ÖZYEĞIN UNIVERSITY

MKTG 317\ A: Serving the World’s Poor,

Profitably Assignment # 4 Hypothetical Scenario with Benefits and Challenges: “Aybush Company as an MNC, Refugees as a BOP”

Student Name: Ayberk Tosunoğlu

Started Date: 4/15/2016

Delivered Date: 4/28/2016

Case Related to Assignment #4 “by C.K. Prahalad and Allen Hammond”

https://cb.hbsp.harvard.edu/cbmp/pl/46483639/46484090/b36504e9d11c180cdb076166de9fc893

Question Related The Assignment #4:

“To create a hypothetical scenario in which a company targets the poor and markets to them.

In your essay, discuss the benefits as well as the challenges of this approach for both the

company and the customer (i.e., the poor). What is good about this strategy for both parties?

What could go wrong? 2 pages will be enough.”

Introduction

From now on in the social marketing lecture inculcate different variations of the social

marketing forms into us. In the all phases of the social marketing progress, who are at the top

of the pyramid in terms of knowledge or their abilities, invest their times, money and also

creativity for bottom of the pyramid. These all movements are unsuspectingly occurred for

humanity. Based on the philanthropy, Corporate social responsibility is converted into the

“cause-related marketing” for the all companies’ help as well as alternative and suitable way

to convey their brands for publics. In terms of the capitalist approach, this non-profit

organization which is arranged by global companies shouldn’t be perceived as “advertising”

or “creating nice mask for them”. When we look at the basic patterns of the capitalism

movement including “demand and supplies”, it is reasonable to draw their attention to

“lucrative territories” more demands for global companies. Of course, it also brings potential

threats of the potential suppliers or rivals for global companies. However this process should

be investigated, reinterpreted and researched by prioritizing to raise their life standard of third

world countries or people in the bottom of the pyramid. At this point, it brings us “NGO”

mind including better education services, food services and so on. for these people. All these

movements may be seem to be served for unethical results but it doesn’t mean prepare

“customer publics”. This movement is “hope” to be get involved NGO minds in the global

corporations or MNC (Multinational Companies”. If this NGO movements and also design

thinking and similar approaches are improved on that way, some approaches and thoughts can

be broaden for tomorrow. If we like some people criticize or try to find something to compel

multinational companies, this approach is possible to be destroyed and even ignored. That’s

why “Serving the World’s Poor, Profitably” case is so honest to talk about the behind of the

MNC helping and benefits for humanity. Under the win- win strategy mind, author is look

like “person” who tries to persuade MNC or big boss to invest their monetary and non-

monetary values in humanity.

About the Case

This report about the MNC and people regarded as in BOP potential of the emerging market

by C.K.Prahalad and Allen Hammond try to refute the assumptions and barriers surrounded

stereotyped bias behind the lucrative potential in emerging markets and BOP (bottom of the

pyramid people) by touching upon the creative solutions and some deficit that could be

possible to be fulfilled with win-win strategies. Actually, this report make reader’s feel

investor to need to be persuaded and want to change their mind and refute some stereotyped.

At this point the case includes three basic parts, firstly started with “stereotyped assumptions

about emerging markets and BOP and then try to change these perspectives with examples

and then different shapes of strategies for BOP market. In the case firstly it is necessary to

touch upon some of the wrong assumptions by showing enormous potential for emerging

markets and poor people. An impressive one of these assumptions is “Poor have no money

and also they have no money to spend for luxury”. In this perspective, poor people in the

emerging market or rural areas are regarded as customers, thereby; it is no sense to enrty in

the market because of no demand for your products. However article clarifies some deficit of

their life styles. When we look at their life standard, their needs are normally basic needs but

also they are willing to spend their money for television telephone or so on. Namely, these

types of devices or outfits are so luxury for this market people as you assumed for emerging

market or BOP. At this point article persuade us to demonstrate that if this emerging market

are enhanced with more developed devices or some infrastructures for customers via NGO or

helping to government or governance support based templates which are ease to be provided

to customer with services and products, more and more customer can contribute to market

with more demands in the emerging market and also being higher life standard than before.

