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Leading the Social Venture Start-up: An Operational Crisis at Pigeonly
Pigeonly was launched in 2012 as an affordable technology provider serving the incarcerated population. Growing out of his own 5-year experience as an inmate, Founder Frederick Hutson created a business model, launch plan, and corporate mission statement: to create easy, affordable mail and telephone services to better connect the 2.3 million people incarcerated in America to their loved ones. A for-profit company with a social mission, Pigeonly overcame the complexities of dealing with the US prison system and grew quickly: by 2015, its operations supported on average two million minutes of phone time and 250,000 photos sent every month. In 2016 Hutson learned that its key photo supplier was going out of business. This case provides students with data on the US prison population, the cost of available communications services, and details about Pigeonly's own business model and asks them to consider how Hutson should respond to its operational crisis. -
The Business Model Canvas - A Useful Tool
This case lays out the steps for creating a Business Model Canvas (BMC)-a comprehensive and intuitive framework intended to facilitate description and discussion of a new venture idea. Focusing on both the efficiency and value generating aspects of a new business, the model directs the founding team members to consider key aspects of a core model, including the company's value proposition, customer relationships, revenue streams, cost structure, and competitive environment. A variation on the model for nonprofit organizations, a Social Impact BMC, is also presented, adding additional items such as impact metrics. The case includes several real world business examples and asks students to prepare a traditional BMC for the for-profit company (Nespresso) and a Social Impact BMC for the social impact example (ConBody) using the tools outlined in the case.