Ivey Publishing

The Age of Sustainable Development

Jeffrey D. Sachs (United States, Columbia University Press, 2015)
Prepared By Gabriel A. Huppé,
Chapter and Title Chapter Matches: Case Information
Chapter 1:
INTRODUCTION TO SUSTAINABLE DEVELOPMENT

TRANSALTA UTILITIES CORP.
Rod E. White, Adam Twarog, John McCready

Product Number: 9A91M005
Publication Date: 1/1/1991
Revision Date: 5/10/2002
Length: 17 pages

As they approached their strategic session, TransAlta's senior executives confronted a changing business environment. The company's goal had always been to provide reliable electric service to their customers at the lowest possible cost. Now a new variable was entering the picture: the environment and the question of sustainable development. The release of the report of the World Commission on Environment and Development, chaired by Harlem Brundtland, gave credibility to the concept of sustainable development and has elevated environmental issues on the international agenda. How would this impact the company's business strategy and competitive advantage?

Teaching Note: 8A91M05 (7 pages)
Industry: Utilities
Issues: Corporate Strategy; Natural Resources; Environment; Corporate Responsibility
Difficulty: 4 - Undergraduate/MBA


Chapter 2:
AN UNEQUAL WORLD

GODREJ CHOTUKOOL: A COOLING SOLUTION FOR MASS MARKETS
Charles Dhanaraj, Balasubrahmanyam Suram, Prasad Vemuri

Product Number: 9B11M105
Publication Date: 11/15/2011
Revision Date: 1/8/2014
Length: 11 pages

Godrej, a fast-moving commercial goods (FMCG) company in India that was historically known for its refrigerators in the Indian market, contemplated launching a new product for rural markets. Chotukool was an unconventional cooling solution targeted at the bottom of the pyramid (BOP) segment in India. More than 80 per cent of the Indian population did not own a refrigerator and 50 per cent earned less than US$2 per day. The study tracks Godrej’s journey of disruptive innovations from the conception of the idea to the marketing challenges faced by the company. It also focuses at length on how the organization planned to execute two parallel business models, with one aimed at the consumers of traditional refrigerators and the other simultaneously targeting current non-consumers. The case focuses on the management challenge of innovating across the value chain in order to succeed at social innovations.

Teaching Note: 8B11M105 (10 pages)
Industry: Manufacturing
Issues: Social Entrepreneurship; Social Innovation; Bottom of the Pyramid; Water Scarcity; Blue Ocean Strategy; India; Ivey/ISB
Difficulty: 5 - MBA/Postgraduate


Chapter 3:
A BRIEF HISTORY OF ECONOMIC DEVELOPMENT

VIETNAM'S EMBRACE OF ICT FOR ECONOMIC DEVELOPMENT: SUCCESS AND FUTURE CHALLENGES
Vu Minh Khuong, Robert D. Austin

Product Number: 9B15E005
Publication Date: 3/31/2015
Revision Date: 3/31/2015
Length: 26 pages

Vietnam has made impressive economic gains over a period of three decades, following the Doi Moi reforms of 1986. Before reform, the country’s socialist economy had been unable to displace the poverty that had plagued the country in the aftermath of the Vietnam War. After reform, Vietnam has experienced many years of sustained growth, as evidenced by its advances on several economic performance rankings. By 2014, Vietnam's rankings compared favourably with those of many of its Asian neighbours. A major feature of the country’s strategy for economic development was its emphasis on information and computing technologies. Students will analyze Vietnam's past successes to extract lessons that can lead to additional future success.

Teaching Note: 8B15E005 (15 pages)
Industry: Information, Media & Telecommunications
Issues: Economic development; technology; Vietnam
Difficulty: 5 - MBA/Postgraduate


Chapter 4:
WHY SOME COUNTRIES DEVELOPED WHILE OTHERS STAYED POOR

BUSES FOR DEMOCRACY: IMPROVING PUBLIC TRANSPORT IN SOUTH AFRICA
Anthony Wilson-Prangley, Gretchen L. Wilson-Prangley

Product Number: 9B14C028
Publication Date: 12/12/2014
Revision Date: 8/17/2015
Length: 13 pages

