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With Method standing at number seven on Inc. magazine's list of the 500 fastest-growing companies in 2006, cofounder Adam Lowry is searching for a biodegradable cleaning cloth to expand Method's line of “green” household products. Sustainable design principles have been a guiding force in Method's strategy, and being biofriendly is critical. So is sourcing in the United States. But only China can manufacture the corn-based cloth Lowry has in mind, and there is no way to certify that the product is free of genetically modified organisms. Lowry has to balance his firm's fundamental commitment to environmental sustainability against the fact that some retailers refuse to carry products containing GMOs.

This case deals with the need of a European company to import organic soybean from India. The company's India Operations Manager wants to know the feasibility of such a venture. The case describes the procurement of organic soybean from a city in central India, understanding standards of organic production, and finally the costs and procedures involved in exporting the organic soybean to Europe.

After having discussed the case, the reader will be able to analyse the dangers associated with product changes; contrast various strategic marketing issues that can be considered when implementing changes, including marketing communication and the use of social media; motivate an approach to customer complaints and comments on the launch of a new product; and comment on the ethical issues associated with new product launches.

Marketers are focused on satisfying customers’ needs, and no organisation would deliberately offend or alienate customers. Occasionally, organisations make decisions that anger customers as they do not understand the reasoning behind them. Sometimes, the decision is the correct one and once the company has clarified the reason behind it, the customer adjusts to the new situation. At other times, the consumer refuses to accept the decision and abandons the organisation or the specific product. This situation indicates some important negative outcomes for companies when making changes to product formulas. Social media allows customers to complain and comment, adding visibility to the situation. All these factors contribute to presenting management with a challenge in dealing with this situation, considering the needs of the company and balancing them with the customer reactions.

Third-year strategic marketing students MBA students (marketing courses)

Teaching notes (and necessary annexures) permissions.

CSS 8: Marketing.

This case study would help students in understanding the dynamics of logistics and logistics vendor roles and contributions to overall business operations. The case study covers real-time information for applying the theoretical knowledge students gain related to the selection of logistics vendor. It would help students to understand and evaluate the dynamics of a new start-up related to cost, profits and dependency; understand and analyze the importance of third-party logistics (3PL) service providers in the supply chain; become aware of the key performance indicators (KPIs) important in the selection of logistics vendor; and develop and create measures for selecting logistics vendors on the basis of KPIs.

This case study was about an innovative start-up operating in the field of organic edible oils. The company catered to end consumers with its indigenous technology and processes. The innovative and healthy products were appreciated by the consumers, as was reflected in the surging demand figures. With the increasing popularity of organic products, the orders were surging. At the same time, issues such as damaged product delivery, increased cost per delivery of small packages and failure to deliver because of unserved pin codes by their logistics partners were being faced by the company. The case discusses the dilemma faced by the protagonist regarding the selection of the right 3PL partner. The case study is suitable for teaching courses in operations and logistics, supply chain management and entrepreneurship-related courses.

This case study is appropriate for postgraduate courses in entrepreneurship, operations management, logistics and supply chain management and general management.

Teaching notes are available for educators only.

CSS9: Operations and logistics.

In 2014, PZ Wilmar announced a new oil palm business worth $650 million in Cross River State, which would aggressively expand Nigeria’s palm oil production. In July 2015, a year after the plan was announced, a report jointly released by Friends of the Earth US and Environmental Rights Action Nigeria alleged that Wilmar was not complying with Nigerian laws, and accused them of human rights violations, environmental destruction, fraud, and land grabbing. The multifaceted nature of the “Cross River State crisis” permits “close-ups” from different vantage points to analyze the economic, environmental, social, and governance implications of palm oil expansion from a corporate sustainability perspective.

The case was researched utilizing secondary data, all materials are readily available to the public. There is no disguise of any actual person or entity and no relationship between the authors and the organizations or individuals mentioned in the case.

The case is best used at graduate level. It is very well suited for a MBA-level sustainability, business and society, or corporate social responsibility, or business ethics courses.

The case is grounded on the stakeholder theory, yet offering a fresh perspective, leveraging on the uniqueness of the Nigerian context. The authors argue that, while the assessment of the stakeholder salience of environmental groups operating in Nigeria might be different vis-à-vis other countries with sounder institutional environments, the normative question on whether the company should address these claims persists. The authors also draw from the social movements literature and bring forth the idea that the characteristics of the Nigerian context may jeopardize the prospects of success of adversarial tactics such as the issuing of lawsuits and extensive media exposure, which have been deemed effective elsewhere.

1. Analyze the factors influencing the creation of a social enterprise, while appreciating the theoretical perspectives on social entrepreneurship and social innovations. 2. Analyze the impact of social enterprises on sustainable development. 3. Recognize the need for different types of strategies in the varied situation. 4. Analyze the business model.

Shashi Kumar, the CEO of Akshayakalpa Farms & Foods Pvt Ltd (Akshayakalpa), is determined to take the business to the next growth level. He has integrated technology to measure and monitor the quality of milk and to reach out to tech-savvy customers. Owing to the preservative-free and short life of milk, he believes that redesigning the marketing and distribution strategies is the only way to ensure the massive expansion and growth that will enable Akshayakalpa to reach out to customers directly and quickly. Another issue he was facing was a lag in receivables. Their receivables from vendors were delayed and held up because of issues related to product spoilage and returns. This has posed a liquidity challenge to Akshayakalpa. Amidst all these challenges, he wants to develop the best strategy to take the business forward to the next level.

This case can be used in undergraduate or postgraduate courses in Management, Social Entrepreneurship and Business Sustainability with special relevance to social enterprise creation, enterprise growth strategies, sustainable development, sustainable business models, etc.

Teaching notes are available for educators only.

CSS 3: Entrepreneurship.

This case focuses on valuation using various methods to price a firm. Students attempting this case should know the basics of how to value a company using discounted cash flow, comparable multiples and comparable transactions. Students will need to calculate the weighted average cost of capital using comparable companies and the capital asset pricing model and determine differences in value created by an acquisition vs a leveraged buyout (LBO). The case also discusses qualitative issues in mergers, such as fit between target and acquirer, integration issues, potential high debt from LBO.

This case was library-researched, using Amazon and Whole Foods public filings and business press papers.

Whole Foods Markets received a buyout offer from Amazon. Whole Foods could solicit offers from other firms, including firms more directly in the grocery business. Whole Foods also considered a management buyout or purchase by a private equity firm. Whole Foods had underperformed, with a falling stock price and reduced profitability. Amazon’s bid was attractive, a premium of about 40 per cent over Whole Foods’ pre-merger stock price. Whole Foods also wanted to consider issues such as culture. Whole Foods’ strategy was to sell organic foods at premium prices, while Amazon was a retail discounter with a largely online business.

This case is appropriate for graduate students at the end of their introductory course or for graduate or undergraduate students in a corporate finance elective, particularly a merger/restructuring elective. The case has been used in an advanced undergraduate finance elective, with a team presenting the case to the class, with remaining students in the class required to write case summaries and questions for the presenting group.

Trouble was brewing for Nestle in India with a lab test finding MSG in Maggi noodles, a product brand which had been adjudged ‘most powerful’ and ‘most trusted’ in India;it was being banned in different parts of the country. Paul Bulcke, CEO of Nestle SA, arrived in New Delhi to face the heat and take necessary damage control measures. The case challenges the participants to review the events leading to a total ban on all the nine variants of Maggi noodles imposed by FSSAI, the Indian Regulator, by Nestle India. It also challenges them to suggest ways of taking care of the business in future in India as well as its effects in other countries.