Imagine yourself as an entrepreneur in the process of creating a social enterprise. You are required to identify a problem or challenge that exists in Brunei (or another country of your choice) and develop a social enterprise for solving that problem, which should be based presented as a written report.
Social Enterprise is an organization, which implements commercial strategies to increase the improvements in social, environmental and economic well-being. It may include enhancing the social impact along with its profits for internal and external stakeholders. Social entrepreneurs can structure these firms as non-profit or for profit, mutual firm, co-operative, and benefit corporation or charity organization. These social enterprises are established by the social entrepreneurs, who look for the need to implement the changes and they go through the ways to see how they can make changes for better world and better society (Aleluia, & Ferrão, 2016). There are many social entrepreneurs, who structure social enterprise to resolve any issue or implement changes in the country. This report includes the creation of a new social enterprise to resolve the issue related to food and other wastage. This social enterprise is named as Green Planet, which will work to manage different type of wastage in Brunei.
In this report, there is a discussion about the social mission and products/services, which are offered by organization to resolve the issue. Moreover, it includes target market, market position, competition and pricing strategy that is implemented by Green Planet in Brunei. It includes the strategies and ways, through which the organization can be better than its competitors in country. Furthermore, the report draws the business model canvas for Green Planet Organization. This business model canvas discusses about different components, which are required for developing a positive and effective value proposition.
Brunei is a small country on the island of Borneo in 2 different sections that is bordered by South China Sea and Malaysia. With a tiny population of 400,000 people, Brunei Darussalam ranks among the highest in the region in the area of waste generation, i.e. 1.4 kilogram per person/day. From this total wastage, much of this includes 18% paper waste, 36% food waste, 17% plastics, 7% metals, 6% glass and 15% others (Department of Environment, Parks and Recreation, 2015). By looking at the extensive canvas of waste composition, there is a surplus of opportunities in terms of economic, social and environmental advantages with minimization of wastage in Brunei Darussalam. In the country, there are various reasons behind this wastage, like; supermarkets in the country are disposing their rotten fruits and vegetables in landfills that are contributing to the harms of greenhouse gases being emitted globally in the environment. Food wastage is more than other wastage in the country, as people generally prepare more food than requirement, when having a meal or organizing a social and religious gathering. This wastage is affecting environment and natural resources adversely. However, this nation is implementing a model that indicates that Brunei Darussalam is well-placed to become a model of how a nation can have healthy economy and healthy people, but it failed to manage the related things. It is affecting the natural environment and climate in the country. This is one of the major issues, which are affecting the life and economy of the country (Brunner, & Rechberger, 2015). The country is making efforts to deal with these issues. Thus, this is one of the major social problems in Brunei that is affecting the lives of people, natural resources, land, climate, water and biodiversity. To deal with this issue, the new social enterprise, i.e. Green Planet will be established.
Target Market and Competition
To deal with the above stated issue, it is very important to establish a social enterprise, so that different types of wastage can be minimized. Green Planet will be set up to minimize all types of wastages, especially food wastage. The organization will offer the services through their mobile application and platform (Awan, 2011). This application will assist the organization to connect the retailers with surplus food to local charity institutions, which are working with poor communities. Green Planet will be the best example of social enterprise, which will be engaged in reducing the wastage in Brunei and its nearby areas. Apart from this, the organization will not only collect the wastage, it will also empower the local people to make money from the unmanaged wastage in their street areas. It will make efforts to partner with the Lagos Waste Management Authority and gathers waste, inclusive of plastic bags, plastic bottles, aluminum and other waste materials. In addition to this, Green Planet will promote conservation and environmental education. The organization will make efforts to generate the revenues by becoming a social enterprise in Brunei (Deakins and Freel, 2009).