Another point about emerging market, they are cheaper supply chain cost and importance of

the first entry into the emerging market. Of course, it sounds “unethical implementation in the

Chain supply chain because of low labor cost” by MNC. However this arrangement is still

discussed. Please it is required to contemplate why the Chain regarded as low labor cost

beacause exchange rate or currency value of the country economy is lower than dollar and

people living in the China can sustain their lives with the wage which many people criticizes

about low cost. However people or labor in the country is satisfied and this is enough for

them. Meanwhile if working conditions or atmosphere in the working area is criticized, it is

totally ethical and true investigation but it is little related with this country policy or politics

toward labor especially China which is still conservative to share some info with world.

Anyway, it is not our subject but this subject highly ingredient of the bias which caused the

criticizing about such a low cost of supply chain. With low cost of the supply chain in the

emerging market MNC can easily exceed their products and services to many potential

customers and also they will be joint venture with government about template which

customers can benefits to buy products or services. By doing so, MNC create brand values for

customers and bring impressive brand perception in their mind. It is necessary to show

example from the article is that; Rural areas in the Bangladesh have critical barrier because of

the lack of access and communication in order to no buying power. However thanks to

innovation and refuting conventional wisdom, GSM operator provide advanced technology as

telephone using to these poor rural people and they were willing to learn usage of the phone.

And then they learned. Thereafter they contribute into the emerging market as demand power

by leaned this technology. Another example is about farmers in the El Salvador they learn

wireless technology and then them successes to negotiate to sell their crops via internet to

more customer than local places.

Briefly, in the article so movement of the nice circulation around win-win strategy for three

dimensions which are government, people and MNCs in all sectors. By highlighting top-line

growth, innovation and reducing cost, article refute all conventional wisdom and some bias

claim that cheapest potential of the technology usage could be possible to broaden horizons

for emerging markets or untapped people or territories.

Finally, I decide to look at my country, which strives with too many problems. In my

country, Turkey, nowadays, is hot topic in the worlds’ perspectives because of the refuges

crisis for EU. After EU and Turkey bargaining about the Turkey profit with refuges coming

back Turkey, Turkey accepts refugees back. Thereafter many discussions are shaped around

the how these refugees settled in the Turkey. During the discussion I as a citizen in the

Turkey realized another crisis about Turkey agricultural industries. Many people go to city

form the farms with excuses of the less profitable trades of the agricultures because of the

some political dissonance with some countries which were nice trade relation about Turkey

agricultural products. That’s mean less customers has less demands for Turkish products. At

this point in order to mitigate this types of the negative externalities, MNC can handled this

Explanation about Matrix Template

crisis by using educated farmers. These farmers will be refugees who don’t expect too live

with high life standard like city life. For them it is enough to gain their life and sustain rest of

life for their children. Namely. my scenario will be enhanced with patterns which are deficit

of the our economy, refugees and people from farms to city life around the win-win strategy.

Let’s look at the Scenario

My hypothetical scenario in which an imaginary company “Aybush” , selling agricultural

products company and its targets the poor and markets to them is established under the SWOT

confrontation matrix system as you see explanation about why SWOT confrontation system

is used to clarify all challenges and targets beyond the sentences.

By looking at the matrix, it is advantage to look at the benefits and challenges on the only one tables with Swot

confrontation matrix. Thereby, it is clear to scrutinize all benefits and challenges as internal approaches which are

strengths and weaknesses; external approaches which are opportunities and threats on the SWOT confrontation matrix. Of

course, this matrix system used for our subject, can be incompatible with under normative usages and subjects of SWOT

matrix but it is not the case because if this function meet our needs of the subjects, it doesn’t matter whether using on

true way or wrong way. All things are relative with relation between what wee needs and how our system answers our

questions. That’s why it is necessary to name some dynamics of the patterns on the SWOT confrontation matrix. In the

perspective of the “Aybush” agricultural products multinational company, this analysis external pattern represents of

governments’ and local citizens’ opportunity and sociological threats in location which the project implemented. Internal

factors are related more with our multinational company’s benefits and challenges. All proposition on the top of territories

which are aggregate of two results of the internal and external aims, make us to contemplate improved perceptions for all

results under the many dimensions.

