia(year 2010) registered in Indonesian Ministry of Industry (IMoI) that produce plastic product. Market Analysis A. and respectful manner with each other and our community. customers. taking personal responsibility. environmental responsibility. hotels. programs.go. vision.

c2E).000) of Jakarta population is poor Technological : The technologies needed for processing has already been established Legal : waste processing dictated by Law no. In summary. fabric (low) rivalry : medium IV. is based on a Business-2-Business (B2B) model whereby the recycling companies source for raw materials for the recycling process. in which everybody can do the waste processing after getting permit from the government. Product The waste product that is recycled can be expanded to include other types of waste. Providing cheaper raw materials needed for home industries (garment). A.108194040.108194040. mainly Jakarta.18/2008.B. Notwithstanding these considerations. we have developed a B2B marketing strategy. The Environment (Macro – PESTEL Analysis & Micro – Porter’s 5 Forces Model Analysis) PESTEL Political : Indonesia’s government. Therefore. has a big problem regarding waste Economic: There’s an increasing demand for downstream industries product (https://www. Environmental : improving environment condition by processing waste (increase in waste consumption) Porter bargaining power of input : low bargaining power of output : plastic (high). Social : 4% (400.c2E).co%2Fnews%2Fread %2F141224077%2Fri-masih-impor-kertasbekas&usg=AFQjCNF0sSFrm5XDeddHA0U1gY82bO5G6g&sig2=iq_U3tscLaE741iIfnZo6A&bv sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=0ahUKEwjHlcD_vabJAhXH Po4KHUCzBE0QFggaMAA&url=http%3A%2F%2Fwww. mainly plastic product and paper pulp (https://www.d. depending on the availability. we will define the target market. we found that our target market. paper (low).google. Market Size easy to get alternatives).com currently only focusing on three waste products to collect. based on our value proposition in the upstream recycling sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=0ahUKEwi51q_ovabJAhUIG o4KHUz4Aq0QFggaMAA& %2F7336%2FIndustri-Plastik-Terbatas-KapasitasProduksi&usg=AFQjCNHphayfGcv09V9zqWiQZRumJ829Eg&sig2=UQ1ybmMTtzeaGwx3fFrGp A&bvm=bv. the system is already in place through this business model. Marketing Plan In the marketing plan for Otong. fabric (medium-low) new entrants threat : high (very easy to enter) substitutes threat : plastic (high. which will scope the nature and extent of our marketing strategy.  Paper All wasted paper will be collected and recycled to be pulp Otong.d.go. volume and cost to collect these items. process and resell to the market:  Plastic The Company collects for all kind of plastic from scavenger’s community and process the waste product into plastic pellets. its characteristics and attributes. recycling industry in Jakarta. paper (medium).

for the input and for the output. Otong. Place (distribution channel) The main concept of Otong. etc) to be sold at the marketplace B. which will consist a warehouse as input. input (collecting). processing. The garment part will consist of a washing pool (which can be used together with the plastic). As the company need to educated and do promotion to promote Otong. which will consist of each subtype of the waste (p/p/f). Facilities Single/multiple facilities : back office. shredder. Otong. we divide into two kinds of promotions:  Otongers – we will open workshop to educate the scavengers regarding recycling product and business process through Market Fair and movable big screen (layar tancap). factory like installation for the processing part. or other garbage collector. Promotion We have deep marketing networks in low income communities that give us the capability to collect waste from what are mostly inaccessible locations for bigger recycling companies. The plastic part will have a washing pool. and sorting area. . The factory will consist of three parts (p/p/f). as long as the waste has been sorted according to our terms. These “informal” networks are ground up and do not rely on new infrastructure. output (storage and delivery) ideally all of the units are in 1 place. etc. and paper pressing machine. The back office will have a working area and data storage facility. Operation Plan A. Each of respective part will be divided into three parts. The paper part will have a sorting will promote the products through website and social media (Facebook. B. pajama. drying area.) D.) and sell with 5% lower than the market price.  Customers – to aim users and small medium is to have a direct sales to industry for plastic and paper industry and sell to small medium enterprises (UKM) for fabric products (floor will always buy the waste products 5% higher than competitor and sell the process product 5% lower than the market price C. Twitter. and melter. Kaskus. and there will be a specially designated place for the type of waste we can’t process. and returned to the same warehouse for storage The warehouse will be divided into two parts. Pricing Strategy The company main strategy is to cut the distribution line to bring more incentive for the scavenger’s community. This will be the place for the managers to work and control everything. Fabric Fabric collected by scavengers to be process in the workshop into good products (floor mate. Operations Collecting (walk-in / trucks) We will collect the scavenging result from the scavengers in hot spot area using trucks that will have a fixed schedule so the partners will be able to prepare and wait for the pick-up to be made. We will also accept a walk-in delivery from scavengers. V.

