EMCF: A New Approach at an Old Foundation

Allen S. Grossman; Daniel F. Curran

Case | HBS Case Collection | March 2002 (Revised June 2002)

EMCF: A New Approach at an Old Foundation

by Allen S. Grossman and Daniel F. Curran

Abstract

Michael Bailin, president of the Edna McConnell Clark Foundation (EMCF), embarked on a three-year effort to transform the foundation's grant-making in theory and practice. This case details his efforts to move from an "initiatives-based" approach in philanthropy to a focus on "institution and field building." Bailin felt that instead of simply devising better services for people in poor and disadvantaged communities, the foundation could bring these services to more people through better-run, more efficient, and more durable organizations. Yet, questions remain on whether EMCF can find the capabilities needed for the new model to work. Also, can EMCF succeed independently, or does a shift in thinking of this magnitude require a major restructuring in philanthropy, which would be outside the foundation's control?

Keywords: Business Model; Philanthropy and Charitable Giving; Leadership; Management Practices and Processes; Performance Expectations; Non-Governmental Organizations; Cognition and Thinking; Customization and Personalization; Theory;

Language: English

Format: Print

25 pages

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Citation:

Grossman, Allen S., and Daniel F. Curran. "EMCF: A New Approach at an Old Foundation." Harvard Business School Case 302-090, March 2002. (Revised June 2002.)

Case | HBS Case Collection | March 2018 (Revised September 2019)

Chewy.com (A)

Jeffrey F. Rayport and Matthew G. Preble

In late 2013, Ryan Cohen, cofounder and CEO of online pet products retailer Chewy.com, faces a “bet the company decision”—whether to stay with a third-party logistics provider (3PL) for all of its e-commerce fulfillment or to take the function in house. Cohen worries that the existing 3PL may not be able to scale with Chewy’s projected growth or maintain the company’s performance standards for service quality and fulfillment. While Cohen is convinced that achieving scale is essential to making the business work, he is also keenly aware that neither he nor his cofounders have any experience in managing logistics. In addition, any move they might make to in-source fulfillment would likely destabilize the existing 3PL relationship, on which the viability of the fast-growing business depends. Cohen’s board members are concerned enough about the situation to pressure him to throttle back growth and maintain the 3PL. Cohen sees four possible options: stay with the current 3PL, add another 3PL to handle additional volume, stay with the 3PL and add a company-owned fulfillment center in a new region, or fully insource fulfilment as quickly as possible. In light of Cohen’s goal of reaching $500 million in sales by 2018, the board is divided about what to do, and the CEO is left with what appears to be a choice between two risky options as he attempts to move Chewy forward.

Keywords: Pet Food; Pet Products; retail; e-commerce; Growth and Development Strategy; Service Operations; Decision Choices and Conditions; Retail Industry; Service Industry; Florida; United States;