oikos Opole Alumni Meeting

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On 04 – 05 October, the oikos Alumni in Opole and current members will meet for the weekend in Przysiecz and discuss the topic of sustainable development of the region of Opole. It is a time for sharing experience and getting inspired to create a better future.

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oikos International

posted June 26, 2014

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Organic Growth at Sonnentor

Abstract

From a small village in Northern Austria, Sonnentor had developed into a multinational organic food production company exporting teas, spices, and related products to more than 50 countries around the globe (see Figure 1 for an overview of the case setting). The case follows entrepreneur Johannes Gutmann on the growth path of his firm, and focuses on unusual strategic and operative choices along the way (including, for example, not using professional market research, refusing to cooperate with mass-market retailers, using labor instead of cheaper machines for manufacturing processes, not having clear yearly goals, paying suppliers twice the price they received from others, or not paying the owner any dividends, to name just a few choices). Although the owner was not very profit-oriented, the company was looking back on a constant profitable growth for 25 years. At the same time, Sonnentor placed a strong emphasis on socially and environmentally responsible behavior in all its actions, and on building the business on fair partnerships with employees, suppliers, and other partners. The case highlights the role that ‘embedded sustainability’ plays for the success of the business and confronts the reader with Mr. Gutmann’s challenge of transferring his unique business philosophy to other domains and to a new managerial generation.

Authors: Dietmar Sternad
Institution: Carinthia University of Applied Sciences
Competition Year2014
Place1st
TrackCorporate Sustainability
Key WordsSustainability, PCB recycling, greentech, entrepreneurship
Coursesstrategic management, entrepreneurship, corporate social responsibility
Target AudienceMaster, MBA, or executive-level
Purchase InformationYou can purchase the case here:
Ivey Publishing
or
Harvard Business Publishing
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posted June 26, 2014

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Terra Nova (A)

Abstract:

In three years, a small team of engineers led by a visionary entrepreneur Mr. Christian Thomas has developed a new process for producing iron, aluminum, copper, as well as gold and silver in commercial quantities, from electronic waste. The small team of senior engineers who started this venture had been brutally terminated upon the failure of a big lead processing plant. Out of a job, they developed the idea of recycling electronic waste and tested it, while two associates worked at finding financing and legal authorizations for the developing project. Once all the pilot tests had been conducted, it took two more years to set up appropriate supply routes and to build a plant to do phase I, i.e. extracting plastic, iron and aluminum. The effluent at that stage is rich in rare metals and attractive for the smelters who do the further refining. The rich output is hence sold to the copper smelters until phase II is in place. The case presents an interesting example of a technologically sophisticated recycling operation because it generates positive income with zero emissions and without ultimate residue. Progressively dominating complex chemical processes with a series of innovations, and surviving with some successful consulting jobs for the industry, the team completed the set up by January 2012. This development took place during the financial crisis years, in the competitive environment of five global copper smelters.

This case is part of the oikos Free Case Collection. Instructors can request the teaching note at freecase@oikos-international.org

Authors: Gilles van Wijk and Alireza Ahmadsimab
Institution: Essec Business School
Competition Year2014
PlaceRunner-Up
TrackCorporate Sustainability
Key WordsSustainability, PCB recycling, greentech, entrepreneurship
Coursesstrategic management, sustainability, entrepreneurship
Target AudienceMBA
Purchase InformationPlease contact the authors, Gilles van Wijk for permission rights.
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posted June 26, 2014

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IKEA and the ‘Better Cotton Initiative’

Abstract

The purpose of this case study is to discuss the relation between management and sustainability, paying specific attention to the issue of supply chain and innovation. IKEA, the world’s leading furniture retailer, has a long history of managing environmental and social issues. The company has developed internal procedures to assess the sustainability impact of new products (the IKEA Sustainability Product Scorecard) and has implemented a code of conduct to deal with social responsibility among suppliers (IWAY). The issue of cotton has emerged as a new challenge. To address this challenge, IKEA must adopt an innovative approach that goes directly to the source: the farmers. Through its partnership with a leading environmental NGO (the WWF), IKEA developed a pilot project aimed at influencing farmers in Pakistan and India to change the way they cultivate cotton. The initial results motivated the company to extend its pilot initiative with the goal of mainstreaming Better Cotton as a new market commodity. The development of a new strategy is required.

