Orango Organics (OO) is a privately owned manufacturer of organic fruit snacks. OO sells mainly through independent health-food shops in one country. Sales have increased steadily, and several supermarket chains have asked OO to supply them nationally. To meet the supermarket orders, OO would need to rent a larger factory, buy automated packaging equipment and recruit middle managers. OO’s founder, Laila, believes growth would improve OO’s survival chances and increase brand recognition. However, some employees are worried that OO’s informal culture and careful quality checks would be lost. Local fruit suppliers are also concerned that OO may switch to cheaper national suppliers if output increases.

Kite & Needle (KN) is a small clothing repair and alteration business in a busy tourist city. KN has built a strong reputation for high-quality, personalised service and repairing expensive garments that other businesses refuse to handle. The owner, Tomas, has been offered investment from a private investor to open six new branches within two years. The investor expects KN to standardise its services, use cheaper rented premises and employ less experienced staff trained by Tomas. Tomas is tempted because several low-price clothing repair chains are entering the city. However, he values direct contact with customers and wants KN to reduce textile waste by repairing garments carefully rather than processing high volumes quickly.

CoastLine Paddleboards (CP) manufactures environmentally friendly paddleboards from recycled plastic. CP sells mainly to independent coastal sports shops. Demand has increased after several social media reviews praised CP's durability and sustainable materials. The operations director wants CP to grow internally by buying automated moulding equipment and opening two CP-owned showrooms. The finance director is concerned that CP may become less flexible and that quality problems may increase if output rises too quickly.

Table 1 shows CP's current annual data and forecast annual data if the internal growth plan is implemented.

FlexiFit Apparel (FA) is a small private limited company that designs adaptive clothing for wheelchair users and people with limited hand movement. FA has built a loyal niche customer base because it offers personalised fittings and high-quality materials. A national online marketplace has offered to promote FA's products if FA increases output and standardises some designs. The founder is unsure whether FA should accept the growth opportunity or deliberately remain small.

Table 1 shows FA's current annual data and forecast annual data if it accepts the online marketplace offer.

PulsePark (PP) operates three indoor activity centres offering climbing walls, fitness classes and children’s parties. PP’s directors want to expand into a neighbouring country where indoor leisure demand is growing. They are considering two external growth methods. Option A is a joint venture with ActiveZone (AZ), a local leisure business with good knowledge of the market and relationships with schools. PP and AZ would create a new jointly owned business to open activity centres. Option B is franchising: PP would allow independent operators in the neighbouring country to use the PulsePark brand and operating system in return for fees and royalties. Some directors favour franchising because it would require less capital from PP. Others worry that poor service by franchisees could damage PP’s brand. AZ’s managers also want significant influence over pricing and marketing in any joint venture.

Nexora Batteries (NB) manufactures battery packs for electric buses. Governments are introducing stricter rules requiring battery producers to recycle a higher proportion of used batteries. NB has limited recycling expertise. It is considering two external growth options:

• Option A: acquire ReVolt Loop, a specialist battery-recycling business.
• Option B: form a joint venture with TerraMetals, a large metals processor, to build and operate a new recycling facility.

NB's managers want a method that increases recycling capacity quickly but does not damage NB's reputation for safety and reliability.

Table 1 shows forecast data for Option A and Option B. The stated payback periods are calculated using the listed initial investment and forecast annual net cash inflow only. The integration/coordination costs are separate costs and are not included in the stated initial investments or payback calculations.

ReCircle Kitchens (RK) – a social enterprise

Read the resources and answer the questions that follow.

Resource 1 — Background

ReCircle Kitchens (RK) is a social enterprise based in one city. It designs and installs modular kitchen units for low-income families using reclaimed wood and recycled fittings. RK also trains unemployed young adults in carpentry, installation and customer service. Its social objectives are to reduce furniture waste, provide affordable kitchens and create skilled employment.

