Harvard Case - MIA, Philippines
"MIA, Philippines" Harvard business case study is written by Jim Kayalar. It deals with the challenges in the field of Social Enterprise. The case study is 20 page(s) long and it was first published on : Jan 29, 2009
At Fern Fort University, we recommend that MIA, a social enterprise in the Philippines, adopt a hybrid organizational structure that leverages both for-profit and non-profit elements to maximize its impact and sustainability. This approach will allow MIA to:
- Scale its operations: By incorporating for-profit elements, MIA can attract investment and generate revenue streams to expand its reach and impact.
- Maintain its social mission: The non-profit component ensures that MIA remains focused on its core social mission of providing affordable and accessible healthcare to marginalized communities.
- Build a sustainable business model: The hybrid structure allows MIA to create a self-sustaining model that can operate independently of external funding, ensuring long-term impact.
2. Background
MIA is a social enterprise operating in the Philippines, providing affordable and accessible healthcare services to marginalized communities. Founded by Dr. Maria Isabel 'Mia' Angeles, the organization faces challenges in scaling its operations due to limited funding and a lack of resources. This case study explores the options available to MIA to ensure its long-term sustainability and maximize its social impact.
The main protagonists of the case study are:
- Dr. Maria Isabel 'Mia' Angeles: Founder and CEO of MIA, passionate about providing accessible healthcare to the underserved.
- The MIA team: Dedicated individuals committed to the organization's mission, but facing resource constraints.
- The marginalized communities: The primary beneficiaries of MIA's services, who lack access to quality healthcare due to financial and geographic barriers.
3. Analysis of the Case Study
This case study can be analyzed using the Social Enterprise Framework, which considers the following key elements:
- Mission and Values: MIA's core mission is to provide affordable and accessible healthcare to marginalized communities. This mission aligns with its values of social justice, compassion, and equity.
- Business Model: MIA's current business model relies heavily on donations and grants, making it vulnerable to funding fluctuations.
- Social Impact: MIA has a significant positive impact on the lives of marginalized communities by providing essential healthcare services.
- Sustainability: MIA's long-term sustainability is threatened by its dependence on external funding and limited resources.
- Governance: MIA's governance structure needs to evolve to accommodate growth and ensure transparency and accountability.
Key challenges facing MIA:
- Limited funding: MIA relies heavily on donations and grants, which are often unpredictable and insufficient to meet the organization's growing needs.
- Scaling operations: Expanding its reach and impact requires significant investment in infrastructure, personnel, and technology.
- Competition: MIA faces competition from other healthcare providers, both public and private, which may offer more affordable or accessible services.
- Regulatory environment: Navigating the complex legal and regulatory landscape in the Philippines can be challenging for social enterprises.
4. Recommendations
To address these challenges and ensure long-term sustainability, MIA should consider the following recommendations:
1. Adopt a Hybrid Organizational Structure:
- Establish a for-profit subsidiary: This subsidiary can generate revenue through various means, such as providing healthcare services to a wider market segment, offering consulting services, or developing and selling healthcare products.
- Maintain a non-profit foundation: This foundation will focus on the core social mission of providing affordable healthcare to marginalized communities. It will receive funding from the for-profit subsidiary and other sources, ensuring that the social mission remains at the heart of the organization.
2. Develop a Sustainable Business Model:
- Diversify revenue streams: The for-profit subsidiary can explore various revenue generation strategies, such as providing telemedicine services, offering health insurance plans, or partnering with pharmaceutical companies.
- Implement a cost-effective operating model: MIA can explore cost-saving strategies, such as leveraging technology for remote consultations, partnering with local NGOs for community outreach, and optimizing resource allocation.
- Develop a social impact measurement framework: This framework will allow MIA to track and quantify the impact of its programs and services, providing valuable data for fundraising and reporting.
3. Enhance Governance and Transparency:
- Establish a board of directors: The board should include individuals with expertise in healthcare, business, and social impact, ensuring that MIA's strategic direction aligns with its mission and financial sustainability.
