Ivey Publishing

Sustainable Strategic Management

Stead, J.G.; Stead, W.E.,2e (United States, M.E. Sharpe, 2014)
Prepared By under review,
Chapter and Title Chapter Matches: Case Information
Chapter 1:
The Emergence of Sustainable strategic Management

Anthony Goerzen

Product Number: 9B13M118
Publication Date: 2/21/2014
Revision Date: 11/19/2014
Length: 11 pages

By 2013, Sobey’s Inc., one of Canada`s largest food retailers, had initiated a number of programs in order to reduce its environmental footprint and to try to meet the public’s expectations that business would address such sustainability issues as waste management, genetically modified products and food safety. At the top of Sobey’s agenda was to develop a sustainable seafood strategy. While data collection, metric selection, employee incentives and customer education were important parts of this emerging strategy, a central decision was what products to choose to sell or not to sell. Certain major competitors had announced that they would sell only “certified sustainable” seafood, an approach strongly advocated by well-known environmental organizations. Sobey’s, on the other hand, decided that to abandon uncertified seafood would not only hamper its bottom line but also would eliminate its ability to push the very fisheries that needed more guidance towards better practices. Yet, to continue to sell “red zone” seafood was very controversial and could jeopardize Sobey’s standing as a leader in sustainable practices — an outcome that could have serious negative consequences in the marketplace. In this context, the vice-president of sustainability had to implement a sustainable seafood strategy by year’s end.

Teaching Note: 8B13M118 (7 pages)
Industry: Retail Trade
Issues: Sustainability; supply chain; retailing; corporate social responsibility; Canada
Difficulty: 4 - Undergraduate/MBA

Jette Steen Knudsen, Dana Brown

Product Number: 9B12M081
Publication Date: 9/7/2012
Revision Date: 2/14/2013
Length: 17 pages

AWARD WINNING CASE - Corporate Social Responsibility Award, 2012 European Foundation for Management Development (EFMD) Case Writing Competition. This case study deals with the opportunities and challenges faced by Danish pharmaceutical company Novo Nordisk with regard to its sustainability approach in China as of 2012. Novo Nordisk is well known for striving to integrate its business activities in a financially, environmentally, and socially responsible way, and many Novo Nordisk employees proudly refer to Novo Nordisk as a “triple bottom line (TBL) company.” Novo Nordisk has been active in China for more than 50 years; however, since the Chinese economy has expanded tremendously, this increase in wealth and a more sedentary Western lifestyle have led to growing problems with obesity. As a result, China’s insulin market is booming.

Novo Nordisk therefore faces new challenges concerning how best to organize its TBL program in a way that ensures a comprehensive approach throughout the organization, yet allows Novo Nordisk China to adopt initiatives that fit the Chinese business context. Furthermore, with ever-increasing competition for access to China’s lucrative insulin market, Novo Nordisk’s competitors are also engaging in sustainability, which means that Novo Nordisk must keep innovating to stand out, and must use sustainability as a source of competitive advantage.

Teaching Note: 8B12M081 (8 pages)
Industry: Health Care Services
Issues: Corporate Social Responsibility; Non-market Strategy; China; Europe
Difficulty: 5 - MBA/Postgraduate

Timo Busch, Vincent Dessain, Kathleen McCarthy

Product Number: 9B11M096
Publication Date: 11/30/2011
Length: 21 pages

This case is about the multinational company ABB’s development of a sustainability strategy, and its dilemmas in supplying hydropower dam projects. Adam Roscoe, head of sustainability at ABB Group, had to evaluate the content and business consequences of a letter written by the non-governmental organization (NGO) International Rivers. The letter discussed the alleged violations of sustainability criteria when building the Nam Theun 2 dam in Laos. Roscoe needed to assess what implications the letter had for ABB, which had a large stake in the outcomes of the project. Such a letter from a prominent NGO might affect ABB’s policies and practices in sustainability.

The World Bank and the Asian Development Bank had great interest in seeing the project’s success, as it would supply rural areas of Laos and Thailand with electricity, bring in a large source of revenue that would be used in poverty-reduction programs for Laos and, lastly, provide a non-carbon-based energy source. ABB also had to consider the position of its stakeholders including customers, investors, media, and NGOs. If ABB was associated with a dam project that did not comply with international regulations, this could lead to negative publicity and potential loss of business.

Roscoe thus faced two interweaved questions: Would International Rivers’ letter pose a reputation risk for ABB? What would this example mean for ABB’s sustainability criteria and objectives and would this need to be acknowledged and, if so, how?

Teaching Note: 8B11M096 (10 pages)
Industry: Manufacturing
Issues: Stakeholder Analysis; Sustainability; Risk Analysis; Green Energy; Hydro; Switzerland; Thailand; Laos
Difficulty: 4 - Undergraduate/MBA

Dima Jamali

Product Number: 9B11M050
Publication Date: 6/21/2011
Revision Date: 11/21/2016
Length: 16 pages

The project manager of the Partnership for Lebanon (PFL) and Cisco Systems’s regional director of corporate affairs for the Middle East and Africa met in September 2009, three years after the PFL was first initiated. The meeting primarily revolved around the challenge of sustainability and what useful suggestions they could put forward to their partners to ensure that the projects initiated through the PFL were not dependent on the continuous investments of the partners.

