This seminar discusses developing a sustainable business model for scaling up a company over time. The first part involves researching challenges that businesses face when expanding, and looking at how an established sustainable company has addressed scaling. The second part focuses on creating an internal engagement strategy to communicate the expansion plan to all stakeholders. It also addresses establishing an ethical stance on bribery and corruption when operating internationally. The learning outcomes are to create a scalable and win-win business model, develop an employee communication strategy, and articulate an ethical approach abroad.

1. Principles of Business
Seminar: A sustainable business model
for growth
Topic Number: 11

2. 2
Overview
Over time as your business expands you will need to consider
how best to scale up your enterprise in a sustainable way.
This seminar is divided into two parts the first is exploratory
in nature where you will spend time on www.startups.co.uk
and www.theguardian.com/sustainable-business.
Your first task is to gain an appreciation for the types of
challenges you and your business model might face when
scaling up. Thereafter, you need to choose an established
business from the website and discuss what you can learn
about their journey that you can use in your business. The
focus should be on creating a win-win business model.
The second half of the seminar will look at how you to create
an engagement and communication strategy to get all your
internal stakeholders from across the business behind the
plan. Finally, you will assess your ethical stance on key issues
relating to bribery and corruption when expanding your
business in a foreign country.

3. 3
Learning outcomes of this seminar
• Develop and demonstrate a robust, scalable business model
that can be deployed in your business
• Evidence how the model creates a win-win situation for all
stakeholders concerned
• Develop an engagement and communication strategy for
internal employees
• Highlight and articulate your businesses ethical stance on key
issues relating to bribery and corruption whilst abroad

4. Agenda for this seminar
Gain an appreciation for the type of issues you may face when scaling
up your business
Choose an established “sustainable” business and discuss what you
can learn from their journey to apply to your own business
Develop an engagement and communication strategy for internal
employees
Highlight the approach you would take to bribery and corruption when
moving your company abroad

5. Structure for the session
You will have
15 minutes to
discuss each
question
We will have a
de-brief at the
end of each 15
minutes to hear
your thoughts
on each area
Feel free to ask
questions but
please do not
have separate
conversations
‘we are all in
this together’!

6. A word from Richard Branson
If somebody offers you an
amazing opportunity but
you are not sure you can do
it, say yes – then learn how
to do it later!

7. Gain an appreciation for
the type of issues you
may face when scaling
up your business

8. Scaling a business from a cottage industry is
challenging! Lets hear from the Founder of
Innocent
View video: http://startups.co.uk/richard-reed-on-scaling-innocent-drinks-video/

9. Issues and challenges with scaling a business
Spend 10 minutes on www.startups.co.uk and come up with 3 key
challenges when scaling a business

10. Business Model Trade-Offs & Considerations
Strategic
Operational Financial
Source: Slack et al, 2012

11. Operational Considerations
Costs/Budg
et
Timing Resource
Source: Slack et al, 2012
Key questions
• Do you speculatively
invest in resources
before you need it?
• Do you pitch for work
that you know you do
not have the
resources for?
• Where do you house
your scaled up
manufacturing
facilities? Store
stock?
The Trade-off Triangle

12. Operational Considerations
To lead or lag demand?

13. Strategic Considerations: Expand where?

14. Financial Considerations
How much
additional funding
do we need?
Do we go for
equity or debt
financing?
How can we
access funding?
On what terms?
Do you have a
suitable business
case?

15. Choose an established
“sustainable” business
and discuss what you
can learn from their
journey to apply to your
own business

16. Lets take a look at solar power in the East & West
Source: Guardian, 2014

17. A growing industry with more investment
Source: Renewables Global Status Report, 2013

18. Yet challenges prevail in the UK
When it comes to domestic market growth, and building a national
solar industry, the UK is very much in the "jury out" category at the
moment. This is partly because of an internal battle of ideas between
solar believers and those who envision the UK as a "gas hub", on the
road to which solar is a distraction that might put off investment in
UK fracking.
Commercial rooftops way to go?
Enormous
vacant,
functionless,
roof space
available
Save
money
by using roof
tops
Big push
by the Dept
of Energy &
Climate
Change
To increase scale…
Influence
government policy
Make it more
accessible to
businesses
Source: Guardian, 2014

19. A greater challenge in India? Frontier Markets
With more than 32,000 villages continue to lack power, the absence
of electrification represents a particular concern. Even those villages
that have grid access, power outages represent a frequent
frustration.
An extensive
product range
Distribution
is key
Market
Understanding
Source: Guardian, 2014

20. Develop an engagement
and communication
strategy for internal
employees

21. Think about the issues with mandatory learning
in organisations
…goes to
everyone…
Exactly the same
message…
…at the same
time…
…in the same
way…
…no wonder.
Illustrations: Wikipedia.org

22. A four stage process
What to say… Who to say it to…
When to say it… What channel to use…
Illustrations: Wikipedia.org

23. A four stage process: What to say?
• Key messages only
• Be concise
• Be grabbing
• Be relevance
• Be human
• Be transparent
Illustrations: Wikipedia.org

24. A four stage process: Who to say it to?
• Know your audience
• Determine what motivates
your audience
• Tailor your message
• A need to know basis
Illustrations: Wikipedia.org

25. A four stage process: When to say it?
Illustrations: Wikipedia.org

26. A four stage process: What channel to use?
Yammer
View video: https://about.yammer.com
• Appropriate channel for
message
• Engagement and
accessibility is key
• Multi-channel approach
• Use tech to your
advantage
• Measure channel metrics

27. Highlight the approach
you would take to
bribery and corruption
when moving your
company abroad

28. Explain the types of Bribery &
Corruption
Corruption occurs where the integrity of a
person, government, or company is
manipulated and compromised for their
own personal gain.
There are two main types of corruption:
Political corruption - the dysfunction of
a political system or institution in which
government officials, political officials or
employees seek illegitimate personal gain
through actions such as bribery, extortion,
cronyism, patronage and embezzlement
Corporate corruption - bribes are
offered to agencies, institutions or
individuals to win a contract
Illustrations: SFO, 2014

29. Definitions of Bribery & Corruption
Here are some definitions on some corruption-related terms that you
may have heard of:
Bribery - giving or receiving something of value to influence a
transaction
Illegal gratuity - giving or receiving something of value after a
transaction is completed, in acknowledgment of some influence over
the transaction
Extortion - demanding a sum of money (or goods) with a threat of
harm (physical or business) if demands are not met
Conflict of interest - where an employee has an economic or
personal interest in a transaction
Kickback - a portion of the value of the contract demanded as a
bribe by an official for securing the contract
Corporate espionage - theft of trade secrets, theft of intellectual
property, or copyright piracy
Commission/fee - used by a UK company or individual to obtain
the services of an agent/agency for assistance in securing a
commercial contract
Illustrations: SFO, 2014

30. Consider the scenarios
• Give a bribe to someone to get your business set up in a
foreign country quicker?
• Offer a free product to someone who can get your shipment
through customs quicker?
• Offer to do someone a favour in your home country if they
return it in theirs?
• Provide a ‘kick-back’ if an individual helps to win a contract
in another country?
• Would you accept a gift from a supplier for giving them a
piece of business?

31. End of Seminar
Note: This recording is for your
personal use only and not for further
distribution or wider review.
© Pearson College 2013