PARTICIPANT INSTRUCTIONS

CASE STUDY

Without compromising its scientific value, this case study was developed from everyday
operational cases frequently encountered in the national education service industry. To
maintain the confidentiality of the companies and individuals involved, the names of the
companies, individuals, and company locations are fictitious and were created by the question-
writing team. The purpose of this case study is purely scientific and is not intended to illustrate
the abilities or limitations of the companies or individuals involved in carrying out their
activities.
 Ganasin Agricultural
University
Instructions:

As a member of a management consulting team appointed by Ganasin Agricultural

University (GAU), a growing private university in Central Lampung, you have been tasked
by the Rector of GAU to conduct a situation assessment. This assessment aims to identify
factors that may impede GAU's development into a university of excellence and a valuable
asset to the community. Your responsibilities as a consultant include:
1. Identify issues that could potentially hinder GAU's healthy growth and prevent it from
achieving world-class university status.
2. Outline strategic programs that GAU can undertake to pursue its goal of becoming a
world-class university.
3. Describe the strengths and weaknesses of the strategic programs you recommend to
GAU.

Remember to consider time frames and resources in your recommendations. You have a
limited time of 60 minutes to study the available information and complete your work.
Your final recommendations will be submitted to the GAU Chancellor for consideration to
enhance GAU's performance.

PLEASE REFRAIN FROM MAKING ANY MARKINGS ON THESE PAGES.

GOOD LUCK.
 Ganasin Agricultural
University

About GAU

Ganasin Agricultural University (GAU) is a private university under the auspices of PT

Juragan Nanas Indonesia, Tbk (PT Ganasin). The concept for GAU originated from Singo
Mangkudimedjo, the founder of PT Ganasin, who is deeply concerned about human
resources (HR) and technology development. He observed a deficiency in the
capabilities of human resources, particularly in agriculture, to meet the future demands
of the industry. Motivated by the substantial potential of the agriculture business in
Indonesia, Singo Mangkudimedjo decided to contribute to the enhancement of
agricultural human resources.

Through the Ganasin Foundation, responsible for managing PT Ganasin’s Corporate

Social Responsibility (CSR) funds, Singo Mangkudimedjo established Ganasin
Agricultural University in Central Lampung. The selection of the campus location was
strategic, considering its proximity to the largest pineapple plantation owned by PT
Ganasin.

In 2016, the Minister of Research, Technology, and Higher Education officially

recognized the establishment of GAU. The university maintains a focus on agriculture
and its supporting disciplines, offering educational programs through three faculties:

1. Faculty of Agriculture (FP) with study programs in Land Resource Management,

Agronomy and Horticulture, and Plant Protection.
2. Faculty of Agriculture Technology (FTP) offering study programs in Agriculture and
Bio system Engineering, Food Technology, and Agricultural Industrial Engineering.
3. Faculty of Economics and Business (FEB) providing study programs in
Management, Agribusiness, and Resource and Environmental Economics.
 Ganasin Agricultural
University
As a university dedicated to advancing the agricultural industry, GAU has a vision
and mission that guide its development:

Vision:
To become a world-class university in agriculture, supporting a sustainable modern
agricultural industry.

Mission:
a. Conducting quality higher education to produce exceptional agricultural human
resources.
b. Exploring the sciences related to the agricultural industry.
c. Pioneering the development of modern agriculture supported by superior
agricultural human resources.

Supporting this vision and mission, GAU also upholds values that form the cornerstone for
organizing the university. GAU’s values include:

- Clean: Managed with a priority on honesty and transparency in university

administration, grounded in good organizational governance.
- Responsible: Committed to exerting the best effort in performing responsibilities
and delivering work that is accountable and beneficial to others.
- Open: Willingness to embrace criticism, suggestions, and changes, with a
commitment to continuous improvement in performance over time.
 Ganasin Agricultural
University
- Professional: Supported by expert human resources possessing superior
competence, crucial for advancing organizational goals

