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Harvard Case - Laura Wollen and ARPCO, Inc.

"Laura Wollen and ARPCO, Inc." Harvard business case study is written by Mary Gentile. It deals with the challenges in the field of Social Enterprise. The case study is 9 page(s) long and it was first published on : Jul 8, 1992

At Fern Fort University, we recommend that Laura Wollen and ARPCO, Inc. adopt a strategic approach to scaling their social enterprise through a combination of social innovation, impact investing, and strategic partnerships. This approach will leverage ARPCO's existing strengths in environmental sustainability and community development while maximizing its social impact and achieving financial sustainability.

2. Background

Laura Wollen, a passionate advocate for environmental sustainability, founded ARPCO, Inc. in 2002 with the mission to provide affordable, eco-friendly housing solutions in developing countries. ARPCO's innovative approach utilizes readily available local materials and sustainable construction techniques to build durable and affordable homes. The organization has successfully implemented projects in various developing countries, demonstrating its commitment to social entrepreneurship and community development.

The case study highlights ARPCO's current challenges: limited resources, a need for expansion, and the desire to scale its impact. Wollen recognizes the potential of impact investing to attract funding and accelerate growth, but she also grapples with the complexities of balancing social mission with financial sustainability.

3. Analysis of the Case Study

This case study can be analyzed through the lens of Social Enterprise Strategy, focusing on the key elements of:

  • Mission and Vision: ARPCO's mission is clear and aligned with its core values of environmental sustainability and community development. However, the organization needs to articulate a more comprehensive vision for its future growth and impact.
  • Social Impact Measurement: ARPCO needs to develop robust metrics to measure its social impact, including the number of homes built, the reduction in carbon emissions, and the improvement in community well-being. This data will be crucial for attracting investors and demonstrating the organization's effectiveness.
  • Financial Sustainability: ARPCO needs to develop a sustainable business model that balances its social mission with financial viability. This can be achieved by exploring impact investing opportunities, diversifying revenue streams, and optimizing its operations.
  • Strategic Partnerships: ARPCO can leverage strategic partnerships with NGOs, governments, and corporations to expand its reach, access new markets, and enhance its impact. These partnerships can provide financial support, technical expertise, and access to new resources.
  • Scaling Strategies: ARPCO needs to develop a comprehensive scaling strategy that considers its core competencies, market opportunities, and resource constraints. This strategy should include a clear roadmap for expansion, a robust governance structure, and a strong leadership team.

4. Recommendations

1. Develop a Social Impact Measurement Framework: ARPCO should invest in developing a comprehensive framework to measure its social impact across various dimensions, including environmental sustainability, community development, and economic empowerment. This framework should be transparent, verifiable, and aligned with internationally recognized standards.

2. Explore Impact Investing Opportunities: ARPCO should actively seek out impact investors who are aligned with its mission and values. This can be achieved by developing a compelling investment proposal that highlights the organization's social impact, financial viability, and growth potential.

3. Foster Strategic Partnerships: ARPCO should proactively seek out strategic partnerships with organizations that can contribute to its mission and growth. This includes NGOs, governments, corporations, and other social enterprises. These partnerships can provide financial support, technical expertise, market access, and access to new resources.

4. Implement a Hybrid Business Model: ARPCO should adopt a hybrid business model that combines social impact with financial sustainability. This can involve diversifying revenue streams through grants, donations, impact investments, and social enterprise ventures.

5. Develop a Scaling Strategy: ARPCO should develop a comprehensive scaling strategy that outlines its growth trajectory, target markets, and resource needs. This strategy should include a clear roadmap for expansion, a robust governance structure, and a strong leadership team.

5. Basis of Recommendations

These recommendations are based on the following considerations:

  • Core Competencies and Consistency with Mission: The recommendations align with ARPCO's core competencies in sustainable construction, community development, and social entrepreneurship. They also reinforce the organization's mission of providing affordable, eco-friendly housing solutions in developing countries.
  • External Customers and Internal Clients: The recommendations prioritize the needs of ARPCO's external customers (beneficiaries) and internal clients (staff, partners). They aim to ensure that the organization's growth is sustainable and benefits all stakeholders.
  • Competitors: The recommendations consider the competitive landscape and position ARPCO as a leader in the field of sustainable housing solutions. By leveraging impact investing and strategic partnerships, ARPCO can differentiate itself from competitors and attract a wider range of investors and partners.
  • Attractiveness - Quantitative Measures: The recommendations are based on the potential for ARPCO to generate positive social and financial returns. The organization's focus on impact investing, strategic partnerships, and a hybrid business model will enhance its financial sustainability and maximize its social impact.

6. Conclusion

By adopting a strategic approach that combines social innovation, impact investing, and strategic partnerships, ARPCO can effectively scale its operations, maximize its social impact, and achieve financial sustainability. This approach will enable the organization to achieve its mission of providing affordable, eco-friendly housing solutions to millions of people in developing countries.

7. Discussion

Other alternatives not selected include:

  • Focusing solely on grants and donations: This approach would limit ARPCO's growth potential and make it reliant on external funding.
  • Expanding solely through traditional business models: This approach would compromise the organization's social mission and potentially lead to negative social consequences.

Risks and Key Assumptions:

  • Impact investing market: The success of ARPCO's impact investing strategy hinges on the growth and maturity of the impact investing market.
  • Strategic partnerships: The effectiveness of ARPCO's strategic partnerships depends on the commitment and alignment of its partners.
  • Scaling challenges: Scaling ARPCO's operations effectively requires a strong management team, robust governance structure, and a well-defined scaling strategy.

8. Next Steps

  • Develop a comprehensive social impact measurement framework within the next 6 months.
  • Identify and engage with potential impact investors within the next 12 months.
  • Establish strategic partnerships with key stakeholders within the next 18 months.
  • Implement a hybrid business model and develop a scaling strategy within the next 24 months.

By taking these steps, ARPCO can position itself for sustainable growth and maximize its social impact in the years to come.

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Case Description

Laura Wollen, a group marketing director for ARPCO, Inc., must decide whether to recommend a high performance product manager for a choice position overseas. The supervisor overseas resists the hire because of the candidate's race and Wollen fears that insisting will set her candidate up for failure. On the other hand, she believes she is the best candidate and should not be denied the position.

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