QUIZ ON BUSINESS BEYOND PROFIT

MOTIVATION
Direction: Determine which new product development models are being described in each scenario. (1
point each item)
1. Textbooks for Change (2 answers)
In 2012, Chris Janssen was trying to figure out an easy way to raise money for the Terry-Fox/Shinerama
campaign at the University of Western Ontario. He came up with a model of collecting used post-
secondary textbooks from previous students to sell them back to other students looking for affordable
alternatives to existing purchasing platforms. After this small trial run, about $500 was raised for the two
(2) causes. Janssen then began to brainstorm ways to increase the impact an initiative like this one could
create.
In 2013, Janssen traveled to East Africa to teach at the University of Finance and Banking in Kigali,
Rwanda. Upon his arrival, Janssen noticed a deficit in the educational material available to these
institutions, as large groups of students often shared a single photocopied textbook. Knowing that there
were thousands of used textbooks back in Canada that remained unused, Janssen saw an opportunity
to collect these textbooks and sustainably redistribute them to students in need. This became the driving
force that helped Chris Janssen and business partner Tom Hartford cultivate Textbooks for Change into
today's sustainable social venture.

Market Intermediary
Independent Support
Textbooks for Change’s new product development models are: Market Intermediary and
Independent Support.
One of Textbooks for Change model is market intermediary since the social organization acts as
an intermediary, or distributor, to an expanded market. They provide, distribute, and resell affordable and
accessible educational material to students both locally and across the globe. Textbooks for Change
(T4C) is a B Corporation that collects donated textbooks in two ways: from drop boxes on post-secondary
campuses, and from student club collection drives. Close to half of donated textbooks are sent to African
universities in dire need of this quality educational material. The other portion are either recycled or resold
online across Canada at affordable prices. Additionally, if a socially purposed student club holds a
textbook drive, half of these net proceeds from textbooks sold will be returned back to help fund their
mission.
Furthermore, Textbook for Change is an Independent support since they provide funding
initiatives on local campuses. They do funding to empower and support their beneficiaries, particularly
students residing in East Africa and Canada.

This study source was downloaded by 100000867927773 from CourseHero.com on 06-04-2023 03:18:15 GMT -05:00

https://www.coursehero.com/file/130539600/04-QUIZ-1-JEFF-SUMALINOGpdf/
 2. Kiva
Kiva was founded in October 2005 by Matt Flannery and Jessica Jackley. The couple’s initial interest in
microfinance was inspired by a 2003 lecture given by Grameen Bank’s Muhammad Yunus at Stanford
Business School. Jessica Jackley worked at the school and invited Matt Flannery to attend the
presentation. This was the first time Flannery had heard of microfinance, but it served as a “call to action”
for Jessica. Soon after, Jackley began working as a consultant for the non-profit Village Enterprise, which
worked to help start small businesses in East Africa. While visiting Jessica in Africa, Flannery and Jackley
spent time interviewing entrepreneurs about their problems in starting ventures and found the lack of
access to start-up capital was a common theme.
After returning from Africa, they began developing their plan for a microfinance project that would grow
into Kiva, which means “unity” in Swahili. In April 2005, Kiva’s first seven (7) loans were funded, totaling
$3,500, and the original entrepreneurs were subsequently deemed the “dream team.” By September
2005, the entrepreneurs repaid the entirety of their original loans, and the founders realized they had
developed a sustainable microcredit concept. After the success of Kiva’s initial stage, Flannery and
Jackley founded Kiva as a non-profit. In 2006, notable entrepreneurs and businessmen joined Kiva’s
staff, including Premal Shah from Paypal and Reid Hoffman, CEO and founder of LinkedIn. Shortly after
its first anniversary in October 2006, Kiva reached $1 million in facilitated loans and acquired its twentieth
field partner. To the present day, Kiva has continued to grow and expand its field partners while acquiring
support from the media and the public.

Cross-compensation
Kiva’s new product development model is cross-compensation since the social enterprise offers
loans to entrepreneurs administered through local microfinance institutions – lending at 0% interest to a
client that pays 0% interest on their loan. Loans do not make borrowers better off; it is the use of the loan
that can make the borrower better off, and it is the general rule for Kiva’s MFI partners to provide this
advice as part of their product.
The social organization delivers financial services to poor via cross-compensation and allows
them to raise 0% interest capital. For MFIs, being able to raise interest-free capital is arguably the
greatest benefit Kiva’s new product development model.
They specifically offer services to those who do not have adequate credit or who are otherwise
“unbanked”, meaning they do not have access the services of a traditional financial institution like a bank.
This may be because they lack the assets needed to get a loan, are deemed too poor to merit targeting,
or live in a remote area where there are no financial institutions.

This study source was downloaded by 100000867927773 from CourseHero.com on 06-04-2023 03:18:15 GMT -05:00

https://www.coursehero.com/file/130539600/04-QUIZ-1-JEFF-SUMALINOGpdf/
 3. Edgar and Joe’s (2 answers)
The name Edgar + Joe’s Café s taken from Edgar, which is the name of the founder, while Joe’s identity
is in part the reason for the café’s existence. Joe is anyone whose life has been touched in any way by
mental illness. The Café aims to offer jobs and skills training in the food and hospitality industry while
providing nutritious food while at the same time attempting to break down the stigma of mental illness.
The goal is to hire people who have faced numerous barriers in the past and are getting their chance at
having a dream job for the first time in their lives. In addition, the café is hiring people who may just need
a paycheck or are looking for entry into the soon-to-be-developed hospitality training or food security and
nutrition programs.

