Building a Sustainable Venture: The Mountain’s Institutes Earth Brick Machine

Case Abstract

 
The Mountain Institute (TMI), a Washington, D.C.-based non-profit organisation, received a patent for a machine that makes environmentally friendly bricks from dirt, allowing for low cost construction of housing and other structures. TMI saw this technology not only as an environmental win but also as a tool for economic development in emerging economies, and as a vehicle for serving the housing needs of the poor at the base of the economic pyramid.

This effort started with using the machine to make bricks for the construction of a number of small cottages and a medical clinic in Tibet, a market as rugged as its terrain. Encouraged by this initial foray, TMI was considering expanding activities to a wider scale. To do so however, the organisation saw the need for a deeper understanding of the new “business” challenges it faced. In fact, based on the assumed value proposition of the machine, an idea had been gaining momentum within TMI that would take it into new territory – the launch of a for-profit venture.

This case study explores a non-profit’s plans and challenges as it considers different structures and business models for launching a for-profit enterprise. TMI’s experience in this effort is particularly timely and instructive given the increasing interest in developing sustainable market-based solutions that meet the needs of those at the base of the pyramid – the more than four billion people around the world who are primarily embedded in the informal economy.

This case exposes a number of unique and complex challenges that non-profit (and business) leaders of tomorrow will face, including the increasing overlap between the business and non-profit sectors and the difficulties of developing an effective business model for serving the base of the pyramid. Specific challenges addressed involve business strategy for the base of the pyramid, economic development in low income markets, operating and marketing in remote areas with non-traditional partners, and technology transfer and piracy.

Authors: John Buffington, Ted London
Institution: Kenan-Flagler Business School, University of North Carolina, USA
Competition Year2005
Place1st place
Key WordsNon-Profit Organisation, Housing Industry, Construction Materials, Environmentally Friendly Bricks, Scaling Up, Growth, Base of the Pyramid, Low Income Markets, Business Strategy, Emerging Economy, Technology Transfer, Piracy
CoursesStrategy, International Business, Sustainable Enterprise, Non-Profit Organisation
Target AudienceMBA, Business Executives, BBA
Permission RightsThis case can be purchased from the GlobaLens website. It is also part of the oikos Case Collection book (Volume 1): Case Studies in Sustainability Management and Strategy published by Greenleaf.
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posted June 30, 2005

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The Fair Trade Story

Case Abstract

This case traces the evolution of fair trade, from ‘charity trade’, i.e. the sale of objects produced in developing countries with little functional value to the sale of functional, and often organic products to developed countries, the increasing role of alternative trade organisations in providing minimum prices, finance, training and other trade ‘premiums’ which are necessary tools for marginal producers to gain access to the global market; the role of consumer support.

The 1980’s found flattened sales met with increased attention to consumer marketing, product development and product quality by ATO’s and an international standard for fair trade. In the late 1990’s fair trade ATO’s struggled with the tension between the notions of altruistic sales and a development focus, versus a focus on customer satisfaction and supply chain management. The shift from producer advantages to product quality and customer satisfaction was made in the late 1990’s in advertising campaigns. The case ends with questions about achieving a balance between market oriented and social/developmental goals.

Authors: Kai Hockerts
Institution: INSEAD, France
Competition Year2005
Place2nd place
TrackCorporate Sustainability
Key WordsFair Trade, Alternative Trade Organisations, Developing Countries
CoursesNon-Profit Management, Public Policy
Target AudienceMBA
Permission RightsThis case was published in: Hockerts, K. “CaféDirect: Fair Trade as Social Entrepreneurship”, In F. Perrini (Ed.), The New Social Entrepreneurship, What Awaits Social Entrepreneurial Ventures: Edward Elgar, 2006
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Phoenix Organic: Valuing Sustainability While Desiring Growth

Case Abstract

This case traces the development of the organic juice company Phoenix Organic from a bathtub operation producing ginger fizz to a sustainable and successful juice company achieving market dominance in Australia. Business decisions facing these entrepreneurs include selecting strategies to penetrate cafes; whether to approach supermarkets; how to sustain suppliers of organic products; whether to use glass versus plastic for bottling; and export versus domestic expansion. The business is committed to practices of social and environmental responsibility and all decisions are made to promote the double bottom line business growth and commitment to improving society and the environment with a quality product and clean production operations.

