Candy Crush? Aligning Health, Business and Pleasure in the Chocolate Industry

Abstract:
After winning important battles against soda, governments and health activists are targeting chocolate bars because of their high sugar content, and some, like the UK government in 2017, have set strict targets on the amount of sugar and calories that can be contained in each chocolate bar. In addition to stricter regulation, large incumbent chocolate makers like Nestlé, Mars, Hershey, Cadbury, and Ferrero must manage evolving consumer tastes as well as new competition from healthier bars and snacks. How they respond can significantly impact public health and business performance, as well as the everyday experience of eating treats. Can health, business, and pleasure ever align in the chocolate industry?

AuthorsLaura Heely & Pierre Chandon
InstitutionINSEAD, France
Competition Year2018
PlaceThird Prize
TrackCorporate Sustainability
Key WordsMarketing, Food, Health, Obesity, Regulation, Packaging
CoursesCorporate Sustainability, Corporate Social Responsibility and Business Ethics, Management, Green Marketing, Corporate Governance, Automotive Industry
Target AudienceMarketing courses, either an introductory course in marketing management or a more specialized course in brand management or consumer behavior
Permission rightsPlease contact at: case.studies@insead.edu
DownloadInspection Copy
Author image

oikos International

posted June 7, 2018

This might be for you.

Polarstern Energy – Sustainable Change Led by Innovative Entrepreneurs

Abstract

In 2011 three young entrepreneurs, Jakob Assmann, Florian Henle and Simon Stadler, set out to revolutionize the energy market by offering a radical solution for customers to switch from non-renewable fossil fuels to renewable energies. Through their start-up Polarstern, they aimed to offer the first comprehensive sustainable energy package, derived from 100% renewable resources and at competitive price points to compete with the handful of large companies, which dominated this industry. The added global social dimension of their service provided a clear point of differentiation but communicating their innovative service to customers proved to be very challenging. The founders had to be entrepreneurial in their marketing approach to gain the trust of potential customers and to encourage their switching from their existing energy providers.

AuthorsJulia K. Binder
InstitutionTUM School of Management at Technical University of Munich, Germany
Competition Year2016
PlaceFirst Prize
TrackSocial Entrepreneurship
Key WordsSustainable entrepreneurship, social entrepreneurship, sustainable marketing, entrepreneurial marketing, energy industry
CoursesSustainable/ Social Entrepreneurship, Sustainable/ Social Marketing, Entrepreneurial Marketing, Business and Society, CSR
Target AudienceAdvanced undergraduate students, graduate students
Permission rightsThis 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@oikos-international.org.
DownloadFree Case
Author image

oikos International

posted June 27, 2016

This might be for you.

Alibaba.com between Economic Success and Corporate Responsibility

Abstract

The Alibaba Group was one of the biggest and fastest growing businesses in China for about ten years. Among many other companies under the holding’s umbrella, Alibaba.com had become the world’s most frequented market place in the Business to Business segment. The company provided an internet platform for especially small and medium sized companies, where western demands meet Asian supply.

Although the platform opened the door for many firms to the international markets, there was room for improvement. Due to the increasing access to information through the World Wide Web, customers had become more and more sensitive to what is known as corporate responsibility. Sustainable business models and fair working conditions were more than ever of huge importance for the customer. In order to respond to this trend, companies on the demand side had to make sure that their suppliers fulfill not only European standards.

This trend of corporate responsibility recently caused many complaints about the listing and transparency of the Alibaba platform. On the supply side, suppliers missed a tool for signaling their working and quality standards to their customers. There was hardly a way to differentiate from competitors on the webpage. On the demand side companies suffered the same problem vice versa. There was barely a way for small western companies to control and check quality and labor issues for their supply chain without long lasting selection and arrangement processes.

But not only direct users of Alibaba.com drew the attention to the Alibaba system. Years ago many NGOs (Non-Governmental Organizations) claimed for more transparency and social standards on the Alibaba.com homepage.

Jack Ma, the CEO of Alibaba, knew about these problems. However, he also knew that many firms that once started with poor standards were nowadays great companies with well-known products all over the world. With a higher entry barrier, these corporations would not have had the chance to enter the market at all. Developing from a small company with low standards to a firm with high standards was often a long and time-consuming process.

