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AWARD-WINNING CASE: Adjudged winner of the ISB Case Competition 2010 held in partnership with the Richard Ivey School of Business and the Association of Indian Management Schools and sponsored by the Chartered Institute of Management Accountants.
BASIX was a microfinance company with livelihood promotion as its key agenda. It had a strong presence in the poverty-ridden state of Jharkhand, India, where farmers were struggling to make ends meet. In 2005, PepsiCo India Holdings Pvt. Ltd (Pepsi) entered into an agreement with BASIX for promoting contract farming of potatoes in Jharkhand. As per the agreement, Pepsi was to supply seeds and get an assured supply of quality potatoes. BASIX was to provide microfinance to the farmers and render training and consultancy for package of practices (POP). Farmers were to get assured buyback of the produce and also an opportunity to learn modern farming practices. The collaboration was successful in the first year and the project witnessed very high growth in the second year. The second-year results, however, were not as encouraging. The case is set at this juncture, where the project manager has to present his view on how to move ahead with the agreement.
This case allows students to:
- Better manage partnerships among business organizations, not-for-profit organizations, and marginalized communities.
- Better evaluate the contributions of marginalized communities and then negotiate on their behalf.
- Evaluate contractual documents and appreciate the implications of a negotiated document.
- Appreciate the challenges of scaling up.
Agriculture, Forestry, Fishing and Hunting,
Finance and Insurance
India, Large, 2007
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