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Harvard Case - Just Us! Community-based Tourism

"Just Us! Community-based Tourism" Harvard business case study is written by Ian McKillop, Julia Sagebien, Alba Brugueras. It deals with the challenges in the field of Entrepreneurship. The case study is 10 page(s) long and it was first published on : Feb 17, 2011

At Fern Fort University, we recommend that Just Us! adopt a hybrid growth strategy, focusing on both organic expansion within existing communities and strategic partnerships with like-minded organizations. This approach will allow Just Us! to leverage its existing strengths in community engagement and sustainable tourism while expanding its reach and impact. This strategy will be supported by a robust financial plan that prioritizes profitability, cash flow management, and responsible investment.

2. Background

Just Us! is a community-based tourism organization operating in developing countries. Founded by a group of passionate individuals, Just Us! aims to empower local communities by providing them with the tools and resources to develop sustainable tourism initiatives. The organization offers a variety of services, including training, marketing, and infrastructure development, to help communities create and manage their own tourism businesses.

The case study focuses on Just Us!?s current challenges, including limited funding, a need for greater scalability, and the desire to expand its reach to new communities. The main protagonists are the founders, who are passionate about their mission but face the difficult task of balancing social impact with financial sustainability.

3. Analysis of the Case Study

To analyze Just Us!?s situation, we can utilize the Porter?s Five Forces Framework to understand the competitive landscape and the SWOT Analysis to identify internal strengths and weaknesses, and external opportunities and threats.

Porter?s Five Forces:

  • Threat of New Entrants: Low, as establishing a community-based tourism organization requires significant local knowledge, relationships, and trust.
  • Bargaining Power of Suppliers: Moderate, as Just Us! relies on local communities and suppliers for services and resources.
  • Bargaining Power of Buyers: Moderate, as tourists have a variety of options and are price-sensitive.
  • Threat of Substitutes: High, as traditional tourism operators and online platforms offer similar experiences.
  • Competitive Rivalry: Moderate, as Just Us! competes with other community-based tourism organizations and traditional tourism operators.

SWOT Analysis:

Strengths:

  • Strong community engagement and local knowledge
  • Focus on sustainable tourism practices
  • Positive social impact and ethical business model
  • Experienced and passionate founders

Weaknesses:

  • Limited funding and financial resources
  • Lack of scalability and operational efficiency
  • Limited marketing and brand awareness
  • Dependence on external funding and grants

Opportunities:

  • Growing demand for authentic and sustainable travel experiences
  • Increasing interest in community-based tourism
  • Potential for partnerships with NGOs, government agencies, and private businesses
  • Expansion into new markets and regions

Threats:

  • Economic downturns and travel disruptions
  • Competition from traditional tourism operators
  • Lack of government support and regulatory challenges
  • Environmental and social challenges in developing countries

4. Recommendations

Hybrid Growth Strategy:

  • Organic Growth: Continue to invest in existing communities, expanding their tourism offerings and strengthening their capacity. This involves providing ongoing training, marketing support, and infrastructure development.
  • Strategic Partnerships: Seek partnerships with like-minded organizations, NGOs, and private businesses to leverage their resources, expertise, and networks. This could include joint ventures, co-marketing initiatives, and collaborative projects.

Financial Strategy:

  • Profitability Focus: Develop a clear pricing strategy that balances social impact with financial sustainability. Implement activity-based costing to accurately assess the cost of services and ensure profitability.
  • Cash Flow Management: Implement robust cash flow forecasting and management systems to ensure financial stability. Explore options for working capital financing and debt management.
  • Responsible Investment: Prioritize investments that generate both social and financial returns. Explore opportunities for impact investing, blended finance, and sustainable finance.

Operational Efficiency:

  • Technology Adoption: Leverage technology to streamline operations, improve communication, and enhance customer experience. This could include online booking platforms, mobile applications, and digital marketing tools.
  • Organizational Restructuring: Consider restructuring the organization to improve efficiency and scalability. This may involve creating new roles, delegating responsibilities, and establishing clear lines of accountability.

5. Basis of Recommendations

Our recommendations are based on the following considerations:

  1. Core Competencies and Consistency with Mission: The hybrid growth strategy aligns with Just Us!?s core competencies in community engagement and sustainable tourism, while also expanding its reach and impact.
  2. External Customers and Internal Clients: The strategy addresses the needs of both tourists seeking authentic experiences and local communities seeking economic empowerment.
  3. Competitors: The partnership approach allows Just Us! to leverage its strengths while mitigating the competitive threat from traditional tourism operators.
  4. Attractiveness ? Quantitative Measures: The financial strategy focuses on profitability, cash flow management, and responsible investment, ensuring long-term financial sustainability.

6. Conclusion

By adopting a hybrid growth strategy and implementing a robust financial plan, Just Us! can achieve both social impact and financial sustainability. The organization can leverage its existing strengths, expand its reach, and create a lasting positive impact on communities around the world.

7. Discussion

Alternative Options:

  • Focus solely on organic growth: This approach would be slower and less scalable, potentially limiting Just Us!?s impact.
  • Merging with another organization: This could provide access to resources and expertise, but may compromise Just Us!?s mission and autonomy.
  • Going public: This could provide significant funding, but may lead to pressure to prioritize profits over social impact.

Risks and Key Assumptions:

  • Economic downturn: A decline in tourism could negatively impact Just Us!?s revenue.
  • Competition: The emergence of new competitors could erode Just Us!?s market share.
  • Regulatory challenges: Changes in government regulations could hinder Just Us!?s operations.

Options Grid:

OptionAdvantagesDisadvantagesRisks
Hybrid Growth StrategyScalable, sustainable, leverages strengthsRequires careful planning and executionEconomic downturn, competition, regulatory challenges
Organic GrowthFocus on core competencies, maintains autonomySlow, limited scalabilityEconomic downturn, competition
Merging with another organizationAccess to resources, expertiseCompromises mission, autonomyLoss of control, cultural clashes
Going publicSignificant fundingPressure to prioritize profits, loss of controlDilution of ownership, potential for conflict of interest

8. Next Steps

  1. Develop a detailed financial plan: This should include revenue projections, cost analysis, and investment plans.
  2. Identify potential partners: Research and contact organizations that align with Just Us!?s mission.
  3. Develop a marketing strategy: Increase brand awareness and attract new customers.
  4. Implement technology solutions: Streamline operations and enhance customer experience.
  5. Monitor progress and make adjustments: Regularly evaluate the effectiveness of the strategy and make necessary adjustments.

By taking these steps, Just Us! can position itself for sustainable growth and success, empowering local communities and creating a positive impact on the world.

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Case Description

The development coordinator for Just Us! Development Education Society (JUDES) was reviewing the preliminary agenda for the JUDES Annual General Meeting (AGM). The meeting would take place some time between May 1 and May 14, 2010, National Fair Trade Weeks. The coordinator was preparing her to-do list for the event. Just Us!, a Nova Scotia, Canada-based cooperative that offered fair trade products, had a very loyal regional following, and the coordinator wanted to communicate how the premium paid for fair trade products actually helped producer communities. She was planning several events for the AGM, but, most importantly, presentations and discussion of the Community-based Tourism (CBT) trip they had taken to Oaxaca, Mexico in 2009, and had planned to take again in 2010. For the AGM presentation, she wanted to organize the trip guidelines and the budget information into a triple bottom line format.

The case can be taught in conjunction with two previous cases: Marketing Planning at Just Us! Cafes, Ivey product # 9B09A014 and Just Us! Coffee Roasters, Ivey product #9B06A027.

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