The enterprise will develop an effective value proposition, which will create a positive perception in the mind of community people. To offer its services, Green Planet will implement effective strategies and tactics, which will assist the organization in resolving the issue and making changes in the community and natural environment (Brunner, & Rechberger, 2015). First, this social enterprise will implement differentiation strategy, under which it will distinguish its products and services from other social enterprises in the country. The enterprise will use modern and advanced technology to manage and minimize the wastage in country. It will create a mobile application and website, through which people can connect with them. The product differentiation strategy will assist the organization in offering the products and service, which will be perceived and valued by the community people as more exclusive and better than its leading competitors in country (Drucker, 2014).
Generally, it is said that social entrepreneurs are the social problem solvers for a community. They structure a social enterprise to make good changes in the community and resolve the social issues faced by people (Corner, & Ho, 2010). These enterprises are established in the interest of society and its people. In this way, Green Planet will also be established with a social mission or goal that is given below;
- To resolve the issue of improper waste management in Brunei by social entrepreneurship
- To develop a source of revenues and profits for the community via social entrepreneurship and make a sustainable environment
- To make the people aware about the waste minimization, reduce, reutilize and recycle the waste materials
In this way, this social enterprise will work with the social mission of making Brunei as a wastage free country.
To accomplish this social mission, first Green Planet will promote the environmental education among Brunei population. For managing the food wastage, associate with the retailers, who have excess food with the local charity institutions, which are working with poor societies. The organization will make the supermarkets and retailers aware that they should return the non-perishable products to the suppliers. Moreover, it will encourage the customers to buy the semi rotten and damaged fruits and vegetables for their birds and pets. Furthermore, compositing will be an effective way for the supermarkets and departmental stores rather than throwing them to landfills (Ngoc, & Schbitzer, 2009). In addition to this, Green Planet will avail the assistance and partnership from government and promote its products and services through youth led campaigns and youth initiated programs.
Brunei is a nation with the small wealthy economy, which is a combination of domestic and foreign entrepreneurship, welfare measures and government regulations. The economy of country is completely assisted by export of natural gas and crude oil, with the profits from petroleum industry covering more than half of Gross Domestic product. However, it is a small country with a small population of only 400,000 people, which is located on 2 distinct sections, i.e. Malaysia and South China Sea. Revenue generated from gas and oil industry have supported Brunei nation to become one of the richest economies in the world. For the economy of Brunei, trade is one of the most significant factors. The value of imports and exports together is equal to 107% of Gross Domestic Product (GDP). Thus, the current economic condition of Brunei nation is moderate in today’s environment (Brunei Darussalam, 2017).
By taking new initiatives with government and implementing effective strategies, Green Planet will be able to improve the lives of Brunei community and its people. This social enterprise will assist in improving the lives of people in the nation. One of the major wastages is food wastage, which will be managed and minimized by taking some initiatives and connecting with the suppliers and charity organizations. It will assist in reducing and managing food wastage and making healthy people and healthy economy in Brunei country. It will have a large impact on the community and lives of its people (Wry & York, 2017).
The major target market for Green Planet will be entire population of Brunei, specifically women, regional supermarkets and educational institutions, which may spread the environmental education and encourage the people to minimize different types of wastage, i.e. paper, food, plastic and others. By targeting the population, the company will place its services in the market in such a way that it can create positive perception in customers’ minds. As a social enterprise, Green Planet will avail the best practices and methods from corporate level to develop customer relationships and loyalty (Ridley-Duff & Bull, 2015). For effective market and strategic positioning, Green Planet will conduct campaigns and events, through which it will deliver its mission and objectives to population of Brunei. It will make them clear that this social enterprise will work in the interest and social benefits of Brunei’s public.
Business Model Canvas
In Brunei, there are various for-profit and non-profit organizations, which are already working for the social benefits of Brunei’s community. One of the major competitors of this enterprise will be Green Brunei, which was working as non-profit organization. Now, this organization is making efforts to become a whole time social enterprise. Green Brunei is a not for profit organization, which was established in 2012 and engaged in promoting environmental education. Currently, it is operating as a volunteer firm, which is totally dependent on the sponsorships (Green Brunei, 2017). Now, Green Brunei is looking for generating the profits by becoming a social enterprise. However, it will pose competition on Green Planet in Brunei, but Green Planet can be better by incorporating advanced technologies in its operations. It will avail the contribution of government and population of country. The target market coverage of this new social enterprise is more than Green Brunei. In this way, the organization will be better than its competitors and minimize the wastage in the country (West, Ford & Ibrahim, 2015).