With the 2010 FIFA World Cup fast approaching, Johannesburg, South Africa, needs a much-improved public transport system. A bus rapid transit (BRT) system is proposed and the key challenge involves getting buy-in from the minibus-taxi industry, which serves current commuters with 22,000 minibus-taxis, but which sometimes threatens violence to ensure there is little change in its way of operating. The leader of the main Johannesburg taxi association embarks on a process of personal growth to find the courage and capacity to lead the taxi industry away from resistance and into a business partnership with the city. He and his small team undertake a personally risky journey to implement BRT through the Rea Vaya project, thus changing the landscape of Johannesburg and bringing safe transport to hundreds of thousands of residents. But only days after the launch of the BRT system, two people in a BRT bus are shot by a gunman. With the 2010 FIFA World Cup less than a year away, is it worth commuters and Rea Vaya workers being shot and potentially killed? Could anything have been done differently to avoid this? Should the whole project be put on hold? If they stop one more time, it might never get off the ground again.

Teaching Note: 8B14C028 (15 pages)
Industry: Public Administration
Issues: Leading change; stakeholder management; public management; transport; South Africa
Difficulty: 5 - MBA/Postgraduate


Chapter 5:
ENDING EXTREME POVERTY

TATA CHEMICALS MAGADI: CONFRONTING POVERTY IN RURAL AFRICA
Michael Valente

Product Number: 9B15M008
Publication Date: 2/20/2015
Revision Date: 2/20/2015
Length: 11 pages

In the summer of 2013, the managing director of Tata Chemicals Magadi, Africa’s largest soda ash manufacturer and one of the oldest and largest export earners in Kenya, was wondering how he was going to respond to a growing number of challenges. As a producer of a commodity product, the company was vulnerable to escalating energy costs, oversupply and economic cycles. Global growth had been sluggish since the 2008 economic recession and competition was intense, especially since the emergence of Chinese producers. Magadi Township, where the company’s production facility was located, was one of the poorest in the country, subject to droughts and without many of the basic public services typically provided by government such as roads, health care, electricity, water and education. To address these needs, the company migrated from a top-down, paternal, ad hoc and resource-intensive approach to a bottom-up, collaborative, holistic and resource-sharing style that focused on community capacity building and self-governance. However, the issue now is how to best balance the strong need to reduce costs while remaining committed to the sustainability of the surrounding community.

Teaching Note: 8B15M008 (13 pages)
Industry: Mining, Quarrying, and Oil and Gas Extraction
Issues: Mining; community; CSR; Kenya
Difficulty: 4 - Undergraduate/MBA


Chapter 6:
PLANETARY BOUNDARIES

TOTAL’S CARBON CAPTURE AND STORAGE PROJECT AT LACQ (A): RISK OPPORTUNITY IN PUBLIC ENGAGEMENT
Devin McDaniels, Frances Bowen

Product Number: 9B10M105
Publication Date: 10/24/2011
Length: 14 pages

This case series outlines the strategic choices facing Jean-Michel Gires, Total E&P France’s (TEPF) vice president of sustainable development, in designing and implementing a community engagement strategy. Case (A) begins with the approval of a pilot carbon capture and storage (CCS) system at TEPF’s Lacq facility in France, and outlines the strategic context for the community engagement process. Case (B) is positioned three years later.

The case includes a range of issues impacting the decision-making context, including the role of CCS in mitigating climate change; an outline of CCS technology; TEPF’s climate change strategy; the history of TEPF’s operations in the Lacq gas field, and interactions with local communities; the E.U. climate change regulatory environment (including carbon pricing and CCS); and CCS regulatory uncertainty in France.


