CHASING PURE PROFITS? CASE STUDY SOLUTION
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SYNOPSIS
When they are posed with two intriguing offers on the fund-raising television show Shark Tank India, the co-
founders of Menstrupedia Technologies Pvt. Ltd. (Menstrupedia), Aditi Gupta and Tuhin Paul, are faced with a
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tough decision. Should they forgo the social brand they have built over several years to pursue the seemingly
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smart business decision of becoming a sanitary napkin producer, or should they scale up their comic business
despite so many competitors in the menstrual awareness landscape, or should they do both? Menstrupedia Comic
is an educational comic book about menstruation for adolescents created by Gupta and Paul in 2009. Its aim is
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to shatter deep-rooted, widespread menstruation myths. Although Menstrupedia has started out as a comic book
producer, the company’s social impact has been enormous, with Gupta having been recognized for her social
outreach efforts by organizations such as Forbes Media limited liability company and British Broadcasting
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Corporation (BBC). By 2022, the co-founders seek to grow their impact, and the need to scale up Menstrupedia
propels them to appear on Shark Tank India. Two “Sharks” (members of a panel of potential investors) each
offer them a different avenue for growth. The first Shark is in agreement with the co-founders’ vision of social
change and growth, while the other suggests that they diversify their business by manufacturing and selling
sanitary napkins, an immensely profitable endeavour, while using their comics as a complementary product.
OBJECTIVES
• Discuss the role of compassion and related emotions in the creation of a social enterprise.
• Discuss and seek solutions to the competing tensions between a socially oriented and business-oriented
logic for a social enterprise using the concept of social hybrids.
The Case Solution Starts From page 5
,ASSIGNMENT QUESTIONS
1. Discuss the role of compassion in the lives of Gupta and Paul. How has compassion led to the creation
of Menstrupedia?
2. From the perspective of social business hybrids, evaluate the strategic choices that have been posed
by the Sharks on Shark Tank India, and propose the best course of action for Gupta and Paul to take
with Menstrupedia on the basis of the following prompts:
a. Discuss the pros and cons of each of the strategic choices posed by the Sharks and which course
of action you would recommend the co-founders take.
b. Based on your analysis in response to Assignment Question 2a and the action you have
recommended the co-founders take, discuss whether the type, timing, and scope of diversification
of Menstrupedia into a sanitary napkin brand is appropriate.
3. Comment on Menstrupedia’s marketing strategies. Given that the company has taken eight years to
cross the milestone of US$150,000 in turnover, do you think Gupta and Paul have done enough to
market and grow the company and boost sales of the comic?
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The Case Solution Starts From page 5
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2. From the perspective of social business hybrids, evaluate the strategic choices that have been
posed by the Sharks on Shark Tank India, and propose the best course of action for Gupta and
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Paul to take with Menstrupedia on the basis of the following prompts.
a. Discuss the pros and cons of each the strategic choices that have been posed by the Sharks
and discuss which course of action you would recommend the co-founders take.
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This case explains the concepts behind firms competing based on either a socially oriented or business-
oriented logic, or both. It qualifies as essential reading since it discusses the concept of a social business
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hybrid—that is, a socially oriented logic and business-oriented logic can coexist despite being in
competition with each other. The case discusses how hybridity can be a source of competitive advantage
rather than disadvantage, but may create obstacles in paving the way for the firm’s growth. This assignment
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question concludes with the solution of diversification, which helps social business hybrids create growth,
while maintaining hybridity and overcoming of negative demand-side externalities.
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is crucial to introduce this term at the onset of the discussion.
Social business hybrids, i.e., firms with a social mission and commercial logic, can prosper because
they create synergies between social values and commercial goals, such that they mutually reinforce
each other. However, coexistence of profit and social logics requires an accurate synchronization
between two different logics that must permeate the firm’s activities, decisions, and policies.5
The existing literature on organization theory describes the results of combining multiple types of logic
under one organizational roof. On the one hand, combining different types of logic may result in innovation,
whereas, on the other, the combinations can represent an inherent thematical contradiction. One of the most
significant obstacles in combining different types of logic is the prevalence of one type of logic over the
The Case Solution Starts From page 5
, EXHIBIT -1: FINANCIAL COMPONENTS INVOLVED IN SETTING UP A SMALL MANUFACTURING
UNIT TO PRODUCE SANITARY NAPKINS
Financial component Related activity Amount of money/time
Small-scale production using
$14,000–$18,500
Cost of setting up manufacturing semiautomatic machines
unit, including price of machinery and
building initial infrastructure Large-scale automatic production
line (or scaling up the sanitary napkin
$400,000–$1,220,000
business)
Manufacturing and selling sanitary
Expected profit napkins $9,000–$10,000
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Manufacturing and selling sanitary Approx. two years
ROI time
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napkins
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The Case Solution Starts From page 5