Coastal Ventures Limited Partnership: Balancing a Sustainable Investment Strategy with a Social Mission

Coastal Ventures Limited Partnership: Balancing a Sustainable Investment Strategy with a Social Mission Description

Nat Henshaw, president of CEI Ventures Inc. (CVI) a subsidiary of the nonprofit Coastal Enterprises Inc. (CEI), was involved in a balancing act. He was a manager of a for-profit venture capital fund, Coastal Ventures Limited Partnership (CVLP), with a social mission that valued good-quality jobs, employee ownership, and a concern for the environment. Henshaw and his board of directors were also thinking about the next venture capital fund, which they wanted to have in place when they began to wind down the investment activity of the current fund. Did they have the right balance between profit and social mission? Could they invest the remaining 60% of CVLP's funds in the next two years in a manner that struck the right balance? And did they have a good enough track record to attract investment into a new fund? Many students will be unfamiliar with this type of institution and the case provides sufficient details on the institutional structure of a community development venture capital fund and the way it operates to serve as an introduction to this subject. It demonstrates the way in which both institutionally and operationally the fund is designed to promote both profitable investments and a social mission. Nevertheless, the fund faces considerable problems in maintaining this balance. The case can then serve as a platform for a discussion of the effectiveness of such an institution in promoting community economic development. More generally, this case can be used to teach students about the "double bottom-line," where the bottom line is of a business which is the subsidiary of a nonprofit institution, which set up the business in the first place as part of its efforts to fulfill its mission. Such arrangements are becoming more common in the US nonprofit sector and they raise issues about the legitimacy of for-profit subsidiaries and the blurring of the line between the for-profit and nonprofit world. HKS Case Number 1669.0

Case Description Coastal Ventures Limited Partnership: Balancing a Sustainable Investment Strategy with a Social Mission

Strategic Managment Tools Used in Case Study Analysis of Coastal Ventures Limited Partnership: Balancing a Sustainable Investment Strategy with a Social Mission

STEP 1. Problem Identification in Coastal Ventures Limited Partnership: Balancing a Sustainable Investment Strategy with a Social Mission case study

STEP 2. External Environment Analysis - PESTEL / PEST / STEP Analysis of Coastal Ventures Limited Partnership: Balancing a Sustainable Investment Strategy with a Social Mission case study

STEP 3. Industry Specific / Porter Five Forces Analysis of Coastal Ventures Limited Partnership: Balancing a Sustainable Investment Strategy with a Social Mission case study

STEP 4. Evaluating Alternatives / SWOT Analysis of Coastal Ventures Limited Partnership: Balancing a Sustainable Investment Strategy with a Social Mission case study

STEP 5. Porter Value Chain Analysis / VRIO / VRIN Analysis Coastal Ventures Limited Partnership: Balancing a Sustainable Investment Strategy with a Social Mission case study

STEP 6. Recommendations Coastal Ventures Limited Partnership: Balancing a Sustainable Investment Strategy with a Social Mission case study

STEP 7. Basis of Recommendations for Coastal Ventures Limited Partnership: Balancing a Sustainable Investment Strategy with a Social Mission case study

Case Analysis of Coastal Ventures Limited Partnership: Balancing a Sustainable Investment Strategy with a Social Mission

Coastal Ventures Limited Partnership: Balancing a Sustainable Investment Strategy with a Social Mission is a Harvard Business (HBR) Case Study on Leadership & Managing People , Texas Business School provides HBR case study assignment help for just $9. Texas Business School(TBS) case study solution is based on HBR Case Study Method framework, TBS expertise & global insights. Coastal Ventures Limited Partnership: Balancing a Sustainable Investment Strategy with a Social Mission is designed and drafted in a manner to allow the HBR case study reader to analyze a real-world problem by putting reader into the position of the decision maker. Coastal Ventures Limited Partnership: Balancing a Sustainable Investment Strategy with a Social Mission case study will help professionals, MBA, EMBA, and leaders to develop a broad and clear understanding of casecategory challenges. Coastal Ventures Limited Partnership: Balancing a Sustainable Investment Strategy with a Social Mission will also provide insight into areas such as – wordlist , strategy, leadership, sales and marketing, and negotiations.

