Harvard Case - Peace Games: A Non-Profit's Journey from Birth to National Expansion (A)
"Peace Games: A Non-Profit's Journey from Birth to National Expansion (A)" Harvard business case study is written by Susan Rosengrant, Herman B. Leonard. It deals with the challenges in the field of Social Enterprise. The case study is 19 page(s) long and it was first published on : Jul 1, 2005
At Fern Fort University, we recommend that Peace Games adopt a hybrid organizational model to facilitate its expansion while maintaining its core values. This approach will involve leveraging the strengths of both non-profit and for-profit structures, allowing Peace Games to access new funding sources, scale its operations, and reach a wider audience. This recommendation is based on a comprehensive analysis of Peace Games' current situation, its strategic goals, and the evolving landscape of social entrepreneurship.
2. Background
Peace Games is a non-profit organization dedicated to promoting peace and understanding through educational programs and workshops. Founded by a group of passionate individuals, Peace Games has grown significantly over the years, expanding its reach from local communities to national prominence. However, the organization faces challenges in scaling its operations and securing sustainable funding to meet the growing demand for its services.
The case study focuses on the organization's founder, Sarah, who is grappling with the decision of how to best expand Peace Games' reach and impact. Sarah is passionate about Peace Games' mission and committed to maintaining its core values of inclusivity, accessibility, and community engagement.
3. Analysis of the Case Study
This case study can be analyzed through the lens of social entrepreneurship and the triple bottom line framework. Peace Games exemplifies a social enterprise that aims to create positive social impact while also achieving financial sustainability.
Strategic Analysis:
- Mission and Values: Peace Games' mission is deeply rooted in promoting peace and understanding. Its core values of inclusivity, accessibility, and community engagement are essential to its success.
- Market Analysis: The demand for Peace Games' services is growing, indicating a significant market opportunity. The organization has identified a need for peacebuilding education, particularly in diverse and underprivileged communities.
- Competitive Landscape: Peace Games faces competition from other non-profit organizations and educational institutions offering similar programs. However, its unique focus on experiential learning and its strong community partnerships differentiate it from its competitors.
- SWOT Analysis:
- Strengths: Strong mission and values, dedicated staff, proven program effectiveness, strong community partnerships.
- Weaknesses: Limited funding, reliance on grants and donations, lack of operational scalability.
- Opportunities: Expanding to new markets, developing innovative programs, leveraging technology, forging strategic partnerships.
- Threats: Competition from other organizations, funding challenges, changing social and political landscape.
Financial Analysis:
- Revenue Model: Peace Games currently relies heavily on grants and donations, which are often unpredictable and insufficient to support its growth ambitions.
- Cost Structure: The organization's cost structure is driven by program delivery, staff salaries, and administrative expenses.
- Financial Sustainability: Peace Games needs to explore alternative revenue streams to ensure long-term financial stability and support its expansion plans.
Marketing Analysis:
- Target Audience: Peace Games' target audience includes schools, community organizations, and individuals interested in peacebuilding and conflict resolution.
- Marketing Channels: The organization currently relies on word-of-mouth referrals, community outreach, and online marketing.
- Brand Positioning: Peace Games needs to develop a strong brand identity and messaging to attract a wider audience and communicate its unique value proposition.
4. Recommendations
To address the challenges and capitalize on the opportunities identified, Peace Games should adopt a hybrid organizational model. This approach combines the strengths of both non-profit and for-profit structures, allowing Peace Games to:
- Access new funding sources: By establishing a for-profit arm, Peace Games can explore revenue-generating opportunities such as offering fee-based workshops, developing educational materials for sale, and partnering with corporations for social impact projects.
- Scale its operations: The for-profit arm can provide a more efficient and scalable structure for delivering programs, managing finances, and expanding into new markets.
- Reach a wider audience: By leveraging marketing and branding strategies typically employed by for-profit businesses, Peace Games can reach a broader audience and increase its impact.
Specific Recommendations:
- Establish a for-profit subsidiary: This subsidiary would focus on developing and delivering educational programs and resources that generate revenue. It could offer fee-based workshops, develop curriculum materials for sale, and provide consulting services to organizations interested in implementing peacebuilding initiatives.
- Develop a blended value proposition: The subsidiary would offer programs and resources that are both socially impactful and financially sustainable. This would ensure that Peace Games remains true to its mission while also generating revenue to support its operations.
- Leverage technology and innovation: The subsidiary could develop online platforms and mobile applications to deliver educational programs, connect with participants, and facilitate community engagement.
