Strategic Planning for Social Enterprises: A Systematic Analytical Approach

Zheng Qingyu

Abstract

Social enterprises (SE) are organizations that seek to achieve social goals through commercial activity. As there is a growing number of SE that effectively addresses social problems, they also make contributions to the growth of economy. However, the management of double bottom line, i.e. social impact and financial viability, poses great challenges to SE’s strategizing and operationalization. Moreover, the dynamic environment where SEs operate becomes more competitive for them to gain adequate resources. All the challenges threaten SEs’ organizational sustainability which is essential to an organization’s long term viability and growth.

While there is little literature addressing the strategic planning for SE to maintain its organizational sustainability, this thesis aims to develop strategic planning tool through an integration of systematic and analytical approach for the planners in a SE. The strategic planning tools consist of three phases. First, frame potential problems and propose possible strategies to SE via the use of causal loop diagram. Second, apply forward and backward planning process to come up with strategies leading to a desired future of SE. Lastly, analyze the proposed strategy based on benefit and cot analysis using analytic hierarchy process and data envelope analysis before implementation stage. This thesis will show how the combination of the three phases constitutes an effective strategic planning tool through a case study on an existing SE—Industree Crafts located in India. And the thesis will conclude with the limitations of the model as well as intended future work.