Kash Rangan is the Malcolm P. McNair Professor of Marketing at the Harvard Business School. Formerly the chairman of the Marketing Department (1998-2002), he is now the co-chairman of the school's Social Enterprise Initiative. He has taught in a wide variety of MBA courses, including the core First-Year Marketing course (was its head across multiple sections from 1993-1996), and the second-year electives, Business Marketing and Channels-to-Market.
He has also taught marketing in the for senior managers. Currently Rangan teaches the elective course, Business at the Base of the Pyramid. In addition, he teaches in a number of focused:,. Professor Rangan's business marketing and channels research has appeared in management journals such as Journal of Marketing, Harvard Business Review, California Management Review, Sloan Management Review, Journal of Retailing, Management Science, Marketing Science and Organization Science. Rangan has authored or co-authored several books, which include: 1) Going to Market, which deals with distribution systems for industrial products, and 2) Business Marketing Strategy, which presents approaches for managing industrial products and markets over their life cycle. Rangan's latest book, Transforming Your Go-to-Market Strategy, presents a unique framework on how to evolve a firm's go-to-market strategy with the changing market needs.
In the book Rangan develops the concept of Channel Stewardship and three disciplines of how to implement it in practice. In addition to his interest in business marketing, Professor Rangan is actively involved in studying the role of marketing in nonprofit organizations, and specifically how it influences the adoption of social products and ideas. He has written a number of case studies and articles on the topic. He served as one of the founding co-chairs of the Social Enterprise Initiative at Harvard, whose faculty study and teach the challenges of nonprofit management. He founded the executive program, Strategic Perspectives on Nonprofit Management, which he continues to teach in.
His current research is focused on understanding business models that address the needs and wants of 4.2 billion people living on less than $5/day. The aim of the research is to develop models of success that bring value to the base-of-the pyramid and yet are profitable and sustainable in the long run. Rangan has a Bachelor of Technology from I.I.T. (Madras), 1971; an MBA from I.I.M. (Ahmedabad), 1973; and a Ph.D.
In marketing from Northwestern University (Evanston, Illinois), 1983. From 1973 to 1979, Rangan held several sales and marketing positions for a large multinational company in India.
Rangan has engaged in a variety of executive education programs, consultancies, and advisory activities for numerous commercial and nonprofit enterprises. Rangan has been on the faculty of the Harvard Business School since 1983. Pay-for-success contracts also known as social impact bonds, have been widely touted as a clever way to fill the funding gap plaguing social programs by attracting a tranche of the trillions of dollars in private return-seeking capital. This article takes an in-depth look at the evidence from the first seven contracts in the U.S., to conclude that although that scenario is not likely, the pay-for-success model will have a positive impact, just not in the way that many proponents think. The article discusses corporate social responsibility (CSR) programs. In the authors' view many of these programs consist of disparate, uncoordinated initiatives that fail to maximize their impact. They recommend a more coherent strategy that divides CSR efforts into three categories including those related to philanthropy, operational effectiveness, and shaping the firm's business model to better create shared value.
Consideration is also given to developing metrics for assessing CSR performance. Organizations with social missions, such as nonprofits and social enterprises, are under growing pressure to demonstrate their impacts on pressing societal problems such as global poverty. This article draws on several cases to build a performance assessment framework premised on an organization's operational mission, scale, and scope.
Not all organizations should measure their long-term impact, defined as lasting changes in the lives of people and their societies. Rather, some organizations would be better off measuring shorter-term outputs or individual outcomes. Funders such as foundations and impact investors are better positioned to measure systemic impacts. The bottom of the economic pyramid is a risky place for business, but decent profits can be made there if companies link their financial success with their constituencies' well-being.
To do that effectively, you must understand the nuances of people's daily lives, say Rangan and Chu of Harvard Business School and Petkoski of the World Bank. Start by dividing the base of the pyramid into three segments according to people's earnings and related personal needs: 1) Low income: 1.4 billion people, $3 to $5 a day; 2) Subsistence: 1.6 billion people, $1 to $3 a day; and 3) Extreme poverty: 1 billion people, less than $1 a day. Next, consider the roles of various groups in the value-creation relationship: consumers, coproducers, and clients. Specific strategies work best with people in certain roles and at particular income levels. Success requires appreciating the diversity at the base of the pyramid and the importance of scale in undertaking ventures there. Witness Manila Water's success in the Philippines and Hindustan Unilever's in South Asia.