- Forge strategic partnerships: The subsidiary could partner with corporations, foundations, and other organizations to develop joint ventures, co-create programs, and leverage their resources and networks.
- Develop a robust marketing and branding strategy: The subsidiary would need to develop a strong brand identity, target specific market segments, and utilize effective marketing channels to reach a wider audience.
- Ensure transparency and accountability: It is crucial to maintain transparency and accountability in both the non-profit and for-profit arms of the organization. This will ensure that all stakeholders understand how the organization operates and that its actions are aligned with its mission and values.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core competencies and consistency with mission: The hybrid model allows Peace Games to leverage its core competencies in program development and delivery while expanding its reach and impact. It also ensures that the organization remains true to its mission by prioritizing social impact alongside financial sustainability.
- External customers and internal clients: The hybrid model addresses the needs of both external customers (schools, community organizations, and individuals) and internal clients (staff, volunteers, and donors). It provides a more sustainable and scalable model for delivering programs while also ensuring that the organization remains accountable to its stakeholders.
- Competitors: The hybrid model allows Peace Games to compete more effectively with other organizations by offering a broader range of services and resources. It also enables the organization to leverage its unique strengths and differentiate itself from its competitors.
- Attractiveness ' quantitative measures: The hybrid model is attractive because it offers the potential for increased revenue, expanded reach, and greater impact. It also allows Peace Games to access new funding sources and build a more sustainable financial foundation.
- Assumptions: These recommendations are based on the assumption that Peace Games has the capacity to develop a successful for-profit subsidiary, that there is a market for its services, and that it can maintain its commitment to social impact while pursuing financial sustainability.
6. Conclusion
By adopting a hybrid organizational model, Peace Games can achieve its strategic goals of expanding its reach, securing sustainable funding, and maintaining its core values. This approach will enable the organization to leverage its strengths, address its weaknesses, capitalize on opportunities, and mitigate threats. The hybrid model offers a balanced approach that allows Peace Games to create positive social impact while also achieving financial sustainability, ensuring its long-term success and maximizing its contribution to peacebuilding efforts.
7. Discussion
Other Alternatives:
- Remain solely a non-profit: This option would require Peace Games to rely heavily on grants and donations, limiting its growth potential and making it vulnerable to funding fluctuations.
- Become a for-profit social enterprise: This option would require Peace Games to prioritize financial sustainability over social impact, potentially compromising its mission and values.
Risks and Key Assumptions:
- Risk of losing focus on social impact: The for-profit arm could potentially prioritize profit over social impact, requiring careful monitoring and oversight.
- Risk of reputational damage: If the for-profit arm is not managed effectively, it could damage Peace Games' reputation and undermine its credibility.
- Assumption of market demand: The success of the hybrid model depends on the existence of a market for Peace Games' services.
- Assumption of effective management: The for-profit arm requires skilled management to ensure financial sustainability and maintain alignment with the organization's mission.
8. Next Steps
- Conduct a feasibility study: Assess the market demand for Peace Games' services and the potential for developing a successful for-profit subsidiary.
- Develop a detailed business plan: Outline the proposed structure, operations, and financial projections for the for-profit arm.
- Secure funding: Seek funding from investors, foundations, and other organizations interested in supporting social enterprises.
- Establish a governance structure: Create a board of directors for the for-profit subsidiary that includes representatives from both the non-profit and for-profit arms.
- Develop a marketing and branding strategy: Create a strong brand identity and target specific market segments to reach a wider audience.
- Monitor and evaluate performance: Track the financial and social impact of the for-profit arm and make adjustments as needed.
By taking these steps, Peace Games can successfully implement the hybrid model and achieve its strategic goals of expanding its reach, securing sustainable funding, and maintaining its core values.
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Case Description
As a Harvard University freshman in 1992, Eric Dawson began working on a social service project known as Peace Games, a one-day festival to teach school-age children about peace and cooperation. Dawson, however, had bigger ideas for the program. Operating first within Harvard, and later through the independent nonprofit that he founded, Dawson transformed Peace Games from a simple celebration of community into a kindergarten-8th grade, year-long conflict-resolution curriculum that he hoped to implement in schools across the country. As challenging and as critical as the program design itself, however, was the need to create, fund, and manage an organization capable of carrying the project forward. This case tells the story of how Dawson developed Peace Games in the Boston area; established a Peace Games outpost beyond Massachusetts; and attempted to launch a major nationwide expansion deemed essential not only to reach significant numbers of children and communities, but to attract the funding the organization needed to survive. HKS Case Number 1795.0
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