The PFL, a major partnering initiative in a post-war context, was initiated in September 2006 after President George W. Bush called for the assistance of U.S. companies to help in the relief and reconstruction efforts in Lebanon after the 2006 war between Israel and Hezbollah. The five companies involved were Cisco Systems, Intel Corporation, Ghafari Inc., Occidental Petroleum, and Microsoft. They leveraged their core competence under five main work streams: emergency relief/response, job creation/private-sector revival, developing information and communication technology infrastructure, workforce training/education, and developing connected communities. Cisco took a leadership position within the PFL, establishing a management office in Beirut staffed by five senior full-time Cisco employees, and committed an investment of $10 million in the Lebanese private sector over a three-year period. The PFL’s corporate partners engaged closely with the Lebanese government as well as with various international and local NGOs to develop initiatives under the five work streams and yield a long-term sustainable impact.

Teaching Note: 8B11M050 (10 pages)
Industry: Information, Media & Telecommunications
Issues: Business and Society; Corporate Social Responsibility; Information and Communication Technology; Lebanon; Middle East and United States
Difficulty: 4 - Undergraduate/MBA

Pratima Bansal, Jijun Gao

Product Number: 9B08M073
Publication Date: 9/22/2008
Revision Date: 11/18/2008
Length: 17 pages

The chief executive officer of an oil and gas company must decide whether he wants to invest heavily in reducing greenhouse gases. Specifically, Suncor Energy must evaluate whether it should invest $425 million in carbon capture and storage or wait until there is greater certainty in the political, social and business environment. The case will help students develop skills of analyzing business decisions under higher environmental uncertainty, especially when the outcome is a long-term goal. Further, the issues presented in the case open up discussions about climate change and the interaction between business actions and societal expectations. There is also an opportunity to speak about the interaction between business and public policy.

Teaching Note: 8B08M73 (8 pages)
Industry: Mining, Quarrying, and Oil and Gas Extraction
Issues: Decision Making; Tradeoff Analysis; Uncertainty
Difficulty: 4 - Undergraduate/MBA

Chapter 2:
In Search of Sustainability

Margaret Sutherland, Tashmia Ismail

Product Number: 9B14M026
Publication Date: 5/12/2014
Revision Date: 5/12/2014
Length: 11 pages

SABMiller, the world’s second largest brewer, has developed a business model in Mozambique that represents a radical departure from the firm’s traditional approach to beer production. Despite this multinational’s well-developed global supply chains and heavily centralized processes, it has disrupted both established processes and products and has, instead, innovated to produce a cassava-based beer in an effort to serve the low-income consumers who comprise the bulk of the African economic pyramid. In a marked departure from corporate best practices, the manufacturing process begins outside of the brewery and in the vicinity of the scattered and rural cassava farming plots.

Teaching Note: 8B14M026 (23 pages)
Industry: Manufacturing
Issues: Innovation; low income markets; bottom of pyramid; Mozambique
Difficulty: 5 - MBA/Postgraduate

Mike Valente

Product Number: 9B11M033
Publication Date: 6/21/2011
Revision Date: 12/8/2011
Length: 17 pages

In early 2011, PepsiCo, one of the world’s largest food and beverage companies, is receiving immense criticism for its role in social and ecological issues associated with the food system. Major health problems including obesity, heart disease and diabetes, not to mention environmental issues such as excessive packaging and waste, have encouraged PepsiCo’s chief executive officer (CEO) to rethink the company’s strategy. The CEO feels that PepsiCo has a responsibility to develop solutions to key global challenges like obesity. Doing so would require an extensive consideration of PepsiCo’s positioning in the marketplace in light of the many products it provides that currently contradict this very objective.

Teaching Note: 8B11M033 (15 pages)
Issues: Sustainability; Health Issues; Business Interests versus Public Interests; Embedding Sustainability; United States
Difficulty: 4 - Undergraduate/MBA

Oana Branzei, Kim Poldner

Product Number: 9B10M089
Publication Date: 11/26/2010
Length: 16 pages

AWARD WINNING CASE - Latin American Business Cases Award, 2012 European Foundation for Management Development (EFMD) Case Writing Competition. This case illustrates the founding and growth of Veja, the first eco-sneaker company in the world, in the broader context of the evolution of the fashion industry and the emergence of the eco-fashion movement. By September 2010, the five-year old venture had become a reference in ethical fashion, and an inspiration for other eco-fashion start-ups. Its path, its successes and its aspirations made it a perfect acquisition target; like-minded companies like Timberland were already feeling out the two founders.

