"Business & Society"

Prof. Susan C. Schneider Jernimo Caldern

Master of Science in Management 2012-2013 University of Geneva

DINDA Laila Sukma FRATALOCCHI Mlissa KPPEN Bianca RASORI Vanessa TSANG Ching Yee Kathy

Executive Summary
Going Global Indonesia is a non-profit association with the aim to teach languages to and share international culture with our target beneficiaries, who will be high-school students in Indonesia. We encourage our stakeholders such as the volunteers, business partners and donors to participate and contribute to the project and thus ensure the effectiveness of the social impact. Currently, we partner with Yen Marketplace for project development coaching and AIESEC Geneva as a volunteers source. We believe that many more active partners will join as well. We identified a number of competitors in our main activities such as LiveMocha.com, British Council, and Khan Academy, and are confident to say that our philanthropic project will be sustainable. Further, we will teach not only to students but also to the existing teachers that will allow robust social impact on the society through continuous and sustainable provision of language skills. Each participant, i.e. the volunteers, the management and the beneficiaries, will face several processes of selection such as the filtering, preparation, main activity and review. All processes are transparent and allow surveillance from any interested stakeholders. Looking at the milestones plan, at the first year we will establish the association and register in the canton of Geneva whilst we will perform the filtering and preparation activities. The pilot project will be started in August 2013. In the second year, we plan to expand our project by covering more schools and invite more donors from both Indonesia and Switzerland to join us. We will perform review and surveillance to adapt for the better implementation. In the third year, we will have a periodic review, search for more schools, and invite local and international companies as well as partners to become donors. We have created a budgeting plan for one year operational cost. With the total of 67.000CHF per year (see Appendix 3), we are looking at building the young generation in Indonesia to be multilingual and internationally exposed individuals that will be welcomed in the international market with their wide-open hands.

Table of contents
1. Market research ...................................................................................................................... 1 1.1 The Market ....................................................................................................................... 1 1.1.1 Demographics ............................................................................................................ 1 1.1.2 Education ................................................................................................................... 1 1.1.3 Tourism ..................................................................................................................... 1 1.1.4. Estimation of market size ......................................................................................... 2 1.2. Beneficiaries .................................................................................................................... 2 1.2.1. Schools ..................................................................................................................... 2 1.2.2. Students .................................................................................................................... 2 1.3. Competitors ..................................................................................................................... 2 1.4. Current partners ............................................................................................................... 3 2. Vision, mission, objectives and activities .............................................................................. 3 2.1. Vision .............................................................................................................................. 3 2.2. Mission ............................................................................................................................ 3 2.3. Objectives ........................................................................................................................ 3 2.4. Activities ......................................................................................................................... 3 3. How we will deliver our service............................................................................................. 3 3.1. People .............................................................................................................................. 3 3.1.1. Management team .................................................................................................... 3 3.1.2. Local office in Indonesia .......................................................................................... 4 3.1.3. Volunteers ................................................................................................................ 4 3.2. Partners ............................................................................................................................ 4 3.3. Process ............................................................................................................................. 5 3.3.1. Management process ................................................................................................ 5 3.3.2. Volunteers process ................................................................................................... 5 3.3.3. Beneficiaries process ................................................................................................ 5 3.4. Milestones and future steps ............................................................................................. 6 3.4.1. 1st year ...................................................................................................................... 6 3.4.2. 2nd year ..................................................................................................................... 8 3.4.3. 3rd year and further ................................................................................................... 8 4. Financial projections .............................................................................................................. 8 5. Legal issues .......................................................................................................................... 10 Appendixes ............................................................................................................................... 11 Appendix 1 ........................................................................................................................... 11 Appendix 2 ........................................................................................................................... 12 Appendix 3 ........................................................................................................................... 13