Employment and skills training

Cooperative
Edgar and Joe’s two new product development models are: Employment and Skills Training and
Cooperative.
Firstly, Edgar and Joe’s is a social purpose enterprise of Goodwill Industries, Edgar and Joe’s
Café is a gathering space and food operation in London, Ontario. Their core purpose is to provide living
wages, skills development, and job training to the beneficiaries – the employees. Their goal is to employ,
train and apprentice people to ready them for the food and hospitality labor market. When you buy a
coffee, lunch, or treats at Edgar and Joe's you are supporting opportunities for people to be employed
and trained in the hospitality food sector, an industry that has high labor needs and challenges.
Supporting the Cafe helps Goodwill Industries fulfill its mission of changing lives through the power of
work. Edgar and Joe's Cafe at Innovation Works contributes to the vitality and economic wellness of our
community.
Secondly, Edgar and Joe’s is a for-profit social organization that provides people, particularly
those who face barriers, access to good, nutritious food and knowledge to improve health and well-being.
They make fresh and local food available, affordable, and approachable with healthy choices from a wide
variety of foods made from scratch with locally sourced ingredients whenever possible.

This study source was downloaded by 100000867927773 from CourseHero.com on 06-04-2023 03:18:15 GMT -05:00

https://www.coursehero.com/file/130539600/04-QUIZ-1-JEFF-SUMALINOGpdf/
 4. Fairphone (2 answers)
Fairphone is a social enterprise company that aims to develop smartphones designed and produced with
minimal harm to people and the planet. The company is based in Amsterdam, Netherlands and is
supported by the Waag Society, a foundation that fosters experimentation with new technologies, art,
and culture. The main motivation for founding Fairphone was developing a mobile device that does not
contain conflict minerals (Which in smartphones are typically gold, tin, tantalum, and tungsten) and has
fair labor conditions for the workforce the supply chain producing it. The second version of the company’s
handset is one of the first modular smartphones available for purchase, with the product being designed
to be easily repaired and upgraded.

Fee for service

Cooperative
Fairphone’s new product development models are: Fee for service and Cooperative
One of Fairphone’s model is fee for service since its beneficiaries pay directly for the smartphones
they manufacture. Here is the twist, Fairphone is not your ordinary fee for service social enterprise since
they take a fundamentally different approach to smartphone manufacturing by minimizing both the social
and environmental effects across the full lifecycle of the device. Fairphone puts people and planet first.
With every phone the company makes, they are getting closer to a fairer and more sustainable electronics
industry. Their smartphones are sustainable and eco-friendly and were the first ever modular smartphone
available on the market and designed to be easily repaired by the user.
Furthermore, Fairphone is a for-profit organization. The business provides the world’s most
ethical, green, labor-friendly, and sustainable smartphone at an affordable price. Their innovative product
development cares about the climate and our planet's delicate ecosystem. They care about designing
longer-lasting products that are easier to repair yet can still compete in terms of quality against large
business organizations in electronics industry.

This study source was downloaded by 100000867927773 from CourseHero.com on 06-04-2023 03:18:15 GMT -05:00

https://www.coursehero.com/file/130539600/04-QUIZ-1-JEFF-SUMALINOGpdf/
 5. O-Net (2 answers)
O-Net is the community-owned internet service provider that runs the fiber-optic network built by the non-
profit Olds Institute for Community and Regional Development in Olds, Alta, about 90 kilometers north of
Calgary.
O-Net was born out of a passion for creating a connected community in Olds where residents and
businesses have access to the kinds of technology services and experiences you would find in larger
cities.
In 2004, the Technology Committee of the Olds Institute for Community and Regional Development began
focusing on laying the foundation for this connected community to develop an Open Access
Telecommunication Network. In 2011, the construction of a state-of-the-art fiber-optic network began. With
this network now in place throughout the entire community, every resident and business in town has access
to technology, making people in other towns and cities jealous.
As Canada’s first community-owned and operated Fiber-to-the-Premises network, O-NET brings together
and delivers unique broadcasting, phone and Internet services to residential and business customers,
creating advantages such as the fastest Internet speeds in the country, the latest high-definition television
features, fully customizable telephone systems, mass storage and virtual private networks.

Cooperative
Market Connector
O*NET’s new product development models are: Market Connector and Cooperative. O*NET is a
market connector since the social enterprise connects and helps its beneficiaries to find their perfect
profession for them. They basically facilitate trade relationships between its beneficiaries and new
markets. O*NET, the Occupational Information Network, is a unique, comprehensive database of worker
competencies, job requirements, and resources. It is a free online database that contains hundreds of
occupational definitions to help students, job seekers, businesses, and workforce development
professionals to understand today's world of work in the United States. O*NET offers timely, easy-to-use
resource that supports public and private sector efforts to identify and develop the skills of the American
workforce. It provides a common language for defining and describing occupations. Its flexible design also
captures rapidly changing job requirements. O*NET’s innovative online design moves occupational
information into the technological age.
Furthermore, O*NET is a cooperative social enterprise. It is a non-profit organization since they
offer free online database of services. It includes information on skills, abilities, knowledge, work activities,
and interests associated with occupations for free. Beneficiaries can benefit from this information and can
be used to facilitate career exploration, vocational counseling, and a variety of human resources functions,
such as developing job orders and position descriptions and aligning training with current workplace needs.

This study source was downloaded by 100000867927773 from CourseHero.com on 06-04-2023 03:18:15 GMT -05:00

https://www.coursehero.com/file/130539600/04-QUIZ-1-JEFF-SUMALINOGpdf/
Powered by TCPDF (www.tcpdf.org)