Sebastien Kopp and Francois-Ghislain Morillion were still fulfilling their dream. They had fun trying to craft ever more sustainable business approaches. They were still excited about the opportunity to develop solutions or workarounds for socially- and environmentally-problematic business practices. The case presents several solutions, focusing on the development of sustainable business practices in organic cotton, wild natural rubber and traditional veggie-tanned leather. The case also deals with the issue of how ventures integrate sustainable practices into a holistic and ever improving offering, which engages multiple supply chain participants (employees, consumers, suppliers, partners, even artists) in co-devising a value proposition that appeals not just to our sense of fashion, but also to our conscience. Essentially, the case is a story of fashioning identities by artfully bending consumers' appreciation towards the expression of unity with the earth and across cultures.

Teaching Note: 8B10M89 (15 pages)
Industry: Manufacturing, Social Advocacy Organizations
Issues: Corporate Responsibility; Ethical Issues; Strategy Implementation; Emerging Markets; Leadership; Strategy Development
Difficulty: 4 - Undergraduate/MBA

Michael Sider, Jana Seijts, Ramasastry Chandrasekhar

Product Number: 9B10M015
Publication Date: 1/27/2010
Revision Date: 4/27/2010
Length: 16 pages

Under pressure from the Rainforest Action Network to make their lending policies more sustainable, executives at the Royal Bank of Canada who deal with issues of corporate citizenship and sustainability must decide whether to continue financing companies involved in extracting oil from the tar sands of Alberta, Canada. The case asks students to consider the following questions: 1) Should banks lend to any business or industry the government deems to be sustainable? 2) What are the risks of lending to businesses some stakeholders deem unsustainable? 3) How should banks respond when pressured by an interest group? 4) How does a bank decide what is sustainable lending practice? The supplement B case RBC-Financing Oil Sands (B), product number 9B10M016, is also available.

Teaching Note: 8B10M15 (7 pages)
Industry: Finance and Insurance
Issues: Sustainable Development; Environment
Difficulty: 5 - MBA/Postgraduate

Chapter 3:
Environmental Analysis for Sustainable Strategic Management

Vesela Veleva, Anna Montanari, Peter Clabby, Jonathan Lese

Product Number: 9B12M115
Publication Date: 1/22/2013
Revision Date: 1/10/2013
Length: 14 pages

This case examines the business options for implementing a company-wide product take-back program. It focuses on PerkinElmer, a $1.9 billion global technology company developing diagnostics and biomedical products for the environmental and human health sectors. The company, which operates in more than 150 countries, is committed to community engagement, sustainable and ethical business practices and eco-innovative products, including a commitment to continuously reducing the environmental and health impacts of its products throughout their useful lives. As of 2012, PerkinElmer was required to comply with two European Union regulations restricting hazardous substances and monitoring the disposal of electronic waste, but there were no similar broad-based federal U.S. regulations at that time. One of the European Union directives required the company to practise end-of-life management, that is, to take back and responsibly manage its products at the end of their useful lives. PerkinElmer used a study group at Boston College to examine the different options for handling old products and to discover if there was a profitable or at least profit neutral business model for doing so, in light of what its competitors were doing in this area. If the benefits outweigh the risks, how should the company roll out a corporate-wide product take-back strategy?

Teaching Note: 8B12M115 (6 pages)
Industry: Health Care Services
Issues: Sustainability; biotechnology; environmental strategy; product stewardship; United States
Difficulty: 4 - Undergraduate/MBA

Aloysius Newenham-Kahindi, Paul W. Beamish

Product Number: 9B10M020
Publication Date: 10/20/2010
Revision Date: 11/19/2014
Length: 15 pages

This case examines the giant Canadian mining corporation, Barrick Gold Corporation (Barrick), (called Africa Barrick Gold plc since 2009), and the way it engages in sustainable community developments that surround its mining activities in Tanzania. Following recent organized tensions and heightened criticism from local communities, media, international social lobbyists and local not-for-profit organizations (NFOs), Barrick has attempted to deal with the local communities in a responsible manner. At issue for senior management was whether there was much more that it could reasonably do to resolve the tensions.

The case considers: how MNEs seek social license and local legitimacy; the relevance of hybrid institutional infrastructures; the evolving global roles for MNEs and their subsidiaries. The case is appropriate for use in courses in international management, global corporations and society, and international development and sustainable value creation.

Teaching Note: 8B10M20 (18 pages)
Industry: Mining, Quarrying, and Oil and Gas Extraction
Issues: Subsidiaries; Business and Society; Corporate Social Responsibility; Cross Sector Social Partnership; Government Relations
Difficulty: 5 - MBA/Postgraduate

James McMaster, Jan Nowak

Product Number: 9B09A008
Publication Date: 5/13/2009
Revision Date: 5/10/2017
Length: 21 pages

This case analysis traces the establishment and subsequent operation of FIJI Water LLC and its bottling subsidiary, Natural Waters of Viti Limited, the first company in Fiji extracting, bottling and marketing, both domestically and internationally, artesian water coming from a virgin ecosystem found on Fiji's main island of Viti Levu. The case reviews the growth and market expansion of this highly successful company with the brand name FIJI Natural Artesian Water (FIJI Water). The company has grown rapidly over the past decade and a half, and now exports bottled water into many countries in the world from its production plant located in the Fiji Islands. In 2008, FIJI Water was the leading imported bottled water brand in the United States. In the context of great marketing success of the FIJI brand, particularly in the U.S. market, the case focuses on how the company has responded to a number of corporate social responsibility (CSR) issues, including measuring and reducing its carbon footprint, responsibilities to key stakeholders, and concerns of the Fiji government with regard to taxation and transfer pricing issues. The case provides a compelling illustration of how CSR challenges may jeopardize the sustainability of a clever marketing strategy.