Triggered by the recent complaints Ma was challenged by several self-imposed questions. Ma knew that the listing and policy on his platform were deeply connected with those questions and that there would be no easy solution. Whatever he decided should be the best answer for all parties: The Company, the customers and society.

AuthorsKannika Leelapanyalert, David Beschorner, Kim Nadine Reckmann and Marie Aslanian
InstitutionCollege of Management, Mahidol University, Thailand
Competition Year2016
PlaceRunner up
TrackCorporate Sustainability
Key WordsAlibaba, corporate sustainability, supplier, NGO, B2B
CoursesInternational marketing
Target AudienceMBAs
Permission rightsThis 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@oikos-international.org.
DownloadFree Case
Author image

oikos International

posted June 27, 2016

This might be for you.

oikos Case Quarterly: Fairtrade Issue 13, March 2014

As of today, fairtrade products can be found in almost any grocery store. Both, sales volume and variety of products available keep increasing at a fast pace. Much has been discussed about the certification instruments and the concept behind the fairtrade movement. However, cases discussing the business models of fairtrade initiatives are rare. We hereby present two cases to help explore the challenges fairtrade organizations face in their operations. We are convinced they will proof as an excellent tool for students to better understand some of the key aspects characterizing the fairtrade movement.

Table of contents:

→ Foreword

→ Eva Collins, Kate Kearins, Helen Tregida and Steve Bowden (Waikato University and Auckland University of Technology, New Zealand) – All Good Bananas:  Selling the FairTrade Message

→ Scott Marshall, Darrell Brown, Bex Sakarias, Min Cai (Portland State University) – Madécasse: Competing with a 4x Fairtrade Business Model

→ Forthcoming case teaching events and other new

→ How to subscribe

Download the issue.

We hope that you will enjoy reading this issue. Please feel free to forward it to colleagues who are interested in teaching sustainability with cases. If you would like to share your experience in teaching sustainability with cases, we would be very happy to hear from you! Also if you have any feedback on the content of this issue and suggestions for the next issue, send us an email to case@oikosinternational.org.

Author image

oikos International

posted March 27, 2014

This might be for you.

Madécasse: Competing with a 4x Fairtrade Business Model

Case Abstract

Brett Beach and Tim McCollum, co-founders of Madécasse, spent two years as Peace Corps volunteers in Madagascar. During that time, they fell in love with the country and its people. Recognizing the need of the Malagasy for stable jobs and fair wages and the connection between poverty and environmental destruction, Brett and Tim discussed possibilities for a social enterprise in the country.

Madagascar presents a beautiful yet challenging place to operate a business. It has a wide range of flora and fauna, approximately 70% of which are found nowhere else on Earth and it produces coffee, vanilla, sugar, cotton, pepper, cinnamon, chili, cloves and high quality cocoa. However, it is also one of the least developed countries in the world. Seventy percent of the population is rural and 90% live on less than $2 a day.

Madécasse, with its headquarters in Brooklyn, New York, partners with farmer cooperatives and a chocolate factory in Madagascar to make single-origin, tree-to-bar chocolates for sale in high-end groceries and chocolate boutiques internationally. The Madécasse model maximizes the amount of value added to the final product in Madagascar. It includes strong relationships with the cocoa farmers, partnership with a chocolate factory, sourcing ingredients and packaging from around Madagascar, and exporting the final, fully packaged products. It is through this holistic approach that Brett and Tim created a business model that offers more than four times the social and economic benefit to Madagascar when compared to the standard FairTrade model.

Madécasse competes with other specialty brands and numerous conventional brands. In order to catch consumers’ attention, the founders obtained “Fair For Life” and Organic certifications. However, Madécasse is not unique in differentiating based on single origin, certified specialty chocolate. Survival depends on Madécasse’s ability to leverage its “4 X” impact.

The case study asks students to look thoroughly at the value chain in Madagascar, understand Madécasse’s operations and the local impacts, and the methods used to communicate to final consumers. Students are challenged with fully comprehending the value proposition of Madécasse and how it can be aligned with and communicated to current and emerging customer needs.

