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*PIZZA HAVEN (GRANNY’s PIZZA)

A Case Of Social EntrepreneurshipBased on case study appeared in Management cases conf- IMT- 2006 at Institute of Management & Technology, Ghaziabad, New Delhi, IndiaAuthors: Chitra Partasarthy

Aditya RoyCourse: Learning Entrepreneurship

Faculty: Raza Kamal.

Associate professor

PAF-KIET,KARACHI

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*Case study with application of Timmons Model to understand the imperatives of Entrepreneurship

• Start Small Build Big

• Idea is the soul of business

• You dont need ample resources, replace resource with ingenuity and judicious use of available finances.

• Initially tie up team with people who are your most sincere friends

• Keep scanning the environment to identify the future trends and challenges; devise strategies to combat them.

• Desire to succeed, never give up, be persuasive are the personal traits of an entrepreneurs.

SEE NEXT SLIDE TO UNDERSTAND THE THEORY OF

TIMMONS MODEL

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WELL DESIGNED MODEL,

TIMMONS

*The model identifies three factors for success; Idea, Resources and Teamwork.

* The entrepreneur galvanizes these factors by communication, creativity and leadership.

* The three dimensions keep expanding/contracting as per the dynamics of environment.

* The entrepreneur juggles with these balls and injects input to the desired factor to maintain balance between the three factors.

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ACKNOWLEDGEMENT

*We wish to thank the authors for making a good case study for discussion on social entrepreneurship for this course.

*We wish Padma Srinivasan best of luck on her Endeavour and hope it is a success even today. Her resilience is a source of inspiration for us all.

*We applied the Timmons Model to this case and understood it with more clarity.

*I acknowledge the effort of Raza Qasim, student PAF-KIET who collated the findings of other groups into a fine PP presentation.

*I Acknowledge the enthusiasm of the class who took part in the discussion in feb 2013.

Raza Kamal

Class Instructor

raza@pafkiet.edu.pk7/2/2013

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PIZZA GRANNIES

PIZZAS OF GREAT TASTE

AT REASONABLE PRICE HAVE

ENDEARED PADMA AND

JAYALAKSHMI TO THEIR CUSTOMERS.

JOURNALISTS INTERVIEWED AND

WROTE ARTICLES ON THEIR SUCCESS

SHE ENJOYS PUBLICITY AND

TO USES IT TO “VISHRANTHI”

ADVANTAGE. 7/2/2013

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*Media coverage received by Vishranthi & Pizza Haven

*Deccan Herald Metropolis has published on 25th Dec, 2006.

*Indian express on 6th and 20th of Dec 2006.

*Prajavani on 8th Jan 2007.

*Hindu on 3rd Jan 2007.

*Vijay Times on 8th Jan 2007.

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PADMA SRINIVASAN * A MIDDLE CLASS LADY WHO IS A KEEN OBSERVER OF THE

SOCIETY.

* RETIRED AS FINANCE MANAGER IN AN INDUSTRIAL TRAINING INSTITUTE.

* EVER READY TO HELP ANYONE WHO APPROACHES HER.

* DESIRED TO SET UP A “ OLD AGE HOME” FOR MIDDLE CLASS SEGMENT OF SOCIETY.

* HER PREMISE WAS BASED ON ASSUMPTION THAT GOVERNMENT CATERS FOR LOWER SEGMENTS WHILE THE RICH TAKE CARE OF THEMSELVES. MIDDLE CLASS STRUGGLE AND OPTIONS ARE LIMITED.

* THE GRAND PLAN WAS TO RAISE MONEY FOR BUILDING HOME FOR THE ELDERLY IN THE MIDDLE SEGMENT OF SOCIETY. 

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PIZZA HAVEN (Granny's

Pizza)*TO ENSURE REGULAR INCOME FOR HOME TO BE SELF-

SUSTAINING.

*She started a Pizza catering unit from her garage in 1997.

*Initially targeted multinational software companies in Bangalore.

*These pizzas go under the banner of Granny's Pizza.

*Profit from the Pizza catering is used for building funds for Vishranthi.

*Entire construction was done with the funds mobilized through contributions including that of the future inmates of Vishranthi.

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CONCEPT OF OLD-AGE HOMES

* THOUGHT OF AS A WESTERN PHENOMENON. APPLICABLE NOW IN EASTERN SOCIETIES AS WELL

* CHANGING ATTITUDES FROM JOINT FAMILIES TO INDEPENDENT LIVING IN MOST OF THE DEVELOPING ECONOMIES

* YOUNGER GENERATION LEAVING COUNTRY FOR GREENER PASTURES LEAVE A DILEMMA FOR OLDER GENERATION--- WHAT TO DO?

