DR. YANGA’S COLLEGES, INC.

COLLEGE OF BUSINESS ADMINISTRATION

SoulCycle: A Classic Entrepreneurial Tale

In fulfilment of the subject requirements in

CGEEnt113: Entrepreneurial Mind
1st Semester A.Y. 2023-2024

Submitted to
MS. GENA D.G. CRISOLOGO

Submitted by:
CASTRO, ARIELLE ROSE M.
COLCOL, DONNA MAE D.C.
DELA CRUZ, JULIAN PAUL YEOJ M.
GAMAZON, KATHLEEN S.
NICOLAS, FINE FAITH R.
RAYMUNDO, JHIEL J.
TANDIAMA, ROCELLE S.
BSBA 1A – P.A.C.E.D.

Bachelor of Science in Business Administration

 I. Introduction

The Embrace Infant Warmer stands as a testament to the transformative power of innovation and

compassion. It narrates the remarkable journey of a team of Stanford students who undertook the

formidable challenge of addressing a critical issue – the alarming rate of infant mortality due to

hypothermia in rural areas of developing countries.

The key problems and issues of the Embrace Infant Warmer case are multifaceted. First, there

was a distressingly high mortality rate among premature infants in rural regions of developing countries

due to hypothermia, a preventable condition if adequate incubation was available. Second, traditional

incubators were financially prohibitive, reliant on electricity, and ill-suited for rural environments,

rendering them inaccessible to those who needed them most. Third, the Embrace team grappled with the

influence of local cultural beliefs, practices, and economic circumstances on product adoption. Lastly,

concerns arose regarding the sustainability of the business model, as relying solely on government

contracts for sales raised questions about long-term viability.

The Embrace Infant Warmer serves as a beacon of hope, showcasing how an unwavering

commitment to innovation, customer feedback, and cultural sensitivity can transform an ambitious vision

into a reality that has the potential to save countless lives and inspire future endeavors in global healthcare

innovation.

II. Background

The Embrace Infant Warmer unfolds against the backdrop of a global health crisis – the

harrowing reality of high infant mortality due to hypothermia in underserved regions of the world. This

crisis, which disproportionately affects premature babies born in resource-constrained rural areas of

developing countries, highlights a pressing and formidable issue in the realm of healthcare.

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 Every year, approximately 15 million pre-term and underweight babies come into the world in

these developing nations. Tragically, a staggering three million of these newborns face the gravest risk,

with their lives hanging in the balance during the first 28 days of existence. This equates to six infants

succumbing to hypothermia-induced death every single minute. Hypothermia poses a particularly

menacing threat to these tiny, fragile lives since premature babies lack the necessary fat reserves to

regulate their body temperature, rendering them alarmingly susceptible to the cold. Astonishingly, even in

room temperature conditions, these infants are at risk of freezing to death.

Moreover, the geographical epicenter of this crisis lies in India, where nearly half of the world's

low-birth-weight babies are born. These statistics reveal the stark magnitude of the problem, casting a

long shadow over rural healthcare infrastructure.

The existing solution, traditional incubators, although effective, presents its own set of

challenges. These life-saving devices come with exorbitant price tags, often soaring up to $20,000 each,

and require a constant supply of electricity. Their complicated operation further complicates their usage in

resource-limited environments.

Confronted with these grim realities, the case emphasizes the imperative for innovation and

change. The objective was clear – to make a meaningful impact on infant mortality by developing an

affordable and accessible solution. However, it was essential to venture beyond conventional problem-

solving approaches and navigate a maze of cultural considerations that played a pivotal role in this

complex narrative. The story of Embrace Infant Warmer underscores the synthesis of compassion,

innovation, and cultural sensitivity in addressing these monumental issues and saving countless lives.

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III. Evaluation

High Mortality Rate

The high mortality rate among premature infants in rural areas of developing countries due to

hypothermia is substantiated by research in neonatal healthcare, which emphasizes the importance of

maintaining an optimal body temperature for premature babies (Jackson et al., 2017). The case highlights

that this problem stemmed from the inaccessibility of traditional incubators and the cultural practices of

rural communities. The Embrace Infant Warmer aligns with the theory of equitable access to healthcare,

as articulated by Sen's capability approach (Sen, 1985). By providing an affordable and portable solution,

Embrace reduces infant mortality due to hypothermia and enhances the capability of these vulnerable

infants to survive and thrive.

Inaccessibility of Incubators

The inaccessibility of traditional incubators in rural areas resonates with theories of healthcare

inequality and resource scarcity (Whitehead, 1992). The Embrace Infant Warmer effectively addresses

this challenge by offering a low-cost, electricity-free alternative designed for rural settings. The theory of

innovation diffusion (Rogers, 1962) supports the case by emphasizing the importance of introducing

innovations that bridge healthcare gaps in resource-constrained regions. Embrace's innovation aligns with

this theory by facilitating the diffusion of accessible and effective healthcare solutions.

