MGMT20132 Innovation and Sustainable Business Discussion 2022

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Running Head: INNOVATION AND SUSTAINABLE BUSINESS
MGMT20132 INNOVATION AND
SUSTAINABLE BUSINESS
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INNOVATION AND SUSTAINABLE BUSINESS
1. Executive Summary
Organizations build and develop their unique value proposition for facilitating marketing
and attracting key persons for their businesses. Organization's focus on sustainability has
emerged and grown tremendously in the recent time period. The current discussion includes a
business model description and value proposition for the business which includes recycling of
excess food to the poor by the establishment of lunch clubs and collecting food using food banks.
The application of business value proposition will enable an organization to test the viable
innovative idea of zero hunger along with good health and well-being that is well suited to
targeted customers of the organization. Ozcare aims at providing a better quality of lives to
people in the community with a focus on human and health services. There is an increasing range
of challenges being faced by the business at the moment. The organization has been catering to a
type of demography in the region, which has undergone a tremendous transformation. The
organization has the capability to deal with uncertainties that might crop in the business
proposition. The plan is financially viable for the organization and can bring tremendous value
addition to the community and society in general. Recycling of food wasted has greater
capability to create impacts on the economy.
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INNOVATION AND SUSTAINABLE BUSINESS
Table of Contents
1. Executive Summary.................................................................................................................2
Table of Figures...............................................................................................................................3
2. Introduction..............................................................................................................................4
3. Discussion................................................................................................................................4
3.1 Business Model Description..................................................................................................4
3.2Value Proposition Development.............................................................................................5
3.3 Business Operations Development........................................................................................6
3.4 Supply Chain Development...................................................................................................6
3.5 Financial Value Capture.........................................................................................................7
3.6 Competitive Advantage..........................................................................................................8
3.7 Strategic Fit............................................................................................................................8
3.8 Identification and assessment of assumptions and uncertainties...........................................9
3.9 Phased development plan to address uncertainties................................................................9
3.10 Selection of innovation tools and techniques.......................................................................9
4. Candid and critical self-analysis.............................................................................................10
5. Conclusion & Recommendations...........................................................................................11
6. References..............................................................................................................................12
7. Appendices.............................................................................................................................14
Table of Figures
Figure 1: Value Proposition House..............................................................................................................5
Figure 2: Vertical Supply Chain Management.............................................................................................7
Figure 3: Competitive Forces Analysis........................................................................................................8
Figure 4: Zone of Strategic Fit.....................................................................................................................9
Figure 5: Value Proposition Canvas..........................................................................................................14
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INNOVATION AND SUSTAINABLE BUSINESS
2. Introduction
Organizations build and develop their unique value proposition for facilitating marketing
and attracting key persons for their businesses (Osterwalder, Pigneur, Oliveira & Ferreira, 2011).
Organization's focus on sustainability has emerged and grown tremendously in the recent time
period. Not-for-profit organizations are making use of the concept of sustainability to create
greater impacts on the community and society. The scope of the current business report deals
with Ozcare which was established for special works of the St Vincent de Paul Society
Queensland (Ozcare, 2019). The organization focuses on serving 30,000 clients through the
support of 400 volunteers and 2750 employees. The current discussion includes a business model
description and value proposition for the business which includes recycling of excess food to the
poor by the establishment of lunch clubs and collecting food using food banks. The application
of business value proposition will enable an organization to test the viable innovative idea of
zero hunger along with good health and well-being that is well suited to targeted customers of
the organization.
