Harvard Case - 2b Design: A Creative Social Business in Lebanon
"2b Design: A Creative Social Business in Lebanon" Harvard business case study is written by Alexandra Tarazi, Dima Jamali. It deals with the challenges in the field of Organizational Behavior. The case study is 9 page(s) long and it was first published on : Oct 26, 2011
At Fern Fort University, we recommend that 2b Design adopt a hybrid growth strategy, combining organic expansion with strategic partnerships and targeted acquisitions. This approach will leverage their existing strengths in design and social impact while mitigating risks associated with rapid expansion. We propose a phased implementation plan, prioritizing building a robust internal infrastructure, fostering a strong organizational culture, and establishing a clear vision for the future.
2. Background
2b Design is a Lebanese social enterprise that employs marginalized women in the production of handcrafted furniture and home d'cor. Founded by two passionate individuals, the company has achieved significant success in generating income for its employees and promoting social change. However, 2b Design faces challenges in scaling its operations, maintaining financial sustainability, and navigating the complexities of a rapidly evolving market.
The main protagonists of the case study are:
- Rania El-Khoury: Co-founder and CEO, passionate about social impact and driven by a desire to empower women.
- Karim El-Khoury: Co-founder and Head of Design, responsible for product development and creative direction.
- The 2b Design team: A diverse group of women, each with unique skills and experiences, who are committed to the company's mission.
3. Analysis of the Case Study
This case study can be analyzed through the lens of Organizational Behavior, focusing on the interplay of leadership styles, organizational culture, team dynamics, and motivation theories.
Leadership Styles: Rania and Karim exhibit a transformational leadership style, inspiring their team through shared values and a clear vision. However, their entrepreneurial spirit and focus on growth may lead to challenges in delegating tasks and fostering a more collaborative decision-making process.
Organizational Culture: 2b Design fosters a strong community-oriented culture built on shared values of empowerment, social responsibility, and creativity. This culture is a key asset, attracting talented individuals and promoting employee engagement. However, the company needs to address potential issues related to work-life balance and employee burnout as they scale their operations.
Team Dynamics: The 2b Design team is characterized by high levels of commitment and dedication to the company's mission. However, the lack of formal training and development programs may hinder their ability to adapt to new challenges and take on leadership roles.
Motivation Theories: The company effectively utilizes intrinsic motivation by providing a meaningful purpose and a sense of belonging. However, they need to explore additional extrinsic motivation strategies, such as performance-based incentives and career development opportunities, to retain talent and foster long-term growth.
4. Recommendations
Phase 1: Building a Strong Foundation (Year 1)
- Develop a Formal Organizational Structure: Implement a clear hierarchy with defined roles and responsibilities, promoting cross-functional management and fostering a more collaborative work environment.
- Invest in Employee Training and Development: Offer workshops and training programs to enhance skills, build leadership capabilities, and promote employee engagement.
- Formalize Decision-Making Processes: Establish transparent decision-making processes, involving key stakeholders and fostering a culture of organizational learning.
- Develop a Comprehensive HR Strategy: Implement a robust HR system addressing recruitment, performance management, compensation and benefits, and employee well-being.
- Strengthen Financial Management: Implement a rigorous financial planning and budgeting system to ensure long-term sustainability and support strategic growth.
Phase 2: Expanding Reach and Impact (Year 2-3)
- Explore Strategic Partnerships: Collaborate with NGOs, retailers, and other social enterprises to expand market reach and leverage complementary resources.
- Develop a Digital Marketing Strategy: Utilize online platforms to reach a wider audience, promote the brand, and engage with potential customers.
- Explore Targeted Acquisitions: Consider acquiring smaller social enterprises with complementary skills and expertise to expand product offerings and geographic reach.
- Invest in Technology and Analytics: Implement data-driven decision-making to optimize production processes, improve efficiency, and track social impact.
