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  • Challenging an Industry: The Rise and Fall of Teo Taxi

    In 2014, with Uber disrupting the taxi industry worldwide and Montreal's industry, hampered by obsolete rules and regulations, in dire need of a revolution, the founders of Teo Taxi hoped to offer a fresh alternative. They proposed a unique business model based on an electric-only taxicab fleet, decent wages for drivers, and profits reinvested in the local economy. Reinventing an industry and fighting strong adversaries such as Uber would however come at a huge cost. The case recounts the story of a young company striving to reach breakeven without compromising the social and environmental values at its core. Despite its best efforts, in January 2019, Teo Taxi filed for bankruptcy, leaving 450 drivers jobless. The case invites students to identify the factors that led to Teo Taxi's bankruptcy and propose strategies that could have helped to achieve breakeven, stabilize the business model, and ensure sustainability.
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  • Can One Size Fit All? The Case of ACEM and Community Credit

    This case study focuses on the Montreal Community Loan Fund (ACEM), which fights poverty and exclusion through the administration of community credit. More specifically, ACEM provides training and offers loans to marginalized and vulnerable people for pre-start-up, start-up, and consolidation of businesses. The case describes ACEM's recent history and how the organization long chose to increase the scale of community credit services through collaborations and partnerships, avoiding for decades the need to grow its own organization. In 2012, ACEM broke with tradition and launched its own scaling process to double its size. The case thus describes an organization trying to stay focused on its social mission and core values while ensuring its own financial stability and protecting the interests of the network of independent community credit organizations that it co-founded. It thus provides an opportunity to discuss the variants of scaling and the challenges faced by a growing not-for-profit organization. The case ends by describing a dilemma regarding ACEM's financial instability. Students will be asked to make a decision regarding the current scaling process and propose a sustainable model that will make ACEM less dependent on government grants while respecting its core values.
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  • BeautifulCoffee and Fair Trade: Working with Local Farmer Co-operatives in Nepal

    Not long after John, BeautifulCoffee's (BC) newly appointed producer partnership manager, began his evaluation of the business relationship between BC and its coffee producer organization in Nepal, he realized that the relationship fell far short of internationally recognized fair trade standards. Furthermore, production quality was low because of poor management at DCF-Gulmi. BC was investing substantial resources in helping the local community in Nepal, and the term "fair trade" had significant appeal to Korea's ethical consumer segment. The fact that BC was unable to guarantee that DCF-Gulmi was being managed according to a democratic governance system - a key requirement for fair trade certification - raised legitimacy concerns for BC. John had to decide whether to prioritize social or business considerations. If he decided to prioritize the business aspect of fair trade, he would need to replace the partner supplier with a fair-trade certified, democratically run organization with the management capability to provide high-quality coffee beans. If this path was chosen, BC would still make a positive contribution to the well-being of coffee farmers - somewhere else - but would not help DCF-Gulmi improve its current situation, leaving it worse off than it was before it partnered with BC. Alternatively, BC could maintain its relationship with DCF-Gulmi, deepening its commitment to helping the farmers' organization improve its quality management capability and comply with fair trade standards. But this would require a larger financial and human resource commitment to pay for the recruitment and training of personnel with the necessary expertise in organizational change, co-operative management, and capacity building. Students will discuss the moral and strategic issues surrounding these two choices.
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  • Corporate Citizenship in Mining Projects: The Case of the Ambatovy Project in Madagascar

    This case looks at the Ambatovy mining project in Madagascar, which involves exploring and exploiting a giant nickel and cobalt mine near Moramanga, on Madagascar's east coast. The project could bring important economic and social development to Madagascar, one of the poorest countries in the world but requires a high level of commitment to environmental protection along with the support of local communities. The company is developing programs to compensate for its ecological footprint and to achieve the goal of "no net loss" of biodiversity. The case gives a history of the project, the main actions taken, and the results delivered by the company while attempting to engage in "sustainable exploration and exploitation" and to be a "responsible" corporate citizen. The company's perspective of the social, economic, and environmental issues surrounding the project is compared with that of two other stakeholders: the government and local communities.
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  • The Social Economy and the Traditional Market: The Dilemma of Justa Trama

    This case is about Justa Trama, a network created in 2005 in Porto Alegre, Brazil, composed of six organizations working in different fields across Brazil. The network involves a complete production chain of clothing and accessories made from organic cotton, from planting to the consumer. This network employs more than 700 workers and its primary goal is the elimination of all intermediaries in the production and commercialization process. The main dilemma is how to reconcile the different members' views on the commercialization process by creating alternative strategies to grow and increase profit without compromising the social economy principles.
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