Case Analysis

Download as doc, pdf, or txt
Download as doc, pdf, or txt
You are on page 1of 4
At a glance
Powered by AI
The key takeaways are that social entrepreneurship can help address social and economic problems, and that investing further in reorganizing a struggling company under new management may be the best option to salvage the investment and leverage existing strengths.

The company is facing problems related to the economic stability of its location in Haiti, where over half the population lives below the poverty line and social entrepreneurship has not taken root as much as it could.

The three alternative solutions proposed are: 1) invest another $2 million and reorganize under new management, 2) sell the company, or 3) shut down the company altogether.

0

Haiti Mangoes

Entrepreneurship, Operations, Social Enterprise, State & Society

I. Overview

Despite technology and human capital development around the world, there
is still a lack of equal opportunities. The revenue of families differs from one
place to another. As it is already known everywhere, government cannot solve
all of the problems of their people, businesses cannot create jobs for
everyone and the nonprofit organizations alone cannot fulfil the gap -
targeting all of the social issues. Thus, individual and group of individuals
around the world have created opportunities for their communities at all levels
regardless their circumstances and the economic situations in their hands
through social entrepreneurship. Social enterprise is, fundamentally, about
using a market-driven business model to address key social and
environmental issues. It is an emerging field with diverse and shifting
interpretations. According to Austin et al., 2013; Moulaert et al., 2016, social
entrepreneurship is commonly used to qualify all entrepreneurial initiatives
that serve a social and/or environmental mission and that reinvest a large part
of their surpluses in support of their mission. Although this definition is not yet
stabilized and its boundaries remain unclear, it focuses on the aim of
achieving both economic efficiency and social purpose.

II. Problem

Soros Economic Development Fund (SEDF) believes that in one way or


the other, the main objective of social entrepreneurship is to solve social,
economic and environmental problems for sustainable development goals.
One of the development challenges is the fact that Haiti has 0.47 as Human
Development Index (HDI) figuring 168 th among 187 countries with 58.6 % of
the population living under the poverty line and 24.6% under the extreme
1

poverty line with less than 1$UD per day (PNUD & MCI, 2014). Despite the
fact that Haiti has a unique know-how that is passed down for generations in
the area of craft, small industry and in the processing of products, social
entrepreneurship has not taken its roots as it should have. Importantly, to get
where they are today, it is undeniable that developed nations leaned the
strengths of their development on human capital to produce physical/material
capital. Most often, the human capital is utilized to produce strong public
policies which enable the economic growth. The problem by which the
company is facing is in line with the economic stability of the location. Thus,
the decision of utilizing the business’ social power and the decision of selling
it to the new management is a remarkable issue to solve.

III. Alternative Solution

Like a toss of a coin, an enterprise may either:


a. Invest another $2 million and reorganize the company under new
management;
b. Sell the company
c. Shut down JMB S.A. altogether.

IV. Evaluation of Alternative/s


Alternative Course of Action 1: Invest another $2 million and
reorganize the company under new management;
Advantage Disadvantage
Status Quo – there will be no Status Quo – also a disadvantage
changes to be incurred since there will be no changes to be
incurred which means no
improvement (if found necessary)
Widen the links of the JMB S.A Opportunity cost of the value
foregone for remaining at status quo

Alternative Course of Action 2: Sell the company


Advantage Disadvantage
2

Salvage the loses and liabilities to Losing status quo requiring


be paid changes in doing business
Retention of the regular Losing the company and the
employees transferring them to identity of it.
the new owner.

Alternative Course of Action 3: Shut down JMB S.A.


Advantage Disadvantage
Lighten the weight that the Losing one of the assets of the
company is facing company
Eliminating high spender of the Losing the company and the
assets of the company identity of it.

V. Recommendation

Alternative Course of Action 1: Invest another $2 million and reorganize


the company under new management;

- Through Social Enterprising, Soros Economic Development Fund


(SEDF) can salvage their investment to JMB S.A. Haiti can achieve
higher rates of economic growth and rising prosperity, but only if it
improves its competitiveness most specially in the field of social
entrepreneurship where they are abundant of. Success will require a
coherent strategy that leverages the company’s strengths. Haiti has
numerous weaknesses to overcome, and careful prioritization will be
required to successfully address them. The Haitian people have been
resilient and able to recover from very difficult circumstances. Building the
capability and unleashing the initiative of citizens will be a condition for
success.

VI. Possible Results and Obstacles to Implementation


3

Both alternatives offer advantages and disadvantages to business


enterprise from any industry. From these 3, 1 st alternative which is
Investing another $2 million and reorganize the company under new
management; offers the most advantages for an enterprise. Looking at
the management’s perspective, some might see these changes an
expense while some will see this as an investment. The management
should always remember that there will always be a room for
improvement no matter how much a process is seen as flawless and
they should see it long term.

- GRPH

You might also like