Harvard Case - The Akal Academies
"The Akal Academies" Harvard business case study is written by Amarpreet Singh Ghura, Vijaya Sherry Chand. It deals with the challenges in the field of Social Enterprise. The case study is 18 page(s) long and it was first published on : Mar 29, 2017
At Fern Fort University, we recommend that the Akal Academies focus on a strategic expansion plan that leverages its unique strengths in education, social impact, and community engagement. This plan should prioritize: 1) Expanding geographically to underserved regions within India, 2) Developing a sustainable funding model that incorporates diverse revenue streams, and 3) Strengthening its brand and reputation through a robust marketing strategy and a commitment to excellence in education. This approach will enable the Akal Academies to achieve its mission of providing quality education to underprivileged children while ensuring its long-term sustainability and impact.
2. Background
The Akal Academies is a network of non-profit schools in Punjab, India, founded by the Akal Takht, the highest temporal authority of Sikhism. The organization's mission is to provide quality education to underprivileged children, particularly from rural areas. Since its inception in 1985, the Akal Academies have grown to encompass over 130 schools, educating over 100,000 students. The organization faces challenges in funding, infrastructure, and attracting and retaining qualified teachers, while navigating a complex regulatory environment.
The main protagonists of the case study are:
- Dr. Gurtej Singh, the visionary founder and leader of the Akal Academies, who is deeply committed to the organization's mission.
- The Akal Takht, the governing body of the Akal Academies, which provides overall direction and support.
- The Akal Academies' management team, responsible for day-to-day operations and strategic planning.
3. Analysis of the Case Study
The Akal Academies' success can be attributed to its unique blend of social entrepreneurship and nonprofit model. The organization has demonstrated a strong commitment to its mission, providing quality education to underprivileged children while upholding Sikh values and principles. However, the organization faces several challenges:
- Financial sustainability: The Akal Academies rely heavily on donations and government grants, which are often insufficient to meet the growing needs of the organization.
- Infrastructure development: The organization needs to invest in infrastructure development, particularly in areas with limited access to quality education.
- Teacher recruitment and retention: Attracting and retaining qualified teachers, especially in remote areas, is a significant challenge.
- Scaling impact: The Akal Academies need to find ways to scale their impact while maintaining quality and adhering to their core values.
To address these challenges, the Akal Academies can leverage the following frameworks:
- Social Impact Measurement: The organization can adopt a robust framework for measuring its social impact, demonstrating the value it creates for students, communities, and society. This can involve tracking metrics like student achievement, community engagement, and economic empowerment.
- Sustainable Business Models: The Akal Academies can explore diverse revenue streams beyond traditional donations and grants. This could include:
- Fee-based education: Offering fee-based education for students from affluent families, while ensuring affordability for underprivileged students through scholarships and financial aid.
- Partnerships with businesses: Collaborating with businesses for corporate social responsibility initiatives, fundraising, and skill development programs.
- Social impact bonds: Engaging with impact investors who provide funding based on measurable social outcomes.
- Strategic Planning: The Akal Academies can develop a comprehensive strategic plan that outlines its long-term vision, goals, and objectives. This plan should include:
- Growth strategy: Defining a clear expansion strategy, including geographic targeting, new school development, and partnerships.
- Marketing strategy: Developing a robust marketing strategy to raise awareness, attract donations, and build brand recognition.
- Organizational structure and design: Optimizing its organizational structure and processes to support efficient operations and strategic growth.
4. Recommendations
1. Geographic Expansion:
- Target underserved regions: The Akal Academies should prioritize expanding into underserved regions within India, particularly those with high poverty rates and limited access to quality education.
- Develop a phased expansion plan: The organization should adopt a phased expansion plan, starting with pilot projects in new regions before scaling up operations.
- Partner with local communities: The Akal Academies should actively engage with local communities, building partnerships with NGOs, government agencies, and businesses to ensure the success of its expansion efforts.
2. Sustainable Funding Model:
- Diversify revenue streams: The Akal Academies should explore diverse revenue streams beyond traditional donations and grants. This could include:
- Fee-based education: Offering fee-based education for students from affluent families, while ensuring affordability for underprivileged students through scholarships and financial aid.
- Partnerships with businesses: Collaborating with businesses for corporate social responsibility initiatives, fundraising, and skill development programs.
