1. Group 13
Harsh Vardhan, 1211342
Gaurav Singh Dharmshaktu, 1211185
11th November 2013
Submitted to Prof. P. D. Jose
Corporate Strategy and the Environment
Term V, PGP 2012-2014
Indian Institute of Management, Bangalore
A refreshingly different “ethical” product

2. The Like-For-Like Business Model
Duncan Goose’s innovative model leverages ethical appeal to channel wealth between markets.
Business Model Issues & Challenges Business Expansion Recommendations Appendix
Like-For-Like Business Model Abstraction
Plowback Ratio Profit
Product Markets
Wealth MarketsNeed Markets
Project Focus Revenue Drivers
Business Model Details
 Establish relationships
across the value chain:
Sourcing, Manufacturing,
Marketing & Distribution.
 Partner with NGOs in the
need market and leverage
their expertise in creating
products or solutions.
Value Chain
Partnerships
Business Partners
Investment
NGO Partners
Causes or Needs
 Retail sale of the product
 Preferred sale contracts
 CSR initiatives of firms
Likeness or Synonymy
Project Assessment Cost Drivers
Key Success Factors
 Production and Distribution
 Non pro bono employees
 Marketing and advertising
spend in commodity markets
 Choice of Geography
 Choice of NGO partners
 Product-Need synonymy
 Monitoring of NGO work
 Defining key metrics to
measure performance
 Investment efficiency
 The model strategically chooses, manufactures and sells a product in a developed market, with a key differentiation that a
certain percentage of the profit is channeled into solving a resonating problem in an underdeveloped market or geography.
 Key NGO partners with requisite expertise receive the investments and are responsible for developing and
implementing solutions for the targeted problem. In case of ONE water, this was solving drinking water crises in Africa.
 Business & NGO Partnerships: Partnerships with businesses throughout the value chain is cardinal. With Radnor’s
manufacturing & operational support and Roundabout’s expertise, ONE was able to create a footing in a crowded market
 Low Costs: By keeping low costs, products can be sold at thin margins, subsequently leading to a larger market share.

3. Present Issues & Challenges before ONE Water
Business model inconsistencies & scalability issues pose a significant growth challenge.
ModelInconsistencies
Tactics to address them
 Monitoring NGO Partners: Global Ethics
doesn’t have a system in place to monitor how
the NGO’s carry out their work and whether
the capital infused by ONE is indeed efficient.
 Performance Measurement: The model lacks
the means to quantify the quality and amount
of work done at each process level. This also
leads to inefficient resource utilization.
 Threat of Backward & Forward Integration:
What is stopping Roundabout from selling its
own brand of water? What is stopping Radnor
from partnering with an NGO on its own?
 Pro Bono Volunteer Model: The current
volunteer model is highly unsustainable in the
longer run. Stakeholders invest time & money
but get low or even nil returns. The
stakeholders’ ability to volunteer can change
overnight in face of a poor bottom-line
performance or worse a business crisis.
 ONE needs to implement business purpose
restructuring in the need market in order to be
able to monitor the work done by NGOs. Funds
need to be allocated based on efficiency.
 ONE will need to develop key performance
metrics (such as no. of pumps installed or no.
of people benefited) and report it on a weekly
or monthly basis to all stakeholders involved.
 Stellar brand value, recognition from customers
and communication of accomplishments will help
ONE create a loyal customer base, thwarting
backward & forward integrations in the chain.
 ONE needs to move away from relying on
charity work and focus on building an
organization with contractual business & NGO
partnerships. To achieve robustness ONE will
also have to do away with the policy of
plowing back 100% of profits. With a lower
plowback, ONE can acquire for-profit partners.
Business Model Issues & Challenges Recommendations Appendix
Issues at hand
Business ExpansionBusiness Model Issues & Challenges Business Expansion Recommendations Appendix

4. ScaleRelatedissues
 Ability of Partners & NGOs to Scale up: With
ONE’s rapid growth, the ability of partners,
whether Radnor or Roundabout, to increase
their capacities is a major concern for ONE.
 Cost Management: Growing business will
increase average costs in the form of increasing
salaries, more investment in infrastructure,
marketing & advertising expenditure, etc.
 Availability of the Product: The presence of
the product on retail shelves is all-important.
While the consumer might be willing to make
the ethical choice, product availability is critical.
 Differentiation: Apart from an ethical
appeal, what differentiates ONE water? There
are many imitators in the market who are
interested in social causes. So how can Global
Ethics make a unique offering or a unique
value proposition to its customers?
 Diversify the set of value chain partners. By
creating a pool of business partners & NGO
partners, ONE will be able to match its growth or
lack thereof by accessing the pool on-demand.
 ONE needs to rethink its pricing policy for
products. A minimum margin needs to be
defined. Targeting different segments of the
market will also help improve overall margins.
 Build newer partnerships leveraging ONE’s
stellar brand image and target strong
distribution network companies that are
interested in investing in CSR activities.
 ONE needs to significantly increase its
advertising spend on communicating its
unique ideology. It also needs to expand its
product line, cutting into other segments
related to water, such as juices, flavored water,
etc.
Business Model Issues & Challenges Business Expansion Recommendations Appendix
ThreatofImitators&Competition
Present Issues & Challenges before ONE Water
Business model inconsistencies & scalability issues pose a significant growth challenge.
Tactics to address themIssues at hand