Phase 3: Sustainable Growth and Innovation (Year 4 onwards)
- Develop a Robust Innovation Strategy: Foster a culture of creativity and experimentation, encouraging employees to contribute ideas and develop new product lines.
- Explore International Expansion: Consider expanding into new markets with a focus on cross-cultural business relations and adapting products and services to local needs.
- Establish a Strong Corporate Social Responsibility Framework: Integrate social impact into all aspects of the business, ensuring transparency and accountability in all operations.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies and Consistency with Mission: The recommendations leverage 2b Design's strengths in design, social impact, and community building while remaining true to its mission of empowering marginalized women.
- External Customers and Internal Clients: The recommendations address the needs of both external customers seeking unique and ethically produced products and internal clients (employees) seeking a fulfilling and rewarding work experience.
- Competitors: The recommendations consider the competitive landscape, focusing on differentiation through social impact, design innovation, and a strong brand identity.
- Attractiveness - Quantitative Measures: The recommendations prioritize financial sustainability through a combination of organic growth, strategic partnerships, and targeted acquisitions, aiming to achieve a positive return on investment.
- Assumptions: The recommendations assume a stable political and economic environment in Lebanon, continued support from stakeholders, and the availability of skilled talent.
6. Conclusion
2b Design has the potential to become a leading social enterprise in Lebanon and beyond. By adopting a hybrid growth strategy, focusing on building a strong internal foundation, and fostering a culture of innovation and social responsibility, the company can achieve sustainable growth, expand its impact, and create a lasting legacy of empowerment and social change.
7. Discussion
Other alternatives not selected include:
- Rapid Expansion: This option carries significant risks, including financial instability, operational challenges, and potential dilution of the company's social mission.
- Maintaining Status Quo: This option limits growth potential and may not be sustainable in the long term, as the company faces increasing competition and market pressures.
Key assumptions and risks associated with the recommended approach include:
- Political and Economic Stability: The success of the plan depends on a stable political and economic environment in Lebanon.
- Availability of Talent: The company needs to attract and retain skilled talent to support its growth ambitions.
- Market Demand: The success of the expansion strategy depends on continued demand for 2b Design's products and services.
8. Next Steps
The following steps are crucial for implementing the recommendations:
- Develop a detailed implementation plan: This plan should outline specific actions, timelines, and resources required for each phase of the strategy.
- Assemble a cross-functional team: This team should represent key departments and stakeholders, ensuring alignment and collaboration throughout the implementation process.
- Communicate the strategy to employees: Transparency and open communication are essential to build trust and ensure employee buy-in.
- Monitor progress and adjust as needed: Regular monitoring and evaluation are crucial to ensure the strategy remains aligned with the company's goals and adapts to changing market conditions.
By taking these steps, 2b Design can transform itself from a successful social enterprise to a leading force in the global market, empowering women, promoting sustainable design, and making a positive impact on the world.
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Case Description
The year 2006 marked the beginning of 2b Design, a social business, established in Lebanon, and specialized in creating handmade furniture and decorative pieces. Raja Moubarak and his wife, Benedicte de Blavous, crafted their business venture around a focused social mission namely, preserving disappearing art, architecture and heritage through artistic creations and employing marginalized people particularly the handicapped and the unemployable. By collecting and using wrought iron and wooden pieces, found in scrap yards, from old Lebanese homes dating back to the Ottoman Empire, 2b Design managed to preserve a heritage that was increasingly at risk of extinction while touching and improving troubled lives and maximizing positive environmental impact and externalities through recycling and reusing scrap material. 2b Design's mission was eloquently articulated as to "restore the unseen beauty of the broken." By the broken, it referred to the Middle East's disappearing traditional heritage and to those people whose socioeconomic status or disabilities hindered them from leading a decent life. 2b Design's vision was to replicate the same concept in different countries beyond the borders of Lebanon. The founders were keen on exploring various channels that would gradually scale the impact of their business while meeting the dual challenge of long-term sustainability and transforming lives.
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