CASE STUDY.

ANT FINANCIAL: FLOURISHING FARMER LOANS AT MYBANK

Introduction

Flourishing Farmer Loan Program- an effort to extend

financial services to rural China. A bank program targeted

customers who had no experience with banking. In March 2014,

MYbank was created after the regulatory approved to create online

banking. MYbank was initially authorized to make loans but not to

accept deposit. MYbank was an offshoot of the Alibaba internet

empire founded by Jack Ma (Ma Yun). Ma had built Alibaba's online

platform to bring buyers and sellers together in China. With the

success in facilitating online transaction, it began offering

financial services. Ant Financial Services group was born, that

was first organized under Alipay that was spun out from Alibaba

group. With the welcoming of new banking models that could

increase available capital for private entrepreneurs and

encourage economic growth, China Regulatory Commission is still

in cautious.

Statement of the problem

How could the newly banking method could thrive and how

could the program succeed with the mean of Internet in the rural?

Analysis of the area concerned

To start up with something is a little bit crucial. Any

wrong decision could ruin anything and waste everything.

Effective planning should be done in order to succeed, every

detail should be noticed. A little bit error shouldn't be just

set aside and ignore. With that, any proposal or suggestion in

accordance to start up with something should be studied and

planned well. In this case, with the creating and designing of

Flourishing Farmer Loan Program, it face a number of challenges.

1.)Identification of a good credit for small loans. MYbank's use

a big data and algorithmic approach to identify good credit but

there is a risk in a way that small loans can't incur the expense

of multiple loan officers and bricks as well as mortar branches.

It shows that there's still possibility of failing and doubt with

the creditor if the performance within the data doesn’t reflect

with the actual presentation of loan.

2.)The projected target. The Flourishing Farmer Loan Program

projected the rural area as their main target or costumer to

avail in their program. Rural area are still on development and

growth, with that, having the rural area as the projected for the

program leave the back officials in uncertainty. For being far

from main city is also a factor.

Conclusion

Inimical response and result could happen. Whether you

like it or not, negative things may occur and we can't deny the

fact that everything has its pros and cons. But, it doesn't mean

that we can't do anything about it. Change is inevitable, change

is constant. There maybe a lapses on it but it doesn't mean it

cannot be corrected and filled it up. In response of the economic

growth in the rural area, many strategy and recommendation has

been filled and tried and one of this is the action of the bank

which they called- Flourishing Farmer Loan Program. It is

intended for financial services in rural China. But lapses and

doubt are present such as the credit-worthiness regarding of the

algorithmic approach and data to base the creditor and the factor

of the projected target. Despite all of the lapses and doubt,

banks are still not safe of taking the risk. Therefore, despite

all of the problem regarding to the program, it is still being

thrust to reality to help the economic growth and financial

aspect of the rural areas.

Recommendation

To all the businessman, entrepreneurs and to everyone who will

start an online banking loan;

1. Clear and more specific negotiation and understanding how the

program will run so that there will be no conflict within the

costumer or the target and misunderstanding that may result to

declining of costumer from the offer;

2. Performance of the employee, credibility and good promotion.

Employee should treat employee in a friendly manner in such that

they will not feel or treated unfair and ignored. A good

promotion also affect the outcome and result of a program or

project, a good promotion, the more the costumer will be attract;

3. Trust Receipt. They said "great power comes with a great

responsibility". In this case, every costumer who will loan

should be aware of their responsibility and that responsibility

will be strictly reminded by it.

CASE STUDY. COFFEE 2016

Introduction

Coffee is loved by mostly of us. It is undeniably that many of us

treat coffee as part of our daily lives. Coffee started to brew a

long time ago and we can notice some improvement and changes of

how we take coffee. Despite all of this, coffee don't get so much

demand and growth in the market, improvement and changes are

slow. Andrea Illy is CEO of the global premium coffee that bears

in his family name. Illy has a dream that someday soon the coffee

market might be transformed into something approaching the market

for wine. Unfortunately, the current contract coffee market

differs from such an ideal. Coffee growers in most part of the

globe work at very barely substance level. As yet, specialty

coffee represented a small silver of the overall market and there

were other signs that it might not ever grow beyond a small

circle. Illy's hope is that someone would come up with innovation

that would solidify the beginning and reshape the coffee market

and most importantly, to make the coffee supply chain more

equitable and coffee better-tasting.

Statement of the problem

What are the best step to take to help the coffee market grow?
Analysis of the concerned area

Change is not an overnight process. To make the dream to reality

it should be planned, examined and should be executed or

performed well. With that, there are things need to be considered

and focus more on. To think outside the box is needed. In this

case, the things being concerned about are;

COFFEE GROWERS- as being stated above, the coffee growers work at

a barely substance level. One bad harvest (made all the more

likely by the ravage of climate change). Even in good times,

grower have little incentive to improve their operation- only

have minor contact with the roasters or costumers. Growers did

not give that supports and help in their farm. They are given

less focus or sometimes having no attention at all. They do not

have also knowledge how their crops be converted into cup.

COSTUMERS- The disadvantage and the problem doesn't stop there.

Costumers also pull the growth of coffee market. In such that,

they know or it is hard to find a good source of good and high

quality beans.

ROASTERS- they are the one who produce and convert beans to

coffee. But how can they come with something big if a big wall is

in between with them and the growers?

Conclusion

A well coordinated plan will lead to something good. There is a

saying that "to kill a tree, you must first kill the root". In

this case, coffee market will not be reshape and will not be
change if it will not focus on the root or beginning. Without

grower, there is no coffee bean that will be distributed. But, it

shouldn't be stop there. Anything that is good came first from

beginner and young. In order to make a good quality bean, grower

should learn and have enough knowledge from growing of crops to

harvesting and up to marketing. In order to improve their crops

they can experiment and come up to something with different

varieties of beans or crops. Afterwards, costumers who don't have

any clue and idea where to get a good quality bean will be aware

and may come to try and invest with a coffee business. With

regard to that, coffee business may be reshaped because of the

demand of the good quality beans that the growers produced.

Recommendation

1. As Andrea Illy has the passion about coffee he his self can

help the grower to be more knowledgeable and help them to come up

to different varieties of beans that people never tried before.

2. There are already transformation of coffee market that been

already started and he is also on his third wave of coffee

transformation which about every coffee came with a story of its

origin and growers could count on occasionally eye-popping

premiums for their beans which is a good start and it should be

focus more and should be introduced to the market in a strategy

of advertisement with the help of mass media technology.

3. Think outside the box. You should not only focused on things

you already implemented instead try to have more ideas on how to

enhance, develop and market the product.