III. Opportunities and challenges/ Case study Carlsberg and the Green Fiber Bottle

Question 1

Internal Structure

Answer 1

• How organizational activities are divided in distinctive tasks
• How coordination is achieved

Question 2

Differentiation vs. Integration

Answer 2

• Differentiation = Favors specialization/ Requires more coordination/ Tasks are managed by different business unit/ Subunits in charge of either social or commercial tasks
• Integration = Doesn’t help specialization/ Requires less coordination/ Tasks are managed by the same business unit/ Subunits in charge of both social and commercial tasks
• Employees can be commercial, social or hybrid in their skills, competencies and priorities

Question 3

The Role of Hybrid Invididuals

Answer 3

• They understand and recognize that conflicting logics are contradictory but interrelated
• Adopt mental frames and processes to simultaneously enact contradictory goals and objectives
• Engage in integrative complex, recognize distinct value of multiple perspectives and integrating these multiple perspectives
• Capable to build high quality relationships with diverse groups of people
• They are difficult to find, and almost impossible to train

Question 4

Structures and People general

Answer 4

• New social organization must focus on increasing awareness among employees about different tensions (Create vs. capture value)
• Must include differentiated processes to force specialization and integrated processes to coordinate within the department
• But (!) ultimate goal is making firms more efficient, innovative and effective

Question 5

Structures and People

Answer 5

• Processes = Physical and Virtual space of negotiation/ KPIs
• Differentiated Structure with integrated processes -> Increases awareness of value of each logic/ encourage creative solution -> Incompatible logics maintained in productive way (Pro)
• Differentiated Structure with differentiated processes -> Reinforce differences among members -> Unbalanced belonging conflicts
• Integrated Structure with differentiated processes -> Increases awareness of value of each logic/ encourage creative solution -> Incompatible logics maintained in productive way (Pro)
• Integrated Structure with Integrated processes ->. Difficult for employees to recognize value and role of each logic -> Extreme risk of mission drift (Con)

Question 6

Mission drift

Answer 6

• Definition = SE prioritizes financial objectives over social value creation/ Deviating from its original socially oriented mission
• Give up to social bottom line (foundation)
• Use social bottom line (foundation) for commercial objectives
• Change in target population or in addressed social issue

Question 7

Carlsberg case study general

Answer 7

• Paper bottle instead of plastic -> Prototype for a new beer
• Carlsberg -> Necessity of cooperation to achieve sustainability goals
• Goal for Green Fiber Bottle is to be financially and environmentally competitive with returnable glass bottles
• Report identifies 4 sustainability priorities: energy and carbon, water, responsible drinking, and health and safety (p. 5)
• 3 P’s (profit, purpose, planet)
• No interest in VI -> Outsourcing of packaging = Need of right partners

Question 8

Is there a social entrepreneurial opportunity for Carlsberg?

Answer 8

• Yes = 1. Aligned with strategy/ 2. Customer orientation/ 3. Institutional support/ 4. Universities/ 5. Market opportunities (differentiation, reputation)
• No = 1. Tech expenses: WTP of customers?/ 2. Tech issues = Sustainability and time issues/ 3. Customer experience (drink out of plastic bottles)

Question 9

Social Entrepreneurial Opportunities- Social Value Potential

Answer 9

• Strategic alignment high potential -> Social value creation is aligned with org. mission
• Strategic alignment low potential -> Social value creation is misaligned with org. mission
• Achievable outcomes high potential -> Products can induce significant change in target population behavior and conditions
• Achievable outcomes low potential -> Products can induce only minimal change of target population behavior and conditions
• Potential for partnerships high potential -> Possible Partnerships that have a synergistic impact
• Potential for partnerships low potential -> Difficult to find Partnerships that have a synergistic impact

Question 10

Social Entrepreneurial Opportunities- Market Potential

Answer 10

• Customers interest high evidence -> Customers interested in product/services
• Customers interest low evidence -> Customers not interested
• Donors interest high evidence -> Interested in grand making or government contracts
• Donors interest low evidence -> Not Interested in grand making or government contracts
• Market competition high evidence -> Open market with little competition
• Market competition low evidence -> Highly competitive market

Question 11

Social Entrepreneurial Opportunities- Sustainability Potential

Answer 11

• Org. Capabilities high -> Org has skills, capabilities
• Org. Capabilities low -> Org has no skills, capabilities
• Resources high -> Resources easily accessible
• Resources low -> No funding or staff time available
• Institutional Environment high -> Regulation and infrastructures supportive
• Institutional Environment high -> Regulation and infrastructures not supportive

Question 12

Types of barriers

Answer 12

• Economic barriers = Capital requirements, Cost disadvantages, Switching costs, Barriers to distribution channels
• Social barriers = Prevent entrepreneurs using social network of relationships to their advantage
• Institutional barriers = Prevent entrepreneurs from knowing the rules, norms and values that contribute to a market
• Social Innovations = Are performed in context of “institutional voids” and have to define the “rules of the game”

Question 13

Difference between open and traditional innovation

Answer 13

• Open Innovation = You get inputs from outside
• Closed Innovation = Focuses on internal R&D
• Advantages Open Innovation = 1. Market entry/ 2. Diversification of investment/ 3. Risk management/ 4. Specialization
• Disadvantages Open Innovation = 1. No first mover advantage/ 2. Coordination costs/ 3. Risk of free riding/ 4. Resource depandance
• Advantages Closed Innovation = 1. Control of the process/ 2. Limited dependence from others/ 3. No risks of leak/ 4. Routinized procedures
• Disadvantages Closed
  Innovation = 1. Not all the knowledge and technology available/ 2. Huge investments/ 3. Risks concentrated on single innovator/ 4. Risks of free riding

Question 14

New bottle from Carlsberg value created by partnerships

Answer 14

• Carlsberg and DTU = Give -> Skills/ Gain -> 1. Social Impact 2. Reputation 3. Research 4. Data 5. Financial & People
• Carlsberg and Billerudkorshas = Gain -> 1. Knowledge 2. Technology
• Carlsberg and Carlsberg = Give -> 1. Market 2. Financial Resources/ Gain -> 1. Purpose 2. Risk diversification 3. Knowledge 4. Business Model
• Carlsberg and Ecopac = Give -> 1. Expertise 2. Knowledge/ Gain -> Innovation
• Billerudkorsnas and Ecopax = Give and Gain -> 1. Knowledge 2. Financial Resources 3. Market opportunities