Teaching Note: 8B09A08 (11 pages)
Industry: Manufacturing
Issues: Environment; Corporate Responsibility; Marketing Communication; Transfer Pricing; International Marketing; Greenwashing; Green Marketing; Brand Positioning
Difficulty: 4 - Undergraduate/MBA

Pratima Bansal, Natalie Slawinski

Product Number: 9B09M035
Publication Date: 5/13/2009
Revision Date: 7/2/2009
Length: 17 pages

In June 2008, the chief executive officer of Talisman Energy Inc. (Talisman) and his senior executive team met with the company's board of directors. The purpose of this meeting was to debate Talisman's proposed entry into the oil-rich Kurdistan region of Iraq. This move was potentially very lucrative for Talisman but was fraught with risks. These risks were exacerbated by Talisman's previous foray into Sudan; during that expansion Talisman had been accused of complicity in human-rights abuses, stemming from industry-accepted royalties and fees it had paid to the government. This payment of fees was held as an example by public interest groups to allege that Talisman was indirectly funding the Sudanese civil war. Talisman's reputation had suffered to the point where the ire of investors and U.S. and Canadian governments was sufficient for Talisman to exit Sudan in 2003. There were many questions about the proposed move to Iraq, including the political situation, the views of the U.S. and Canadian government, and especially the US$220 million fee payable to the Kurdistan Regional Government. Should Talisman enter Iraq, and if so, could they avoid experiencing the same outcome as Sudan?

Teaching Note: 8B09M35 (11 pages)
Industry: Mining, Quarrying, and Oil and Gas Extraction
Issues: Corporate Responsibility; Risk Management; Political Environment; Sustainable Development
Difficulty: 4 - Undergraduate/MBA

Chapter 4:
SSM Resource Assessment

Ram Subramanian

Product Number: 9B14M059
Publication Date: 5/2/2014
Revision Date: 5/5/2014
Length: 13 pages

SolarCity Corporation competed in the downstream segment of the U.S. solar energy industry. The company installed solar panels for residential and commercial customers, using a decentralized (off-the-grid) power generation and transmission model to compete with utility companies that used a centralized (grid-based) model. Solar energy was a renewable source (unlike fossil-based energy sources) and therefore scored highly on both environmental and sustainability factors. To overcome the high switching costs to customers, SolarCity marketed solar energy using a financing model in which the company owned the assets and the customer merely paid a monthly fee for the energy used. As a new player in a nascent industry, SolarCity had never been profitable. SolarCity’s co-founder and chief executive officer had to develop a plan to make the company profitable despite the fact that utility companies were fighting back politically and the government was set to reduce tax subsidies for solar assets in the near future.

Teaching Note: 8B14M059 (10 pages)
Industry: Utilities
Issues: Solar energy; business model; disruptive innovation; United States
Difficulty: 4 - Undergraduate/MBA

Peter W. Moroz, Simon Parker, Edward Gamble

Product Number: 9B14M030
Publication Date: 3/24/2014
Revision Date: 4/2/2014
Length: 12 pages

In 2014, two friends have launched tentree (TT), a Canadian entrepreneurial venture that sells an environmentally sustainable and trendy brand of apparel. For every product sold, TT plants 10 trees in locations around the world. Although TT is still in its infancy, it is already experiencing huge growth. The entrepreneurial founders now face several challenges: how to keep pace with the growing demand; how to plant as many trees as they can while staying true to their sustainable, environmental philosophy; how to break into the U.S. and other markets; and where to source their product.

Teaching Note: 8B14M030 (7 pages)
Industry: Manufacturing
Issues: Social enterprise; media; sustainability; growth; Canada; United States
Difficulty: 4 - Undergraduate/MBA

Chris Laszlo, Patrick Kelly

Product Number: 9B13M116
Publication Date: 12/20/2013
Revision Date: 12/20/2013
Length: 16 pages

Having been called upon by global leaders to use its technology to address the global crises of climate change and poverty, Cisco opts to pursue sustainability for corporate social responsibility and as a driver of differentiation and competitive advantage. The case discussion explores how the company answered this call to action and how the resulting strategies have proven effective in protecting its competitive advantage in an increasingly hostile business environment. The case traces the company’s historical rise to power through the Internet bubble of 2000 and up to the present day, as the firm adjusts to competition in the 21st century. With the introduction of its new and ground-breaking technology, Cisco seeks to drive sustainability and future profits. The question becomes: will it work?

