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Harvard Case - ATREE: Social Entrepreneurship in Vembanad

"ATREE: Social Entrepreneurship in Vembanad" Harvard business case study is written by Nobin Thomas, Ajith K. Thomas, Irene Johnson. It deals with the challenges in the field of Organizational Behavior. The case study is 10 page(s) long and it was first published on : Jun 20, 2019

At Fern Fort University, we recommend that ATREE implement a strategic plan focused on building a sustainable and impactful social enterprise model. This plan should prioritize strengthening organizational structure, fostering a culture of innovation and collaboration, and leveraging technology and data to enhance operational efficiency and outreach.

2. Background

ATREE, a non-profit organization dedicated to environmental conservation and sustainable development, faces challenges in scaling its operations and ensuring long-term financial stability. The case study highlights the organization's efforts to establish a social enterprise, 'Vembanad,' to generate revenue through eco-tourism and sustainable farming practices. However, the initiative faces hurdles related to organizational structure, leadership, and resource management.

The main protagonists are:

  • Dr. K.V. Krishnakumar: Founder and Director of ATREE, a visionary leader with a strong commitment to environmental conservation.
  • Dr. S. P. Mehta: The Head of the Vembanad project, a passionate and experienced conservationist with a strong understanding of the local ecosystem.
  • The ATREE team: A group of dedicated professionals with diverse skills and experience in conservation, research, and community engagement.

3. Analysis of the Case Study

The case study presents a complex scenario requiring a multi-faceted approach. To analyze the situation effectively, we can utilize the following frameworks:

  • Organizational Structure and Design: ATREE's current organizational structure, with a focus on research and conservation, may not be optimal for managing a commercial enterprise like Vembanad. The lack of clear roles and responsibilities within the Vembanad project and the absence of a dedicated management team for the social enterprise contribute to inefficiencies and communication breakdowns.
  • Leadership Styles: Dr. Krishnakumar's visionary leadership, while crucial for ATREE's success, may not be the most effective style for managing a commercial venture. A more collaborative and results-oriented leadership style, with a focus on empowering team members and fostering a culture of accountability, would be more conducive to Vembanad's growth.
  • Organizational Culture: ATREE's strong commitment to research and conservation may clash with the commercial objectives of Vembanad. A shift in organizational culture is necessary to embrace a more entrepreneurial mindset, encouraging innovation, risk-taking, and customer-centricity.
  • Change Management: Implementing a successful social enterprise model requires effective change management strategies. ATREE needs to address the potential resistance to change among staff members, clearly communicate the vision and benefits of the Vembanad project, and provide adequate training and support to ensure a smooth transition.
  • Financial Management: ATREE needs to develop a robust financial management system for Vembanad, including a comprehensive business plan, budgeting, and performance monitoring. This will ensure financial transparency, accountability, and sustainability.

4. Recommendations

To address the challenges faced by ATREE and ensure the success of the Vembanad project, we recommend the following:

1. Establish a Dedicated Management Team for Vembanad:

  • Create a separate management team for Vembanad with clear roles, responsibilities, and reporting structures.
  • Recruit individuals with experience in entrepreneurship, business development, and social enterprise management.
  • Empower the team to make decisions and manage operations independently, while ensuring alignment with ATREE's overall mission and values.

2. Develop a Comprehensive Business Plan for Vembanad:

  • Define clear objectives, target markets, revenue streams, and financial projections for Vembanad.
  • Conduct market research to identify potential customer segments and understand their needs and preferences.
  • Develop a marketing strategy to promote Vembanad's unique offerings and attract tourists and customers.

3. Foster a Culture of Innovation and Collaboration:

  • Encourage a culture of experimentation and risk-taking within ATREE, particularly within the Vembanad team.
  • Implement cross-functional teams to facilitate collaboration and knowledge sharing between research, conservation, and business development teams.
  • Provide training and development opportunities to enhance the skills and capabilities of staff members.

4. Leverage Technology and Data Analytics:

  • Utilize technology to enhance operational efficiency, streamline processes, and improve customer service.
  • Implement a data management system to collect, analyze, and interpret data related to Vembanad's performance.
  • Use data-driven insights to inform decision-making and drive continuous improvement.

