Building a Sustainable Venture Harvard Case Solution & Analysis

Building a Sustainable Venture Case Solution 

  1.  What challenges might they face in doing so? How can the challenges be overcome?

 Non-profit organizations are formed to provide services to the society, majorly to the deprived ones, with no objective of profit making. The resources or fund to operate the organization are received primarily through the donations and private philanthropist’s aid. Thus, there are limited funding sources for the organization. Sometimes these organizations face financial difficulty in executing their operations and thus, the scope and services of these nonprofit organizations to the community gets limited. Therefore, as per the new phenomena, in order to get the resources and funds to finance the increasing operating cost of different public projects, these organizations are getting involved in the for-profit activities and venture. The profit from these for profit ventures will then be used for different public projects. The objective and scope of such projects are also in line with the primary goals of the organization that is to work for the welfare of the public and economic prosperity as a whole.

These non-profit organizations might face different challenges in pursuing this for-profit business, asthey have less expertise in this business segment. Moreover, theyhave no formal managerial staff working in their organization structure as well asthey are unaware of the possible market and economic challenges affecting the business. These organizations have experience of the non-profit activities and are unaware of the complexities of the for-profit business and activities. Thus, for overcoming these challenges, these organizations should use an external third party consultant that provides the required resources and managerial skills for the successful conduct of the business. The organization might also hire some business and entrepreneurial individuals that have some experience and knowledge of operating the for-profit business. The collaboration of the NPOs with these third party consultants and internally hired business individuals might help to mitigate the risks involved in the business. The business might also coincide with the objectives of the non-profit organizations such as the business might be in the social service segments but in a profitable manner.

A for-profit business might be operated in different ways that might also be focused to the welfare of the society. The business value chain might also be used for the appropriate incorporation of these social objectives in the overall business plan. Such as the Michael Porter’s value chain model. In this model, the overall element and stages of the business are identified through which the business creates economic value(Anderson, 2003). See exhibit 1.

  1. Identify the Triple Bottom Line (TBL) benefits of the TMI’s CEB Machine. Can TBL be used to TMI’s advantage? 

 The TBL approach is a sustainability approach that incorporates three elements affecting the business, which are social, environmental and financial. Some of the benefits of the CEB machine under the TBL approach are:

Priced competitive and affordable

The machine is very competent as per price is concerned. The design is simple with fewer parts required for its construction. As compared to other manufacturers of the same machine, the cost is highly competitive. The competitor, Hydraform, has been charging price of at least $9000 to $13000 and as per the case other competitors are also charging more or less of the same pricing range. TMI’s initial cost is estimated to be $2100 without hydraulics and wheel system. The price is expected to increase as other additional parts will install however,the price will remain lower than the competitor.Raw material will be available on the site (no cost).

Raw material

The raw material used in the machine will be dirt, which will be available free of cost. This raw material is available on the site of construction. It is free of cost and easily available, therefore the cost of construction will be reduced significantly. Other secondary raw materials are also available at cheap cost and are easily obtained such as stabilizing agent etc.,thus the machine will benefit the user financially and environmentally.....................

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