Farmacias Ahumada S.A. and the Fundacion Las Rosas Harvard Case Solution & Analysis

Describes the union between Farmacias Ahumada SA (FASA), the largest pharmacy chain in Chile and Las Rosas Foundation (Fundacion Las Rozas, or FLR), a nonprofit organization that provides shelter and assistance to needy elders. Cooperation started in 1997. Council at FASA decided to collaborate with NGOs to enhance its image as a good neighbor community. FASA training their salespeople ask pharmacy customers for a small cash payment in the stores use cash FLR. By 2002, the collection of funds among customers FASA was $ 381,000, covering approximately 5% of total operating expenses in the FLR. One half of the store purchases led a small donation for FLR. In recent years, Florence has undergone significant growth. However, this growth has called for an increase in financial resources, if the agency were to carry out their mission properly. Nonprofit was offered the chance to enter into a new partnership with the international supermarket chain. The alliance creates a potential risk to the relationship with FASA, and foundation vice president faced with a critical decision. Appearance of a new partnership between FLR and a supermarket can make FLR less attractive partner for the drugstore chain. The problems of the development of the alliance, strategy evaluation and selection of cross-sectoral cooperation. "Hide
by Mladen Koljatic, Monica Silva Source: Social Enterprise Knowledge Network 17 pages. Publication Date: July 23, 2003. Prod. #: SKE019-PDF-ENG

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