Authors: Scott Marshall, Darrell Brown, Bex Sakarias, Min Cai
Institution: Portland State University, USA
Competition Year2013
Place1st place
TrackSocial Entrepreneurship
Key WordsSocial Enterprise, Social Impact, Chocolate, Marketing, Operations Management, Madagascar
CoursesMarketing, Operations Management, Supply Chain Management, Social Entrepreneurship, International Business
Target AudienceAdvanced Undergraduate Business Students and Graduate Business Students
Permission RightsCopies of this case are available from Portland State University Library
DownloadInspection Copy
Author image

oikos International

posted June 30, 2013

This might be for you.

Walmart: Love, Earth

Case Abstract

This is the story about the efforts of a social entrepreneur, Assheton Carter, to create a meaningful initiative with Wal-Mart in ethical mining.  His idea:  to somehow secure the supply chain for jewelry in a way that consumers could be certain that every input – from treatment of workers in the mines through to sustainable manufacturing – was executed to the highest ethical standards.  This had never been done before, particularly on the scale according to which Wal-Mart operates:  it is not only the largest retailer of gold jewelry in the world, but maintains an unprecedented control over its suppliers.

At the time that Carter was attempting to sell his idea to Wal-Mart leaders, the company was embarking on a major push to become a highly ethical company that both used sustainable methods and behaved morally.  This was a priority of the CEO, Lee Scott, who claimed that he had had an “epiphany” about the future of Wal-Mart and had promoted a huge array of initiatives in the company.  After years of being the “bad guy” and an object of popular protest for its methods and impact on the US economy, Scott had pledged to turn this impression around.  Statements, committees, and programs proliferated in Wal-Mart.  The case offers many examples of his methods and initiatives.
 

This appeared to be a propitious moment for ideas like Carter’s.  However, Carter had had an extremely difficult time getting the attention of executives at Wal-Mart.  This was not necessarily because the new Wal-Mart was insincere or cynical about its ambitions, but due to the fact that its managers worked up to 60 hours per week, under relentless pressure to deliver.  In other words, the ethical initiatives had to be accomplished in addition to their regular jobs.  They also changed positions so often that Carter was never certain who was currently responsible for jewelry acquisition. Carter spent years attempting to communicate his ideas to the right person within the company, never seeming to get anywhere.
 

It was a time of great frustration.  In the meantime, he was extremely active in a number of other areas, which more than occupied the majority of his time.  But Carter persevered, eventually getting the attention of a dynamic young manager, Dee Breazeale.  Together, they structured the program, taking it through the company and enlisting suppliers to participate.  Though the results were somewhat ambiguous, they created a way that consumers could log on to the internet and look at all of the sources (inputs) into the piece of jewelry they purchased.  The result, however, is not the principal theme of the case, but its plot.
 

As it comes out in the case, Carter’s method is unique.  Rather than concentrate exclusively on promoting a good idea, Carter undertakes to understand the business model of the companies he approaches, i.e. the incentives that managers have, how they see the world, even the vocabulary that they use in their everyday work.  He speaks to them in a way that they can understand immediately and automatically, offering a plan of action that fits with the priorities of the company, yet pushes them to do new things in accordance with his ideas.  This too is controversial and must be extracted in discussion from the plot of the case.
 

Authors: N. Craig Smith, Robert J. Crawford
Institution: INSEAD, France
Competition Year2012
PlaceFinalist
TrackCorporate Sustainability
Key WordsSustainability, Strategic Corporate Social Responsibility, Stakeholder Engagement, NGO Strategy & Tactics, Social Entrepreneurship, Multi-Stakeholder Initiatives, Mining, Retail Jewellery
CoursesStrategic Corporate Social Responsibility, Sustainability, Strategy/Strategic Management, Operations Management/Supply Chains
Target AudienceMBA, eMBA, Executive Education Programmes, Upper Level Undergraduate
Permission RightsCopies of this case are available for purchase at Insead Case Publishing.
DownloadCase Abstract

Author image

oikos International

posted June 30, 2012

This might be for you.