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Failure to appreciate those elements can foil base-of-the-pyramid ventures, as Microsoft and Procter & Gamble each discovered. The authors argue for a strategic and pragmatic, rather than ideological, approach to Corporate Social Responsibility (CSR) that contrasts sharply with the prevailing Shared Value framework offered by Porter and Kramer (HBR; Jan.-Feb.
We assert that, despite criticisms of and debate about the value of CSR initiatives to society and to corporate profitability, every company needs a CSR strategy that reflects both its desire to address social, humanitarian and environmental needs, and its core competencies and institutional capacity. Using a 'three theatre' CSR framework, the paper demonstrates why the question for corporations is not whether to engage in CSR, but why they need to develop CSR strategies that both enhance CSR practice within each theatre and coordinate the independent efforts from across the three theatres. Our perspective is a marked departure from the Shared Value framework, in that we embrace the inherent value of corporate philanthropy (theatre 1) on one end, as well as transformational business models with potentially limited short-term financial returns at the other (theatre 3). Furthermore, the paper seeks a moratorium on the fruitless debate about CSR definition and societal value, instead providing pragmatic guidance for corporations to significantly improve the social and environmental impact of their CSR initiatives through a holistic and strategic process of continuous CSR auditing, editing and development. Leaders of organizations in the social sector are under growing pressure to demonstrate their impacts on pressing societal problems such as global poverty.
We review the debates around performance and impact, drawing on three literatures: strategic philanthropy, nonprofit management, and international development. We then develop a contingency framework for measuring results, suggesting that some organizations should measure long-term impacts, while others should focus on shorter-term outputs and outcomes. In closing, we discuss the implications of our analysis for future research on performance management. The Future of Social Enterprise considers the confluence of forces that is shaping the field of social enterprise, changing the way that funders, practitioners, scholars, and organizations measure performance. We trace a growing pool of potential funding sources to solve social problems, much of it stemming from an intergenerational transfer of wealth and new wealth from financial and high-tech entrepreneurs. We examine how these organizations can best access the untapped resources by demonstrating mission performance and then propose three potential scenarios for how this sector might evolve: Consolidation: In this scenario, funding will keep growing in a gradual, linear fashion and organizations will compete for resources by demonstrating performance. The sector will consolidate, with some efficient organizations gaining scale, some merging and then growing, and some failing to achieve either scale or efficiency and eventually shutting down.
Entrepreneurial: In a more optimistic future, existing and new enterprises will apply strategies to achieve and demonstrate performance, improving efficiency and effectiveness and attracting new funding sources. More organizations will enter a reformed, competitive field of social change with new entrepreneurial models, established traditional organizations, and innovative funding strategies fueling widespread success. Expressive: Rather than focusing exclusively on performance, funders and organizations may view their investment as an expressive civic activity. As much value is placed on participating in a cause as on employing concrete measures of impact or efficiency. In this scenario, funding will flow as social entrepreneurs experiment with new models based on a range of individual priorities and relationships. The case discusses the measurement of social and environmental impact at Ambuja Cements, one of India’s leading cement companies.
Ambuja is a leader in CSR activities and is attempting to quantify its impact, both positive and negative, using the “True Value” framework developed by the global accounting firm KPMG. True Value is an innovation in this area and tries to measure the financial cost and benefits of social and environmental impact and provide a standardized comparison across different kinds of social and environmental activities and their impact. The case allows students to discuss the challenges in measuring social and environmental impact and the pros and cons of quantifying the same in financial terms. The case elicits discussion surrounding the following questions: How do we develop a framework to measure the financial cost and benefits of social and environmental externalities?
What are the challenges of doing so? What do we need to do to improve our ability to measure social and environmental impact in financial terms? How will such measurement be useful? Who will it be useful to?
The case concludes with the CEO of Ambuja deciding whether or not to publicly release the “True Value” of the company. Using data from U.S.
Census and OECD, the note defines poverty as those populations who fall below 50% of that country’s median per capita income. It then provides a brief statistical tour of six key challenges facing such populations: Income and Jobs, Healthcare, Education, Affordable Housing, Financial Inclusion, and Incarceration.
