Art with Impact Harvard Case Solution & Analysis

Art with Impact Case Study Solution

Evaluation of Alternatives

Alternative: 1

Pros:

  1. This will enable the organization to ensure the continuous flow in the cash flows of the organization, allowing it to forecast easily.
  2. This will also allow the organization to invest and manage the plans accordingly and will sustain the organization in the market.
  3. In addition, this will also allow the organization to anchor its position in the Canadian and the US markets, without the risk of competition that may take away the attention of the existing donors.

Cons:

  1. This may limit the organization to just few donors and fundraisers in the market, increasing the dependence and hence putting the continuity of the services and operations of the organization at risk. As the members may switch to other organization to support other cause.

Alternative: 2

Pros:

  1. This will allow the organization to target the huge number of donors, reducing the dependence on few donors in the market.
  2. This will also allow the organization to increase the amount of donations that can be widely used in fundraising activities and workshops.
  3. This will create the amplified effect in the market, attracting substantial eyeballs ad targeting the exact touch points of the clients or donors, leading to more donation activities.

Cons:

  1. This may not offer the fruitful result, if the right targeting marketing strategy and social media tool are not used efficiently.
  2. This may require the organization to open up small offices or physical presence in terms of advertising or offices to make it an authentic service in the market.

Alternative: 3

Pros:

  1. This will reduce the dependence of the organization on external donations and will help it to plan ad forecast through informed decision making technique.
  2. This will reduce the marketing cost, making the organization to invest that cost in the fundraising activities.
  3. This will allow the organization to penetrate different markets effectively, without relying on other players.

Cons:

  1. This may create a confusion in term of the brand identity of the organization resulting in low donations.
  2. Such may change the nature of the organization, making it liable for different taxes in the market, hence reducing the profits.

Decision Criteria

Factors Alternative:1Altenative:2Alternative:3
Market stability221
Cash flow Uniformity21.52
Sustainability121
Market Reach121
Market Development121
Dependence on Third Party21.52
Total9108

Recommendation

By analyzing the overall situation and the effect of each option on the organization’s long term strategy, it is recommended that the organization should opt for the 2nd alternative of investing in social media to reach more markets and expand the horizon of service awareness. For doing so, it should use the social media channel and the digital medium to reach the prospective donors, leading to effective targeting. Such can be done using the Facebook messenger and Facebook IQ to target the exact segment through its offerings in order to drive the sales. Also, it should use the phone marketing and the other website development strategies in order to ease the donors or clients for donating the funds from different countries and region (Haque, 2010).

Moreover, since the social media has no boundaries which may allow the organization to attract the donors from different part of the world, thus reducing the dependence on the local donors and hence improving the fundraising activities and number of workshops in the market.

Lastly, it will develop an extended brand or services awareness for the organization in different market, opening the gateways for itself to enter into different markets easily without any restricted market barriers (Holt, 2016).

Action and Implementation Plan

In order to implement the above strategy, the organization should develop the online presence on the social media such as Facebook and twitter. By doing so, the previous pages will be deleted and the new accounts with more interactive approach will be adapted. In addition to this, to manage the social media marketing and advisement, 4 new individual will be hired to answer the queries of the people and to interact with them through the pages effectively. This will dilute the monotonous image of the page and will develop a factor of virility.

Ina addition, the organization will also join hands with the advertisement agency to develop the testimonial ads in order to attract the donors  through emotional content resulting in  attracting and acquiring the donors through touch the touch points. Such may incur the additional cost of $5000 every years. However, it will offer the substantial results to the organization to generate more profitable donations and carry out  more fundraising activities.

Assumptions

  1. The organization has strong brand image and awareness in the market.
  2. It has significant fundraising and donation activities.
  3. The Canadian market is responsive towards the advertisement and soil media.
  4. The social media has the power to transform the way of thinking and breaking the stereotypes.

Appendices

Funding sources with assumptions
United StatesCanada
Revenue
Government2500020000
State/provincial8000050000
Private foundation and Corporations515476300
Earned income4095927686
Private individual donations929876767.25
In-kind and other income24552000
Gross income292948112753
Programs6870824368
Travel1990514584
Professional fees21456632
Fundraising85253386
Office73301922
Conferences75471824
Employee and Contractor wages1370251439
Bad debts01325
Advertising and promotion1507991
Total expenditure26626555571
Net income/ loss2668457182
                                              Assumptions
* The private foundation and corporation is increased by 2.5% for US and 5% for Canada
* The private individual and donations is increased by 2.5% for US and 5% for Canada
* The fundraising is increased by 3% for US and 6% for Canada
* The advertising and promotion is increased by 3% for US and 6% for Canada

 

SWOT Analysis

STRENGTHSWEAKNESSES
·         The company has potential fundraisers and donors to that enables it to support the issue effectively

·         It has government support to finance the workshops.

·         The company excels in breaking the stigma and allowing the people to speak of their mental illness

·         it has strong brand image and stance in the Canadian and US market,

·         The company also have vivid understanding of the mental illness and health improvement issue

·         It depends on the government donations that are not a guaranteed overtime.

·         The organizational plan greatly gets effected by the change in the political stance of the country.

·         It has no source of raising its funds by it’s owns leading to high dependence on other players and stakeholders.

OPPORTUNITIESTHREATS
·         it has the opportunity to expand in other parts of the US and Canada, such as different cities

·         It has a viable opportunity to enter into the developing countries such as India, China and Pakistan, in order to create the mental health awareness and thus attracting the more potential donors for the cause.

·         The company faces strong threat of dilution ad reduction in the donation size due to political or economic changes.

·         It faces the risk of low adaption in other region that may make the model less attractive to the stakeholders.

·         The failure to communicate the right idea and concept of the business, leading to diminishing profits and donation

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