Sustainable Development at PepsiCo

Case Abstract

This case is about the sustainable development initiatives of one of the world’s leading food and beverage companies, PepsiCo. Faced with various criticisms on the social and environmental fronts, PepsiCo adopted the ‘Performance with Purpose’ strategy in 2009 under the leadership of its CEO Indra Nooyi (Nooyi). This strategy was based upon the philosophy that the company’s financial performance should go hand in hand with its responsibilities toward society and the environment.

The new sustainable development program contained 47 commitments that PepsiCo made toward society and these were divided into four broad areas: Performance, Human Sustainability, Environmental Sustainability, and Talent Sustainability. The first component was to its shareholders, committing itself to good returns. The other three were to other stakeholders. PepsiCo took various steps to fulfil its commitments toward its stakeholders. It increased the content of healthy ingredients in its products like fruits, vegetables, nuts, grains, and low-fat dairy in its global product portfolio. To counter the allegations that its operations were leading to water shortages in the areas in which it was operating, it achieved a positive water balance in India and tried to achieve the same in other places in which it operated. It introduced several new nutritious products which were also cheaper and hence affordable to the underprivileged sections of society. To reduce the environmental impact of its operations it reduced the use of electricity and fuel in its operations. To understand the different markets in which it operated, it increased the diversity of its workforce around the world.
However, since mid-2011, Nooyi had come under fire from key stakeholders such as shareholders and bottlers who contended that her focus on ‘Performance with Purpose’ had come at the cost of positioning of the company’s products and had hurt sales. They felt that its archrival, the Coca Cola Company had gained the upper hand during Nooyi’s tenure.

Authors: Debapratim Purkayastha, Adapa Srinivasa Rao
Institution: IBS Hyderabad, India
Competition Year2012
PlaceFinalist
TrackCorporate Sustainability
Key WordsSustainable development, Corporate social responsibility, Balancing excellent operating performance with sustainable business practices, Theory of externalities, Stakeholder theory, Performance with Purpose strategy, Human sustainability, Environmental sustainability, Talent sustainability, Triple bottom line, Social criticism, Environmental criticism, Food and beverage sector, PepsiCo
CoursesStrategic Management, Business Ethics
Target AudienceMBA
Permission RightsPlease contact Debapratim Purkayastha for permission rights.
DownloadInspection Copy
Author image

oikos International

posted June 30, 2012

This might be for you.

Green Works: The Clorox Company Goes Green

Case Abstract

The Clorox Company launched green household cleaning products line GreenWorks in 2008 and immediately commanded 40% of the market. Following stagnant sales in the early 2000’s due to fierce competition with Procter and Gamble, Unilever and others, the company made a bold move into the green consumer market with the launch of GreenWorks, acquisition of Burt’s Bees natural personal care products, and a strategic partnership with the Sierra Club.

The case tracks the history of the Clorox Company and its competition to differentiate from larger, more diversified rivals, and its methodical approach to launching GreenWorks. Increasing interest by a new market segment that valued health, quality, and environmental values buoyed the success of small natural products companies like Method and Seventh Generation. Leveraging its distribution network and shelf space at large box retailers, competitive pricing at a small premium above similar natural cleaning products, and a brand name associated with quality sales of GreenWorks exceeded expectations and grew the entire green cleaning product market. The case asks students to consider whether Clorox should continue to build out its GreenWorks product line and if it can use the strategies employed to build GreenWorks to compete in other product lines or markets.

Authors: Ashley Nowygrod, Brian Moss, Nathan Springer, Craig Cammarata, Jennifer Gough
Institution: University of Michigan, USA
Competition Year2011
Place3rd place
TrackCorporate Sustainability
Key WordsGreenworks, Clorox, Seventh Generation, Method, Cleaning products, Green cleaning products
Permission RightsPlease contact permissions@globalens.com for permission rights. You can purchase this case directly from the GlobaLens website.
DownloadInspection Copy (abbreviated version)
Author image

oikos International

posted June 30, 2011

This might be for you.