The note then provides a brief overview of the social safety net programs in the U.S. That are meant to address the identified challenges. It then concludes with a brief statistical tour of the rest of the OECD countries with respect to similar deprivations. Using World Bank data, the note defines the Base of the Pyramid population as the 4.76 billion people living on less than $10/day. It briefly reviews the perspectives of key business articles that address this market, notably C.K Prahalad’s work on Bottom of the Pyramid, and Porter and Kramer’s article on Creating Shared Value.
The note then provides a somewhat more extensive (yet brief) review of the literature from Development Economics literature, before turning to the perspective offered by the HBS, MBA, course on Business at the Base of the Pyramid (BBOP). The note concludes with a brief statistical tour of the key needs that characterize this market segment, namely: Nutrition, Healthcare, Education, Sanitation, Clean Water & Energy, Financial Inclusion, and Affordable Housing. Unlike financial success, there is no clear consensus regarding how best to define and measure social impact. This HBS note written for students of the HBS, MBA, class – Business at the Base of the Pyramid, offers readers pragmatic perspectives on how the framework of the Logic Model (Theory-of-Change) may be used by businesses, nonprofits, and impact investors to assess the social value they create for their customers/beneficiaries and society. The note concludes with a brief tour of a few impact evaluation methodologies and their applications in areas such as hunger, healthcare, education, and microfinance. The case briefly describes the 112-year history of the organization and focuses particularly on the changes wrought by its new leader David Yarnold who was brought in by the board in 2010. Under Yarnold's leadership the organization went through two strategic plans (2012–2016 and 2016–2020) and brought about many changes.
At the start of 2017, Yarnold declared his goal of making Audubon the most effective conservation network in America. What actions should Audubon take to get to that goal?
Founders Vineet and Anupama Nayar had rapidly scaled their foundation to reach 3 million primary school children (grades 1 to 3) in two states with math and English programs. Their goal was to reach 10 million children by 2025 and completely spend down the $100 million foundation corpus. A new opportunity presented itself in a third state with a potential to add another 4 million children. In grappling with this new opportunity they had to make certain strategic decisions on whether to go deeper (expand to grades 4 and 5) or go broader to more grade 1 to 3 children. They were wrestling with the question of which option would lead to more impact and leave their social innovation in a sustainable position after their exit. Akshaya Patra, an Indian NGO, had set an ambitious goal of serving 5 million free meals daily to India's schoolchildren. Founded in 2000, Akshaya Patra had thus far opened 25 high-capacity kitchens in 10 different States to provide a midday meal to nearly 1.65 million school children every day.
With 110 million children in 1 million schools eligible for a mandatory midday meal, there was room to grow. Shridhar Venkat, its CEO, had to devise a plan to get it there. In 2016, BASF's chief executive officer and chief technology officer reflected on the co-creation innovation program started almost 18 months ago as part of BASF's 150th anniversary celebration.
Five hundred project ideas had been created, of which 100 had already moved to the company's conventional R&D funnel. Thirty-four had been short-listed for further consideration. At least 10, if not more of these projects, would receive 'landmark' funding running at an average of 1 million Euro each. Beyond selecting the right projects, how could the CEO and CTO ensure that a complex organization such as BASF would encourage such fresh ideas to be developed and nurtured in the future? Was this experiment something that BASF should do again in the future?
A nonprofit in the healthcare arena explores strategies to achieve system-level impact. Founded in 1996 with a volunteer-staffed help desk at Boston Medical Center connecting low-income patients with basic resources like heating assistance, job training, and childcare programs, by 2013 the nonprofit had grown to 6 cities and 1,000 volunteers serving over 11,000 patients annually. At the end of a successful “proof plan” period, Health Leads Co-Founder and CEO Rebecca Onie and her team faced the question of how to make meeting patients’ social needs a standard part of health care in the U.S.: replicate Health Leads’ proven model or instigate a social care movement? The B case documents the development of a strategy to achieve system-level impact in a rapidly changing healthcare landscape for a nonprofit focused on addressing patients' basic social needs through healthcare institutions.
