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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2 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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3 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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4 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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6 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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7 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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8 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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9 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/