1. Market research
1.1 The Market 1.1.1 Demographics Indonesia is a country of 250 million people, making it the 4th most populous country in the world (as of July 2012). 12.5% of these people live below the poverty line (2011). The country still struggles with poverty and unemployment, inadequate infrastructure, corruption, a complex regulatory environment, and unequal resource distribution among regions (CIA, The World Factbook).1 1.1.2 Education The most widely spoken language is Bahasa Indonesia, together with a high number of local dialects. English is taught in the school curriculum, sometimes since the first 6-year educational cycle (6-12 years old). However, it is not commonly spoken on a daily basis. Other foreign languages such as French, Spanish, German and Italian are not commonly taught in the first 9-years curriculum. Some schools offer this option during the Senior High School level (16-18 years old), but it still depends on which type of school the student goes to (World Bank and Education in Indonesia).2 1.1.3 Tourism Tourism in Indonesia is an important component of the Indonesian economy as well as a significant source of its foreign exchange revenues. Tourism has been growing steadily in the past few years. In 2011, the number of international tourists visiting Indonesia reached a peak of 7.65 million people, an increase of 9.24% compared to the about 7 million in 2010. Setting the length of stay at 7.84 days, the average spending amounts at US$1,118.26 per visit. Most of the tourists are Singaporeans, Malaysians and Australians. From the information provided above, we can see that teaching a language to the Indonesian youth can make a real impact. As an increasing number of tourists are coming to Indonesia, tourism is still growing. In a developing country like Indonesia, tourism is the basis for economic development and essential to boost small local businesses. Therefore, it can significantly contribute to improve the country. As English is a language frequently used in tourism, it is then essential to be learned. Moreover, English nowadays is also used in commerce and international relations, so it is an important asset to have on your CV. Apart from English, other foreign languages can also improve the future of young Indonesians, by allowing them more opportunities in terms of career as well as opportunities to go abroad or work for an international company. For this reason, our project also involves the teaching of other foreign languages, like French, German or Spanish for example. Overall, our venture addresses a real and important need in the Indonesian society and economy. Languages are needed to improve education, and thus reduce poverty through better professional and life opportunities. This program will benefit in particular students from low-

https://www.cia.gov/library/publications/the-world-factbook/geos/id.html

http://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/EASTASIAPACIFICEXT/0,,contentMDK:231 87196~pagePK:146736~piPK:146830~theSitePK:226301,00.html

income families, those who usually can not afford the best schools or pay for some extra curricular language courses. 1.1.4. Estimation of market size We intend to accept 15 students in each school for each session. Based on what research suggests and on our personal experience, this class size will encourage better a learning process and interactive lessons. We think that with an increase of minimum 2 schools registered every year (first year =4 schools, second year= 6 schools, third year= 10 schools) and classes with 15 students, we might reach up to 300 students for the first 3 years of operation. 1.2. Beneficiaries 1.2.1. Schools We are targeting two schools for the first semester and an increase of two more schools in the second semester of the first year. The targeted schools are required to have internet access and be in possession of a projector, sufficient computer units, headsets and microphones. Once our association is settled in sustainably, we will try to provide necessary equipment through the collection of commodity donations. With the target to sustainably cover especially the less developed areas in Indonesia, we believe that the project has the potential to expand to more schools even quicker in the years to come.

1.2.2. Students We will initially target 15 students in each school and a total of 60 students in the first year, 90 students in the second and 150 students in the third year. The students willing to take part in the language classes will have to be registered as a high school student with good grades, interested and motivated in learning foreign languages, getting to know new cultures and broadening their personal horizon. Therefore, we will implement a selection process to ensure the quality of our teaching through small classes. These students will be between 14 and 18 years old. 1.3. Competitors Live Mocha (www.livemocha.com) offers an interactive language teaching for anyone online with tuition fee. With the same concept on Internet interface and interactive learning, our project offers sponsorship for the students and schools to ensure that these beneficiaries focus on studying rather than trying to find ways to pay their education. British Council offers free English course (www.britishcouncil.org/english). The current challenge lies in the teachers quality and their confidence to pronounce the language perfectly. Our project offers the same free English learning aims for the regular English teachers. Hence, we help them to continuously improve and sustainably provide this perfection to the students. The closer competitor is the Khan Academy (www.khanacademy.org) that offers free video and interactive learning for various types of courses, but this excellent platform does not offer language courses on their list. This constitutes our competitive advantage over the Khan Academy.

1.4. Current partners YEN Marketplace provides their in-kind contribution to this project as the coaching provider for project development with a duration of 12 months sessions for the associations members and management team. AIESEC agreed to provide us with volunteers who will consist of enthusiastic students from around the world that are eager to take part in this project and collaborate with teaching to young Indonesians.

2. Vision, mission, objectives and activities

2.1. Vision To create opportunities and mobility for Indonesian youth in a global society through proficiency in foreign languages and expanding their knowledge of other cultures 2.2. Mission We are a non-profit organization that aims at intermediating language-knowledge transfer and cultural familiarization to Indonesian Youth by engaging global community with various backgrounds, through the spirit of volunteering. 2.3. Objectives In three years time, the young Indonesian participants can communicate in more than one foreign language and the teaching quality of participating English teachers in the high school level will increase, both verbally and in writing. 2.4. Activities The main activities to achieve objective 1: Students communicating in more than one foreign language 1 level increase on foreign language skill in 90 hours course 2 hours/week long-distance course in 2013 15 students in for each one pilot school in 2013 6 volunteers for the project in the pilot school in 2013 An increase of 1 school project/year. The main activities to achieve objective 2: English Teachers increase their English level Ideally, one English native speaker to partner up with one English teacher Tandem session twice a week for 3 months One session of in class interactive discussion from the partner each month for 3 months

3. How we will deliver our service

3.1. People 3.1.1. Management team Geneva Office In order to constitute the management team in Geneva, we defined jobs in different areas: finance, operations, information systems, business development and education. Chief Manager: In charge of the project and its operations. Coordinate the team in both Geneva and Indonesia, monitoring of the managers.

