Martin Bauer Group: Mittelstand, CSR and Frugal Innovation

<p style="color: rgb(197, 183, 131);"><strong> AWARD WINNER -Corporate Social Responsibility Award, European Foundation for Management Development (EFMD) Case Writing Competition</strong></p><br>In the fall of 2013, the family-owned Martin Bauer Group, a German-based company and world leader in the business-to-business market for tea and herbal extracts, became interested in the idea of collaborating with the frugal innovation company EinDollarBrille (OneDollarGlasses). The Martin Bauer Group was engaged in multifaceted corporate social responsibility activities, both domestically and abroad. Specifically, it fostered the development and diffusion of frugal innovations, which were affordable products or services developed under strict financial constraints to cater to low-income individuals in emerging markets. These companies usually worked in collaboration with partners. One such frugal innovation company, OneDollarGlasses, created durable, yet affordable, eyeglasses for people in the African country of Sudan, a prime sourcing market for the Martin Bauer Group. The work of OneDollarGlasses illustrated the reasons, motivations, and challenges that innovators often faced within developed and emerging markets when engaging in corporate social responsibility activities. Should The Martin Bauer Group work with OneDollarGlasses? Could the company be helpful and make a meaningful difference to the people in emerging markets by collaborating with frugal innovators like OneDollarGlasses? What benefits would there be for the Martin Bauer Group if they do?

This case is ideal for courses on corporate social responsibility, family businesses, business-to-business markets, and frugal innovation management. The case is primarily designed for use in executive education, MBA, or Master of Science in Management programs. Discussion of the case will give students the opportunity to:<ul><li>Understand the principles, functions, and challenges of corporate social responsibility, both in developed and emerging markets.</li><li>Learn about frugal innovations, as well as innovation opportunities and challenges in emerging markets.</li><li>Discuss strategy building for small to medium-sized businesses, business-to-business markets, and family businesses in terms of motivations and decision-making.</li></ul>

• CSR, family firms, emerging markets