Green Planet will use both primary and secondary market sources to identify the needs of target audiences. The organization will conduct market research to understand the target market and competitors. It will take the assistance from government, trade associations and other public institutions, which will support the organization in generating revenues and increasing awareness about waste management and minimization (Scarborough, 2015). It will collect the different information from industry reports, Brunei industries’ reports, past records and figures, statistics. These sources will assist Green Planet to understand Brunei’s natural environment and emerging environmental issues.
Green Planet will implement an effective pricing strategy, which will assist the enterprise in attracting more people and funds towards its services for waste minimization and management. During initial days, the organization will execute penetration pricing strategy, under which it will offer comparatively lower prices for its services, so that it can entice the people away from leading competitors. After that, the organization will set the right price, so that it can achieve funds to attain its social purpose (Thi, Kumar, & Lin, 2015). By the use of pricing penetration, Green Planet will be able to create a significant customer base, and then it should increase the prices. It will assist the organization in covering larger market share over its leading competitors, which are already involved in identical services.
Business Model canvas is a business model, which is implemented by an organization to generate revenues and profits. It is a significant tool, which indicates that how a firm develops, offers and attains the value by communicating different factors of a new business venture. For Green Planet, this is one of the most appropriate business models, as it is good for social and small business enterprises. Green Planet is establishing its business in Brunei to deal with the issue of wastage. This wastage includes all types, like; food wastage, paper and other wastage. The enterprise will offer its services by implementing effective pricing and cost strategies. It will work for the benefits and interest of people and generate its profits (Muhtaroglu, Demir, Obali, & Girgin, 2013). This organization will not only focus on making profits but also on implementing the changes to society or community with the profits and revenues, which they will be making in the future.
Environmental and Economic Well-Being of Brunei
The following table incorporates the business model canvas for a Brunei based new social enterprise, i.e. Green Planet (Osterwalder & Pigneur, 2010). It includes 9 building blocks of the business model and these blocks are described below;
· Public Institutions
· Local institutions and organizations
· Encouraging people to become aware about waste minimization
· Promoting conservation and environmental education
· Taking initiatives for reducing different wastages, food, paper, plastic etc.
· Protecting natural resources, environment and climate in Brunei
· Use of modern and advanced technology
· Implementation of effective strategies and environmental practices
· Resolving the issue related to food and other wastage in Brunei
· Implementation of required changes in the community and natural environment
· Use of differentiation strategy
· Personal contact with community people
· Use of innovative technique
· Implementation of best practices for environment protection
· Service delivery through mobile app and platform
· Involvement of community people
· Ensuring the people for improving the lives of people
· Population of Brunei
· Environment conscious people
· Regional supermarkets
· Educational institutions
· Hardworking volunteers
· Technology sources
· Funds from government, public institutions and public
· Mobile app and website of Green Planet
· Social media promotional campaigns
· Social media networking sites
· Promotion and Advertisements
· E-mail marketing
· Events and sponsorships
· Mobile application and website developers
· Advertising and marketing costs
· Costs on purchasing assets
· Technology costs
· Administrative expenses
· Promotional events and campaigns
· Salaries to volunteers
· Expenses on communication with supermarkets and other stores
· Government funds
· Grants and subsidies
· Trading activities
· Others, like; in-kind contributions
· Revenue generation from customer segment
This is one of the most important blocks of business model canvas. For developing business model, it is very essential to identify the customers, which an organization will attempt to serve by its products and services. For Green Planet, the major target customers are women, disadvantaged people in Brunei, supermarkets and regional institutions. This new venture is going to target the entire population of Brunei to make them free from different types of wastage. The organization will target the people, who are unable to manage wastage of food, paper, plastic and others (Norjidi, 2017).
