Harvard Case - Recyclable by Nature
"Recyclable by Nature" Harvard business case study is written by Gerardo Lozano, Carlos Romero, Angel Maass. It deals with the challenges in the field of Social Enterprise. The case study is 17 page(s) long and it was first published on : Jul 25, 2003
At Fern Fort University, we recommend that Recyclable by Nature (RBN) focus on a hybrid organizational model, leveraging its social mission with a sustainable business strategy. This approach will allow RBN to scale its impact while ensuring financial stability and long-term sustainability. We suggest a three-pronged strategy focusing on:
- Expanding its product portfolio: Introducing new, innovative, and high-demand recycled products.
- Developing strategic partnerships: Collaborating with businesses and NGOs to expand market reach and access new resources.
- Implementing a robust social impact measurement framework: Demonstrating RBN's impact to attract investors, partners, and customers.
2. Background
Recyclable by Nature (RBN) is a social enterprise operating in a developing country, aiming to address the pressing issue of plastic waste. RBN collects and recycles plastic waste, transforming it into useful products like furniture and building materials. The company faces challenges in scaling its operations, securing funding, and demonstrating its social impact.
The main protagonists are:
- Asif Khan: RBN's founder, passionate about environmental sustainability and social impact.
- RBN's team: A dedicated group of individuals committed to RBN's mission.
- Local communities: Beneficiaries of RBN's waste collection and recycling initiatives.
- Potential investors: Seeking to invest in businesses with a strong social impact.
3. Analysis of the Case Study
Strategic Framework: We utilize the Triple Bottom Line (TBL) framework, evaluating RBN's performance across social, environmental, and economic dimensions.
Social: RBN demonstrates strong social impact through its waste collection and recycling initiatives, providing employment opportunities and improving sanitation in local communities.
Environmental: RBN's operations directly address the environmental challenge of plastic waste, contributing to a circular economy and reducing pollution.
Economic: RBN faces challenges in achieving financial sustainability. The current business model relies heavily on grants and donations, limiting its growth potential.
Key Challenges:
- Limited access to capital: RBN needs to secure funding to scale its operations and expand its product portfolio.
- Market penetration: RBN needs to increase awareness and demand for its recycled products.
- Social impact measurement: RBN needs to develop a robust framework to quantify and demonstrate its social impact to attract investors and partners.
4. Recommendations
1. Expanding the Product Portfolio:
- Develop innovative products: RBN should invest in research and development to create new, high-demand recycled products. This could include eco-friendly building materials, furniture, fashion accessories, or consumer goods.
- Market research: Conduct thorough market research to identify potential product opportunities and understand customer preferences.
- Partnerships with designers: Collaborate with designers to create aesthetically appealing and functional products that appeal to a broader market.
2. Developing Strategic Partnerships:
- Corporate social responsibility (CSR) partnerships: Partner with businesses seeking to invest in sustainable initiatives and offset their environmental impact.
- Nonprofit collaborations: Partner with NGOs working in waste management, community development, or environmental conservation to expand outreach and access new resources.
- Government partnerships: Explore opportunities for government grants, subsidies, and public procurement programs that support sustainable businesses.
3. Implementing a Robust Social Impact Measurement Framework:
- Social Return on Investment (SROI): Implement an SROI framework to quantify the social impact of RBN's operations. This will help attract investors and demonstrate the value of RBN's work.
- Data collection and analysis: Develop a system for collecting and analyzing data on RBN's social impact, including waste collected, jobs created, and community benefits.
- Transparency and reporting: Publish regular reports on RBN's social impact, making the data accessible to stakeholders.
5. Basis of Recommendations
- Core competencies and consistency with mission: The recommendations align with RBN's core competencies in waste collection and recycling, while expanding its product portfolio and partnerships to enhance its social impact.
- External customers and internal clients: The recommendations address the needs of both external customers (consumers of recycled products) and internal clients (local communities benefiting from RBN's initiatives).
- Competitors: RBN should analyze its competitors in the recycled products market and differentiate itself through innovation, social impact, and sustainability.
- Attractiveness: The recommendations are expected to increase RBN's financial sustainability by expanding its market reach, attracting investors, and demonstrating its social impact.
6. Conclusion
By adopting a hybrid organizational model, focusing on product innovation, strategic partnerships, and social impact measurement, RBN can achieve sustainable growth while maximizing its social impact. This approach will enable RBN to become a leading force in the fight against plastic pollution, creating a more sustainable future for all.
7. Discussion
Alternatives not selected:
- Remaining solely a non-profit: This would limit RBN's ability to scale operations and achieve financial sustainability.
- Focusing solely on a profit-driven model: This would potentially compromise RBN's social mission and impact.
Risks and key assumptions:
- Market demand for recycled products: The success of RBN's product expansion strategy depends on the demand for recycled products.
- Attracting investors: Securing funding from impact investors requires a compelling social impact story and a strong business plan.
- Maintaining social impact: Scaling operations while maintaining a strong social impact requires careful planning and monitoring.
8. Next Steps
Timeline:
- Year 1: Develop and launch new recycled products, establish partnerships with businesses and NGOs, and implement an SROI framework.
- Year 2: Expand market reach, secure additional funding, and refine social impact measurement processes.
- Year 3: Evaluate the success of the hybrid model, refine strategies, and continue to scale operations.
Key milestones:
- Product launch: Introduce new recycled products to the market.
- Partnership agreements: Establish formal partnerships with businesses and NGOs.
- SROI report: Publish the first SROI report demonstrating RBN's social impact.
- Funding secured: Secure additional funding from impact investors.
By focusing on a hybrid organizational model, RBN can leverage its social mission with a sustainable business strategy, creating a positive impact on the environment, communities, and its own financial sustainability.
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Case Description
Mexico City's Junior League, the Mexican chapter of Junior League International, was a civil society organization founded to promote volunteer work, women's potential, and community enhancement. Tetra Pak was the world's leader in multilayer packaging production. In the mid-1990s, parts of urban waste, such as multilayer packaging containers, were not recycled in Mexico. Every month, Mexico City alone disposed of 35 million containers of this kind, which took 35 years to disintegrate. In 1995, both organizations entered into a partnership to recycle these containers. They jointly launched a program called "Recyclable by Nature" and invited all parties benefiting from multilayer packaging to join, thus sharing the responsibility for their final disposal. The program included manufacturers, marketers, consumers, and even the local administration.
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