Authors: Eva Collins, Steve Bowden, Kate Kearins
Institution: Wakato Management School, New Zealand; Auckland University, New Zealand
Competition Year2005
Place3rd place
TrackCorporate Sustainability
Key WordsOrganic, Drinks, Juice, Australia, Growth strategy, Double bottom line, Clean production
CoursesStrategy and Sustainability, Strategy, Entrepreneurship, Business and Society, Environmental Management
Target AudienceMBA, Undergraduate Students, Post-graduate Students
Permission RightsThe Phoenix Organic case has been published at Collins, E., Bowden, S. & Kearins, K. (2005-2006, winter). Phoenix Organic: Valuing sustainability while desiring growth (case study and non-published teaching note). Business Case Journal, 13 (2), 77-98. It is also part of the oikos Case Collection book (Volume 1): Case Studies in Sustainability Management and Strategy published by Greenleaf.
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Aiming Toward a Hydrogen Economy: Icelandic New Energy Ltd.

Case Abstract

In June 2004, Icelandic New Energy (INE) Limited, a research and development consortium based in Reykjavik, Iceland, is considering what future direction to take.  The two-person team made up of Jon Björn Skúlason and María Hildur Maack have met their first major goal — the installation of the world’s first commercial hydrogen filling station and the coordination of a public transport test project involving the operation of three hydrogen fuelled city buses.  The company was founded with the overall objective of, “investigating the potential for eventually replacing the use of fossil fuels in Iceland with hydrogen-based fuels and create the first hydrogen society in the world.”

Working towards the goal of self-sufficiency from fossil fuels, Icelandic New Energy Ltd. was set up in 1999 by the Icelandic consortium Vistorka and three major partners each contributing a part to the testing — Royal Dutch Shell (the refuelling stations), Norsk Hydro (the electrolysis technology to make the hydrogen) and DaimlerChrysler (fuel cell vehicles using hydrogen as fuel). The shareholder agreement was set to expire in 2005.  With all of the major activities being outsourced and contracted, Jon Björn, general manager, and María, environmental manager, wondered how they could keep the company as a going-concern in order to move Iceland to a hydrogen powered economy — a feat that could take more than 15 years. INE’s contributions were to the environment and society, and a sustainable business model was not immediately evident.

Authors: Pratima Bansal, Ken Mark, Mitchell Jordan
Institution: Ivey School of Business, Canada
Competition Year2005
PlaceFinalist
TrackCorporate Sustainability
Key WordsIndustry Analysis, Management in a Global Environment, Strategic planning, Iceland, Hydrogen, Fuel
CoursesInternational Management, Technology, Global Environment of Business, Non-Profit Management, Business and Society
Target AudienceMBA/MS Level Program
Permission RightsThis case is available for purchase from Ivey Publishing (9B05M001).
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Catamount Energy and the Glebe Mountain Windfarm: Clean Energy vs. NIMBY

Case Abstract

The case presents the arguments both pro and against wind generated electricity, or turbine wind farms. The environmental and economic arguments made in favour of this alternative energy source discuss (1) wind power does not generate water or air emissions, or hazardous waste, does not impact riverways; and (2) once installation costs have been accounted for, the costs of fuel, in this case wind, is free. Critics, in turn, point to (1) the variability in wind energy, which has a 30%-40% efficiency level due to shifts in nature, (2) the high costs of turbines and installation when compared to natural gas powered plants of equivalent scale, (3) the high level of state subsidies to support this energy source, and finally, (4) the negative impacts on migratory bird patterns and views and pristine nature of the environment. This debate is taking place as the state of Vermont considers placement of a wind turbine farm in the mountains of the state.

Author: Robert Letovsky
Institution: St. Michael's College, USA
Competition Year2005
PlaceHonorary Mention
TrackCorporate Sustainability
Key WordsWind Electricity, Wind Farm, Alternative Energy, Costs, Environmental Impacts, Stakeholder Management
CoursesSustainable Development, Strategic Management, Business Policy, Marketing Management, Public Relations
Permission RightsPlease contact Robert Letovsky for permission rights. This case is also part of the oikos Case Collection book (Volume 1): Case Studies in Sustainability Management and Strategy published by Greenleaf.
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