Founded in 1996 with a volunteer-staffed help desk at Boston Medical Center connecting low-income patients with basic resources like heating assistance, job training, and childcare programs, by 2013 the nonprofit had grown to 6 cities and 1,000 volunteers serving over 11,000 patients annually. At the end of a successful “proof plan” period, Health Leads Co-Founder and CEO Rebecca Onie and her team faced the question of how to make meeting patients’ social needs a standard part of health care in the U.S.: replicate Health Leads’ proven model or instigate a social care movement? Explores strategies to achieve system-level impact for a nonprofit focused on addressing patients' basic social needs through healthcare institutions. Founded in 1996 with a volunteer-staffed help desk at Boston Medical Center connecting low-income patients with basic resources like heating assistance, job training, and childcare programs, by 2013 the nonprofit had grown to 6 cities and 1,000 volunteers serving over 11,000 patients annually.
At the end of a successful “proof plan” period, Health Leads Co-Founder and CEO Rebecca Onie and her team faced the question of how to make meeting patients’ social needs a standard part of health care in the U.S.: replicate Health Leads’ proven model or instigate a social care movement? A case on scaling social impact for nonprofits. Founded in 1995, KaBOOM! Quickly became a nationally recognized nonprofit in building playgrounds with strong corporate partnerships and volunteer-organizing capabilities. Over the years, KaBOOM! Developed new programs, including a new web platform to enable individuals and communities to do build-it-yourself playgrounds, which increased KaBOOM!’s total annual number of playgrounds built by as much as a factor of 10. The case explores how KaBOOM!
Evaluated its goals and determined a strategy to achieve the scale required to meet its social mission and vision of every child having a place to play. A case on scaling social impact for nonprofits. Founded in 1995, KaBOOM! Quickly became a nationally recognized nonprofit in building playgrounds with strong corporate partnerships and volunteer-organizing capabilities. Over the years, KaBOOM! Developed new programs, including a new web platform to enable individuals and communities to do build-it-yourself playgrounds which increased KaBOOM!'
S total annual number of playgrounds built by as much as a factor of 10. The case explores how KaBOOM! Evaluated its goals and determined a strategy to achieve the scale required to meet its social mission and vision of every child having a place to play. With $1.8 billion in 2015 revenues, Boys & Girls Club of America had evolved over its 155 year old history to occupy the lead position in the Youth Development space in the U.S. Its new CEO Jim Clark had initiated yet another change process in 2015 to ensure a significant jump in the quality of interactions that its nearly 2 million club members experience, and take it to revenues of $2.8 billion in 2025. All this was part of the Great Futures Plan developed by its system of 1,144 independent clubs under the umbrella of Boys & Girls Clubs of America, the national organization.
The case explores the challenges of how the new plan should be implemented. Gilead had come up with an innovative drug for Hepatitis C, which affected 180 million people worldwide. The drug was priced at $1,000 a pill for the US market. Gilead had to decide how to price and market the pill in developing countries that bore the brunt of the disease. The company had earned accolades for its work in HIV/AIDS, where its innovative medicines now accounted for 60% of all patients on Anti-Retroviral (ARV) medicines.
Much of this was accomplished through generic licensing, which brought a $10,000/year treatment regimen down to $100! Should the company replicate that strategy for Hepatitis C?
If so, how would its US Healthcare customers, who were paying $84,000 per patient, react? On the other hand, Gilead had to balance the interests of its shareholders, who paid $11 billion for an acquisition that led to the new Hepatitis C drug.
By 2014, IKEA Group was the largest home furnishing company, with EUR28.5 billion of sales, and planned to reach EUR50 billion by 2020, mainly from emerging markets. At the same time, IKEA Group had adopted in 2012 a new sustainability strategy that focused the company's efforts on its entire value chain from its raw materials sourcing to the lifestyle of its end consumers. The plan especially centered on wood, which represented 60% of IKEA Group's total procurement in volume and constituted a key lever for the company to increase its positive impact on sustainability. IKEA Group Management therefore had to decide how to manage its portfolio of wood sustainability initiatives, especially in the context of the company's aggressive growth plan. In 2012, Sanofi Pasteur was racing to develop a vaccine against dengue, a mosquito-borne disease, and was evaluating this product in a Phase IIb trial conducted with school children in Thailand.
