Babylon Vertical Farms: Toward Sustainable Green Organization

Abstract

Subject Area

Social Entrepreneurship, Organizational Behavior.

Study Level

This case is suitable to be used in advanced undergraduate and MBA/MSc level.

Case Overview

This case teaches about green organization, its opportunity, challenges, and attitude toward sustainable agriculture. The Babylon Vertical Farms (BVF) is an agricultural and technological company that grew high-quality hydroponic vegetables and herbs with minimum use of sunlight, soil, and pesticides. BVF used recycled water through reverse osmosis process with the target to decrease cultivated time to less than six hours, when compared to the typical 18 hours, apart from minimizing water usage up to 90%. Knowing its potential, Stuart Thomas, the founder and his team planned to increase the farm production to 2,000–3,000 kg a month from 1,000 kg a month. The farm required RM150,000 to acquire resources and to extend its farm infrastructure. Stuart and his team had to make feasible and practical decision in gaining their funds to execute the business to be one that is sustainable and green. As a social entrepreneur, Stuart also wanted to address poverty-related hunger. A group of investors was ready to invest and asked for 30% equity. Stuart was tempted to take the offer. If he rejected the offer, the farm could lose the opportunity to scale-up its operation. At the same time, if he accepted the offer, he might lose control over the business one day.

Expected Learning Outcomes

The learning outcomes are as follows:

• to expose students to the various forms of urban farming that a social entrepreneur can venture into;

• to expose students to the benefits of green business;

• to evaluate potential opportunities and threats of a green organization using SWOT analysis; and

• to recommend a possible strategy to build a sustainable agriculture farm that is economically viable, environmentally sound, and socially responsible.

Citation

Rizal, A.M., Punadi, R.P., Abdul Salam, Z.B.S.@., Md Husin, M.B., Kamarudin, S.B. and Sahimi, M. (2019), "Babylon Vertical Farms: Toward Sustainable Green Organization", Quoquab, F. and Mohammad, J. (Ed.) Green Behavior and Corporate Social Responsibility in Asia, Emerald Publishing Limited, Leeds, pp. 89-101. https://doi.org/10.1108/978-1-78756-683-520191011