Overview

For consumers at the top of the socioeconomic pyramid, traditionally served by business entities with rules and regulations set by governments, the process of creating value for customers and shareholders are well defined by the rules of how firms operate in free markets. That is not the case for customer segments in the middle and lower parts of the socio-economic pyramid. The alignment of financial viability and positive social impact is harder to orchestrate, but nonetheless achievable. Examples of enterprises focusing on the base of the pyramid achieving both social value and commercial rates of return are beginning to shape the imagination of the business community. Similarly new age nonprofits and fund managers have come up with innovative ways of achieving social value without compromising on long term financial sustainability of the enterprise. The course addresses these issues by examining enterprises that focus on serving low-income sectors from principally two perspectives: First, we will look at businesses providing products and services, such as health, energy, water, financial access, etc., targeted to low income customers. Here we will examine best practices in blending social and commercial goals, including the idea of corporate social responsibility (CSR) and CSV (creating shared value). The second perspective will explore how purpose driven (commercial and social) enterprises and entrepreneurs attempt to solve market failures and attempt to strive for systems change. Two thirds of the cases in the course are from Africa, Asia and Latin America, and a third from the U.S.

Target Audience

This is a General Management course, offered in conjunction with Marketing, aimed at potential managers, entrepreneurs and investment professionals, who are interested in addressing the needs of low-income customers. The target customer segment, the course focuses on is roughly 5 billion of the world’s 7.7 billion population (and roughly 50 million in the US). Since low-income populations represent the largest components of developing economies, this course can also serve to bring context to those aspiring to seek and work in emerging country environments, regardless of which sector they choose to work in. For those focused on careers in developed markets, this course will provide the background on how new age philanthropy is seeking to bring market innovations to address the needs of those who have been left behind by the social and economic growth experienced by those at the top of the income pyramid.