But while the candidate vaccine met the high safety expectations and a good balanced immune answer, it had a proof of efficacy of only 30%, far below the 70% mark the company had targeted. Guillaume Leroy, vice president of the Dengue Company at Sanofi Pasteur, reflected on the Phase IIb trial's surprising outcome and the way forward. He had to decide whether to go ahead with the vaccine trials and production, and if so, needed to develop a strategic plan on how to price and deliver the vaccine for a rapid roll-out. In 2003, PNC Financial focused its corporate citizenship and philanthropic resources on a ten-year, $100 million investment in early childhood education called PNC Grow Up Great. The case tracks the origination of Grow Up Great, how it was developed and implemented within PNC, and some of the key challenges and successes of the program during its first 5 years of operation. Key elements of the case are the process by which PNC decided to focus on Grow Up Great as its signature program, and how the program was designed to provide extensive volunteering opportunities for employees. The case also explores how PNC leadership has engaged in extensive advocacy on the issue of early childhood education.
The branding and marketing issues associated with Grow Up Great and how it fits in PNC's organizational structure are also highlighted in the case. The case asks students to formulate a strategy to respond to various competitive threats to its Pureit Water purifier, launched in 2008, targeted at millions of low-income Indian consumers who did not have access to safe drinking water. The case describes in detail the product development and launch process that required HUL, the $3.5 billion Indian subsidiary, to innovate on many different fronts. It details competitive actions since the launch to set the stage for what the company should do next. Jeff Immelt, the CEO of GE, introduced a new innovation strategy named 'healthymagination' in 2009. With cost, quality, and access as its three pillars, healthymagination ensures a strong focus for new product introduction efforts all around GE.
But will this focus enable GE to achieve and maintain market leadership across a healthcare market that is being buffeted by strong currents, including cost pressures, changes in chronic disease patterns, and rationalization of buyer behavior? Moreover, healthcare spending is also increasing in emerging economies, which could provide a strong growth engine for the future. Tom Gentile, the CEO of GE Healthcare Systems (GEHS), a key player in the Medical Imaging market, wonders how the innovation strategy might respond to these changes. GE has historically been a technology leader, selling the most advanced equipment to a variety of medical establishments. Will a complete shift to healthymagination allow GE to demonstrate strong organic growth through innovation, as Immelt had charged executives at GE? Describes the mission, vision, and strategy of a team of entrepreneurs headed by a charismatic heart surgeon who founded a heart hospital in Bangalore, India. The purpose of the hospital was to offer health care for the masses.
This tertiary care hospital performed over 4,000 surgeries a year (approximately half on pediatric patients), which is more than that performed by The Cleveland Clinic and the Mayo Clinic (ranked #1 and #2 in the United States) combined. The interesting aspect of its business formula was its ability to offer such complex surgeries as CABG (popularly known as bypass surgery) for about $2,000, which was substantially less than other similarly equipped hospitals in India. Its founder has already entered into other complementary activities, such as a statewide insurance scheme for rural farmers-Yeshaswini. The founder has ambitious plans for a comprehensive 'Walmartization' of health care in India.
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Acumen Fund is a global venture capital firm with a dual purpose: it looks for a return on its investments, and it also seeks entrepreneurial solutions to global poverty. This case examines Acumen's new projects in Kenya. The organization's investment committee and its chief investment officer, Brian Trelstad, must decide whether or not to fund two for-profit ventures. The first provides clean and accessible shower and toilet facilities in urban areas, serving a critical need for low-income populations—its financial sustainability, however, is less clear.
The second investment is a network of successful private health clinics that primarily serve middle-income populations but which have the potential to reach low-income markets. On what basis should Acumen decide whether or not to invest?
What performance metrics should it use? As the investment committee nears a decision, political and social unrest breaks out in Kenya following a highly contested presidential election. Acumen Fund must now also consider the political risks of investing. As Acumen Fund, a global venture philanthropy firm, moves forward with an investment portfolio exceeding $22 million, it runs into two critical measurement problems. First, how should it track the performance of each investment when its interest is not just the bottom line, but also social impact? What should its performance tracking system look like to enable ease of comparison and to identify problems before they become too significant to fix?
The second challenge involves attracting investors. Acumen wants to build the field of 'social investing' by creating a new asset class for investors who care about social impact.