Teaching Note: 8B10M105 (7 pages)
Industry: Mining, Quarrying, and Oil and Gas Extraction
Issues: Project Management; Stakeholder Analysis; Climate Change; Green Energy; Innovation; Risk Management; France
Difficulty: 4 - Undergraduate/MBA


Chapter 7:
SOCIAL INCLUSION

OLITZKI PROPERTY HOLDINGS CATALYZES CHANGE IN JOHANNESBURG
Anthony Wilson-Prangley, Jonathan Marks, Margaret Sutherland

Product Number: 9B15M118
Publication Date: 11/27/2015
Revision Date: 11/27/2015
Length: 11 pages

The large-scale abandonment of property in inner-city Johannesburg had brought waves of crime, illegal building occupation and general disinvestment. The founder of Olitzki Property Holdings (OPH) saw that an improvement at a precinct level, through carefully constructed partnerships with government, other property owners, tenants and illegal residents, was the key to building a sustainable, inclusive and socially grounded entrepreneurial business. OPH identified and bought derelict or illegally occupied buildings, then renovated and leased them to a combination of blue-chip and start-up businesses. While there was no doubt that OPH was profit focused, the ability to see the important role of development was a cornerstone of its success. Could the company — and the city — expand and maintain that success?

Teaching Note: 8B15M118 (9 pages)
Industry: Real Estate and Rental and Leasing
Issues: Urban development, stakeholders, change management
Difficulty: 5 - MBA/Postgraduate



KALAMANDIR: CREATING AN ECOSYSTEM FOR LIVELIHOOD GENERATION
Gita Surie

Product Number: 9B13M080
Publication Date: 10/9/2013
Revision Date: 10/7/2013
Length: 16 pages

Founded in 1997, Kalamandir was established in one of the poorest tribal areas in India to revive tribal dances and arts and generate livelihoods. It was now active in over 114 villages and its activities had helped increase the incomes of over 2,500 households. Despite strong achievements, much more would have to be done to make a substantial improvement in the lives of tribal villagers in Jharkhand, an impoverished region of India. The question was how to scale the activities and induce socio-economic development in a sustainable way. How could livelihood opportunities associated with arts, dance, culture and handicrafts be broadened while strengthening the region’s core agricultural income? How could the local leadership pool in villages be expanded and what mechanisms could be introduced to minimize conflicts or resolve them faster? How could Kalamandir attract dynamic professionals? Which government and private organizations did it have to develop stronger relationships with in order to access the financial resources it needed to grow?

Teaching Note: 8B13M080 (9 pages)
Industry: Other Services
Issues: Social entrepreneurship; ecosystem creation; livelihood generation; economic development; poverty reduction; India
Difficulty: 5 - MBA/Postgraduate



ITC LIMITED'S DAIRY DEVELOPMENT INITIATIVE: CORPORATE SOCIAL RESPONSIBILITY OR SHARED VALUE?
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 responsibilty; shared value; sustainability; diversity; India
Difficulty: 5 - MBA/Postgraduate


Chapter 8:
EDUCATION FOR ALL

CISCO AND CLOUD-BASED EDUCATION IN CHINA
Hugh Thomas, Robert P. Lee

Product Number: 9B14E028
Publication Date: 4/6/2015
Revision Date: 4/6/2015
Length: 13 pages

Cisco Systems, Inc., the dominant global supplier of the routers and switches that formed the backbone of the Internet, was considering entry into the cloud-based education market in China through the design and marketing of an in-classroom device, the Sunbird. The new vice-president and chief technology officer of Enterprise Networking Group, Cisco Greater China, had met with a Politburo member of the Communist Party of China and State Councilor with responsibilities including China’s science, technology and education policies. The vice-president had introduced Cisco’s global operations and the two women had discussed partnering, technology transfer, cross branding, joint product and service development, cooperation with Chinese companies, and the IT revolution and its effect on Chinese education. How could Cisco profitably join in the Chinese education IT revolution? Cisco had never entered the educational IT equipment space in any part of the world with its own dedicated product. Should it develop the Sunbird for the Chinese market?

A video is available for viewing online.


