Free Developing Allies and Alliances: Autopistas del Sol and SES Foundation Case Study Solution | Assignment Help

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Written by Gary F. Smith
Publish Date: 2024-12-01

Harvard Case - Developing Allies and Alliances: Autopistas del Sol and SES Foundation

"Developing Allies and Alliances: Autopistas del Sol and SES Foundation" Harvard business case study is written by Mario Roitter, Gabriel Berger, Cecilia Rena. It deals with the challenges in the field of Social Enterprise. The case study is 26 page(s) long and it was first published on : Jul 25, 2003

At Fern Fort University, we recommend Autopistas del Sol (ADS) and the SES Foundation (SES) formalize their partnership into a strategic alliance, focusing on shared value creation and impact investing. This alliance will leverage ADS's infrastructure and resources with SES's expertise in social entrepreneurship to develop sustainable and scalable solutions for poverty alleviation in developing countries.

2. Background

This case study focuses on the evolving relationship between Autopistas del Sol, a Spanish toll road operator, and the SES Foundation, a non-profit organization dedicated to promoting social entrepreneurship. ADS, with its extensive infrastructure network in Latin America, seeks to expand its corporate social responsibility (CSR) initiatives. SES, on the other hand, aims to scale its social impact by leveraging partnerships with corporations.

The main protagonists are:

  • Juan Carlos Garcia, CEO of ADS, who is committed to integrating social responsibility into the company's core business strategy.
  • Maria Rodriguez, Executive Director of SES, who believes in the power of social entrepreneurship to address poverty and inequality.

3. Analysis of the Case Study

This case study presents a unique opportunity to explore the intersection of corporate social responsibility, social entrepreneurship, and impact investing. Using the Shared Value Creation Framework, we can analyze the potential benefits for both ADS and SES:

For ADS:

  • Strengthening Brand Reputation: A strategic alliance with SES will enhance ADS's image as a socially responsible company, attracting investors and customers who value ethical business practices.
  • Expanding Market Reach: By supporting social entrepreneurs in developing countries, ADS can access new markets and build relationships with local communities.
  • Innovation and Growth: Collaborating with SES can lead to the development of innovative solutions for infrastructure development and community empowerment, fostering long-term growth for ADS.

For SES:

  • Scaling Social Impact: Access to ADS's resources, infrastructure, and network will enable SES to scale its social entrepreneurship programs, reaching more beneficiaries.
  • Financial Sustainability: Impact investing from ADS can provide SES with stable funding, ensuring the long-term viability of its initiatives.
  • Knowledge Sharing and Capacity Building: The partnership can facilitate knowledge sharing between ADS and SES, fostering capacity building for social entrepreneurs in developing countries.

4. Recommendations

To formalize their partnership, ADS and SES should:

  1. Develop a Joint Strategic Plan: This plan should outline the shared goals, responsibilities, and key performance indicators (KPIs) for the alliance.
  2. Establish a Joint Steering Committee: This committee, composed of representatives from both organizations, will oversee the implementation of the strategic plan and ensure alignment between ADS and SES.
  3. Create a Social Impact Investment Fund: This fund will be dedicated to supporting social entrepreneurs in developing countries, leveraging ADS's financial resources and SES's expertise in impact investing.
  4. Develop a Comprehensive Social Impact Measurement Framework: This framework will track the social and environmental impact of the alliance's initiatives, ensuring transparency and accountability.

5. Basis of Recommendations

These recommendations are based on the following considerations:

  • Core Competencies and Consistency with Mission: The alliance leverages ADS's infrastructure and financial resources with SES's expertise in social entrepreneurship, aligning with both organizations' missions.
  • External Customers and Internal Clients: The alliance benefits both ADS's stakeholders (investors, customers) and SES's beneficiaries (social entrepreneurs and communities).
  • Competitors: The alliance positions ADS as a leader in corporate social responsibility, creating a competitive advantage in the infrastructure sector.
  • Attractiveness: The alliance offers significant potential for shared value creation, with a positive social and financial return on investment.

6. Conclusion

By formalizing their partnership into a strategic alliance, ADS and SES can create a powerful model for sustainable development and impact investing. This alliance will not only benefit both organizations but also contribute to poverty alleviation, community empowerment, and economic growth in developing countries.

7. Discussion

Alternative options include:

  • Maintaining the current informal partnership: This option lacks the structure and commitment necessary for long-term success and scalability.
  • ADS creating its own social impact fund: This option might limit the expertise and network that SES brings to the table.

Key assumptions include:

  • Commitment from both organizations: Both ADS and SES need to be fully committed to the alliance's success.
  • Effective communication and collaboration: Open and transparent communication is essential for successful implementation.
  • Availability of resources: Both organizations need to allocate sufficient resources to support the alliance's initiatives.

8. Next Steps

The following steps should be taken to implement the recommendations:

  • Within 3 months: Establish the joint steering committee and develop the joint strategic plan.
  • Within 6 months: Launch the social impact investment fund and identify the first social entrepreneurs to support.
  • Within 12 months: Develop and implement the social impact measurement framework.

This strategic alliance between ADS and SES represents a powerful example of how corporations and non-profits can collaborate to create shared value and drive positive social change. By leveraging their respective strengths and resources, they can create a model for sustainable development that benefits both businesses and communities in developing countries.

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Case Description

Autopistas del Sol (AUSOL) was a company that had originated in a partnership constituted in 1994, when it was selected, through a public bidding process, to build and manage two of the main highways in the city of Buenos Aires. The SES Foundation was a nonprofit organization informally founded in 1998 and created by a group of professionals focused on developing informal educational programs for the social integration of poor youngsters. One of its outstanding programs was Community Study Groups (CSG), an initiative it carried out with AUSOL to boost schooling in two of the neighborhoods surrounding one AUSOL-managed highway. The case takes place in late 2001, a few months before the onset of the crisis that impacted Argentina. Focuses on the potential changes and risks entailed for the CSG program by AUSOL's decision to try to look for other sponsoring companies for the program. Although this strategy aimed to ensure program continuity, it also brought about a series of dilemmas for both organizations.

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