La Fageda Case Study Solution
The case illustrates the social and economic development of the company La Fageda, in an attempt to consolidate the social well being with economic benefit.The company started with an aim to offer a better life to handicapped and disabled people by offering a normal working environment so to allow them to earn for themselves and boost their confidence.While on the other hand, the company integrated the social cause with its economic wealth as well, and established La fageda yogurt into three different flavors.It than shifted to producing La fageda ice cream since the product line of yogurt failed to meet the market expectation.Over the period of time, the company has increased its production.However, it created a conflict between the economic and social balance of the company.The CEO of the company has been curious to see the delineating value of the company and thus has opted to devise a governance structure and succession plan in order to retain the values of the company before he leaves.
Keywords: Social Development, Funding, Innovation
1- How is La Fageda a social development enterprise? What are the social and economic activities it provides and does?
The company is ranked as the social development enterprise because it stated with the vision of offering the jobs to mentally or physically challenged people in the market. It developed the vision to integrate the social and labor integration so to offer the living to mentally challenged people to up lift their morale and do better in the society. In doing so, it hired the mentally or physically disabled people to work for the company and earn an actual living. The owner of the company believed that these sets of people are not special people but require a special training so to operate the equipment. Along with this, the company also offered the disabled people therapeutic solutions to their problem and developed a recreational center within the company to boost the mental health of the individual. This context of working ranked the company as the Social development enterprise.
Since the company’s vision is to integrate the economic and social domains it offers two sided offerings to the employees as well in the market. Under the social activities, the company hires a high quota of disabled or mentally challenged people. Though this reduces its productivity and overall performance in the market, it keeps the quota uniform so to comply with the social perspective of the company.Also along with this, the company offers therapeutic solution to the employees in order to offer physical fitness and health related activities so to keep the employees healthy and fit while working with the company.
La Fageda Harvard Case Solution & Analysis
Also, under the social activities, the company retains the employee ratio, though many people leave the job themselves. the company does not practice to fire the under-performing employee under certain department.Also, it creates additional jobs for disable people that does not require technical expertise.E: g, picking of fruits and collecting milk and similar jobs.
Under the economic activities, the company started the La fageda yogurt into three flavors to offer original organic yogurt to the market.The product line extension turned to be unsuccessful, since people regarded it as more like dessert than yogurt.The. company then established La Fageda yogurt and ice-cream to pursue the project.Though in the initial stages the projects did not offered much fruits.However, the La Fageda normal yogurt turned out to be a success due to its natural ingredients and organic taste.
- What is the proposed governance structure and how will it be beneficial to La Fageda's mission?
Colon proposed the new governance structure with an aim to continue the main significance of the business plan in the long-term, once he retires from the position. The proposed governance structure centered the power to the founding trustees of the board. It eliminated the need of corporates to be the part of governance board. Since the aim of La Fageda is to generate economic wealth with right integration to its parent vision (social well being), it proposed the idea to make the governance structure including the trustees only so that the power to drive the project in particular manner remains uniform.Secondly, it outlined the attributes of the trustee members which were (1) the board members should be selfless, motivated towards the vision, generous and could manage the social and economic scale of the organization equally.
The benefit of this particular proposed structure is, it will keep the values of the company uniform with the operations and function of the company.Also, it will align the vision and business strategy of the company since the vision incorporates the social values at top priority, a balanced governance structure will only be able to match the economic and social benefit for the company. Lastly, such governance structure will allow the members to see the company from the same view as of Colón, enabling to incorporate the values for a longer sustainable period of time....................
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