Financial Manager: In charge of accounting and budget controlling. Operations Manager: The link between schools in Indonesia, the volunteers and the team in Geneva. Information Manager: Aims at building the Website and the Facebook page and updating them. So they monitor the marketing channels. Business Development Manager: Supervise the different partners: donors and B2B partners. Education Manager: Handle the teaching material compilation and of the sessions scheduling.

3.1.2. Local office in Indonesia Local team leader will liaise with the schools and students, but also with local government. He will keep the Geneva team updated.

3.1.3. Volunteers The volunteers will be students, teachers, and more generally people from different backgrounds with a good level in one language offered in the project at least, (high proficiency or native speaker). How to find them? Thanks to social networks such as Facebook, our GGI Website and advertisements, we hope to reach a wide spectrum of people that will be interested to volunteers for our association. We also involve associations (student associations, volunteers associations). To select volunteers, we will establish a process comprising selection and interviews. It will be complemented later with continuous training and control.

Value Proposition: Why should they join us? Personal development: Indeed, it is a human and rewarding experience to be part of a social project where you can share your knowledge. Professional development: Volunteering in our association is a real-life teaching training for the volunteers and opens the opportunity to grow personally. The teachers will have to speak in front of a bigger public, which is the school class. Moreover, a volunteering certificate will be provided in the end of the commitment. In order to ensure the quality of teaching of the volunteers, we will strictly select volunteers and provide teaching trainings, so they can deliver good quality of teaching. 3.2. Partners To support all our ideas of setting up our association, getting attractive towards students and schools and establishing stable financing, we want to establish a network of partnerships. Our primary partners are the Indonesian schools to get in contact with students and hold classes regularly. Next to this, we will have strategic business partners who can help us with our business operations. These will be a language school to get a teaching certification, the AIESEC student association who help us in recruiting volunteers, journalists who want to write for our website and local clubs whose support help us in accessing an international

network of donors and contributors to businesses with a good cause. Our third group of partners will be the sponsors for the teaching fees, donors of commodities such as computers, microphones and other equipment, associations who want to engage in the classes. The latter could be associations that care for language and improvement of speaking (example but not specific to the international Toastmasters community). They could hold guest speeches during the class or make available recordings from their international speaking competitions for training purposes. 3.3. Process

All operations will be internet-based through a website: a domain name has already been bought, which is www.goinglobalindonesia.com (see Appendix 1). As previously mentioned, there are three main actors, which are the management team, the volunteers and beneficiaries. 3.3.1. Management process The management is responsible of raising funds, preparing the teaching material and conducting the volunteering selection process. 3.3.2. Volunteers process The volunteers sign up online, through our website. Interviews will be conducted in order to filter the best profiles. There will be a training of volunteers, and a coaching session. Then, they will have access to the teaching material and an online schedule will be organized, making transparent the availabilities of each person to the others in order establish the teaching timetable. All this will help the volunteers to be ready to teach. 3.3.3. Beneficiaries process Schools (see Appendix 2) will have to register with our association. After the registration of the schools, the students that are interested in will have to prove their motivation because the class will be limited to 15 students. 3.3.3.1. Online interactivity Thanks to the internet, our project is highly feasible. Through Skype or similar providers, all means of communication such as video calls and video conference are employable. We will use e-mails and projectors to receive, correct and send back the students homework. Our project will support the improvement of the language skills of our students through active participation.

