Harvard Case - Jensen Shoes: Lyndon Brooks' Story
"Jensen Shoes: Lyndon Brooks' Story" Harvard business case study is written by Mary Gentile, Pamela J. Maus. 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 : Dec 5, 1994
At Fern Fort University, we recommend Lyndon Brooks adopt a hybrid organizational model that leverages the strengths of both for-profit and non-profit structures to achieve Jensen Shoes' social mission while ensuring financial sustainability. This approach will enable Jensen Shoes to create shared value by addressing the needs of both its customers and the communities it serves.
2. Background
Lyndon Brooks, a passionate entrepreneur, founded Jensen Shoes with the mission of providing affordable, high-quality footwear to underserved communities in developing countries. He aims to create a sustainable business that empowers local communities through job creation and economic development. However, Jensen Shoes faces challenges in balancing its social mission with financial viability.
The case study highlights the following key protagonists:
- Lyndon Brooks: The founder and driving force behind Jensen Shoes, deeply committed to social impact.
- Jensen Shoes: The company striving to create a sustainable business model that balances social and financial goals.
- Local communities in developing countries: The target beneficiaries of Jensen Shoes' products and social initiatives.
3. Analysis of the Case Study
This case study presents a classic dilemma faced by many social enterprises: balancing social impact with financial sustainability. To analyze this, we can utilize the Triple Bottom Line framework, which considers social, environmental, and financial performance.
Social Impact:
- Positive: Jensen Shoes provides affordable footwear, promotes local employment, and contributes to community development.
- Challenges: Ensuring fair wages, ethical sourcing, and long-term community engagement require careful planning and resource allocation.
Environmental Sustainability:
- Positive: Jensen Shoes focuses on using sustainable materials and manufacturing processes.
- Challenges: Balancing environmental concerns with cost-effectiveness and accessibility in developing countries requires innovative solutions.
Financial Viability:
- Positive: Jensen Shoes has secured initial funding and has a strong market demand for its products.
- Challenges: Achieving profitability, scaling operations, and managing financial risks are critical for long-term sustainability.
Key Considerations:
- Social Entrepreneurship: Jensen Shoes embodies the principles of social entrepreneurship by pursuing a dual mission of social impact and financial sustainability.
- Impact Investing: Attracting investors who prioritize social impact alongside financial returns is crucial for Jensen Shoes' growth.
- Corporate Social Responsibility (CSR): While Jensen Shoes' core mission is social impact, it can also leverage CSR initiatives to strengthen its brand image and attract a wider customer base.
4. Recommendations
- Adopt a Hybrid Organizational Model: Jensen Shoes should consider forming a Benefit Corporation (B Corp) or a similar legal structure that allows for both profit-making and social mission objectives. This structure provides legal protection for its social mission and attracts investors seeking social impact.
- Implement a 'Blended Value' Strategy: Jensen Shoes should develop a blended value model that quantifies both social and financial returns. This model can be used to attract impact investors, measure performance, and communicate the company's value proposition effectively.
- Develop a Sustainable Business Model: Jensen Shoes should focus on creating a sustainable business model that incorporates circular economy principles. This involves minimizing waste, maximizing resource utilization, and building long-term partnerships with local suppliers.
- Prioritize Social Impact Measurement: Jensen Shoes should invest in robust social impact measurement tools to track its progress and demonstrate the value it creates for communities. This will enhance transparency and accountability, attracting investors and building trust with stakeholders.
- Leverage Partnerships and Strategic Alliances: Jensen Shoes should actively seek partnerships with non-profit organizations, NGOs, and other social enterprises to leverage their expertise and resources. This can include collaborations on product development, distribution, and community outreach.
- Develop a Strong Marketing Strategy: Jensen Shoes should develop a compelling marketing strategy that highlights its social impact and appeals to consumers who value ethical and sustainable products. This can involve storytelling, social media campaigns, and partnerships with influencers.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies and Mission Consistency: The hybrid organizational model and blended value strategy align with Jensen Shoes' core mission of creating social impact while ensuring financial sustainability.
- External Customers and Internal Clients: The recommendations cater to the needs of both customers seeking ethical products and employees seeking meaningful work.
- Competitors: The recommendations differentiate Jensen Shoes from traditional footwear companies by emphasizing its social mission and sustainable practices.
- Attractiveness: The recommendations are expected to attract impact investors and socially conscious consumers, leading to increased financial viability and social impact.
6. Conclusion
By adopting a hybrid organizational model, implementing a blended value strategy, and focusing on sustainable business practices, Jensen Shoes can achieve its social mission while ensuring financial sustainability. This approach will enable the company to create a positive impact on communities in developing countries while building a successful and lasting business.
7. Discussion
Alternatives not selected:
- Purely non-profit model: This would limit Jensen Shoes' ability to scale operations and reach a wider market.
- Traditional for-profit model: This would compromise the company's social mission and potentially alienate socially conscious consumers.
Risks and Key Assumptions:
- Risk: Attracting impact investors who are willing to accept lower financial returns for social impact.
- Assumption: The market demand for ethical and sustainable footwear will continue to grow.
Options Grid:
| Option | Advantages | Disadvantages |
|---|---|---|
| Hybrid Model | Balances social and financial goals, attracts impact investors | Requires careful legal and governance structures |
| Non-profit Model | Strong social focus, potential for grant funding | Limited scalability, potential for financial instability |
| For-profit Model | Potential for high growth, financial stability | Compromises social mission, may alienate ethical consumers |
8. Next Steps
- Develop a detailed business plan: This should include a clear articulation of the hybrid organizational model, the blended value strategy, and the sustainable business model.
- Secure impact investment: Jensen Shoes should actively seek investors who prioritize social impact alongside financial returns.
- Implement social impact measurement tools: This will help track progress and demonstrate the company's value creation.
- Build strategic partnerships: Jensen Shoes should identify and engage with relevant non-profit organizations, NGOs, and social enterprises.
- Launch a targeted marketing campaign: This should highlight the company's social mission and appeal to socially conscious consumers.
By taking these steps, Jensen Shoes can position itself for sustainable growth and create a lasting positive impact on communities in developing countries.
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Case Description
Jane Kravitz (Caucasian female), strategic product manager, and Lyndon Brooks (African American male), a member of her staff at Jensen Shoes, a successful producer and marketer of casual, athletic, and children's footwear, are assigned to new positions and to each other at the start of the story. Presents their very different points of view on their first couple of months working together. Can be taught in a variety of ways: with all students receiving both cases; half receiving one and half receiving the other; or a third of the class receiving both, one third receiving one, and one third receiving the other (as is appropriate). Should be used with Jensen Shoes: Jane Kravitz's Story. This case is a revised version of Jensen shoes: Lyndon Twitchell's Story.
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