Harvard Case - The "Garbage Lady" Cleans Up Kampala: Turning Quick Wins into Lasting Change
"The "Garbage Lady" Cleans Up Kampala: Turning Quick Wins into Lasting Change" Harvard business case study is written by Lisa C. Cox, Jorrit de Jong. It deals with the challenges in the field of Entrepreneurship. The case study is 12 page(s) long and it was first published on : May 1, 2020
At Fern Fort University, we recommend that Doreen expand her business model by establishing a formal waste management company, incorporating innovative technology, and seeking strategic partnerships with government and private sector entities. This expansion will enable Doreen to scale her operations, achieve greater environmental impact, and generate sustainable financial returns.
2. Background
Doreen, a young entrepreneur in Kampala, Uganda, identified a significant problem: the city?s inadequate waste management system. She started by collecting garbage herself, earning a modest income while making a difference. Her initiative, dubbed ?The Garbage Lady,? gained popularity and attracted both praise and criticism. Doreen?s success highlights the need for a more efficient and environmentally responsible waste management system in Kampala.
3. Analysis of the Case Study
This case study can be analyzed through the lens of entrepreneurship, social impact, and business model innovation. Doreen?s initial success was driven by her entrepreneurial spirit, her willingness to address a pressing social issue, and her ability to identify a market opportunity. However, the case study highlights the limitations of a purely individual-driven approach to tackling a complex problem like waste management.
Key challenges Doreen faces include:
- Scaling Operations: Doreen?s current model is limited by her individual capacity and resources.
- Financial Sustainability: While her business is profitable, it is not yet generating sufficient income to support significant expansion.
- Lack of Infrastructure: Kampala lacks adequate waste collection and processing infrastructure, hindering efficient waste management.
- Regulatory Challenges: Navigating the complex regulatory environment can be challenging for small businesses.
Opportunities for Doreen include:
- Growing Market Demand: Kampala?s population is growing, leading to increased waste generation and a need for improved waste management services.
- Government Support: The Ugandan government is increasingly prioritizing environmental sustainability and is open to partnering with private sector actors.
- Technology Adoption: Innovative waste management technologies, such as waste sorting and recycling systems, can significantly improve efficiency and profitability.
- Social Impact Investment: Investors are increasingly interested in supporting businesses that address social and environmental challenges.
4. Recommendations
- Formalize the Business: Doreen should establish a formal waste management company with a defined organizational structure, legal framework, and clear business plan. This will enhance credibility, attract investment, and facilitate growth.
- Adopt Technology: Doreen should invest in technology solutions to improve waste collection, sorting, and recycling processes. This could include GPS tracking for collection vehicles, waste sorting equipment, and mobile payment systems.
- Seek Strategic Partnerships: Doreen should actively seek partnerships with government agencies, private sector companies, and NGOs. These partnerships can provide access to resources, infrastructure, and expertise.
- Develop a Social Impact Strategy: Doreen should clearly articulate the social and environmental impact of her business and leverage this to attract investors and customers.
- Focus on Financial Sustainability: Doreen should develop a robust financial strategy that includes cost optimization, revenue diversification, and a clear path to profitability.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies and Consistency with Mission: Doreen?s core competency lies in her understanding of the waste management problem and her ability to connect with communities. Formalizing her business and leveraging technology will enhance these competencies and align with her mission of creating a cleaner and healthier Kampala.
- External Customers and Internal Clients: Doreen?s external customers are households and businesses in Kampala, while her internal clients are her employees and partners. The recommendations focus on providing better services to customers, creating a more efficient and rewarding work environment for employees, and fostering strong partnerships.
- Competitors: Doreen faces competition from informal waste collectors and established waste management companies. By formalizing her business, adopting technology, and seeking partnerships, she can differentiate herself and gain a competitive advantage.
- Attractiveness - Quantitative Measures: The recommendations are expected to lead to increased revenue, improved profitability, and a positive environmental impact. While quantifying these impacts will require further analysis, the potential for growth and social impact is significant.
6. Conclusion
Doreen?s ?Garbage Lady? initiative has the potential to transform waste management in Kampala. By transitioning from an individual effort to a formal business, embracing technology, and forging strategic partnerships, she can create a sustainable and impactful enterprise. Her success will not only benefit the environment and the community but also serve as an inspiration for other entrepreneurs in emerging markets.
7. Discussion
Alternatives not selected:
- Remaining a Sole Proprietor: This option would limit Doreen?s growth potential and make it difficult to attract investment.
- Focusing solely on Government Contracts: While government contracts can provide stability, they can also be subject to bureaucratic delays and political influences.
Risks and Key Assumptions:
- Financial Risk: Investing in technology and expanding operations requires significant capital. Doreen needs to secure adequate funding and manage financial risk effectively.
- Regulatory Risk: Navigating the regulatory environment for waste management can be complex and require ongoing engagement with government agencies.
- Competition: Doreen faces competition from informal and formal waste management operators. She needs to differentiate her services and build strong relationships with customers.
Options Grid:
| Option | Advantages | Disadvantages |
|---|---|---|
| Formalize the Business | Enhanced credibility, access to investment, scalability | Increased costs, regulatory hurdles |
| Adopt Technology | Improved efficiency, cost savings, environmental benefits | High initial investment, technical expertise required |
| Seek Strategic Partnerships | Access to resources, infrastructure, and expertise | Potential conflicts of interest, dependence on partners |
8. Next Steps
- Develop a Business Plan: Doreen should create a comprehensive business plan outlining her vision, strategy, financial projections, and operational plan.
- Secure Funding: Doreen should seek funding from investors, government grants, or social impact funds.
- Establish Partnerships: Doreen should initiate discussions with potential partners, including government agencies, NGOs, and private sector companies.
- Pilot Technology Solutions: Doreen should pilot test various technology solutions to identify the most effective and cost-efficient options.
- Implement a Social Impact Measurement Framework: Doreen should develop a framework to track and measure the social and environmental impact of her business.
By taking these steps, Doreen can transform her ?Garbage Lady? initiative into a thriving and sustainable business that makes a real difference in Kampala and beyond.
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Case Description
In 2011, at the newly formed Kampala Capital City Authority (KCCA), Judith Tumusiime, an impassioned technocrat who prided herself on operating outside of politics, was charged with transforming a "filthy city" to a clean, habitable, and healthy one. Early in her tenure, she was able to vastly improve Kampala's solid waste management (SWM) system by creating efficiencies, increasing accountability, and bringing her technical know-how to a team that held little expertise. But by 2015, after several years of strong momentum, Tumusiime felt that her progress was stalling, and she faced political challenges around creating a sustainable SWM system. More specifically, her team was grossly overextended and needed to assign some of its SWM responsibilities to private contractors through an innovative public-private partnership (PPP). To ensure that the PPP was viable, Tumusiime strongly believed that all residents, no matter their income, needed to pay fees for garbage collection. However, the federal and local elections were approaching in February 2016, and politicians had told their constituents that they would not allow garbage collection fees, leaving Tumusiime with little support for her long-term vision. She was faced with a challenge: she could either dive into a political world that she had never wanted anything to do with to see if she could achieve radical change, or she could continue to make tweaks that might achieve short-term, small improvements at a slow-and even halting-pace.
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