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Ten Thousand Villages in Crisis: Can the Fair Trade Pioneer Survive and Flourish in an Economic Downturn?

Dix Mille Villages en péril : le pionnier du commerce équitable peut-il survivre à la crise économique?

Case 9 100 2018 002
Case published in the International Journal of Case Studies in Management, Vol. 16, No. 3
Languages : 
  • French,
  • English
  • Social entrepreneurship,
  • Fair trade,
  • Financial crisis,
  • Restructuring,
  • Sustainability
  • Entrepreneuriat social,
  • Commerce équitable,
  • Crise financière,
  • Restructuration,
  • Développement durable
Year of production : 
2018
Registration date : 
2018-08-28
Teaching notes included : 
Yes

This case examines major challenges faced by Ten Thousand Villages Canada in 2013, in the aftermath of the 2007–08 global financial crisis. Ten Thousand Villages is one of the oldest fair trade organizations in North America, its history stretching back to the sale of crafts from overseas in 1946. The case narrative begins with an overview of Ten Thousand Villages (history, producer partnerships, Canadian operations), then introduces the financial challenges facing the organization in 2013. Told from the perspective of a senior manager who must develop a plan to save the organization from impending bankruptcy by reaching the break-even point within twelve months, the case lends itself to a discussion of how the company can be saved and whether the steps taken by Ten Thousand Villages (as explained in the teaching notes) will ensure its survival. By studying this case, students are expected to gain an in-depth understanding of the real-life challenges faced by social enterprises seeking to balance the pursuit of their social missions with long-term financial sustainability.

Ce cas examine les principaux défis rencontrés par Dix Mille Villages Canada en 2013, à la suite de la crise financière mondiale de 2007-2008. Dix Mille Villages est l’un des plus anciens organismes de commerce équitable d’Amérique du Nord : son histoire remonte à la vente d’artisanat acheté outre-mer en 1946. Le récit propose d’abord un aperçu de Dix Mille Villages (historique, partenariats de producteurs, activités canadiennes), puis les défis financiers que l’organisme affronte en 2013. Présentée du point de vue d’un cadre qui doit éviter la faillite annoncée en planifiant l’atteinte du seuil de rentabilité en douze mois, l’histoire suscite la discussion : comment peut-on sauver l’entreprise, et en quoi les mesures qu’elle applique (expliquées dans ces notes pédagogiques) assureront-elles sa survie? Grâce à ce cas, les étudiants doivent acquérir une compréhension approfondie des défis réels qu’affrontent les entreprises à vocation sociale qui cherchent l’équilibre entre le maintien de leur mission et la viabilité financière.

Primary domain : 
Business ethics  - Sustainable development
Secondary domain : 
Not available
Sectors : 
  • Retail trade
Source : 
HEC Montréal
Type : 
Traditional case (Descriptive or analytical case)
Type of data used in the production of the case : 
Factual data that is not public wherein the identity of the company/person is disclosed
Event location : 
Canada
Year of start of the event : 
2013
Year the event ended : 
Not available
Business size : 
Small- and medium-sized

Social entrepreneurship

Entrepreneuriat social

  • Better understand the challenges facing social enterprises struggling to achieve financial sustainability while pursuing their social mission;
  • Develop decision-making criteria for improving the financial situation of the organization, keeping its social mission in mind;
  • Identify options available to the organization;
  • Analyze the impact of each option on the organization and its stakeholders (e.g., employees, volunteers, suppliers);
  • Evaluate the impact of a real-life decision of a social enterprise on its social mission and financial sustainability.
  • Mieux comprendre les défis qu’affrontent les entreprises sociales qui luttent pour atteindre la viabilité financière et maintenir leur mission sociale;
  • Développer des critères de prise de décision pour améliorer la situation financière de l’organisme, en gardant à l’esprit sa mission sociale;
  • Recenser les options de l’organisme;
  • Analyser l’impact de chaque option sur l’organisme et ses parties prenantes (par ex., employés, bénévoles, fournisseurs);
  • Évaluer l’impact d’une décision prise par une entreprise sociale sur sa mission et sa viabilité financière.
  • Theories of social entrepreneurship
  • Fair trade
  • Stakeholder management
  • Théories s’appliquant à l’entrepreneuriat social;
  • Commerce équitable;
  • Gestion des parties prenantes