As you see all aims in terms of benefits and challenges, it is necessary to look at the our

project insights and interpretation of the matrix. Well, it is necessary to start with my brief

interpretation about Turkey competing, current situation “Untapped people and decision on

the Lucrative natural advantages”. At this point this deficit of the industry can be

compensated with many dynamics. Of course it is not economy lesson, thus, we will

investigate parts of the benefits and challenges of the MNC and poor people, refugees and

also local people who suffering from this conditions. The system which aggregate of refugees

and well educated people in the agriculture industries can be summarized that refugees will

be settled into all agricultural places around the Turkey. These people will be educated and

imply importance of the agriculture forTurkey into refugees. Thereafter they will be settled

and give them houses which will be giving by government as depth. Like hiring house theswe

people will work in the farm under the MNC (Aybush) company brand. As long as they

grown many vegetables and fruits, they pay hiring to government. After determined years,

they will be citizens in the Turkey. Meanwhile, thanks to MNC attempts bring them

technology and innovative solutions for the agricultural developments. Moreover it is possible

to establish organized institutes or communities and report all improvements of the agriculture

industry in the Turkey. These institutes can be converted into the university library or maybe

at the future directly university, agriculture based literature and theorizing some information.

As it was stated before, this investment for long term so it is necessary to be patient to see

results of the investments. At the end of this project established by government and MNC

joint ventures gain values to Aybush brand ( MNC) and also potential work force for

governments. Meanwhile local people in the rural areas can also benefits from this

development and automatically like in the Holland, agriculture industry in the Turkey gain

deserving potential place in the international agriculture market with highly educated people.

After summarizing scenario movements, it will be more understandable to scrutinize part by

part of the organization. As you see in the matrix, government support and perspectives as

external factors for MNC can be evaluated around the current situation for the Turkey. In this

part it is obvious to mention that by bringing responsibilities from certain country (Turkey),

MNC aims to prevent devastating results agains trade because of the any political conflicts

between countries. MNC generally sustain their business independently, that’s why any

political issues between two countries never influence them. At this point, indirectly Turkey

makes a profit throughout the MNC company trades with foreign countries which are not well

relationship with Turkey. End of the story, citizens from other country and citizens from

Turkey both side keep smiling with the trade. Apart from governmental and poltical solutions,

MNC( Aybush company) ensure monetary and non-monetary benefits for the refugees and

also provide them to educate their children safety for good futures. Also socio cultural

conflicts can be eliminated by using the nice strategy in that area. For instance, it is required

to establish technology and institution in that area. By doing so, local farmers can learn many

things with refugees farmers. This development can enhance the farm locations and markets

of the farm settlements. More and more family will settle in the farm and rural areas. After all

located finished, some shop centers or some different companies and members in the sector

look at that areas. Because as the article stated before, in the rural area or emerging market

place, innovation and new products are attracted easily by customers. This attempts open new

market in the Turkey for any companies. That’s why they will compete with each other to

entry firstly in that rural areas or markets. Moreover as you see in the table of portfolio of the

MNC products ( Table 1 ). Many fresh juices deliver around the globe and countries which is

branded with our natural confidences.

Based on the rural areas features and farming places and around the some basic rules for the

agricultural places, immigrant and local farmers will establish new meaning of the rural

places as much better than city life “more natural and sustainable life”. Namely, my opinion,

or target for these places, will be ruled by farmers and local farmers after 10 years “…. In this

village car is not allowed only bicycles, electronic bus and devices can driving in there…”. It

is possible when this development in the matrix system succeeded.

Of course, this achievement can be possible with complementary part which is strong

community. Government our supporters but it is not enough for MNC to pursue target. Some

active role player should be existed in this long run period with long term investment. This

long term friends on the way are supply chain companies. That’s a little problem with in-

house necessary additional resources for agriculture but it can follow different strategy. This

is kind of developing circulation. Namely, in-house department in MNC can settled with

MNC( Aybush company) and establish community and this community open for ever supply

chain participant about the subject including fertilizers, herbal medicine and so on. Some

companies which are willing to improve themselves become member in this community and

this community can be educated for better supply chain instrument for the agriculture. At this

period of this project we can easily to see new improvement and innovation in the agriculture

industry. As it was stated first page, “not feed people teach people how to feed themselves”.

Under the core meaning of this sentence, we create topline market in this part of the

industry and then this long term investment create innovative opportunity for the customers

and suppliers. In addition to all these developments, we reduce cost for the customers with

more international demands around the globe.

Table 1

Table of SWOT Confrontation M

atrix