Change for Change as a Business Idea - Case Study Example

TITLE: Critical Evaluation and Development of Business Proposal Student’s Name: Institutional Affiliation: Instructors Name: Date Introduction Innovation in business is important in bridging the gap between the rich and the poor. Change for Change is a business idea that will help in collection of money for charity. The idea is set to be implemented through a collaborative relationship with banking institutions. According to this idea, the banking institutions will work hand in hand with companies issuing credit cards. This will facilitate collection of funds as well as assisting the institutions in implementing the objectives of their Corporate Social Responsibility. Critical Analysis of the Business Idea The business idea is based on the belief that the small change obtained from “rounding off” of purchases at close margin of 2 cents can be optimized to develop changes in the community. Though the impression on the idea may seem of less value, the idea is technically workable. Strengths of the Business Idea It provides a clear and sound roadmap of how the idea is set to benefit the disadvantaged individuals. Therefore, successful implementation of the idea will help greatly in solving problems associated with poverty in charitable institutions. Since the people (customers) are the main economic builders, there is high technical feasibility of the idea to empower those individuals living below the poverty line by giving the capital. The capital helps them in starting their independent income generating projects. High profit returns are also expected on the side of customers and the banking institutions. Improvements to the Original Idea The idea can’t entirely eliminate the wicked problem. This is due to the fact that there is some likelihood of development of reliance on donations. To improve on the idea, incentives should be provide to those making purchases using the Change for Change cards. Such incentives could be inform of tangible gifts, cash and even sponsored trips. By giving such incentives, more and more people will be motivated to acquire the Change for Change cards. Also, cooperation with large retail and wholesale outlets like supermarkets increase the customer base. Large volumes of goods are sold in such stores hence the use of Change for Change card in supermarkets implies greater donations will be realized. Government agencies should be involved in formulation of decisions governing donations and charity. Policies should be set in a way that specifies a certain percentage of income that must be donated to charity. This means that for every income earned by every person, the government impose tax on it and the money donated to charity. Such improvement should be made compulsory through legislations and government Acts. The improvements boost the originality and feasibility of the business proposal because the quantity of the contributions will increase thus minimizing the effect of poverty. Justification for the Recommendations In most cases, business proposals are written down but they rarely contribute much donation as expected. They are normally set to satisfy the local society and the customers and not to solve the prevailing problem in the community. To satisfy the corporate social responsibility, business enterprises are currently incorporating the power of combining social marketing and charitable purpose. By engaging in social charity activities, the company is able to build its profile in the public sphere, hence pulling more customers. The strategy is of great importance as it maximizes promotional marketing as a way of promoting public relations. There is no doubt that the proposed improvements to the idea will benefit people and the planet by facilitating sustainable investment through creation of good social responsibility and appropriate utilization of corporate assets. As seen from a country like the United States of America, who has successfully implemented legislations concerning taxation and contributions to charity, the citizens are more than willing to contribute to charity because they are certain that they are improving their own social welfare by donating. That is why large foundations, companies and individual people are contributed to social charity. Implementing the improvements will help reduce the disadvantages associated with the original idea. It will also ensure that the idea is original and easy to implement (Duncan 2010). Also, the improvements put the business idea on a better position that can manoeuvre through the competitive markets. It is a conscious choice to make improvements in order to make the idea steer on an upward direction. The proposed improvements will assist in achieving the highest form of impact marketing. This is because it is relatively easy for a business to waste a lot of monetary resources through ineffective marketing. According to Euro Rscg Worldwide (2011), the customers are the most essential art of all business entities. The proposed improvement will benefit people and the planet by offering easy and cheap customer services, hence encouraging entry of new customers into the business venture. As a result, the quantity of purchases will increase hence increase in the contributions raised for charity. A prosperous business idea don not focus only on the needs of its customers. Rather, it aims at the impending tends which are likely to happen in the future (Hougaard 2005). For this case, modification of the idea will facilitate prediction of the level of monetary requirements that needs to be allocated to charity. This allows the business to be sustainable even during harsh economic times. The changes will also facilitate flexibility of business to the changing market forces. Conclusion In conclusion, a good business idea does not only consider profit making in its operations. Instead, it should incorporate the principles of good corporate social responsibility and governance. It should be one that is easy to implement without causing any difficulties and unprecedented financial implications. If successfully implemented, the improved version of the business idea can be the best for eradicating poverty, which is not only a disgrace to the community but also an annoying phenomenon. The situation is needs to be suppressed by all means and that the community should be empowered so as to break the cycles of poverty. The only way to break the poverty cycles is by helping those living in abject poverty for instance children afflicted with this misfortune. References Bangs, D. 1996. Smart steps to smart choices: testing your business idea. Chicago, Ill, Upstart Pub. Co. Boynton, A. & Bole, W. 2011. The idea hunter how to find the best ideas and make them happen.San Francisco, CA, Jossey-Bass. http://www.books24x7.com/marc.asp?bookid=41677. Duncan, K. 2010. Business greatest hits: a master class in modern business ideas. London, A. & C. Black. Euro Rscg Worldwide. 2011. The Creative Business Idea book. New York, Smallwood & Stewart. Hougaard, S. 2005. The business idea the early stages of entrepreneurship. Berlin, Springer. http://site.ebrary.com/id/10129959. Kyle, T. 2008. 400 latest & greatest small business ideas from around the world. Borehamwood, United Kingdom, WorldsBiggestBooks.com Langdon, K. 2003. The 100 greatest business ideas of all time. Oxford, Capstone . http://search.ebscohost.com/login.aspx?direct=true&scope=site&db=nlebk&db=nlabk& N=103 190. Mccreadie, K. & Shipside, S. 2009. Strategy power plays winning business ideas from the world's greatest strategic minds. Oxford, U.K., Infinite Ideas Ltd. http://www.books24x7.com/marc.asp?bookid=32902. Price, S. 1967. Business ideas: how to create and present them. New York, Harper & Row. Witham, P. 2011. Home-based businesses that you can start today: business ideas for the home- based entrepreneur. Lexington. Read More