Harvard Case - Audubon in 2017: The Turnaround
"Audubon in 2017: The Turnaround" Harvard business case study is written by V. Kasturi Rangan. It deals with the challenges in the field of Strategy. The case study is 33 page(s) long and it was first published on : Aug 16, 2017
At Fern Fort University, we recommend Audubon Society implement a multi-pronged strategic plan focused on digital transformation, membership growth, and sustainable revenue generation. This plan leverages Audubon's core competencies in conservation, education, and advocacy while adapting to the changing landscape of environmentalism and the increasing importance of digital engagement.
2. Background
The case study explores the Audubon Society's challenges in 2017. Facing declining membership, stagnant revenue, and a changing environmental landscape, Audubon needed to find a new path to success. The organization's core mission ' to conserve birds and their habitats ' remained relevant, but its traditional model of engaging members through print publications and local chapters was becoming outdated.
The main protagonists are David Yarnold, the CEO of Audubon, and his team, who are tasked with navigating the organization through this period of transition.
3. Analysis of the Case Study
SWOT Analysis:
- Strengths: Strong brand recognition, deep expertise in bird conservation, extensive network of local chapters, passionate and dedicated staff and volunteers.
- Weaknesses: Declining membership, reliance on traditional engagement methods, limited digital presence, lack of a cohesive brand strategy, insufficient funding for innovation.
- Opportunities: Growing interest in environmental issues, increasing use of technology for engagement and education, potential for new revenue streams through digital platforms and partnerships.
- Threats: Competition from other environmental organizations, changing donor and member demographics, climate change and its impact on bird populations, funding cuts from government agencies.
Porter's Five Forces:
- Threat of New Entrants: High, due to the increasing number of environmental organizations and the relative ease of starting a non-profit.
- Bargaining Power of Buyers (Members and Donors): Moderate, as members and donors have alternative options for supporting environmental causes.
- Bargaining Power of Suppliers: Low, as Audubon relies on a diverse range of suppliers for its operations.
- Threat of Substitute Products: Moderate, as other environmental organizations offer similar services and programs.
- Rivalry Among Existing Competitors: High, as the environmental sector is crowded with organizations vying for resources and attention.
Value Chain Analysis:
Audubon's value chain is built around its core competencies in conservation, education, and advocacy. The organization's value proposition is to protect birds and their habitats through scientific research, habitat restoration, education programs, and advocacy efforts. However, the case study highlights the need to modernize the value chain to better leverage technology and reach a wider audience.
Business Model Innovation:
Audubon needs to move beyond its traditional business model and embrace new ways of engaging members and generating revenue. This includes:
- Digital Transformation: Developing a comprehensive digital strategy that leverages the internet, social media, and mobile apps to connect with members and supporters, provide educational content, and raise awareness about conservation issues.
- Membership Growth: Expanding membership through targeted marketing campaigns, offering diverse membership levels and benefits, and creating a more inclusive and welcoming community.
- Sustainable Revenue Generation: Diversifying revenue streams by exploring partnerships, licensing opportunities, and new fundraising initiatives.
4. Recommendations
1. Digital Transformation:
- Develop a comprehensive digital strategy: This should include a robust website, engaging social media presence, and mobile apps that provide interactive educational content, citizen science opportunities, and personalized member experiences.
- Invest in technology and analytics: Utilize data analytics to understand member behavior, track campaign effectiveness, and personalize communication.
- Build a strong online community: Create online forums, discussion groups, and virtual events to foster a sense of community and encourage member engagement.
- Develop digital fundraising initiatives: Explore online crowdfunding platforms, peer-to-peer fundraising campaigns, and digital advertising to reach new donors.
2. Membership Growth:
- Segment the market: Identify different member segments with varying needs and interests.
- Develop targeted marketing campaigns: Utilize data analytics and social media advertising to reach specific segments.
- Offer diverse membership levels and benefits: Cater to different levels of engagement and financial capacity.
- Create a more inclusive and welcoming community: Promote diversity and inclusion within the organization and its programs.
3. Sustainable Revenue Generation:
- Explore partnerships with businesses and foundations: Seek out strategic partnerships that align with Audubon's mission and provide new revenue streams.
- License Audubon's brand and intellectual property: Explore licensing opportunities for educational materials, merchandise, and other products.
- Develop new fundraising initiatives: Explore innovative fundraising models like impact investing and crowdfunding.
- Optimize existing revenue streams: Improve efficiency and effectiveness of existing fundraising programs.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core competencies and consistency with mission: The recommendations focus on leveraging Audubon's core competencies in conservation, education, and advocacy while adapting to the changing landscape of environmentalism.
- External customers and internal clients: The recommendations prioritize member engagement, donor acquisition, and stakeholder satisfaction.
- Competitors: The recommendations aim to differentiate Audubon from its competitors by focusing on digital innovation, community building, and sustainable revenue generation.
- Attractiveness: The recommendations are expected to increase membership, revenue, and brand visibility, leading to long-term sustainability and impact.
6. Conclusion
Audubon Society faces a critical juncture in its history. By embracing digital transformation, focusing on membership growth, and pursuing sustainable revenue generation, Audubon can secure its future and continue to make a significant impact on bird conservation and environmental protection.
7. Discussion
Alternatives not selected:
- Mergers and acquisitions: While mergers and acquisitions could provide access to new resources and expertise, they could also lead to cultural clashes and loss of identity.
- Outsourcing: Outsourcing certain functions could save costs but could also compromise quality and control.
Risks and key assumptions:
- Digital transformation: The success of the digital strategy depends on the organization's ability to adapt to rapidly evolving technology and maintain a strong online presence.
- Membership growth: Achieving significant membership growth requires effective marketing campaigns, diverse membership offerings, and a welcoming community.
- Sustainable revenue generation: Diversifying revenue streams requires innovative fundraising models and strategic partnerships.
8. Next Steps
- Develop a detailed implementation plan: This should include timelines, budgets, and key milestones for each recommendation.
- Build a cross-functional team: Assemble a team with expertise in digital marketing, membership management, fundraising, and strategic planning.
- Communicate the plan to stakeholders: Share the strategic plan with staff, volunteers, members, and donors to ensure buy-in and support.
- Monitor progress and make adjustments: Regularly track progress against key performance indicators and make necessary adjustments to the plan.
By taking these steps, Audubon Society can navigate the challenges of the 21st century and continue to be a leading voice for bird conservation and environmental protection.
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Case Description
The case briefly describes the 112 year history of the organization, and focuses particularly on the changes wrought by its new leader David Yarnold who was brought in by the board in 2010. Under Yarnold's leadership the organization went through two strategic plans (2012-2016 and 2016-2020), and brought about many changes. At the start of 2017, Yarnold declared his goal of making Audubon the most effective conservation network in America. What actions should Audubon take to get to that goal?
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