FAB INDIA CASE STUDY

Pre-discussion question

1. What is a "double bottom-line"? What are the conflicting operational

constraints that arise in such a social enterprise (that management faces)?

 A double bottom line is a type of measurement that is concerned with not only the
amount of financial profit or loss that a company sustains within a defined period, but
also the level of positive social impact experienced by the business within that same
time frame. This approach makes it possible to assess the impact that a socially
responsible enterprise is having on both the market in which it operates and the
communities where the business is based. Both public and private sector organizations
can utilize this approach to measure financial profitability considering social impact.

 Conflicting Operational constraints

Raw materials Transportation Marketing

Difficult to predictDelay In delivering from Unique model of owned,
quantity and time of Thaan artisans and designers multi-brand stores, online
coming from weaver web store & e-commerce
Suppliers were spread pan- Opportunity losses due to Local & International
India irregularity marketing expenses
Diverse portfolio ofDiverse portfolio of Different stores are
products products encouraged to order
different stock
Difficult to implement Transport, storage and Standard products across
technologies, processes for shelf-life issues of organic all channels are difficult to
suppliers foods find
Opportunity losses due to
irregularity

 Problems in gaining trust of stakeholders.

 Sometimes must take decisions that seem uneconomical (Fabindia is forced to
accept delayed delivery).
 Growth is dependent on development of their suppliers (Unless Fabindia
suppliers develop their skills and products Fabindia cannot find growth).
 Difficult in differentiating products from others (Fabindia should differentiate
itself from government funded Khadi outlets).
 Creating awareness in consumers and market about their social mission.