Doing so will require working with competitors in the field in order to establish benchmarks and standards of measurement. How can Acumen build industry-wide benchmarks when peer organizations are concerned about confidentiality of data? Without such comparisons, how will Acumen attract investors to the field? Founded as a for-profit microfinance company, Equitas had acquired nearly a million clients in the short two years since it was founded. The founder, Vasu, and his management team wished to accelerate the already impressive spurt to three million clients in the next two years. The case describes the company's business model, which attempts to integrate microfinance with social development, and provides students with the opportunity to discuss the scaling options and challenges facing the founder.
Describes the conception, development, and implementation of Goldman Sachs' five-year, $100 million philanthropic initiative to provide practical business and management education to 10,000 women around the globe. The initiative recently celebrated its first anniversary, and over 1,200 women were either enrolled in, or graduated from, sponsored certificate programs. The case addressees some key strategic decisions facing the firm as they rollout the program over the coming years. These include how to organize the network of schools that deliver the educational services, how to determine the best outside partners to provide additional services for the women entrepreneurs, how to best assess the impact of the program, and finally the extent to which the initiative provides contributions to the long-term strategy of the firm. In 2006, the country manager for Alpen Bank in Romania, Gregory Carle, considers whether to recommend the launch of a credit card business.
The firm rejected the idea several years earlier because of poor economic conditions in Romania. However, Romania is experiencing a period of economic growth after joining the European Union and Carle believes it is time to reconsider the opportunity despite continued skepticism within the company.
Carle faces several important decisions before he can present his plan to the head of International Consumer Businesses. He must decide whether to launch a credit card business in Romania, how to position the credit card, and how to acquire new customers most effectively.
This case is appropriate for use in the product policy module of a general marketing course, in a new product course, or in a services management course. Students are required to complete a quantitative assignment as part of case analysis. Government agency, the Millennium Challenge Corporation (MCC), provides aid to developing countries, focusing on poverty reduction through economic growth. It measures results through an economic rate of return based on increases in farmer incomes anticipated over twenty years.
As MCC and Ghana finalize a $547 million grant for agriculture and transportation infrastructure, they come up against an accountability and measurement problem: how to address an urgent request from Ghana to fund community services—such as schools and drinking water—for which the results will be more difficult to measure. Topics covered include: consumer marketing, market research, new product introduction, and quantitative analysis.
TruEarth Healthy Foods, a maker of gourmet pastas, sauces, and meals, wants to build on its successful introduction of fresh whole grain pasta by introducing a similar product concept for pizza. In an increasingly competitive market, TruEarth is focused on beating its competition and wants to act quickly and decisively. The company conducts extensive market research, first using focus groups to test the concept and then following up with take-home trials. Acting as brand managers, students must complete a quantitative analysis of the available data to project the sales volume for pizza and then decide whether to bring the new product to market. Describes the dilemma facing Advanced Energy (AE), a $6 million nonprofit engaged in energy conservation in North Carolina.
Most of the money for its programs comes from a Public Benefits Fund (PBF) enacted by the state legislature. With renewed effort by activists in 2006 to expand AE's role, there was a possibility of the PBF swelling to $50 to $80 million. Naturally, this put AE at conflict with electric utilities wanting to engage in efficiency programs as part of their overall business offering.
In April 2007, Bill Gates announced Microsoft Unlimited Potential. Its mission was to enable social and economic opportunity for the next five billion people. To deliver against this mission, Microsoft sought to focus its citizenship efforts and its product development efforts in developing markets. This case traces the development of Unlimited Potential on the citizenship side and the business operations side, raising the questions of whether Unlimited Potential is a robust strategy for the company and if so, how the company should organize and execute to achieve its mission.
New York City is a pioneer in the emerging field of municipal marketing. The city's first chief marketing officer must develop a marketing organization with a self-funded business model that creates value for the city by leveraging the city's assets, including physical property and media opportunities.
Although an independent corporation, the marketing organization must work with city government agencies to create value. Traces the appointment of the chief marketing officer and the objectives of marketing New York City. Summarizes the city's corporate partnerships (with Snapple and The History Channel, among others), media, and licensing activities to date. Challenges students to evaluate the marketing model and recommend strategies going forward, defining what activities create the most value for the city. Additionally, exposes students to the challenges of an entrepreneurial organization operating within the confines of a government structure. Includes color exhibits. Located in the highlands of Peru, the Tintaya copper mine has long been a source of intense conflict between local community members and mine operators.