Establishment Development Pioneering GAU

GAU of GAU as a of GAU as GAU into a World
university one of the world-class Class
Establishment focused on best university. Agricult
agricultural agricultural ural

infrastuctur curriculum Development integrated optimization of

e, development of GAU as one university a good and
that supports of the best governance integrated
SDM, university
funding, the agricultural management management
and GAU agricultural universities in good and
 Ganasin Agricultural
University

Organization
Advisory
Board

Rector

Vice Rector Vice Rector Vice Rector Vice Rector

Dean
I II III IV

Directorate of Directorate of
Directorate of Directorate of
Education and Research and
Human Resource Coorperation
Teaching Community Service

Directorate of
Directorate of Directorate of
Study Central Business
Student Affairs Finance Development

GAU is led by a rector and assisted by four vice rectors, each responsible for specific
areas such as academic and student affairs, research and community service, human
resources and finance, as well as cooperation and business development. Each work unit
is granted autonomy to manage its resources. Oversight of GAU management is
conducted by an Advisory Board, which includes representatives from the Ganasin
Foundation and PT Ganasin.
Having completed its sixth year as a university, GAU, in general, has successfully
delivered quality education to students. PT Ganasin provides a comprehensive overview
of the current agricultural industry, addressing challenges related to the need for human
resources supporting the sector. Consequently, GAU has developed a curriculum aligning
with the current needs of the Indonesian agricultural industry, ensuring that its
graduates possess the competencies required by the field. Full support from PT Ganasin
allows students the opportunity to develop practical competencies, utilizing PT Ganasin’s
plantation land as a practice and research facility.
Lectures at GAU are conducted in classrooms, employing generally conventional learning
methods with face-to-face meetings and lectures from professors. Practical activities
occur in laboratories, as well as on agricultural land or plantations around GAU.
However, students have criticized out-of-class activities. The process of obtaining
 Ganasin Agricultural
University
permission to use laboratory facilities is perceived as overly complicated, requiring
students to visit the laboratory management office and submit written requests. The
complexity increases when students wish to borrow equipment for off-campus practice,
necessitating additional permission from the Vice Dean for facilities and infrastructure.
This prolonged application process often hinders students from completing their
assignments.
While GAU's first cohort should have graduated this year, given the average
undergraduate study period of four years, 23 percent of first-year students have yet to
complete their studies. Despite GAU graduates having high GPAs and achieving cum
laude titles, they face challenges in employment. Competencies possessed by GAU
alumni are not widely recognized by companies beyond PT Ganasin and its subsidiaries.
Many alumni lack competency certifications to validate their abilities, resulting in
prolonged job searches. Furthermore, several alumni end up working in fields unrelated
to their studies. Complaints from companies employing GAU alumni include issues with
individuals running away during probationary periods and failing to meet the company's
performance targets.

Grade Point Average Average Study Periode

(GPA) (in semester)
3.7 12

3.6 11

3.5 10

3.4 9

3.3 8
FP FTP FEB FP FTP FEB

In the field of research, GAU conducts extensive research through study centers focusing
on agricultural cultivation development. GAU’s Center for Agricultural Studies (CAS GAU)
excels in pineapple cultivation research, producing dozens of superior varieties resistant
to diseases, with large fruit yields and short harvest periods. However, the varieties
developed by CAS GAU have not yet been released to the market, and the research
results have not been patented. Additionally, there are challenges in technical writing for
journal publications.
In collaboration with PT Ganasin, GAU engages in community service activities in villages
around PT Ganasin’s pineapple plantations. Initially successful, last year PT Ganasin fully
delegated the planning of their CSR programs to GAU. GAU integrated these programs
 Ganasin Agricultural
University
into the student Community Service Program (CSP), allowing students the freedom to
design five main programs for implementation over 50 days. While well-received overall,
one village submitted a protest letter to GAU citing conflicts between students and local
residents.
The significant potential of the agricultural industry necessitates the support of human
resources in its development. Currently, few private universities show interest in offering
agriculture-related study programs. Despite the influential reputation of PT Ganasin in
promoting GAU, its status as a private university diminishes its consideration. Public
universities remain more popular than private ones, with a prevailing belief that private
universities are expensive and not superior to public institutions.