Teaching Note: 8B14E028 (11 pages)
Industry: Information, Media & Telecommunications
Issues: Management technology; cloud-based education; China
Difficulty: 4 - Undergraduate/MBA


Chapter 9:
HEALTH FOR ALL

CHILD IN NEED INSTITUTE: NON-PROFIT OR HYBRID?
Anjan Ghosh, Sougata Ray, Indranil Biswas

Product Number: 9B13M055
Publication Date: 6/11/2013
Revision Date: 6/12/2013
Length: 20 pages

AWARD WINNING CASE - Inclusive Business Models Award, 2013 European Foundation for Management Development (EFMD) Case Writing Competition and Best case, 2012 ISB-Ivey Global Case Competition. In February 2009, the additional director at the Child In Need Institute (CINI) received the most challenging assignment that CINI’s board of governors had ever given him — to prepare a comprehensive proposal recommending whether the organization should continue as a non-government organization (NGO) driven primarily by donations and grants, or should venture into social business. He had a month to give his recommendations. CINI was a reputable 37-year-old NGO from Kolkata (Calcutta), India, with a mission of “sustainable development in education, protection, health and nutrition of child, adolescent and woman in need.” Over the years, CINI had fought child malnutrition through health clinics and educating mothers, and had provided shelters and a path to betterment for street children. Despite recognition at CINI that donor funding was becoming scarce, any proposed social business was controversial because it ran the risk of alienating existing donors and replacing CINI’s existing purpose with a profit motive. This case has global relevance, as the challenges that CINI met in 2009 are faced by thousands of social enterprises across the world.

Teaching Note: 8B13M055 (13 pages)
Industry: Social Advocacy Organizations
Issues: Social entrepreneurship; innovation; India
Difficulty: 4 - Undergraduate/MBA


Chapter 10:
FOOD SECURITY

SOCIAL ENTREPRENEURSHIP AND SUSTAINABLE FARMING IN INDONESIA
Ilan Alon, Everlyne Misati

Product Number: 9B11A022
Publication Date: 6/8/2011
Length: 14 pages

Oded Carmi was a social entrepreneur striving for a “green Bali.” He started Sari Organik as a model farm intended to grow according to market demands and to benefit the local community while serving as an educational centre for small-scale farmers in the region. Thirteen years later, the idea was not as well embraced as he had hoped. The case discusses some of the challenges the entrepreneur was facing as the founder and owner of Sari Organik farm and the restaurant Warung Bodag Maliah (“overflowing basket”). His main challenge was to replicate and sustain his organic rice-farming model across Bali and eventually other parts of Indonesia. His initial thoughts involved some options: (a) to utilize the established village system and its leadership to re-introduce traditional rice-farming culture in Ubud, Bali, and eventually Indonesia; (b) to introduce a new model such as micro-franchising through which he would recruit a number of local farmers and provide them with the resources to grow rice organically; (c) to go into a joint venture with the few existing organic rice farmers in the region; and (d) to expand his business as a sole proprietor. The case may be a good starting point for a discussion on the impact of modernization on a traditional society and the role of business in society. Carmi, a native of Israel, tried to revive traditional farming techniques that were more sustainable and healthy. He realized he had to come up with a strategy soon.

Teaching Note: 8B11A022 (6 pages)
Industry: Agriculture, Forestry, Fishing and Hunting
Issues: Sustainable Development; Social Entrepreneurship; Micro-franchising; Rice Farming; Agriculture; Bali, Indonesia
Difficulty: 4 - Undergraduate/MBA


Chapter 11:
RESILIENT CITIES

INNER CITY RENOVATION: REBUILDING PROPERTIES, LIVES AND COMMUNITIES
Marty Donkervoort, John Melnyk

Product Number: 9B14M133
Publication Date: 2/18/2015
Revision Date: 2/12/2015
Length: 14 pages

Inner City Renovation (ICR) was a social enterprise established to address decaying infrastructure of inner city Winnipeg neighborhoods while providing opportunities for their residents — who would otherwise likely have been unemployed and on social assistance — to learn a trade and earn a living. ICR created 30 full-time permanent jobs and completed more than 100 construction projects in the Winnipeg area. However, its financial viability was an issue. It had lost money on operations every year and was close to the limit on its line of credit. While its most important customer had just ceased operations, which threatened the very existence of ICR, its founder was determined to keep it going.

