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Harvard Case - HP: Imprinting the Global Health Sector

"HP: Imprinting the Global Health Sector" Harvard business case study is written by Jamie Jones, Grace Augustine. It deals with the challenges in the field of Social Enterprise. The case study is 15 page(s) long and it was first published on : Mar 12, 2015

At Fern Fort University, we recommend HP adopt a hybrid organizational model to effectively leverage its technological expertise and resources to address the challenges in the global health sector. This model will involve strategic partnerships with nonprofit organizations and governmental agencies to develop and implement sustainable business models that deliver healthcare solutions, particularly in developing countries. This approach will enable HP to create shared value by addressing social and environmental issues while driving sustainable growth and profitability.

2. Background

HP, a global technology leader, recognizes the significant opportunity to leverage its expertise in technology and innovation to address the pressing needs of the global health sector. The case study highlights the company's desire to expand its impact beyond traditional business operations, seeking to create a positive societal impact through its initiatives. The main protagonists of the case study are HP's leadership team, who are grappling with the strategic direction of the company's social impact initiatives, and the various stakeholders involved in the global health sector, including NGOs, government agencies, and healthcare providers.

3. Analysis of the Case Study

This case study presents a classic dilemma for a company like HP. Balancing its core business objectives with the need to address social and environmental issues requires a strategic approach. To analyze this case, we can utilize the Triple Bottom Line framework, which considers the company's performance across three dimensions: economic, social, and environmental.

Economic: HP needs to ensure that its social impact initiatives are financially sustainable. This can be achieved through impact investing models that generate returns while addressing social issues.

Social: HP's initiatives should contribute to improving health outcomes, particularly in underserved communities. This involves collaborating with nonprofit organizations and governmental agencies to develop and implement healthcare solutions that address specific needs.

Environmental: HP's operations and products should be environmentally sustainable. This includes adopting circular economy principles and promoting ethical supply chains.

Key Considerations:

  • Market Segmentation: HP needs to identify specific segments within the global health sector where its technology can have the greatest impact. This might include focusing on emerging markets with high unmet healthcare needs.
  • Innovation: HP can leverage its technological expertise to develop innovative solutions for healthcare delivery, such as telemedicine platforms, data analytics tools, and mobile health applications.
  • Partnerships: Strategic alliances with nonprofit organizations, governmental agencies, and other stakeholders are crucial for successful implementation and impact measurement.
  • Social Impact Measurement: HP needs to develop robust metrics to track the social and environmental impact of its initiatives. This will help the company demonstrate its commitment to social value creation and ensure accountability.
  • Corporate Social Responsibility (CSR): HP should integrate its social impact initiatives into its overall corporate strategy and ensure that they align with its organizational values.

4. Recommendations

  1. Develop a Hybrid Organizational Model: HP should create a dedicated unit within the company that focuses on social impact initiatives. This unit would be responsible for developing and implementing sustainable business models that leverage HP's technology and resources to address global health challenges. This unit could operate as a social enterprise with its own financial structure and governance, allowing for greater flexibility and agility.

  2. Strategic Partnerships: HP should forge strategic partnerships with nonprofit organizations, governmental agencies, and healthcare providers to develop and implement solutions tailored to specific needs. This could involve co-developing products and services, providing technical expertise, and supporting capacity building initiatives.

  3. Impact Investing: HP should explore impact investing opportunities in the global health sector. This could involve investing in companies or projects that generate both financial returns and social impact. Social impact bonds can also be explored as a financing mechanism.

  4. Focus on Emerging Markets: HP should prioritize emerging markets where the need for healthcare solutions is most acute. This could involve developing inclusive business models that cater to the specific needs and contexts of these markets.

  5. Social Impact Measurement: HP should develop a robust framework for measuring the social and environmental impact of its initiatives. This framework should be transparent, accountable, and aligned with Sustainable Development Goals (SDGs).

  6. Develop a Strong Social Enterprise Governance Structure: The dedicated social impact unit should have a clear governance structure that ensures transparency, accountability, and stakeholder engagement. This structure should include representatives from HP, partner organizations, and beneficiaries.