Portland Roasting Company: Farm Friendly Direct

Case Abstract

This case describes the issues and dilemmas facing a company in their efforts to differentiate their product through a social sustainability programme. Over the years, the company has built a strong reputation with their sustainability efforts, particularly amongst their peers in the specialty coffee industry. There is some question as to whether this reputation has been visible to consumers and if consumers see the value-proposition.  The case covers the history of coffee, the specialty coffee industry, the supply chain and roles of different participants, and the competitive landscape.

Furthermore, most of the competitive eco-labels and certification schemes are discussed.  The reader is asked to decide the appropriate method for conveying the company’s social sustainability efforts to the marketplace and beyond that, to consider how one might measure and monitor social programs in the developing world. The case is designed to highlight decisions related to marketing and operations strategy, pros and cons of certification, and particularly social sustainability versus the other aspects of sustainability.

Authors: Madeleine Pullman, Greg Stokes, Price Gregory, Mark Langston, Brandon Arends
Institution: Portland State University, USA
Competition Year2010
Place1st place
TrackCorporate Sustainability
Key WordsCorporate Sustainability, Coffee, Social sustainability programme, Supply chain, Eco-labels, Certification, Measuring, Monitoring
CoursesStrategy, Marketing, Supply Chain Management
Target AudienceMBA, Business Executives
Permission RightsThis 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.
DownloadFree Online Copy
Author image

oikos International

posted June 30, 2010

This might be for you.

Lululemon’s commitment to the environment: A tangle of seaweed, suppliers, and social responsibility

Case Abstract

This case introduces Lululemon, an athletic and yoga wear retailer, and their commitment to the environment. The company was founded on its Corporate Social Responsibility (CSR) initiative, and took pride in its innovative approach towards the environment. The company trusted the suppliers with which it had relationships, and believed the products it was buying were as the suppliers described. Lululemon, faced with pressure to expand and maximise profits while maintaining its CSR pledge to the environment and innovation, found itself in a difficult position when an environmentally-friendly fiber it used for a clothing product was determined to be marketed falsely.

Globalisation is an inevitable facet of today’s business world. Many companies rely on manufacturers and suppliers from around the world in order to manage businesses and generate profits. The connection between a corporate headquarters and its many suppliers illustrates, in some cases, exciting, new opportunities, and in others, ill-conceived relationships destined for failure. Companies that expand rapidly require more trust in the growing number of suppliers they rely on, and can experience growing pains more frequently or to a greater degree than those experienced by well-established companies with moderate expansion strategies.

Many businesses incorporate sustainability efforts as part of their strategic plan and corporate social responsibility initiative. Businesses are attempting to find a balance between responsibility toward the environment while maximising profits. Companies that incorporate sustainability as part of their strategic plan are often viewed as innovative and responsible; elevating their status as a socially responsible organisation.

This case introduces Lululemon, an athletic and yoga wear retailer, and their commitment to the environment. The company was founded on its Corporate Social Responsibility (CSR) initiative, and took pride in its innovative approach towards the environment. The company trusted the suppliers with which it had relationships, and believed the products it was buying were as the suppliers described. Lululemon, faced with pressure to expand and maximise profits while maintaining its CSR pledge to the environment and innovation, found itself in a difficult position when an environmentally-friendly fiber it used for a clothing product was determined to be marketed falsely.

This case has been developed for academics and professionals alike interested in the effects of rapid expansion, and the role CSR can play in a sustainability strategy when profit maximisation is pursued. It also deals with the trust needed between supplier and buyer, and the effects of ineffective due diligence. The case aids in analysing sustainability as a foundation for both strategic and CSR plans, as well as detailing how a company can be directly held responsible for its suppliers’ actions.

Authors: Andrea Erin Bass
Institution: University of Nebraska-Omaha, USA
Competition Year2010
Place2nd place
TrackCorporate Sustainability
Key WordsGlobalisation, Growth Strategy, Corporate Social Responsibility, Retailer, Yoga, Clothing, Suppliers, Due Diligence, Fabric
CoursesMarketing, Ethics and Social Responsibility, Operations Management, Business Administration
Permission RightsThis 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.
DownloadFree Online Copy
Author image

oikos International

posted June 30, 2010

This might be for you.