This program was aimed to empower the residents of affluent areas of India especially to women by promoting and facilitating their entrepreneurial potential and use it for the profitability of the company. Individuals have a special thumb drive and when they plug it in on a computer, the thumb drive takes control of the computer.
And because these markets are in the earlier stages, growth an be extremely rapid. Still there is something that holds these companies to target the poor population of the world as their consumer base: Yet, in many developing countries, such constraints are missing, and even when they do exist, they are poorly enforced, especially when it comes to marketing alcohol to the poor.
Allen stresses that Even MNCs have got into the act, DOM Benedictine, which contains 40 per cent alcohol, claims health-giving and medicinal properties. It is not true that poor has no money but the truth is poor have little or insufficient money.
The poor often buy luxury items like televisions, gas stoves or domestic electrical appliances. The income of poor might be low but it is also true that the aggregate purchasing power. Should companies have the right to profit from such sales of alcohol to the poor?
Why they are spending billions of dollars in starting various projects of social work? K Prahalad and A. This perception has proved very wrong as we have observed so many real world examples where businesses even multinational corporations have customized their products in order to cater market of poor people and have run successful and profitable ventures over there.
Why KFC is campaigning very hard to remove hunger? All content is editorially independent except for pieces labelled advertisement feature. These investments in base of the pyramid clients are also important for the businesses as they bring about progress on macro-economic level by creating work opportunities and income generation and in this way positively affecting the overall economic activity and GDP of a particular country.
For some of us it might be quite strange that in this era of free trade and free enterprise where capitalism is at its boom and large business giants are guiding and impacting government policies even laws of countries why businesses are still concerned about poor?
The bleak one would be a world of wars, internal conflicts, terrorist driven attacks, mass poverty and civil war plagued developing nations but the other brighter side would be world of prosperity, the ever increasing income levels, the ever increasing productivity, strong and vibrant economy adding millions of consumers, the increasing literacy level and many more.
Most of the businesses are hesitant to invest in bottom of the pyramid needs as they believe that poor people do not have enough money to spend on their products. Prahalad and Allen Hammond Autor: They buy product because of the sheer necessity of survival, and they may, as a result, lack the courage to demand any radical change, and may even adjust their desires and expectations to what they unambiguously see as feasible.
He was awarded honorary degrees and sought out by CEOs. Therefore businesses are continuously looking for new ways and ideas for making their relationships better with the society by contributing effectively towards it.
Aside from the direct financial cost, alcohol abuse imposes other economic and social costs affecting work performance, occupational health and industrial accidents.
Grameen group has also come up with other services for poor including housing, telecom and energy etc.
It is common perception for businesses that poor people might not be able prove as profitable customers as they have little or no money. Our research confirms that customers typically to tell twice as many people about a bad experience with customer service than they do about a good one.
One thing where MNC assumes wrongly is the estimation of the buying capacity of the poor class, instead of they focusing on the individual buying capacity, they should target the aggregating buying power of class and model their businesses accordingly.
Like a laundry system in developed countries, refrigerators, computers or even cars could be collective. The people in the slums know that buying house in mumbai is impossible hence they spend their money on these articles rather then saving for the rainy day.
This side of corporate responsibility is supported by corporate giants themselves as Mr. However it is not about serving the society unconditionally rather they are aware of the fact that having a socially responsible image is essential for their image and profitability in this competitive business age.
Microsoft founder Bill Gates called the book "an intriguing blueprint for how to fight poverty with profitability". As we all know that profitability in not about charging high profit margins it is about getting the job done with minimum amount of resources efficiently and serving the customers in ways so that they remain satisfied and loyal to your products and services.
However it is not about serving the society unconditionally rather they are aware of the fact that having a socially responsible image is essential for their image and profitability in this competitive business age.Class Serving the World’s Poor, Profitably • Prosperity come to the poorest regions only through the direct and sustained involvement of multinational companies • Multinationals can enhance their own prosperity in the process Untapped potential • Outdated assumptions on the developing world: 1) low income spent on food 2).
Serving the world’s poor, profitably 1. C.K. Prahalad & Allen Hammond (From HBR September issue) Arindum Mukhopadhyay 32nd FDP Participant IIM Ahmedabad 31st Aug Serving the World’s Poor, Profitably.
Download Citation on ResearchGate | Serving the World's Poor, Profitably | By stimulating commerce and development at the bottom of the economic pyramid, multi-nationals could radically improve. Dec 08, · " The article is the summary of the "serving the world's poor, profitably" by Ck Prahald and Alen Hammond featured in Harvard business review Posted by JUST A THOUGHT at.
Food For The Poor is seeking a talented person with integrity who will serve as a direct link between the organization and churches. Your hard work will result in tremendous blessings for needy people in the Caribbean and Latin America.
Serving the world's poor, profitably.
Harvard Business Review, 80 (9): Improving the lives of the billions of people at the bottom of the economic pyramid is a noble endeavour.Download