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INFOSYS.110 BUSINESS SYSTEMS:

DELIVERABLE 2: BUSINESS SECTION
2014

Name Taryn Mary-Anne la Grange
NetID tlag170
Group Number: 509
Website Link: http://infosys1102014fcgroup509.blogspot.co.nz/
Tutorial Details
Tutor: Day: Time:
Nicholl Friday 9am
Time Spent on
Assignment:
60 hours Word Count: 1534

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ELIMINATING FOOD INSECURITY IN NEW ZEALAND
INTRODUCTION
Food insecurity is becoming a large problem in New Zealand. Having food security means
being able to obtain food that is nutritious and safe. (Canterbury District Health Board,
2009) When families cant access healthy food they rely on cheaper, high energy options
and this can lead to serious health issues. (Christchurch Community and Public Health.,
2012) We plan to create a mechanism, similar to vending-machines through which people
can food items in return for a webcam photo which is then uploaded to Facebook. This
would make donating easy, affordable and enjoyable while raising awareness and enabling
us to significantly reduce and eventually eliminate food insecurity in New Zealand.
3. BUSINESS SECTION
3.1 Vision
We seek to create a product that makes donating food simple and enjoyable in order to
create a future where all New Zealanders can be food secure.
3.2 Industry Analysis: New Zealand Food Insecurity Prevention Industry
Industry: New Zealand Food Insecurity Prevention Industry. This industry involves
organisations which aim to prevent food insecurity in New Zealand.
Force: High/Low: Justification:
Buyer power: High
Buyer power is high as customers can choose
from several organisations such as the Salvation
Army, Fonterra milk for schools and food banks.
Since their focus on their cause, like many non-
profit organisations their customers are individual
donators and corporate sponsors. (EvalueServe,
2011)
Supplier power: High
Supplier power depends on the organisation and
their vision however it is likely to be high as many
organisations in this industry are non-profit
therefore suppliers may charge them a reduced
rate. This gives the suppliers more power as if
they stop selling; the organisation is stuck in a
difficult position.
Threat of new entrants: Low
There are several entry barriers which make the
threat of new entrants low. These include start-
up capital, building a clientele base and creating
strong relationships with customers in order to

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sustain the organisation. Volunteers are also
needed to run the organisation. These entry
barriers take time and effort to overcome.
Threat of substitutes: High
The threat of substitutes is high as there are
many other causes that people may choose to
support and there are no switching costs
preventing them from doing so. Natural disasters
are another popular area of the support; with the
2010 Christchurch earthquake resulting in tens of
millions of dollars being raised. (Statistics New
Zealand, 2012)
Rivalry among existing
competitors:
Low
While there are several other organisations in this
industry the rivalry among existing competitors is
low because the main focus is on helping people
in need and not profitability. They may also focus
on a particular New Zealand region or aspect of
food insecurity.

Overall attractiveness of the industry: The food insecurity prevention industry is not
attractive in terms of profitability as most organisations focus on helping others however
this does mean that rivalry is decreased. The industry also takes time, effort and money to
enter, and both buyers and suppliers wield considerable power.
3.3 Customers and Their Needs
As our organisation is non-profit our target group of customers are individual donors and
sponsorship from corporations and organisations. In particular those which desire a high
corporate social responsibility performance. Corporate social responsibility (CSR) is where a
company is seen to environmentally, ethically and socially responsible, in all aspects of their
business. (Corporate Social Responsibility Initiative, 2008) Many corporations believe having
a good CSR performance increases their profitability and that they need to care about CSR
because their consumers do. (Vogel, 2008) Donors are now more informed and want to
know that their funding is having a considerable impact and many corporations want to
form relationships with their community. For all our customers its critical that their
involvement gets recognition. (EvalueServe, 2011)
3.4 The Product and Service

Our product satisfies our customers needs by enabling them to increase their CSR
performance and become involved with helping local communities. We propose to offer our
product for a small fee that will cover start-up capital and production costs, with any profit
furthering our cause. It is easy, cheap and fun to use therefore employees and organization
members have nothing preventing them from utilizing it. As the webcam pictures will get
uploaded to Facebook, which currently has 1.28 billion monthly active users, they will be
extremely visible and our customers and the end-users can get the recognition for their
good deeds. (Wikipedia, 2014)

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3.5 Suppliers and Partners

D&S vending will supply the vending machine type parts necessary to build our mechanisms
structure. They provide specific parts not just entire vending machines therefore we can
tailor our product to meet our needs. (D&S Vending, 2012) Since our organization needs to
raise lots of awareness for our cause and operate our Facebook page, we therefore need to
have an internet supplier such as Telecom. We will partner with local food banks such as
Auckland, Wellington and Christchurch City Mission. This means they can receive the food
our end-users donate enabling them to allocate more of their budget to healthier and more
expensive food. In return our organization will benefit from being associated with food
banks that are supported by the community. We will also partner with local churches which
are known for helping similar causes and can promote our cause.
3.6 Strategy: Cost Leadership
Since our vision is to resolve food insecurity, our product is inexpensive and uses a low cost
strategy to encourage more customers to buy and therefore use it. Our product is aimed at
a broad market, as we want to attract customers from all areas and backgrounds
throughout New Zealand to help us reach our vision.