5. Strengthen Financial Management and Reporting:

  • Develop a comprehensive financial management system for Vembanad, including budgeting, accounting, and reporting.
  • Ensure transparency and accountability in financial management practices.
  • Establish clear performance metrics to track the financial sustainability of Vembanad.

6. Build Strong Community Partnerships:

  • Engage with local communities to ensure their participation and support for Vembanad's activities.
  • Develop sustainable livelihood programs for local residents, incorporating their traditional knowledge and practices.
  • Create opportunities for community members to benefit from Vembanad's economic activities.

5. Basis of Recommendations

Our recommendations are based on the following considerations:

  • Core Competencies and Consistency with Mission: The recommendations align with ATREE's core competencies in environmental conservation and research while ensuring the sustainability and impact of the Vembanad project.
  • External Customers and Internal Clients: The recommendations address the needs of both external customers (tourists and consumers) and internal clients (ATREE staff and stakeholders).
  • Competitors: The recommendations consider the competitive landscape of eco-tourism and sustainable agriculture, highlighting the need for differentiation and innovation to attract customers.
  • Attractiveness: The recommendations are expected to enhance the financial viability of Vembanad, leading to increased revenue generation and long-term sustainability.

6. Conclusion

By implementing these recommendations, ATREE can transform Vembanad into a successful and impactful social enterprise model. This will not only generate revenue for the organization but also contribute to the conservation of the Vembanad Lake ecosystem and the economic empowerment of local communities.

7. Discussion

Other alternatives not selected include:

  • Outsource management of Vembanad to a private company: This option could potentially lead to faster growth and greater financial stability but could also compromise ATREE's control over the project and its social mission.
  • Focus solely on research and conservation: This option would maintain ATREE's core focus but would not address the financial challenges and the need for sustainable revenue generation.

The main risks associated with our recommendations include:

  • Resistance to change: ATREE staff may resist adopting a more entrepreneurial mindset and implementing new management practices.
  • Financial uncertainty: The success of Vembanad is not guaranteed, and there is a risk of financial losses.
  • Competition: The eco-tourism and sustainable agriculture markets are becoming increasingly competitive.

Key assumptions underlying our recommendations include:

  • Commitment to the social mission: ATREE remains committed to its mission of environmental conservation and sustainable development.
  • Availability of resources: ATREE has the necessary financial and human resources to implement the recommendations.
  • Market demand: There is sufficient market demand for the products and services offered by Vembanad.

8. Next Steps

To implement our recommendations, ATREE should take the following steps:

  • Form a steering committee: Establish a steering committee to oversee the implementation of the recommendations.
  • Develop a detailed implementation plan: Create a detailed plan outlining the specific actions, timelines, and resources required for each recommendation.
  • Communicate the vision: Communicate the vision and benefits of the Vembanad project to all stakeholders.
  • Monitor progress: Regularly monitor the progress of the implementation plan and make adjustments as needed.

By taking these steps, ATREE can successfully transform Vembanad into a sustainable and impactful social enterprise that contributes to both environmental conservation and community development.

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Case Description

The backwaters of Vembanad, in Kerala, India, were a renowned tourist attraction, known for their beautiful waters, schools of fish, and the people who lived along the shores. However, the exploitation of resources had taken a toll on the lake and its ecosystem. Pollution and the decline of the rich fish population had left the community impoverished. In 2008, the non-profit social enterprise Ashoka Trust for Research in Ecology and Environment (ATREE) had launched an innovative educational and self-regulatory program that had begun to improve the ecosystem. However, by 2018, the resurgence of the fish population had also attracted a fisheries-based food company that wanted to begin processing and exporting fish caught in Vembanad. The immediate employment benefits were attractive to the impoverished local fishers, but the long-term consequences for the region and its community were severe. How should ATREE respond to this pending crisis? Should ATREE use incoming money for immediate relief for Vembanad's stakeholders or should it use the money for long-term benefit by focusing on further conservation efforts?

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