Business Unusual:

Understanding Alternative Business Models [3.0 Credits]

(PGP– Fourth Term 2022)

Instructor: M S Sriram

Overview and Objectives

The world faces monumental challenges in the process of development. The process of
intervention for bringing about a change usually comes from the State, but we are now
increasingly finding commercial solutions to the problems of poor and the dispossessed
where the markets are stepping up with alternative and hybrid business models. We also
have the not-for-profit firms contesting the markets, while being players in the market.
This course will focus on business unusual - a space where commercial firms would
hesitate to take a plunge. As the business is unusual, so is the funding, the organizational
form, the return expectations and the definition of stake holders. We will use the class-
room setting as an opportunity for us to step-back and look at the challenges afresh --
not as problems but as opportunities for innovative and creative thinking.

Entrepreneurship has emerged as a rapidly growing sector housing much of innovative

thinking. By seeking to merge the creation of societal value with unusual, self-sustainable
entrepreneurial activity, the course seeks to engage businesses that are interested in
contributing to society but either wary of or intimidated by the traditional actors in this
space.

The specific objectives of the course are to help participants:

 Understanding alternative business models and forms of incorporation

 Understand the need and role of new and innovative businesses and non-profit
enterprises and the contribution they can make in solving some of the biggest
challenges faced by society
 Appreciate constraints under which such enterprises operate

Pedagogy

The sessions will be driven by case discussions, with a few instructor lectures, and guest
lectures. The participants would be required to engage in this space through assignments
on specific sectors and challenges that are emerging in the developmental space.

Evaluation

Analysis of cases (two in number one pre mid-term and one post mid-term: 50%)
Student Presentation: 15%
Term Paper: 25%
Class participation 10%

Deadlines

Wednesday 16th June 2022 23:59:59: Confirmation of the name of organization/topic:

Wednesday 23rd June 2022 23:59:59 : Proposal/Outline of term paper
Sunday 10th July 2022 23:59:59: Optional Interim progress report for feedback
Sunday 17th July 2022 23:59:59 Pre Mid Term Case Analysis
Saturday 27th August 2022 23:59:59 Post Mid Term Case Analysis
Monday 29th August 2022 23:59:59 Final Term Paper submission.

Module I: Introduction and Design Issues

Session 1 Where it started: The Corporation
10th June 2022 Readings: 1. Charles RT O’Kelley: The Evolution of the Modern
Corporation: Corporate Governance Reform in Context.
Session 2 The Economic Logic of a Corporation and How a corporation is
11th June 2022 Structured
Readings: Capital Structure and Member Control [Phansalkar, Reddy
and Srinivasan] S2-Phansalkar
16th June 2022 Confirmation of the name of organization/topic:
Session 3 Session 3: Alternatives to the centrality of profits: Co-operatives –
th
17 June 2022 Design Issues and Implications
Presentation G1 Case: Fedore Cooperative: Effective Conflict Resolution and Decision
Making [W17435]
Readings: Organisational Features of Co-operatives: Sriram S3-Sriram
Session 4 Alternative Businesses: Not for Profit Enterprises
th
18 June 2022 Case: Basic Healthcare Services: An Innovative Model for Primary
Presentation G2 Healthcare delivery in Rural India [ISB 233]
Readings: 2.David Bornstein: The Restless People
3.J Gregory Dees: The Meaning of “Social Entrepreneurship”
23rd June 2022 Proposal/Outline of term paper
Session 5 Alternatives to the modern corporation: Social Businesses
24th June 2022 Case: Nutrivida [SKE 169]
Presentation G3 Readings: 1.Mohammad Yunus: Social Business
Michael Baker: Capitalism and Social Business
Session 6 Adding value to the corporation: Benefit Corporation
25th June 2022 Case: Verdeagua: What is at stake when investing in a Certified B
Presentation G4 Corporation
Readings: A Community for Change: B Lab and Certified B Corps
Session 7 A Social Business here and a B Corp there: The concern of “concern”
st
1 July 2022 Case: Danone North America: The World’s Largest B Corp [KS1284]
Presentation G5
Session 8 Understanding the Bottom of the Pyramid argument and its limitations
2nd July 2022 Case: Novartis: Building a Sustainable Business at the Bottom of the
Presentation G6 Pyramid IN 1524
Reading: Karnani: The bottom of the pyramid strategy for reducing
poverty: A Failed Promise
Session 9 Organisational form Choice:
8th July 2022 Case: For the Love of Laundry: Comparing Organisational Forms to
Presentation G7 Scale a Social Enterprise. [W18022]
Session 10 Institutions that build the Ecosystem: A proposal for a Social Stock
9th July 2022 Exchange
Reading: Working group report on Social Stock Exchange
Technical Group report on Social Stock Exchange
th
10 July 2022 Optional Interim progress report for feedback
17th July 2022 Pre Mid Term Case Analysis
Module II: Issues, Problems and Alternative Business Models
Session 11 Alternative and new funding models
22nd July 2022 Case: Collab Capital [HBS 9-821-067]
Presentation G8
Session 12 The business of “Giving”
23rd July 2022 Case: How to Encourage Others to Give and When to Pass the Torch?
Presentation G9 Insights from The Philanthropy Connection [HBS 0-920-018-PDF-
ENG]
Session 13 Using Funding: “With great funds comes great responsibility”
29th July 2022 Case: Community Solutions [HBS 9-322-021]
Presentation G10
Session 14 Profits at the centre: The meaning of growth
30th July 2022 Case: Fabindia: Branding Artisanal Crafts for Mass Retail [INS 970]
Presentation G11 Reading: Profit or purpose: The dilemma of social enterprises (Sriram)
Session 15 Artisans at the centre: The meaning of growth
th
5 Aug 2022 Case: Shrujan: Weaving Long Lasting Threads of Life. [W21100]
Presentation G12
Session 16 Purpose through profits: For profit models focusing on purpose –
12th Aug 2022 Saving the planet by selling less
Presentation G13 Case: Patagonia’s Sustainability Strategy: Don’t Buy our Products
[IMD790]
Session 17 The meaning of growth – Scaling or Spreading?
13th Aug 2022 Case: Reversing Climate Change Through Sustainable Food: Patagonia
Presentation G14 Provisions Attempts to Scale the “Big Wall” B5888
Session 18 Managing the purpose and the anxiety of scaling
19th Aug 2022 Case: India’s Amul: Keeping Up with the Times (HBS 9-514-067)
Presentation G15
Session 19 Scaling: An alternative story
20th Aug 2022 Wordreader: Helping Readers Build a Better World HBS 9-522-003
Session 20 Purpose through Profits
22nd Aug 2022 Case: groupelephant.com 2021: Beyond Corporate Purpose B5997-
PDF-ENG
27th Aug 2022 Post Mid Term Case Analysis
29th Aug 2022 Final Term Paper submission

