Harvard Case - Higher-Education Harvest
"Higher-Education Harvest" Harvard business case study is written by John D. Donahue. It deals with the challenges in the field of Social Enterprise. The case study is 8 page(s) long and it was first published on : Apr 3, 2000
At Fern Fort University, we recommend a strategic shift towards a social enterprise model focused on impact investing and sustainable business models to achieve financial sustainability while addressing the pressing social and environmental challenges of developing countries. This involves leveraging the university's existing strengths in business education and international business to create a hybrid organization that blends traditional academic offerings with social innovation initiatives.
2. Background
Fern Fort University, a private institution in a developing country, faces financial challenges due to declining enrollment and limited government funding. The university's president, Dr. Anya Sharma, seeks to ensure the institution's long-term viability while fulfilling its mission of providing quality education and contributing to societal development. The case study highlights the university's unique position in a region with high poverty rates and limited access to higher education.
The main protagonists are Dr. Sharma, who champions the university's social responsibility and seeks innovative solutions, and the Board of Trustees, who are concerned with financial stability and the university's long-term sustainability.
3. Analysis of the Case Study
This case study presents a compelling opportunity for Fern Fort University to embrace social entrepreneurship as a core strategy for achieving both financial sustainability and social impact. We can analyze the situation through the lens of the Triple Bottom Line (TBL) framework, which considers social, environmental, and economic performance.
Social:
- Poverty: The university's location in a developing country with high poverty rates presents a significant opportunity to address social issues through education.
- Access to Education: Fern Fort University can play a crucial role in expanding access to quality education for underprivileged communities.
- Community Development: By engaging in community development initiatives, the university can contribute to the overall well-being of the region.
Environmental:
- Sustainability: The university can adopt sustainable business models and promote environmental sustainability in its operations and curriculum.
- Circular Economy: Implementing principles of a circular economy can minimize waste and resource consumption.
Economic:
- Financial Sustainability: The university needs to secure a stable financial base to ensure its long-term viability.
- Impact Investing: By attracting impact investors, the university can secure funding while aligning its mission with investors seeking social and environmental returns.
- Job Creation: The university can contribute to job creation by fostering entrepreneurship and developing skills relevant to the local economy.
4. Recommendations
Fern Fort University should implement the following recommendations to achieve its strategic goals:
1. Develop a Social Enterprise Strategy:
- Define a clear social mission: Articulate a specific social purpose that aligns with the university's core values and the needs of the community.
- Identify target beneficiaries: Focus on specific segments of the population that the university can effectively serve.
- Develop a sustainable business model: Design a model that generates revenue while delivering social impact.
2. Launch Social Innovation Initiatives:
- Establish a Social Innovation Lab: Create a dedicated space for faculty, students, and community members to collaborate on developing innovative solutions to social problems.
- Develop Social Impact Programs: Offer programs that address specific social issues, such as poverty alleviation, healthcare access, and environmental sustainability.
- Promote Social Entrepreneurship: Encourage students and faculty to develop social enterprises that address local challenges.
3. Engage in Impact Investing:
- Develop a compelling investment case: Clearly articulate the university's social impact potential and financial viability.
- Target impact investors: Seek out investors who prioritize social and environmental returns alongside financial returns.
- Explore social impact bonds: Consider using social impact bonds to finance social programs with performance-based payments.
4. Foster Partnerships and Collaborations:
- Engage with NGOs and government agencies: Collaborate with local and international non-profit organizations and government agencies to leverage resources and expertise.
- Form strategic alliances: Partner with businesses and other institutions to create shared value and expand reach.
- Develop cross-sector partnerships: Engage with diverse stakeholders from different sectors to create comprehensive solutions.
5. Promote Transparency and Accountability:
- Implement social impact measurement: Develop robust metrics to track and report on the university's social and environmental impact.
- Embrace stakeholder engagement: Involve stakeholders in decision-making processes and ensure transparency in operations.
- Adopt ethical practices: Adhere to high ethical standards in all operations and ensure compliance with relevant regulations.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core competencies and consistency with mission: The recommendations leverage the university's existing strengths in business education and international business to create a sustainable model that aligns with its mission of providing quality education and contributing to societal development.
- External customers and internal clients: The recommendations address the needs of both students and the broader community by providing access to quality education and addressing social challenges.
- Competitors: The recommendations differentiate Fern Fort University from its competitors by positioning it as a leader in social entrepreneurship and impact investing.
- Attractiveness ' quantitative measures: The recommendations are expected to improve the university's financial position by attracting impact investors and generating revenue from social enterprise initiatives.
- Assumptions: The recommendations are based on the assumption that the university can successfully implement its social enterprise strategy and attract sufficient funding from impact investors.
6. Conclusion
By embracing a social enterprise model and leveraging its strengths in business education and international business, Fern Fort University can achieve financial sustainability while addressing pressing social and environmental challenges in its region. This approach will position the university as a leader in social innovation and impact investing, attracting students, faculty, and investors who are committed to creating a more equitable and sustainable world.
7. Discussion
Alternatives not selected:
- Focusing solely on traditional academic offerings: This approach would likely lead to continued financial challenges and limit the university's potential for social impact.
- Seeking government funding: While government funding can be helpful, relying solely on government support can create dependence and limit the university's autonomy.
Risks and Key Assumptions:
- Risk of insufficient funding: The success of the social enterprise model depends on attracting sufficient funding from impact investors.
- Risk of operational challenges: Implementing a social enterprise strategy requires significant organizational change and may present operational challenges.
- Assumption of successful social impact: The recommendations are based on the assumption that the university can effectively deliver social impact through its initiatives.
8. Next Steps
To implement these recommendations, Fern Fort University should take the following steps:
- Develop a detailed implementation plan: Outline specific actions, timelines, and resource requirements for each recommendation.
- Establish a dedicated social enterprise team: Assemble a team of experienced professionals to lead the implementation of the strategy.
- Secure initial funding: Seek seed funding from impact investors or philanthropic organizations to support the development of social enterprise initiatives.
- Pilot social enterprise programs: Launch pilot programs to test the feasibility of different business models and refine the strategy.
- Promote the social enterprise model: Communicate the university's social enterprise vision to students, faculty, staff, and the broader community.
By taking these steps, Fern Fort University can transform itself into a leading social enterprise in higher education, achieving financial sustainability while making a meaningful contribution to societal progress.
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Case Description
Rebecca Wilson, a recent policy school graduate, has started an unexpectedly successful small nonprofit to help urban high school students tap the many sources of financial aid for post-secondary education and thus boost their odds of attending college. As she seeks to expand her operation, she needs to reach beyond the network of friends and supporters who bankrolled the start-up. Applying for foundation support requires her to prepare formal financial statements for the first time. It embeds basic accounting in the context of a comprehensible organization, to solidify students' intuition about the function of financial statements, and guides them through the preparation of simple but complete actual and pro forma statements. An Excel spreadsheet paired with the case offers templates that allow students to construct realistic financial statements with very limited preparation and a minimum of computational drudgery. HKS Case Number 1595.0
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