Human Resources

GAU’s staff comprises lecturers and educational personnel supporting activities at the
university. Presently, GAU has 63 lecturers and 99 education staff. A considerable
number of staff, including many non-permanent members, have opted not to renew
their contracts. Even when offered permanent positions, non-permanent employees
have declined. The remote location of GAU, situated far from the city center, poses a
challenge in recruiting educational personnel. Non-permanent lecturers have chosen not
to renew their contracts and have migrated to other universities in Java upon completion
of their agreements.

GAU Lecturer Tenaga Kependidikan GAU

Non-
permane
nt Permane 43%
Lecturer nt 57%
Lecturer

Permanent Lecturer Permanent Employee

Non-permanent Lecturer Non-permanent Employee

The management of GAU’s human resources falls under the purview of the Directorate
of Human Resource (DSDM). The recruitment process for operational staff at GAU is
open, with job vacancies publicized through the university website’s career page.
Managerial positions are filled by considering recommendations from the Advisory
Board. GAU maintains high qualification standards during the recruitment process to
 Ganasin Agricultural
University
attract qualified human resources. The reward system utilized by GAU is adapted
from PT Ganasin’s payroll system, and staff have expressed satisfaction with the salary
structure.
However, GAU staff frequently raise concerns about the self-development program
during their tenure. Spread across several directorate offices and faculties, each work
unit has different rules governing human resource management. Access to training and
career development activities varies between work units, hindering independent self-
development efforts. The process of applying for work dispensation is cumbersome,
involving numerous documents and a lengthy processing time.
In addition to the uneven self-development program, employees have voiced
complaints about employee performance management at GAU. Different rules and Key
Performance Indicators (KPIs) across work units result in varying standards that do not
align with DSDM rules. Consequently, employee achievements are not uniformly
recognized, and although incentives are provided for good performance, the disparities
in standards lead to perceived unfairness. Employees who receive incentives often find
them inadequate and not proportionate to their performance.
Acknowledging these concerns, DSDM has faced challenges in managing staffing data.
Personal data is stored in each work unit, with different forms based on each unit's
needs. When requiring staffing data, DSDM must contact the HR manager in each work
unit, creating difficulties for DSDM in revamping HR management within GAU.

Business Development

Since its inception, GAU has received a positive response, thanks to the influential
reputation of PT Ganasin, a top-three global pineapple plantation and canning
company. This recognition quickly established GAU in the public eye, leading to an
increase in the annual quota of new students admitted. However, there has been a
recent decline in the number of new student applicants for GAU. To address this, the
advisory board has suggested that GAU introduce new, more attractive study
programs. Specifically, the advisory board proposed a mining study program, aligning
with PT Ganasin's plans to acquire a mining company in Lampung. Nevertheless, the
GAU rectorate rejected the proposal, citing its misalignment with GAU’s vision and
mission. Additionally, concerns were raised about potential student protests, as GAU
had experienced three consecutive years of student protests against the activities of
one of PT Ganasin’s subsidiaries, which violated procedures for opening new plantation
land.
 Ganasin Agricultural
University

Last year, GAU signed a cooperation agreement with Japan Agricultural University to
enhance modern agricultural research activities. Japan Agricultural University agreed
to serve as a consultant in developing GAU’s curriculum to align with the future
agricultural industry. In light of this collaboration, the GAU rector aimed to leverage the
partnership by proposing the opening of new study programs related to agriculture,
specifically Veterinary Medicine and Forestry. However, GAU's proposal did not receive
a positive response from the Advisory Board, which deemed the proposed study
programs less attractive to prospective new students. The ongoing debate on the intro
duction of these new study programs has yet to find a resolution.