3. Discussion
3.1 Business Model Description
Ozcare aims at providing a better quality of lives to people in the community with a focus
on human and health services. There is an increasing range of challenges being faced by the
business at the moment. The organization has been catering to a type of demography in the
region, which has undergone tremendous transformation (Aulet, 2017). The diversity in culture
with age diversity has impended significant challenges for the organization. Though the target
client segment has become diversified the volunteers have remained the same, hence they are
unable to cater to diversified clients or meet their needs. There has been a significant increase in
the number of unnourished children and poor as well. Due to destruction in farming land and
financial resources, people are lacking accessibility to well-nourishing food. There is a
significant lack in nutritional education available with people, which is creating gaps in catering
to the targeted group. Partnering with local markets and marketing activities will enable the
organization to reach its targeted client segment. The organization's key value proposition is
focused upon establishing ‘lunch clubs' in the country to make free food available to the elderly,
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INNOVATION AND SUSTAINABLE BUSINESS
poor and children. The food catered to them will be collected by means of ‘food banks', wherein
the localities will be asked to donate food. The core aim of the current business model is to drive
sustainability for the community and society and create good-health and wellbeing amongst the
targeted clientele group of elderly and children. The innovative model will focus on recycling as
much food as possible so as to create greater benefits for society.
3.2Value Proposition Development
The value proposition development for the business aims at reducing food wasted and to
channelize the same food to the needy. The concept of recycling food might appear to be
traditional in nature but has been used for quite some time now (Osterwalder, Pigneur, Bernarda
& Smith, 2014). According to the Value proposition house, marketers of the organization can
develop brand propositions as given in the figure below. The key value proposition for the
business lies in able to channelize the concept amongst the local residents and creating a food
storage area that can collect food. These food needs to be catered to the poor and needy
especially the children and elderly to reduce as much waste as possible. The key stakeholders of
the business value proposition hence will be local residents in the area and volunteers, who will
be preparing food for the clients of the organization.
Figure 1: Value Proposition House
Source: (Yang, Evans, Vladimirova & Rana, 2017)
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INNOVATION AND SUSTAINABLE BUSINESS
The organization has found that food wasted is a considerable issue in sustainability and
accounts for major greenhouse gases and landfills. To be able to use such food or recycle
competitively will be seen as a value addition to the entire economy. The entire economy can
then emerge as a zero-waste economy. This has the ability to reduce poverty and provide
nutritional values to young children who are left under-nourished. According to the above model,
recycling of food will be the key discriminator of the organization and will provide the benefits
to meet the client's needs (Yang, Evans, Vladimirova & Rana, 2017). This will help position the
brand against competitors in the market.
3.3 Business Operations Development
The key business operation of the organization will comprise of creating a value chain
that maps people who will donate food and then channelizing the same food to the needy.
Developing the sustainable operation model will require assistance from a number of volunteers
who will spread the message regarding the recycling of food. Greater awareness creation of this
concept will enable to increase outreach to neighborhood and get maximum people within reach
such that they can donate food or assists the organization in conducting their business operations
(Bocken, Short, Rana & Evans, 2014). The organization will need to develop several points of
service such that they can easily collect food and cater to poor elderly and children in the area.
Another significant part of the operation will require evaluating the nutrition levels of the elderly
and children. This team will aim at meeting the nutritional gaps of these people and reduce the
same by means of recycled food.
3.4 Supply Chain Development
One of the key operations of the organization is its supply chain development. The
organization will aim to instill vertical supply chain integration as shown in the figure below;
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INNOVATION AND SUSTAINABLE BUSINESS
Figure 2: Vertical Supply Chain Management
Source: (Green Jr, Zelbst, Meacham & Bhadauria, 2012)
The organization will aim to collect food directly from the food producers and provide it
to the client. This will help minimize waste and recycle food with maximum possible efficiency
(Green Jr, Zelbst, Meacham & Bhadauria, 2012). A vertical supply chain management will
provide best practices for creating sustainability within the organization and also outside the
organization.
3.5 Financial Value Capture
The organization will aim at recycling food hence it will be able to operate at
significantly low cost (Bocken, Short, Rana & Evans, 2014). The major organizations that
provide financial assistance to the organization comprised of the government, agencies and other
private donators. The organization will aim at capturing the financial value by recycling food and
storing food in every neighborhood in a fridge such that donators of food are able to place it in
the refrigerator and the malnutrition can easily collect such stored food without hindrance.