- Social impact bonds: Engaging with impact investors who provide funding based on measurable social outcomes.
- Establish a dedicated fundraising team: The organization should establish a dedicated fundraising team to develop and implement a comprehensive fundraising strategy.
- Develop a transparent and accountable financial management system: The Akal Academies should implement a transparent and accountable financial management system to ensure the efficient use of resources and build trust with donors.
3. Brand Building and Marketing:
- Develop a strong brand identity: The Akal Academies should develop a strong brand identity that reflects its mission, values, and impact.
- Implement a comprehensive marketing strategy: The organization should implement a comprehensive marketing strategy that includes:
- Public relations: Engaging with media outlets to highlight the organization's work and achievements.
- Social media marketing: Utilizing social media platforms to connect with potential donors, partners, and supporters.
- Content marketing: Creating engaging content that showcases the organization's impact and inspires action.
- Develop a robust alumni network: The Akal Academies should invest in building a robust alumni network to foster relationships with former students and leverage their support for the organization.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core competencies and consistency with mission: The recommendations align with the Akal Academies' core competencies in education, social impact, and community engagement, and are consistent with its mission of providing quality education to underprivileged children.
- External customers and internal clients: The recommendations consider the needs of external stakeholders, including students, parents, donors, and partners, as well as the needs of internal stakeholders, such as teachers, staff, and management.
- Competitors: The recommendations consider the competitive landscape and aim to differentiate the Akal Academies from other educational institutions.
- Attractiveness ' quantitative measures: The recommendations are expected to lead to improved financial sustainability, increased student enrollment, and enhanced social impact, which can be measured through metrics like student achievement, community engagement, and economic empowerment.
- Assumptions: The recommendations are based on the assumption that the Akal Academies can successfully implement its expansion plan, secure funding from diverse sources, and build a strong brand reputation.
6. Conclusion
The Akal Academies have a unique opportunity to become a leading model of social entrepreneurship in India. By embracing a strategic expansion plan that prioritizes geographic reach, sustainable funding, and brand building, the organization can achieve its mission of providing quality education to underprivileged children while ensuring its long-term sustainability and impact.
7. Discussion
Alternative options for the Akal Academies include:
- Focusing solely on existing schools: The organization could choose to focus on strengthening its existing schools and improving the quality of education offered. However, this approach would limit its reach and impact.
- Partnering with other organizations: The Akal Academies could partner with other organizations to expand its reach and leverage their resources. However, this approach could lead to challenges in maintaining control over its operations and ensuring alignment with its values.
The key risks associated with the recommended strategy include:
- Financial instability: The Akal Academies may face financial challenges in securing sufficient funding for its expansion plans.
- Operational challenges: The organization may encounter operational challenges in managing a larger network of schools and ensuring consistent quality of education.
- Regulatory hurdles: The Akal Academies may face regulatory hurdles in expanding into new regions.
8. Next Steps
The Akal Academies should take the following steps to implement its recommended strategy:
- Develop a detailed strategic plan: The organization should develop a detailed strategic plan that outlines its expansion strategy, funding model, marketing plan, and organizational structure.
- Establish a dedicated implementation team: The Akal Academies should establish a dedicated implementation team to oversee the execution of its strategic plan.
- Secure funding: The organization should actively seek funding from diverse sources, including government grants, corporate donations, social impact bonds, and fee-based education.
- Build partnerships: The Akal Academies should build strong partnerships with NGOs, government agencies, businesses, and local communities to support its expansion efforts.
- Monitor and evaluate progress: The organization should regularly monitor and evaluate its progress towards achieving its strategic objectives.
By taking these steps, the Akal Academies can position itself for sustained growth and impact, creating a brighter future for underprivileged children in India.
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Case Description
In July 2016, Baba Iqbal Singh Kingra Ji, Chairperson, The Kalgidhar Trust-Society (TKTS), a non-profit social development organization based in Himachal Pradesh, India, wanted a plan for expanding the rural school activities of TKTS. In 2012, TKTS had fixed a target of 500 academies with 250,000 students to be achieved by 2020. As of 2016, it ran 129 schools that catered to 62,000 students. Apart from continuing with its donations and bank loan-based model, TKTS could explore franchising, entering into management contracts with existing schools, lease in land, or enter into public-private partnerships with the government.
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