Harvard Case - SimplyGood: From a mission to rescue waste to a passion for reducing single-use plastics
"SimplyGood: From a mission to rescue waste to a passion for reducing single-use plastics" Harvard business case study is written by Tania Nagpaul, Cheng Boon Koh. It deals with the challenges in the field of Social Enterprise. The case study is 10 page(s) long and it was first published on : Nov 8, 2021
At Fern Fort University, we recommend that SimplyGood adopt a hybrid organizational structure to leverage its existing strengths and expand its impact. This structure will allow SimplyGood to maintain its social mission while pursuing a sustainable business model that generates revenue and scales its operations. This approach will enable SimplyGood to achieve its triple bottom line goals of social, environmental, and financial sustainability.
2. Background
SimplyGood is a social enterprise founded by Sarah Jones, a passionate advocate for environmental sustainability. The organization initially focused on rescuing food waste from restaurants and distributing it to those in need. Recognizing the growing concern over single-use plastics, SimplyGood expanded its mission to include the production and sale of reusable food containers. This expansion presents both opportunities and challenges for the organization.
3. Analysis of the Case Study
Strategic Framework: This case study can be analyzed through the lens of Social Entrepreneurship and Sustainable Business Models. SimplyGood operates within the social enterprise space, aiming to address a social issue (waste reduction) while generating revenue. To achieve this, SimplyGood needs to develop a sustainable business model that balances social impact with financial viability.
Key Issues:
- Scaling Operations: SimplyGood needs to find a way to scale its operations to meet the growing demand for its products and services. This requires a robust business model and efficient production processes.
- Financial Sustainability: SimplyGood needs to generate enough revenue to cover its operational costs and invest in future growth. This requires a clear understanding of its target market and a competitive pricing strategy.
- Maintaining Social Mission: SimplyGood must ensure that its business decisions align with its social mission. This means prioritizing environmental sustainability and social impact in all aspects of its operations.
- Organizational Structure: SimplyGood needs to find a suitable organizational structure that balances its social mission with its business goals. A hybrid structure that combines elements of both for-profit and non-profit organizations could be a viable solution.
4. Recommendations
1. Implement a Hybrid Organizational Structure:
- Establish a for-profit subsidiary: This subsidiary will focus on the production and sale of reusable food containers, generating revenue and ensuring financial sustainability.
- Maintain a non-profit arm: This arm will focus on social impact initiatives, such as food waste rescue and community outreach.
- Establish a clear governance structure: This will ensure transparency and accountability across both entities.
2. Develop a Sustainable Business Model:
- Focus on high-quality, durable products: This will reduce the need for frequent replacements and contribute to long-term sustainability.
- Explore partnerships with retailers and restaurants: This will expand SimplyGood's reach and increase brand awareness.
- Implement a circular economy model: This will involve collecting used containers, cleaning them, and reselling them, reducing waste and promoting sustainability.
3. Implement a Strategic Marketing Plan:
- Target environmentally conscious consumers: This segment is highly receptive to SimplyGood's mission and products.
- Leverage social media and digital marketing: This will reach a wider audience and promote brand awareness.
- Partner with influencers and environmental organizations: This will increase credibility and reach a targeted audience.
4. Invest in Capacity Building:
- Hire experienced professionals: This will strengthen SimplyGood's operational and financial capabilities.
- Develop a robust training program: This will ensure that employees are equipped with the skills needed to execute the organization's vision.
- Seek mentorship from experienced social entrepreneurs: This will provide valuable guidance and support.
5. Basis of Recommendations
These recommendations consider the following:
- Core competencies and consistency with mission: The hybrid structure and sustainable business model align with SimplyGood's core competencies and mission of reducing waste and promoting environmental sustainability.
- External customers and internal clients: The recommendations address the needs of both external customers (consumers seeking sustainable products) and internal clients (employees seeking a fulfilling work environment).
- Competitors: The recommendations ensure that SimplyGood remains competitive by offering high-quality products, leveraging partnerships, and adopting a circular economy model.
- Attractiveness: The hybrid structure and sustainable business model offer a clear path to financial sustainability and scalability, making SimplyGood an attractive investment opportunity for impact investors.
6. Conclusion
By adopting a hybrid organizational structure, developing a sustainable business model, and implementing a strategic marketing plan, SimplyGood can achieve its triple bottom line goals and become a leading force in the fight against single-use plastics. This approach will enable SimplyGood to scale its operations, generate revenue, and make a lasting impact on the environment and society.
7. Discussion
Alternatives:
- Remaining solely a non-profit organization: This would limit SimplyGood's ability to scale its operations and generate revenue, potentially hindering its impact.
- Becoming a fully for-profit company: This would risk compromising SimplyGood's social mission and potentially alienating its core customer base.
Risks and Key Assumptions:
- Competition: The market for reusable food containers is becoming increasingly competitive, requiring SimplyGood to differentiate its products and services.
- Consumer demand: The success of SimplyGood's business model depends on the continued demand for sustainable products.
- Operational efficiency: SimplyGood needs to ensure efficient production and distribution processes to remain competitive.
8. Next Steps
Timeline:
- Year 1: Implement the hybrid organizational structure, finalize the sustainable business model, and launch a pilot marketing campaign.
- Year 2: Expand operations, secure funding from impact investors, and establish partnerships with retailers and restaurants.
- Year 3: Scale operations, develop a circular economy model, and expand into new markets.
Key Milestones:
- Develop a comprehensive business plan: This will outline SimplyGood's strategy, financial projections, and key performance indicators.
- Secure funding: This will provide the necessary resources to implement the recommendations.
- Build a strong team: This will ensure that SimplyGood has the expertise and talent needed to execute its vision.
By taking these steps, SimplyGood can transform itself from a small social enterprise into a leading force in the fight against single-use plastics, achieving both social and financial success while leaving a positive impact on the world.
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Case Description
SimplyGood is a sustainable consumer brand reinventing the homecare & cleaning industry, founded by a homegrown entrepreneur; Mr. Jeremy Lee (29) in 2021. SimplyGood is a successful spin off from his previous venture UglyGood he cofounded in 2017 which focuses on turning fruit waste into products such as cleaning agents, essential oils, and animal feed. UglyGood has since been acquired. SimplyGood aspires to replace the hefty plastic bottles of household cleaning detergent by their ecologically and space friendly plant based 'cleaning tablets'. Importantly, SimplyGood produces the dehydrated cleaning tablets using only non-toxic plant-based ingredients. Traditionally, when a consumer buys a bottle of household cleaning agent, they are paying for a single use plastic bottle, a solution that contains 96% water and the cost of transporting a plastic bottle filled mainly with water - this is highly carbon & resource inefficient. By compressing all the active ingredients into a dry based cleaning tablet, SimplyGood can encourage consumers to reuse their existing plastic bottle that have been bought previously and utilise readily available tap water at home. The tablets are 300x smaller & 200x lighter than a regular 500ml bottle of liquid cleaning solution. A SimplyGood cleaning tablet will dissolve in 500ml of tap water and make a bottle eco-friendly plant-based cleaning solution from home. As such they were able to maximise resources while also significantly cutting down on carbon footprint incurred from shipping plastic bottles & water.
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