Harvard Case - The Empowerment Plan (A): Providing Employment to Homeless Populations in Detroit
"The Empowerment Plan (A): Providing Employment to Homeless Populations in Detroit" Harvard business case study is written by Rashmi Menon. It deals with the challenges in the field of Social Enterprise. The case study is 10 page(s) long and it was first published on : Jun 3, 2019
At Fern Fort University, we recommend that The Empowerment Plan (TEP) pursue a hybrid growth strategy combining organic expansion within Detroit with strategic partnerships and franchise models to scale its impact nationally and internationally. This approach leverages TEP's core competencies in social entrepreneurship, manufacturing processes, and community development, while addressing the challenges of scaling social impact and sustainable business models.
2. Background
The Empowerment Plan is a Detroit-based social enterprise that empowers homeless women through employment and housing. Founded by Veronika Scott, TEP manufactures and sells high-quality, weatherproof coats that transform into sleeping bags, providing a solution to the unique needs of its target population. TEP's model is based on a triple bottom line approach, focusing on social, environmental, and financial sustainability.
The case study highlights TEP's success in creating a sustainable business model, providing employment opportunities, and addressing the needs of homeless women in Detroit. However, it also points to the challenges of scaling the organization's impact, including the need for increased funding, operational efficiency, and strategic partnerships.
3. Analysis of the Case Study
Social Impact: TEP's model is a powerful example of social innovation and shared value creation. By providing employment, housing, and a sense of purpose, TEP empowers homeless women to break the cycle of poverty and build a better future. The organization's impact is measured through metrics such as employment rates, housing stability, and overall well-being of its employees.
Business Model: TEP's hybrid business model combines a nonprofit mission with a for-profit enterprise. This allows the organization to generate revenue through the sale of its products, while also providing social services to its employees. The model is further strengthened by TEP's commitment to environmental sustainability, using recycled materials and ethical manufacturing practices.
Challenges: Scaling TEP's impact requires addressing several challenges:
- Funding: TEP relies on a mix of grants, donations, and product sales. To scale, it needs to diversify its funding streams and attract larger investments.
- Operations: As TEP grows, it needs to streamline its operations and develop efficient processes to manage production, distribution, and employee support.
- Geographic Expansion: Expanding beyond Detroit requires careful planning and consideration of local market conditions, partnerships, and regulatory frameworks.
Strategic Framework: A SWOT analysis reveals TEP's strengths (strong mission, innovative product, dedicated workforce), weaknesses (limited funding, operational scalability), opportunities (growing demand for ethical products, government support for social enterprises), and threats (competition from for-profit companies, economic downturns).
4. Recommendations
Organic Expansion: TEP should continue to grow organically within Detroit by increasing production capacity, expanding its product line, and strengthening its brand presence. This can be achieved through:
- Investing in new equipment and technology to increase production efficiency and output.
- Developing new product lines that cater to a wider market, while still addressing the needs of homeless women.
- Strengthening marketing efforts to increase brand awareness and customer base.
Strategic Partnerships: TEP should forge strategic alliances with other organizations to leverage their resources, expertise, and networks. Potential partners include:
- Nonprofit organizations: Collaborate with homeless shelters, social service agencies, and other nonprofits to reach a wider target audience.
- Corporations: Partner with companies committed to corporate social responsibility to secure funding, access to resources, and joint marketing initiatives.
- Government agencies: Seek grants and support from local, state, and federal agencies to expand services and reach more individuals.
Franchise Model: TEP should consider franchising its model to other cities and countries, enabling local entrepreneurs to implement TEP's mission and business model. This requires:
- Developing a comprehensive franchise model that outlines the rights and responsibilities of franchisees.
- Providing training and support to franchisees to ensure consistency in product quality, service delivery, and social impact.
- Establishing a strong brand identity that resonates with diverse markets.
5. Basis of Recommendations
These recommendations align with TEP's core competencies and mission to empower homeless women through employment and housing. They are also consistent with the organization's triple bottom line approach, prioritizing social, environmental, and financial sustainability.
The recommendations consider external customers (consumers of TEP's products) and internal clients (homeless women employed by TEP). They also acknowledge competitors in the ethical fashion and social enterprise space.
The attractiveness of these recommendations is based on the potential for significant social impact, increased revenue, and expanded reach. The assumptions underlying these recommendations include:
- Continued demand for ethical and sustainable products.
- Availability of funding for expansion and franchise development.
- Strong partnerships with other organizations.
- Successful adaptation of the TEP model to different markets.
6. Conclusion
By pursuing a hybrid growth strategy, TEP can leverage its strengths, address its challenges, and scale its impact to empower more homeless women across the country and beyond. This approach aligns with the principles of social entrepreneurship, sustainable business models, and shared value creation, ensuring that TEP's success is measured not only by financial performance but also by its positive social impact.
7. Discussion
Other alternatives not selected include:
- Focusing solely on organic growth: This approach might be slower and less impactful, limiting TEP's ability to reach a wider audience.
- Partnering exclusively with nonprofits: This could limit TEP's access to resources and market reach.
- Selling the company to a for-profit entity: This could compromise TEP's mission and social impact.
The key risks associated with the recommended strategy include:
- Lack of sufficient funding: Securing adequate financial resources for expansion and franchise development is crucial.
- Challenges in finding suitable franchisees: Identifying and supporting franchisees who share TEP's values and commitment to social impact is essential.
- Adapting the model to different markets: Ensuring that TEP's model is culturally sensitive and economically viable in diverse locations is critical.
8. Next Steps
To implement the recommended strategy, TEP should:
- Develop a detailed strategic plan outlining the key milestones, timelines, and resources needed for each phase of expansion.
- Secure funding through a combination of grants, investments, and partnerships.
- Establish a franchise development team to create a robust franchise model and support network.
- Conduct market research to identify suitable locations for franchise expansion.
- Develop a comprehensive training program for franchisees to ensure consistency in product quality, service delivery, and social impact.
By taking these steps, TEP can build a sustainable and scalable social enterprise that empowers homeless women and creates a positive impact on communities around the world.
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Case Description
This case is part of a series of four integrated cases about The Empowerment Plan (TEP), a Detroit-based nonprofit that worked to break the cycle of homelessness through training, employment, and job placement. Founded in 2012 by Veronika Scott, TEP recruited employees through homeless shelters and provided them with training, education, and full-time employment manufacturing sleeping bag coats. The specially designed coats were distributed free of charge to the homeless population. Case A presents basic information about the founding of TEP, how employees were hired and trained, employee roles on the production line, and how employees were promoted, managed and motivated. The case also introduces the concept of the TEP internship/fellowship program and is appropriate for a class session focused on job design and job crafting.
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