Inclusive business model in tapioca starch industry in Lake Toba area: a case study

摘要

The notion of inclusive business calls for additional focus and innovation in the way companies do business which seeks to contribute to poverty alleviation by including Bottom of the Pyramids (BoP) communities within its value chain while not losing sight of the ultimate goal of business. Lake Toba Area has potentials in providing chances for doing businesses. On the other hand, the growth of market size is rather slow and demographically still dominated by BoP. This is a case study which seeks to investigate to what extent the Inclusive Business Model (IBM) is adopted in (he strategic planning and applied in the operational management of companies that operate in Lake Toba Area. The study was conducted in qualitative basis. The observation was conducted by gathering data and information through a series of interviews with the top management and desk study of the business plan in a tapioca starch industry in Toba Samosir Regency. The collected data and information were then analyzed qualitatively by comparing them with criteria and parameters of IBM suggested in a vast body of literature. The reference by which the IBM is referred in this study is a series of criteria which is synthesized from a literature review on a vast body of literature about IBM. From data analysis, it is evident that IBM has been incorporated in the strategic plan and applied in the operational activities of the object of this study. However, we also found some rooms for improvement such as expanding the involvement of BoP in their value chain as consumers, by which some innovation in the product diversification is required.