Harvard Case - Tatiana Gschwend at the Head of Familitet: A Russian Social Innovation and Family Services Pioneer
"Tatiana Gschwend at the Head of Familitet: A Russian Social Innovation and Family Services Pioneer" Harvard business case study is written by Ekaterina Turkina. It deals with the challenges in the field of International Business. The case study is 19 page(s) long and it was first published on : Dec 1, 2016
At Fern Fort University, we recommend that Tatiana Gschwend focus on a growth strategy that leverages Familitet's strong foundation in family services and social innovation while expanding its reach and impact. This strategy should prioritize internationalization through strategic partnerships, global market entry strategies, and international marketing efforts, while remaining committed to Familitet's core values of social responsibility and community empowerment.
2. Background
This case study focuses on Tatiana Gschwend, the founder and CEO of Familitet, a Russian social enterprise dedicated to providing family services and promoting social innovation. Familitet has established a strong reputation for its innovative programs, including its 'Family Centers' that offer a range of services from childcare to family counseling. Gschwend is now facing the challenge of scaling her organization to meet growing demand and expand its reach beyond Russia.
The main protagonist is Tatiana Gschwend, a passionate and visionary leader who has successfully established Familitet as a leading social enterprise in Russia. She is now seeking to navigate the complexities of international expansion while maintaining the organization's core values and social mission.
3. Analysis of the Case Study
This case study can be analyzed through the lens of several frameworks:
1. Porter's Five Forces:
- Threat of new entrants: The social services sector is relatively open to new entrants, but Familitet's established reputation and strong brand could create a barrier.
- Bargaining power of buyers: Families are price-sensitive, but Familitet's unique services and focus on social impact could differentiate it.
- Bargaining power of suppliers: Familitet's reliance on local partners and volunteers could be a potential challenge, but its strong reputation could attract talent.
- Threat of substitute products: Other social services organizations and government programs could be substitutes, but Familitet's holistic approach and focus on innovation could create a competitive advantage.
- Competitive rivalry: The social services sector is increasingly competitive, but Familitet's focus on social innovation and international expansion could set it apart.
2. SWOT Analysis:
- Strengths: Strong brand reputation, innovative programs, dedicated team, strong social impact, and a proven business model.
- Weaknesses: Limited international experience, potential language and cultural barriers, and reliance on local partnerships.
- Opportunities: Growing demand for family services globally, potential for strategic partnerships, and access to new markets and funding sources.
- Threats: Economic instability, political risks in emerging markets, and competition from established international players.
3. Ansoff Matrix:
- Market Penetration: Strengthening Familitet's position in Russia through expanded services and outreach programs.
- Market Development: Expanding into new geographic markets, particularly in emerging economies with similar social needs.
- Product Development: Developing new innovative programs and services to address evolving family needs.
- Diversification: Exploring new business models and partnerships to expand Familitet's impact beyond family services.
4. Recommendations
To achieve sustainable growth and international expansion, Familitet should implement the following recommendations:
1. Develop a Clear Internationalization Strategy:
- Define Target Markets: Conduct thorough foreign market analysis to identify countries with high demand for family services and a favorable regulatory environment. Prioritize countries with similar social and cultural values to Familitet's core mission.
- Develop Global Market Entry Strategies: Consider joint ventures, strategic alliances, and franchising models to leverage local expertise and minimize risk.
- Establish a Global Presence: Focus on establishing a strong brand management strategy to build recognition and trust in international markets.
2. Leverage Technology and Innovation:
- Develop a Digital Platform: Create a user-friendly online platform to offer services remotely and expand reach to a wider audience.
- Embrace Digital Marketing: Utilize global marketing strategies, including social media and online advertising, to reach potential clients and partners.
- Promote Innovation: Continue to develop innovative programs and services that address evolving family needs and adapt to local contexts.
3. Foster Strong Partnerships:
- Build Strategic Alliances: Collaborate with international NGOs, government agencies, and private sector organizations to leverage resources and expertise.