The overall strategy is therefore Cost Leadership.
3.7 Value Chain Acti vi ty: Marketing and selling the product

The most important value chain activity for this business is Marketing and selling the
product. In order to achieve our vision of creating a future where all New Zealanders can be
food secure, we need to attract as many customers as possible so that our product can be
widely distributed across New Zealand allowing a large number of end-users to donate food.
To ensure this can happen we need to focus on implementing a successful marketing
campaign and selling our product. This will raise more awareness for our cause and help
eliminate food insecurity in New Zealand.

3.8 Business Processes
3.8.1. MARKETING CAMPAIGN I MPLEMENTATION PROCESS This process is
important because it allows our organisation to identify who our potential customers are.
By creating a marketing campaign that is tailored to these customers, we are more likely to
successfully sell our product. This process also tracks the marketing campaign over time
enabling us to determine their effectiveness.

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3.8.2. CUSTOMER PAYMENT PROCESS This process is important as it enables people
to get involved with our cause and buy our product. Having this system online makes it easy
and convenient for customers as they can order and purchase anytime, anywhere. This
money goes towards production of our product, which is necessary for achieving our vision
and supporting our cause.



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3.9 Functionalities
3.9.1. MARKETING CAMPAIGN I MPLEMENTATION PROCESS
Stores data about potential customers
Tracks marketing campaign over time
3.9.2. CUSTOMER PAYMENT PROCESS
Processes customer order
Processes online payment and charges customers account
3.10 Systems

3.10.1. CAMPAIGN MANAGEMENT SYSTEM This is important as it helps our
organisation store data about potential customers allowing us to customise our marketing
campaign. It also tracks the marketing campaign over time, so we can identify which tactics
are successful.
3.10.2. E-COMMERCE PAYMENT SYSTEM This system is important as it enables
customers with credit or debit cards to pay electronically via online transactions which are
easy and convenient to use. (Wikipedia, 2014) By processing the customer order and
charging their account we can collect the money needed to reach our vision.
3.10.3. INFORMATION GATHERING SYSTEM This system is important as it gathers
research on our customers which can then be stored in our campaign management system.
This data is needed to successfully identify which customers would be most likely to buy our
product.

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3.11. Summary Table: Value Chain to Systems

Value Chain
Activity
Processes Functionalities Specific Information
System(s)
Broad Information
System(s)

Marketing
and Selling
the Product
or Service
1. Marketing
Campaign
Implementation
Process
1. Stores data about potential customers

2. Tracks marketing campaign over time
Information Gathering
System

Campaign Management
System
Decision Support System

Customer Relationship
Management System
2. Customer
Payment
Process
1. Processes customer order

2. Processes online payment and charges
customers account
E-Commerce Payment
System

Order Fulfilment System
Transaction Processing
System

Enterprise Resource
Planning System

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CONCLUSION

Our product is mechanism through which people can donate food items in return for a
webcam photo which will be uploaded to Facebook. It makes donating simple and allows
end-users to get recognition for good deeds; something essential for our customers who
value CSR. Our organisation uses information gathering systems and marketing campaign
systems to identify potential customers and tailor marketing campaigns to suit them and E-
commerce payment systems and order fulfilment systems make ordering and paying for our
product online easy and convenient. These systems work together to increase the likelihood
of successful sales and therefore the number of people donating via our product to help
eliminate food insecurity in New Zealand.
REFERENCES
(2012). Retrieved from D&S Vending: http://www.dsvendinginc.com/c-1-vending-parts-by-item.aspx
(2014, May). Retrieved from Wikipedia: http://en.wikipedia.org/wiki/Facebook
(2014, May). Retrieved from Wikipedia: http://en.wikipedia.org/wiki/E-commerce_payment_system
Canterbury District Health Board. (2009). Food Security - A review and synthesis of themes from the literature.
Canterbury.
Charities Commission Homepage. (2014, May 22). Retrieved from Charities Commission:
http://www.charities.govt.nz/
Christchurch Community and Public Health. (2012, December). Christchurch City Health Profile. Retrieved from
Healthy Christchurch: http://www.healthychristchurch.org.nz/media/22462/foodsecurity.pdf
Corporate Social Responsibility Initiative. (2008). Retrieved from Harvard Kennedy School:
http://www.hks.harvard.edu/m-rcbg/CSRI/init_define.html
EvalueServe. (2011, October 25). Global Trends in the Not-for-Profit Sector . Retrieved from
www.grantthornton.co.nz: http://www.grantthornton.co.nz/Assets/documents/pubSeminars/GTI-Not-for-
Profit-Sector-Industry-Report.pdf
Statistics New Zealand. (2012). Accounting for the economic effects of the 2010/11 Canterbury earthquakes in
New Zealands national accounts. Wellington, New Zealand.
Vogel, D. (2008). Corporate Social Responsibility. Retrieved from Forbes:
http://www.forbes.com/2008/10/16/corporate-social-responsibility-corprespons08-lead-
cx_mn_de_tw_1016csr_land.html
Your rules and the Charities Act. (2014). Retrieved from Charities Commission:
http://www.charities.govt.nz/setting-up-a-charity/registration-guidelines/charity-rules/