IMD-2-0112 © 2006
Strebel, Paul; Steger, Ulrich; Ionescu-Somers, Aileen
AxialPar is an innovative investment corporation with one investor (Pierre Landolt) interested in focusing on agribusiness that is sustainable from an environmental and societal perspective. In spite of the fire and energy that the staff of AxialPar and also Landolt have put into the projects funded by AxialPar; there have been many difficulties involved in rendering the businesses lucrative. Some of those factors are linked to the very fact that Brazil is still quite much a developing country; with the infrastructure and poverty issues that a developing country environment indicates. Nevertheless; neither are the marketplaces prepared for some of the innovative theories presented by the endeavors.
The primary question is how a groundbreaking investment company including AxialPar could be ordered or placed in the future in order to insure success? How can marketplaces and the farmers be better ready to ensure the sustainability of organic produce? Indeed; is it feasible in any way to be trying to set up such companies in a Brazilian context? Learning objective: The case concentrates on the challenges an investment company encounters when attempting to ‘jump start’ four startups in a developing country and run them based on sound social and environmental standards. Participants will come to a better comprehension of the commercial challenges that such initiatives are up against; especially in a developing country context. The ideal governance structure for this kind of initiative will likely be the primary focus of argument around this case study.
Sustainable Agribusiness Investment (A) Breaking New Ground At Axialpar case study solution
Subjects: Sustainability; Agribusiness; Social responsibility; Corporate responsibility; Sustainable development; Latin America
Settings: Brazil; Agribusiness; Start-up; 10 people on staff; 2001-2004
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