Harvard Case - Food Security: Business Models in the United States and India, Case A: Food Gatherers in the United States
"Food Security: Business Models in the United States and India, Case A: Food Gatherers in the United States" Harvard business case study is written by Aradhna Krishna, Dana Muir. It deals with the challenges in the field of Social Enterprise. The case study is 16 page(s) long and it was first published on : Jun 15, 2017
At Fern Fort University, we recommend Food Gatherers prioritize a multi-pronged growth strategy focused on expanding their reach, diversifying revenue streams, and strengthening their impact. This strategy should leverage Food Gatherers' existing strengths in community partnerships, operational efficiency, and commitment to social impact while embracing innovative business models and social enterprise initiatives.
2. Background
Food Gatherers is a non-profit organization in Ann Arbor, Michigan, dedicated to alleviating hunger and food insecurity in the community. They operate a food rescue program, collecting surplus food from grocery stores, restaurants, and other sources and distributing it to local food pantries and soup kitchens. The organization faces challenges including increasing demand for food assistance, limited resources, and a competitive landscape of other non-profits.
The case study focuses on Food Gatherers' efforts to expand their reach and impact, particularly through exploring new revenue streams and partnerships. The organization is considering a variety of options, including launching a social enterprise, expanding their food rescue program, and engaging in advocacy efforts.
3. Analysis of the Case Study
Strategic Framework: This case study can be analyzed through the lens of social entrepreneurship and sustainable business models. Food Gatherers, as a non-profit, is already operating within the realm of social entrepreneurship, aiming to solve a social problem (hunger) through innovative business practices.
Key Considerations:
- Mission Alignment: Food Gatherers' mission is to 'end hunger in Washtenaw County.' Any new initiative must align with this core mission and contribute to achieving this goal.
- Financial Sustainability: Food Gatherers relies heavily on donations and grants. Diversifying revenue streams is crucial to ensure long-term financial stability and reduce dependence on external funding.
- Community Engagement: Building strong relationships with community stakeholders, including donors, volunteers, partner organizations, and beneficiaries, is essential for success.
- Impact Measurement: Food Gatherers needs to effectively measure the impact of their initiatives to demonstrate their value and attract further funding and support.
Key Opportunities:
- Social Enterprise: Launching a social enterprise, such as a food truck or catering service, could generate revenue while providing job training and employment opportunities for individuals facing food insecurity. This aligns with the triple bottom line approach, considering social, environmental, and financial impact.
- Impact Investing: Food Gatherers could explore impact investing opportunities, attracting investors interested in supporting social causes. This could involve partnerships with impact investors or issuing social impact bonds to fund specific projects.
- Partnerships: Collaborative partnerships with businesses, government agencies, and other non-profits can leverage resources, expand reach, and create new revenue streams. For example, partnering with local restaurants to collect food waste and develop a food composting program could address environmental sustainability while generating revenue.
- Technology & Innovation: Utilizing technology can enhance operational efficiency, expand outreach, and improve impact measurement. This could include implementing a mobile app for food donation tracking, utilizing data analytics to optimize food distribution, or developing online platforms for connecting donors and beneficiaries.
4. Recommendations
1. Develop a Social Enterprise Strategy:
- Identify a viable social enterprise model: Conduct thorough market research to identify a social enterprise model that aligns with Food Gatherers' mission, resources, and expertise. This could include a food truck, catering service, or a community garden with a farm-to-table restaurant.
- Develop a comprehensive business plan: A detailed business plan should outline the social enterprise's objectives, target market, revenue streams, cost structure, and marketing strategy.
- Secure funding and resources: Explore impact investing, crowdfunding, or grant opportunities to secure initial capital.
- Build a dedicated team: Recruit and train staff with expertise in social enterprise development, operations, and marketing.
2. Expand Food Rescue Program:
- Increase partnerships with food donors: Actively engage with local grocery stores, restaurants, and other food businesses to expand food rescue operations.
- Develop a robust logistics system: Optimize transportation routes, storage facilities, and distribution networks to ensure efficient food handling and delivery.
- Invest in technology: Implement a mobile app or software platform to streamline food donation tracking, communication, and distribution.
