Harvard Case - School Feeding Program in Nigeria (A): Tetra Pak's Business and Development Goal
"School Feeding Program in Nigeria (A): Tetra Pak's Business and Development Goal" Harvard business case study is written by Ulrich Steger, Aileen Ionescu-Somers. It deals with the challenges in the field of Social Enterprise. The case study is 15 page(s) long and it was first published on : Feb 13, 2008
At Fern Fort University, we recommend Tetra Pak adopt a hybrid organizational structure to effectively address the complex needs of the Nigerian school feeding program. This approach combines the strengths of both for-profit and non-profit models, allowing Tetra Pak to achieve both its business goals and its commitment to social impact.
2. Background
This case study focuses on Tetra Pak, a global leader in food processing and packaging solutions, and its involvement in the Nigerian school feeding program. The program aims to improve the nutritional status of children, reduce poverty, and stimulate local economies. Tetra Pak seeks to leverage its expertise in packaging and distribution to support this initiative, while also seeking to expand its market presence in Nigeria.
The main protagonists are:
- Tetra Pak: A multinational company seeking to expand its market share and contribute to social development.
- The Nigerian government: The primary stakeholder responsible for implementing the school feeding program.
- Non-profit organizations: Partners involved in program implementation and community outreach.
- Local farmers and suppliers: Beneficiaries of increased demand for fresh produce and other food items.
- School children: The ultimate beneficiaries of the program, receiving nutritious meals and improved health outcomes.
3. Analysis of the Case Study
Strategic Framework: This case study can be analyzed through the lens of Shared Value Creation, a framework that emphasizes the alignment of business goals with social impact.
- Creating Economic Value: Tetra Pak can expand its market share in Nigeria by providing packaging solutions for the school feeding program. This creates new revenue streams and strengthens its brand reputation.
- Creating Social Value: The program directly addresses the issue of malnutrition among children, contributing to improved health and educational outcomes. It also supports local farmers and suppliers, fostering economic development in rural communities.
- Synergy: By aligning its business interests with social impact, Tetra Pak can create a win-win scenario for all stakeholders.
Challenges:
- Sustainability: The long-term sustainability of the program requires a robust financial model and efficient logistics.
- Transparency and accountability: Ensuring transparency in program implementation and accountability for resources is crucial to build trust with stakeholders.
- Government policy and regulation: Navigating complex government regulations and securing necessary permits can be challenging.
4. Recommendations
- Establish a Hybrid Organization: Create a separate entity that combines Tetra Pak's expertise with the expertise of non-profit organizations. This hybrid structure can leverage the resources and capabilities of both sectors to maximize impact.
- Develop a Sustainable Business Model: Implement a Blended Value approach, where social impact is integrated into the core business strategy. This could involve:
- Impact Investing: Seek investments from impact-focused investors who prioritize social returns alongside financial returns.
- Social Impact Bonds: Structure the program as a Social Impact Bond, where investors provide funding based on achieving measurable social outcomes.
- Fair Trade Practices: Ensure fair prices and ethical sourcing practices for local farmers and suppliers.
- Prioritize Transparency and Accountability: Implement robust monitoring and evaluation systems to track program performance and ensure accountability for resources. This can involve:
- Social Impact Measurement: Develop a comprehensive framework for measuring the social impact of the program, including improvements in child nutrition, school attendance, and community development.
- Independent Audits: Engage independent auditors to verify program performance and ensure transparency in financial management.
- Foster Strategic Alliances: Build strong partnerships with key stakeholders, including:
- Government Agencies: Collaborate with relevant government ministries to ensure program alignment with national policies and regulations.
- Non-profit Organizations: Partner with local NGOs to leverage their expertise in community outreach, program implementation, and capacity building.
- Local Farmers and Suppliers: Develop sustainable sourcing strategies that empower local communities and promote economic development.
5. Basis of Recommendations
This recommendation aligns with Tetra Pak's mission to 'make food safe and available everywhere.' It leverages the company's core competencies in packaging and distribution while creating a positive social impact. The hybrid organizational structure addresses the challenges of sustainability and accountability, ensuring long-term success.
The recommendation considers the needs of all stakeholders, including school children, local communities, the Nigerian government, and Tetra Pak itself. The Blended Value approach provides a financially sustainable model, while the emphasis on transparency and accountability builds trust and ensures responsible program implementation.
6. Conclusion
By adopting a hybrid organizational structure and implementing a Blended Value approach, Tetra Pak can effectively contribute to the Nigerian school feeding program while achieving its business objectives. This strategy aligns with the principles of Social Entrepreneurship, where business models are designed to create both social and economic value.
7. Discussion
Alternative approaches include:
- Purely philanthropic model: Tetra Pak could solely fund the program through charitable donations. However, this approach is less sustainable and may not leverage the company's core competencies.
- Traditional business model: Tetra Pak could focus solely on selling packaging solutions to the government, without actively participating in program implementation. This approach may limit the company's social impact and miss opportunities for deeper engagement.
Risks and Key Assumptions:
- Political instability: Political instability in Nigeria could disrupt program implementation and create uncertainties.
- Market competition: Competition from other packaging companies could affect Tetra Pak's market share.
- Government funding: Government funding for the program may be subject to budget constraints or changes in policy.
8. Next Steps
- Establish a task force: Form a task force to develop a detailed implementation plan for the hybrid organizational structure.
- Conduct feasibility studies: Conduct feasibility studies to assess the financial viability and social impact of the proposed business model.
- Pilot program: Implement a pilot program in a limited number of schools to test the effectiveness of the program and refine the model.
- Secure funding: Secure funding from impact investors and other stakeholders to support the program's expansion.
- Develop a communication strategy: Develop a clear communication strategy to engage stakeholders and build support for the program.
By taking these steps, Tetra Pak can successfully implement the Nigerian school feeding program, creating a positive social impact while also achieving its business goals. This case study highlights the potential of Social Entrepreneurship to drive sustainable development and address social challenges in emerging markets.
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Case Description
The case documents Tetra Pak's ambitious efforts to collaborate with the governor of Nasarawa State in Nigeria in the setting up of a school feeding program based on a non-milk product that will eventually use local cereals; Nutrisip. This is a business, and not a philanthropic initiative that is also aimed at kick-starting local industry (thus relieving poverty) while improving child nutrition at the same time. It is engaging Tetra Pak in tackling many challenging business and development issues. The case shows the experience of Tetra Pak over the first two years of the program and illustrates the challenges and obstacles encountered by the company while trying to get this ambitious program off the ground, promote local production of Nutrisip and secure the supply and distribution chain for the product. Learning objective: 1. Change traditional perceptions of the role of business in society 2. Show how innovation can be introduced in a sustainable manner and in a developing country 3. Understand the challenges of working in a developing world context at its most challenging 4. Understand the power of partnerships to reinforce corporate sustainability initiatives.
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