Small Business Cases 2

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SMALL CASE STUDIES ON E N T RE P RE N E U RS H I P BO O K NO. 2 CASE STUDIES FOR THE STUDENTS OF SOCIAL ETREPRENEURSHIP PREPARED BY : DR. T.K. JAIN HONORARY CHIEF MENTOR, AFTERSCHOOOL © : AFTERSCHOOL CAREER GUIDANCE TRUST. NOTE : THE PURPOSE OF THIS CASE STUDY IS NOT TO SHOW THE RIGHT OR WRONG METHOD OF DOING SOMETHING. THE CONTENTS OF THESE CASE STUDIES ARE HYPOTHETICAL AND THEIR SIMILARITIES TO SOMETHING REAL IS BY CHANCE. THE PURPOSE OF THESE CASE STUDIES IS TO PROMOTE ACADEMIC DISCUSSION AMONG PGPSE PARTICIPANTS OF AFTERSCHOOOL. PGPSE IS THE PROGRAMME TO PROMOTE SOCIAL ENTREPRENEURSHIP THIS PROGRAMME IS AVAILABLE FREE OF COST FOR ANY PERSON WHO WANTS TO PLAY AN IMPACT MAKING ROLE IN SOCIAL TRANSFORMATION.

Small Business Cases TABLE OF CONTENTS

( R E A D A S P E R P G P S E P R O G R A M M E S Y L L A B US )

1. ANKIT’S DILEMMA 2. RAISING PUBLC OPINION

3. TURNAROUND OF INFOINFOXEROX 4. PAWAN’S NEW NEW BUSINESS PLAN

ANKIT’S DILLEMA

In order to start something new, Ankit started project formulation. He prepared two social development projects. You have to help him in identifying the appropriate project. 1. The first project is about spreading education in Rajasthan. He studied villages in Rajasthan and found that the biggest challenge is to spread education in the far off villages. He found that there was lack of school in the vicinity of most of the far off villages. If the school is 10-15 km away, the parents would not send the children to that school. Many government schools are defunct in the villages. He thought of a plan. He decided to hire local persons for providing education. He prepared a business plan in which he would take a SHIKSHA-KARMI who would spread education in his and nearby villages. Eligibility norms for this person would be that he must have at least class 8th completed. He must have very high motivation to provide education. He would use the local resources and vernacular language in providing basic education. Instead of A for Apple, he would use A for some local thing which the children in villages can identify. Thus Ankit had a plan to spread education without formal schools. SKHIKSHA-KARMI would take Rs. 1000 from Ankit and work as a volunteer. He would teach children under some tree or some community building. If required, he would go to Dhani (field area) and spread education in Dhanis. Ankit had thought that once in a year, he would organise a residential educational camp, where all the students (taught by SHIKSHA KARMI) would come and there they would be provided best possible education using ultra modern facilities and amenities. Ankit had one doubt should he hire SHIKSHA KARMI at such a low package. Ankit was expecting to get financial support from funding agencies and his supporters. Ankit knew that his plan will bring tremendous improvement in the villages - as education will act as catalyst in the villages. The second plan was to start a cultural heritage centre. Ankit had thorough knowledge about Rajasthan culture and folk art. He surveyed and found that lot of tourists are interested in understanding the culture of Rajasthan.

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Ankit found that folk art and culture was on the verge of extinction. There were many things, which were accessible only to a few persons. Foreigners were more interested in understanding and experiencing the unique culture of Rajasthan in a comfortable environment. Ankit prepared a plan where he would open a centre in a village, which was connected to the capital of Rajasthan Jaipur. Ankit would open a model centre - where tourists can flock in. He would contact with the tourists agencies would over and tie up with them for ensuring that tourists come. He would set up huts (with all modern amenities), folk art centre, recreational centre, folk art training academy, Rajasthani cuisine development centre, and documentary movie development centre. It will be the centre, where he would invite folk artists to present their art (from all over Rajasthan). It will be the centre, where he would document and preserve the folk art of Rajasthan, including paintings, dance, customs, costumes, designs etc. From a preliminary study, Ankit found that this project would be a profitable project in next 5 years. Ankit was sure about profitability, but he wanted to do something, which can ultimately benefit society. His ideals were the nobel laureates like Mother Teresa - and he wanted nothing less then the perfection, which could simply transform the society. Ankit didn’t want commercialisation to spoil the culture of Rajasthan. He had a plan, which would definitely ensure that culture and folk art of Rajasthan is preserved and developed. After spending 6 months, Ankit was ready with two great plans, but didn’t know which plan to pick up and how to start? Can you suggest?

