Lumni Inc.: Improving Society In A Sustainable Way
(9 pages of text)
Case (Pub Mat)
In June 2017, a journalist was preparing a major news story about Lumni Inc. (Lumni), a company that he wanted to profile in the next issue of his Mexico City–based magazine. Lumni's mission was essentially a social one: to improve the conditions, access, and quality of higher education for young students, especially in Latin America. However, although its mission was originally non-profit, Lumni was not considered a non-governmental organization since it worked with a financially sustainable model and did not depend on donations or government funding. As the journalist investigated this business model, he learned that some experts referred to it as a hybrid business model. Although he had been gathering research on Lumni for some months, he still was unsure whether his report should promote hybrid business models as viable alternatives to traditional business models.
This case is intended for use in undergraduate, MBA, and executive development courses on social marketing, sustainability, social innovation, non-profit businesses, and strategy. Students will examine Lumni's current hybrid business model and consider whether the company should change to a different business model. After working through the case and assignment questions, students will be able to do the following:
- Analyze the unique success factors of a hybrid business model that mixes profit with social purpose.
- Understand the risks and benefits of making strategic changes to a business model.
- Identify actions that the regional chief executive officer should take in response to ownership changes that threaten the existing business model.
Chile; Colombia; Mexico; Peru, Large, 2017
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