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Creative Shock Preliminary Case Study ‘18
Overview of REACH
• REACH is a ‘Not For Profit’ (NFP) organisation that uses an ecological model to empower women and
combat domestic violence in the community. In South Africa, the NFP market is shifting towards increased
community focus, providing further opportunities for REACH to focus on community development and
engagement.
• REACH provides a unique distribution network, employing unprivileged women in Soweto, a township in the
capital of South Africa, as its main product development team. The organisation gives the means to earn a
higher income and improve the living conditions of these women.
• REACH currently operates in the South Region of Soweto which is characterised by high rates of crime, low
income rates and a large disconnect between the youth and community leaders. It has historically
developed as a township for black people under the apartheid system. Today individuals living in these areas
have limited access to specific products or information which could improve their living conditions.
• REACH’s cash flows are historically unstable, with expenses often higher than revenue, while falling receipts
in 2017 have meant that cash on hand has dwindled. REACH currently operates three community services:
1) Embroidery Project
2) After School Care Programs
3) Clinical and Social Work Services
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Creative Shock Preliminary Case Study ‘18
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Creative Shock Preliminary Case Study ‘18
REACH Embroidery Project Clinical and Social Work Services After School Care Programmes
Manufacturing and sale of high-quality, Free counselling and medical assessment of Build safe play parks and house a number of
Description ethically produced bags with authentic Zulu child abuse victims services (e.g. library, tutoring, etc.)
patterns
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Creative Shock Preliminary Case Study ‘18
REACH has gained heavy media attention over the past several months which has lead to
increased community support and guaranteed donations in 2019. Consequently, Dr. Leela has
come out of the board meeting with high spirits regarding the future of REACH.
Situation Many new ideas were raised during the meeting. In particular, the board has had a desire to
increase the social impact of REACH for a very long time. Additionally, as REACH has been
looking strong the past years, the board is considering 3 Soweto regions for expansion in 2019
and has not yet decided which region would yield the best result. Dr. Leela has decided to
consult a local consulting team to assist in the decision making process.
1. Provide your recommendation and arguments to which region should REACH expand in
order to remain sustainable and maximize their income (from both product sales &
donations), while at the same time reaching their Social Goals they had set up for the next
Your Task years.
2. Provide ideas/strategies on how REACH could increase their social impact in Soweto. Use
strategic tree template provided to map your ideas.
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BACK UP
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Creative Shock Preliminary Case Study ‘18
• Increase REACH’s women • Income from bags • Not less than R$32,000
income above the baseline manufacturing per per year
women employed
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Creative Shock Preliminary Case Study ‘18
Sales commissions*, %
5-9% 7% 18%
Description REACH is currently Women are manufacturing Small distribution A REACH service person A REACH Sales Main customers
working with 1 bags in REACH HUB, which centers set up in manages orders and Representative sells are upper working
supplier. The cost of functions as the different regions. delivers products to the goods on behalf of the class citizens.
the materials per bag is distribution centre of the Goods from REACH REACH Sales Rep. women and manages Additionally,
R$4. Southern Region as well**. HUB are delivered sales orders. Because recently small
Women are paid R$80 per directly to these of effective sales force businesses have
bag produced. In Soweto, a centers. all of the bags currently started to use the
traditional week is 5 produced are fully sold bags for store
working days. Each woman in few weeks period in decorations
has an average of 3 sick the South Region of
days per year and typically Soweto.
takes 3 weeks of holidays
per year
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*Assume that 1 person will purchase 1 bag
Creative Shock Preliminary Case Study ‘18
• Console Pty Ltd: Located in West Soweto, the organisation sells high technology devices and provides
customer support.
• Arms Length: Located in North Soweto, the organisation supports disadvantaged children.
• Faith: Located in South Soweto, the organisation focuses on sustainable production of goods and services.
• Investor Private: Located in East Soweto, the organisation manages investments in high risk companies.
The company is looking to expand their corporate social responsibility
• Forever New: Located in South Soweto, the organisation has been a consistent supporter and buyer of
REACH’s products.
• Township Realtors: Located in North Soweto, the organisation manages multiple properties in North
Soweto.
• Wits Training: Located in East Soweto, the organisation develops professional training courses to improve
the labour force.
• LifeLine: Located in South Soweto, the organisation is a mental health charity working with the youth.
• SupportCom: Located in South Soweto, the organisation assists the elderly in daily care needs.
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Creative Shock Preliminary Case Study ‘18
• Infant Trust: Located in North Soweto, the organisation is a community business dealing with legal and financial assistance.
• Parity Software: Located in West Soweto, the organisation is the developer of cyber security software and infrastructure.
• Liberty: Located in South Soweto, the organisation is a legal firm dealing with civil cases.
• Rand Water: Located in West Soweto, the organisation is responsible for the water management system across West
Soweto.
• Vodacom: Located in East Soweto, the organisation is a provider of telecommunication services across East Soweto.
• Change.Org: Located in South Soweto, the organisation is a multinational corporation developing sustainable products.
• CC Pty Ltd: Located in East Soweto, the organisation is a leading cleaning and maintenance provider.
• Owner: Located in South Soweto, the organisation is a local developer in the South Soweto region.
• Aspen Pharmacare: Located in West Soweto, the organisation is a wholesaler of pharmaceutical products.
• EOH: Located in East Soweto, the organisation is a local construction company.
• IDC: Located in North Soweto, the organisation is a construction company who is looking to expand their corporate social
responsibility.
• Challenger: Located in South Soweto, the organisation is large wholesale store.
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Creative Shock Preliminary Case Study ‘18
Opportunity:
9.10 % 7.22 %
8.10 % 6.23 %
5.50 % 4.02 % 4.20 %
4.27 %
2.03 %
Arms Length Township IDC Infant Trust EOH Investor Wits Training Vodacom CC Pty Ltd
Realtors Private
West Region South Region
12.00 % 6.30 %
9.50 % 5.10 %
3.10 %
4.31 % 4.20 %
1.30 % 1.11 % 1.30 % 1.01 %
0.10 %
Console Pty Ltd Parity Software Aspen Rand Water Faith Forever LifeLine Support Change. Owner Liberty Challenger
Pharmacare New Com Org
Note: In 2017 Wits Training donated R$4,812. Same amount of donations is expected to be received next year as well
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