Discussion response gerrad

 

Assignment ; · contribute original views · build creatively on the views on the submission · show intelligent critique of theory or practice · add an international or cultural aspect to the submission · show originality in the application of theory · clarify the theory being studied · encourage the effective contribution by asking questions on the submission below.
Submission,
Introduction

The world Economy is rapidly adjusting and moving away from US and Europe towards the East and South in countries like China, Brazil, India, Mexico, Nigeria and South Africa. These countries are emerging economies with rapidly growing economies. Social innovators in emerging markets should focus on the growing middle class in emerging economies, take on technology and build new social movements. Most companies focus on driving people to consume more of their products in new markets, instead of developing innovations in business and society that will make the economic growth in these economic sustainable. Businesses need to identify social innovations that help those at the bottom of the economic pyramid. Businesses should not create products for developed markets and readapt them for emerging markets, but they will need to change their design processes to suit emerging markets. Social innovators will partner with organisations in emerging economies, in initiatives that reward both the producer and consumer (Brugmann & Prahalad, 2007).

Business with a Government Entity

The following proposal focuses on a partnership with a Government entity with social initiative to help those at the bottom of economic pyramid. The government entity is a state corporation whose responsibility is to provide power to the citizens of the country at the lowest cost possible. An example of a similar partnership is between Contour Global, an American company and the Rwanda entity Energy, Water and Sanitation Authority of Rwanda (EWSA). EWSA objective is to provide power to the Rwandese with no profitability objective. Rwanda is a growing economy and the Rwandese requires to run their business at a low cost and in their homes.

This proposal is different from one with a profit making organisation because of the business model. In the above example, the partnership has social, economic and environmental benefits. The partnership involves the construction of a power plant by Contour Global that will utilise the hazardous methane gas in Lake Kivu to generate power. The Government entity EWAS, is not involved in the power generation, but it will purchase power from Contour Global’s power plant and distribute this to the people of Rwanda. There are no marketing costs to sell the power as would be the case in partnership with a profit making organisation. In a combined profit situation, the objective is to maximise profit through marketing their products to as many consumers as possible (Thompson & MacMillan, 2010).

The most significant changes are the benefit accrued from the partnership with the Government. The benefit will stimulate economic growth through the provision of power at a low cost. The power will enable businesses to reduce their cost of production and provide affordable goods and services to the citizens. There is also and environmental benefit through the use of hazardous material found in Lake Kivu to generate power. This reduces the harmful effects of methane which has led to a few explosions in the area. The citizen will be able to afford to have electricity in their homes, which will improve, their standard of living. This will also help those at the bottom of the economic pyramid. The American company has a market for the power as the Government is their only customer.

Personal Vision

My personal vision is to engage in initiatives that benefit both the producer and the consumer while empowering the people. Social initiatives must aim to improve the lives of those at the bottom of the economic pyramid. Businesses should use innovation and technology to create a social impact. They should not be an adaptation of products and services from developed markets but should be developed for the emerging markets. The vision is to see businesses solving social problems of the people which in turn solve economic problems. Businesses should focus on the growing middle class in emerging markets (Khavul, 2010).

The steps that should be taken to achieve this vision include acquiring deep knowledge of emerging markets to understand the social and economic problems. Once this is clear, it will be easy to come up with products and services that aim at solving them. Priorities for businesses should be developing ground breaking innovations in technology such as the use of mobile and internet platforms to conduct business. For example, there is a large population in emerging markets that find it difficult to start a business due to lack of financial services or those who cannot get access to an education. Innovations that use technology to empower the population in accessing financial services to start a business will grow the economy and make it sustainable. Other steps include the use of social infrastructure, which is rapidly, growing in emerging markets, to conduct business (Pelle, 2007). Using an information technology business to increase the use of technology in education, improves student skills, improves literacy levels and empowers the population. Other steps include making partnership with local businesses in emerging markets as they understand the social, economic, cultural and political environment.

Conclusion

The Global Economy is now driven by emerging economies and has created opportunities for social innovation. Businesses must change their business models when entering these markets. Businesses should focus on solving social problems, empowering the people and using technology and innovation to penetrate these markets. The growing middle class in these markets provides opportunities for businesses in developed markets.

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Discussion response gerrad