Demand for RK's kitchens has grown rapidly after local media coverage. RK currently operates one workshop and uses a small team of trainers. The founder, Anya, wants RK to grow beyond its home city, but she is concerned that expansion may reduce quality and weaken the social mission.

Resource 2 — Selected operational and financial information for RK

The data show current output, average cost per kitchen unit, waiting times, training capacity, forecast costs for a second workshop, and expected franchising fees and royalties.

Resource 3 — Growth options being considered by RK

• Option A: internal growth by opening a second RK-owned workshop in another city.
• Option B: franchising the RK brand and operating model to local community organizations.
• Option C: a strategic alliance with a national DIY retailer that would promote RK kitchens and provide discounted reclaimed materials.

Resource 4 — Social-media statistic

RK has 185 000 followers on social media. A recent post showing a family receiving an affordable recycled kitchen was shared 42 000 times and generated 710 enquiries in one week.

Resource 5 — Quotation from Anya, founder of RK

“Growth would allow us to train many more young people, but if we lose control over quality or allow partners to use cheaper non-recycled materials, RK will become just another kitchen business.”

BrightSteps Mobility (BSM) – a social enterprise

Read the resources and answer the questions that follow.

Resource 1 — Background

BrightSteps Mobility (BSM) is a social enterprise that refurbishes donated wheelchairs, walkers and mobility scooters and sells or rents them at affordable prices to people with low incomes. BSM employs technicians with disabilities and offers apprenticeships in repair skills. It currently operates from one workshop near a hospital cluster.

BSM has been invited by several regional health charities to provide services in three additional regions. The directors disagree about whether BSM should expand nationally or deliberately remain small to protect its personalized service.

Resource 2 — Selected information on BSM's current position and possible national expansion

The data show current and forecast demand, average repair cost, staff training time, manager workload, delivery costs, workshop rent and expected grants in different regions.

Resource 3 — Industry context

A growing cluster of medical-device repair businesses has developed near BSM's current workshop. This cluster provides access to specialist suppliers and trained workers. However, in regions where similar repair businesses have expanded quickly, wages for qualified technicians and rents for accessible workshops have increased.

Resource 4 — Social-media statistic

A video of a BSM apprentice explaining how refurbishment “gives people mobility and gives technicians independence” received 1.4 million views and led to 2 600 equipment donation offers.

Resource 5 — Quotation from a long-term customer

“BSM is not just cheaper. They know my needs personally. If they become a national chain, I worry the service will become slower and less human.”

SolarSip Water (SSW) – a social enterprise

Read the resources and answer the questions that follow.

Resource 1 — Background

SolarSip Water (SSW) is a social enterprise that installs solar-powered drinking-water refill kiosks in coastal towns. The kiosks reduce single-use plastic bottles and provide free water to schoolchildren, while tourists and local businesses pay a small refill fee. SSW reinvests surpluses into water-quality education programmes.

SSW operates eight kiosks in two towns. Several coastal councils have asked SSW to expand because plastic waste is damaging beaches. SSW's directors are considering three different growth methods.

Resource 2 — Selected information on SSW's current performance and the three growth methods

The data show kiosk installation cost, forecast annual refill revenue, maintenance costs, expected reduction in plastic bottles, number of schools reached, and management time required.

Resource 3 — Growth methods being considered by SSW

• Option A: internal growth by installing and managing SSW-owned kiosks in six more coastal towns.
• Option B: a joint venture with BlueBay Recycling Cooperative to create a new organization that installs kiosks and collects plastic waste.
• Option C: a strategic alliance with CoastMart, a large convenience-store chain, which would host SSW kiosks outside its stores and promote refills to customers.

Resource 4 — Social-media statistic

SSW's “Refill before landfill” campaign has 96 000 followers. A poll of followers showed that 68% would use a refill kiosk more often if it was located near a shop or transport stop.

Resource 5 — Quotation from a council sustainability officer

“SSW has public trust because it is independent and community focused. Any growth partner must not make the project look like a marketing exercise.”