ILLUSTRATION 9.2 The international Joint Effort Enterprise For Blue Skies international strategy is something more than profit alone. Blue Skies specialises in producing fresh-cut fruit and juice products from a network of factories in Africa and South America. It supplies over 12 major European retailers, including Waitrose in the UK, Albert Heijn in the Netherlands and Monoprix in France. The com- pany has factories in Ghana, Egypt, South Africa and Brazil. Its biggest factory is in Ghana and employs over 2500 people and sources fruit from over 100 small to medium-sized farms. Blue Skies believes in value add- ing at source whereby the raw materials are processed within the country of origin rather than shipped over- seas and processed elsewhere. By doing this, as much as 70 per cent of the value of the finished product stays within the country of origin, compared to as little as 15 per cent if it is processed outside. Blue Skies works within a framework it has devel- oped called the Joint Effort Enterprise' (EE). While it is their model for a sustainable business, it is not a model which has been introduced to respond to the growing hype around 'sustainability. Instead, it is a set of principles from the foundation of the business in 1998 to ensure that the organisation would endure. The JEE is principally made up of three strands: a diverse society, a culture of respect and a drive for profit. The latter must not, however, come at the expense of all the other strands. Blue Skies believes that this model ensures that it retains the best people and conserves the resources they rely on, so that they can produce the best quality products and therefore generate the income that keeps the organisation going Its approach is based on fairness in business, respect for each other and above all, trust'. In addition, Blue Skies raised over lm (1.2m, $1.5m) in partnership with two European retailers and completed over 40 projects in Ghana and South Africa including the con- struction of schools, latrines and community centres. The Blue Skies JEE approach has also been awarded a Queens Award for Enterprise in the Sustainable Devel- opment Category in 2009, 2011 and 2015. During the last few years Blue Skies has encoun tered several international challenges: a world reces- Sion, rising energy prices, exchange rate volatility, shortage of raw materials, etc. It realises that these are challenges that an international operation across three continents must be ready and willing to respond to. Accordingly, it has undertaken a number of initiatives: Developing products for local and dollar-based mar- kets to reduce exposure to exchange rate losses and supply chain disruption. Expanding its supply base around the world to ensure year-round supply of fruit. Helping its suppliers achieve agricultural standards such as LEAF (Linking Environment and Farming) to ensure sustainability of supply. . Growing the Blue Skies Foundation to strengthen its relationship with staff, farmers and their communities. Developing plans to generate renewable energy to reduce electricity costs and greenhouse gas emissions. Opening a European-based contingency factory to ensure consistency of supply during supply chain disruption. Source Prepared by Edwina Goodwin, Leicester Business School, De Montfort University Questions 1 What internationalisation drivers (Figure 9.2) do you think were most important for Blue Skies' decision to enter its specific markets? 2 How does Blue Skies' strategy fit into a broader international value system including suppliers, channels and customers (see also Figure 4.5)? 3 To what extent is JEE key to Blue Skies international strategy and competitive advantage or rather a social entrepreneurship effort