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RAISING PUBLC OPINION

After completing my post graduation in social work, I had different options to choose from. I had done my internship (project) with an organization for social development and wanted to work in this field. I joined BSC, a well known organization in Gujarat and wanted to share my vision with them. They asked me to share my vision which I told my vision. I surveyed and identified a village, which was very backward. I decided to work in that village. I went to that village and started living in that village as a worker. I developed friendship with the people their. The village was having very hierarchical system. I realised that in order to change the village, I had to change the system. I encouraged people from backward classes to come forward. I also encouraged the women in the village to come forward. It was not easy. I tool help of the women nurse of the village and the persons from backward community to participate in important matters in village. I soon faced resistance from the village. Ultimately I was forced to quit the village. The entire village community was against me. Nobody realized my dreams. I now formed my own NGO. I approached funding agencies like FORD FOUNDATION for help. I made a written proposal to them and requested them to help me. One funding agency agreed for helping me in conducing awareness programme for women awareness – not for the work that I actually wanted to do. I started the work. I hired 2 women volunteered to work on the project. I took them with the condition that they have to undertake reconstruction work in the village besides awareness building. Both the candidates were full of enthusiasm and wanted to develop their village. They were filled with positive spirit. My NGO started work. I decided to take the help of women from the village for changing the village. I visited the village and tried to study the village. I noted down information about important persons in the village, important linkages, and important practices. Soon there were many occasions, when I could meet with the villagers in awareness building programmes. This time, villagers didn’t oppose me, as they thought that I was like a BABU – a typical govt. employee kind of person. I got entry into the village. I started my work. I saw a beer shop in the village – which was illegal (in Gujarat – it is illegal to sell beer). I could easily oppose it. But I asked the women in the village to protest against the shop. I took help of other NGOs in the nearby cities and asked them to help the people in the village. AWAG and many other NGOs came forward. I was in the background this time. My plans worked. There was a lot of media coverage. One woman in the village got to the limelight. She became vocal and started shouting against the shop. Soon the shop was closed. The shopkeeper ran away and it

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was a big victory in the village. The women in the village became very active now. I used to attend their meetings and used to suggest them developmental plans. They organized SHG on my advice and their income increased. They took many other steps for the development of their village. The village was soon converted into a model village. They organized crafts and industries in the village. I used to bring resource persons from cities to help the villagers. I wanted to help them more, but now they had developed their ideas and now they were self reliant. They soon set up their own NGOs. Sirdi Ben, an elderly woman from the village got award from Govt and other bodies for her initiatives in rural development. Women took the lead now. Soon there was a woman Sarpanch in that village. My project was for 3 years, and it came to an end. My funding agency had a review meeting, and I presented my data- (which were all numbers). I told them that malnutrition level has reduced from 70 percent to 10 percent… so on. Thus my targets were more than achieved. I knew that I had achieved my targets more than the numbers. Now I was searching for other villages to start my projects. I took 4 projects for 4 villages and hired some volunteers and started the work. I took help from villagers in the previous village also. One funding agency representative asked me about my style of working. I didn’t have any office, any building, and any fixed investments. He asked me about how I wanted to work. He was not convinced about my future. I told him that I didn’t want to be like a Bunyan tree. My dream was simple, go in villages and raise their mind, raise their societies and once the village had its self reliant NGO, I had to withdraw. It was surprising for the representative of the funding agency. I was sure that I had my mission in my eyes. I didn’t want to make a gigantic organization, but only wanted to offer a little help in raising the village ideas and vision. I used my expertise in raising public voice and public thinking. My ideas were revolutionary and I knew that if I expose my ideas before typical villagers, I would be ousted (exiled from village) therefore I had changed my strategies. I wanted to convert the villages into truly democratic institutions. I was moving in this direction. By now I have helped 23 village institutions to come up. With my help these villages have their own self help groups, their own bodies and villages are working on democratic lines. In spite of all my efforts, I find it difficult to break the chains of caste system, age old customs etc. I was able to bring greater awareness. I used education, awareness, and public participation as important tool to bring about desired changes in the villages.

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I spend 20 days in villages traveling, talking and gossiping with the villagers. I come across people who think that I am a politician. There are also offers to me to join active politics. But I tell them very clearly about my mission and my goals. I continue on my journey. Do you think I am on right tract? Should I continue as it is or change my course of action?

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TURNAROUND OF INFOINFOXEROX

Rangarajan or Ranga joined Infoxerox India office. It was a time when Infoxerox was in difficult conditions. Once a market leader, Infoxerox had seen the time when people used to talk about it as synonymous to photocopy. Off late there had been a number of difficulties. It was difficult for this company to convert into digital environment. The employees had a fixed mindset. They were not prepared to change with the changing time. Most of the employees were of the service of 10 to 14 years and they were not able to understand the imperatives of change. Ranga decided to introduce massive change, but he wanted to do it in people friendly style. The company was undergoing massive changes all over the world. It was like do or die situation. Ranga introduced teams of people to document the processes in the organization. Each and every process was noted down. Customers were contacted and their requirements were noted down and as per that each process was again stretched out and this process was noted down. Teams of people were now responsible to identify the processes in the company and identify internal and external difficulties. The company introduced TQM and introduced internal accountability. Time was fixed for each process and there was accountability for these processes. The company was soon able to experience positive changes. It was now able to compete with companies like Ricoh, Cannon, and other companies of the industry. There was also change in the company in other offices. Ranga was not an MBA or a person from commerce background. He attended special classes to understand balance sheet. He wanted to introduce financial accountability across the company. Each executive was now responsible for four aspects: A. Revenue and expenditure generated B. Quality of changes introduced by that person C: Customer relation and new customer addition D: Overall level of motivation and innovation introduced by that person in the company and amount of learning introduced by that person. The company soon experienced a major shift. Old employees realized that they needed training in the new systems. They

