Next Generation Business Strategies For The Base Of The Pyramid

This book shares proven, “on-the-ground” insights for building “Base of the Pyramid” businesses that really are sustainable and green, will help alleviate social ills, and can scale to significant size and profitability. Its “second-generation” techniques reflect crucial lessons learned by “BoP” pioneers: lessons that dramatically increase the likelihood of success.

3 extraordinary books show how to build “bottom of the pyramid” businesses that are sustainable, scalable, and profitable! Three remarkable books help you overcome the pitfalls of “bottom of the pyramid” business, learn from the pioneers’ successes and failures, and build “BoP” businesses that are sustainable, scalable, and consistently profitable! In Entrepreneurial Solutions for Prosperity in BoP Markets: Strategies for Business and Economic Transformation, Eric Kacou shows how to escape the “survival trap” that keeps many BoP businesses small, inefficient, and unprofitable. Drawing on his unique on-the-ground experience in Africa’s most challenging business environments, Kacou identifies new business models, operational techniques, and leadership approaches that can help BoP businesses grow rapidly and successfully. In Next Generation Business Strategies for the Base of the Pyramid: New Approaches for Building Mutual Value, Ted London and Stuart L. Hart share proven, “on-the-ground” insights for building “Base of the Pyramid” businesses that really are sustainable and green, really will help alleviate social ills, and really can scale. Finally, in Capitalism at the Crossroads: Next Generation Business Strategies for a Post-Crisis World, Third Edition, Hart offers an up-to-the-minute primer on sustainable business for today’s executives, practical insights into what’s working and what isn’t, and expert insights for crafting and executing your company’s optimal sustainability strategy. From world-renowned leaders in successful bottom-of-the-pyramid business innovation, including Ted London, Stuart L. Hart, and Eric Kacou.

More and more enterprises are seeking to craft winning "base of the pyramid" (BoP) ventures, serving the world's four billion poorest customers while alleviating poverty at the same time. Early first-generation ventures focused primarily on selling products to this massive and growing under-served market. Many of these initiatives did not scale, and some have failed. Crucial lessons have been learned along the way, and innovators are now succeeding with a more sophisticated and nuanced approach to "BoP." These second-generation business strategies have remained invisible to many leaders in the for-profit, non-profit, and development communities--until now. In this book, Ted London, Stuart L. Hart, and nine leading BoP thought and practice leaders show how to apply today's most significant BoP innovations, techniques, and business models. London, Hart, and their contributors go beyond providing low-cost products and extending distribution reach, demonstrating how to promote market development, innovation, and capability creation "with" BoP new customers, not "at" them. Readers will learn how to reconceptualize their opportunities, create sustainable business ecosystems, design new technologies with BoP in mind, and even transform entire sectors through collaborative entrepreneurship. From start to finish, this book shares proven, "on-the-ground" insights for building scalable, profitable businesses that are sustainable, and truly can help alleviate social ills.