3.3.3.2. Offline study We are aiming at improving the students grammar, writing, listening and speaking capacities through our classes online. In addition, homework will be given to students for offline study. 3.3.3.3. Measurement Our final goal is to also prepare those students who are interested in taking a language exam to get their qualification from a third party language proficiency (IELTS, DELF/DALF, etc). 3.3.3.3.1. Before the course English: We will evaluate their scores before/after the classes. The scores will come from the usual tests that they will have in their normal classes.During the course In order to measure the impact on students, we will keep track of our pilot students to evaluate their progress and their improvements in their language skills. English: Since we come as guest speakers, the English teacher in Indonesia will be in charge of testing his/her students as it is usually done in their class. Other foreign languages: We will evaluate the students language progress throughout the whole process. We will check their improvements in their grammar, listening, writing and speaking skills. Their homework will also be a proof of their improvements. 3.3.3.3.2. After the course All: As a final evaluation the students will take a language exam/test of their choice. As a proof of our impact on the language skills, we would also establish our own test. The ultimate evaluation from a more long-term perspective for all the languages we will teach, will be an assessment of whether the language skills/certificates were eventually beneficial for them to get good jobs. It is necessary to compare if our training helped them to attract job offers, go abroad or achieve other personal goals. To estimate this, however, calculating that we are targeting 14-18 years old, we will need a couple of more years to evaluate the social impact which our teaching provides to these young Indonesians. 3.4. Milestones and future steps 3.4.1. 1st year For the first year, we plan to find a committed founding team of personnel and professionals from different backgrounds. This includes professions that cover all of our needs for the project in the short term: teachers, IT specialists and business experts amongst others. Setting up the association and make it official and recognized in both Switzerland and Indonesia is one of the priorities for the first year as well. We will make sure to establish contact with all of the necessary stakeholders: Potential customers in our target market Potential private and corporate sponsors Indonesian community to get feedback and spread-of-word Respective Indonesian government representatives to ensure support for the project. As for the schools in Indonesia, we plan on finding a pilot establishment and then look for a team leader in Indonesia to establish and maintain our relationships with the school.

Also, finding enough funds to support the project is essential, so we ensure short-term financing at first, to make the association viable in the first year. At the same time, we will be looking for longer horizon funding too. For the first year, we will perform business on a low-scale in order to ensure sufficient buffer for trial and error. It will allow us to learn from the challenges we will be confronted to, and adapting our structure or processes if needed. 3.4.1.1. Project Management Time Line Getting Started 1 2 3 4 5 6 7 8 Association Board Member filter Job Position Website purchase Website development Association registration preparation Association registered Geneva office Monitor School Finding Establish contact Filter and Interview School is found Teaching process School Certification List potential donors Establish contact Communication Agreement Donors Monitor List potential Partner Establish contact Communication Agreement Partner Monitor Find representative Local Team Filter and interview Leader Representative found Advertisement Recruitment process Filter and Interview Volunteer is found Training Scheduling Native speakers Teach

Detail

9 10 11 12

Management

Beneficiaries

Partnership

Volunteers

3.4.2. 2nd year As for our goals and milestones in the second year, our main focuses will be to develop, improve our activities at every single level and expand our relationships with the stakeholders. Indeed, we will expand the quantity of schools, continue the recruitment of volunteers and provide them with professional teaching training. We will strive for a constant improvement of our teaching materials as well. We will expand our business network and build new or stronger relationship with both local and global associations of non-profit organizations. This will allow us to promote the association, get recognition and facilitate future fundraising. Also, we will reinforce our affiliations with our direct customers, by involving them in the assessment of our services. This permits us to develop our relationship with them, and at the same time improve the quality of our services. A particular attention will be paid to the indirect customers as well: we will establish business partnerships to learn about their needs and align with them. We will make sure to continue the development of our business processes too. We will do so by doing a comprehensive monitoring of our activities and their results, in order to ensure the satisfaction and establish loyalty. 3.4.3. 3rd year and further Regarding the goals for a further horizon, we will strive for financial stability by obtaining fundraising from corporate and private sponsors, in order to ensure a more secure budget. We will also keep on reaching out to more schools and continue the recruitment of volunteers. Given the experience we will have acquired, we plan on expanding our services and teach a broader range of languages, according to the needs in Indonesia. Also, we will continue to strengthen our relationships with local and global associations, NGOs, companies, governmental entities, etc. We will ensure to improve our customer's loyalty and satisfaction by continuously educating the volunteers and getting official teaching accreditations from various institutions in Indonesia, Switzerland or even Europe. All of these actions will enhance our reputation in the education market across the globe. All along the way, we will strive to learn and improve continuously in order to provide the best services possible.