This case is part of the oikos Free Case Collection. Instructors can request the teaching note at freecase@oikos-international.org

Authors: Stefano Pogutz
Institution: Università Bocconi
Competition Year2014
Place2nd
TrackCorporate Sustainability
Key WordsCorporate sustainability, supply chain management, cotton industry
Coursesstrategic management, supply chain management, corporate sustainability, CSR
Target AudienceMBAs. Graduate, Executive
Purchase InformationThis case is part of the oikos free case collection. Download a free online copy below. If you are a faculty member and you are interested in teaching this case, you can request a free teaching note by sending us an email to freecase@oikosinternational.org
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posted June 26, 2014

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Accenture Development Partnerships (A) and (B)

Abstract

Accenture Development Partnerships is a “not-for-loss” business unit established inside Accenture in 2003 to serve NGO and development sector clients. Seven years later, its founder Gib Bulloch faces a challenge when a new leadership team is put in place at Accenture and the key sponsor of the venture retires. The future of the venture is uncertain – it could be phased out, integrated with another unit or left as a standalone unit The decision is complicated because on one hand the business model is very different from the main business of the firm, supporting separation of the unit; on the other, it is not yet able to cover its fixed operating costs, suggesting its integration or closure. Furthermore, the line between Accenture’s commercial projects and the development projects of Accenture Development Partnerships is blurring as commercial clients begin requesting Accenture’s assistance with the implementation of their own corporate social responsibility initiatives.

The case illustrates the successful establishment of a social enterprise within a major corporation. It provides an example of the effective development of a sponsorship network for securing buy-in for a new venture and illustrates the challenges of deciding how far a new venture should be separated from or integrated with the main business of the firm. As such it is well suited to a course on either Social Entrepreneurship or Corporate Entrepreneurship. It could also be used as the basis for discussion of the role of business in society in a General Management course. A two-part teaching case, teaching note and video are available.

Authors: Michelle Rogan and Christiane Bode
Institution: INSEAD
Competition Year2014
Place3rd
TrackCorporate Sustainability
Key WordsCorporate entrepreneurship, Social entrepreneurship, Sponsorship, Social innovation
CoursesGeneral Management, Strategic Management, Corporate Eentrepreneurship, Social Issues in Management, Human Resources
Target AudienceMBA, Executives
Purchase InformationPlease contact , INSEAD for permission rights.
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posted June 26, 2014

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Barrick Gold: A Perfect Storm at Pascua Lama

Abstract

This case study is about a gold mining company that sought to practice “responsible mining” by reaching out to stakeholders and addressing environmental concerns, but which nevertheless attracted a host of protestors and opponents. Punctuated by testimony from its 85-year-old founder, it offers unique insights into Barrick Gold Corporation in the age-old pursuit of the precious metal, facing the problems of a new era. The world leader had spent $4.8 billion and more than a decade working to build the Pascua Lama gold mine amid the glaciers of the Andes mountain range in South America. But its promises to bring economic growth to impoverished communities were challenged by environmentalists and local groups seeking to preserve the pristine landscape and indigenous culture. The case provides a platform from which to pose the question ‘How much CSR is enough?’, enabling students to grapple with the dilemmas facing resource-intensive industries in a new age of environmentalism.

Barrick’s founder Peter Munk lays out the dilemma facing not just his company but the entire gold mining industry. Gold is getting harder to find and more expensive to mine, while the demands of environmentalists and governments seeking to protect their nations’ resources are steadily mounting. At the start of the story, Barrick had already invested millions dollars in community benefits and spent more than 200,000 man-hours on documenting an environmental review to launch its mega mine on the border between Chile and Argentina. Lured to the region by governments eager for economic development, it then had to obtain all the environmental and governmental approvals to get the go-ahead for the project. This meant making modifications to the project that it claims will avoid damage to glaciers in the region. It has gained many supporters in the community and has received more than 145,000 applications for the jobs it plans to create. Yet mid-way through construction, Pascua Lama is held up by environmental regulators and legal challenges from an indigenous people who inhabit the mountain region.

