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FEEDING THE WORLD’S POOR PROFITABILY

FEEDING THE WORLD’S POOR PROFITABILY. SUSTAINABILITY AND SOCIAL RESPONSIBILITY. BAD ASSUMPTIONS. The poor have no money The poor only purchase items for basic need The poor do not save for a rainy day – they get what they can Goods that are sold are incredibly cheap

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FEEDING THE WORLD’S POOR PROFITABILY

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  1. FEEDING THE WORLD’S POOR PROFITABILY SUSTAINABILITY AND SOCIAL RESPONSIBILITY

  2. BAD ASSUMPTIONS • The poor have no money • The poor only purchase items for basic need • The poor do not save for a rainy day – they get what they can • Goods that are sold are incredibly cheap • Efficient Distribution channels are not possible • BOP’s cannot use technology • MNE’s exploit the poor through higher prices

  3. WHAT DOES THE MNE GAIN? New market growth and possible brand expansion Helps in the development of new technologies Changes the financial model (ROCE) Innovation transfer back home and to other countries Expands your product line Provides for remote services

  4. WHAT SHOULD MNE’S DO? Send young potential executives to BOP’s Establish R & D centers in LDC’s Establish business development task force Reach out to other companies and NGO’s Use BOP markets for employees development Change business “as usual” mindset.

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