Teaching Note: 8B14M133 (11 pages)
Industry: Construction
Issues: Social enterprise; construction; inner city issues; poverty; crime; drugs; Canada
Difficulty: 4 - Undergraduate/MBA


Chapter 12:
CLIMATE CHANGE

STORMFISHER (A): POWER WITH PURPOSE
Oana Branzei, Stewart Thornhill, Adam Reeds

Product Number: 9B08M092
Publication Date: 12/9/2008
Length: 16 pages

The case illustrates the tensions, trade-offs and adaptation challenges involved in designing a clean technology venture in a changing regulatory, funding and competitive context (Ontario, Canada, 2006-2008). The multiple decision points in the case have the students critically and iteratively assess the prospects of clean technology ventures and the evolving interface between technology and strategy in Canada's emerging clean energy sector. Beyond understanding the specific challenges faced by the venturing team, students are asked to grapple with the controversies and priorities for Canada's environmental policies in the energy sector, discuss competitive tension or symbiotic relationships between incumbents and disruptors, and actively align new venture design and strategy with a rapidly morphing regulatory, technological and competitive environment. The case discussion also opens up a broader platform for exploring the role of incumbents and disruptive business models in informing provincial and national responses to climate change, and, more generally, the role of cleantech venturing and venture capital in fostering climate change readiness and greener energy solutions. The A case asks students to compare and contrast the clean technologies available, discuss their pros and cons, and articulate a compelling business proposition.

Industry: Utilities
Issues: Venture Capital; Technology; New Venture; Sustainable Development
Difficulty: 4 - Undergraduate/MBA



ADAPTING TO CLIMATE CHANGE: THE CASE OF SUNCOR ENERGY AND THE ALBERTA OIL SANDS
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 13:
SAVING BIODIVERSITY AND PROTECTING ECOSYSTEM SERVICES

NESTLÉ: A SOCIAL MEDIA NIGHTMARE (A)
Jana Seijts, Benjamin Bigio

Product Number: 9B10M103
Publication Date: 3/28/2011
Length: 12 pages

As the largest food and drink company in the world, Nestlé S.A. prided itself on a solid reputation built over the past 150 years. On March 17, 2010, the chairman of the board of directors was surprised by a YouTube video created by the environmental activist group Greenpeace. The graphic and provocative video criticized Nestlé for its use of palm oil in Nestlé products. It helped Greenpeace make a bold statement: Nestlé products were leading to deforestation and the extinction of orangutans. Within 24 hours, the video had more than 100,000 views and anti-Nestlé campaigns quickly emerged on Facebook, Twitter, and other social media networks around the world. At the same time, Greenpeace activists dressed up as orangutans and protested at Nestlé’s headquarters and factories in Europe. Activists urged the company to stop sourcing palm oil from companies that destroy forests in the process. Considering the popularity and force of social media, how should Nestlé react to the YouTube video?

Teaching Note: 8B10M103 (6 pages)
Industry: Manufacturing
Issues: Public Relations; Crisis Communication; Social Media; Food and Beverage
Difficulty: 4 - Undergraduate/MBA


Chapter 14:
SUSTAINABLE DEVELOPMENT GOALS

THE CANADIAN BOREAL FOREST AGREEMENT: A REVOLUTIONARY PARTNERSHIP FOR SUSTAINABLE DEVELOPMENT
Michael Valente, Mark Desjardine

Product Number: 9B13M121
Publication Date: 12/3/2013
Revision Date: 3/7/2014
Length: 19 pages

The Canadian Boreal Forest Agreement (CBFA) had two primary purposes: (1) to protect Canada’s boreal forest from harmful logging practices; and (2) to improve and protect the reputation of Canada’s forest industry and companies. But the CBFA’s ambitious plans overlooked the fundamental challenges associated with the agreement’s implementation. Two years after its signing, the agreement suffers from a severe lack of funding, the withdrawal of one signatory and major hurdles at the regional working group level. The CBFA’s secretariat needs to develop a plan of action to realize the full potential of the agreement but faces numerous issues in terms of implementation: (1) the CBFA’s exclusion of First Nations communities; (2) funding issues; (3) disagreement at the local regional levels and among some signatories; (4) slow pace of implementation and (5) limited concrete signs of success thus far.

Teaching Note: 8B13M121 (11 pages)
Industry: Agriculture, Forestry, Fishing and Hunting
Issues: sustainability; public-private partnership; negotiations; implementation; First Nations; Aboriginal; Canada
Difficulty: 4 - Undergraduate/MBA