Case Study Solutions Background Work

Coastal Ventures Limited Partnership: Balancing a Sustainable Investment Strategy with a Social Mission case study solution is focused on solving the strategic and operational challenges the protagonist of the case is facing. The challenges involve – evaluation of strategic options, key role of Leadership & Managing People, leadership qualities of the protagonist, and dynamics of the external environment. The challenge in front of the protagonist, of Coastal Ventures Limited Partnership: Balancing a Sustainable Investment Strategy with a Social Mission, is to not only build a competitive position of the organization but also to sustain it over a period of time.

Strategic Management Tools Used in Case Study Solution

The Coastal Ventures Limited Partnership: Balancing a Sustainable Investment Strategy with a Social Mission case study solution requires the MBA, EMBA, executive, professional to have a deep understanding of various strategic management tools such as SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

Texas Business School Approach to Leadership & Managing People Solutions

In the Texas Business School, Coastal Ventures Limited Partnership: Balancing a Sustainable Investment Strategy with a Social Mission case study solution – following strategic tools are used - SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

We have additionally used the concept of supply chain management and leadership framework to build a comprehensive case study solution for the case – Coastal Ventures Limited Partnership: Balancing a Sustainable Investment Strategy with a Social Mission

Step 1 – Problem Identification of Coastal Ventures Limited Partnership: Balancing a Sustainable Investment Strategy with a Social Mission - Harvard Business School Case Study

The first step to solve HBR Coastal Ventures Limited Partnership: Balancing a Sustainable Investment Strategy with a Social Mission case study solution is to identify the problem present in the case. The problem statement of the case is provided in the beginning of the case where the protagonist is contemplating various options in the face of numerous challenges that Fund Coastal is facing right now. Even though the problem statement is essentially – “Leadership & Managing People” challenge but it has impacted by others factors such as communication in the organization, uncertainty in the external environment, leadership in Fund Coastal, style of leadership and organization structure, marketing and sales, organizational behavior, strategy, internal politics, stakeholders priorities and more.

Step 2 – External Environment Analysis

Texas Business School approach of case study analysis – Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the Coastal Ventures Limited Partnership: Balancing a Sustainable Investment Strategy with a Social Mission.

The external environment analysis of Coastal Ventures Limited Partnership: Balancing a Sustainable Investment Strategy with a Social Mission will ensure that we are keeping a tab on the macro-environment factors that are directly and indirectly impacting the business of the firm.

What is PESTEL Analysis? Briefly Explained

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Coastal Ventures Limited Partnership: Balancing a Sustainable Investment Strategy with a Social Mission case study. PESTEL analysis of " Coastal Ventures Limited Partnership: Balancing a Sustainable Investment Strategy with a Social Mission" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

How to do PESTEL / PEST / STEP Analysis? What are the components of PESTEL Analysis?

As mentioned above PESTEL Analysis has six elements – political, economic, social, technological, environmental, and legal. All the six elements are explained in context with Coastal Ventures Limited Partnership: Balancing a Sustainable Investment Strategy with a Social Mission macro-environment and how it impacts the businesses of the firm.

How to do PESTEL Analysis for Coastal Ventures Limited Partnership: Balancing a Sustainable Investment Strategy with a Social Mission

To do comprehensive PESTEL analysis of case study – Coastal Ventures Limited Partnership: Balancing a Sustainable Investment Strategy with a Social Mission , we have researched numerous components under the six factors of PESTEL analysis.

Political Factors that Impact Coastal Ventures Limited Partnership: Balancing a Sustainable Investment Strategy with a Social Mission

Political factors impact seven key decision making areas – economic environment, socio-cultural environment, rate of innovation & investment in research & development, environmental laws, legal requirements, and acceptance of new technologies.

Policy Making Impact on Coastal Ventures Limited Partnership: Balancing a Sustainable Investment Strategy with a Social Mission

Government policies have significant impact on the business environment of any country. The firm in “ Coastal Ventures Limited Partnership: Balancing a Sustainable Investment Strategy with a Social Mission ” needs to navigate these policy decisions to create either an edge for itself or reduce the negative impact of the policy as far as possible.

Data safety laws – The countries in which Fund Coastal is operating, firms are required to store customer data within the premises of the country. Fund Coastal needs to restructure its IT policies to accommodate these changes. In the EU countries, firms are required to make special provision for privacy issues and other laws.

Competition Regulations – Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. Coastal Ventures Limited Partnership: Balancing a Sustainable Investment Strategy with a Social Mission has numerous instances where the competition regulations aspects can be scrutinized.

