Competing for Development (A): Fuel Efficient Stoves for Darfur
Oana Branzei, Samer Abdelnour
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Non-Profit Organization; Sustainable Development; Emerging Markets; Simulation, General Management/Strategy, International
The new country director of CHF International (CHF), a U.S.-based organization that initiated operations in Sudan with USAID funding, must review the successes of CHF's early interventions, and its strategic interest in the fuel efficient stoves project. The practical decision concerns a US$65,000 investment in a local manufacturing facility that would allow CHF to scale up the production of a stove design endorsed by the Lawrence Berkeley National lab using locally tested prototypes with USAID support. Students are asked to contemplate whether and how economies of scale would bring the costs down to a tipping point where internally displaced persons (IDPs) in Darfuri camps could afford the benefits of greater efficiency and convenience. They also need to balance cost cutting considerations with alternative decision criteria for local development: the success of this project depends on IDPs' preference among alternative stove providers - which encompasses, in addition to fuel economies, the characteristics of the stoves themselves (i.e. quality, fuel efficiency), the engagement of the community in their production, and the ability to use and repair the stoves. The role play supplements 9B08M062A to 9B08M062F will highlight several aspects of the competitive dynamics among the key players. A summary of the dynamic interaction between the players is provided in the supplement Competing for Development (C): Success, Bittersweet.