The project is extremely important to Barrick, which has already poured billions more dollars into developing the mine than it ever expected, and is only mid-way through construction. Not only can the company ill afford to lose its huge investment, it is depending on the mine (and others planned in the same region) to replace many of its older mines which are nearing the end of their productive lives. When a drop in the price of gold compounds the cost overruns and legal problems facing Pascua Lama, the company’s share price takes a nosedive. As Munk tells shareholders, the company must consider whether to suspend the Pascua Lama mine development altogether. Not only is the future of Barrick at stake, but of the gold mining industry.

As students consider what the company should do next, the case offers the opportunity to discuss the Social License to Operate (SLO), a concept which applies across natural resource-based industries, particularly extractive industries such as mining that operate in developing countries. While there is no universally accepted definition of SLO, it can be broadly thought of as “a community’s perceptions of the acceptability of a company and its local operation.” The dilemma presented in the case puts students in the position of deciding on the boundaries of the SLO. Can companies move forward with projects even if not everyone agrees? Implicit in this is the notion that perhaps the only way to responsibly mine gold is not to develop new mines at all.

Authors: Craig Smith and Erin McCormick
Institution: INSEAD
Competition Year2014
PlaceRunner-Up
TrackCorporate Sustainability
Key WordsSustainability; Social Enterprise; Sharing Economy; Carsharing; Triple Bottom Line; Environmental Impact; Consumer Pricing
CoursesSustainable Strategy, Social Entrepreneurship
Target AudienceMBAs, advanced undergrads
Purchase InformationPlease contact case.studies@insead.edu
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posted June 26, 2014

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Communauto: A Big Idea for a Big Market

Abstract

The Communauto case examines a carsharing company headquartered in Montreal, Quebec, Canada. The case focuses primarily on Communauto’s CEO, Benoit Robert, and covers the company’s evolution and emergence as a standard-bearer for the carsharing concept in North America. Whereas many social entrepreneurship cases focus on translating a ‘concept’ into a sustainable enterprise, this case is different in that Communauto is already established and financially viable. Thus, students examine how the founder can build on his success and continue to pursue his ambitious goal of significantly reducing private car ownership in order to minimize the environmental burden of personal transportation.

At the center of the analysis is the tension that underlies this successful carsharing venture. On the one hand, like any other entrepreneur, Benoit wants to grow his organization and increase its membership. On the other, he is a social entrepreneur steadfastly committed to reducing the environmental impact of individual transportation by changing driving behavior through carsharing. Meeting these objectives is challenging because, even though many North Americans are aware of carsharing as a phenomenon, the majority misunderstand the concept, and in particular, its economic appeal for many urban car owners.

In this case, students assess an organization’s accomplishments using not just economic criteria but also the normative aspirations of its founder, which are more social in nature. In doing so, students will analyze how Communauto is faring and address the founder’s core concern: how to position Communauto to continue attracting and retaining members while simultaneously leading them towards environmentally preferable transportation choices?

Authors: Raymond Paquin, Dror Etzion, James Povitz and Benjamin Gruber
Institution: Concordia University and McGill University
Competition Year2014
Place1st place
TrackSocial Entreprenuership
Key WordsSustainability; Social Enterprise; Sharing Economy; Carsharing; Triple Bottom Line; Environmental Impact; Consumer Pricing
CoursesSustainable Strategy, Social Entrepreneurship
Target AudienceMBAs, advanced undergrads
Purchase InformationThis case is available at the Case Research Journal. Please contact the authors, Raymond Paquin for permission rights.
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posted June 26, 2014

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MokshaYug Access (MYA) in India: Enriching India’s Dairy Farmers

Abstract

After gaining sound work knowledge abroad, Harsha Moily (Harsha), returned to India with a clear vision to build an organisation focused on creating income-generating opportunities for rural people. In 2006, he established MokshaYug Access (MYA), a limited company based in Karnataka, India with a seed capital of $2 million. Being a rural supply chain solutions company, MYA was committed to create an organised platform in rural areas by linking such platform to urban parts in India. For its Dairy Business Vertical, MYA procured milk from rural dairy farmers in various districts of Karnataka and sold the same to the institutional buyers. In this process, MYA implemented a scientific and technology-based approach, whereby MYA focused on increasing yield per cattle per day and improving quality of milk. To achieve this, MYA emphasised on deep engagement with the dairy farmers by making them aware about the best practices in the dairy farming and animal husbandry. Moving ahead, in late 2012, under ‘Farmer-to-Consumer Connect’ initiative, MYA launched its retail milk brand ‘Milk Route’ in Bangalore.

