Harvard Case - Eagles Nest Association of Waterdown: Decisions at the Crossroads
"Eagles Nest Association of Waterdown: Decisions at the Crossroads" Harvard business case study is written by Laurie George Busuttil, Susan J. Van Weelden, Erica Costin. It deals with the challenges in the field of Strategy. The case study is 13 page(s) long and it was first published on : Sep 22, 2020
At Fern Fort University, we recommend that the Eagles Nest Association of Waterdown (ENA) pursue a strategic growth plan focused on diversification and innovation, leveraging its strong brand and community presence to expand its service offerings and geographic reach. This plan should involve a combination of organic growth through new product and service development, strategic partnerships, and selective acquisitions to enter new markets and address evolving customer needs.
2. Background
The Eagles Nest Association of Waterdown (ENA) is a non-profit organization providing a range of services to the community, including recreational programs, community events, and facility rentals. The case study highlights the organization's need to address declining membership and revenue, increasing competition, and a changing demographic landscape. The Board of Directors is facing a critical decision regarding the organization's future direction.
The main protagonists are the Board of Directors, who are tasked with making strategic decisions to ensure the long-term viability of ENA, and the Executive Director, who is responsible for implementing the chosen strategy.
3. Analysis of the Case Study
To analyze ENA's situation, we can utilize several strategic frameworks:
a) SWOT Analysis:
- Strengths: Strong community presence, established brand reputation, dedicated volunteers, access to facilities, strong financial position.
- Weaknesses: Declining membership, limited marketing efforts, reliance on traditional programs, lack of a comprehensive strategic plan.
- Opportunities: Expanding service offerings, leveraging technology, partnering with other organizations, targeting new demographics, expanding geographic reach.
- Threats: Increasing competition, changing demographics, economic downturn, rising operational costs.
b) Porter's Five Forces:
- Threat of New Entrants: Moderate, as barriers to entry are relatively low due to the non-profit nature of the organization and the availability of resources.
- Bargaining Power of Buyers: High, as members have many alternative options for recreation and community engagement.
- Bargaining Power of Suppliers: Low, as ENA relies on a diverse range of suppliers for its services and facilities.
- Threat of Substitutes: High, as numerous other organizations and activities compete for the same target audience.
- Competitive Rivalry: High, as ENA faces competition from other non-profit organizations, government agencies, and private businesses offering similar services.
c) Value Chain Analysis:
- Primary Activities: Program development, facility management, marketing and outreach, member services, fundraising.
- Support Activities: Human resource management, financial management, technology infrastructure, community relations.
d) Business Model Innovation:
ENA's current business model is based on traditional membership fees and program revenue. The organization can explore innovative business models to address changing customer needs and generate new revenue streams. This can include:
- Subscription-based services: Offering tiered membership options with different benefits and access levels.
- Partnerships with local businesses: Creating co-branded programs and events to reach new audiences.
- Developing digital platforms: Utilizing technology to offer online programs, virtual events, and digital membership management.
- Exploring social enterprise initiatives: Creating revenue-generating ventures aligned with ENA's mission.
4. Recommendations
ENA should implement a multi-faceted growth strategy based on the following recommendations:
a) Diversification:
- Expand service offerings: Introduce new programs and activities catering to diverse age groups, interests, and needs. This could include fitness classes, educational workshops, cultural events, and specialized programs for seniors and youth.
- Develop new revenue streams: Explore partnerships with local businesses to offer corporate wellness programs, host private events, or create co-branded initiatives.
- Strategic alliances: Collaborate with other non-profit organizations, community groups, and government agencies to offer joint programs and share resources.
b) Innovation:
- Embrace technology: Utilize digital platforms for marketing, communication, program delivery, and member engagement. This can include a website, mobile app, online registration system, and social media presence.
- Data-driven decision making: Implement data analytics to understand member preferences, program effectiveness, and market trends.
- Experiment with new formats: Explore virtual or hybrid program delivery models to reach a wider audience and address changing lifestyles.
c) Geographic Expansion:
- Regional outreach: Expand ENA's reach beyond Waterdown by partnering with neighboring communities or establishing satellite locations.
- Targeted marketing: Utilize digital marketing and community outreach strategies to attract new members from surrounding areas.
d) Organizational Development:
- Leadership development: Invest in training and development for staff and volunteers to enhance their skills and knowledge.
- Strategic planning: Develop a comprehensive strategic plan outlining ENA's vision, mission, goals, and action plan.
- Organizational culture: Foster a culture of innovation, collaboration, and continuous improvement.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core competencies and consistency with mission: The recommendations align with ENA's core competencies in community engagement, program delivery, and facility management. They also support the organization's mission to provide recreational opportunities and enhance the quality of life for residents.
- External customers and internal clients: The recommendations address the needs of existing and potential members, as well as the requirements of staff and volunteers.
- Competitors: The recommendations aim to differentiate ENA from its competitors by offering unique programs, leveraging technology, and expanding its geographic reach.
- Attractiveness: The recommendations are expected to improve ENA's financial performance by increasing membership, revenue, and program participation.
6. Conclusion
By implementing these recommendations, ENA can position itself for sustainable growth and continued success in a competitive environment. The organization's strong community presence, dedicated volunteers, and commitment to innovation will be key to its future success.
7. Discussion
Other alternatives not selected include:
- Merging with another organization: This could provide access to resources and expertise, but it also carries risks related to organizational culture and control.
- Focusing solely on existing programs: This would be a less risky approach, but it might not be sufficient to address the organization's long-term challenges.
- Selling the facilities: This would generate immediate revenue, but it would also eliminate ENA's core asset and limit its future growth potential.
The recommendations are based on the assumption that ENA's Board of Directors is committed to long-term sustainability and growth. The success of the recommendations will also depend on the effective implementation of the strategic plan, the commitment of staff and volunteers, and the support of the community.
8. Next Steps
The following steps should be taken to implement the recommendations:
- Develop a comprehensive strategic plan: This should include specific goals, action plans, timelines, and performance metrics.
- Conduct a market analysis: This will help identify target demographics, competitive landscape, and potential opportunities.
- Develop a marketing and communication strategy: This should leverage digital platforms, community outreach, and public relations to promote ENA's services and attract new members.
- Invest in technology and infrastructure: This includes upgrading ENA's website, developing a mobile app, and implementing data analytics tools.
- Build partnerships with local businesses and organizations: This will expand ENA's reach, resources, and revenue streams.
- Develop a leadership development program: This will ensure that ENA has the talent and skills needed to implement its strategic plan.
By taking these steps, ENA can navigate its current challenges and position itself for continued success in the years to come.
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Case Description
Eagles Nest Association of Waterdown (Eagles Nest) was a not-for-profit organization (NFP) in Waterdown, Ontario which focused on assisting women and children fleeing abusive situations. They closed a transitional home because the lease was not renewed on the property and the lease on their thrift shop was not being renewed. That left a centre which provided support to families. The executive director had to recommend a new strategy, one that left Eagles Nest less reactive to environmental factors. Should Eagles Nest look for another property for the transitional home? Should it move the thrift shop or find another source of funding? Should it just focus on The HOPE Centre; and if so, should it expand the Centre's programming?
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