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Harvard Case - Chinese Children Adoption International: Maintaining Sustainable Development of Non-Profit Agency

"Chinese Children Adoption International: Maintaining Sustainable Development of Non-Profit Agency" Harvard business case study is written by Peng Jiang, Shanshan Cao, Hong Zhang. It deals with the challenges in the field of Strategy. The case study is 13 page(s) long and it was first published on : Jul 31, 2019

At Fern Fort University, we recommend CCAI adopt a multi-pronged strategy to ensure its sustainable development. This strategy involves leveraging technology, expanding services, and strengthening partnerships to address the evolving needs of both adopters and children in China.

2. Background

CCAI is a non-profit organization facilitating international adoptions from China. The case study highlights the challenges CCAI faces in maintaining its growth and relevance amid changing market dynamics. These include:

  • Decreasing availability of adoptable children: China's 'one-child policy' has led to a decline in the number of children available for adoption.
  • Increasing competition: Other adoption agencies are emerging, creating a more competitive landscape.
  • Changing demographics: The profile of potential adopters is evolving, with a growing demand for older children and children with special needs.
  • Technological advancements: The adoption process is becoming increasingly digital, requiring CCAI to adapt its operations.

Main Protagonists: The case study focuses on CCAI's leadership team, particularly the Executive Director, who is tasked with charting the organization's future.

3. Analysis of the Case Study

SWOT Analysis:

Strengths:

  • Strong reputation: CCAI has a long history and a strong reputation in the adoption field.
  • Experienced staff: CCAI has a dedicated and experienced team with expertise in adoption procedures.
  • Strong network: CCAI has established relationships with Chinese orphanages and government officials.

Weaknesses:

  • Limited resources: CCAI operates with limited financial resources, hindering its ability to invest in new initiatives.
  • Traditional approach: CCAI's operations are largely based on traditional methods, making it less responsive to technological advancements.
  • Lack of marketing: CCAI has limited marketing efforts, impacting its visibility and reach.

Opportunities:

  • Expanding services: CCAI can expand its services to include post-adoption support, sibling adoption, and adoption of older children.
  • Leveraging technology: CCAI can utilize technology to streamline its processes, improve communication with adopters, and reach a wider audience.
  • Partnerships: CCAI can forge strategic alliances with other organizations to share resources, expertise, and reach.

Threats:

  • Changing government regulations: China's adoption policies are subject to change, potentially impacting CCAI's operations.
  • Increased competition: New adoption agencies are entering the market, creating more competition for CCAI.
  • Economic downturn: A global economic downturn could impact the number of potential adopters.

Porter's Five Forces Analysis:

  • Threat of new entrants: Moderate, as establishing a new adoption agency requires significant resources and expertise.
  • Bargaining power of buyers: High, as adopters have numerous choices and can easily switch agencies.
  • Bargaining power of suppliers: Low, as CCAI relies on Chinese orphanages and government agencies, which have limited bargaining power.
  • Threat of substitutes: Low, as adoption is a unique service with limited substitutes.
  • Rivalry among existing firms: High, as the adoption landscape is becoming increasingly competitive.

Value Chain Analysis:

CCAI's value chain consists of:

  • Inbound logistics: Establishing relationships with orphanages, facilitating child profiles, and managing legal documentation.
  • Operations: Matching adopters with children, coordinating travel and logistics, and providing post-adoption support.
  • Outbound logistics: Facilitating the adoption process, providing ongoing support to adopters, and managing relationships with stakeholders.
  • Marketing and sales: Raising awareness about adoption, promoting CCAI's services, and attracting potential adopters.
  • Service: Providing comprehensive adoption services, including pre- and post-adoption support.

Business Model Innovation:

CCAI can explore business model innovation by:

  • Developing a digital platform: Creating a user-friendly platform for adopters to access information, connect with caseworkers, and manage their adoption journey.
  • Offering subscription services: Providing ongoing support and resources to adopters through subscription-based programs.
  • Expanding into new markets: Exploring opportunities in other countries with similar adoption needs.

4. Recommendations

1. Embrace Technology and Digital Transformation:

  • Develop a comprehensive digital platform: This platform should include features for online applications, information sharing, communication tools, and post-adoption resources.
  • Utilize social media and digital marketing: Leverage social media platforms to reach a wider audience, share stories of successful adoptions, and build brand awareness.
  • Implement data analytics: Analyze data to understand adopter preferences, identify trends, and optimize services.

2. Expand Services and Offerings:

  • Offer post-adoption support programs: Provide ongoing counseling, resources, and community support to adoptive families.
  • Expand into sibling adoption: Facilitate the adoption of siblings to keep families together.
  • Increase focus on older children and children with special needs: Develop programs and resources to support the adoption of these children.