The CEO ponders how he could use his company’s core business of information technology (IT) to drive global environmental and economic sustainability. Can he fulfill his dual responsibility of doing the right thing for his shareholders while, at the same time, doing the right thing for the world at large?

Teaching Note: 8B13M116 (6 pages)
Industry: Information, Media & Telecommunications
Issues: Sustainability; smart cities; United States
Difficulty: 4 - Undergraduate/MBA

Vidhi Chaudhri, Asha Kaul

Product Number: 9B13M059
Publication Date: 6/20/2013
Revision Date: 6/19/2013
Length: 13 pages

In June 2012, ITC Limited, an Indian conglomerate recognized globally for its sustainability initiatives, was deliberating on how to apply its model of inclusive growth to a new initiative in dairy farming. Known for its expertise in creating innovative business models, ITC had created shared value for societies, businesses and shareholders by leveraging synergies across businesses. However, the expertise required in dairy farming was unexplored, logistical issues loomed large and a lack of clarity surrounded the dairy development’s integration with existing ITC businesses. Because of the complexities involved in diversifying and expanding to a new sector, ITC’s chairman and his leadership team wondered whether they could once again create shared value.

Teaching Note: 8B13M059 (10 pages)
Industry: Agriculture, Forestry, Fishing and Hunting
Issues: Corporate social responsibility; shared value; sustainability; diversity; India
Difficulty: 5 - MBA/Postgraduate

Chapter 5:
SSM Competitive Level Strategies

Garima Sharma, Chris Laszlo, Indrajeet Ghatge

Product Number: 9B13M109
Publication Date: 11/5/2013
Revision Date: 11/1/2013
Length: 8 pages

Ford Motor Co. develops and commercializes a green technology that replaces a traditional and scarce resource with an abundant bio-material. The pilot project becomes hugely successful, and, within the company, the idea of expanding the use of bio-material gains considerable momentum, but implementation and customer acceptance prove to be a challenge. Two members from the company’s research and engineering division work together to overcome these obstacles and move the company toward a vision of sustainability that involves more than just fuel economy and cost reduction.

Teaching Note: 8B13M109 (10 pages)
Industry: Transportation and Warehousing
Issues: Sustainability; innovation; automobiles; materials; United States
Difficulty: 5 - MBA/Postgraduate

Chris Laszlo, Anya Briggs, Jayesh Potdar

Product Number: 9B13M108
Publication Date: 10/21/2013
Revision Date: 10/18/2013
Length: 11 pages

GOJO Industries, a U.S.-based hand hygiene company, plans to use sustainability as a business strategy in its big hairy audacious goal of reaching one billion people every day by 2020. It has developed a six level framework to embed sustainability throughout every aspect of the company internally and to assess its successes in the following areas: mitigating risk; reducing energy, waste and materials; differentiation; entering new markets; protecting and enhancing brand; and influencing industry standards. The company has a long history of using sustainability to drive innovation and facilitate expansion into new markets and sees sustainability as a key differentiator from its competitors to achieve its goal. In order to so, the company must also consider the importance of employee engagement in order to further embed sustainability and increase the number of people it reaches with its products.

Teaching Note: 8B13M108 (6 pages)
Industry: Health Care Services
Issues: Growth strategy; competitive advantage; flourishing; social sustainability; United States
Difficulty: 4 - Undergraduate/MBA

Ram Subramanian

Product Number: 9B13M068
Publication Date: 6/11/2013
Revision Date: 5/4/2016
Length: 14 pages

AWARD WINNING CASE - This case won the 2013 Oikos Sustainability Case Writing Competition. Chipotle Mexican Grill, Inc. competes in the fast casual segment of the restaurant industry. Its founder and current co-CEO has always emphasized not only good tasting food but also a commitment to sustainability through the mission statement: “Food with Integrity.” The company has positioned itself as a differentiator, using both food quality and a commitment to sustainability as factors that isolate it from its competitors. However, in 2012, the company faces a number of challenges from increased competition and rising food costs. As a result, a hedge fund investor has recently called for shorting the company’s stock. The co-CEOs must decide on the best course to confront these challenges as the company’s stock price is in a free fall.

Teaching Note: 8B13M068 (9 pages)
Industry: Accommodation & Food Services
Issues: Sustainability; Differentiation; Positioning; United States
Difficulty: 4 - Undergraduate/MBA

Robert Klassen, Ramasastry Chandrasekhar

Product Number: 9B13M010
Publication Date: 1/28/2013
Revision Date: 2/27/2013
Length: 15 pages

The CEO of Britannia Industries Ltd, a manufacturer of bakery products, was at a crossroads. Two years earlier, the firm had started providing specially fortified biscuits to small groups of school-going children in selected locations in India. The product offered a step toward addressing the widespread national problem of malnutrition and, unlike corporate philanthropy, this initiative was an extension of what the company was fundamentally good at – making biscuits. After early signs of success, Britannia’s CEO faced two challenges. How should Britannia scale up the manufacture and distribution of social products? And, how should the firm develop the social products into a sustainable business?

