Abstract

The case tells the story of Kiwa, an Ecuadorian company competing in the snacks industry, whose central purpose is to help small farmers in the country get out of poverty and fight climate change through alternative agricultural practices. To do this, it designed a business model that avoids intermediaries and transfers these fees to farmers, who get a higher price for their raw materials. The company exports to 16 countries where retailers or food-processing companies buy its products under private-label agreements, in bulk or under the Kiwa brand. However, private-label and bulk sales are increasing steadily, in detriment of Kiwa products that communicate the social and environmental efforts of the firm to final consumers.

Teaching
Students will learn:
1. The role of purpose in business.
2. Decision tradeoffs between doing well and doing good.
3. International trade and market expansion.
4. Business models that can generate positive change in local communities.
5. Social responsibility from a strategy perspective.
Case number:
A03-23-0006
Author(s):
Tom Hunsaker
Year:
Setting:
Ecuador
Length:
9 pages
Source:
Private/Field