3. Strengthen Partnerships and Collaborations:

  • Forge strategic alliances with other adoption agencies: Share resources, expertise, and marketing efforts to increase reach and impact.
  • Collaborate with NGOs and advocacy groups: Partner with organizations working in child welfare, education, and healthcare to provide comprehensive support to children and families.
  • Engage with government agencies: Build strong relationships with Chinese government officials to ensure smooth adoption processes and access to resources.

5. Basis of Recommendations

1. Core Competencies and Consistency with Mission:

These recommendations align with CCAI's core competencies in facilitating international adoptions and its mission to provide loving homes for children in need. By embracing technology, expanding services, and strengthening partnerships, CCAI can enhance its effectiveness and reach a wider audience.

2. External Customers and Internal Clients:

The recommendations address the needs of both external customers (adopters) and internal clients (CCAI staff). The digital platform will improve the adopter experience, while expanded services and partnerships will provide staff with additional resources and support.

3. Competitors:

These recommendations help CCAI stay ahead of the competition by leveraging technology, expanding services, and building strong partnerships. This will enable CCAI to differentiate itself and maintain its competitive advantage.

4. Attractiveness ' Quantitative Measures:

While quantifying the impact of these recommendations is challenging, the potential benefits include:

  • Increased adoption rates: By reaching a wider audience and offering a more comprehensive range of services, CCAI can increase the number of children placed in loving homes.
  • Improved efficiency: Technology can streamline processes, reduce administrative costs, and increase staff productivity.
  • Enhanced brand reputation: By embracing innovation and providing exceptional service, CCAI can strengthen its brand reputation and attract more adopters.

Assumptions:

  • The recommendations assume that CCAI has the necessary resources and expertise to implement these changes.
  • The recommendations also assume that the Chinese government will continue to support international adoptions.

6. Conclusion

CCAI is at a critical juncture, needing to adapt to changing market dynamics and ensure its long-term sustainability. By embracing technology, expanding services, and strengthening partnerships, CCAI can position itself for continued success in the evolving adoption landscape. This multi-pronged strategy will enable CCAI to remain a leading force in international adoption, providing loving homes for children in need and fulfilling its mission.

7. Discussion

Alternatives:

  • Maintaining the status quo: This option would likely lead to a decline in CCAI's market share and relevance as competitors innovate and adapt.
  • Focusing solely on cost reduction: This approach could negatively impact the quality of services and potentially damage CCAI's reputation.

Risks and Key Assumptions:

  • Resource constraints: Implementing these recommendations requires significant financial and human resources.
  • Technological challenges: CCAI needs to ensure its technology infrastructure and staff are equipped to support the digital platform.
  • Changing government regulations: China's adoption policies could change, impacting CCAI's operations.

Options Grid:

OptionProsCons
Embrace Technology, Expand Services, and Strengthen PartnershipsIncreased reach, improved efficiency, enhanced brand reputationRequires significant resources, potential technological challenges
Maintain the Status QuoLow riskDecline in market share, loss of relevance
Focus Solely on Cost ReductionReduced expensesLower quality of services, potential damage to reputation

8. Next Steps

Timeline:

  • Year 1: Develop a comprehensive digital platform, implement social media marketing, and establish partnerships with other organizations.
  • Year 2: Launch post-adoption support programs, expand into sibling adoption, and increase focus on older children and children with special needs.
  • Year 3: Continuously evaluate and refine the strategy based on data and feedback, ensuring CCAI remains adaptable and responsive to changing market dynamics.

Key Milestones:

  • Develop a detailed implementation plan with clear timelines, budget, and resource allocation.
  • Secure funding for technology upgrades, staff training, and program development.
  • Establish a dedicated team to oversee the implementation of the strategy.
  • Regularly assess the effectiveness of the strategy and make adjustments as needed.

By taking these steps, CCAI can ensure its continued success and impact in the years to come.

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Case Description

US-based Chinese Children Adoption International (CCAI), founded in 1992, was the world's largest agency dedicated to providing adoption services to abandoned children living in Chinese social welfare institutions. By 2017, CCAI had found permanent homes in the United States for more than 12,000 orphaned children and children with disabilities. However, the economic, social, legal, and political environments in China were changing. The number of abandoned children in the Chinese mainland was gradually decreasing, while the number of children with disabilities seeking a foreign adoption was constantly increasing. The founders were determined to apply their experiences, resources, and influence to charitable work, while continuing to pursue the cause of international adoptions. What should they do to help maintain CCAI's sustainable development?

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