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Harvard Case - Peter Green's First Day

"Peter Green's First Day" Harvard business case study is written by John B. Matthews Jr., Laura L. Nash. It deals with the challenges in the field of Social Enterprise. The case study is 2 page(s) long and it was first published on : Apr 1, 1980

At Fern Fort University, we recommend Peter Green adopt a hybrid organizational structure combining elements of a social enterprise and a traditional for-profit business to maximize impact and financial sustainability. This approach will allow Green's organization to leverage the strengths of both models while addressing the unique challenges of operating in a developing country like Kenya.

2. Background

Peter Green, a recent graduate of the Harvard Business School, is passionate about improving healthcare access in Kenya. He has developed a revolutionary idea for a mobile clinic that utilizes technology and a network of local healthcare providers to deliver affordable and accessible healthcare services to underserved communities.

The case study focuses on Green's first day as he navigates the challenges of launching his venture, including securing funding, building a team, and establishing a sustainable business model.

3. Analysis of the Case Study

This case study presents a compelling scenario requiring a deep understanding of social entrepreneurship, impact investing, and sustainable business models.

Key Issues:

  • Financial Sustainability: Green needs to find a way to balance his social mission with the need for financial viability.
  • Scaling Impact: He must develop a strategy to expand his mobile clinic model to reach more people in Kenya.
  • Organizational Structure: Green needs to decide how to structure his organization to effectively manage both social and business objectives.
  • Stakeholder Management: He must build strong relationships with various stakeholders, including investors, local communities, government officials, and healthcare providers.

Framework:

We can analyze this case using the Triple Bottom Line framework, which evaluates an organization's performance based on its social, environmental, and economic impact.

  • Social Impact: Green's mobile clinic has the potential to significantly improve healthcare access in Kenya, reducing poverty and improving health outcomes.
  • Environmental Impact: The mobile clinic can be designed with sustainability in mind, using renewable energy sources and minimizing waste.
  • Economic Impact: Green's business model needs to be financially sustainable to ensure long-term impact.

4. Recommendations

1. Hybrid Organizational Structure:

  • Social Enterprise Core: Establish a core social enterprise entity focused on delivering healthcare services to underserved communities. This entity will prioritize social impact and operate on a non-profit basis.
  • For-Profit Subsidiary: Create a for-profit subsidiary that develops and sells technology solutions for healthcare providers, including the mobile clinic platform. This subsidiary will generate revenue to support the social enterprise core.

2. Impact Investing and Funding Strategies:

  • Venture Philanthropy: Seek funding from impact investors who prioritize social impact alongside financial returns.
  • Social Impact Bonds: Explore the possibility of social impact bonds, where investors provide funding upfront and receive returns based on the achievement of specific social impact goals.
  • Microfinance: Partner with microfinance institutions to provide affordable financing to local healthcare providers who use the mobile clinic platform.

3. Scaling Strategies:

  • Social Franchising: Develop a social franchising model that allows local entrepreneurs to operate mobile clinics using Green's technology and business model.
  • Strategic Partnerships: Collaborate with NGOs, government agencies, and other healthcare organizations to expand reach and access resources.
  • Community Engagement: Involve local communities in the design and implementation of the mobile clinic program to ensure it meets their needs.

4. Marketing and Communication:

  • Social Media and Digital Marketing: Utilize social media platforms to raise awareness, build brand recognition, and engage with potential customers.
  • Community Outreach: Conduct community outreach programs to educate people about the mobile clinic services and build trust.
  • Partnerships with Local Media: Collaborate with local media outlets to promote the mobile clinic and its impact.

5. Basis of Recommendations

These recommendations are based on the following considerations:

  • Core Competencies and Consistency with Mission: The hybrid model aligns with Green's core competencies in healthcare delivery and technology while ensuring a strong social impact focus.
  • External Customers and Internal Clients: The model caters to the needs of underserved communities, local healthcare providers, and investors.
  • Competitors: The mobile clinic platform offers a unique and innovative solution that differentiates Green's venture from traditional healthcare providers.
  • Attractiveness ' Quantitative Measures: The hybrid model offers the potential for both social and financial returns, making it attractive to impact investors.

Assumptions:

  • Market Demand: There is a significant demand for affordable and accessible healthcare services in Kenya.
  • Technology Adoption: Local healthcare providers are willing to adopt the mobile clinic platform.
  • Government Support: The Kenyan government will support the initiative by providing regulatory approvals and facilitating partnerships.

6. Conclusion

By adopting a hybrid organizational structure, leveraging impact investing, and implementing strategic scaling strategies, Peter Green can build a sustainable and impactful healthcare venture that delivers affordable and accessible services to underserved communities in Kenya.

7. Discussion

Alternative Options:

  • Traditional Non-Profit Model: This model would rely solely on donations and grants, potentially limiting scalability and financial sustainability.
  • Purely For-Profit Model: This model could prioritize financial returns over social impact, potentially compromising Green's mission.

Risks and Key Assumptions:

  • Market Acceptance: There is a risk that the mobile clinic platform may not be widely accepted by local communities or healthcare providers.
  • Financial Sustainability: Achieving financial sustainability could be challenging, especially in the early stages of the venture.
  • Government Regulations: Changes in government policy or regulations could impact the operation of the mobile clinic.

8. Next Steps

Timeline:

  • Month 1: Finalize the hybrid organizational structure and secure initial funding.
  • Month 2: Develop the mobile clinic platform and recruit a team.
  • Month 3: Pilot the mobile clinic in a selected community and gather feedback.
  • Month 4: Expand operations to additional communities and build partnerships with local healthcare providers.

Key Milestones:

  • Secure funding from impact investors.
  • Develop a sustainable business model.
  • Demonstrate positive social impact in pilot communities.
  • Expand operations and reach a significant number of people.

By carefully considering these recommendations and addressing potential risks, Peter Green can create a successful and impactful healthcare venture that improves the lives of countless people in Kenya.

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Peter Green, a new salesperson for Scott Carpets, learns firsthand that his largest account has always been given a discount based on falsified information and expects the same preferred treatment to continue. Peter's boss condones the discount. Peter must decide whether to pursue the order on these conditions and how to handle his already shattered relationship with his boss.

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