Harvard Case - Waste Concern in Dhaka: Scaling a Model for Urban Waste Management
"Waste Concern in Dhaka: Scaling a Model for Urban Waste Management" Harvard business case study is written by Steven Callander, Joseph Golden, Blake Kavanaugh. It deals with the challenges in the field of Social Enterprise. The case study is 18 page(s) long and it was first published on : May 13, 2021
At Fern Fort University, we recommend that Waste Concern, a leading social enterprise in Dhaka, Bangladesh, adopt a multi-pronged strategy to scale its operations and achieve greater impact. This strategy will focus on leveraging social entrepreneurship principles, fostering strategic alliances, and implementing sustainable business models to address the growing waste management challenge in Dhaka and beyond.
2. Background
The case study focuses on Waste Concern, a non-profit organization established in 1997 to address the pressing issue of urban waste management in Dhaka, Bangladesh. The organization operates a successful model that involves collecting, sorting, and recycling waste, providing employment opportunities for marginalized communities, and promoting environmental sustainability. However, Waste Concern faces the challenge of scaling its operations to meet the growing demand for waste management services in a rapidly urbanizing Dhaka.
The main protagonists are:
- A.K.M. Mahbubul Haque, Founder and Executive Director of Waste Concern, who is passionate about finding sustainable solutions to waste management.
- The team at Waste Concern, dedicated to improving the lives of marginalized communities and protecting the environment.
- The residents of Dhaka, who are increasingly affected by the growing waste problem.
3. Analysis of the Case Study
The case study presents a compelling example of a social enterprise tackling a significant societal challenge. Waste Concern's success can be attributed to its commitment to corporate social responsibility, environmental sustainability, and social innovation. However, scaling its operations requires a strategic approach that considers the following:
Strategic Framework:
- Triple Bottom Line: Waste Concern needs to balance its social, environmental, and economic objectives. This involves expanding its reach to more communities, minimizing its environmental footprint, and achieving financial sustainability.
- Impact Investing: Attracting investors who are interested in social impact and sustainable development is crucial for scaling operations.
- Stakeholder Theory: Engaging with diverse stakeholders, including residents, government agencies, businesses, and NGOs, is essential for building trust and securing support.
- Circular Economy: Waste Concern's model aligns with the principles of a circular economy by promoting waste reduction, recycling, and resource recovery.
Financial Analysis:
- Microfinance: Explore partnerships with microfinance institutions to provide financial support to waste pickers and other stakeholders.
- Social Impact Bonds: Seek funding through social impact bonds that reward positive outcomes related to waste management.
- Venture Philanthropy: Attract venture philanthropists who are willing to invest in high-impact social enterprises.
Marketing and Operations:
- Social Enterprise Marketing: Develop a marketing strategy that highlights Waste Concern's social impact and environmental benefits.
- Inclusive Business Models: Design business models that integrate marginalized communities and promote diversity and inclusion.
- Strategic Alliances: Partner with businesses, NGOs, and government agencies to expand reach and leverage resources.
- Change Management: Implement effective change management strategies to adapt to growth and maintain organizational effectiveness.
4. Recommendations
To scale its operations and achieve greater impact, Waste Concern should consider the following recommendations:
- Develop a Sustainable Business Model: Implement a hybrid organization model that combines elements of a non-profit and a for-profit entity. This would allow Waste Concern to attract more investment, diversify revenue streams, and achieve financial sustainability.
- Expand Geographic Reach: Focus on expanding operations to other urban areas in Bangladesh and eventually to other developing countries facing similar waste management challenges.
- Strengthen Partnerships: Build strategic alliances with local businesses, NGOs, and government agencies. This will enable Waste Concern to leverage resources, access new markets, and create a more comprehensive waste management ecosystem.
- Invest in Technology: Implement innovative technologies, such as waste sorting and recycling equipment, to improve efficiency, reduce costs, and enhance environmental sustainability.
- Develop a Robust Social Impact Measurement Framework: Implement a comprehensive framework to measure the social and environmental impact of Waste Concern's operations. This will provide valuable data for reporting, attracting investors, and demonstrating the value of its work.
- Promote Social Entrepreneurship: Encourage social entrepreneurship within the organization by empowering employees to develop innovative solutions to waste management challenges.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies and Consistency with Mission: The recommendations align with Waste Concern's core competencies in waste management and its mission to promote environmental sustainability and social justice.
- External Customers and Internal Clients: The recommendations address the needs of external customers, such as residents and businesses, and internal clients, such as waste pickers and employees.
- Competitors: The recommendations consider the competitive landscape and aim to differentiate Waste Concern through its social impact, innovative approach, and strong partnerships.
- Attractiveness: The recommendations are designed to enhance Waste Concern's attractiveness to investors, partners, and stakeholders by demonstrating its financial viability, social impact, and environmental sustainability.
6. Conclusion
Waste Concern has the potential to become a leading model for sustainable waste management in Bangladesh and beyond. By adopting a strategic approach that leverages social entrepreneurship, strategic alliances, and sustainable business models, Waste Concern can scale its operations, achieve greater impact, and contribute to a cleaner and more sustainable future for Dhaka and other urban centers.
7. Discussion
Alternatives:
- Focus solely on non-profit model: This approach may limit Waste Concern's growth potential and financial sustainability.
- Merge with a larger organization: This could provide access to resources and expertise but could also compromise Waste Concern's autonomy and mission.
Risks and Key Assumptions:
- Political instability: Political instability in Bangladesh could impact Waste Concern's operations and funding.
- Competition from other waste management companies: Increased competition could erode Waste Concern's market share.
- Financial sustainability: Achieving financial sustainability requires attracting sufficient investment and managing costs effectively.
8. Next Steps
- Develop a comprehensive strategic plan: This plan should outline Waste Concern's vision, mission, goals, and strategies for scaling operations.
- Conduct a feasibility study: This study should assess the financial viability, market potential, and social impact of expanding operations.
- Secure funding: Waste Concern should seek funding from impact investors, venture philanthropists, and other sources.
- Build strategic partnerships: Form partnerships with businesses, NGOs, and government agencies to leverage resources and expand reach.
- Implement a robust social impact measurement framework: This framework will provide valuable data for reporting, attracting investors, and demonstrating the value of Waste Concern's work.
By taking these steps, Waste Concern can effectively scale its operations and contribute to a cleaner and more sustainable future for Dhaka and beyond.
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Case Description
In March 2006, Iftekhar Enayetullah and Abu Hasnat Md. Maqsood Sinha, the cofounders of Waste Concern, a social enterprise based in Dhaka, Bangladesh, and focused on developing innovative waste management solutions for cities in emerging Asia, faced their biggest challenge yet: scaling up their organization's activities and impact. The previous fall, working with a Dutch recycling firm, Waste Concern had secured approval from the United Nations and the Bangladeshi government for two projects under the Kyoto Protocol's Clean Development Mechanism, a policy program designed to spur infrastructure investments in emerging countries that would help reduce global greenhouse gas emissions. To move forward with the projects, Waste Concern also required access to the Matuail landfill, which was owned and operated by the Dhaka City Corporation, the city government of Bangladesh's capital. But despite the projects' obvious benefits to Dhaka and Waste Concern's lobbying of key local officials for months, the DCC still had not granted its permission, and it was unclear whether the DCC ever would. The clock was ticking for Enayetullah and Sinha. Was there a way to persuade the DCC to provide access to the landfill so that Waste Concern could pursue the two CDM projects at Matuail as planned? Or would the social entrepreneurs be better off taking a different path to scale Waste Concern's efforts to address urban waste management and global climate change?
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