Number of New Students

350

300

250

200

150

100
2016 2017 2018 2019 2020 2021

FP FTP FEB

Comparison of New Student Quota and

Number of New Student Selection Applicants
1000
800
600
400
200
0
2016 2017 2018 2019 2020 2021

Student Quota Number of Applicants

 Ganasin Agricultural
University
GAU’s efforts to expand the university go beyond the development of educational
services. This year, GAU’s Directorate of Business Development initiated plans to
expand educational business ventures. Presently, GAU has only one business
development unit, known as GAU Farmhouse. Originally a shop specializing in the sale
of agricultural products, GAU Farmhouse sells items such as seeds, seedlings, fertilizers,
and agricultural tools. The commitment to quality assurance for these products has
attracted numerous customers, particularly farmers in the vicinity of GAU. The
consistent quality of GAU Farmhouse's agricultural products has garnered satisfaction
from its farmer customers, some of whom have requested the shop to supply their
farmer groups. Notably, GAU Farmhouse experiences a consistent sell-out of its stock
of seeds and seedlings during every planting season. Expanding its offerings, GAU
Farmhouse also provides farm equipment to assist farmers in their fieldwork efficiently.
Recognizing the potential of GAU Farmhouse, the GAU Business Development
Directorate transformed it into a business incubation center. Consequently, the name
of GAU Farmhouse was changed to GAU Agro Center. This strategic move aims to
capitalize on the success of the agricultural products shop and further develop it into a
hub for agricultural innovation and development.

Finance

GAU's primary source of funding is student tuition fees, which are determined based
on both the tuition fee and a semester fee, dependent on the number of credits taken.
These fees tend to vary annually and often see an increase. Additionally, the Ganasin
Foundation consistently contributes Corporate Social Responsibility (CSR) funds from
PT Ganasin, allocated to GAU.

Currently, GAU is in the process of constructing an integrated laboratory of

international standards, a crucial element for its cooperation agreement with the
Japanese university. The Ganasin Foundation has appointed a new contractor for this
construction. Unfortunately, the laboratory construction has experienced delays from
the initially agreed-upon schedule, despite GAU having completed the third term
payment, covering 50% of the agreed-upon costs.

Upon demanding accountability from the contracting company, GAU faced challenges
as the contractor did not provide clear answers. Recent revelations indicate that the
leader of the laboratory construction project fled the country, facing suspicion of
corruption involving the project budget. Although the contractor pledged to assist in
returning the funds paid by GAU, they requested valid proof of transactions. However,
when receipts were submitted to the contractor, they were rejected as invalid, not
 Ganasin Agricultural
University
issued by the company’s finance department. This incident prompted the Advisory
Board to request a financial audit of GAU.
 Ganasin Agricultural
University

STATEMENT OF FINANCIAL POSITION

(expressed in rupiah)
2021 2020 2019 2018 2017
ASSETS
22.086.403 26.201.709 22.602.657 17.174.874 12.980.019
Current assets .595 .349 .492 .654 .067
37.710.679 26.647.124 24.797.332 26.138.225 26.112.669
Non-current assets .799 .329 .658 .310 .318
59.797.083 52.848.833 47.399.990 43.313.110 39.092.688
Total Assets .394 .677 .150 .185 .385

LIABILITIES AND NET ASSETS

6.225.173. 4.756.675. 2.075.214. 1.667.452. 1.853.883.

Short-term liabilities 229 968 673 685 847
648.922.37 797.422.37
Long-term liabilities 0 0 0 5 5
6.225.173. 4.756.675. 2.075.214. 2.316.375. 2.651.306.
Total Liabilities 229 968 673 060 222

53.571.910 48.092.157 45.324.775 40.996.735 36.441.382

Net assets .165 .709 .477 .125 .163
Total Liabilities and Net 59.797.083 52.848.833 47.399.990 43.313.110 39.092.688
Assets .394 .677 .150 .185 .385

FINANCIAL RATIOS
2021 2020 2019 2018 2017
SOLVENCY RATIO
Liability to asset ratio 10,41% 9,00% 4,38% 5,35% 6,78%

LIQUIDITY RATIO
Current ratio 3,55 5,51 10,89 10,30 7,00
 Ganasin Agricultural
University
ACTIVITY REPORT
(expressed in rupiah)