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INNOVATION AND SUSTAINABLE BUSINESS
3.6 Competitive Advantage
The organization will operate in a highly competitive manner as compared to other
organization in the market (Iglesias, Ind & Alfaro, 2017). With the sole focus of recycling food,
it will be able to create sustainable efforts in the market. While other firms will require
significant financial assistance to function, this organization will easily be able to function at a
lesser cost.
Figure 3: Competitive Forces Analysis
Source: (E. Dobbs, 2014)
Analyzing the detailed competitive forces operating in the industry according to Porter's
forces reveals that the organization experiences significantly fewer barriers from such forces (E.
Dobbs, 2014). The bargaining powers are not present, though rivalry and substitutes are present,
the organization has a core competency in its operation.
3.7 Strategic Fit
The organization is able to respond to variable demands through its resource availability.
Its volunteers competitively cater to recycled food to the elderly and poor. The strategic fit is
achieved by meeting demands through the recycled foods provided. The figure below depicts a
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Competitive
Forces
Industry
Rivalry
Bargaining
power of
suppliers
Threat
from
substitution
Bargaining
power of
purchaser
Threat
from new
entrant
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INNOVATION AND SUSTAINABLE BUSINESS
zone of strategic fit for the organization, where it is able to respond to its demand with adequate
materials from its (vertically integrated) supply chain.
Figure 4: Zone of Strategic Fit
Source: (Johnson, 2013)
3.8 Identification and assessment of assumptions and uncertainties
The key assumptions in the organization's value proposition are that the neighborhood in
the region will facilitate food recycling. These neighborhoods will recognize the organization's
efforts and contribute to the effectiveness and efficiency of the organization.
The uncertainty that prevails in the current proposition is the inability to reach out to
people who will contribute food and cater to those who are in dire need of such supplies.
3.9 Phased development plan to address uncertainties
A development plan to address the uncertainties will include marketing and advertising
efforts to reach to maximum possible clients in the region. The organization can also conduct a
mass advertising campaign for its efforts to attract potential clients.
3.10 Selection of innovation tools and techniques
The innovative tools and techniques that will be applied for the value proposition
development will comprise of Disciplined Entrepreneurship Canvas, Business model Canvas,
Mind Chart analysis, Pattern Break, Idea Web, Idea Spray, Clean Paper and Smart Mirror. These
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INNOVATION AND SUSTAINABLE BUSINESS
tools applied will enable application and development of the value proposition for the
organization (Van Der Pijl, Lokitz & Solomon, 2016).
4. Candid and critical self-analysis
Developing an innovative and sustainable business idea can be highly critical and requiring prior
experience. While both my assessment has provided me with tremendous learning and
acquisition of skills, they were very different from one another. The first assessment required
knowledge of limited skills and tools knowledge, whereas the second assessment was much more
challenging. The first assessment I tried to be innovative without thinking further regarding the
possible impacts of my choice. I ended up selecting an organization that was not-for-profit.
Selecting a profit for an organization with a vested interest in business growth and innovation
would have eased by task for analyzing efforts of sustainability. However, in the second
assessment, I realized that I had a viable idea that I wanted to add to this innovative proposition.
Hence the concept of zero hunger, good health and wellbeing came to me. I would not rate my
innovative idea highly but I am capable to think under pressure. My strength lies in my ability to
think to innovate when the opportunity arises.
Both the assessment helped me develop my sense of personal innovation. I was able to think out
of the box and aside from traditional thinking. I admire the inquisitiveness that this assessment
created in me. Moreover, the second assessment helped me to explore more models that were not
discussed in class and outside the purview of this module. With this assessment, I have been able
to explore the idea related to sustainability and ways it could possibly create impacts on the
organization. I wanted to represent my ideas in a more innovative and appropriate manner to be
able to express my thoughts and my skills in a capable manner. My strength lies in my capability
to demonstrate my learning skills and knowledge. I was able to meet each and every criterion
provided by my professor in a comprehensive manner. My learning is accompanied by my
insight to apply relevant knowledge in the practical domain. I feel I have successfully been able
to complete and accomplish the criteria's given in marking rubrics for this assessment.
