National Kidney Foundation: Case Analysis
NATIONAL KIDNEY FOUNDATION: CEO WITH A GOLDEN TAP | ACCOUNTING THEORY ASSIGNMENT | 052030 Wachira Mumbi Maria | Submitted to: Dr. David Wang’ombe | 13th June 2013 |
NATIONAL KIDNEY FOUNDATION: CEO WITH A GOLDEN TAP
Q1. What is the business model or management style for a social enterprise?
In the world today, social enterprises have emerged as innovative business models that are demonstrating how the private sector can contribute more substantively to addressing various social problems (Perfecto, 2013). Though some of the more successful nonprofit organizations grow to become large, a majority face similar problems of viability and sustainability such as access to financing and lucrative markets. Even more challenging is the fact that they must create strategies in pursuit of their social mission. Many times, this amounts to no less than a herculean task. Social enterprises tend to be privately owned and as their name suggests their main aim is centered on resolving social issues.
A business model simply describes how an organization creates, delivers and captures value. According to Zott and Amit (2010), a generic business model must be able to specify the what, for whom and how of production. It must at its essential core identify content, structure and governance. In the case of the National Kidney Foundation, their business model can be described as follows:
Figure 1: Value proposition for National Kidney Foundation
As shown in the figure above, the main aim of the foundation was to offer affordable dialysis treatments to the needy, at least at the foundation’s inception. The customers served consisted of the patients who needed dialysis treatments, the families of the patients and also the donors. This is basically what separated the foundation from other similar health care programs. Durai engaged the families of patients and also created value for donors such as enabling donors to receive public exposure, promotions, etc. Additionally, by involving
NATIONAL KIDNEY FOUNDATION: CEO WITH A GOLDEN TAP
Q1. What is the business model or management style for a social enterprise?
In the world today, social enterprises have emerged as innovative business models that are demonstrating how the private sector can contribute more substantively to addressing various social problems (Perfecto, 2013). Though some of the more successful nonprofit organizations grow to become large, a majority face similar problems of viability and sustainability such as access to financing and lucrative markets. Even more challenging is the fact that they must create strategies in pursuit of their social mission. Many times, this amounts to no less than a herculean task. Social enterprises tend to be privately owned and as their name suggests their main aim is centered on resolving social issues.
A business model simply describes how an organization creates, delivers and captures value. According to Zott and Amit (2010), a generic business model must be able to specify the what, for whom and how of production. It must at its essential core identify content, structure and governance. In the case of the National Kidney Foundation, their business model can be described as follows:
Figure 1: Value proposition for National Kidney Foundation
As shown in the figure above, the main aim of the foundation was to offer affordable dialysis treatments to the needy, at least at the foundation’s inception. The customers served consisted of the patients who needed dialysis treatments, the families of the patients and also the donors. This is basically what separated the foundation from other similar health care programs. Durai engaged the families of patients and also created value for donors such as enabling donors to receive public exposure, promotions, etc. Additionally, by involving