Documente Academic
Documente Profesional
Documente Cultură
Definition:
- A form of business that has a social purpose when it comes to sales of goods
and service for the social objective. Social enterprises aim at social and
profits for external shareholders. Paper 1 - providing solar panels due to the
shortage of electricity.
How is it different from a normal business?
- The social aim of a social enterprise nevertheless takes priority over any other
aim such as growth, maximizing sales, or making profits, which are typical
profit. However, they do not want to maximize profits as, doing so compromises
- For the business entrepreneur, value lies in the profit the entrepreneur and
investors expect to reap as the product establishes itself in a market that can
for generating these profits. To the social entrepreneur, there's also value in
profits, as profits are necessary to support the cause. That said, value for the
motivated to change the status quo, their missions differ significantly. The
- The venture's success is gauged by how much wealth it creates. To the social
entrepreneur, wealth creation is necessary, but not for its own sake. Rather,
wealth is simply a tool the entrepreneur uses to effect social change. The degree
- Finding the right staff was the second biggest problem. Connected to this
- Your social enterprise may want the board to ‘represent’ stakeholder interests –
interests conflict.
- Sometimes, you may need to make a value judgement that sacrifices profitability
in the interests of mission objectives. This is the nature of the business, but if this
is needed or done too frequently, the social enterprise will not work. If too much
conflict arises between the social and business goals of the enterprise, you may
Driving forces
● War prone zone - lack of electricity could be replaced by solar panels → market
available
Restraining forces
- Population density is 53 km per 100 km which shows the market size to be less
- Political instability - where there is no peace and this seen through its global
- The cost for market research is high → low literacy rate (people don’t know about
solar panels, so you have to teach them about solar power first, then you can
market to them by telling them that it is cheaper and better for the environment)
- Lot of time is required to set up the business - ranked 183 (meaning that it takes
as a Pvt. Ltd.
● She wants to keep control and work with like-minded people and does not
stability.
● Element of secrecy.
Other side
● Limited opportunity for further growth opportunities which means AS will have
limited capital
company to get a loan, which is used to start a business, or to improve their livelihood.
Advantages
● Aims to reduce the gap between the rich and the poor
Disadvantages
● Misuse of money could happen (people use the money for personal
expenses)
● Lack of collateral
● Stakeholder conflict
Microfinancers
Growth Strategy
Commercial marketing
Marketing activities that determine consumer needs and wants before using appropriate
Social Marketing
Difference
- Social marketing is looking at the marketing strategies from the aspect of societal
impact.
David focuses on product oriented approach - product would have to be of high quality.
Social Marketing
Commercial Marketing
● Used by companies
● Stakeholder conflict
● To give high quality solar panels quicker since it will be produced quickly
Advantages Disadvantages
Fits in with the culture, acts as a Huge training cost, probable stakeholder
Market
http://smallbusiness.chron.com/main-difference-between-social-marketing-business-mar
keting-23967.html
Recommend a suitable marketing mix for selling the solar panels in afghanistan
○ Product oriented
○ No demand
● USP
geographically favourable
● Price
○ Penetration pricing
■ They will not be able to recover fixed cost quickly as the set up cost
○ Developing Economy
● Promotion
○ Above-the-line promotion:
○ Below-the-Line promotion:
■ Personal Selling
increases cost
microfinance.
■ To start off: AS could start off with ATL to raise awareness but
● Place
■ Manufacturer: AS
■ Agent
● Microfinance provider
a driving force.
■ Customer
AS.
● Core Staff
○ Main staff:
■ Arif Kumar
● Microfinance guy
■ Su
● CEO
■ HH staff
■ David
■ Salima
○ More loyalty
● Peripheral Staff
● Lower cost
● Lesser rights
● Minimizes conflict
○ Less motivated
● Outsourced Staff
○ Staff
■ Marketing and promotion
■ Food supplies
■ Local agents
○ Lower cost
Recommend which country should be chosen for outsourcing some of the production
that the company would have to pay high wages/salaries to workers to lure them
into working with them. The only advantage here is that the unemployment is
rising.
and this could mean that the company could get away with paying less wages.
Nonetheless, it may raise ethical issues if the company exploits them to a great
extent
-
Country A Country B
Labour cost high → More skilled workers Unemployment High → Labour is cheaper
Better infrastructure for solar panels Govt. gives grants → more source of
finance for AS
SWOT of AS in Afghanistan
● Strengths
○ USP
■ Solar Panels
■ Environmentally sustainable
■ Finance
■ Human resources
○ Su is a successful entrepreneur
○ Cell Production
● Weaknesses
■ Lack of Funding
● Opportunities
■ NGOs
■ World Bank
■ Lot of sunshine
■ CSR for HH
● Threats
○ Poor infrastructure
○ Maintenance
○ Labour
● Stakeholder conflict
○ Growth strategies
Discuss any two sources of finance, which could help her improve her inflows
○ Mission Statement
○ Vision Statement
○ Projected/forecasted:
■ P/L statement
■ Balance Sheet
○ Challenges and Difficulties that might be faced in the future
Looking at the additional information given, and the existing information given in the
- Availability of labour
- Favourable location
ownership
- Poor infrastructure
https://www.pioneerspost.com/news-views/20141105/weaving-women-out-of-poverty-af
ghanistan
- Name of the organization is Aarzoo - employs women and trains them to make
rugs so they can make a living out of it. - she is a women from the developed
world.
https://www.cnbc.com/2017/11/27/solar-power-in-afghanistan-to-get-44-point-76-million-
boost.html
- Investment in solar power approved by ADB
- Increasing demand
- Favourable geographical location -closer to the sun would help the PV concept
Microfinance in Afghanistan
http://www.artf.af/results/artf-at-work/building-a-vibrant-microfinance-sector-in-afghanist
an
- Women empowerment
Section A
SWOT
Steeple
Force Field
Ansoff
Sustainability
Section B:
Section C:
- stakeholder conflict between govt and its citizens which is likely to reduce
spending power. As a result, Su’s operations are affected since people would not
Setting up of AS will take time - AS will require assistance from various financial
agencies
4.) Poor infrastructure
PPP model
Internal recruitment