Teaching Note: 8B13M010 (10 pages)
Industry: Manufacturing
Issues: Sustainable Development; Corporate Social Responsibility; Capacity Expansion; Stakeholder Management; Brand Management; Non-government Organization Partnerships; India
Difficulty: 4 - Undergraduate/MBA

Charles Dhanaraj, Prasad Vemuri, Monidipa Mukherjee, Vijay Parikh, Chitra Duwedi

Product Number: 9B11M058
Publication Date: 7/22/2011
Length: 17 pages

This case presents the launch of a water purifier aimed at providing safe and pure water for the masses in India — an innovation propelled by the need for sustainability and affordability. The case presents the product development story that first happened within the research and development division of the information technology company of the Tatas, Tata Consultancy Services (TCS), and subsequently at Tata Chemicals Limited (TCL). The case also brings out some of the internal working processes within the Tata group of companies, and the collaborative efforts that resulted in a low-cost breakthrough. The case highlights several uncertainties and risks that the company had to face in the process of establishing the initiative into a sustainable social business. The launch of the purifier, branded as Tata Swach, sets the trigger for the case analysis and discussion, which allows students to explore the product development lifecycle of a social venture, analyze TCL’s business model, and recommend improvements to exploit the technological breakthrough to its fullest. Students will be exposed to questions related to different decision points in a new product development journey targeted at the bottom of the pyramid (BOP).

Teaching Note: 8B11M058 (14 pages)
Industry: Utilities
Issues: Bottom of the Pyramid; Collaborative Innovation; Product Launch; Nanotechnology; Water Purifier; India; Ivey/ISB
Difficulty: 5 - MBA/Postgraduate

Andreas Schotter, Paul W. Beamish, Robert Klassen

Product Number: 9B08M048
Publication Date: 5/9/2008
Revision Date: 9/24/2018
Length: 19 pages

Carrefour, the second largest retailer in the world, had just announced that it would open its first Green Store in Beijing before the 2008 Olympic Games. David Monaco, asset and construction director of Carrefour China, had little experience with green building, and was struggling with how to translate that announcement into specifications for store design and operations. Monaco has to evaluate the situation carefully both from ecological and economic perspectives. In addition, he must take the regulatory and infrastructure situation in China into account, where no official green building standard exists and only few suppliers of energy saving equipment operate. He had already collected energy and cost data from several suppliers, and wondered how this could be used to decide among environmental technology options. Given that at least 150 additional company stores were scheduled for opening or renovation during the next three years in China, the project would have long term implications for Carrefour.

Teaching Note: 8B08M48 (13 pages)
Industry: Retail Trade
Issues: China; Strategy Implementation; Emerging Markets; Environmental Business Management; Operations Management
Difficulty: 4 - Undergraduate/MBA

Chapter 6:
SSM Corporate Level Strategy

Fariss-Terry Mousa, Katherine Holley

Product Number: 9B13M008
Publication Date: 3/12/2013
Revision Date: 2/27/2013
Length: 11 pages

Dominion Resources is an industry giant, generating and distributing electricity throughout much of the northeastern United States. The company has continuously explored and expanded into new markets. Its portfolio includes fossil-fueled electricity, nuclear power, renewable energies, gas exploration and more. This standalone A case considers a recent question of the proper mix between regulated and unregulated markets and the impact of such a decision on the firm’s future success. The standalone B case, Dominion Resources, Inc. (B) 9B13M009, examines how the disaster at the Fukushima Daiichi Nuclear Power Plant in Japan affects Dominion’s strategic planning given the change in public perception of nuclear power following the incident.

Teaching Note: 8B13M008 (9 pages)
Industry: Utilities
Issues: Energy; strategic decision-making; regulated markets; nuclear plants; United States
Difficulty: 4 - Undergraduate/MBA

Francisco Alberto Layrisse Villamizar, Gerardo Fernández Lozano

Product Number: 9B12M066
Publication Date: 7/24/2012
Revision Date: 8/16/2012
Length: 14 pages

Since 1966, the Rehabilitation Institute of Puebla Civil Association (IPODERAC) had dedicated itself to providing a home and education for children who had been abandoned in the streets of Mexico. Using an educational model based on the concept of personal development through honourable work, IPODERAC had successfully combined its desire to be financially self-sufficient with its goal of teaching educational values, responsibility, and discipline to the children in its care, thus enabling them to develop a sense of belonging and some useful life skills.

This case explores the inception and long evolution of IPODERAC’s educational model, as well as the organization’s constant search for production projects that would enable it to generate income. After meeting this goal, IPODERAC also faced the ongoing challenge of maintaining its business units without deviating from its institutional mission. By April 2009, IPODERAC had all but obtained self-sufficiency; however, given the national financial crisis and the emergence of the swine flu epidemic, IPODERAC’s main source of income (the sale of gourmet cheeses) had suddenly diminished. This crisis affected the stability of the institution, and new proposals for diversification were needed to strengthen IPODERAC’s financial sustainability and avoid similar pitfalls in the future.

