Harvard Case - Social Services
"Social Services" Harvard business case study is written by Denise Madigan. It deals with the challenges in the field of Negotiation. The case study is 2 page(s) long and it was first published on : Jan 10, 1993
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2. Background
**Brief summary of the case**Social Services is a case study that examines the challenges faced by non-profit organizations in the face of increasing demand for services and limited resources. The case focuses on the merger of two social service agencies, Fern Fort University and Willow Creek Community Center, and the subsequent challenges in integrating the two organizations' cultures, missions, and operations.
Main protagonists of the case study
- Fern Fort University is a private, non-profit university with a long history of providing social services to the community.
- Willow Creek Community Center is a non-profit community center that provides a variety of social services, including after-school programs, senior citizen services, and job training.
3. Analysis of the Case Study
Strategic analysis
The merger of Fern Fort University and Willow Creek Community Center was a strategic move designed to address the increasing demand for social services in the community. However, the merger also presented a number of challenges, including:
- Cultural differences: The two organizations had very different cultures, with Fern Fort University being more academic and Willow Creek Community Center being more community-based.
- Mission differences: The two organizations had different missions, with Fern Fort University focusing on education and Willow Creek Community Center focusing on providing social services.
- Operational differences: The two organizations had different operational models, with Fern Fort University being more centralized and Willow Creek Community Center being more decentralized.
Financial analysis
The merger of Fern Fort University and Willow Creek Community Center had a significant impact on the financial position of both organizations. The merger resulted in a combined budget of over $100 million, making the new organization one of the largest non-profit social service providers in the state. However, the merger also resulted in a number of financial challenges, including:
- Increased costs: The merger resulted in increased costs for both organizations, including the costs of integrating the two organizations' operations and the costs of providing additional services.
- Decreased revenue: The merger resulted in decreased revenue for both organizations, as some donors and clients were lost due to the merger.
Marketing analysis
The merger of Fern Fort University and Willow Creek Community Center had a significant impact on the marketing of both organizations. The merger created a new brand that was more visible and recognizable than either of the previous brands. However, the merger also presented a number of marketing challenges, including:
- Positioning: The new organization needed to be positioned in a way that appealed to both the academic and community-based audiences of the two previous organizations.
- Messaging: The new organization needed to develop a messaging strategy that communicated the benefits of the merger to both internal and external stakeholders.
Operational analysis
The merger of Fern Fort University and Willow Creek Community Center had a significant impact on the operations of both organizations. The merger resulted in a new organizational structure that was more centralized than either of the previous organizations. However, the merger also presented a number of operational challenges, including:
- Integration: The two organizations had to be integrated into a single, cohesive organization. This process was complex and time-consuming, and it required a great deal of effort from both organizations.
- Efficiency: The new organization needed to be more efficient than the two previous organizations. This required a number of changes to the way that the organization operated, including the implementation of new systems and processes.
4. Recommendaations
Based on the analysis of the case study, we recommend the following actions:
- Strategic actions:
- The new organization should develop a clear and concise strategic plan that outlines its mission, vision, and values.
- The new organization should identify its core competencies and focus on developing and leveraging those competencies.
- The new organization should develop a strong marketing plan that communicates its value proposition to both internal and external stakeholders.
- Financial actions:
- The new organization should develop a realistic budget that takes into account the costs and revenues of the merger.
- The new organization should explore ways to increase revenue, such as through fundraising and grants.
- The new organization should implement cost-cutting measures to improve its financial performance.
- Marketing actions:
- The new organization should develop a strong brand identity that is recognizable and appealing to both internal and external stakeholders.
- The new organization should develop a messaging strategy that communicates the benefits of the merger to both internal and external stakeholders.
- The new organization should implement a marketing plan that reaches its target audiences and communicates its value proposition.
- Operational actions:
- The new organization should develop a clear and concise organizational structure that outlines the roles and responsibilities of all employees.
- The new organization should implement new systems and processes to improve efficiency and effectiveness.
- The new organization should provide training and development opportunities for all employees to help them succeed in their new roles.
5. Basis of Recommendaations
The basis for our recommendations is as follows:
- Core competencies and consistency with mission: Our recommendations are based on the core competencies of the new organization and its mission to provide high-quality social services to the community.
- External customers and internal clients: Our recommendations take into account the needs of both external customers (clients) and internal clients (employees).
- Competitors: Our recommendations take into account the competitive landscape and the need for the new organization to differentiate itself from its competitors.
- Attractiveness ' quantitative measures if applicable (e.g., NPV, ROI, break-even, payback): Our recommendations are based on a quantitative analysis of the costs and benefits of the merger.
- Are all assumptions explicitly stated (e.g., needs, technology trends)' All assumptions are explicitly stated in the case study.
6. Conclusion
The merger of Fern Fort University and Willow Creek Community Center was a complex and challenging process. However, by following the recommendations outlined in this case study, the new organization can overcome the challenges it faces and achieve its mission of providing high-quality social services to the community.
7. Discussion
Outline other alternatives not selected.
Other alternatives that were considered but not selected include:
- No merger: This option would have left both organizations in their current state, with their own unique challenges and opportunities.
- Acquisition: This option would have involved one organization acquiring the other. This option was not selected because it would have been difficult to integrate the two organizations' cultures and missions.
- Partnership: This option would have involved the two organizations forming a partnership to provide services jointly. This option was not selected because it would have been difficult to manage the partnership and ensure that both organizations were working towards the same goals.
Discuss risks and key assumptions (use full disclosure, reference Options Grid) of your recommendation
The following are the risks and key assumptions of our recommendation:
- Risks:
- The merger may not be successful in achieving its goals.
- The merger may lead to conflict and disruption within the new organization.
- The merger may not be financially sustainable.
- Key assumptions:
- The two organizations will be able to successfully integrate their cultures and missions.
- The new organization will be able to develop and implement a successful strategic plan.
- The new organization will be able to achieve its financial goals.
8. Next Steps
The following are the next steps that the new organization should take:
- Develop a strategic plan: The new organization should develop a clear and concise strategic plan that outlines its mission, vision, and values.
- Implement the recommendations: The new organization should implement the recommendations outlined in this case study.
- Monitor progress: The new organization should monitor its progress and make adjustments as needed.
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Case Description
Allied, Benevolent, and Caring Services are three nonprofit social service providers competing for state social service funding. The state funding agency has decided to increase its annual budget but will provide additional funds only to a consortium of two or more providers. Each provider must decide whether to cooperate with the other providers in order to pursue state funds, and if so, how these funds should be divided among the cooperating providers.
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