Guidelines for working on BU Project/Term Paper

1. This is an individual assignment.

The students have a choice working on any one of the following assignments:

What is possible:

1. Live case study of an “unusual” enterprise

2. Term paper on the conceptual issues that looks at design of organisations
3. Sectoral paper looking at an organizational intervention in a particular sector
(agriculture, education, health and so on)
4. Design your own study, but seek approval.

Case Study
If you choose a case study, you will first have to contact the organisation that you wish to
study and take an in-principle approval from the organisation for the study. I should have
the confirmation from the organisation along with the proposal. The case study should
ideally cover the following aspects:

 What was the trigger that started off the organisation – this could be an identified need
through a personal experience of the promoter, a clear study done in order to identify the
gaps or a need that got articulated by the community at large in some forum of the other.
Just go back to see what the basic trigger that set the ball rolling for the organisation.

 What is the background of the founder of the organisation, what was the orientation or the
thought process of the founder/chief promoter that led him or her to venture into the
enterprise space. Reflecting back do they regret having set up the enterprise or are they
proud. Would they have done it in any other way given the benefit of hindsight, and what
were the challenges they faced when the first set out on the venture.

 What is the organisation’s idea of change/intervention? How does it translate to design of

products, approach towards customers. How do they deal with the dilemma of flexibility
versus standardization. Is the staffing structure and governance structure adequately designed
to meet this idea of change?

 What is the current structure of the organisation, both at the level of governance
[composition of the board] and at the organizational level [including second line leadership,
internal systems, shared vision, passion to work, professionalism and the works]. Is the
organisation structure and systems in your opinion appropriate for the vision and the
objectives of the organization.

 Does the organisation have significant challenges in being perpetual? This aspect would
cover the sustainability issues of the organisation – and sustainability includes not only
financial sustainability but also the sustainability of the ideas and objectives.

 A brief evaluation of the organisation and a review of significant shifts in the direction the
organisation has taken after being established.

 Having done this, you should evaluate the organisation to indicate whether such an
organisation is easily replicable or scalable.

Sector Paper

In case of a paper, we would expect the participants to identify the themes listed above.
Your proposal should indicate the data sources upfront so that it does not become a
constraint later. You need to state upfront what you are trying to examine through the
paper and what the data is expected to convey. It would be good if you give a brief set of
arguments laid out by prior scholars on this issue.

If you have picked a paper then please ensure that the following is provided:
 Providing a quick overview of the landscape – the current state of affairs, the market and
state forces that aid or hinder it in terms of resources, policies and incentives.
 Broad profile of the customers. What are their needs, constraints to mobilization, aspirations,
etc.?
 Significant initiatives undertaken in this sector by state/market players/NGOs, the gaps
addressed and the outcomes achieved.
 Identify the need for an intervention and whether it should be product design, institutional
innovation or policy prescription.
 Develop a strategy for intervention that addresses the problem thus identified.

Although the arguments set out in the paper can use the secondary data liberally to arrive
at broad conclusions, an alternate strategy would be to conduct primary data collection in
an area/population where the need for an intervention within the sector exists. The
paper should clearly be able to identify gaps and how these aspects could be addressed.
In addressing such matters it would be important to consider the available hard and soft
resources and also indicate problems and pitfalls that can be foreseen.

The word limit for either of these should not be more than 5000 words and not less than
3000 words.