Harvard Case - The PCDA Project of Doctors Without Borders-Spain
"The PCDA Project of Doctors Without Borders-Spain" Harvard business case study is written by David DRC Roman Coy, Alvaro Gonzalo AHR Hormazabal Reed. It deals with the challenges in the field of Social Enterprise. The case study is 16 page(s) long and it was first published on : Jul 1, 2013
At Fern Fort University, we recommend Doctors Without Borders-Spain (MSF-Spain) adopt a hybrid organizational model that leverages the strengths of both traditional non-profit and social enterprise approaches to achieve a triple bottom line impact. This model will allow MSF-Spain to scale its social impact while maintaining its core values of independence, neutrality, and impartiality.
2. Background
The case study focuses on MSF-Spain's PCDA project, a program designed to address the challenges of providing healthcare in developing countries through the development and distribution of a low-cost, portable, and user-friendly diagnostic device. The project faces several challenges, including:
- Funding constraints: MSF-Spain relies heavily on donations, which are often unpredictable and insufficient to meet the growing demand for healthcare services.
- Operational inefficiencies: The organization struggles to manage complex supply chains and ensure the efficient distribution of medical supplies and equipment.
- Lack of scalability: The PCDA project, while promising, has limited reach due to its reliance on traditional fundraising and distribution models.
The main protagonists are the MSF-Spain team responsible for the PCDA project, who face the dilemma of how to expand the project's impact while maintaining its core values and principles.
3. Analysis of the Case Study
Strategic Framework: We utilize the Social Impact Framework to analyze the PCDA project. This framework considers the following factors:
- Mission and Values: MSF-Spain's mission is to provide medical aid to people in need, regardless of race, religion, or political affiliation. The PCDA project aligns with this mission by providing access to essential healthcare services in resource-constrained settings.
- Target Beneficiaries: The project aims to benefit individuals in developing countries who lack access to basic healthcare services due to poverty, lack of infrastructure, or geographical isolation.
- Solution: The PCDA device offers a cost-effective and accessible solution for diagnosing various diseases, thereby improving healthcare outcomes.
- Impact Measurement: MSF-Spain needs to develop robust metrics to measure the project's social impact, including the number of lives saved, the reduction in disease prevalence, and the improvement in overall health outcomes.
- Sustainability: The project must be financially sustainable in the long term to ensure its continued impact.
Analysis:
- Social Impact: The PCDA project has the potential to significantly impact global health by providing access to affordable and accessible healthcare in developing countries.
- Financial Sustainability: The current model relies heavily on donations, which are unpredictable and may not be sufficient to meet the growing demand for the PCDA device.
- Scalability: The project's impact is limited by its current distribution model and reliance on traditional fundraising methods.
- Organizational Capacity: MSF-Spain lacks the expertise and resources to effectively manage a large-scale social enterprise venture.
4. Recommendations
We recommend the following steps for MSF-Spain to implement a hybrid organizational model and scale the PCDA project's impact:
- Establish a Social Enterprise Division: Create a dedicated division within MSF-Spain to focus on developing and implementing the PCDA project as a social enterprise. This division should be staffed with individuals who have experience in social entrepreneurship, business development, and impact measurement.
- Develop a Sustainable Business Model: Design a business model that generates revenue through the sale of the PCDA device, while ensuring affordability for target beneficiaries. This could involve:
- Tiered pricing: Offer the device at different price points based on income levels and purchasing power.
- Partnerships with local NGOs: Collaborate with local NGOs to distribute the device and provide training on its use.
- Microfinance initiatives: Offer microloans to individuals and communities to purchase the PCDA device.
- Invest in Impact Measurement: Develop a robust system to track and measure the project's social impact, including:
- Health outcomes: Track the number of lives saved, the reduction in disease prevalence, and the improvement in overall health outcomes.
- Economic impact: Assess the project's contribution to economic development in target communities.
- Environmental impact: Evaluate the device's environmental footprint and explore opportunities for sustainable manufacturing and distribution.
- Seek Strategic Partnerships: Form strategic alliances with corporations, foundations, and other organizations to access funding, expertise, and distribution channels.