Import restrictions on products – Before entering the new market, Fund Coastal in case study Coastal Ventures Limited Partnership: Balancing a Sustainable Investment Strategy with a Social Mission" should look into the import restrictions that may be present in the prospective market.

Export restrictions on products – Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. Fund Coastal in case study “ Coastal Ventures Limited Partnership: Balancing a Sustainable Investment Strategy with a Social Mission ” should look into these export restrictions policies.

Foreign Direct Investment Policies – Government policies favors local companies over international policies, Fund Coastal in case study “ Coastal Ventures Limited Partnership: Balancing a Sustainable Investment Strategy with a Social Mission ” should understand in minute details regarding the Foreign Direct Investment policies of the prospective market.

Taxation & Regulation Impact on Coastal Ventures Limited Partnership: Balancing a Sustainable Investment Strategy with a Social Mission

Corporate Taxes – The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. Corporate taxation can be divided into two categories – taxes on profits and taxes on operations. Taxes on profits number is important for companies that already have a sustainable business model, while taxes on operations is far more significant for companies that are looking to set up new plants or operations.

Tariffs – Chekout how much tariffs the firm needs to pay in the “ Coastal Ventures Limited Partnership: Balancing a Sustainable Investment Strategy with a Social Mission ” case study. The level of tariffs will determine the viability of the business model that the firm is contemplating. If the tariffs are high then it will be extremely difficult to compete with the local competitors. But if the tariffs are between 5-10% then Fund Coastal can compete against other competitors.

Government Scheme & Subsidies Impact on Coastal Ventures Limited Partnership: Balancing a Sustainable Investment Strategy with a Social Mission

Research and Development Subsidies and Policies – Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. Managers at Coastal Ventures Limited Partnership: Balancing a Sustainable Investment Strategy with a Social Mission case study have to assess whether their business can benefit from such government assistance and subsidies.

Consumer protection – Different countries have different consumer protection laws. Managers need to clarify not only the consumer protection laws in advance but also legal implications if the firm fails to meet any of them.

Political System & Stability, and its Impact on Coastal Ventures Limited Partnership: Balancing a Sustainable Investment Strategy with a Social Mission

Political System and Its Implications – Different political systems have different approach to free market and entrepreneurship. Managers need to assess these factors even before entering the market.

Freedom of Press is critical for fair trade and transparency. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption.

Corruption level – Fund Coastal needs to assess the level of corruptions both at the official level and at the market level, even before entering a new market. To tackle the menace of corruption – a firm should have a clear SOP that provides managers at each level what to do when they encounter instances of either systematic corruption or bureaucrats looking to take bribes from the firm.

Independence of judiciary – It is critical for fair business practices. If a country doesn’t have independent judiciary then there is no point entry into such a country for business.

Government attitude towards trade unions – Different political systems and government have different attitude towards trade unions and collective bargaining. The firm needs to assess – its comfort dealing with the unions and regulations regarding unions in a given market or industry. If both are on the same page then it makes sense to enter, otherwise it doesn’t.

Economic Factors that Impact Coastal Ventures Limited Partnership: Balancing a Sustainable Investment Strategy with a Social Mission

Social Factors that Impact Coastal Ventures Limited Partnership: Balancing a Sustainable Investment Strategy with a Social Mission

Technological Factors that Impact Coastal Ventures Limited Partnership: Balancing a Sustainable Investment Strategy with a Social Mission

Environmental Factors that Impact Coastal Ventures Limited Partnership: Balancing a Sustainable Investment Strategy with a Social Mission

Legal Factors that Impact Coastal Ventures Limited Partnership: Balancing a Sustainable Investment Strategy with a Social Mission

Step 3 – Industry Specific Analysis

What is Porter Five Forces Analysis

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Coastal Ventures Limited Partnership: Balancing a Sustainable Investment Strategy with a Social Mission case study. PESTEL analysis of " Coastal Ventures Limited Partnership: Balancing a Sustainable Investment Strategy with a Social Mission" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

Step 4 – SWOT Analysis / Internal Environment Analysis

Step 5 – Porter Value Chain / VRIO / VRIN Analysis

Step 6 – Evaluating Alternatives & Recommendations

Step 7 – Basis for Recommendations

References :: Coastal Ventures Limited Partnership: Balancing a Sustainable Investment Strategy with a Social Mission case study solution