“If the United Nations was fully funded why would we need the Arc or social enterprise?”

The Arc Initiative Ethiopia Team

Social entrepreneurs are lone pioneers that develop innovative solutions to social problems by disrupting the status quo and implement them on a large scale. There is a need for social enterprises despite United Nations being fully funded as they are designed to fill the spaces in existing services that cannot be delivered by other sectors.

Firstly, I believe that social enterprises such as the Arc initiative are needed in order to achieve a sustainable, long-term impact through their social mission, which results in a more equal distribution of benefits for the people. In contrast, the UN only solves issue at hand that creates a short-term impact. For example, after the devastating earthquake that hit Haiti, United Nations helped to support the immediate recovery and reconstruction of Haiti through their stabilization mission (MINUSTAH). However, this still results in an unequal distribution of benefits for the people. Therefore, this is where social enterprises come to play.

Second, I believe that social enterprises are needed for new innovations and solutions for social development. Yes, the UN may be able to recover and stabilize the country, but this is not enough. Social enterprises are essential in developing a social value proposition and therefore, creating a new and stable equilibrium through alleviating the neglected and highly disadvantaged population.

In conclusion, even though social enterprises may not seem to be in an international scale, I think that it can be replicated globally to provide a better future for the society.

Alibaba is a Chinese e-commerce company that has been proved successful in China. After reading Serinda Kong’s blog and learning that Alibaba has started entering international markets such as the United States, I personally agree with her view to a certain extent.

Like Serinda, I think that Alibaba employs differentiation strategy in its business. TaoBao, an online shopping website that is also operated by Alibaba, provides a platform for small businesses and individual entrepreneurs to sell their products online. This is an excellent example of a differentiation strategy Alibaba has already employed. However, I believe that in order to enter and dominate the international market where there is a continuous and rapid innovation, I strongly believe that Alibaba should focus on changing its differentiation strategy by offering unique attributes that are valued by international customers.

Given its major counterfeit issue, I believe that Alibaba should focus more on innovative and high quality products in order to expand out of China. In my opinion, the majority of people in developed countries expect quality products over cheap, counterfeit products. Previously successful for having a value proposition based on its Chinese customers’ wants and needs, I believe that Alibaba should also start realizing its international customers’ wants and needs that big companies such as Amazon have not met in developed countries. The faster Alibaba realizes this and provides innovative and high quality products, the better the chances for it to enter the international market and achieve success.

Will Apple Pay be successful in making mobile payments mainstream? I personally disagree. While Apple has built partnerships with major U.S banks and large chains such as Wal-Mart, Gap and McDonald’s, skeptics argue that other large chains do not accept Apple Pay. Starbucks, too, who has long adopted its very own mobile payment app and has become a mainstream in customers’ daily purchases, do not accept Apple Pay as their means of payment.

The introduction of Apple Pay is an excellent example of a disruptive innovation as it disrupts the existing methods of transaction by replacing cash and credit cards with mobile payments. However, despite the attractiveness and convenience of Apple Pay, I believe that the transition from traditional methods of payments to mobile payments is a challenging one, as it requires buy-in from different players. This could increase costs for retailers, as they should purchase new systems to be able to accept payments from mobile phones. Banks and credit cards issuers also have to buy-in. Furthermore, phone thefts are commonplace, and mobile payments are very susceptible to frauds and scams. Therefore, in my opinion, the introduction of Apple Pay does more harm than good, and it is important for people to understand that not all disruptive innovations are beneficial.

The principle of shared value states that businesses can create economic value and at the same time, also creates value for the society through addressing its needs. Nestlé, a Switzerland-based food and beverage company, demonstrates this concept. Nestlé is best positioned to create shared value in the field of rural development. This was done by increasing farmers’ income and through the provision of financial support for them. Nestlé also helps low-income farmers to become suppliers of their own agricultural produce through its “Agripreneurship” program, hence generating income to support their families and grow their businesses. A total of 300,000 farmers were trained through capacity-building programs in 2013 and 47.6 million Swiss francs were given as financial assistance to dairy farmers. Nestlé also aims to increase transparency and traceability in its supply chain to share them with its consumers and stakeholders.

In my view, Nestlé demonstrates the concept of shared value perfectly. It addresses the needs of the society, in this case to build an environment conducive to farming and also supporting farming as a business, to fulfill both its ethical duty and the growth of its business. In terms of its business growth, I believe that it will maintain a secure and long-term supply of ingredients with its farmers, which will be essential for the growth of global demand. Nestlé’s transparency in sharing where and how their ingredients originate to suppliers will also improve its practices, hence improving its brand reputation internationally.

Google’s office in Dublin.

From free-of-charge haircuts to personal chef-prepared meals, it is no surprise that Google is one of the best companies to work for. The reason why Google can achieve this lies on the intangible – an excellent organizational culture that stands in contrast to the organizational culture of other companies. Google’s organizational culture tends towards innovation and creativity. And for them, this means designing offices in a way to promote the process of new ideas and providing many benefits for the happiness of their employees.

Whilst some may argue that the elimination of a well-defined leader may cause confusion as to who is in charge, I believe that the lack of top-down management hierarchies in Google provides a more dynamic and open environment for every employee to voice out their ideas and thoughts. This creates a positive environment in the office, which will make the employees more productive. Google also provides many perks for employees such as a free health and dental insurance. Obviously, all these perks come with a cost for Google. However, this is truly essential for Google to retain top-notch, intelligent and talented individuals.

Yes, I do agree that the success of Google’s organizational culture may not apply to other companies, which operates on strict and conservative rules. However, I strongly believe that an essential thing other companies should learn from Google is to shape a positive community without having to use coercion. This will provide meaning to their people’s work and will bring out the best in their employees.