Teaching Note: 8B12M066 (16 pages)8B12MS66 (16 pages)
Industry: Social Advocacy Organizations
Issues: Portfolio Management; Diversification; Social Entrepreneurship; Decision Making; Strategic Planning; Mexico
Difficulty: 4 - Undergraduate/MBA

Charles Dhanaraj, Oana Branzei, Satyajeet Subramanian

Product Number: 9B10M061
Publication Date: 1/27/2011
Length: 19 pages

AWARD WINNING CASE - Indian Management Issues and Opportunities Award, 2012 European Foundation for Management Development (EFMD) Case Writing Competition. This case explores value-driven strategy formulation and implementation by bringing to the fore issues of ethics, responsible leadership, social intiatives in emerging markets, and the global-local tensions in corporate social responsibility. It examines how Bayer CropScience addressed the issue of child labor in its cotton seed supply chain in rural India between 2002 and 2008. Bayer had been operating in India for more than a century. In December 2002, the Bayer Group completed the acquisition of India-based Aventis CropScience. Bayer CropScience first learned about the occurrence and prevalence of child labor in its newly acquired India-based cotton seed operations a few months post-acquisition, in April 2003. The Aventis acquisition had brought onboard a well-known Indian company, Proagro, which already had operations in the cotton seed production and marketing - a new segment of the supply chain for Bayer. Child labor was widespread in cotton seed production — a traditional practice taken for granted not only by Indian farmers but also by several hundred Indian companies then accounting for approximately 90 per cent of the market share. The (A) case focuses on Bayer’s decision whether, when, and how to launch a self-run program that would take direct responsibility for tracking and eradicating child labor in rural India.

Teaching Note: 8B10M061 (11 pages)
Industry: Agriculture, Forestry, Fishing and Hunting
Issues: Emerging Markets; Strategy Implementation; Ethical Issues; Crisis Management; Corporate Responsibility; India
Difficulty: 4 - Undergraduate/MBA

Chapter 7:
Choosing and Implementing SSM Strategies

Chris Laszlo, Katey McCabe, Eric Ahearn, Indrajeet Ghatge

Product Number: 9B12C012
Publication Date: 3/19/2012
Revision Date: 2/7/2014
Length: 17 pages

Clarke, a mosquito abatement company seen as having a core business that is environmentally harmful by its very nature — selling pesticides — faces unique challenges in its transformation into a sustainable enterprise. Should it shift its focus entirely towards offering “green” pesticides and risk losing some of its customers, or should it keep offering its less expensive, more toxic products? This case shows how even when innovation leads to new green products, processes, technologies, and business models, the leadership of a company must cope with the daunting task of engaging employees and customers in the idea that green can be effective and profitable.

Teaching Note: 8B12C012 (7 pages)
Industry: Manufacturing
Issues: Environmental Sustainability; Environmental Performance; Pesticides; United States
Difficulty: 4 - Undergraduate/MBA

Amit Gupta, Kshitij Saxena

Product Number: 9B11C036
Publication Date: 10/6/2011
Revision Date: 2/22/2012
Length: 23 pages

Sumeru Software Solutions was a software development consultancy firm headquartered in Bangalore, India, with offices in Washington, D.C., Dubai, and London. It began operations in July 2001 as a single project with two employees, and grew over 10 years into an organization with approximately 200 employees. The founding objective of Sumeru Software Solutions was to support Art of Living’s social development initiatives through profits earned from delivering high-quality services. Art of Living (AOL) was founded in 1981 by Sri Sri Ravi Shankarji as a not-for-profit, educational, humanitarian non-governmental organization engaged in stress-management programs, including yoga and meditation. Sumeru had developed a unique culture that combined corporate culture with the Art of Living principles of Seva, Satsang, Sadhana, and positivity even in the face of adversity. In line with the AOL principles, the four pillars of Sumeru culture were ethics, caring, sharing and trust. It purported to follow a peaceful yet aggressive way of doing business called “Serene Dynamism.” Harish Ramachandran, CEO of Sumeru Software Solutions, had created an enterprise that was different from other IT organizations. He was wondering how he would sustain the culture of the organization and make Sumeru a high-performing company over the next 10 years as it expanded its business and hired new employees.

