Harvard Case - The Challenge of Sharing Absolutely Everything: The Case of Le Manoir, an Income-Sharing Intentional Community (Part A)
"The Challenge of Sharing Absolutely Everything: The Case of Le Manoir, an Income-Sharing Intentional Community (Part A)" Harvard business case study is written by Genevieve PROULX-MASSON, Yves-Marie ABRAHAM. It deals with the challenges in the field of Strategy. The case study is 13 page(s) long and it was first published on : May 9, 2022
At Fern Fort University, we recommend that Le Manoir adopt a hybrid business model that leverages its unique intentional community structure to attract members while simultaneously generating revenue through sustainable income-sharing strategies. This approach will enable Le Manoir to achieve sustainable growth and financial stability while maintaining its core values of community, collaboration, and environmental sustainability.
2. Background
Le Manoir is an intentional community located in rural France, founded on principles of shared living, income, and decision-making. The community faces challenges in attracting new members and achieving financial stability, despite its strong values and commitment to sustainable living. The case study focuses on the community's struggle to maintain its core values while adapting to the evolving needs of potential members and the broader economic landscape.
The main protagonists of the case study are:
- Jean-Pierre: The founder and leader of Le Manoir, deeply committed to the community's values and its long-term sustainability.
- The members: A diverse group of individuals with varying backgrounds and motivations for joining Le Manoir, who are seeking a more meaningful and sustainable way of life.
- Potential members: Individuals who are attracted to Le Manoir's values but are hesitant to commit due to concerns about financial stability and the level of commitment required.
3. Analysis of the Case Study
To analyze Le Manoir's situation, we can utilize several frameworks:
1. SWOT Analysis:
- Strengths: Strong community values, commitment to sustainability, unique living experience, experienced leadership, existing infrastructure.
- Weaknesses: Limited financial resources, difficulty attracting new members, lack of clear revenue streams, potential for conflict within the community.
- Opportunities: Growing interest in sustainable living, increasing demand for alternative lifestyles, potential for partnerships with local businesses and organizations.
- Threats: Economic uncertainty, competition from other intentional communities, changing demographics, potential for regulatory challenges.
2. Porter's Five Forces:
- Threat of new entrants: Moderate, as setting up an intentional community requires significant resources and commitment.
- Bargaining power of buyers: High, as members have the option to leave the community if they are not satisfied.
- Threat of substitute products: Moderate, as alternative lifestyles and communities exist but may not offer the same unique experience as Le Manoir.
- Bargaining power of suppliers: Low, as Le Manoir can source goods and services from various suppliers.
- Rivalry among existing firms: Moderate, as the number of intentional communities is growing, but each community offers a unique experience.
3. Value Chain Analysis:
Le Manoir's value chain can be analyzed through its core activities:
- Inbound Logistics: Sourcing food, materials, and resources for the community.
- Operations: Managing daily operations, including farming, maintenance, and community activities.
- Outbound Logistics: Distributing products and services to members and external customers.
- Marketing & Sales: Attracting new members and promoting the community's values.
- Service: Providing support and resources to members, including education, healthcare, and social activities.
4. Business Model Canvas:
- Value Propositions: Sustainable living, community, shared decision-making, access to resources, alternative lifestyle.
- Customer Segments: Individuals seeking a meaningful and sustainable way of life, families, retirees, environmentalists.
- Channels: Online presence, social media, word-of-mouth, partnerships with organizations.
- Customer Relationships: Strong community bonds, open communication, shared values.
- Revenue Streams: Membership fees, income from sustainable farming and production, workshops and retreats, partnerships with local businesses.
- Key Activities: Community management, farming and production, education and outreach, fundraising.
- Key Resources: Land, infrastructure, community members, skills and expertise.
- Key Partnerships: Local businesses, NGOs, universities, government agencies.
- Cost Structure: Operating costs, maintenance, salaries, marketing and outreach.
4. Recommendations
Le Manoir should adopt a hybrid business model that combines its core values with strategic income-generating activities. This model can be implemented through the following steps:
1. Diversification of Revenue Streams:
- Expand Sustainable Farming and Production: Develop a value-added approach to farming by focusing on niche markets like organic produce, artisanal goods, and eco-friendly products.