2021 2020 2019 2018 2017

CHANGE IN UNRESTRICTED NET ASSETS

24.027.285 20.256.32 21.023.819 21.854.695 18.290.15

Revenue .398 0.899 .638 .322 2.869
Load 20.718.952 19.804.29 17.590.052 18.095.558 15.961.60
.084 6.578 .888 .946 4.477

Increase (Decrease)
3.308.333. 452.024.3 3.433.766. 3.759.136. 2.328.548.
in Unrestricted Net
314 12 750 377 392
Assets

CHANGE IN TEMPORARILY RESTRICTED NET ASSETS

15.943.263 17.027.05 14.490.405 5.071.157. 8.971.346.

Revenue .766 7.623 .709 746 490
Load 13.848.184 14.870.68 14.254.844 427.165.84 5.267.723.
.657 0.004 .596 1 466

Increase (decrease)
2.108.445. 2.156.377. 235.561.11 799.191.90 3.703.623.
in temporarily
309 618 3 5 024
restricted net assets

2.608.401. 3.669.327. 4.558.328. 6.032.171.

5.416.778.
INCREASE 930 863 282 415
622
(DECREASE) IN NET
ASSETS 45.324.77 40.996.735 36.441.382 61.962.77
48.092.157
Net assets at the 5.477 .125 .163 8.508
.709
beginning of the year
Net asset correction 158.980.3 658.712.48 (2.975.320 (31.553.5
62.973.834
02 9 ) 67.760)

YEAR-END NET 53.571.910 48.092.15 45.324.775 40.996.735 36.441.38

ASSETS .165 7.709 .477 .125 2.163
 Ganasin Agricultural
University

CASH FLOW STATEMENT

(expressed in rupiah)

2021 2020 2019 2018 2017

CASH FLOW FROM OPERATING ACTIVITIES
Increase in net assets for 5.416.778.6 2.608.401. 3.669.327. 4.558.328. 6.032.171.
the period 22 930 863 282 415
2.648.984.7 2.950.649. 3.314.352. 2.394.038. 1.254.122.
Adjustments 60 716 084 031 924
Net assets before
8.065.757.9 5.559.051. 6.983.679. 6.952.366. 7.286.294.
changes in operating
45 646 947 313 339
activities
Changes in operating 266.673.28 2.308.736. 557.129.2 (163.237.1 (524.734.1
assets and liabilities 7 715 06 65) 06)
Net cash provided by 8.332.503.2 7.867.788. 7.540.809. 6.789.129. 6.761.560.
operating activities 32 361 153 148 234

CASH FLOWS FROM INVESTING ACTIVITIES

(5.221.139. (4.636.727 (1.638.690 (2.624.526 (3.690.521
Purchase of fixed assets 727) .609) .663) .449) .842)
Purchase of intangible (32.692.216 (192.392.2 (39.066.98 (69.853.11 (9.699.315
assets ) 67) 3) 4) )
Net cash used in (5.253.831. (4.829.119 (1.677.757 (2.694.379 (3.700.221
investing activities 943) .876) .646) .563) .157)

CASH FLOWS FROM FINANCING ACTIVITIES

(9.141.000.
0 0 0 0
Endowment fund 000)
543.000.00 486.000.0 299.964.0 208.599.5 145.500.00
Receipt of CSR funds 0 00 00 00 0
(747.922.3 (148.500.0 (219.000.0
0 0
Bank debt repayment 75) 00) 00)
Cash provided by (used (8.598.000. 486.000.0 447.958.3 60.099.50
73.500.000
in) financing activities 000) 00 75 0

Net increase (decrease)

(5.519.328. 3.524.668. 5.415.093. 4.154.849. 2.987.839.
in cash and cash
711) 485 133 085 076
equivalents
Cash and cash
24.711.364. 21.186.69 15.771.60 11.616.75 8.628.914.
equivalents at the
539 6.054 2.921 3.836 759
beginning of the year
Year-end cash and cash 19.192.035. 24.711.36 21.186.69 15.771.60 11.616.753
equivalents 828 4.539 6.054 2.921 .836