* IN INDIA NUMBER OF AGED PEOPLE EXPECTED TO BE 113.0 MILLION IN 2016. 7/2/2013

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Vishranthi Trust.(Caring & Serving with love)

Vishranthi Means Rest Or Relaxations.*Idea: old age home for middle and low class spectrum of

society, Orphanage and care facility for them.

*Few like minded people namely joined togather and registered the Trust

*Smt. Padma Srinivasan

*Smt. Sarasa Vasudevan

*Smt. Jayalakshmi Sreenivasan

*Vishranthi Trust in 2003.

*They bought land measuring 22000 sq,ft near Jadigenahalli on Hoskote – Malur road, Banglore, INDIA in 2003.

PIZZA HAVEN WAS THE CONDUIT TO REALIZE THIS DREAM

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PIZZA HAVEN( All facts from case study published in IMT-

2006)

* JOINED HANDS WITH HER FRIEND JAYALAKHSMI AT THE START OF THE VENTURE.

* FACED PROBLEMS LIKE LOW CUSTOMER AWARENESS AND HEFTY ELECTRIC BILLS. USED HER PERSUASIVE NATURE TO APPEAL TO CUSTOMERS AND SPONSORS

* TARGETED CORPORATE CLIENTS LIKE MNC’s.

* PERFORMED DAY TO DAY OPERATIONS AND EXPANDED FROM 15-20 PIZZAS TO 150-200 PIZZAS PER DAY BY 2006.

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*Satyam computers employees are 36,956.

*94 IT firms in Bangalore.

*SALES*Per month sale (3000 units)

*TEAM*The entire back office handled by just 8 people

*4 people go with the van to the companies

*WORKING HOURS*10 am to 3 pm

*Why not 24/7 if there is a demand?

*WHY NOT THIS ??

DONATIONPIZZA HAVEN

VISHRANTHI TRUST

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COMPETITORS

*Dominos Pizza

*Papa John's Pizza India

*Pizza Corner

*Pizza Hut

*Dominos pizza

*Sunny's Restaurant

*U.S Pizza

* Pizzeria Romano | Pizzeria Romano in Bangalore7/2/2013

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Cost Structure Of Pizza Haven Expenses

Particulars Price (Rs. Per month)Vegetables 7000

Cheese 5000

Pizza bread 45000

Wages 20000

Electricity 1000

Fuel 10000

Misc 5000

Total expense 93000Revenue Rate

Per unit 35

Number of units (per month) 3000

Gross income 105000

Net profit 120007/2/2013

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General Pizza Price List (Bangalore)

*Simply Veg. Pizza Prices

*Regular pizza price – Rs. 60/-Medium pizza price – Rs. 120/-Large pizza price – Rs. 230/-Cheese Burst pizza price – Rs. 190/-

*Simply Non Veg pizza prices

*Regular: Rs. 95/-Medium: Rs. 190/-Large: Rs. 330/-Cheese burst: Rs. 260/-

*Veg. pizza prices

*Regular: Rs. 95/-Medium: Rs. 190/-Large: Rs. 330/-Cheese burst: Rs. 260/-

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*Non Veg. pizza prices:

*Regular: Rs. 125/-Medium: Rs. 225/-Large: Rs. 375/-Cheese Burst: Rs. 295/-

*Veg. II pizza prices

*Regular: Rs. 125/-Medium: Rs. 225/-Large: Rs. 375/-Cheese Burst: Rs. 295/-

*Non Veg. II pizza prices

*Regular: Rs. 150/-Medium: Rs. 275/-Large: Rs. 415/-Cheese Burst: Rs. 345/-

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Timmon’s Model Application To The Case

•Determined•Focused•Quick Learner•Keen Observer•Thinker

•Good Communicator• Persuader

•Start Small Build Big•Innovator•Small Win Strategy

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REVIEW TIMMONS MODEL

*The model identifies three factors for success; Idea, Resources and Teamwork.

* The entrepreneur galvanizes these factors by communication, creativity and leadership.

* The three dimensions keep expanding/contracting as per the dynamics of environment.

* The entrepreneur juggles with these balls and injects input to the desired factor to maintain balance between the three factors.

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THE ENTREPRENEUR AS THE FULCRUM

*Person with following qualities would be ideal

*Ability to run PIZZA as a profitable organization.

*Learns and teaches on the way

*Remain the champion of cause.

*Resilient, can deal with adversity with tenacity.

*Manage finances with judicious adroitness.

*Exhibits integrity, dependability, honesty

*Can balance the strategic and tactical goals. i.e PIZZA HAVEN &

TRUST

*Build culture of an organization and can maintain them. 7/2/2013

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Generating Resources

*Vishranthi is a registered trust with income tax exemption

under section 80G of Indian income tax Act.

*Pizza Haven is the main vehicle of funding.

*Approached corporate for sponsorships.