Teaching Note: 8B11C036 (15 pages)
Industry: Information, Media & Telecommunications
Issues: Corporate Culture; Corporate Social Responsibility; Management Philosophy; Value-based Management; Work-life Balance; India; IIM-Bangalore/Ivey
Difficulty: 4 - Undergraduate/MBA

Vesela Veleva

Product Number: 9B10M011
Publication Date: 1/28/2010
Length: 21 pages

This case focuses on New Balance, a privately held company and the fourth largest athletic footwear manufacturer in the world. Founded over 100 years ago, New Balance has a strong social responsibility culture and mission established by its owners. Its commitment to employees, for example, was expressed through maintaining domestic manufacturing in the United States (the only large footwear manufacturer to do so presently) and avoiding layoffs in the deep recession of 2007-2009. In the late 1990s, the company established the Responsible Leadership Steering Committee to address human rights issues in overseas factories. Throughout the years, private ownership had allowed New Balance to take risks and make choices that publicly held companies might not have been able to do; at the same time, private ownership also meant lower pressures to disclose social and environmental performance. The owners were also very humble and hesitant to talk aloud about social responsibility. As a global player, the present challenge for the company has become to move corporate social responsibility (CSR) to the next level from doing what's right to fully integrating CSR into the business strategy. The overall goal of the case is to use the provided information from a comprehensive company assessment to identify a few key areas where New Balance can focus on and demonstrate industry leadership while also supporting the bottom line. A set of key questions is included at the end of the paper to guide student's discussion around critical issues for building an integrated CSR strategy for New Balance, considering its culture, structure and present level of corporate citizenship management.

Teaching Note: 8B10M11 (8 pages)
Industry: Manufacturing
Issues: Corporate Social Responsibility; Strategy Development; Business Sustainability; Performance Assessment
Difficulty: 4 - Undergraduate/MBA

Jennifer Lynes

Product Number: 9B09M028
Publication Date: 6/11/2009
Length: 11 pages

Scandinavian Airlines (SAS) is an innovator of strategic environmental management in the airline industry. Being a first-mover can have both its advantages and disadvantages. This case looks at the airline's decision of whether they should invest in the best available environmental technology for a fleet of new aircraft that would serve them for the next 25 years. While the technology for these low-emission engines had been around since the 1970s, it had never really been commercialized. SAS was feeling pressure from the regulatory authorities with regards to potential new charges and taxes that could affect the future operating costs of the fleet. Despite these anticipated future costs, at the time of the decision, the director of aircraft and engine analysis for SAS could not make an economic case for the more expensive engines. The challenge was for the fleet development team to try to convince the SAS management team to spend the extra kr5 million (Swedish Kronor) per aircraft for the dual combustor engine. Given that corporations are faced with increasing pressure with regards to greenhouse gas emissions and climate change, this case study presents an opportunity for discussion and analysis of various environmental concepts including strategic environmental management, adoption of best available environmental technologies, the role of internal environmental leadership in a large corporation and the effect of market-based mechanisms to improve a sector's environmental performance. The case illustrates the complexities of environmental decisions in striking a balance between meeting ambitious commitments and dealing with real capabilities of companies and external pressures.

Teaching Note: 8B09M28 (14 pages)
Issues: Corporate Culture; Management Decisions; Competitive Advantage; Environment
Difficulty: 4 - Undergraduate/MBA

Chapter 8:
Organizational Governance and Strategic Leadership in SSM

Stephen Sapp, Ramasastry Chandrasekhar

Product Number: 9B10N002
Publication Date: 2/11/2010
Length: 17 pages

The case presents the situation faced by the board of directors at Hydro One, a government-owned Canadian electric utility, as they discuss updating the current executive compensation packages because of the pending privatization of Hydro One. As a government owned enterprise, compensation was moderated by the job security and prospects of career advancement in the public sector, but the imminent privatization required the compensation system to be revisited. The case presents details of the current compensation system for Hydro One's key officers and the comparative data for their counterparts at similar firms. The case allows for discussion of the interplay between corporate governance processes, the corresponding responsibilities of directors and the decisions they make, in particular chief executive officer and executive compensation. The postscript to the case allows for a lively class room discussion of corporate governance, fiduciary responsibility and communication among major stakeholders.

Teaching Note: 8B10N02 (13 pages)
Industry: Utilities
Issues: Fiduciary Responsibility; Corporate Governance; Executive Compensation; Privatization
Difficulty: 4 - Undergraduate/MBA

Pratima Bansal, Marlene J. Le Ber

Product Number: 9B07M067
Publication Date: 1/4/2008
Revision Date: 7/3/2008
Length: 14 pages

Wall Street's darling, Google Inc., offered more than a pretty financial picture. Poverty, communicable diseases and climate change - some of the world's largest problems - were also key interests of Google's cofounders. By applying innovation and significant resources, Google's cofounders hoped that their efforts in these areas would one day eclipse Google itself in worldwide impact. On February 22, 2006, Google Inc. announced the appointment of an executive director of the newly created Google.org. With one per cent of Google Inc.'s equity and profit as seed money, Google.org's mandate was to address climate change, global public health, economic development and poverty. Although charity by successful entrepreneurs was not unusual, this press release signaled a new organizational form, a for-profit philanthropic company. The new executive director's task ahead was unprecedented. How could he leverage the company's for-profit status to make the biggest impact possible with the resources trusted to Google.org? What decision-making criteria should be used for strategic investments? How would he measure Google.org's success?

Teaching Note: 8B07M67 (11 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Corporate Governance; Strategic Decision Making; Business Sustainability; New Organizational Forms
Difficulty: 4 - Undergraduate/MBA