“Strategy” and “strategy management” are no longer strange concepts to managers today in both commercial and social organizations. The term “strategy” derives from Greek word “stratēgos”, originally meaning the art of leading an army. Since the1960s, the term has been adopted into the field of business. Strategy management has two components: strategic planning and strategy implementation (see the charts below). Its effectiveness has a direct impact on the sustainability of an organization.
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Located in southern Shaannxi Province, Xi Xiang Women’s Development Association (西乡县妇女发展协会) is a non-profit organization providing trainings and microfinance to underprivileged women in Xi Xiang County. Since its establishment in 2005, Xi Xiang has set a clear mission to empower local women by changing their mindset towards an independent and respectful life, as well as providing them skill sets and seeding funds to start small businesses. Both Xi Xiang’s product design and customer mix are fully in line with its social objectives.
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Background
In January, Xinhu-Yu Venture Philanthropy Fund announced “Xinhu-Yu VP Award” in partnership with the British Council and Venture Avenue. It is a non-cash award to support the growth of high-potential social enterprises in China.
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A McKinsey Global CSR survey in 2009 shows more than 50% of CSR professionals don’t know whether social, environmental, and/or governance programs are creating shareholder value for the organization. VA believes the situation shall be similar in China today.
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There is a growing demand for organic food among health conscious consumers, as the modern techniques of developing meat and greens have raised huge safety concerns. Organic food generally refers to food that is produced using methods of organic farming – that do not involve modern synthetic inputs such as synthetic pesticides and chemical fertilizers. Our research shows that the total retail sales of organic food globally reached $80 billion in 2009. Whole Foods Market, a renowned US organic food supermarket chain, had sales revenue over $8 billion and more than 200 retail stores.
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In 2012, invited by Jet Li’s One Foundation, VA independently evaluated 14 finalists of “Transparency Award” applicants. VA conducted systematic interviews with NGO’s senior management and beneficiary representatives, reviewed project documents, and gave out an unbiased rating on four transparence dimensions:
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Golden Wings (金羽翼) is a social enterprise in Beijing serving underprivileged children including those with autism. It uses art therapy (drawing, music, dancing, and nature learning) to improve the life quality of disabled children, helping them to pursue aspirations of art and realize their values to society. Golden Wings also sells the paintings created by these kids, in the form of calendars, post-cards and other printings. A significant portion of Golden Wings’ sales revenue is given back to those children’s families, or to support “Golden Wings trainers” to offer art trainings to more underprivileged children.
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Background
In November 2011, supported by British Council (BC) and Diageo, VA provided incubation support to 5 high-potential social enterprises (SEs), and achieved positive results both in social impact and financial performance one year later——
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It was in a nicely equipped library of an elementary school, located in a small town in Anhui province. A group of visitors brought new books and sports equipment to the school, and were playing with children like a big family.
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Social Enterprises (SEs) in China are emerging, each busy exploring their future in their own ways. We see trial and error; we see opportunities and risks. How should we objectively appraise SEs’ performance and potential? VA wants to give a few insights.
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