Cultural and Economic Factors

The Embrace team's challenges related to local cultural beliefs, practices, and economic

conditions are in line with the theory of cultural competence in healthcare (Betancourt et al., 2003). The

case demonstrates that understanding and adapting to local customs are essential for the effective

implementation of healthcare solutions, reflecting cultural competence theories. The adaptation of the

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Embrace Infant Warmer to local beliefs showcases the practical application of these theories, as it fosters

greater acceptance and adoption of the product among the target population.

Sustainability

The challenge of relying on government contracts for sales echoes theories of business

sustainability and financial viability (Elkington et al., 1997). Embrace's diversification of revenue streams

by introducing retail products aligns with the concept of sustainable business models and revenue

diversification (Hart, 1997). This approach reduces the risk associated with depending solely on one

revenue source and is congruent with theories advocating for diversified income streams in social

entrepreneurship (Austin et al., 2006). Embrace's strategic expansion and revenue diversification

reinforce the sustainability and longevity of their impact.

The Embrace Infant Warmer case effectively addresses the high mortality rate due to

hypothermia among premature infants in rural settings by providing an affordable, accessible, and

culturally sensitive solution. The success of this case is rooted in its alignment with theories and research

related to healthcare equity, innovation, cultural competency, and business sustainability, making it a

compelling example of effective practices in social entrepreneurship. However, the company must

continuously innovate and adapt to remain competitive in the evolving needs of its customers. This will

require ongoing research and development to stay ahead in the ever-changing industry.

IV. Proposed Solution/Changes

In addressing the challenges faced by Embrace Infant Warmer, several strategic changes are

proposed to ensure the company remains competitive and continues to thrive in the evolving fitness

landscape.

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Continued Adaptation to Cultural and Economic Factors

Embrace should persist in adapting its products to accommodate the specific cultural and

economic nuances of different regions. This solution is rooted in the theory of cultural competence in

healthcare (Betancourt et al., 2003). Adapting the Embrace Infant Warmer to align with local customs and

economic conditions is essential for effective implementation. Research shows that products designed

with cultural sensitivity are more likely to be accepted and utilized by the target population (Kirmayer et

al., 2013). By continuing to address these factors, Embrace can enhance the adoption and impact of its

products in diverse regions.

Diversified Revenue Streams

To ensure the long-term financial sustainability of Embrace, it is crucial to develop multiple

revenue streams beyond government contracts. This strategy aligns with the theory of sustainable

business models (Elkington et al., 1997). Relying solely on one source of revenue, such as government

contracts, can be risky. The introduction of retail products like Little Lotus has proven successful in

providing a sustainable income stream (Hart, 1997). By diversifying its revenue sources, Embrace can

reduce financial vulnerability and maintain the necessary resources to continue its mission.

Global Expansion and Partnerships

Expanding Embrace's reach to additional countries and establishing partnerships with

multinational corporations aligns with the theory of innovation diffusion (Rogers, 1962). This theory

emphasizes the importance of introducing innovations that bridge healthcare gaps in resource-constrained

regions. Research also supports the idea that partnerships with established organizations can increase the

distribution and impact of social ventures (Austin et al., 2006). Embrace's global expansion and

collaborations can further extend the reach of its life-saving products and services.

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Global Expansion and Partnerships

Investing in research to address additional factors contributing to infant mortality, such as

pneumonia, infections, and diarrhea, complements Embrace's mission to save infant lives. This approach

aligns with the broader concept of comprehensive healthcare solutions and evidence-based practices

(World Health Organization, 2019). To maximize its impact, Embrace should expand its focus to address

other common causes of infant mortality. By doing so, the organization can enhance its effectiveness in

improving child health outcomes and serve as a model for holistic healthcare intervention.

In conclusion, these proposed solutions for Embrace Infant Warmer leverage established theories,

research, and best practices in healthcare and social entrepreneurship. They offer practical and evidence-

based approaches to address the identified challenges and ensure the sustainability and growth of

Embrace's mission to save the lives of vulnerable infants. Embrace's dedication to continued adaptation,

revenue diversification, global expansion, and comprehensive healthcare solutions positions it as a leader

in the field of social impact and healthcare innovation.

V. Recommendation

Table 1. Recommendations for Embrace Infant Warmer

Strategy Specific Actions People Responsible

Engage Local Communities Embrace should continue to Embrace's field teams and

prioritize community local partners should lead

engagement and these efforts.

understanding the unique

needs and cultural context of

each region it serves. This can

be achieved by employing

local community liaisons or

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 facilitators who bridge the

gap between Embrace and the

communities.

Explore Public-Private To scale up distribution and Embrace's leadership and

Partnerships impact, Embrace should seek business development teams

strategic partnerships with should spearhead partnership

governments, non- discussions.

governmental organizations

(NGOs), and private

corporations. These

partnerships can provide the

necessary resources,

expertise, and networks to

extend the reach of the

Embrace Infant Warmer.

