Harvard Case - LARSENS CAMP: CRISIS IN KENYA'S ELEPHANT PARADISE
"LARSENS CAMP: CRISIS IN KENYA'S ELEPHANT PARADISE" Harvard business case study is written by Benoit Leleux, Aoife Hegarty. It deals with the challenges in the field of General Management. The case study is 24 page(s) long and it was first published on : Dec 31, 2009
At Fern Fort University, we recommend a multi-faceted approach for Larsen's Camp to address the crisis, restore its reputation, and ensure the long-term sustainability of its operations while upholding ethical principles and environmental responsibility. This strategy involves a combination of immediate crisis management, long-term strategic planning, and a commitment to stakeholder engagement, transparency, and sustainable practices.
2. Background
Larsen's Camp, a renowned safari lodge in Kenya, faces a critical situation due to a recent elephant poaching incident. The incident has severely damaged the camp's reputation, jeopardized its relationship with local communities, and raised concerns about its commitment to conservation. The case study highlights the conflict between economic interests, environmental responsibility, and the need to maintain a positive brand image. The main protagonists are:
- Larsen: The owner of the camp, facing the challenge of balancing his business goals with ethical and environmental concerns.
- The local Maasai community: Dependent on the camp for employment and economic opportunities, but also concerned about the impact of tourism on their land and wildlife.
- The Kenya Wildlife Service (KWS): Responsible for protecting wildlife and enforcing conservation laws.
- The international community: Concerned about the fate of elephants and the impact of poaching on biodiversity.
3. Analysis of the Case Study
This case study can be analyzed using a framework that incorporates strategic, ethical, and operational considerations:
Strategic Analysis:
SWOT Analysis:
- Strengths: Established reputation, strong brand, experienced staff, unique location.
- Weaknesses: Lack of proactive conservation efforts, limited community engagement, potential for reputational damage.
- Opportunities: Implement sustainable practices, increase community involvement, leverage digital marketing, expand eco-tourism offerings.
- Threats: Poaching, declining elephant population, negative media coverage, changing tourist preferences.
Porter's Five Forces:
- Threat of new entrants: Relatively high due to the growing tourism industry in Kenya.
- Bargaining power of buyers: Moderate, as tourists have options for other safari destinations.
- Bargaining power of suppliers: Low, as the camp relies on local suppliers for services and goods.
- Threat of substitute products: Moderate, as tourists can choose alternative forms of travel or entertainment.
- Competitive rivalry: High, as the safari industry is competitive with numerous lodges and camps.
Ethical Analysis:
- Corporate Social Responsibility (CSR): The case highlights the need for Larsen's Camp to demonstrate a strong commitment to CSR, including ethical sourcing, fair labor practices, and environmental protection.
- Business Ethics: The poaching incident exposes a lack of ethical decision-making and raises questions about Larsen's Camp's commitment to responsible tourism.
Operational Analysis:
- Operations Strategy: The camp needs to review its operations to ensure compliance with environmental regulations and minimize its impact on the ecosystem.
- Supply Chain Management: The camp should implement a robust supply chain management system to ensure ethical sourcing of goods and services.
- Human Resource Management: The camp needs to invest in training and development for its staff, promoting ethical behavior and environmental awareness.
4. Recommendations
Immediate Actions:
Crisis Management:
- Acknowledge the incident: Issue a public apology and express commitment to addressing the issue.
- Conduct a thorough investigation: Identify the root causes of the poaching incident and take appropriate disciplinary action.
- Collaborate with KWS: Cooperate with authorities to investigate the incident and prevent future occurrences.
- Communicate transparently: Provide regular updates to stakeholders, including the media, local communities, and customers.
Reputation Management:
- Engage in damage control: Address negative media coverage and proactively promote positive stories about the camp's commitment to conservation.
- Re-establish trust: Demonstrate a genuine commitment to ethical practices and sustainable tourism.
Long-Term Strategies:
Strategic Planning:
- Develop a comprehensive conservation plan: Outline specific initiatives to protect elephants and their habitat.
- Implement a robust anti-poaching strategy: Collaborate with KWS and local communities to prevent poaching.
- Promote responsible tourism: Educate tourists about the importance of conservation and encourage responsible behavior.
Community Engagement:
- Foster a strong relationship with the Maasai community: Invest in community development projects, provide employment opportunities, and ensure fair compensation for land use.
- Create a shared vision: Work with the community to develop a sustainable tourism model that benefits both the camp and the local population.
Sustainability Practices:
- Adopt eco-friendly practices: Minimize waste, conserve water and energy, and use sustainable materials.
- Promote biodiversity: Support conservation efforts and contribute to the protection of endangered species.
- Invest in green technology: Implement renewable energy sources and reduce the camp's carbon footprint.