3. Strengthen Community Engagement:
- Develop a comprehensive stakeholder engagement strategy: Engage with donors, volunteers, partner organizations, and beneficiaries through regular communication, feedback mechanisms, and community events.
- Promote transparency and accountability: Publish annual reports, financial statements, and impact data to build trust and demonstrate accountability.
- Develop a volunteer program: Create a structured volunteer program to engage individuals in food rescue operations, community outreach, and fundraising efforts.
4. Embrace Innovation and Technology:
- Explore data-driven decision making: Utilize data analytics to track food distribution, identify areas of need, and optimize operations.
- Develop a digital communication strategy: Utilize social media, email marketing, and online platforms to reach a wider audience and engage with potential donors and volunteers.
- Partner with tech companies: Explore partnerships with technology companies to develop innovative solutions for food rescue, distribution, and impact measurement.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies and Mission Alignment: The proposed initiatives align with Food Gatherers' core competencies in food rescue and community engagement, and contribute directly to their mission of ending hunger.
- External Customers and Internal Clients: The recommendations address the needs of both external stakeholders (food-insecure individuals, donors, and partner organizations) and internal clients (staff, volunteers, and board members).
- Competitors: The recommendations consider the competitive landscape of other non-profits and social enterprises operating in the food security sector.
- Attractiveness - Quantitative Measures: The proposed initiatives are expected to generate positive social impact, increase revenue, and enhance operational efficiency. While quantifying social impact is complex, Food Gatherers can utilize Social Return on Investment (SROI) methodologies to measure the value created by their initiatives.
6. Conclusion
Food Gatherers has a unique opportunity to leverage its strong community presence and operational efficiency to expand its reach and impact. By embracing social entrepreneurship, impact investing, and innovative business models, Food Gatherers can create a sustainable and impactful organization that addresses the pressing issue of food insecurity in Washtenaw County.
7. Discussion
Alternative Options:
- Focusing solely on fundraising: While fundraising is essential, relying solely on donations can limit Food Gatherers' growth potential and make them vulnerable to economic fluctuations.
- Expanding solely through partnerships: While partnerships are valuable, relying solely on partnerships can limit Food Gatherers' control and autonomy.
Risks and Key Assumptions:
- Market demand for social enterprise products/services: There is a risk that the chosen social enterprise model may not meet sufficient market demand.
- Financial sustainability of social enterprise: The social enterprise may not generate enough revenue to cover its costs.
- Impact measurement challenges: Quantifying the social impact of Food Gatherers' initiatives can be complex and require robust data collection and analysis.
Options Grid:
| Option | Advantages | Disadvantages | Risks |
|---|---|---|---|
| Social Enterprise | Generates revenue, creates jobs, aligns with mission | Requires significant investment, potential market risk | Market demand, financial sustainability |
| Expanding Food Rescue | Increases food distribution, strengthens community partnerships | Requires additional resources, logistical challenges | Increased demand, donor capacity |
| Impact Investing | Attracts investors, secures funding | Requires robust impact measurement, potential investor risk | Impact measurement, investor expectations |
8. Next Steps
- Form a task force: Assemble a team of staff, board members, and external experts to develop and implement the recommended strategy.
- Conduct feasibility studies: Conduct thorough market research and financial analysis to assess the viability of the social enterprise model and other initiatives.
- Develop a pilot program: Implement a pilot program for the chosen social enterprise model to test its effectiveness and gather feedback.
- Secure funding and resources: Develop a funding strategy and seek out grants, impact investors, and other sources of capital.
- Monitor and evaluate progress: Regularly track progress towards achieving the organization's objectives and make adjustments as needed.
By taking these steps, Food Gatherers can position itself for sustainable growth and a lasting impact on the community.
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Case Description
This three-part case provides the opportunity to engage students in an examination of how cross-cultural considerations can affect managerial, legal, operational, and corporate social responsibility decision-making. The cases present two, non-profit organizations -- one in the U.S. and one in India. Both organizations are focused on food redistribution but each faces different challenges based on cultural, legal, and logistical issues. Cases A, B, and C are rolled out in a single class session. Students are given Cases A and B to read before class (including watching the video that accompanies Case B). Case C is handed out in class.
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