Free Corporacion de Ayuda al Nino Quemado (COANIQUEM) and ESSO Chile Case Study Solution | Assignment Help

MBA Staff Writer
Written by Gary F. Smith
Publish Date: 2024-11-03

Harvard Case - Corporacion de Ayuda al Nino Quemado (COANIQUEM) and ESSO Chile

"Corporacion de Ayuda al Nino Quemado (COANIQUEM) and ESSO Chile" Harvard business case study is written by Mladen Koljatic, Monica Silva. It deals with the challenges in the field of Strategy. The case study is 25 page(s) long and it was first published on : Jul 23, 2003

At Fern Fort University, we recommend that COANIQUEM and ESSO Chile forge a strategic alliance focused on sustainable development and community engagement, leveraging the strengths of both organizations to create a mutually beneficial partnership. This alliance will utilize digital transformation to enhance outreach, fundraising, and program delivery, ultimately achieving social impact and brand value for both entities.

2. Background

This case study examines the partnership between COANIQUEM, a Chilean non-profit organization dedicated to providing comprehensive care for burn victims, and ESSO Chile, a subsidiary of ExxonMobil. COANIQUEM faces challenges in securing funding and expanding its reach, while ESSO Chile seeks to enhance its corporate social responsibility (CSR) initiatives and build a stronger brand image in Chile.

The main protagonists are:

  • Dr. Luis D'vila, the founder and director of COANIQUEM, driven by a strong social mission and a desire to provide high-quality care to burn victims.
  • ESSO Chile, a multinational corporation seeking to align its CSR efforts with its business goals and build a positive reputation in the Chilean market.

3. Analysis of the Case Study

To analyze the partnership, we utilize a framework combining Porter's Five Forces and SWOT analysis.

Porter's Five Forces:

  • Threat of New Entrants: High, as the non-profit sector is relatively easy to enter, but COANIQUEM's strong brand and reputation create a barrier.
  • Bargaining Power of Buyers: Low, as donors and beneficiaries have limited options for burn care services.
  • Bargaining Power of Suppliers: Moderate, as COANIQUEM relies on medical equipment and supplies, but competition exists.
  • Threat of Substitutes: Low, as there are few alternatives to specialized burn care.
  • Competitive Rivalry: Moderate, as COANIQUEM competes with other non-profits for funding and resources.

SWOT Analysis:

COANIQUEM:

  • Strengths: Strong brand reputation, dedicated staff, specialized expertise in burn care, strong community support.
  • Weaknesses: Limited funding, challenges in expanding reach, reliance on donations.
  • Opportunities: Partner with corporations for funding and resources, leverage technology for outreach and fundraising, expand services to new regions.
  • Threats: Competition from other non-profits, economic downturns, government funding cuts.

ESSO Chile:

  • Strengths: Strong financial resources, established brand, extensive network, commitment to CSR.
  • Weaknesses: Limited experience in healthcare, potential conflicts with its core business, perception of environmental impact.
  • Opportunities: Enhance brand image through CSR initiatives, engage in impactful social programs, build stronger community relationships.
  • Threats: Negative public perception of the oil and gas industry, regulatory changes, economic instability.

4. Recommendations

To maximize the value of the partnership, we recommend the following:

  1. Establish a Joint Venture: Create a separate legal entity combining the resources and expertise of both organizations. This allows for greater flexibility and autonomy in managing the partnership.
  2. Develop a Shared Vision and Mission: Define clear objectives for the partnership, focusing on sustainable development, community engagement, and improved burn care services.
  3. Implement a Digital Transformation Strategy: Utilize technology to enhance outreach, fundraising, and program delivery. This includes developing a user-friendly website, mobile app, and social media presence to engage with stakeholders.
  4. Focus on Value Creation: Align the partnership's activities with the core competencies of both organizations. COANIQUEM provides specialized burn care, while ESSO Chile contributes financial resources, expertise in logistics, and access to its network.
  5. Develop a Sustainable Funding Model: Explore diverse funding sources beyond traditional donations, including corporate sponsorships, impact investing, and government grants.
  6. Embrace Transparency and Accountability: Implement robust governance structures and reporting mechanisms to ensure transparency and accountability to stakeholders.

5. Basis of Recommendations

Our recommendations are based on the following considerations:

  1. Core Competencies and Consistency with Mission: The partnership aligns with COANIQUEM's mission to provide burn care and ESSO Chile's commitment to CSR.
  2. External Customers and Internal Clients: The partnership benefits both beneficiaries of COANIQUEM's services and ESSO Chile's stakeholders, enhancing brand image and social impact.
  3. Competitors: The partnership helps COANIQUEM compete more effectively for resources and reach a wider audience, while differentiating ESSO Chile from its competitors.
  4. Attractiveness: The partnership offers a strong return on investment for both organizations, measured by increased funding, improved brand image, and positive social impact.

6. Conclusion

By leveraging the strengths of both organizations and embracing digital transformation, the partnership between COANIQUEM and ESSO Chile has the potential to create a sustainable and impactful model for social development. This alliance can serve as a blueprint for other corporations seeking to engage in meaningful CSR initiatives, demonstrating the power of collaboration in achieving shared goals.

7. Discussion

Alternative approaches include:

  • Traditional Philanthropy: ESSO Chile could simply provide financial donations to COANIQUEM, but this lacks the strategic alignment and potential for long-term impact.
  • Volunteerism: ESSO Chile could encourage employee volunteerism at COANIQUEM, but this approach is limited in scope and sustainability.

Risks and key assumptions:

  • Negative Public Perception: The partnership could face criticism from environmental activists or those opposed to the oil and gas industry.
  • Misalignment of Goals: The partnership could fail if the organizations do not share a common vision and commitment to its objectives.
  • Financial Sustainability: The partnership relies on continued funding from ESSO Chile and other sources, which may be subject to economic fluctuations.

8. Next Steps

  1. Formalize the Partnership: Establish a joint venture agreement outlining the roles, responsibilities, and governance structure.
  2. Develop a Strategic Plan: Define specific goals, timelines, and metrics for measuring success.
  3. Implement Digital Transformation: Develop a comprehensive digital strategy, including website, mobile app, and social media engagement.
  4. Secure Funding: Explore diverse funding sources and establish a sustainable financial model.
  5. Monitor and Evaluate: Regularly assess the impact of the partnership and adjust strategies as needed.

By taking these steps, COANIQUEM and ESSO Chile can create a successful and impactful partnership that benefits both organizations and the Chilean community.

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Case Description

Describes the evolution of the alliance between Corporacion de Ayuda para el Nino Quemado (Corporation for the Aid of Burned Children, or COANIQUEM) and ESSO-Chile (ESSO), a subsidiary of ExxonMobil International and one of the major fuel distributors of the country. This alliance involves a long-term relationship that becomes increasingly important for both partners. Addresses issues of long-term collaboration in the context of a multinational organization that does not espouse a policy of establishing formal alliances with nonprofit institutions. COANIQUEM has gained standing and recognition in the community, and a stable partnership has emerged between the two successful organizations. However, the decision to build an international center for the rehabilitation of burned children might challenge the long-standing relationship, which can jeopardize the financial health of COANIQUEM. Explores the opportunities and risks entailed in the strategic decision to expand and the challenges this decision entails for the future of the alliance. Can address the role of charismatic leadership and trust-building in the creation and growth of nonprofits.

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