The mine, which was owned and managed first by the Peruvian state and later by BHP Billiton, stands on 2,300 hectares of land expropriated from local subsistence farmers. In 2000, to contest this loss of land, mining-related environmental degradation, and allegations of human rights abuses, a coalition of five indigenous communities forged an alliance with a group of domestic and international NGOs to build their case against the BHP Billiton and pursue it directly with the company's Australian headquarters. The outcome of these efforts was the inception of a unique corporate-community negotiation process known as the Tintaya Dialogue Table. In December 2004, after three years of negotiation, BHP Billiton and the five communities signed an agreement compensating families for lost land and livelihoods and establishing a local environmental monitoring team and community development fund. However, just as the company resolves one conflict, another group of local stakeholders emerges with new demands-ones that the company may not be able to meet. The conflict with this new group culminates in a violent takeover of the mine in May 2005, whereupon BHP Billiton staff are forced to shut down operations, abandon the mine site, and devise a new strategy for winning back local support.
Engaging local stakeholders and building strong relations has become a strategic imperative for multinational firms in the often politically charged mining, oil, and gas sectors. For BHP Billiton, the world's second largest mining company, its Tintaya copper mine in Peru has long been a source of intense conflict. The mine-which was owned and managed first by the Peruvian state, and later by BHP Billiton-stands on land expropriated from local subsistence farmers. In 2000, to contest this loss of land, mining-related environmental degradation, and allegations of human rights abuses, a coalition of five indigenous communities forged an alliance with a group of domestic and international NGOs (nongovernmental organizations) to build their case against BHP Billiton and pursue it directly with the company's Australian headquarters.
The outcome of these efforts was the inception of a unique corporate-community negotiation process known as the Tintaya Dialogue Table. In December 2004, after three years of negotiation, BHP Billiton and the five communities signed an agreement compensating families for lost land and livelihoods, and establishing a local environmental monitoring team and community development fund. However, just as the company resolves one conflict, another group of local stakeholders emerges with new demands-demands that this time the company may not be able to meet.
The conflict with this new group culminates in a violent takeover of the mine in May 2005, whereupon BHP Billiton staff are forced to shut down operations, abandon the mine site, and devise a new strategy for winning back local support. Senior management at PSI, arguably the world's largest and most successful social marketer with impressive achievements in the field of family planning, HIV/AIDS, and malaria prevention must determine what to do about their slow-to-take-off clean water initiative. PSI's point-of-use products offered effective protection against water-borne diseases, especially diarrhea, yet the organization found it hard to attract donor funds to sustain the initiative.
Its managers must determine how to alter their strategy going forward. Despite revenues in excess of $93 million in 1998, world-renowned Dana-Farber Cancer Institute constantly faces an operating shortfall and looks to its highly successful development office to help cover the deficit.
The development office raises money annually (with a $42 million goal for 1999) through its two major fund-raising arms: the Development Fund and the Jimmy Fund. In addition, it conducts a major capital campaign about every five years. A new chief development officer, Susan Paresky, needs to establish the development strategy going forward.
The case reviews the major fund-raising programs in the development office and presents additional growth options. Students examine the existing programs, assess the value of the new options, and devise a development strategy consistent with the mission and philosophy of the institute.
In 2003, the $654 million American Heart Association (AHA) approached Cone, Inc. (a brand and communications agency) to develop a corporate sponsorship strategy that would raise $75 million over three years.
Within 12 months, the AHA launched the highly successful Go Red For Women campaign to help women understand their risk for heart disease. But Go Red became more than a fundraising vehicle.
It energized the AHA and its 22 million volunteers, and potentially sparked a long-term movement focused on women and their prevention of heart disease. Traces the development of the relationship between Cone and the AHA and the development of the Go Red For Women campaign.
