MNGT4800 Case 4 BWB
MNGT4800 Case 4 BWB MNGT 4800
Popular in Strategic Management (Section 009)
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This 4 page Class Notes was uploaded by Peyton Oglesby on Tuesday March 29, 2016. The Class Notes belongs to MNGT 4800 at Auburn University taught by Dr. Peter Stanwick in Spring 2016. Since its upload, it has received 23 views. For similar materials see Strategic Management (Section 009) in Business, management at Auburn University.
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Date Created: 03/29/16
MNGT4800 Case 4 Better World Books Caring Capitalism *important* • Caring Capitalism seeks to address social issues, be kind to the planet and still enrich shareholders. o The foundation for social entrepreneurship and the triple bottom line Social Entrepreneurs • Social entrepreneurship -firms can be defined as organizations that have created business models that cater to basic human needs, which are not currently being served. • Social entrepreneurs can be considered as individuals who use their drive and motivation as traditional entrepreneurs and focus on a mission that can positively impact society. 3 Critical Attributes of Social Entrepreneurs 1. A specific vision of the purpose and goals and objectives of the organization. 2. The ability to use his or her leadership skills to champion the implementation of his or her vision. 3. The will and motivation to be committed to develop the business so that it will be sustainable in the long term—you’ve got to make money and be financially viable to have a vision continue in the future 4 Types of Capital in Order to Succeed for Social Entrepreneurship • Financial capital is the creation and growth of wealth for the firm. • Social capital is the “wealth” that is generated to the community and society through the operations of the social entrepreneur’s organization. • Environmental capital is the “wealth” created by focusing on environmental sustainability issues by the organization. • Aesthetic capital is the intangible “wealth” that is created by developing a “feel good factor” by making the world a better place to live in. o The emotional connection to what your business is doing. You actually want to go to work, and enjoy seeing results. 10 Characteristics of Successful Social Entrepreneurs 1. Try to disregard the constraints of ideology or discipline. o If you start a business there will be people who say “no” “you will fail” etc. don’t let someone persuade you unless there is evidence they show you to prove their point 2. Use innovation, resourcefulness and opportunity in order to determine what practical solutions are viable to solve a social problem. 3. Using innovation to focus on the development of new products or services. 4. Focus on how the organization’s mission will be used to create social value and be able to share their knowledge to other social entrepreneurs. 5. Don’t wait until all your resources are available in order to capitalize on the opportunity. 6. **Everyone has the ability to contribute to the economic and social development of the organization. o feedback!! 7. Every entrepreneur is willing to take risks in order to succeed. 8. Make sure to balance the passion for the project with the ability to measure and monitor the social impact of the project. 9. Successful social entrepreneurs are also good teachers for others to learn how to achieve their social goals. 10. Entrepreneurs have to be impatience when they do not see the type of progress that is needed for a successful competition of the project. Better World Books • For-profit social enterprise o They collects & sells books online to fund literacy initiatives worldwide o Collects surplus books from libraries, bookstores, and college campuses. • Sells the books & contributes a portion of the revenue to support literacy, libraries & education. • Books not sold are donated to at risk communities in the United States. • More than 8 million new & used books in-stock • Since its’ founding in 2003, o BWB has raised over $20 million for its non-profit literacy & library partners 21% of US residents are functionally illiterate o $9.4 million for over 80 literacy and education nonprofits o $12 million for libraries and thrift stores nationwide o Donated over 6 million college textbook to school primarily in Africa o Diverted 250,000 tons of books from landfills 2 billion pounds of books are dumped in landfills every year o Set up Book for Book program Company History • Began by 2 Notre Dame students in 2003 o Produce cash by selling used books online o Book drive w/ local community-learning center o Won “Best Social Venture” in case competition • Expansion through partnerships o Partnerships w/ libraries o University book drives o Partnerships w/ other booksellers • Further growth o Launched website in 2008 o Launched BWB UK in 2008 Current Problems • Highly competitive environment • Economies of scale/operational efficiency • International expansion • E-books as an external environmental threat • Brand management o Perceived value of differentiation strategy o Lack of integrated marketing strategy o Narrow customer segment BWB’s Impacts: • Social o Profitability • EBITA positive by the end of 2010 • Poised to move from $45+ to $100+ million in annual revenues • All profits reinvested in the company o Ownership • No economic distributions to owners or employees • Provides stock option grants (5% combined ownership stake) to major nonprofit partners o Job creation • Created more than 350 jobs (200 full-time) across three locations • Mishawka, Indiana, warehouse was an abandoned packaging plant in a distressed industrial center • Environmental o Reused books • Recycled products require no additional raw materials and create no production waste • Over 53 million pounds of books reused or recycled • Kept over 8,000 tons of books out of landfills o Shelving • Recycled metal shelving from libraries in warehouses • Kept more than 700,000 pounds of shelving out of landfills o Neutral carbon footprint • Purchases carbon offsets to balance its shipping and other operations) • A few cents from every transaction support wind energy projects • Utilizes local post offices whenever possible (“eco- shipping”) Slides 20-26 contain a LOT of tables, please refer to the BWB PowerPoint
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