- Develop a clear governance structure: This structure should define roles and responsibilities within the organization, ensuring accountability and transparency.
- Implement robust financial reporting: MIA should develop transparent financial reporting mechanisms to track its financial performance and demonstrate its impact to stakeholders.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core competencies and consistency with mission: The hybrid organizational structure aligns with MIA's core competency in healthcare delivery and its mission of providing affordable and accessible healthcare to marginalized communities.
- External customers and internal clients: The for-profit subsidiary can cater to a wider market segment, while the non-profit foundation can continue to focus on serving marginalized communities.
- Competitors: The hybrid model allows MIA to compete effectively with other healthcare providers by offering a range of services and pricing options.
- Attractiveness: The hybrid structure can attract investment and funding from both social impact investors and traditional investors, ensuring long-term financial sustainability.
Assumptions:
- The Philippine government will continue to support social enterprises through policies and regulations.
- MIA's team will be able to adapt to the new organizational structure and embrace the challenges of scaling operations.
- The for-profit subsidiary will be able to generate sufficient revenue to support the non-profit foundation and its social mission.
6. Conclusion
By adopting a hybrid organizational structure, developing a sustainable business model, and enhancing governance and transparency, MIA can achieve its long-term sustainability and maximize its social impact. This approach will enable the organization to scale its operations, reach more marginalized communities, and create a lasting legacy in the fight for affordable and accessible healthcare in the Philippines.
7. Discussion
Alternatives not selected:
- Remaining solely a non-profit organization: While this option maintains MIA's focus on its social mission, it limits its ability to scale operations and achieve long-term sustainability.
- Becoming a fully for-profit organization: This option could generate significant revenue but risks compromising the organization's social mission and neglecting the needs of marginalized communities.
Risks and key assumptions:
- Financial risk: The for-profit subsidiary may not generate sufficient revenue to support the non-profit foundation.
- Operational risk: MIA's team may face challenges in adapting to the new organizational structure and scaling operations.
- Reputational risk: MIA's reputation could be damaged if the for-profit subsidiary is perceived as prioritizing profits over its social mission.
Options Grid:
| Option | Advantages | Disadvantages | Risks |
|---|---|---|---|
| Hybrid Structure | Scalability, Sustainability, Impact | Complexity, Potential for conflict | Financial, Operational, Reputational |
| Non-Profit | Mission focus, Transparency | Limited scalability, Dependence on funding | Financial, Operational |
| For-Profit | Revenue generation, Growth potential | Potential mission drift, Lack of transparency | Reputational, Social impact |
8. Next Steps
- Develop a detailed business plan: This plan should outline the specific strategies for the for-profit subsidiary, including revenue generation, market segmentation, and operational efficiency.
- Establish a governance structure: This structure should define roles and responsibilities within the organization, ensuring accountability and transparency.
- Secure funding: MIA should seek funding from social impact investors, traditional investors, and philanthropic organizations.
- Develop a social impact measurement framework: This framework will allow MIA to track and quantify the impact of its programs and services.
- Implement a change management strategy: This strategy will help MIA's team adapt to the new organizational structure and embrace the challenges of scaling operations.
By taking these steps, MIA can ensure its long-term sustainability and maximize its social impact, creating a lasting legacy in the fight for affordable and accessible healthcare in the Philippines.
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Case Description
The newly appointed country director of MIA Philippines, a non-profit organization with a mandate to alleviate poverty in developing countries, is faced with the challenge of designing and managing a development assistance project that would establish a go-to-market supply chain for a remote Filipino fishing village. The country director has to enter a new country, launch the project, deal with the constraints of a foreign culture, manage the expectations of major stakeholders whilst trying to manage a multi-cultural team and conclude the project on time. The value of the case lies in the realistic assessment of stakeholders' motivation, their capabilities and assets, and project constraints during the design and implementation stages. Value chain analysis, value added analysis and stakeholder analysis are used to assess the applicability of project design, impact and long term success.
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