Harvard Case - Let's Build Their Dreams: Danone Mexico and the Casa de la Amistad para Ninos con Cancer, I.A.P.
"Let's Build Their Dreams: Danone Mexico and the Casa de la Amistad para Ninos con Cancer, I.A.P." Harvard business case study is written by Gerardo Lozano, Angel Maass, Christopher Moxon. It deals with the challenges in the field of Social Enterprise. The case study is 27 page(s) long and it was first published on : Jul 25, 2003
At Fern Fort University, we recommend that Danone Mexico further deepen its partnership with Casa de la Amistad para Ninos con Cancer, I.A.P. (Casa de la Amistad) by implementing a comprehensive strategy that leverages Danone's resources and expertise to create a sustainable and impactful social enterprise. This strategy should focus on three key areas: shared value creation, social innovation, and community development.
2. Background
This case study focuses on the partnership between Danone Mexico, a multinational food and beverage company, and Casa de la Amistad, a non-profit organization providing support to children with cancer and their families. Danone has a strong commitment to corporate social responsibility (CSR), and the partnership aims to create a mutually beneficial relationship where both organizations can achieve their respective goals.
The main protagonists are:
- Danone Mexico: A leading player in the Mexican food and beverage market with a strong brand image and resources. They seek to strengthen their CSR initiatives and build a positive reputation.
- Casa de la Amistad: A non-profit organization struggling to meet the growing needs of children with cancer and their families. They rely heavily on donations and require innovative solutions to ensure long-term sustainability.
3. Analysis of the Case Study
This case study presents a compelling opportunity for Danone to leverage its resources and expertise to create a social enterprise that addresses a critical social issue in Mexico. We can analyze the situation using the Shared Value Creation framework, emphasizing the potential for both organizations to benefit from the partnership:
Danone's Perspective:
- Strengthening Brand Image: By supporting Casa de la Amistad, Danone can enhance its brand image and appeal to consumers who value social responsibility.
- Market Access and Consumer Engagement: The partnership provides an opportunity to engage with a specific target market (families with children with cancer) and potentially develop new products or services tailored to their needs.
- Employee Engagement and Motivation: Involving employees in the partnership can boost morale and foster a sense of purpose within the organization.
Casa de la Amistad's Perspective:
- Increased Funding and Resources: Danone's financial and logistical support can significantly improve Casa de la Amistad's ability to provide essential services to children and families.
- Enhanced Operational Efficiency: Danone's expertise in areas like logistics, marketing, and product development can help Casa de la Amistad streamline operations and improve service delivery.
- Access to New Networks and Partnerships: The partnership can open doors for Casa de la Amistad to collaborate with other organizations and access wider funding opportunities.
4. Recommendations
To maximize the impact of the partnership, Danone Mexico should implement the following recommendations:
1. Develop a Joint Social Enterprise:
- Define a clear mission and vision: This should align with both organizations' values and focus on creating a sustainable business model that benefits both parties.
- Develop a product or service that addresses a specific need: This could include providing nutritional products tailored to children with cancer, offering educational programs for families, or developing a platform for fundraising and volunteer recruitment.
- Create a transparent and accountable governance structure: This should involve representatives from both organizations to ensure shared decision-making and accountability.
2. Implement Social Innovation Initiatives:
- Leverage Danone's expertise in product development and marketing: This could involve creating innovative nutritional products specifically designed for children with cancer, or developing marketing campaigns that raise awareness and generate support for the social enterprise.
- Explore new technologies and digital platforms: This could involve using online platforms for fundraising, volunteer recruitment, and communication with families.
- Foster a culture of innovation within Casa de la Amistad: This can be achieved through training programs, workshops, and mentorship opportunities.
3. Engage in Community Development:
- Build strong relationships with local communities: This can involve working with local healthcare providers, schools, and community organizations to raise awareness and provide support.
- Create opportunities for local entrepreneurship: This could involve supporting local businesses that provide services to families with children with cancer, or creating microfinance programs to empower local communities.
- Promote social inclusion and diversity: This can involve ensuring that the social enterprise is accessible to all children and families, regardless of their socioeconomic background.
5. Basis of Recommendations
The recommendations are based on the following considerations:
- Core competencies and consistency with mission: The recommendations leverage Danone's core competencies in product development, marketing, and logistics, while aligning with Casa de la Amistad's mission to provide support to children with cancer.
- External customers and internal clients: The recommendations consider the needs of both the target beneficiaries (children and families) and the stakeholders of both organizations.
- Competitors: The recommendations aim to create a unique value proposition that differentiates the social enterprise from existing solutions in the market.
- Attractiveness ' quantitative measures: The recommendations are expected to generate a positive social return on investment (SROI) by improving the well-being of children with cancer and their families while also contributing to Danone's brand image and financial performance.
6. Conclusion
By implementing these recommendations, Danone Mexico can create a sustainable and impactful social enterprise that addresses a critical social issue in Mexico while also strengthening its brand image and enhancing its CSR initiatives. This partnership can serve as a model for other companies looking to engage in meaningful social impact through innovative and sustainable business models.
7. Discussion
Other alternatives not selected include:
- Limited partnership: This would involve Danone providing financial support to Casa de la Amistad without directly participating in the operation of the social enterprise. This option would limit the potential for shared value creation and innovation.
- Corporate philanthropy: This would involve Danone making donations to Casa de la Amistad without actively engaging in the development of a sustainable business model. This option would not be as impactful or sustainable in the long run.
Risks and Key Assumptions:
- Financial sustainability: The success of the social enterprise depends on its ability to generate sufficient revenue to cover its operating costs.
- Market demand: The success of the social enterprise also depends on the demand for the product or service it provides.
- Organizational alignment: The success of the partnership requires strong communication and collaboration between both organizations.
8. Next Steps
To implement the recommendations, Danone Mexico and Casa de la Amistad should:
- Establish a joint task force: This task force should be responsible for developing the social enterprise's mission, vision, and business plan.
- Conduct market research: This research should identify the needs of the target market and assess the potential demand for the product or service.
- Develop a pilot program: This pilot program should test the feasibility of the business model and gather feedback from stakeholders.
- Secure funding: This could involve seeking grants, impact investments, or social impact bonds.
By taking these steps, Danone Mexico and Casa de la Amistad can create a successful and impactful social enterprise that benefits both organizations and the community.
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Case Description
In 1997, the Mexican subsidiary of the Groupe Danone, a global actor in the food industry, decided to launch a cause-related marketing campaign jointly with a civil society organization. The chosen partner was the Friendship Home (Casa de la Amistad para Ninos con Cancer, I.A.P.), an organization engaged in providing free medical treatment to low-income children suffering from cancer. Through the campaign, called "Let's Build Their Dreams," the company donated a fraction of the price of each yogurt product sold over a period of time.
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