Innovation and Technology:
- Leverage technology for conservation: Utilize drones, cameras, and other technology to monitor wildlife and detect poaching activities.
- Enhance guest experience: Use technology to provide interactive experiences and promote educational content about conservation.
Organizational Change:
- Develop a strong corporate governance framework: Ensure transparency, accountability, and ethical decision-making.
- Promote a culture of sustainability: Integrate environmental and social responsibility into all aspects of the camp's operations.
- Invest in employee training: Educate staff about ethical practices, conservation efforts, and the importance of community engagement.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies and Mission: The recommendations align with the camp's core competencies in hospitality and tourism while emphasizing its commitment to conservation and ethical practices.
- External Customers and Internal Clients: The recommendations address the concerns of tourists, local communities, and employees, fostering trust and positive relationships.
- Competitors: The recommendations aim to differentiate Larsen's Camp from competitors by showcasing its commitment to sustainability and responsible tourism.
- Attractiveness: The recommendations are expected to enhance the camp's long-term profitability by attracting environmentally conscious tourists, strengthening its brand image, and reducing operational costs through sustainable practices.
6. Conclusion
By implementing these recommendations, Larsen's Camp can overcome the current crisis, restore its reputation, and establish itself as a leader in sustainable tourism. This approach will require a commitment to ethical practices, community engagement, and innovative conservation strategies. The success of this plan depends on Larsen's willingness to embrace change, prioritize long-term sustainability, and demonstrate a genuine commitment to conservation.
7. Discussion
Alternative Options:
- Ignoring the crisis: This option would likely lead to further reputational damage and loss of business.
- Focusing solely on immediate crisis management: This approach would not address the underlying issues and could lead to a repeat of the incident.
- Selling the camp: This option would be a drastic measure and would not address the broader issues of conservation and community engagement.
Risks and Key Assumptions:
- Implementation challenges: Implementing these recommendations requires significant resources, time, and commitment.
- Community resistance: Some members of the Maasai community may resist the proposed changes.
- Poaching persists: Despite efforts to combat poaching, the threat may remain.
Options Grid:
| Option | Advantages | Disadvantages | Risks |
|---|---|---|---|
| Implement recommendations | Long-term sustainability, improved reputation, community engagement | Requires significant resources and commitment | Implementation challenges, community resistance, poaching persists |
| Ignore the crisis | Minimal effort | Further reputational damage, loss of business | Significant financial and reputational losses |
| Focus on immediate crisis management | Quick response | Does not address underlying issues | Repeat of the incident, long-term damage |
| Sell the camp | Immediate financial gain | Loss of control, potential for exploitation | Ethical concerns, impact on community |
8. Next Steps
Timeline:
- Months 1-3: Implement immediate crisis management actions, including investigation, communication, and reputation management.
- Months 3-6: Develop and implement a comprehensive conservation plan, engage with the Maasai community, and begin implementing sustainable practices.
- Months 6-12: Continue to monitor progress, adapt strategies as needed, and promote the camp's commitment to sustainability.
Key Milestones:
- Public apology and commitment to addressing the poaching incident.
- Completion of the investigation and disciplinary action.
- Establishment of a collaborative partnership with KWS.
- Development of a comprehensive conservation plan.
- Implementation of sustainable practices.
- Establishment of a community development fund.
- Launch of a marketing campaign highlighting the camp's commitment to sustainability.
By taking these steps, Larsen's Camp can transform itself from a crisis-stricken business to a model of responsible tourism, contributing to the conservation of Kenya's wildlife and the well-being of its local communities.
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Case Description
The chain would be the latest addition to Grenadier's portfolio. Rohan hoped it would not be plagued by the occupancy problems that Larsens Camp was experiencing - one of the three properties that made up Wilderness Lodges, the company's other luxury hospitality business. The tourist trade in Kenya had been hit by the double whammy of political violence followed by the credit crunch and global recession, both of which had been nothing short of disastrous for the hospitality business. The tourism crisis, in turn, led to a renewal of public debate around the sustainable management of Kenya's natural resources. Some operators saw an opportunity to push for a relaxation of existing rules for establishing hotels and resorts in and around nature reserves, which would create new jobs and increase tax revenues for the state and local councils. However, nature preservationists and environmental NGOs wanted to protect the animal sanctuaries and the local communities that often lost their ancestors' lands to the nature reserves without getting much in return. In addition to getting the new venture off the ground and taking the risk of stepping on the toes of established players, Rohan needed to tackle these other challenges: How could the group rebuild a value proposition for tourists and restore occupancy rates at Larsens Camp? What was the best way to restructure the company to ensure financial stability? How could it find the proper balance between its business and the environment, thus ensuring the future of its resorts?
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