BUSINESS UPDATES
AMD : Simplifying Customers'
PC Buying Decisions
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CASE IN FOCUS
KickStart: A Business Model to Tackle Poverty
The case discusses the innovative business model adopted by KickStart International, Inc. - an
organization started by Martin Fisher and Nick Moon, two social entrepreneurs - to promote development in some
African countries. It describes the rationale for setting up KickStart, the basic tenets of its model, and the
various devices developed by the organization, including the successful Super MoneyMaker series of irrigation
pumps. The case also provides an overview of KickStart's operations and the contribution of its devices to
development in the countries in which it operated. The case ends with a discussion on the challenges faced by
the organization and its future outlook.
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BUSINESS STRATEGY
Ford India in 2009 (A) : Need for a Strategy Change?
-- Besta Shankar and Ramalingam Meenakshisundaram
Ford Motor Company had entered the Indian auto market in 1995 and introduced mid-sized car
models, but its sales growth had not kept pace with the growth in the market. As of February 2009, India had a
3% share of the global market for passenger cars and commercial vehicles. Unlike the US market, the
Indian market for passenger cars was dominated by small cars. To capture a significant share of this
high-volume, high-growth segment of small cars, many companies - both multinational and Indian - were gearing
up with new product launches. The case concludes with questions on the strategic decision that had to
be taken on Ford's loss-making Indian subsidiary, in terms of its course of action for the domestic market
and how it would contribute to the long-term success of the parent company in other emerging markets.
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BUSINESS ETHICS
The Coca-Cola - Honest Tea Deal: Promoting Sustainability or
Corporate Greenwashing?
-- Indu P and Vivek Gupta
US-based, Honest Tea Inc. (Honest Tea) was founded by Seth Goldman and Barry Nalebuff in 1998, as
all natural, bottled iced tea company. From natural tea, Honest Tea went on to sell organic tea in 1999. Since
its inception, social responsibility and environmental sustainability were of prime importance to Honest Tea
and were a part of the company's identity and purpose. Honest Tea partnered with local communities to
procure organic ingredients. As Honest Tea procured fair trade products, the workers on the farms benefited as
they were provided with better wages and working conditions.In a span of ten years, Honest Tea's revenue growth witnessed a CAGR of 66%. The company's
revenues reached US$38 mn by 2008 from US$250,000 in 1998. In February 2008, the Coca-Cola Company
acquired an equity stake of 40% in Honest Tea. The agreement between the companies stated that Coca-Cola
can acquire the remaining stake after three years. Seth Goldman maintained that Coca-Cola's acquisition of
the stake would benefit Honest Tea, as it would strengthen the company's distribution capabilities.
However, customers who lent their support to Honest Tea over the years were not happy with this deal. They said
that Honest Tea was selling out to Coca-Cola, which had a history of environmental and labor abuses in some
of its international markets. Some of the industry experts were of the view that Coca-Cola may
discontinue Honest Tea's sustainable business practices.
© 2010 ICMR. All Rights Reserved. For accessing and procuring the case study, log on to www.ecch.cranfield.ac.uk or www.icmrindia.org
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