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Harvard Case - Arcenciel: Transforming Threats into Opportunities

"Arcenciel: Transforming Threats into Opportunities" Harvard business case study is written by Bettina Bastian, Randa Salamoun. It deals with the challenges in the field of Entrepreneurship. The case study is 9 page(s) long and it was first published on : Mar 13, 2017

At Fern Fort University, we recommend Arcenciel pursue a strategic growth strategy focused on expanding its reach and impact through a combination of organic growth, strategic partnerships, and targeted acquisitions. This strategy will leverage Arcenciel?s core competencies in sustainable agriculture, community development, and technology to create a disruptive innovation in the Haitian agricultural sector.

2. Background

Arcenciel is a Haitian non-profit organization dedicated to improving the lives of rural communities through sustainable agriculture and community development. Founded in 1989, Arcenciel has a strong track record of success in promoting sustainable farming practices, providing education and training, and fostering economic development in rural Haiti.

The case study focuses on Arcenciel?s response to the challenges posed by climate change, political instability, and poverty in Haiti. The organization faces a critical decision point: to maintain its current focus on community development or to pursue a more ambitious growth strategy to expand its impact and reach a wider audience.

The main protagonists of the case study are:

  • Patrick Alix, the founder and executive director of Arcenciel, who is passionate about the organization?s mission and committed to finding innovative solutions to Haiti?s challenges.
  • The Arcenciel team, comprised of dedicated professionals with expertise in agriculture, education, community development, and technology.
  • The Haitian government, which is facing significant challenges in addressing poverty, food insecurity, and climate change.
  • International donors, who provide funding for Arcenciel?s programs and initiatives.

3. Analysis of the Case Study

Arcenciel?s current model, while effective, faces limitations in its ability to scale and achieve a wider impact. To address this, we propose a framework based on the ?Triple Bottom Line? approach, which considers social, environmental, and economic factors in decision-making.

Social Impact: Arcenciel?s core mission is to improve the lives of rural communities in Haiti. This involves promoting sustainable agriculture, providing education and training, and fostering economic development.

Environmental Sustainability: Arcenciel?s work focuses on promoting environmentally friendly practices, such as organic farming, agroforestry, and water conservation. This aligns with the organization?s commitment to protecting the environment and mitigating the effects of climate change.

Economic Viability: Arcenciel needs to ensure its financial sustainability to continue its mission. This requires exploring innovative funding models, developing new revenue streams, and leveraging technology to enhance efficiency and effectiveness.

4. Recommendations

Arcenciel should adopt a multi-pronged growth strategy:

1. Organic Growth:

  • Expand existing programs: Invest in scaling up successful programs, such as the ?Farmer Field Schools? and the ?Agro-ecological Village? initiative.
  • Develop new programs: Introduce innovative programs focused on climate change adaptation, renewable energy, and agribusiness development.
  • Strengthen partnerships: Collaborate with local NGOs, government agencies, and international organizations to leverage resources and expertise.

2. Strategic Partnerships:

  • Form joint ventures: Partner with private sector companies to develop and market sustainable agricultural products and services.
  • Establish technology partnerships: Collaborate with tech companies to develop and implement innovative solutions for data collection, monitoring, and agricultural decision-making.
  • Engage with international donors: Secure funding for new initiatives and expand existing programs through partnerships with international development agencies.

3. Targeted Acquisitions:

  • Acquire complementary organizations: Identify and acquire smaller organizations with expertise in specific areas, such as agribusiness, technology, or financial services.
  • Leverage acquisition expertise: Develop a clear acquisition strategy and build a team with expertise in mergers and acquisitions to ensure successful integration.

5. Basis of Recommendations

These recommendations are based on the following considerations:

1. Core Competencies and Consistency with Mission:

  • Arcenciel?s core competencies in sustainable agriculture, community development, and technology are central to its mission and provide a solid foundation for growth.
  • The proposed growth strategy aligns with Arcenciel?s mission to improve the lives of rural communities in Haiti and promote sustainable development.

2. External Customers and Internal Clients:

  • The target audience for Arcenciel?s programs includes rural farmers, communities, and the Haitian government.
  • The proposed growth strategy aims to reach a wider audience and increase the impact of Arcenciel?s work.

3. Competitors:

  • Arcenciel faces competition from other NGOs, government agencies, and private sector companies operating in the Haitian agricultural sector.
  • The proposed growth strategy aims to differentiate Arcenciel through its focus on innovation, technology, and partnerships.

4. Attractiveness ? Quantitative Measures:

  • The proposed growth strategy is expected to increase Arcenciel?s impact and reach, leading to improved social, environmental, and economic outcomes.
  • While quantitative measures are difficult to assess in the context of a non-profit organization, the strategy is expected to attract increased funding and support from donors.

Assumptions:

  • The Haitian political and economic environment will stabilize over time.
  • International donors will continue to support Arcenciel?s work.
  • Arcenciel will be able to attract and retain talented staff to support its growth.

6. Conclusion

By adopting a strategic growth strategy focused on organic growth, strategic partnerships, and targeted acquisitions, Arcenciel can transform threats into opportunities and achieve a significant impact on the lives of rural communities in Haiti. This approach will leverage Arcenciel?s core competencies, enhance its financial sustainability, and expand its reach and influence.

7. Discussion

Alternatives not selected:

  • Maintain the status quo: This option would limit Arcenciel?s impact and potential to address the growing challenges in Haiti.
  • Focus solely on technology: This option could lead to a disconnect between Arcenciel?s mission and its activities, potentially alienating communities and donors.

Risks:

  • Political instability: Political unrest in Haiti could disrupt Arcenciel?s operations and hinder its growth.
  • Financial sustainability: Arcenciel may face challenges in securing funding for its ambitious growth plans.
  • Integration challenges: Acquiring and integrating new organizations could be complex and time-consuming.

Key Assumptions:

  • The Haitian government will create an enabling environment for sustainable development.
  • International donors will continue to support Arcenciel?s mission.
  • Arcenciel will be able to attract and retain skilled staff to support its growth.

8. Next Steps

  • Develop a detailed growth strategy: Outline specific objectives, timelines, and resource requirements for each element of the growth strategy.
  • Build a strong team: Recruit and develop staff with expertise in areas such as finance, marketing, technology, and partnerships.
  • Secure funding: Develop a comprehensive fundraising plan to secure the necessary resources for growth.
  • Implement pilot projects: Test new programs and initiatives on a smaller scale before scaling up.
  • Monitor and evaluate: Regularly track progress, assess impact, and make adjustments to the growth strategy as needed.

By taking these steps, Arcenciel can transform threats into opportunities and create a sustainable and impactful future for rural communities in Haiti.

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Case Description

As a Lebanese non-governmental organization, Arcenciel (AeC) had successfully created several sustainable development programs and projects that addressed the needs of marginalized populations in Lebanon's society. At the same time, AeC based its activities on an economic strategy that guaranteed financial independence from donations and public funding. This social entrepreneur had been able to develop and adjust its strategy in a very challenging environment over the course of several decades, successfully bridging the gap between non-profit objectives and the necessity to be financially profitable. In December 2015, the organization was about to win a prestigious national peace award in recognition of its research and activities. Government institutions, municipalities, and individuals alike had recently sought AeC's assistance in dealing with a waste-management crisis. Although this project represented a useful opportunity for AeC to communicate its vision, the co-founder wondered whether the organization was prepared to assume a larger role in Lebanon or, even further, to introduce its concept abroad. He needed to think carefully about AeC's evolution as well as its past success factors and the possibilities for expansion.

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