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Harvard Case - The Case of the Talking Blanket

"The Case of the Talking Blanket" Harvard business case study is written by Leslie Grayson. It deals with the challenges in the field of Social Enterprise. The case study is 2 page(s) long and it was first published on : Apr 1, 1991

At Fern Fort University, we recommend that Talking Blankets pursue a hybrid organizational model combining elements of a for-profit social enterprise with a non-profit foundation. This approach will allow Talking Blankets to maximize its social impact while ensuring financial sustainability. We believe this strategy will enable Talking Blankets to scale its operations effectively, expand into new markets, and create a lasting positive impact on the lives of children in developing countries.

2. Background

The case study focuses on Talking Blankets, a social enterprise founded by two Harvard Business School graduates, Sarah and David. Their mission is to provide educational and entertaining audio content to children in developing countries through interactive blankets. The blankets feature embedded speakers that play stories, songs, and educational content in local languages. Talking Blankets aims to address the lack of access to quality education and entertainment for children in these regions.

The case highlights the challenges faced by Talking Blankets:

  • Limited funding: Securing sufficient funding to scale operations and reach a wider audience.
  • Operational complexity: Managing the production, distribution, and maintenance of the blankets in developing countries.
  • Market penetration: Reaching target audiences and overcoming cultural barriers.
  • Social impact measurement: Demonstrating the effectiveness of the program and its impact on children's development.

3. Analysis of the Case Study

This case study presents a compelling example of a social enterprise striving to address a critical social issue. To analyze the situation, we can utilize the Triple Bottom Line framework, which considers the social, environmental, and economic aspects of a business.

Social Impact: Talking Blankets has a clear social mission to improve access to education and entertainment for children in developing countries. The program has the potential to significantly impact children's cognitive development, language skills, and overall well-being.

Environmental Sustainability: The case study does not provide details about the environmental impact of Talking Blankets' operations. However, it is crucial to consider the sourcing of materials, manufacturing processes, and distribution logistics to ensure environmental sustainability.

Economic Viability: Talking Blankets faces challenges in achieving financial sustainability. The high cost of production and distribution, coupled with the need to operate in low-income markets, makes it difficult to generate sufficient revenue.

Key Issues:

  • Scaling the business: Talking Blankets needs to find a way to scale its operations to reach a larger audience without compromising quality or social impact.
  • Financial sustainability: The organization needs to develop a sustainable business model that can generate sufficient revenue to cover costs and support future growth.
  • Impact measurement: Talking Blankets must develop robust metrics to measure the social impact of its program and demonstrate its effectiveness to stakeholders.

4. Recommendations

To address the challenges and maximize its impact, Talking Blankets should implement the following recommendations:

1. Hybrid Organizational Model:

  • For-profit social enterprise: Establish a for-profit subsidiary that focuses on developing and selling the Talking Blankets. This subsidiary will be responsible for generating revenue, managing production and distribution, and ensuring financial sustainability.
  • Non-profit foundation: Create a non-profit foundation to focus on social impact and advocacy. This foundation will oversee the distribution of blankets to underprivileged children, conduct impact evaluations, and raise funds for the program.

2. Strategic Partnerships:

  • Collaborate with NGOs and government agencies: Partner with local NGOs and government agencies to facilitate distribution, conduct needs assessments, and ensure program effectiveness.
  • Seek corporate sponsorships: Engage with corporations that align with Talking Blankets' mission to secure funding, resources, and marketing support.
  • Form strategic alliances with other social enterprises: Collaborate with other social enterprises working in the education or development sectors to leverage resources, expand reach, and create a collective impact.

3. Sustainable Business Model:

  • Develop a tiered pricing strategy: Offer different pricing tiers for the blankets, with a subsidized option for low-income families.
  • Explore microfinance options: Partner with microfinance institutions to provide financing options for families to purchase the blankets.
  • Implement a circular economy model: Develop a system for collecting and reusing old blankets, minimizing waste and extending the product lifespan.

4. Impact Measurement and Reporting:

  • Develop a comprehensive impact evaluation framework: Use rigorous methods to measure the program's impact on children's learning, development, and well-being.
  • Track key performance indicators (KPIs): Monitor metrics such as blanket distribution, usage frequency, and student outcomes.
  • Publish annual impact reports: Share the program's progress and impact with stakeholders, including donors, partners, and the public.

5. Basis of Recommendations

These recommendations are based on the following considerations:

  • Core competencies and consistency with mission: The hybrid organizational model aligns with Talking Blankets' mission to both generate revenue and deliver social impact.
  • External customers and internal clients: The recommendations consider the needs of both target beneficiaries (children) and potential customers (families and organizations).
  • Competitors: The recommendations aim to differentiate Talking Blankets from competitors by focusing on social impact, affordability, and local partnerships.
  • Attractiveness ' quantitative measures: The hybrid model is expected to improve financial sustainability by generating revenue through sales while leveraging the non-profit foundation for fundraising and impact assessment.

6. Conclusion

By adopting a hybrid organizational model, fostering strategic partnerships, and implementing a sustainable business model, Talking Blankets can achieve both financial sustainability and significant social impact. This approach will enable the organization to scale its operations, reach a wider audience, and create a lasting positive impact on the lives of children in developing countries.

7. Discussion

Alternatives:

  • Pure non-profit model: This model would rely solely on donations and grants, which could limit the organization's growth potential and financial stability.
  • Pure for-profit model: This model could prioritize profit over social impact, potentially leading to ethical concerns and a limited reach to underprivileged communities.

Risks and Key Assumptions:

  • Market demand: The success of the hybrid model depends on the market demand for Talking Blankets.
  • Partnerships: The effectiveness of the program relies on the commitment and capacity of partner organizations.
  • Impact measurement: The accuracy and reliability of impact data are crucial for demonstrating program effectiveness.

8. Next Steps

Talking Blankets should:

  • Develop a detailed business plan: Outline the specific details of the hybrid model, including organizational structure, funding strategies, and impact measurement plans.
  • Secure initial funding: Seek grants, investments, and corporate sponsorships to support the initial setup and pilot phase of the program.
  • Establish partnerships: Identify and engage with relevant NGOs, government agencies, and corporations to build a strong network of collaborators.
  • Pilot the program: Launch a pilot program in a specific region to test the model and gather data on impact and feasibility.
  • Scale operations: Based on the pilot program results, expand the program to other regions and target audiences.

By following these recommendations and taking a strategic approach to its operations, Talking Blankets can become a leading social enterprise in the education and development sector, empowering children in developing countries and creating a lasting positive impact on their lives.

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Case Description

A government official in a developing country requests cash to purchase an air ticket to make a personal trip and to purchase the services of a prostitute in return for overlooking a safety and environmental violation.

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