Article from TechWomen

I found this blog post interesting and useful as I read it because several parts of it relate to topics and strategies that we have been learning in Comm 101 class. However, the following two recommendations jumped out, since they demonstrate similarities and differences around business approaches.

Their second recommendation is: “know your audience, and be unique” which links back to Paul’s video in which he talks about the importance of having a point of difference. Both Paul and Dr. Samani (author of the article) agree in that the differentiation should be regarding the “approach of your market”, not the characteristics of your product, and that “gaining recognition from my target market was essential” regardless of what are the most important characteristics of the product, as long as one of them is highlighted to create a new market “ladder” in which your product can be on top.

The fourth recommendation is: “commit to a business model”; we have learned through comm 101 how important business models are. However, Dr. Samani suggests that an entrepreneur should commit to it and “have faith” in it. On the other hand, working on the group assignment throughout the term, I learned that business models may be incomplete and very often have space to be improved. Nevertheless, I found it interesting that there is not one only way to be successful in business but that different approaches may present for the same tools

The importance of the news is rather the hidden motives McDonald’s has regarding the new burger, rather than the innovation that they are bringing bout with it. 

Although innovation is crucial for every company, not all innovation is constructive. McDonald’s is now offering 19 different toppings for their burgers, but: is that really
what customers want? When applying the value proposition canvas, this does not relieve any pain for the customers never complained over the lack of options that McDonald’s offers. Such element does not bring about much of a gain either regarding the type of fast food chain this restaurant is, conversely, that many options rather complicate the process and creates a frustration in the customer since they are looking for fast food yet have to stop and consider so many different toppings while nobody who goes to this restaurant needs such specific combinations.

On the other hand, the array of combinations may be a strategy for McDonald’s to deal with the external environment affecting the food chain. Societal and cultural changes apply perfectly to this industry since people change their tastes so the restaurant has to change its menu. However, instead of making up new combinations of burgers, McDonald’s allow its customers to make their own combination. The value of this information lays in that the most popular combinations may become the new classic specials and the 19-options-gourmet-burger can get off the market if it is not popular.

1.  The United Nations’ ultimate purpose is not to make profits.

On the other hand, founders of social enterprises do actually pursue making a profit at the same time as maximizing human well-being. Therefore, social enterprise gets markets moving normally as other business would, with the difference that more people get significantly benefited out of the commercial strategy.

2. Regardless of the UN, people will continue pursuing business. 

Ambitious people will not be vanished so, if the UN went around the world helping people’s needs which could be addressed by social enterprises, ambitious entrepreneurs will still look for a way to set up a business. Therefore, if social enterprise was abolished, the UN would simply be taking an additional responsibility which could be solved by businessmen who would at the same time make a profit out of it.

3. The UN is an intergovernmental organization.

Yet Arc Initiative is not involved with governments. This means that due to political issues – such as not being a member of the United Nations – could limit the UN from contributing to development in a number of countries. In the meantime, Arc rather extends itself to the countries where it is possible and it is needed.

4. The UN and Arc focus on very different aspects of development.

Although they both contribute towards it, one of the UN’s main goals is to “eradicate extreme poverty” whereas Arc is more like a bridge which provides a “two-way exchange of knowledge and business skills” hence the UN may limit itself to setting up a sustainable community while Arc will rather boost specific businesses’ growth.

5. Arc is a two-way exchange of knowledge and business skills.

This leads to the contribution of students’ hands-on learning experiences instead of the professionals that the UN would normally hire. Consequently, Arc builds a stronger and better prepared workforce; which by the way, may end up working for the UN since they graduate as more experienced professionals.

Free stuff?
Yes please!

A mall, Plaza Merliot, in El Salvador’s Capial, is putting up a 20 day long campaign in which they bring together certain elements on the Business Mode Canvas. The campaign consists in giving away to their customers one gift every day for 20 days celebrating the mall’s second decennary. One of Plaza Merliot’s most remarkable value propositions is that they aim at satisfying as many customers as possible by hosting the widest possible variety of stores. Although they are not becoming a sustainable pain reliever, according to The Value Proposition Canvas, they are creating a gain as they fulfill something customers always dream about: free goods.  During this campaign, the gifts that they will give away will also address all customer segments for the gifts will include clothing, health related products, home appliances and even fireworks. That is possible because of the array of key partners the mall has, who supply the goods to be given away. These partners are willing to collaborate since the customers drawn to the mall will consequently be drawn to themselves. Furthermore, in order to maintain a strong relationship with its partners, Plaza Merliot offers cheap prices and several benefits (such as security and low cost advertisement opportunities) to the stores interested in settling there. Finally, in order to make this project possible, the mall is carrying out the raffles and contests through Facebook. People will follow them and that way, they will boost the amount of people in constant contact with this business since it is unlikely that they will un-follow the page after the contests are over. It is very likely that the company decided to reach their customers through this channel because it is the most effective: it is cost efficient and it social networking is part of most people’s routine now a days. Although this campaign only lasts twenty days, it will attract so many customers with the purpose of having many stay as frequent ones.

article: Plaza Merliot’s 20 years

Bench Co. is a perfect example of creating shared value by addressing “societal needs, not just conventional economic needs”. The founder, Ian Crosby, recognized the need that professionals and smalls businesses of having their incomes and expenses recorded and analysed. Bench is further differentiated because the customer does not have to do pretty much anything that keeping the receipts for the company is in charge of scanning and transcribing them.

The pain identified in the value proposition canvas is “what are the main difficulties and challenges your customer encounters?” specifically being the lack of time and experience with bookkeeping the emerging professionals face. Bench therefore reliefs the pain through its advanced systems, professional personnel, and time-efficient operations.

One of the ways to maintain these operations as efficient as it can be, the best possible team must be working for Bench. In order to attain this, Crosby has created an attractive organizational culture in which his employees have the opportunity to meet with him personally every so often in order to discuss the growth and development track of the company. Workers feel empowered and comfortable by having their voice heard by the CEO. Furthermore, they can give feedback on the server to the IT managers and see the changes in a couple of days.