4. Financial projections
Regarding our budget, we have estimated costs for the on-going business operations for the period of one year (see Appendix 3). The biggest part will be personnel costs of around 37.000CHF annually. We plan to employ an Operational Officer constantly in Geneva to coordinate the volunteers, do administrative tasks and keep contact with the Indonesian counter parties such as the schools, officials and Team Leaders. He will get constant support from the associations members. Further, we will employ two Team Leaders in Indonesia to coordinate our business locally. They are supposed to help us in the acquisition of new schools, building contact with the children, organize marketing campaigns and be active in social communities. In contrast, the teachers will not be paid. Our business concept therefore strongly relies on people with exceptional motivation

who seek satisfaction from teaching and working with people from other cultural backgrounds. Another block will be the overhead costs. These are composed of the office rent in Geneva, maintenance and improvement of our website, electricity and costs for high-capacity Internet. We assign around 20,000CHF per year to this. Further, we will have operations costs of 6,000CHF yearly. These comprise costs for computers, printers, stationeries, paper and projectors. For all these assets, we will also try to get commodity donations from our future partners to keep our operating costs low and be able to use monetary donations and future revenue to invest in the improvement and professionalization of our teaching activity. The last block of costs is composed of eventual costs for internal events for team building, teaching of volunteers or information events in schools. We calculate here around 4,000 CHF. The total budget we calculated for maintaining our business operations will then be 67,000CHF annually. Sources of finance Going Global Indonesia is intended to be a social business. As such, the associations health will depend on establishing one or more stable sources of income to generate constant revenue. In the very beginning, we establish a strong network of initial business partners and donors, as there will be a strong dependency on donations and business contacts. This approach is absolutely necessary to bridge the time until our revenue sources are implemented and well developed. Concerning possible revenue sources, we have spotted a set of options that can complement each other well. First of all, we intend to base the attendance of language classes on a membership fee. We deem that directly charging the students will not only generate a stable income out of the core activity our association pursues. Moreover, this will be an excellent tool for us to appeal to the students association of high value for good quality and connect it with the motivation and commitment to continuously participate in the classes and make progress in learning. Hence, it supports us in building a good reputation that leads to legitimacy and shows the absolute will of our association to sustainably commit long-term to the vision and mission. Regarding the fees, we consider charging stable amounts that are equal in the whole country. They will be oriented to the overall purchasing power in Indonesia. What might sound questionably at first, having in mind the unequal distribution of family incomes in Indonesia, will be our tool to approach our business partners: Students with a very low family income, whom we expect to live predominantly in Indonesias eastern islands, will be sponsored directly by our partners. This way, we can ensure a tangible value of our classes, sufficient student motivation, but also support for the students through avoiding high costs for them. At the same time, we hope that the sponsorship concept enhances competition among the students themselves, because available sponsorships have to be distributed according to certain criteria. Looking now through our business partners eyes, our student sponsorship can

be a very good opportunity to engage in sustainable CSR. A direct sponsorship for a defined number of students will be more tangible for the companys stakeholders than some amount of money, which is donated to an association. In return, we will mention our partners names and company logos exclusively on our website and annual business reports for our own stakeholders in Geneva and Indonesia. Next to the teaching fee and a sponsorship network, we aim to establish a lively website community using the homepage we already have created (http://goinglobalindonesia.com). This can only be achieved through very good web content. Our idea is to combine teaching material available online (such as audio files, additional texts to read, exercises and homework corrections) with lifestyle articles and curiosities from different cities around the world and gripping background information to relevant and late-breaking topics. We will write the articles, by the students (with our editing) and partnering journalists who are interested in writing for a new community and explaining their personal viewpoint on topics. The idea here is to make some of the content available exclusively for members of the communities. The membership will be free of charge for the students who attend our language classes. Once the website has a lively community, it can further be used for promoting cross-finance activities such as the agency for accommodation abroad. We deem it a very interesting concept to support mobile Indonesians who want to go abroad for short-term (for tourism, marriages, family celebrations) or who want to commence a long-term stay abroad in helping them find accommodation within the respective local community. These can be Indonesian families, but also supporters of the association. Going Global Indonesia in this respect would be the intermediate between the people seeking shelter and registered people who offer accommodation. This concept can be used internationally and is also interesting for people who want to go to Indonesia to experience the country and get in contact with locals.

5. Legal issues
GGI only follows the rule established in Geneva-Switzerland where it is registered. Partnership cancellation: Once partnership is established, the agreement will follow a 12 months partnership bond. Any cancellation from the partner may be made at least 1 (one) month prior the effective date with a penalty of 80% of the total partnership agreements value. GGI may cancel the partnership with 1 (one) month notice without any bearing any penalty.

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Appendixes
Appendix 1 Website screenshots of http://www.goinglobalindonesia.com

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Appendix 2 School registration as per January 2013

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Appendix 3 Financial Budget Cost Overhead Personnel Operation Others Total Business canvas Description Website maintenance, electricity, telecommunication, office rental 1 Operational Officer 2 Team Leaders on site Computer, printer, stationery, paper, projector Team building, Teaching of volunteers, Information events in schools internet, Estimation p.a (CHF) 20,000 37,000 6,000 4,000 67,000 Calculation

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