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demanded training and development. Ranga carried our TNA (training need assessment) and hired professional trainers to introduced company wide training and development program. The company introduced comprehensive training in quality management, customer relation management, organization development etc. Massive organizational changes were stressful for many persons. While earlier employees thought that they were permanent employees, Ranga told it very clearly that nobody is permanent and if the performance was not up to the minimum level, any person can be asked to quit. Although no person was retrenched, but the message created a new work culture. Workers were now scared about new work systems. Ranga used to visit different places to identify new possibilities for improving the work culture. In the course of these visits, once he visited a small company located in Southern India. This company had a history of over 100 years. It was considered to be a very good company in that region and it had ZERO employee turnovers. Ranga requested the owners of this company that he wanted to spend a day in this company to understand the processes of this company. He was given permission. Ranga returned back with mixed feelings. He liked the work culture of this company. The workers were so committed and dedicated that he wanted to create the same in his company. Next month, there was annual planning meeting of Infoxerox. Ranga asked each of his regional head to come up with a vision and plan document. Ranga himself prepared a vision plan for the company. He told everyone that he wanted to introduce a cohesive work culture in the company, where each employee considers others as very closely. Ranga shared his experiences also. Members present in the meeting asked Ranga to give an action plan for that. Ranga didn’t know about that. Can you help him in preparing an action plan in steering this company further? Infoxerox was not in red now. It was turning around, but new directions had to be given. You are requested to help Ranga in giving charismatic leadership to this company. Ranga has some characteristics, which you must remember before recommending:

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1. He is always cheerful 2. He is always positive about future 3. When he talks with employees, he gives them detailed description of the future that he wants and he shares that future vividly 4. He shows very high level of confidence on his subordinates ability in achieving objectives 5. His dreams and ideas look impossible - but he has always proved them true. You are also advised to give comments on Ranga's personality and leadership. Do you suggest any change?

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PA W A N ’ S N E W N E W B U S I N E S S P L A N

Pawan completed his PGPSE and wanted to start a business enterprise. He had different ideas in his mind. He came across an old Indian text book about Indian herbs and their medicinal properties. He developed ideas about using those herbs in developing new products. His idea was to introduce a new product, which would be good for health. He was thinking about giving it the shape of a brand. He knew that making a branded product and selling that as a popular brand is not an easy task. He studies many case studies on similar products and evolved different ideas about how he should produce. While going through these ideas, he had 4 options, which were based on 4 studies: 1. Launch the product like a commodity - just like coca cola. Coca cola was also launched as a product sold by druggists initially. It took a long time for coca cola to reach to masses. He was also reminded of Dalda. When Dalda was launched in India - people resisted it. Nobody wanted to use it - and those who used it, didn’t tell others that they were using it. HLL tried to give many advertisements to show the good things of Dalda - but it all failed. Later on HLL changed its advertisement strategy, and it introduced one slogan which worked, the slogan was just emotional tough: the slogan emphasized that Mother can’t be wrong - and mother gives the best to the child. This slogan changed the future of Dalda and now Dalda is a big brand. Pawan was thinking of giving his product a tinkering similar to Coca cola or a Dalda. 2. The second option was to launch it like a medicine. Medicines can’t be advertised directly. They have to be marketed to the doctors directly - who will recommend it the patients. Here the option was to make it not strictly like a medicine. Here his idea was to make it similar to Complain. Complain was initially introduced as a food for soldiers and patients. When soldiers were fighting in 2nd world war, Complain was given to them to help them to fight. Later complain was introduced for elderly persons. Later it was introduced for children and now it is for growing children. Its advertisement also proves it: "I am a complain girl". Pawan was also thinking to make his product similar to the complain strategy. 3. The third strategy was to introduce this product as a generic product. Here Pawan was reminded of great brand aura of TAJ. When Taj group of hotels introduced an efficient, suave, decent, sophisticated lady as brand ambassador for Taj, it became very

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popular. Pawan was also thinking to make a good personality for his product and introduce it as a generic brand. 4. Pawan had 4th idea also. The forth idea was to create a new marketing channel. During his PGPSE program, he had made presentations on terms like viral marketing, network marketing etc. Viral marketing is word of mouth marketing. Network marketing also relies on networking on people. Pawan had an idea about introducing the product using similar strategy. He had seen success of AMWAY succeeding in network marketing. Similarly, he had seen his own institution AFTERSCHOOOL using viral marketing. Now he was not sure about which strategy to use. He was in confusion and wanted your help in evolving his overall marketing strategy. He was ready with the product which was tested out in laboratories. The question was how to position this product in the market? How to introduce this product in the market? Pawan knew that great products have failed in markets - he didn’t want failures - he wanted a sure success and for this the only way was brainstorm and find the best option.

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