5. Basis of Recommendations

These recommendations are based on the following considerations:

  1. Core Competencies and Mission: HP's core competencies in technology, innovation, and global reach align well with the needs of the global health sector. This approach is consistent with HP's mission to make a positive impact on the world.

  2. External Customers and Internal Clients: This approach addresses the needs of both external customers (healthcare providers, patients, and communities) and internal clients (HP employees who are passionate about making a difference).

  3. Competitors: This approach allows HP to differentiate itself from competitors by demonstrating its commitment to social responsibility and creating shared value.

  4. Attractiveness: The hybrid organizational model offers a compelling approach to achieving both social and financial returns. This model can be attractive to investors and stakeholders who are looking for investments that generate positive impact.

  5. Assumptions: These recommendations assume that HP is committed to long-term sustainability and is willing to invest in building a robust social impact infrastructure. It also assumes that HP can effectively manage its partnerships and ensure transparency and accountability in its social impact initiatives.

6. Conclusion

By adopting a hybrid organizational model and engaging in strategic partnerships, HP can effectively leverage its technological expertise and resources to address the challenges in the global health sector. This approach will enable HP to create shared value, drive sustainable growth, and make a meaningful contribution to improving health outcomes around the world.

7. Discussion

Other alternatives not selected include:

  • Philanthropic Approach: HP could focus solely on philanthropic activities, donating resources and funding to existing organizations. However, this approach may not be as impactful or sustainable as a hybrid model that combines business and social objectives.
  • Traditional Business Model: HP could continue to operate solely within its traditional business model, focusing on maximizing profits. However, this approach would miss the opportunity to leverage its resources for social good.

Risks and Key Assumptions:

  • Financial Sustainability: The hybrid model requires careful financial planning and management to ensure long-term sustainability.
  • Partnership Management: Building and managing effective partnerships with diverse stakeholders requires strong communication, coordination, and trust.
  • Impact Measurement: Developing and implementing robust impact measurement frameworks can be challenging and resource-intensive.

8. Next Steps

  1. Develop a detailed business plan: This plan should outline the specific goals, objectives, and strategies for the hybrid organizational model.
  2. Identify and select strategic partners: HP should engage in a rigorous process to identify and select partners who share its vision and values.
  3. Develop a social impact measurement framework: This framework should be aligned with SDGs and other relevant metrics.
  4. Pilot projects: HP should implement pilot projects in specific regions to test the effectiveness of its approach.
  5. Scale up successful initiatives: Once pilot projects are successful, HP can scale up these initiatives to reach a wider audience.

By taking these steps, HP can effectively leverage its technological expertise and resources to create a positive impact on the global health sector while achieving sustainable growth and profitability.

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Case Description

Hewlett-Packard (HP) had a long history of engaging in corporate citizenship, dating back to its founding. By 2009, however, under the leadership of its latest CEO, Mark Hurd, the company had lost its focus on corporate social responsibility (CSR). Hurd instead focused on undertaking a financial turnaround and overcoming other reputational challenges; he viewed CSR and philanthropic efforts as costs rather than as strategic levers. He instituted widespread cost-cutting measures to get HP back on track, including reducing CSR expenditure. The HP board, however, did not want to let CSR go by the wayside; in fact, it wanted HP to reorganize and restrategize its approach to corporate citizenship. The case focuses on this strategic transformation from traditional, cost-center CSR to business-aligned social innovation. It outlines the details of the board's approval of the new strategy, and then discusses how HP employees worked to reorganize their CSR activity. The new team, the Office of Global Social Innovation (OGSI), had to devise a pilot project to demonstrate the new approach. The project under consideration was an engagement that would improve the early infant diagnosis process for testing infants for HIV in Kenya-an area virtually unknown to HP. The case asks students to assess the work of the OGSI team thus far, and to put themselves in the shoes of one team member who had to justify the project to HP's leadership. The case is especially important for demonstrating the most recent shifts across some leading companies regarding how they position CSR, as well as how for-profit leaders can structure partnerships for impact.

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