• DePaul Industries in 2012: Financing Growth in a Social Venture

    Established in 1971, DePaul Industries was a social venture operated as one organization (and for short called DePaul Industries) but legally registered as two 501(c) (3) not-for-profit organizations (DePaul Industries and DePaul Services). DePaul's mission was to generate employment opportunities for people with disabilities. DePaul operated in three industries that shared three characteristics: they were employment intensive, had paper-thin margins, and were cash-thirsty. DePaul derived most of the funds to finance its operations from revenue from these businesses but had yet to turn a profit. In the past, banks had been willing to provide DePaul with financing (mortgages, credit lines, and factoring loans), but it had always been challenging and it appeared to be increasingly so. Dave Shaffer, DePaul's CEO, had begun to explore other options, namely social investors, but with little success so far. Considering DePaul's increasing difficulties to identify suitable financing, Shaffer had begun wondering whether these difficulties were, as in the past, rooted in financiers' lack of understanding and sympathy towards DePaul's social venture nature or whether there was something else-the eroding of DePaul's net assets connected with recent business losses (largely derived from its contract packaging business).
    詳細資料
  • Artesanías de Colombia

    Upon becoming General Manager of Artesanías de Colombia (AC) in January 2007, Paola Muñoz faced the challenge of redefining the organization's strategy. The mission of AC, a mainly government organization with a 3 % private ownership, was to foster, promote, and market Colombian handicrafts, thus creating economic development opportunities for artisans, a low-income, mainly indigenous population. In early 2007, soon after assuming her role as General Manager, Paola evaluated the strategy, achievements, and limitations of her predecessor's 16-year-long management tenure, in order to craft her own strategy for the organization. Whereas the previous strategy focused on crafts-with a strong emphasis on the promotion of design and the positioning of crafts as very differentiated products among high-income clients-Paola wanted to discuss with her staff the pros and cons of reorienting the AC's strategy toward the artisans, through increased training, support, and capacity building especially in administrative, economic and organizational areas. The case is based on an organization that is primarily a public/ government organization with a social mission. Governments and government agencies still represent in most OECD countries between 40% and 50% of the economy. This case invites students to (1) strategy formulation in not-for-profit or governmental contexts (specifically in this case a hybrid organization with (a) a dual mandate -social and business orientations (b) in a sector in which the small focal organization promotes value creation with a vast number of producers -over 350,000 artisans in the country) and to (2) highlight the relevance and limitations of strategic management concepts and tools in such contexts. Besides a strategic management course, this case can be used in a corporate social responsibility course to illustrate the challenges of a hybrid organization, in which profit-making and social mission are complementary objectives.
    詳細資料
  • Cascades Tissue Group: Sustainable Growth?

    In October 2006, Ms. Suzanne Blanchet, President and Chief Executive Officer of Cascades Tissue Group (CTG), was pondering how much weight should be given to products sold under the CTG brand compared to those sold under distributors' or retailers' private labels. The fourth largest tissue paper producer in North America, CTG was one of the four divisions of Cascades Inc.: a giant in the Canadian pulp and paper industry. The distributor and retailer private label market offered an attractive prospect for growth, but at the expense of CTG's own brands, which were more economically viable. However, developing a brand required sustained resources and investments, especially in marketing, which CTG's plant managers were still reluctant to support. Furthermore, her decision had to take into account the opportunities and threats related to the arrival of producers from emerging countries.
    詳細資料
  • The Nature Centre at Mont Saint-Hilaire: How Far?

    The Nature Centre was a non-profit organization created in 1972 to manage public outreach and access in the Gault reserve on the Mt St-Hilaire mountain, 40 km south of Montreal. Beyond conservation and recreation, the 2001 new mission included the promotion of the conservation of the region's natural environment. The inclusion of this new regional focus led to the recruitment of Marc-André Guertin and the creation of the Conservation Team. The case introduced the challenge faced in early 2006 by Marc-André Guertin, Project Coordinator of the Conservation Team at the Nature Centre when he received a contract proposal for a biodiversity assessment to be conducted in a regional municipal county located 58 km away, i.e., far out of the Nature Centre's usual scope of action. He was considering this decision based on (1) the broader context of the organization's mission, (2) the management of his team, (3) the scientific value of this assessment for his team, and last, (4) the financial dimension of this assessment on his team's tight resources
    詳細資料
  • Seventh Generation: The Marketside Offer

    Seventh Generation is a leader in the niche market for "green" household cleaning products in the U.S. It enjoys a unique reputation, strong branding, and fast growth. In 2008, while Seventh Generation is looking for ways to expand its customer base, its executive management is approached by Marketside, a subsidiary of Walmart set up to tap into the "green" market. The potential market that Seventh Generation could access through this partnership is enormous. But so is the risk of being associated with a retailer that has been heavily condemned in the past for its poor environmental and social record, and which Jeffrey Hollander, cofounder and chairman of Seventh Generation, has been publicly criticizing for many years. He must weigh the pros and cons of this opportunity, evaluate the risks, and make a decision on whether to accept Marketside's offer.
    詳細資料