Victor Mari C. Baguilat Jr.

MRR PROPOSAL
I. Post-covid Business Model Innovation for Kandama Social Enterprise
II. Rationale

According to the NGO Indego Africa, the global artisan economy is a $34 billion per year industry and
it is the second largest employer in the developing world, behind agriculture. Empowering artisans—
and especially women—is a powerful way to drive economic growth and sustainable development in
communities around the globe. Hence, Kandama Social Enterprise aims to eradicate poverty in
Kiangan, Ifugao by providing additional livelihood in the traditional practice of handloom weaving to
indigenous women in Julongan village, Ifugao.

Kandama introduced product innovation by transforming the handloom woven fabrics into couture
garments that have been featured in Parish Fashion Week, New York Fashion Week and other
global fashion platforms.

In 2019, the poverty incidence in Kiangan, Ifugao based on a Community Based Monitoring Survey
(CBMS) is 43.35%. This is an improvement by almost 10% from the 2015 data when the poverty
incidence then was 54.92%. However, given the disruption caused by the pandemic to the economy
of Kiangan and to the global economy in general, the poverty incidence is expected to increase.

Because of the pandemic, Kandama’s show in Toronto and New York were cancelled. Moreover, a
TV show by New York-based producers that will feature Kandama will be pushed back to a later date
for the same reason. Given the changes in the global landscape, a business model innovation should
be introduced in order for Kandama to thrive in a post-Covid scenario. The said business model
innovation may be applied to other segments of the artisanal industry.

III. Goal and Objectives

Several social enterprises like Kandama help integrate artisans into the global economy by bringing
their products to the international market and providing them with fair, consistent income for their
work. The goal of this paper is to generate a business model innovation that will ensure the
sustainability of Kandama Social Enterprise and similar organization to continue with its mission of
providing livelihood to artisans.

The objectives are:

1. To identify the strengths, weaknesses, opportunities and threats to the Social Enterprise
and the global artisanal industry;
2. To scale the impact of Kandama social enterprise
3. To generate a resilience plan that can be used by other artisans and indigenous
communities

IV. PROPOSED OUTLINE

I. Executive Summary

II. MRR Research Proposal

a. Statement of the Problem
b. MRR Thesis Statement
c. Research Framework
d. Research Methodology
e. Review of Literature

III. Part 1: Situational Analysis

a. Global Artisanal Industry
i. External Analysis
ii. Internal Analysis
b. Kandama Social Enterprise
i. External Analysis
Victor Mari C. Baguilat Jr.
ii. Internal Analysis

IV. Part 2: Business Model Innovation

a. Logic Model
b. Business Model Canvass
c. Business Model Innovation
d. Strategic Options
e. Cost-Benefit Analysis per Option
f. Recommended Strategy

V. Part 3: Strategy Implementation Plan

a. Operating Plan for Selected Option
b. Organization Plan
c. Budget
d. Contingency Plan
e. Monitoring and Evaluation Plan

VI. Bibliography
VII. Annexes

VI. SCOPE AND LIMITATION

While this study may find applicability in other businesses in the artisanal industry, this study focuses
Kandama Social Enterprise and its community of weavers in Julongan village in Kiangan, Ifugao.

Due to the unprecedented occurrence of the Covid pandemic, business models and case studies on
resilience measures for a post Covid environment are limited. Moreover, access to primary data is
also constrained by social distancing measures.

VII. METHODOLOGY

Qualitative methods of data gathering such as interviews and focus group discussions will be utilized
for this research.

Key partners will be interviewed such as the Philippine Textile and Research Institute, Society
Fashion Week New York, global indigenous designers, etc., in order to identify the innovations that
are planned to be implemented in a postCovid scenario. Moreover, insights from customers will also
be generated through interviews to validate secondary research by think tanks in the fashion
industry.

Content and thematic analysis will be observed in constructing the logic model, and the business
model canvas. The Cambridge Business Model Innovation process will be used as the framework in
constructing an innovative business model that explains how Kandama Social Enterprise can create,
deliver and capture value for its clients.