It has become much harder in this day and age to emerge from the poverty into the middle class. The numbers for the poor will continue to rise, but there is a way that these numbers can decrease. With the help of small factories the people in poverty have the chance to become more profitable and gain more money than they would working in fast food chains.

looking into the PEST analysis we can see that the E (Economic Factors), are mainly affected by this statement, and can be viewed into a better understanding of why small factories should continue to give jobs to those people in poverty.

Economic Factors

• Decrease Unemployment rate, increasing middle class
• Stimulate the economy
• Stronger society, creating a more efficient society

This that could help to effect from a Political stand point.

Political Factors

• Lower taxation on products produced from smaller factories
• Increase tariffs on imported products to increase the world price
• Increase employment laws on small factories

When the company’s begin to start employing more people with in poverty the market will spike in-return increasing the economic growth within those areas causing unemployment and the poverty levels to decrease.

Throughout the many tools provided in business the best one for discovering what a company’s strives to achieve is the Business Model Canvas I feel it best illustrates the large interconnected system that runs with in a company. This provides a better understanding on the many strengths a company’s has and also shows what the company needs to improve on. The model was created by Alexander Osterwalder It outlines several prescriptions which form the building blocks that are Value proposition, Customer segment, customer relationship, channels, revenue streams, Key activities, Key resources, cost structure and key partners.  It allows both up and coming businesses and existing businesses to focus on operations as well as strategic management and marketing plans.  Once the model has been created you are able to see that every aspect affects the over all success. Also allowing the company’s to see what there best traits are that are keeping them diversified from there competition.

This is a very simplified example of two categories in a model with connections to each other.

http://image.slidesharecdn.com/businessmodelcanvasworkshop-150424015113-conversion-gate02/95/business-model-canvas-workshop-72-638.jpg?cb=1437981605

In this model it shows that the company’s value proposition strongly connects to the customers segment which is who the company attracts. By Tesla providing an environmentally safe vehicle they attract more customers who are interested in keeping a clean environment. Also with Tesla providing more options and a better sustaining battery life within there cars the companys vehicles attract customers with a higher salary.

With only being providing very few points for this Tesla model you are able to get a quick insight as to how the business model works as well as see that there is many opportunity’s for connections within. This is why I feel that the business model canvas is the best for seeing what a company plans to achieve.

word count 300.

     All business comes down to is one end game; profit, responsibility, ownership. The way many businesses get to this main goal is abiding by the rules and regulations set for them, but some choose to use deception and or perform fraudulent activities. For example one of the largest banks in the United States were caught selling more than one of the same products to customers. This bank was Wells Fargo. The Ethics of this particular company was for personal gain of profits and not how it affected the people they were doing these actions to. Like stated in “The Social Responsibility of business is to increase profit” it states that business men are short sighted and see clearly into their own business but not what is going on around them. The business men of Wells Fargo illustrated this perfectly by believing in their moral that money came first and they could step on people who seemed to be unaware came back to haunt them. In return the company had to pay the Consumer Financial Protection Bureau $100 million of the total penalties – the largest fine ever levied by the federal agency. The companies who choose to abide by tinted ethics and take short cuts in reaching the end goal of profit by leaving behind responsibility and ownership fail to stay within the rules of the game.

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