In addition, it also started selling fruits and vegetables under ‘The Good Chain’ retail stores. Identifying the strength in the business model, MYA was successful in securing private equity funds. But, experts felt that MYA was in direct competition with Karnataka Milk Federation (KMF) and Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), dominant players in dairy business in India. In addition, availability of manpower, convincing rural dairy farmers to switch to MYA and creation of brand was key challenges ahead for MYA. With such innovative practices, how MYA takes its operation to the next level of growth remained to be seen.

Authors: Rajan Shah
Institution: Amity Research Centers
Competition Year2014
PlaceRunner up
TrackSocial Entreprenuership
Key WordsMokshaYug Access; Supply Chain; Karnataka; Social Entrepreneurship; Dairy Farmers; Milk Route; The Good Chain; Farmers to Consumers; R&D; Innovation; Harsha Moily; Income Generation; Vinod Khosla; Unitus Equity Fund
CoursesEntrepreneurship
Target AudienceMBA
Purchase InformationCopies of this case can be purchased from the case center .
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posted June 26, 2014

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Wellcome – Growth of a Social Enterprise

Abstract

 
wellcome offers support to families in the first weeks after a baby is born. Surprisingly, previously there was no service available to families in this new and often overwhelming situation of beginning parenthood. Statistics show that especially in those weeks mothers are endangered of showing symptoms of burn-out or postpartum depression due to exhaustion. wellcome sends volunteers to help mothers in their homes and fulfill tasks such as taking care of the baby or siblings and help in the household.

wellcome has realized an impressive growth since its foundation in 2006 and their teams are now present in almost every city in Germany. That was possible thanks to the social franchising strategy wellcome had developed, where existing social service providers serve as franchisees who locally coordinate and supervise the volunteers’ work.

Authors: Karin Kreutzer and Magdalena Kloibhofer
Institution: European Business School
Competition Year2014
Place3rd
TrackSocial Entreprenuership
Key WordsSocial Franchise, strategy, growth
Coursessocial entrepreneurship, social business, strategic management
Target AudienceBachelor, Master, MBA
Purchase InformationPlease contact the authors, Karin Kreutzer for permission rights.
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posted June 26, 2014

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Mannat Foundation: Building Social Enterprise for the ‘Bottom of the Pyramid’

Abstract

In April 2013, Dr. Yogendra Saxena, Managing Trustee of Mannat Foundation, was to work out the renewal of the contract between Mannat Foundation and Tata Business Support Services (TBSS). The objective of the contract was to state the constitution of the structure and modus operandi of Mannat Foundation. Mannat Foundation was established in 2009 as a product of the joint venture between Tata Power Company (TPC) and TBSS with the objective of setting up of the social enterprise for the ‘bottom of the pyramid’. It had initiated rural Business Process Outsourcing (BPO) to provide the employment opportunities to the unemployed and semi-skilled rural population. The renewal of the contract was going to impact on the very basic goal of the Mannat and the possibility of replicability of the Mannat Foundation’s business model. There were quite a few issues related to this decision which were going to impact replicability and sustainability of the model. The case is anchored on the business dilemma of creating the win-win strategy for both business entities (i.e. TPC and TBSS) that have got their own independent profit function. It poses the question in terms of identifying the areas which would lead to sustainability by targeting at the ‘bottom of the pyramid’.

Authors: Trupti Karkhanis and Ritu Sinha
Institution: Indian Education Society – Management College and Research Centre
Competition Year2014
PlaceRunner up
TrackSocial Entreprenuership
Key WordsRural BPO, Bottom of the Piramid
CoursesStrategic management, Business Environment
Target AudienceMBA
Purchase InformationPlease contact the authors for permission rights.
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oikos International

posted June 26, 2014

This might be for you.