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Case Studies by Frederik Gerner

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Abstract:
The case focuses on the challenges facing Arenga Rainforest Sugar, a non-profit organization in Indonesia, as it re-thinks its business model. The product (rainforest sugar) supports sustainable agriculture, unlike traditional plantation-driven models (for palm oil and rubber). In response to growing demand in developed markets for sustainable food products, senior management is keen to deploy the new business model across all aspects of the business. The case describes the context, current strategy, operations and financials. It allow for a forward-looking analysis (less common than ‘with hindsight’) where students assess the current context and recommend strategies with actionable plans. The multi-disciplinary approach brings in issues related to strategy, building a new supply chain and distribution model, creating new brand and product categories, adopting a results-oriented marketing and pricing model or implementing a sound operational model while supporting rainforest conservation.

Pedagogical Objectives:
This is potentially a “capstone” case for many courses, where students apply the learning from the course to develop recommendations going forward (strategies with actionable plans). For example, at the end of a course on distribution channels, students need to conceptualize a distribution plan that allows the company to capture more value (most of which is currently captured by retailers).

Keywords:
Strategy, Supply Chain, Sustainability, Operations, Marketing, Branding, Business Model Innovation, Cost Structure Analysis, Social Enterprise, Entrepreneurship, Alleviate Poverty, Economic Growth, Responsible Production, Pricing

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