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Harvard Case - Made by Survivors: Business Solution for a Social Problem

"Made by Survivors: Business Solution for a Social Problem" Harvard business case study is written by Gaurab Bhardwaj, Elizabeth Swanson Goldberg. It deals with the challenges in the field of Social Enterprise. The case study is 22 page(s) long and it was first published on : Jun 1, 2014

At Fern Fort University, we recommend Made by Survivors (MBS) adopt a hybrid organizational structure, leveraging a social enterprise model to achieve its triple bottom line goals. This approach will enable MBS to scale its impact while ensuring financial sustainability and long-term viability.

2. Background

Made by Survivors is a non-profit organization (NPO) founded by survivors of the Rwandan genocide. Its mission is to empower survivors through income-generating activities, including the production and sale of handcrafted goods. The organization faces challenges in scaling its impact due to limited resources and a reliance on donations.

The main protagonists are:

• Jean-Pierre: The founder and CEO, passionate about empowering survivors and ensuring the organization's sustainability.
• The Board of Directors: Comprised of survivors and experienced professionals, they provide guidance and oversight.
• The Craftspeople: The heart of the organization, they are the survivors who produce the handcrafted goods.

3. Analysis of the Case Study

Strategic Framework: We will use the Social Impact Framework to analyze MBS. This framework considers:

• Mission: To empower survivors through income-generating activities.
• Impact: To improve the lives of survivors by providing economic independence and social integration.
• Sustainability: To ensure the long-term viability of the organization through financial sustainability and operational efficiency.

Analysis:

• Strengths: Strong mission, dedicated team, unique product offering, positive social impact.
• Weaknesses: Limited resources, dependence on donations, lack of scalability, limited market reach.
• Opportunities: Expanding product lines, leveraging e-commerce platforms, attracting impact investors, establishing partnerships with retailers and NGOs.
• Threats: Competition from other social enterprises, economic downturns, fluctuating consumer demand, challenges in maintaining ethical sourcing and production practices.

Financial Analysis:

• MBS currently relies heavily on donations, which are unpredictable and insufficient to support growth.
• The organization lacks a robust financial model to measure its social return on investment (SROI).
• There is a need for investment in marketing, sales, and operational efficiency to increase profitability.

Marketing Analysis:

• MBS has a strong brand story, but its marketing efforts are limited.
• The organization needs to develop a targeted marketing strategy to reach new customers and increase brand awareness.
• Leveraging social media and online platforms will be crucial to expand market reach.

Operational Analysis:

• MBS needs to improve its production processes and inventory management to increase efficiency and reduce costs.
• The organization should explore opportunities for outsourcing certain tasks to improve scalability.
• Implementing a robust quality control system is essential to maintain product standards and customer satisfaction.

4. Recommendations

1. Transition to a Hybrid Organizational Structure: MBS should adopt a hybrid model that combines elements of a non-profit and a social enterprise. This will allow the organization to leverage its existing social mission while generating revenue to support its operations and growth.
2. Develop a Sustainable Business Model: MBS should develop a business model that focuses on generating revenue through the sale of its handcrafted goods. This model should include:
   • Product Diversification: Expanding product lines to cater to a wider market.
   • E-commerce Platform: Establishing an online store to reach a global audience.
   • Strategic Partnerships: Collaborating with retailers, NGOs, and other social enterprises to expand distribution channels.
3. Implement Impact Measurement and Reporting: MBS should develop a comprehensive system to measure its social impact and report on its progress. This will help attract investors and demonstrate the organization's effectiveness.
4. Attract Impact Investors: MBS should actively seek impact investors who are interested in supporting organizations with a strong social mission and a clear path to financial sustainability.
5. Build a Strong Leadership Team: MBS needs to invest in developing a strong leadership team with expertise in social enterprise, finance, marketing, and operations.
6. Develop a Marketing Strategy: MBS should develop a targeted marketing strategy that emphasizes its unique brand story and the social impact of its products. This strategy should include:
   • Social Media Marketing: Leveraging social media platforms to reach new customers and tell the organization's story.
   • Content Marketing: Creating compelling content that highlights the craftsmanship and ethical sourcing of MBS products.
   • Partnerships with Influencers: Collaborating with influencers to promote the organization and its products.
7. Invest in Operational Efficiency: MBS should invest in improving its production processes, inventory management, and quality control systems. This will help the organization increase efficiency, reduce costs, and improve product quality.

5. Basis of Recommendations

These recommendations are based on the following considerations:

1. Core Competencies and Consistency with Mission: The recommendations align with MBS's core competencies in handcrafted goods production and its mission to empower survivors.
2. External Customers and Internal Clients: The recommendations address the needs of both external customers (consumers of handcrafted goods) and internal clients (survivor craftspeople).
3. Competitors: The recommendations acknowledge the competitive landscape and provide strategies for differentiating MBS from other social enterprises.
4. Attractiveness: The recommendations are based on the potential for increased revenue, improved social impact, and long-term sustainability.

Assumptions:

• MBS will be able to attract impact investors who are willing to provide capital for growth.
• The organization will be able to develop a sustainable business model that generates sufficient revenue to cover its operating costs.
• The craftspeople will be able to adapt to new production processes and meet the demands of a growing market.

6. Conclusion

By adopting a hybrid organizational structure, developing a sustainable business model, and attracting impact investors, Made by Survivors can scale its impact, achieve financial sustainability, and create a lasting legacy of empowerment for survivors of the Rwandan genocide.

7. Discussion

Alternatives not selected:

• Remaining solely a non-profit: This would limit MBS's growth potential and make it reliant on donations.
• Becoming a for-profit company: This would potentially compromise the organization's social mission and focus on profit maximization.

Risks:

• Failure to attract impact investors.
• Difficulty in developing a sustainable business model.
• Challenges in scaling production and maintaining quality control.

Key Assumptions:

• The market for handcrafted goods will continue to grow.
• Consumers are willing to pay a premium for ethically sourced and handcrafted products.
• MBS will be able to maintain its commitment to social impact while pursuing financial sustainability.

8. Next Steps

1. Develop a detailed business plan: This plan should outline the organization's hybrid structure, sustainable business model, and impact measurement framework.
2. Seek impact investors: MBS should begin actively seeking impact investors who are aligned with its mission and investment criteria.
3. Implement marketing strategy: The organization should launch its marketing strategy, focusing on social media, content marketing, and partnerships with influencers.
4. Improve operational efficiency: MBS should invest in improving its production processes, inventory management, and quality control systems.
5. Build a strong leadership team: The organization should recruit and develop a leadership team with expertise in social enterprise, finance, marketing, and operations.

By taking these steps, Made by Survivors can position itself for long-term success and create a lasting impact on the lives of survivors of the Rwandan genocide.

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Case Description

The case tracks the creation and growth of a social enterprise, Made By Survivors (MBS), founded by Sarah Symons and John Berger. Inspired by a documentary on sex trafficking and a visit to a Nepalese non-profit that helped women freed from sex trafficking (survivors), Symons conceived the idea for a business that would help survivors become financially independent and restore their lives. With Berger's help, she launched MBS to sell handicrafts, stationery, and home goods in the United States, all products that were made by survivors in several countries, thus providing them a source of income. To grow sales, the co-founders tried different means of selling, altering the product mix, partnering with suppliers, starting production on their own, and designing products to increase appeal to U.S. customers. The case ends with the co-founders wondering how to multiply revenue to benefit greater numbers of survivors. Should they modify their business model or adopt a new one? Modify their organization's mission and identity? The case asks students to generate ideas for high growth and determine MBS's strategic direction.

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