*Padma invested Half acre plot

*Organized stage shows

*Collected Rs 1.5 million for a Rs 8.3 million project for the

construction of Vishranthi.7/2/2013

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THE TEAM

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Question # 1

How long can Pizza Haven continue its activities and support Vishranthi? If so, should it diversify its product offering

to retain and expand its customer base?

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OPPORTUNITYTO DIVERSIFY AND EXPAND

PRODUCT

RESOURCES ????

TEAM (needs

expansion)

FOUNDER 7/2/2013

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Question # 2

When would Vishranthi become self sufficient?

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*CURRENT POSITION

*Vishranthi will become financially self-sufficient when. . .*The elderly of Vishranthi beef up the team for PIZZA HAVEN and

also become productive and useful for themselves.

* Resource allocation for VISHRANTHI should not be overly leveraged.

*Expenses of TRUST = Profit of PIZZA HAVEN

TRUSTPIZZA HAVEN

TRUSTPIZZA HAVEN

FOUNDER

FOUNDER

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The Vishranthi WILL ALWAYS NEED A FINANCIAL SUPPORT TO OPERATE WELL.

OLD AGE PEOPLE IN VISHRANTHI may not like to WORK TO GENERATE FINANCE FOR VISHRANTHI.

MORE FUNCTIONS CAN BE STARTED TO COPE WITH CAPITAL SHORTAGE.

* Discussion Summary

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Question # 3

Should Padma take help from the professional organization such as Help

Age?

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*Professional organization like “Help Age” raise fund for their

own organization.

*Vishranthi should be self sufficient.

*Can take some help in current situation.

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Another Point Of View

Capital raising sources of Vishranthi Trust.

Pizza Heaven is the main source for funding Vishranthi.

Corporate Organizations are being approached for sponsorship such as Tata Steel.

Organize stage/ charity shows to raise funds.

No opportunity for raising money is left untapped.

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Two different scenario 1. Merger or Takeover by Help Age.

2. Purpose of Vishranthi might die.

Another Point Of View

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Question # 4

Should there be a change in leadership as Vishranthi enters the next phase ? If

so, who ?7/2/2013

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A Group Of Student Also Thought Like This As Well

* PADMA HAS THE REQUIRED SKILLS AND DETERMINATION and should continue.

*THE TRUST HAS ELIGIBLE PEOPLE ON THE BOARD OF TRUSTEES WHO CAN TAKE OVER.

* PADMA HAS ACHIEVED HER PURPOSE OF LIFE AND SHOULD RETIRE AND RELAX. “ handing the baton” is a difficult option for humans, you have to be a “Super Human Being” to do so??

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Question # 5

How should Vishranthi be promoted to make it known to those who need it?

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PROMOTION VIA:

*Social media

*Workshops

*Seminars

*Events with other NGOs

*Publicity through platforms.

*Price Factor.

*Seminars.

*Medical Services

*Primary School

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*Padma writing in newspapers was a good idea.

*Agency ads will add up to cost.

*Involving Media in their activities.

*Advertise in Newspapers and Magazines, only those who have acknowledged Padma.

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VISHRANTHI TRUST- future

* IN 1997, PURCHASED PLOT OF LAND AT WHITEFIELD, BANGLORE.

* MONEY COLLECTED FROM DIFFERENT SOURCES AMOUNTED TO RS1.5 million.

* COST OF CONSTRUCTION ESTIMATED TO BE RS 8.3 million.

* PIZZA HAVEN WILL SHIFT TO VISHRANTHI AFTER KITCHEN GETS CONSTRUCTED.

* PLANNING TO TIE UP WITH MEDICAL COLLEGE TO AVAIL MEDICAL FACILITIES FOR OCCUPANTS.

* ALSO PLANNED TO START PRIMARY SCHOOL. 7/2/2013

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SUMMARYTIMMONS MODEL

*The model identifies three factors for success; Idea, Resources and Teamwork.

* The entrepreneur galvanizes these factors by communication, creativity and leadership.

* The three dimensions keep expanding/contracting as per the dynamics of environment.

* The entrepreneur juggles with these balls and injects input to the desired factor to maintain balance between the three factors.

7/2/2013

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ACKNOWLEDGEMENT

*We wish to thank the authors for making a good case study for discussion on social entrepreneurship for this course.

*We wish Padma Srinivasan best of luck on her Endeavour and hope it is a success even today. Her resilience is a source of inspiration for us all.

*We applied the Timmons Model to this case and understood it with more clarity.

*I acknowledge the effort of Raza Qasim, student PAF-KIET who collated the findings of other groups into a fine PP presentation.

*I Acknowledge the enthusiasm of the class who took part in the discussion in feb 2013.

Raza Kamal

Class Instructor

raza@pafkiet.edu.pk7/2/2013

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