Challenges students to assess the success of Go Red and its impact on the AHA and its goals. Concludes by summarizing three of the AHA's other health initiatives and questions the appropriate role for the AHA and cause marketing. Population Services International (PSI) was a not-for-profit agency founded to disseminate family planning information and to market birth control products, primarily in less developed countries seeking to curb their population explosions. In 1976, PSI concluded an agreement with the government of Bangladesh to conduct a social marketing program, with the objective of using modern marketing techniques to sell subsidized contraceptives through commercial outlets. Seven years later, three PSI managers were meeting at PSI's Washington, D.C.
Headquarters to discuss 1984-86 marketing strategy for two products: Raja condoms and Maya birth control pills. Of particular concern was the fact that the marketing approach that had proven extremely successful for Raja was yielding poor sales results for Maya. The PSI managers needed to devise an action plan for improving Maya Sales. With liberalization of India's economy and the opening up of markets to foreign multinationals such as Procter & Gamble, the Indian subsidiary of Unilever-Hindustan Lever Ltd. (HLL)-was under pressure to grow revenues and profits. HLL had a long and stellar record of market leadership in India (with market shares of nearly 60%) in categories such as soap, detergent, and shampoos.
Documents HLL's innovative approach to penetrate rural markets (with populations less than 1,000), where two-thirds of India's population lives, with a scheme named 'Shakti' (meaning empowerment). The central question is: How should the company scale Shakti and make it profitable? One of Boston's main cultural attractions, the Museum of Fine Arts (MFA), has experienced a steady decline of its core audience over the last decade. The museum's executive director attempted to bridge the shortfall by staging new, innovative, special exhibitions, which have not been without their share of criticism. The museum's top management had to resolve the audience issue against the background of a major $500 million capital campaign to fund a new wing of the museum in 2010.
Chronicles the development of Freeport's nearly 30 years of mining operations in Indonesia. Building on a mining concession awarded by the country's government, headed by General Suharto, in 1973, Freeport steadily built its mining output to nearly 200,000 cubic feet/day of ore, rich in copper.
In spite of the company's attempts to address environmental issues and the stakes of indigenous people, critics were unimpressed by the company's efforts to improve. With the toppling of the Suharto regime in 1998, the company has to survive under a new government. H-E-B is a $9 billion grocery chain located in Southwest Texas. This case focuses on H-E-B's private label strategy, a product category that accounts for 19% of H-E-B's sales and one that earns gross margins 50% higher than national brands. A leader in its markets, H-E-B is faced with increasing competition, especially from Wal-Mart, which has aggressively entered the Texas markets with a series of 'supercenters.' Although the case specifically focuses on H-E-B's Own Brands (private label), it more broadly raises important strategic questions regarding H-E-B's ability to compete effectively in this new market environment. Includes color exhibits.
Founded in 1984, Dell Corp. Has achieved phenomenal growth, and by 2000 had topped $25 billion in sales and over $2 billion in net income.
In the 4th quarter of 2000, however, the PC industry's average 30-year growth rate crashed to a negative 10%. Dell must make difficult decisions on how to sustain its profitability in light of its broad product portfolio-PCs, workstations, and servers on storage products for a broad cross section of customers in the United States and worldwide. Should it stay the course or fundamentally change strategy? Becton Dickinson, a phenomenally successful company with an 80% market share in the blood collection needles and syringes market faces a change in the customer buying environment (cost containment pressures at hospitals). This forces a reevaluation of the company's highly successful product policy and channel strategy. One of the company's largest customers threatens to leave them for refusing their 'low-price' request. It is obvious to students that giving in to this customer's threat would compromise the company's 'value-added' thrust, yet the potential business at stake makes it difficult to be inflexible.
SOS-Kinderdorf, founded in 1949, has grown rapidly into one of the largest orphanages in the world with children's villages, kindergartens, schools, youth facilities, and other complementary programs in 130 countries. This case describes the evolution of the organization and poses three specific management challenges in three of its member countries: the United States, India, and Norway. An analysis of these issues serves as the backdrop for a strategy audit of the organization's mission and method of delivering it. Sunbeam Television, owner of a television station in Miami (a Fox affiliate), buys Channel 7 (a CBS affiliate) in Boston.
They bring to the Boston station the concepts and ideas of their Miami news product-that is, a crisp, content-based design rather than one centered around personalities. Industry changes force them out of the CBS affiliation in Boston. Having considered both FOX and NBC, Sunbeam finally settles on NBC. The implications and motivations of their decision are to be discussed.