Skills and competencies required by each division has a uniqueness and specialization of each in accordance with the description of the task performed.Another source of waste will be industries that has plastic. management role We will need some people to manage the whole process. After that they will be dried on the drying area then sorted according to size and colour. starting from admin for the input. After that we will put them into the shredder which in turn will be put into the melter to produce plastic pellets. and also the scavengers. Operational team consisting of sales & marketing division and production division. paper. There will also be a special place to store the waste we can’t process. We split our team into two parts. fabric) plastic: the plastics we have received will be sorted and washed. We will also collect waste from them. fabric: The fabric will be washed. The Entrepreneurial Team In the formation of the team for this business. Sales & Marketing Division . there are some skills and competencies required. 1. a different type of trucks (closed. Each part will store the materials according to the type of the waste/product. namely the operational team and support team. paper: The papers will be sorted according to the already established grading system. processing (plastic. C. garment industries. paper. such as offices. Support team consisting of finance and accounting division and human resources divisions. Human Resources and Entrepreneurial Team A. Key Resources waste (p/p/f) relationship with collector. supervisor/operational manager for the processing. We will also need a relationship manager to manage the relationship with the collectors and other sources. other sources relationship with product user consultant / trainers machines D. the input and output part. etc. Key Partners input: industry with p/p/f waste (including home industries) collectors communities output:industry that use p/p/f material (including home industries) communities VI. or garment waste. and another supervisor/ sales manager to handle the delivery. and then they will be pressed together to save space. storing and delivery Storing will be divided into two parts. For delivery. such as box trucks) will take the goods from the storing area and send it to the customers.

paper. Placement of employees who have expertise related to the field of work will also be undertaken to achieve optimum performance. b) Working in a different social environment (i. c) Handle conflict. cooperating with the bank for receiving payments received from customers. transaction payments. and assessing employee performance. System of centralized decision-making is done while providing the freedom of each division to provide ideas and decisions for the division. Each division is expected to participate actively in providing input and advice to the management and the company. the management is committed to provide regular training to improve the competence of employees.This division is responsible for determining variants of the product to be sold. prepare financial statements and perform budget control and manage purchasing. Production Division This division is responsible for coordinating with supplier in term of raw material supply (plastic. to pay the salaries of employees. fabrics). provide excellent service to customers. selling products online and offline. Competencies required as an operational are as follows: a) Understanding the production business process and machine operation. Competencies required as a finance and accounting are as follows: a) Managing Cash and Bank Administration and managing Petty Cash b) Managing Purchasing Administration and Sales Administration c) Managing Debt Administration and Accounts 5. Management style performed by companies adopting a more participatory leadership style. B. which identifies a conflict situation. cooperation with plastic and paper manufacture company in Indonesia. able to handle customers and colleagues’ misunderstandings due to different backgrounds).e. Competencies required as a sales and marketing are as follows: a) In collaboration with colleagues and customers that can be implemented by means of communicating in the workplace. implementing ways of handling conflict and responding to customer complaints 2. For the development of employee skills. Competencies required as a human resources are as follows: a) Ability to create entrepreneurship culture in the workplace b) Aligning functions and human resources planning c) Build innovations to improve organizational performance d) Establish standard operating procedures in human resources management e) Ability to develop people skill through training. Finance & Accounting Division This division is in charge of managing the company cash flow. making employee training plans. and also produce finished goods from fabrics waste. Human Resource Division This division is responsible for the recruitment of employees. running the production process from raw material to semi-finished material. how to communicate with customers and colleagues with different backgrounds. . 4. as well as providing information services and handling customer complaints. b) Having a guiding effective planning for production planning and inventory control c) Understand the uniqueness of raw material so can be produced in proper way. Organizational Culture The organizational structure is lean business structure to reduce the bureaucratic chain. coaching and mentoring. to prepare the necessary infrastructure company. working with the standards and can work in a team.

B. A.In line with the plan fulfillment of labor based on an organizational structure that has been set up. Sales Forecasting C. Financial Plan A. Hyphotesis and Assumptions B. Income Statements D. the company will also provide compensation in accordance with the expertise and performance results. D. Other benefits provided include health insurance. Financial Sources VIII. Breakeven analysis and profitability E. VII. C. Control and Performance Assessment Financial Perspective Customer Perspective Internal Business Process Perspective Learning & Growth Perspective . incentives for existing employee.