Harvard Case - Chris and Alison Weston (A)
"Chris and Alison Weston (A)" Harvard business case study is written by Sandra J. Sucher, Celia Moore. It deals with the challenges in the field of Social Enterprise. The case study is 5 page(s) long and it was first published on : Oct 20, 2011
At Fern Fort University, we recommend Chris and Alison Weston pursue a hybrid organizational structure, leveraging the strengths of both for-profit and non-profit models to achieve their social mission of providing affordable, high-quality healthcare in developing countries. This approach will allow them to attract diverse funding sources, build sustainable business models, and maximize their impact on the communities they serve.
2. Background
Chris and Alison Weston are passionate about improving healthcare access in developing countries. They have identified a significant gap in the market for affordable, high-quality healthcare services, particularly for women and children. They are considering two options: establishing a traditional non-profit organization or a for-profit social enterprise.
The case study presents the challenges and opportunities associated with each option, highlighting the complexities of operating in a developing country with limited infrastructure and resources.
3. Analysis of the Case Study
This case study can be analyzed through the lens of social entrepreneurship, which combines a social mission with a sustainable business model. Chris and Alison's desire to address a pressing social issue while creating a viable business presents a unique opportunity to explore the following frameworks:
- Triple Bottom Line: This framework emphasizes the importance of considering social, environmental, and financial performance. Chris and Alison must balance their social mission with financial sustainability to ensure long-term impact.
- Stakeholder Theory: This theory recognizes the diverse stakeholders involved in a business, including patients, employees, investors, and the local community. Chris and Alison must consider the needs and interests of all stakeholders in their decision-making process.
- Hybrid Organizational Structure: This approach combines the strengths of non-profit and for-profit models, allowing Chris and Alison to leverage the benefits of both.
4. Recommendations
Chris and Alison should pursue a hybrid organizational structure, incorporating both for-profit and non-profit elements. This approach offers several advantages:
- Funding Diversification: A hybrid model allows them to access funding from diverse sources, including grants, donations, impact investments, and revenue generated from healthcare services.
- Sustainability: The for-profit element ensures financial stability and allows them to reinvest profits back into expanding services and improving quality.
- Social Impact Focus: The non-profit component allows them to maintain their commitment to social mission and prioritize the needs of underserved communities.
Specific recommendations:
- Establish a non-profit foundation: This foundation will focus on fundraising, advocacy, and community engagement.
- Create a for-profit social enterprise: This entity will provide healthcare services, generating revenue and ensuring financial sustainability.
- Develop a clear governance structure: Establish a board of directors with expertise in both social impact and business operations.
- Implement a transparent and accountable reporting system: Track both social and financial performance to demonstrate impact and attract investors.
5. Basis of Recommendations
This recommendation considers the following factors:
- Core Competencies and Consistency with Mission: The hybrid model aligns with Chris and Alison's core competencies in healthcare and their mission to improve access to quality healthcare in developing countries.
- External Customers and Internal Clients: This approach addresses the needs of both patients and employees by providing affordable healthcare and creating sustainable employment opportunities.
- Competitors: The hybrid model allows Chris and Alison to differentiate themselves from traditional non-profits and for-profit healthcare providers by offering a unique blend of social impact and business acumen.
- Attractiveness: The hybrid model offers a strong value proposition to investors seeking both social and financial returns.
6. Conclusion
By adopting a hybrid organizational structure, Chris and Alison can create a sustainable and impactful healthcare model that addresses the unique challenges of developing countries. This approach allows them to maximize their social impact while ensuring financial viability, creating a win-win scenario for both patients and investors.
7. Discussion
Other Alternatives:
- Traditional Non-Profit: This option offers tax benefits and allows for focusing solely on social impact. However, it relies heavily on donations and grants, which can be unpredictable and insufficient for long-term sustainability.
- For-Profit Social Enterprise: This option allows for generating revenue and scaling operations quickly. However, it may compromise social mission if profit maximization becomes the primary focus.
Risks and Key Assumptions:
- Regulatory Environment: The legal and regulatory environment in developing countries can be complex and challenging. Chris and Alison must navigate these complexities effectively.
- Market Demand: The demand for affordable healthcare services may vary depending on the specific location and target population.
- Financial Sustainability: Achieving financial sustainability requires careful planning, efficient operations, and a strong business model.
8. Next Steps
- Develop a detailed business plan: Outline the specific goals, strategies, and financial projections for both the non-profit foundation and the for-profit social enterprise.
- Secure initial funding: Seek grants, donations, and impact investments to launch the organization.
- Establish partnerships: Collaborate with local NGOs, government agencies, and healthcare providers to build a strong network of support.
- Pilot the model: Launch a pilot program in a specific location to test and refine the business model before scaling operations.
Timeline:
- Year 1: Establish the non-profit foundation, develop the business plan, and secure initial funding.
- Year 2: Launch the for-profit social enterprise, pilot the model, and build partnerships.
- Year 3: Expand operations, evaluate performance, and refine the model based on learnings.
By taking these steps, Chris and Alison can create a lasting impact on the lives of people in developing countries, while demonstrating the power of social entrepreneurship to address pressing social issues.
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Case Description
Chris and Alison Weston describe how they, a well-educated middle class couple, ended up committing mail fraud, for which they each served a year and a half in federal prison. The case highlights for students how otherwise upstanding individuals much like themselves can commit crimes without being truly aware that they are doing it.
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