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Harvard Case - Attadamoun Co-operative (Morocco): Women's Emancipation and an Existential Dilemma

"Attadamoun Co-operative (Morocco): Women's Emancipation and an Existential Dilemma" Harvard business case study is written by Mounir Chaouki, Bertrand Guillotin. It deals with the challenges in the field of Entrepreneurship. The case study is 13 page(s) long and it was first published on : Dec 16, 2022

At Fern Fort University, we recommend Attadamoun Co-operative pursue a hybrid growth strategy that leverages its strong social mission and existing infrastructure to expand its reach and impact. This strategy will involve a combination of organic growth, strategic partnerships, and targeted investments in areas like technology and analytics, marketing, and product development. By embracing innovation and entrepreneurial management, Attadamoun can empower its members, increase its financial sustainability, and become a leading force in promoting women's economic empowerment in Morocco.

2. Background

Attadamoun Co-operative is a Moroccan organization dedicated to empowering women through microfinance and entrepreneurship. Founded in 1999, it has grown to serve over 100,000 members across Morocco. However, Attadamoun faces challenges like limited financial resources, competition from other microfinance institutions, and a need to adapt to changing market dynamics. The case study explores the dilemma facing Attadamoun: whether to maintain its current social mission or pursue a more commercially focused approach to ensure long-term sustainability.

The main protagonists are:

  • Fatima Zahra, the CEO of Attadamoun, who is passionate about the cooperative?s social mission but recognizes the need for financial stability.
  • The Board of Directors, who are divided on the best path forward for the organization.
  • The Members, who rely on Attadamoun for access to financial services and economic opportunities.

3. Analysis of the Case Study

The case study presents a classic dilemma faced by many social enterprises: balancing social impact with financial sustainability. To analyze this situation, we can use the Porter?s Five Forces framework to understand the competitive landscape and the Social Impact Assessment Framework to evaluate the potential impact of different strategic options.

Porter?s Five Forces Analysis:

  • Threat of New Entrants: The microfinance industry in Morocco is relatively competitive, with several established players and increasing interest from international organizations. However, Attadamoun?s strong social mission and established network provide a competitive advantage.
  • Bargaining Power of Buyers: Members have limited bargaining power due to their dependence on Attadamoun for financial services. However, Attadamoun needs to ensure its services remain relevant and competitive to retain members.
  • Bargaining Power of Suppliers: Suppliers of financial services to Attadamoun have limited bargaining power due to the cooperative?s size and social mission.
  • Threat of Substitute Products: Alternative financial services, such as informal lending networks and mobile banking, pose a threat to Attadamoun.
  • Competitive Rivalry: Competition is intense from other microfinance institutions, banks, and mobile money providers. This requires Attadamoun to differentiate itself through its social mission and innovative product offerings.

Social Impact Assessment Framework:

  • Social Impact: Attadamoun?s primary social impact is the empowerment of women through access to financial services and entrepreneurial opportunities.
  • Environmental Impact: The cooperative?s operations can be assessed for their environmental sustainability, such as promoting green businesses and reducing carbon footprint.
  • Economic Impact: Attadamoun?s economic impact can be measured through its contribution to job creation, poverty reduction, and local economic development.

4. Recommendations

To address the challenges and capitalize on opportunities, Attadamoun should adopt a hybrid growth strategy that combines:

1. Organic Growth:

  • Expand existing services: Offer new financial products and services, such as savings accounts, insurance, and digital payment solutions.
  • Increase outreach: Target new geographic areas and underserved populations, leveraging technology and partnerships to reach more women.
  • Improve operational efficiency: Streamline processes, optimize resource allocation, and implement technology solutions to enhance productivity.

2. Strategic Partnerships:

  • Collaborate with NGOs and government agencies: Partner with organizations that share Attadamoun?s social mission to expand reach and access to resources.
  • Form alliances with businesses: Collaborate with companies that offer complementary products and services to create value for members.
  • Explore international partnerships: Partner with international microfinance institutions or NGOs to access expertise, funding, and best practices.

3. Targeted Investments:

  • Technology and Analytics: Invest in digital platforms, data analytics, and mobile applications to improve efficiency, expand reach, and personalize services.
  • Marketing and Branding: Develop a comprehensive marketing strategy to raise awareness, build brand recognition, and attract new members.
  • Product Development: Invest in developing innovative financial products and services that cater to the needs of women entrepreneurs and address the evolving market landscape.

5. Basis of Recommendations

These recommendations are based on the following considerations:

  • Core competencies and consistency with mission: The recommendations align with Attadamoun?s core competencies in microfinance and its mission to empower women.
  • External customers and internal clients: The recommendations focus on meeting the needs of members and attracting new customers while also considering the needs of internal stakeholders like staff and board members.
  • Competitors: The recommendations consider the competitive landscape and aim to differentiate Attadamoun through its social mission, innovative products, and strategic partnerships.
  • Attractiveness ? quantitative measures: The recommendations are expected to improve financial sustainability through increased revenue, improved efficiency, and reduced costs.
  • Assumptions: The recommendations assume that Attadamoun can successfully implement the proposed changes, secure necessary funding, and adapt to evolving market dynamics.

6. Conclusion

By embracing a hybrid growth strategy that balances social impact with financial sustainability, Attadamoun can achieve its long-term goals of empowering women and becoming a leading force in the Moroccan microfinance sector. This strategy will require visionary leadership, a strong commitment to innovation, and the ability to adapt to changing market conditions.

7. Discussion

Alternatives not selected:

  • Going public: While going public could provide access to significant capital, it may compromise Attadamoun?s social mission and autonomy.
  • Merging with another microfinance institution: This could lead to economies of scale but might dilute Attadamoun?s unique identity and impact.

Risks and key assumptions:

  • Implementation challenges: Successfully implementing the proposed changes requires strong leadership, effective communication, and a commitment to change management.
  • Financial sustainability: Achieving financial sustainability requires careful planning, resource allocation, and a focus on efficiency.
  • Market dynamics: The microfinance industry is constantly evolving, and Attadamoun needs to adapt to new trends and technologies.

8. Next Steps

  • Develop a comprehensive business plan: Outline the specific strategies, timelines, and resources required to implement the recommended growth strategy.
  • Secure funding: Explore various funding options, including grants, impact investments, and partnerships with international organizations.
  • Build a strong leadership team: Recruit and develop leaders who are passionate about Attadamoun?s mission and have the skills to execute the growth strategy.
  • Implement technology solutions: Invest in digital platforms and data analytics to improve efficiency, expand reach, and personalize services.
  • Develop a robust marketing strategy: Build brand awareness, attract new members, and communicate Attadamoun?s value proposition effectively.
  • Monitor progress and adapt: Regularly evaluate the progress of the growth strategy and make adjustments as needed to ensure its effectiveness.

By taking these steps, Attadamoun can transform itself into a sustainable and impactful organization that continues to empower women and contribute to the economic development of Morocco.

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Case Description

Following the Arab Spring of 2011, the centuries-old co-operative movement helped the emancipation and financial independence of women in Morocco. One such woman was Samira Smahri, the founder and president of a co-operative called Attadamoun, which nationally and internationally marketed a unique product native to Morocco now used around the world: argan oil and its derivative products. The co-op, founded in 2014 and located in Sidi Bibi, a small village in Morocco, had experienced steady growth and given women a sense of hope and new-found freedom. However, this was all put on hold with the onset of the COVID-19 pandemic. Accordingly, Smahri had to decide whether to persevere under extremely unfavourable conditions or to shut down the co-op that meant so much to her and the co-op's emancipated women employees.

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