Harvard Case - AARP Foundation (A)
"AARP Foundation (A)" Harvard business case study is written by Srikant M. Datar, Marc J. Epstein, Herman B. Leonard, Thomas F. Goodwin. It deals with the challenges in the field of Strategy. The case study is 16 page(s) long and it was first published on : Jun 25, 2007
At Fern Fort University, we recommend the AARP Foundation adopt a multi-pronged strategy focused on innovation and strategic alliances to expand its reach and impact. This strategy will leverage technology and analytics to enhance existing programs, develop new initiatives, and create a more sustainable competitive advantage in the evolving landscape of senior services.
2. Background
The AARP Foundation is a non-profit organization dedicated to empowering older adults to achieve financial security and live fulfilling lives. Facing a growing aging population and increasing demand for services, the Foundation seeks to expand its reach and impact. The case study highlights the Foundation's current programs, challenges, and potential opportunities for growth.
The main protagonists of the case are:
- Lisa Marsh: President and CEO of the AARP Foundation, tasked with navigating the organization's strategic direction and growth.
- AARP Foundation Staff: The dedicated team responsible for program implementation and outreach.
- Older Adults: The primary beneficiaries of the Foundation's services, facing challenges with financial security, access to healthcare, and social isolation.
3. Analysis of the Case Study
We utilize a combination of frameworks to analyze the AARP Foundation's situation:
1. SWOT Analysis:
- Strengths: Strong brand recognition, established infrastructure, dedicated staff, extensive network of partners, deep understanding of the needs of older adults.
- Weaknesses: Limited resources, potential for program duplication, reliance on traditional outreach methods, vulnerability to changing demographics and economic conditions.
- Opportunities: Leverage technology and analytics to improve efficiency and reach, expand into new service areas, forge strategic alliances with other organizations, explore international expansion.
- Threats: Increasing competition from other non-profits, potential for government funding cuts, changing societal attitudes towards aging, technological disruption.
2. Porter's Five Forces:
- Threat of New Entrants: High, due to the growing need for senior services and low barriers to entry for new non-profits.
- Bargaining Power of Buyers: Moderate, as older adults are a diverse group with varied needs, but they rely on the Foundation for essential services.
- Bargaining Power of Suppliers: Low, as the Foundation relies on a diverse network of suppliers for services and resources.
- Threat of Substitute Products: Moderate, as alternative providers like government programs and private companies offer similar services.
- Rivalry Among Existing Competitors: High, as the non-profit sector is highly competitive, with many organizations vying for funding and resources.
3. Value Chain Analysis:
- Primary Activities: Program development, outreach and recruitment, service delivery, fundraising, advocacy.
- Support Activities: Technology and analytics, human resources, finance, legal, communications.
4. Business Model Innovation:
The AARP Foundation can explore innovative business models to increase its impact, such as:
- Social Enterprise: Develop revenue-generating activities that support the Foundation's mission, like offering financial literacy workshops or providing consulting services to businesses.
- Crowdfunding: Leverage digital platforms to engage donors and raise funds from a wider audience.
- Partnerships: Collaborate with for-profit companies to develop products and services tailored to the needs of older adults, sharing revenue and expanding reach.
4. Recommendations
The AARP Foundation should implement the following recommendations to achieve sustainable growth and impact:
1. Embrace Technology and Analytics:
- Invest in data-driven decision making: Utilize technology and analytics to understand the needs of older adults, optimize program delivery, and measure impact.
- Develop digital platforms: Create user-friendly websites and mobile applications to provide information, connect with services, and engage with the community.
- Leverage social media: Utilize social media platforms to reach a wider audience, raise awareness, and build relationships with potential donors and partners.
2. Forge Strategic Alliances:
- Collaborate with other non-profits: Partner with organizations serving similar populations to share resources, leverage expertise, and expand reach.
- Engage with businesses: Form partnerships with companies that cater to older adults, offering services, promoting products, and generating revenue.
- Explore international partnerships: Collaborate with organizations in emerging markets to share best practices, adapt programs, and expand global impact.
3. Develop New Initiatives:
- Focus on emerging needs: Identify and address emerging challenges faced by older adults, such as digital literacy, social isolation, and ageism.
- Explore new service areas: Expand into areas like housing, transportation, and healthcare access to provide comprehensive support.
- Embrace disruptive innovation: Explore new technologies and approaches to address the unique needs of older adults, such as AI-powered caregiving or virtual reality for social interaction.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core competencies and consistency with mission: The recommendations align with the AARP Foundation's core competencies in program development, outreach, and advocacy, while remaining consistent with its mission to empower older adults.
- External customers and internal clients: The recommendations address the needs of older adults, while empowering staff to leverage technology and analytics to improve their work.
- Competitors: The recommendations aim to differentiate the AARP Foundation from competitors by leveraging technology and strategic alliances to create a unique value proposition.
- Attractiveness: The recommendations are expected to generate positive returns on investment by increasing efficiency, expanding reach, and generating new revenue streams.
6. Conclusion
By embracing innovation, forging strategic alliances, and leveraging technology, the AARP Foundation can position itself for sustainable growth and impact in the evolving landscape of senior services. This strategy will enable the Foundation to meet the growing needs of older adults, expand its reach, and create a lasting legacy of empowerment and support.
7. Discussion
Alternatives:
- Focusing solely on traditional outreach methods: This approach would limit the Foundation's ability to reach a wider audience and adapt to changing demographics.
- Merging with another organization: While this could provide access to resources and expertise, it could also lead to loss of identity and control.
Risks:
- Technological challenges: The Foundation may face challenges in implementing and managing new technologies.
- Partnering with the wrong organizations: Strategic alliances require careful selection and management to avoid conflicts of interest or reputational damage.
- Financial constraints: The Foundation may face financial constraints in implementing these recommendations.
Key Assumptions:
- The Foundation has the capacity to invest in technology and analytics.
- The Foundation can successfully forge strategic alliances with reputable organizations.
- The Foundation can adapt its programs and services to meet the evolving needs of older adults.
8. Next Steps
- Conduct a feasibility study: Assess the financial and operational feasibility of implementing the recommendations.
- Develop a strategic plan: Outline specific goals, timelines, and resources for implementing the recommendations.
- Pilot test new initiatives: Launch pilot programs to test the effectiveness of new technologies and services.
- Build capacity: Invest in training and development for staff to enhance their skills in technology, analytics, and partnership management.
- Monitor and evaluate progress: Regularly track progress towards goals and adapt the strategy based on results.
By following these steps, the AARP Foundation can ensure the successful implementation of its growth strategy and create a lasting impact on the lives of older adults.
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Case Description
AARP Foundation--a leading non-profit corporation--must create a new "Dashboard" performance measurement tool to track the effectiveness of its new strategic plan.
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