- Develop Local Partnerships: Establish strong relationships with local organizations and communities to ensure program effectiveness and cultural sensitivity.
- Engage in International Collaboration: Participate in international conferences and workshops to share best practices and build relationships with potential partners.
4. Prioritize Corporate Social Responsibility:
- Maintain Ethical Standards: Adhere to international business ethics and corporate governance principles to maintain a positive reputation and build trust.
- Promote Sustainability: Integrate environmental sustainability practices into all operations and programs.
- Empower Local Communities: Prioritize community engagement and empower local stakeholders to drive positive social change.
5. Implement a Robust Risk Management Framework:
- Identify and Mitigate Risks: Conduct thorough geopolitical risk analysis to assess potential challenges and develop mitigation strategies.
- Manage Financial Risks: Develop a sound finance and investing strategy to ensure financial sustainability and mitigate exchange rate risk.
- Address Operational Risks: Implement effective operations strategy and supply chain management practices to ensure efficient and effective delivery of services.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core competencies and consistency with mission: Familitet's core competencies lie in its social innovation, program development, and community engagement. These recommendations leverage these strengths while expanding the organization's reach and impact.
- External customers and internal clients: The recommendations address the needs of both families seeking services and the organization's team members, ensuring a sustainable and inclusive approach to growth.
- Competitors: The recommendations differentiate Familitet from competitors by focusing on innovation, internationalization, and social impact.
- Attractiveness ' quantitative measures if applicable: The recommendations are expected to generate positive returns on investment through increased revenue, expanded reach, and enhanced brand reputation.
6. Conclusion
By implementing these recommendations, Familitet can achieve sustainable growth and expand its impact on a global scale. The organization's strong foundation in social innovation, its commitment to community empowerment, and its ability to adapt to local contexts will be key drivers of success in international markets.
7. Discussion
Other alternatives not selected include:
- Mergers and acquisitions: While this could provide rapid expansion, it may compromise Familitet's core values and create integration challenges.
- Focusing solely on market penetration in Russia: This would limit growth potential and miss the opportunity to leverage Familitet's expertise in a global context.
Key assumptions of this recommendation include:
- Continued demand for family services globally: The demand for family services is expected to grow in emerging economies, particularly in areas with rapid urbanization and social change.
- Availability of suitable partners and funding sources: Familitet will need to identify and secure partnerships with organizations that share its values and provide access to funding and expertise.
- Ability to adapt to local contexts: Familitet will need to adapt its programs and services to meet the specific needs of different cultures and communities.
8. Next Steps
To implement these recommendations, Familitet should:
- Develop a detailed internationalization plan: This plan should include specific target markets, market entry strategies, and financial projections.
- Establish a dedicated international team: This team should have expertise in international business, cross-cultural management, and global marketing.
- Pilot programs in selected markets: This will allow Familitet to test its model and refine its approach before scaling up operations.
- Secure funding for international expansion: This may involve seeking grants, attracting investors, or exploring partnerships with international organizations.
By taking these steps, Tatiana Gschwend can successfully guide Familitet towards a future of global impact and social change.
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Case Description
The case tells the story of Familitet, a small social enterprise in Ryazan, Russia, and its CEO, Tatiana Gschwend. In the post-Soviet world, where institutions are still very traditional, Familitet fills certain gaps. By offering classes in family and perinatal yoga, speech therapy, and social skills; organizing workshops on marital and parental psychology, breastfeeding, and anthropology; and offering the support of a midwife, Familitet has made its mark as a trail blazer. The case describes events that took place in 2015, when Familitet was experiencing the impact of the economic crisis caused by Western sanctions. That same year, the company had been approached by a Kazakh company wishing to explore the possibility of opening a franchise - an opportunity that could be advantageous to Familitet both during the crisis and over the long term. Tatiana and her team had to decide how to respond to the crisis by adapting their business model in Ryazan and choosing the optimal business model for the Kazakh market.
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