In 2015, the director of the Lebanese non-governmental organization Arcenciel felt a surge of pride knowing that his organization's bottle caps project had created grassroots awareness of the importance of recycling. In recent years, Arcenciel had grown from an organization that supported people who were disabled and disenfranchised to become the largest recycler in the region. The organization had managed to create a synergy between its engagement on behalf of people who were marginalized and its activities to dispose of garbage in a sustainable and environmentally friendly way. The Lebanese public was encouraged to collect plastic waste; and in exchange for each tonne of collected bottle caps, Arcenciel would donate a wheelchair to a person with a disability who was in need. This initiative engaged thousands of people in joint collection efforts. The director wondered how the trust that Arcenciel had gained through the bottle caps project could be harnessed to bring about political change, and to place environmental and social issues in Lebanon on the national agenda.
As a Lebanese non-governmental organization, Arcenciel (AeC) had successfully created several sustainable development programs and projects that addressed the needs of marginalized populations in Lebanon’s society. At the same time, AeC based its activities on an economic strategy that guaranteed financial independence from donations and public funding. This social entrepreneur had been able to develop and adjust its strategy in a very challenging environment over the course of several decades, successfully bridging the gap between non-profit objectives and the necessity to be financially profitable. In December 2015, the organization was about to win a prestigious national peace award in recognition of its research and activities. Government institutions, municipalities, and individuals alike had recently sought AeC’s assistance in dealing with a waste-management crisis. Although this project represented a useful opportunity for AeC to communicate its vision, the co-founder wondered whether the organization was prepared to assume a larger role in Lebanon or, even further, to introduce its concept abroad. He needed to think carefully about AeC’s evolution as well as its past success factors and the possibilities for expansion.
Château Qanafar was a small Lebanese winery, operating as a family business since its inception in 2005. By 2015, Château Qanafar had managed to produce one of the best wines of the Middle East and obtain international acclaim. However, despite this success, the company’s founder understood that the general business environment in Lebanon was characterized by many uncertainties related to a weak institutional environment and high political and economic risk. Moreover, Lebanon represented a very small domestic market for wine producers. Château Qanafar’s capability to produce well-crafted boutique wine would not be enough to ensure its success in the market. Its founder was also looking to transfer leadership to the next generation of the family. How could the business sustain and grow its operations in the future?
On January 31, 2014, the founder and chief executive officer of L’Atelier Art Lounge, an art workshop with branches in Bahrain and Lebanon, faces numerous challenges: not only whether to grow the business but how to achieve a reasonable work-life balance. Political instability associated with the Arab Spring led her to close one of her shops in Bahrain, but she went ahead with opening a second in Beirut where there are few leisure activities available for children; her offering of educational entertainment has been welcomed by parents, schools and adults looking to revive a hobby or improve their skills. However, as a result of violence spilling over from Syria, many tourists are avoiding Lebanon and her store locations have experienced a dramatic decrease in customers. Now she has one day to decide whether to renew the lease of one of her outlets. This deadline represents an opportunity to consider her options for the future: should she focus on marketing her concept to increase the number of customers and consequently her bottom line, thus improving her cash flow; look for potential investors or apply for a bank loan; or close her least profitable location?
961 Beer was founded in 2006 under political and economic adverse conditions in Lebanon. One of the first craft beer companies in the Middle East, it has developed from a home brewer into a hip Lebanese brand. To attract its target set of customers — highly educated, middle-class city-dwellers — the company has opened a pub in a popular entertainment area of Beirut where it offers free samples of its beers and encourages customers to taste and ask questions about the brewery process. It also addresses the needs of consumers with a strong interest in locally produced goods and caters to the local palate. However, the company faces competition from a long-entrenched brewery that has been bought by a major international beer conglomerate. Now, in February 2009, 961 Beer is selling beyond its capacity limits. The founder is confident about the business but has to decide on a strategy for the future. Should he consolidate or should he grow? What kind of strategy will allow the company to expand and to increase its customer base without compromising on quality and the values that make 961 Beer what it is?
Inaash is a Lebanese non-profit organization that supports the development of Palestinians in refugee camps. Inaash has created jobs for thousands of women in the camps through the production of traditional Palestinian embroidery items such as shawls and dresses, which the association sells in its shop and at exhibitions. The organization has also been successful in creating valuable social infrastructure in many camps through offering medical support to the elderly and sponsoring children’s education. Major changes in the macro environment have resulted in diminishing sales and an increased dependence on donations. Inaash must rethink its strategy and consider improving its performance measurement, using social media to connect with stakeholders and raise awareness, and professionalizing its donor management. How can Inaash bridge the chasm between social purpose and financial viability?