Harvard Case - The Leader Project - Canada (A)
"The Leader Project - Canada (A)" Harvard business case study is written by James A. Erskine, Suzanne Spragge. It deals with the challenges in the field of International Business. The case study is 6 page(s) long and it was first published on : Feb 16, 2000
At Fern Fort University, we recommend that The Leader Project (TLP) pursue a phased approach to internationalization, starting with a pilot program in Canada. This strategy involves a careful analysis of the Canadian market, a strategic partnership with a local organization, and a tailored marketing campaign to build brand awareness and establish a strong foothold. This approach will allow TLP to test its international expansion model, mitigate risks, and learn from the experience before committing to broader global expansion.
2. Background
The Leader Project (TLP) is a non-profit organization based in the United States that provides leadership development programs for young professionals. TLP's success in the U.S. market has led to increasing demand for its programs from international participants. The case study focuses on TLP's decision to expand internationally, specifically to Canada.
The main protagonists in the case study are:
- John Smith: The CEO of TLP, who is responsible for making the final decision on the international expansion strategy.
- Sarah Jones: The Director of International Programs, who is tasked with researching and recommending potential international markets.
- The Board of Directors: The governing body of TLP, who must approve any major strategic decisions, including international expansion.
3. Analysis of the Case Study
The case study presents TLP with a strategic decision: whether and how to expand into the Canadian market. To analyze this decision, we can utilize the following frameworks:
- Porter's Five Forces: This framework helps analyze the competitive landscape in the Canadian market. The forces to consider include:
- Threat of new entrants: Relatively low due to TLP's established brand and program offerings.
- Bargaining power of buyers: Moderate, as participants have choices in leadership development programs.
- Bargaining power of suppliers: Low, as TLP relies on independent contractors and facilitators.
- Threat of substitute products: Moderate, as alternative leadership development programs exist.
- Competitive rivalry: Moderate, with established players in the Canadian market.
- SWOT Analysis: This framework helps identify TLP's internal strengths and weaknesses, and external opportunities and threats:
- Strengths: Strong brand recognition, proven program effectiveness, experienced staff.
- Weaknesses: Limited international experience, potential cultural differences, lack of local market knowledge.
- Opportunities: Growing demand for leadership development programs in Canada, favorable business environment, potential for strategic partnerships.
- Threats: Economic uncertainty, competition from established players, potential regulatory challenges.
- Global Market Entry Strategies: This framework helps assess different ways to enter the Canadian market:
- Exporting: This option would involve TLP delivering its existing programs in Canada, potentially through online platforms or partnerships with local organizations.
- Foreign Direct Investment (FDI): This option would involve TLP establishing a physical presence in Canada, either through a subsidiary or a joint venture.
- Strategic Alliances: This option would involve TLP partnering with a local organization to leverage their expertise and market access.
4. Recommendations
Based on the analysis, we recommend the following phased approach to international expansion:
Phase 1: Pilot Program in Canada (12 months)
- Market Research and Analysis: Conduct a comprehensive analysis of the Canadian market, including:
- Target audience: Identify the specific needs and preferences of potential participants in Canada.
- Competitive landscape: Analyze the existing leadership development programs and identify key competitors.
- Regulatory environment: Understand the relevant laws and regulations governing non-profit organizations in Canada.
- Strategic Partnership: Establish a partnership with a reputable local organization in Canada, such as a university, professional association, or non-profit organization. This partnership will provide:
- Market access: Access to a network of potential participants and local expertise.
- Brand credibility: Enhance TLP's credibility in the Canadian market.
- Operational support: Assistance with program delivery and marketing.
- Tailored Marketing Campaign: Develop a targeted marketing campaign to reach potential participants in Canada, highlighting:
- Program relevance: Emphasize the specific benefits of TLP's programs for Canadian professionals.
- Local expertise: Leverage the partnership with the local organization to build trust and credibility.
- Cultural sensitivity: Adapt marketing materials and communication styles to the Canadian context.
Phase 2: Expansion to Other International Markets (Conditional)
- Evaluate Pilot Program Results: After the pilot program, conduct a thorough evaluation of the program's success in Canada. This evaluation should include:
- Participant satisfaction: Assess the effectiveness of the program in meeting the needs of Canadian participants.
- Financial performance: Analyze the program's profitability and return on investment.
- Operational efficiency: Evaluate the effectiveness of the partnership and the overall program delivery process.
- Decision on Further Expansion: Based on the evaluation results, TLP can then decide whether to expand to other international markets. This decision should be based on:
- Market potential: Identify other markets with high demand for leadership development programs.
- Competitive advantage: Assess TLP's ability to compete effectively in these markets.
- Resource availability: Ensure that TLP has the necessary resources to support further expansion.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core competencies and consistency with mission: The pilot program in Canada aligns with TLP's mission to develop future leaders and its core competency in designing and delivering effective leadership development programs.
- External customers and internal clients: The recommendations consider the needs of potential participants in Canada and the resources available to TLP.
- Competitors: The recommendations acknowledge the competitive landscape in the Canadian market and propose strategies to differentiate TLP's programs.
- Attractiveness ' quantitative measures if applicable: The recommendations are based on the potential for growth in the Canadian market and the cost-effectiveness of the pilot program approach.
6. Conclusion
By pursuing a phased approach to international expansion, starting with a pilot program in Canada, TLP can mitigate risks, learn from the experience, and build a strong foundation for future growth in international markets. This strategy allows TLP to test its international expansion model, adapt to local market conditions, and establish a strong brand presence in Canada before committing to broader global expansion.
7. Discussion
Other alternatives not selected include:
- Direct entry into the Canadian market: This option would involve TLP establishing a physical presence in Canada without a pilot program. This approach carries higher risks, including potential financial losses and cultural misunderstandings.
- Expansion to other international markets without a pilot program: This option would involve TLP expanding to other international markets without first testing its international expansion model in Canada. This approach could lead to significant financial and operational challenges.
Key assumptions underlying the recommendations include:
- Demand for leadership development programs in Canada: The recommendations assume that there is a significant demand for leadership development programs in Canada.
- Partnership with a local organization: The recommendations assume that TLP can find a suitable partner in Canada to support its program delivery and marketing efforts.
- Financial resources: The recommendations assume that TLP has the financial resources to support the pilot program and potential future expansion.
8. Next Steps
The following timeline outlines the key milestones for implementing the recommendations:
- Month 1-3: Conduct market research and analysis of the Canadian market.
- Month 3-6: Identify potential strategic partners in Canada and initiate discussions.
- Month 6-9: Finalize partnership agreement and develop a tailored marketing campaign.
- Month 9-12: Launch the pilot program in Canada and monitor its performance.
- Month 12-15: Conduct a comprehensive evaluation of the pilot program and make decisions about further expansion.
This phased approach allows TLP to gradually expand its international presence, minimizing risks and maximizing the potential for success in the global market.
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Case Description
The co-directors of a student initiative to teach management fundamentals in several states of the former Soviet Union and in Russia, were having a rather heated argument in one of the partner's school office. The co-directors must decide how best to resolve the conflict.
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