"Capitalism at the Crossroads is built on strong theoretical underpinnings and illustrated with many practical examples. The author offers a pioneering roadmap to responsible macroeconomics and corporate growth." -Clayton Christensen, Professor of Business Administration, Harvard Business School and author of The Innovator's Dilemma "I hope this book will be able to influence the thought processes of corporations and motivate them to adapt to forthcoming business realities for the sake of their own long-term existence. Besides business leaders, this is a thought-provoking book for the readers who are looking for solutions to capitalism’s problems." -Muhammad Yunus, Founder and Managing Director, Grameen Bank, Bangladesh and 2007 Nobel Peace Prize recipient "Capitalism at the Crossroads is a practical manifesto for business in the twenty-first century. Professor Stuart L. Hart provides a succinct framework for managers to harmonize concerns for the planet with wealth creation and unambiguously demonstrates the connection between the two. This book represents a turning point in the debate about the emerging role and responsibility of business in society." -C.K. Prahalad, Ross School of Business, University of Michigan, co-author of Competing for the Future and author of The Fortune at the Bottom of the Pyramid "Stuart Hart was there at the beginning. Years ago when the term ‘sustainability’ had not yet reached the business schools, Stuart Hart stood as a beacon glowing in the umbrage. It is clear commerce is the engine of change, design the first signal of human intention, and global capitalism is at the crossroads. Stuart Hart is there again; this time lighting up the intersection." -William McDonough, University of Virginia, co-author of Cradle to Cradle "Professor Hart is on the leading edge of making sustainability an understandable and useful framework for building business value. This book brings together much of his insights developed over the past decade. Through case studies and practical advice, he argues powerfully that unlimited opportunities for profitable business growth will flow to those companies that bring innovative technology and solutions to bear on some of the world’s most intractable social and environmental problems." -Chad Holliday, Chairman and CEO, DuPont "Capitalism at the Crossroads clearly reveals the essence of what sustainability means to today’s business world. Hart’s analysis that businesses must increasingly adopt a business framework based on building sustainable value speaks to the entire sustainability movement’s relevance. Sustainability is more than today’s competitive edge; it is tomorrow’s model for success." -Don Pether, President and CEO, Dofasco Inc. "Stuart Hart has written a book full of big insights painted with bold strokes. He may make you mad. He will certainly make you think." -Jonathan Lash, President, The World Resources Institute "A must-read for every CEO—and every MBA." -John Elkington, Chairman, SustainAbility "This book provides us with a vast array of innovative and practical ideas to accelerate the transformation to global sustainability and the role businesses and corporations will have to play therein. Stuart Hart manages to contribute in an essential way to the growing intellectual capital that addresses this topic. But, beyond that, the book will also prove to be a pioneer in the literature on corporate strategy by adding this new dimension to the current thinking." -Jan Oosterveld, Professor, IESE Business School, Barcelona, Spain Member, Group Management Committee (Ret.), Royal Philips Electronics "Capitalism at the Crossroads captures a disturbing and descriptive picture of the global condition. Dr. Hart constructs a compelling new corporate business model that simultaneously merges the metric of profitability along with societal value and environmental integrity. He challenges the corporate sector to take the lead and to invoke this change so that the benefits of capitalism can be shared with the entire human community worldwide." -Mac Bridger, CEO of Tandus Group "Stuart L. Hart makes a very important contribution to the understanding of how enterprise can help save the world’s environment. Crucial reading." -Hernando de Soto, President of The Institute for Liberty and Democracy and author of The Mystery of Capital "Stuart Hart’s insights into the business sense of sustainability come through compellingly in Capitalism at the Crossroads. Any businessperson interested in the long view will find resonance with his wise reasoning." -Ray Anderson, Founder and Chairman, Interface, Inc. "This stimulating book documents the central role that business will play in humanity’s efforts to develop a sustainable global economy. Professor Hart presents an attractive vision of opportunity for those corporations that develop the new technologies, new business models, and new mental frames that are essential to a sustainable future." -Jeffrey Lehman, Former President of Cornell University "The people of the world are in desperate need of new ideas if global industrial development is ever to result in something other than the rich getting richer and the poor getting poorer, with nature (and potentially all of us) suffering the collateral damage. Few have contributed more to meeting this need over the past decade than Stuart Hart by helping to illuminate the potential role for business and new thinking in business strategy in the journey ahead. Capitalism at the Crossroads challenges, provokes, and no doubt will stimulate many debates—which is exactly what is needed." -Peter Senge, Massachusetts Institute of Technology, Chairperson of the Society for Organizational Learning, and author of The Fifth Discipline: The Art and Practice of The Learning Organization New Foreword by Al Gore Brand-New Second Edition, Completely Revised with: Up-to-the-minute trends and lessons learned New and updated case studies The latest corporate responses to climate change, energy, and terrorism Global capitalism stands at a crossroads-facing terrorism, environmental destruction, and anti-globalization backlash. Today's global companies are at a crossroads, too-searching desperately for new sources of profitable growth. Stuart L. Hart's Capitalism at the Crossroads, Second Edition is about solving both of those problems at the same time. It's about igniting new growth by creating sustainable products that solve urgent societal problems. It's about using new technology to deliver profitable solutions that reduce poverty and protect the environment. It's about becoming truly indigenous to all your markets, and avoiding the pitfalls of first-generation "greening" and "sustainability" strategies. Hart has thoroughly revised this seminal book with new case studies, trends, and lessons learned-including the latest experiences of leaders like GE and Wal-Mart. You'll find new insights from the pioneering BoP Protocol initiative, in which multinationals are incubating new businesses in income-poor communities. You'll also discover creative new ways in which corporations are responding to global warming and terrorism. More than ever, this book points the way toward a capitalism that's more inclusive, more welcome, and far more successful-for both companies and communities, worldwide. Paths to profitable sustainability: Lessons from GE and Wal-Mart Shattering the "trade-off" myth New commercial strategies for serving the "base of the pyramid" What enterprises have learned about doing business in income-poor regions Becoming indigenous-for real, for good Codiscovering new opportunities, cocreating new businesses with the poor Learning from leaders: 20+ new and updated case studies Best practices from DuPont, HP, Unilever, SC Johnson, Tata, P&G, Cemex, and more About the Author xii Acknowledgments xiii Foreword: Al Gore, Former Vice President of the U.S. xxiv Foreword: Fisk Johnson, Chairman and CEO, S.C. Johnson & Son, Inc. xxvii Prologue: Capitalism at the Crossroads xxxi PART ONE: MAPPING THE TERRAIN Chapter 1: From Obligation to Opportunity 3 Chapter 2: Worlds in Collision 31 Chapter 3: The Sustainable Value Portfolio 59 PART TWO: BEYOND GREENING Chapter 4: Creative Destruction and Sustainability 87 Chapter 5: The Great Leap Downward 111 Chapter 6: Reaching the Base of the Pyramid 139 PART THREE: BECOMING INDIGENOUS Chapter 7: Broadening the Corporate Bandwidth 169 Chapter 8: Developing Native Capability 193 Chapter 9: Toward a Sustainable Global Enterprise 223 Epilogue 249 Index 254