Educational Initiatives Embrace should continue its Embrace's nonprofit arm,

educational initiatives to which runs educational

promote awareness about the programs, should be

Embrace Infant Warmer and responsible for designing and

educate healthcare providers executing these initiatives.

and caregivers on its proper

usage. These initiatives could

include training programs,

workshops, and information

campaigns.

Monitoring and Evaluation Embrace should establish a Embrace's research and

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 robust system for monitoring evaluation team, in

and evaluating the impact of collaboration with local

the Embrace Infant Warmer healthcare providers and

on infant mortality rates in researchers, should be in

different regions. This entails charge of setting up this

collecting data on the number monitoring and evaluation

of infants saved, health system.

outcomes, and feedback from

healthcare providers and

communities.

Additional recommendations also include, expanding research efforts to address factors

contributing to infant mortality, involving collaborations with medical researchers. Their research and

development team will lead these initiatives. In parallel, Embrace should engage in policy advocacy, led

by their leadership in partnership with experts and NGOs, to influence neonatal care and healthcare

infrastructure policies in developing nations. Additionally, the organization should establish a dedicated

global expansion team, well-versed in local contexts, to facilitate partnerships and distribution in new

regions. To ensure product quality, Embrace's manufacturing and quality control teams should enforce

rigorous quality control measures and compliance with international standards. These strategic actions

collectively strengthen Embrace's position in reducing infant mortality in developing countries.

By implementing these recommendations and further actions, Embrace can enhance its

effectiveness, expand its reach, and make a more substantial impact on reducing infant mortality in

developing countries. These steps will require a coordinated effort involving Embrace's leadership, local

partners, healthcare providers, and communities.

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VI. Conclusion

In conclusion, the Embrace Infant Warmer case exemplifies the profound impact of innovation

and compassion, addressing the alarming rate of infant mortality due to hypothermia in developing

countries. The multifaceted challenges it faced, including high mortality rates, inaccessibility of

traditional incubators, cultural and economic factors, and sustainability concerns, underscore the

complexity of healthcare innovation in underserved regions. The Embrace story represents a beacon of

hope and showcases how unwavering commitment to innovation, customer feedback, and cultural

sensitivity can transform an ambitious vision into a life-saving reality.

The high mortality rate issue, deeply rooted in research on neonatal healthcare and equitable

access to healthcare theories, finds a compelling solution in the Embrace Infant Warmer. It offers an

affordable, portable, and culturally sensitive approach to reducing infant mortality due to hypothermia.

Inaccessibility of traditional incubators aligns with theories of healthcare inequality and resource

scarcity, making the Embrace Infant Warmer's low-cost, electricity-free alternative a beacon of

innovation diffusion. Cultural and economic factors are addressed through cultural competence in

healthcare theories, emphasizing the importance of adapting products to local customs and conditions.

The pursuit of sustainability mirrors theories of business sustainability, financial viability, and revenue

diversification, with Embrace's strategic expansion and diversification strategies ensuring long-term

impact.

Proposed solutions further this mission, with continued adaptation, diversified revenue streams,

global expansion, and comprehensive healthcare research, all underpinned by established theories and

research in healthcare and social entrepreneurship.

The recommendations, focusing on engaging local communities, exploring public-private

partnerships, educational initiatives, and robust monitoring and evaluation, provide concrete steps to

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enhance Embrace's impact on infant mortality in developing countries. Additionally, the expansion of

research efforts, policy advocacy, dedicated global expansion teams, and stringent quality control

measures reinforce Embrace's commitment to improving child health outcomes.

By implementing these recommendations, Embrace can continue its vital mission, saving

countless infant lives in underserved regions. This collective effort, involving Embrace's leadership, local

partners, healthcare providers, and communities, positions the organization as a leader in social impact

and healthcare innovation, driving transformative change for the betterment of vulnerable infants

worldwide.

References:
Jackson, K., Ballard, O., & Goldsmith, J. P. (2017). Improved Survival for Extremely Preterm Infants.
Pediatric Clinics of North America, 64(5), 1047-1061.
Whitehead, M. (1992). The concepts and principles of equity and health. International Journal of Health
Services, 22(3), 429-445.
Rogers, E. M. (1962). Diffusion of innovations. Free Press.
Betancourt, J. R., Green, A. R., & Carrillo, J. E. (2003). Cultural competence in health care: Emerging
frameworks and practical approaches. The Commonwealth Fund.
Elkington, J., Hailes, J., & Makower, J. (1997). The Green Bottom Line: Environmental Accounting for
Management: Current Practice and Future Trends. Environmental Quality Management, 7(4), 43-52.
Hart, S. L. (1997). Beyond greening: Strategies for a sustainable world. Harvard Business Review, 75(1),
66-76.
Austin, J. E., Stevenson, H., & Wei-Skillern, J. (2006). Social and commercial entrepreneurship: Same,
different, or both? Entrepreneurship Theory and Practice, 30(1), 1-22.
Kirmayer, L. J., & Groleau, D. (2001). Affective disorders in cultural context. Psychopathology, 34(3),
131-140.
World Health Organization. (2019). Integrated care models: An overview. WHO Regional Office for
Europe.

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