- Offer Workshops and Retreats: Leverage Le Manoir's expertise in sustainable living to offer workshops and retreats on topics like permaculture, organic gardening, and eco-tourism.
- Develop Partnerships with Local Businesses: Collaborate with local businesses to offer services like catering, event management, and sustainable tourism packages.
- Explore Online Sales: Create an online platform to sell products and services to a wider audience, leveraging the growing market for sustainable goods and services.
2. Targeted Marketing and Outreach:
- Develop a Clear Value Proposition: Define a clear and compelling value proposition that resonates with potential members, highlighting the unique benefits of living at Le Manoir.
- Utilize Social Media and Online Marketing: Leverage social media platforms and online marketing strategies to reach a wider audience and showcase the community's values and lifestyle.
- Partner with Organizations: Collaborate with organizations that share similar values, such as environmental groups, sustainable living advocates, and educational institutions.
- Offer Trial Membership Options: Provide potential members with the opportunity to experience life at Le Manoir through short-term trial memberships.
3. Strengthen Community Governance and Decision-Making:
- Develop a Clear Financial Plan: Establish a transparent and sustainable financial plan that outlines revenue streams, expenses, and investment strategies.
- Implement a Community-Based Budgeting System: Involve members in the budgeting process to ensure transparency and accountability.
- Establish a Governance Structure: Develop a clear governance structure that outlines roles, responsibilities, and decision-making processes.
- Promote Open Communication and Dialogue: Foster a culture of open communication and dialogue within the community to address concerns and build consensus.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies and Consistency with Mission: The recommendations align with Le Manoir's core values of community, sustainability, and shared decision-making.
- External Customers and Internal Clients: The recommendations address the needs of both potential members and existing members by providing a more attractive and sustainable living experience.
- Competitors: The recommendations help Le Manoir differentiate itself from other intentional communities by focusing on niche markets and developing unique revenue streams.
- Attractiveness ' Quantitative Measures: The recommendations aim to improve Le Manoir's financial stability by diversifying revenue streams and increasing membership.
6. Conclusion
By adopting a hybrid business model that combines its core values with strategic income-generating activities, Le Manoir can achieve sustainable growth and financial stability while maintaining its commitment to community, collaboration, and environmental sustainability. This approach will allow the community to thrive in the long term and attract new members who share its values and vision.
7. Discussion
Other alternatives not selected include:
- Focusing solely on membership fees: This approach could limit the community's growth potential and make it vulnerable to economic fluctuations.
- Seeking external funding: While external funding could provide short-term relief, it may compromise the community's autonomy and independence.
The key risks and assumptions associated with the recommended approach include:
- Market demand: The success of the hybrid business model depends on the demand for sustainable goods and services, which may fluctuate.
- Community buy-in: The community must be willing to embrace the new business model and participate in its implementation.
- Competition: Le Manoir will need to compete with other intentional communities and businesses offering similar products and services.
8. Next Steps
To implement the recommended approach, Le Manoir should take the following steps:
- Develop a detailed business plan: This plan should outline the specific strategies for diversifying revenue streams, marketing and outreach, and community governance.
- Establish a dedicated team: A team should be assembled to oversee the implementation of the business plan and monitor progress.
- Secure funding: Le Manoir may need to secure additional funding to support the initial implementation of the new business model.
- Pilot test new initiatives: Before fully implementing new initiatives, pilot tests should be conducted to assess their effectiveness and feasibility.
- Monitor and evaluate progress: Regular monitoring and evaluation of the business model's performance should be conducted to ensure its effectiveness and make necessary adjustments.
By taking these steps, Le Manoir can successfully transition to a hybrid business model that will ensure its long-term sustainability and allow it to continue to fulfill its mission of creating a meaningful and sustainable way of life for its members.
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Case Description
This three-part case focuses on Le Manoir, an income-sharing intentional community in the Gaspésie region. A self-managed, self-sufficient community, Le Manoir is run by people striving to implement an alternative lifestyle based on pooled time and resources rather than personal ownership. The case highlights the challenges faced by the community, notably that of reconciling personal and group interests, that is, ensuring both the survival of the community and the individual well-being of its members.
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