- Embrace Innovation: Continuously explore new technologies and innovations to improve the PCDA device's functionality, cost-effectiveness, and sustainability.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies and Consistency with Mission: The hybrid model aligns with MSF-Spain's core values of independence, neutrality, and impartiality while allowing the organization to leverage its expertise in healthcare delivery and its commitment to serving the most vulnerable populations.
- External Customers and Internal Clients: The model addresses the needs of both external customers (beneficiaries) and internal clients (MSF-Spain staff) by providing access to affordable healthcare services and creating a sustainable model for delivering those services.
- Competitors: The model acknowledges the growing competition in the field of social entrepreneurship and emphasizes the need for innovation, impact measurement, and strategic partnerships to differentiate MSF-Spain's PCDA project.
- Attractiveness: The model is attractive due to its potential for significant social impact, financial sustainability, and scalability. It also aligns with the growing trend of impact investing and the increasing demand for ethical and socially responsible business practices.
6. Conclusion
By adopting a hybrid organizational model, MSF-Spain can leverage the strengths of both non-profit and social enterprise approaches to scale the impact of the PCDA project, ensuring its sustainability and long-term success. This model will allow MSF-Spain to address the challenges of funding constraints, operational inefficiencies, and lack of scalability while maintaining its core values and principles.
7. Discussion
Alternatives:
- Traditional Non-Profit Model: This model would rely solely on donations and grants, which may not be sufficient to meet the growing demand for the PCDA device.
- Pure Social Enterprise Model: This model would focus exclusively on generating revenue through the sale of the device, potentially compromising MSF-Spain's commitment to serving the most vulnerable populations.
Risks and Key Assumptions:
- Market Demand: The success of the hybrid model depends on the demand for the PCDA device in target markets.
- Pricing Strategy: Finding the right price point that balances affordability for beneficiaries and revenue generation for the project is crucial.
- Partnerships: The success of the model relies on forming strong and mutually beneficial partnerships with other organizations.
8. Next Steps
- Develop a Detailed Business Plan: Create a comprehensive business plan outlining the project's goals, strategies, financial projections, and impact measurement framework.
- Pilot the Hybrid Model: Implement the hybrid model on a pilot basis in a selected target market to test its feasibility and effectiveness.
- Secure Funding: Seek funding from impact investors, foundations, and corporations interested in supporting social enterprises with a strong social impact.
- Build Capacity: Invest in training and development programs for MSF-Spain staff to equip them with the skills and knowledge necessary to manage a social enterprise.
By taking these steps, MSF-Spain can effectively implement a hybrid organizational model that will enable the PCDA project to achieve its full potential and make a lasting impact on global health.
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Case Description
"PCDA" is the Spanish acronym for Pastillas Contra el Dolor Ajeno (Pills for Other People's Pain).The case outlines the methods employed by the Spanish branch of Médecins sans Frontières, hereafter MSF (Doctors Without Borders) to develop a physical product that could be used to raise funds for the organization's social initiatives. The case focus is set in mid-March 2011, a few weeks after Juan Ramón Axta's appointment as the new head of the PCDA project at a time when sales were plummeting. The PCDA was successfully launched in November 2010. This cutting edge idea and the campaign created to publicize it received wide media coverage. The PCDA was initially very successful with consumers. The initiative was seen as a unique innovation in Spain and around the world. During the first 20 days that followed the product launch, 1.5 million packets were sold. After three months, sales reached 3 million packets. Pharmacies complained of constant stock outs. The sales of the PCDAs surpassed all previous forecasts. Based on this initial success, MSF ordered an extra 3 million packets. However, at the end of February sales dropped by 400,000 packets (i.e., a 50% decline from the previous month). At that pace MSF feared sales in March would not exceed 100,000 packets. This sharp drop in sales created significant uncertainty about the campaign's future. Atxa had to decide whether MSF should continue with the project or cancel it. He wondered whether he should put an end to it and learn from the experience. He had only recently been placed in charge of it, so he felt compelled not to choose this option. However, what was the best thing to do?
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