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5. Conclusion & Recommendations
In conclusion, it can be said that the organization's business value proposition has a uniqueness
about it. It has the capability to deal with uncertainties that might crop in the business
proposition. The plan is financially viable for the organization and can bring tremendous value
addition to the community and society in general. Recycling of food wasted has greater
capability to create impacts on the economy. The business can adopt the following
recommendations to further enhance its viability and long term sustainability;
The organization can create a Facebook page for attracting volunteers and other
members to contribute to making the organization a success. Greater awareness
regarding the organization can create a greater impact on the community as well as
society.
The organization can accommodate a value matrix for mapping the success of the
organization. A value-creating matrix can enable the mapping of values against the
benefits generated. This can help the organization stay in track and maintain
appropriate focus.
The organization needs to maintain a competent value chain through vertical
integration. Vertical integration will enable the organization to save its revenues that is
spend on transporting food from one place to another.
The organization needs to enhance its core competency to be able to attract donation
and funds from the government, private organizations and agencies.
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INNOVATION AND SUSTAINABLE BUSINESS
6. References
Aulet, B. (2017). Disciplined entrepreneurship workbook. Canada: John Wiley & Sons.
Bocken, N. M., Short, S. W., Rana, P., & Evans, S. (2014). A literature and practice review to
develop sustainable business model archetypes. Journal of cleaner production, 65, 42-
56. doi: 10.1016/j.jclepro.2013.11.039
E. Dobbs, M. (2014). Guidelines for applying Porter's five forces framework: a set of industry
analysis templates. Competitiveness Review, 24(1), 32-45. doi: 10.1108/CR-06-2013-
0059
Green Jr, K. W., Zelbst, P. J., Meacham, J., & Bhadauria, V. S. (2012). Green supply chain
management practices: impact on performance. Supply Chain Management: An
International Journal, 17(3), 290-305. doi: 10.1108/13598541211227126
Iglesias, O., Ind, N., & Alfaro, M. (2017). The organic view of the brand: A brand value co-
creation model. In Advances in corporate branding (pp. 148-174). Palgrave Macmillan,
London. doi: 10.1057/978-1-352-00008-5_9
Johnson, M. (2013). Critical success factors for B2B e-markets: a strategic fit
perspective. Marketing Intelligence & Planning, 31(4), 337-366. doi:
10.1108/02634501311324843
Osterwalder, A., Pigneur, Y., Bernarda, G., & Smith, A. (2014). Value proposition design: How
to create products and services customers want. Canada: John Wiley & Sons.
Osterwalder, A., Pigneur, Y., Oliveira, M. A. Y., & Ferreira, J. J. P. (2011). Business Model
Generation: A handbook for visionaries, game changers and challengers. African journal
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INNOVATION AND SUSTAINABLE BUSINESS
of business management, 5(7), 22-30, viewed from
<http://www.academicjournals.org/app/webroot/article/article1380791074_Oliveira
%20and%20Ferreira.pdf>
Ozcare. (2019). Ozcare.org.au. Retrieved 25th September 2019, from https://www.ozcare.org.au/
Van Der Pijl, P., Lokitz, J., & Solomon, L. K. (2016). Design a better business: New tools, skills,
and mindset for strategy and innovation. New Jersey: John Wiley & Sons.
Yang, M., Evans, S., Vladimirova, D., & Rana, P. (2017). Value uncaptured perspective for
sustainable business model innovation. Journal of Cleaner Production, 140, 1794-1804.
doi: 10.1016/j.jclepro.2016.07.102
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7. Appendices
Figure 5: Value Proposition Canvas
Source: Author
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