5. Business Expansion and Model Improvements
Partnership development and professional management are critical for sustainable growth.
Partnership
Development
Business Model Issues & Challenges Business Expansion Recommendations AppendixBusiness
Expansion
Professional
Management
Product
Pricing
 Business Partnerships: To expand market share, Global Ethics should partner with
hypermarkets, establish sales outlets at Railway & Bus stations & enter into contracts with
airport authorities and sports complexes. Similarly, ONE should acquire a pool of bottled water
manufacturers, marketers and distributers whose CSR objectives resonate with Global Ethics.
 NGO Partnerships: With multiple NGOs, ONE can look at alternative solutions simultaneously.
 Geographical Expansion: Global Ethics can target wealth markets other than UK, such as other
European countries and United States. ONE will need new business partners in those
countries. Similarly, ONE can also look beyond Africa as its need market (Ex: Middle East, Asia).
 Product-Line Expansion: ONE can look beyond bottled water as a product. Other product-
problem tuples could be (Condoms, HIV/AIDS) or (Credit Cards, Micro Finance), etc.
 Full-Time Employees & For-Profit Partners: The best talent in the market might not be willing
to work for free. As ONE grows it’ll need professional management and dedicated employees.
Similarly, the most efficient business partners may have a significant profit objective.
 Reduce Plowback Ratio: ONE needs to invest in growth. This investment can be raised by
lowering the plowback ratio, which currently stands at a whopping 100%.
 Conventional Product Pricing: A flexible pricing model not only leaves ONE at the mercy of
buyers, but also drives away those who are more accustomed to conventional pricing systems.
ONE needs to establish a pricing structure that allows a pre-decided charity margin,
wherefrom negotiations with buyers can start from.

6. •To manage impending growth, ONE needs to acquire a pool of partners that can scale appropriately
Create a pool of business partners across sourcing, manufacturing, marketing & distribution functions
•Apart from being able to handle scale, multiple NGO partners will also enable ONE to look at more
than one solution to the target problem. Ex: ONE could work with NGOs specializing in water reuse.
Partner with multiple NGOs, with different interest or expertise areas, in the need markets
• With a proven concept, consider its application to other product-problem tuples: (Condoms,
HIV/AIDS), (Credit Card, Micro Finance), (Bread, Wheat Grain), (Milk, Cattle/Dairy), etc.
• Tap into other wealth markets where the ethical appeal of the product will work. Ex: United States.
Expand business horizontally (geographically) as well as vertically (across product-lines)
• ONE needs to spend money for growth. This money can be raised from the total profit ONE makes.
• To reduce the risk of non-performance of partners, contract with for-profit institutions as well.
Reduce the plowback ratio & build a professional organization with for-profit employees and partners
• The original intention behind the name-your-price strategy was to onboard as many buyers as
possible. However, now that the brand can sell itself, ONE should attach minimum margins in all
pricing negotiations. This will also help attract buyers who prefer conventional pricing.
Now with selling power, ignore pricing flexibility and demand greater margins from buyers
Summary of Recommended Course of Actions
While ONEneedsamajoroverhaul toprepare forgrowth, partnerships, pricing&professionalism arekey.
Business Model Issues & Challenges Business Expansion Recommendations Appendix

7. Option Analysis Additionality Assessment Portfolio Analysis Recommendations Appendix
 Is the non-profit nature of ONE sustainable in the long-term? Is doing-good a good enough motive for partners to stick?
 Should ONE try to acquire its own manufacturing capabilities and free itself from its dependence on partners?
 Should ONE attempt to back-integrate and establish its own NGO arm to carry out its work in need markets?
Open Questions
Peeking into ONE’s Future (2007-2013)
 ONE diversified its product-line by entering the flavored water & fruit juice segments.
 ONE has also started selling eggs, kitchen wrapping foil and toilet tissue papers.
 While focus has remained in Africa, ONE has expanded into Australia as well (working for the aboriginals).
 On 2nd Sep. 2013 ONE Water became the exclusive bottled water sold in Starbucks stores in the UK.
 ONE sponsors not just a Rugby club (Saracens), but also a full blown Rugby championship (World Club 7s).
 ONE defined its criteria of choosing need markets as those where 30% of the population lives below the extreme poverty
line – less than $1.25 (PPP) per day.
 Unsurprisingly, imitators emerged in hordes, ranging from ‘O.N.E Water’ to ‘World One Water’. However, the ONE
brand has remained robust.
Appendix Items
Collection of due diligence questions, observations and articles.
Miscellaneous Articles
 Duncan Goose interviewed by Juliet Harrison in 2011 - http://www.emeraldinsight.com/journals.htm?articleid=1923653
(paper accessible from IIM Bangalore)
 ONE’s current Product Line - http://onedifference.org/one-drinks/ & http://onedifference.org/other-ones/
 Complete set of projects in progress in Africa - http://onedifference.org/projects/
 ONE Water Australia - http://www.doonegoodthing.com.au/one-water
 ONE’s Newsfeed - http://onedifference.org/news
Business Model Issues & Challenges Business Expansion Recommendations Appendix