For well over 4 billion people – approximately 60% of all humanity – annual income is less than $1,500. The term "Base of the Pyramid" was first coined by Stuart L. Hart and C.K. Prahalad in 2002 and has become synonymous with both the method by which we can more effectively address poverty and the opportunity that exists in a multi-trillion-dollar market. A whole new lexicon has emerged to describe this phenomenon, including new buzzwords and catch phrases like "inclusive business", "opportunities for the majority", "sustainable livelihoods", "pro-poor business" and “social business”, and thousands of new businesses, institutions and investment funds have been set up.In this ground-breaking new book, Stuart L. Hart and Fernando Casado Cañeque have worked with members of the BoP Global Network to shake the tree, look objectively at what has happened since 2002, highlight why earlier applications of BoP haven’t worked and propose new objectives and ways of working to formulate more sustainable solutions. The book challenges the reader and organizations to think about the mindset and purpose across whole organizations, open innovation rather than simply co-creation, and a complete review of the innovation ecosystem. Through this book, practitioners will gain a clearer insight into which business models can work within different communities to ensure a sustainable transition to improved local economies. Equally, the book is a must-read for researchers and students in the fields of entrepreneurship, innovation, sustainable development and environmental management.

For nearly two decades, emerging markets have been a primary source of growth in the world economy. They have become more international and compete more extensively with companies in developed countries. For these reasons, an understanding of managing businesses in emerging markets is a fundamental skill for competing in the twenty-first century. The Oxford Handbook of Management in Emerging Markets identifies key elements of the business systems and competition in emerging markets around the world, and then looks at competitive strategies of companies going into and coming out of these countries. While business is business, the handbook's focus is on how management differs depending on the different environmental characteristics in emerging markets, such as the role of the government, the potential weakness of infrastructure, and the skill and innovation bases available locally in emerging markets, among other elements. The volume is organized into five sections. The first section establishes conceptual perspectives for exploring the current business environment in emerging markets. The second section focuses on questions surrounding governance and markets. The third explores multinational enterprises (MNEs) in emerging economies, while the fourth section looks at local firms and emerging market MNEs. The fifth and final section looks at management in emerging markets within specific countries and regions around the world. This handbook is a vital resource for scholars, students, and managers looking to expand into emerging economies by providing comprehensive analyses of functional areas from human resources to finance to marketing, and on issues such as family businesses, state-owned enterprises, and the bottom of the pyramid.