Value proposition of an organization is a framework that includes all the products and services, which are provided by that firm to satisfy the needs of customer segments. There are various components, through which it can create value to the target audiences, such as; brand, effective pricing, exclusiveness, brand recognition etc. The value proposition of Green Planet will be popular in the country as it is working to resolve a social issue by developing a social mission. It will focus on reducing different wastage by adopting distinct techniques and environmental practices. It will involve the local people of Brunei and encourage them towards wastage minimization and environment protection (Okeugo, 2015).
Distribution channels are the ways, through which Green Planet will communicate its value proposition to its customer segments. Through these channels, the organization will offer its services to the people. Green Planet will use different online sources, social networking sites, official website, mobile application and some physical channels. These channels will assist the organization in approaching its potential customers (Popov & Roosenboom, 2013).
For an organization, it is significant to develop better and effective relationships. This block of business model canvas indicates the level of relationship with target customers. As Green Planet is a new social enterprise in Brunei, so it has to give extra efforts to develop customer relationships. It will conduct events and promotional campaigns, which will assist it in connecting with customers personally. It will involve them in the process of waste minimization and state its benefits to their community and lives.
These are the ways, through which a firm generates income and revenues by offering its services to potential customers. As a social entrepreneur, Green Planet will generate the revenue from different sources, like; government funds, grants and subsidies, sponsorships, donations, trading activities and others, like; in-kind contributions (Trivedi, 2010). The target market for this enterprise is wide, so profit and revenue generation will be better than other industry organizations. So, it will be beneficial for the organization to establish this enterprise in Brunei.
Importance of Social Enterprises
Key activities are the major activities that are performed in applying the value proposition and core business processes of company. Key activities of Green Planet include promoting the education for waste management and environmental protection in Brunei. The organization aims to make changes and improvement in the community of Brunei Darussalam. It will take initiatives for managing the wastage of food, vegetables and other products from supermarkets. It will earn the revenues by offering social services and accomplishing its social mission and objectives.
For an organization, key resources are the resources, which it uses for developing communication and value among its customers. The major sources at Green Planet are technology sources, effective human resources, volunteers and funds received from government and other public institutions. It will manage its human resources effectively as they are the major contributor to the success of Green Planet’s practices.
The key partners of Green Planet are government, public institutions, supplier, vendors and local institutions. In addition to this, domestic firms can assist this social enterprise to reduce waste materials (Stevens, Moray, & Bruneel, 2015). These are the key strategic partners, with whom this social enterprise will create partnerships for delivering its services in Brunei. By this, it will be able to resolve the issue related wastage.
Cost structure of a company refers to the monetary concerns while operating business under different business models. At Green Planet, the major costs include advertising and promotional costs, administrative expenses, cost of mobile application and website developers, cost on purchasing assets, events and campaigns, technology costs etc. Thus, the cost structure of Green Planet includes different types of costs and expenses, which it will spend for attaining its social mission in Brunei (Vickers, 2010).
From the above analysis, it can be concluded that social enterprise can deal with the issues in country, which cannot be handled by the state government. For resolving the issue of wastage, the social entrepreneur is going to introduce a new social enterprise, i.e. Green Planet. The report includes different aspects about the services of Green Planet and its target market. It can be stated that organization will work to resolve the social issue and improve the lives of people in Brunei. Thus, it can be resulted that social enterprises work for the social benefits rather than revenue generation. These organizations aim to operate their services in interests of others. In Brunei, Green Planet will provide its services to reduce the wastage and generate revenues. The business model canvas includes all the elements, which are required to deliver the organization’s value proposition and services.
Initiatives by Green Planet
There may be some challenges, which can be faced by a social entrepreneur while introducing a social enterprise in any country. One of the major challenges is that organization needs to comply with the domestic laws and regulations of that country. It needs to conduct a market research to understand them. Moreover, they may face the cultural issues in country. So, organization should give a proper training to the volunteers and employees before establishing the social enterprise.
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