Results

Buglas Bamboo Institute

Improving the Bamboo Business Plan

About Buglas Bamboo Institute

Buglas Bamboo Institute (BBI) is a locally owned social enterprise programme focusing on bamboo product development through production and marketing activities. Dutchman Frans Klein Koerkamp founded the Institute as an NGO in 1999, which developed itself in a commercial, social enterprise. At Negros, there's an abundance of bamboo, and it creates a viable economic resource. After starting as a small workshop, the Institute has grown to a adolescent advocate of bamboo products in the Philippines. BBI produces bamboo houses/cottages, furniture & accessories and construction materials (e.g. poles and bamboo nails). BBI employs four management staff, 20 regular workers and 20 contractual/project based workers.

Business case

BBI requests for a team of experts on management & organisation and finance. It is preferred they have experience with operations management within a production environment. An analysis of the value chain will be a start, to work towards an improvement action plan of the operations (part of improving the business plan). After the programme an action plan regarding improving the operations part in a sustainable way is expected. Furthermore, many challenges have to be met, and it is preferred that these challenges are made concrete and are prioritized.

Results

Analysis

The group started the job with a profound analysis. Who are the stakeholders, what is the current situation, what is BBI good at, what does the market want? It turned out that the balance between People, Planet and Profit is uneven. The cost price calculation was not accurate, and it turned out that too much products were made on demand. Most of the products were sold at below-cost price level, which resulted in overall losses. The bamboo houses are the major source of income for BBI, but the client base has dropped significantly since 2008.

Advice

BBI was already working on improving the cost price calculation. Next to that, the advice given was to focus on a standardised product portfolio, with customisation for a premium. Expanding customer base to become less dependent on a single large customer was another advice given, and to hire a sales manager to expand the local market as well. In a nut shell, BBI is to change into a more profit oriented, demand driven organisation, to be able to sell their amazing, high quality and unique products in a sustainable manner.

Impact on the overseas partner

The change created during the programme was shown mostly on a strategic level. The insight in the current, critical situation was difficult, but it made it clear action has to be taken. The different roles within the organisation were highlighted and discussed, which made quite an impact. Currently, the discussions and suggestions made are implemented, or being done so at the moment (Q1 and 2 2009).

Follow up

After the DCDL exchange, time is taken to allow the advice to land and to be implemented as far as possible. During Q1, a plan is made on how to allow the Dutch consultants and counterparts from BBI to communicate best and make sure the possible questions are answered and feedback can be given. The motivation and commitment of both parties is high, as the DCDL exchange made its impact to last. Our management expert John van de Winkel will travel to the Philippines regularly in 2009 (and further), and will visit BBI as well, to assist if needed and requested by BBI.