Harvard Case - Food Angel: A Sustainable Solution to Food Waste in Hong Kong
"Food Angel: A Sustainable Solution to Food Waste in Hong Kong" Harvard business case study is written by Chun Hui, Ingrid Piper. It deals with the challenges in the field of General Management. The case study is 10 page(s) long and it was first published on : Jun 30, 2020
At Fern Fort University, we recommend Food Angel adopt a three-pronged strategy to scale its operations, enhance its impact, and achieve sustainable growth. This strategy involves:
- Expanding its network: Food Angel should focus on increasing its reach through strategic partnerships with businesses, NGOs, and government agencies, leveraging technology to optimize its logistics and communication channels.
- Diversifying its revenue streams: Food Angel should explore innovative revenue models beyond donations, such as partnerships with food retailers for surplus food redistribution, social enterprise ventures, and corporate social responsibility programs.
- Building a strong brand and engaging the community: Food Angel should invest in brand building, public awareness campaigns, and community engagement initiatives to raise awareness about food waste and foster a culture of sustainability.
2. Background
Food Angel is a Hong Kong-based non-profit organization tackling the issue of food waste by collecting surplus food from businesses and redistributing it to those in need. Founded in 2012, Food Angel has grown significantly, collecting and redistributing millions of pounds of food annually. However, the organization faces challenges in scaling its operations, securing funding, and building a sustainable model for long-term impact.
The main protagonists are:
- Dr. Agnes Chan: Founder and Executive Director of Food Angel, passionate about reducing food waste and addressing food insecurity.
- The Food Angel team: Dedicated individuals committed to the organization's mission, facing operational challenges and resource constraints.
- Donors and partners: Individuals and organizations supporting Food Angel's mission through financial contributions and collaborations.
- Beneficiaries: Individuals and families receiving food assistance from Food Angel, benefiting from the organization's efforts to combat food insecurity.
3. Analysis of the Case Study
Strategic Analysis:
SWOT Analysis:
- Strengths: Strong mission and values, dedicated team, proven track record of success, positive community impact.
- Weaknesses: Limited resources, operational inefficiencies, reliance on donations, lack of brand awareness.
- Opportunities: Growing awareness of food waste, increasing demand for sustainable solutions, potential for corporate partnerships and social enterprise ventures.
- Threats: Competition from other food banks, economic downturn, regulatory changes, negative media coverage.
Porter's Five Forces:
- Threat of new entrants: Low, due to the high barriers to entry in the food rescue and redistribution sector.
- Bargaining power of buyers: Low, as beneficiaries are dependent on Food Angel's services.
- Bargaining power of suppliers: Moderate, as businesses have options for disposing of surplus food.
- Threat of substitute products: Low, as Food Angel provides a unique service addressing food waste and food insecurity.
- Competitive rivalry: Moderate, as Food Angel faces competition from other food banks and NGOs.
Financial Analysis:
- Revenue model: Currently relies heavily on donations, limiting scalability and sustainability.
- Cost structure: High operational costs, including logistics, transportation, and staff.
- Financial performance: Positive impact on beneficiaries, but limited financial resources for growth and expansion.
Marketing Analysis:
- Brand awareness: Limited brand recognition, hindering fundraising efforts and community engagement.
- Target audience: Potential donors, corporate partners, volunteers, and beneficiaries.
- Marketing channels: Social media, website, public relations, events, and collaborations.
Operational Analysis:
- Logistics and transportation: Challenges in managing food collection, storage, and distribution.
- Technology and analytics: Limited use of technology to optimize operations, track impact, and manage data.
- Human resources: Need for skilled staff, volunteers, and efficient management practices.
4. Recommendations
1. Expanding the Network:
- Strategic Partnerships: Develop partnerships with businesses, NGOs, and government agencies to expand food collection and distribution channels.
- Technology Integration: Invest in technology solutions for logistics management, route optimization, and real-time communication with partners and beneficiaries.
- Data-Driven Decision Making: Utilize data analytics to identify food waste hotspots, optimize collection routes, and track impact.
2. Diversifying Revenue Streams:
- Corporate Social Responsibility Programs: Partner with corporations on CSR initiatives, leveraging their resources and expertise.
- Social Enterprise Ventures: Develop social enterprise ventures, such as a food waste reduction consulting service or a sustainable food retail outlet.
- Surplus Food Redistribution Partnerships: Collaborate with food retailers to collect and redistribute surplus food, generating revenue and reducing waste.
3. Building a Strong Brand and Engaging the Community:
- Brand Building: Develop a strong brand identity, messaging, and visual communication strategy.
- Public Awareness Campaigns: Launch public awareness campaigns to educate the community about food waste and Food Angel's mission.
- Community Engagement Initiatives: Organize events, workshops, and volunteer opportunities to engage the community and build support.
5. Basis of Recommendations
These recommendations are based on a comprehensive analysis of Food Angel's current situation, considering its strengths, weaknesses, opportunities, and threats. They align with the organization's mission to reduce food waste and address food insecurity, while also emphasizing sustainability and long-term growth.
- Core competencies and consistency with mission: The recommendations focus on leveraging Food Angel's existing expertise in food rescue and redistribution, while expanding its reach and impact.
- External customers and internal clients: The recommendations address the needs of both beneficiaries and donors, ensuring the organization's value proposition remains relevant.
- Competitors: The recommendations aim to differentiate Food Angel from competitors by emphasizing its unique approach, technology integration, and community engagement.
- Attractiveness: The recommendations are expected to increase Food Angel's revenue, reduce operational costs, and enhance its brand reputation, leading to greater impact and sustainability.
6. Conclusion
Food Angel has a unique opportunity to become a leading force in tackling food waste and food insecurity in Hong Kong. By expanding its network, diversifying its revenue streams, and building a strong brand, Food Angel can achieve sustainable growth, increase its impact, and inspire others to join the movement towards a more sustainable food system.
7. Discussion
Alternatives:
- Focus solely on fundraising: While this could provide short-term financial stability, it would limit Food Angel's growth potential and long-term sustainability.
- Merging with another organization: This could provide access to resources and expertise, but it could also compromise Food Angel's identity and mission.
Risks and Key Assumptions:
- Economic downturn: A downturn could impact donations and partnerships, requiring Food Angel to adapt its strategy.
- Regulatory changes: Changes in regulations related to food safety and waste management could impact Food Angel's operations.
- Competition: Increased competition from other food banks and NGOs could require Food Angel to differentiate itself further.
8. Next Steps
- Phase 1 (Year 1): Develop a strategic plan outlining the implementation of the recommendations.
- Phase 2 (Year 2): Focus on building strategic partnerships, developing revenue-generating initiatives, and launching public awareness campaigns.
- Phase 3 (Year 3): Evaluate the impact of the implemented strategies, refine the model, and expand operations to new areas.
By implementing these recommendations, Food Angel can transform itself into a sustainable and impactful organization, creating a lasting legacy in the fight against food waste and food insecurity in Hong Kong.
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Case Description
Food Angel is a Hong Kong based social venture that recycles food into cooked meals for Hong Kong's poor. Founded by Gigi Tung, Food Angel has growth so a successful organisation employing over 200 paid staff and 20,000 volunteers who process over 10,000 meals and 200 food packs daily. Gigi believes her philosophy and leadership are working successfully. But going forward, as the charity expands, she wants to develop leadership from within. Can institutional culture, once established, be changed?
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