Bus412: Development Analysis Essay

2579 Words Jan 7th, 2015 11 Pages
Development Analysis Two Mini Cases

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21 June 2012

Final Project: Development Analysis Two Mini Case Studies
DeVry University Professor Mozinski, BUS412 Business Policy

Development Analysis Two Mini Cases

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Mini Case 1: Bikes for the World (BfW) Challenge or Problem: The Bikes for the World organization was formed to offer valid solutions to the transportation problems facing the poor around the world. Lack of affordable and eco-friendly transportation system led founder Keith Oberg to create BfW. Oberg states he did so in order to solve two problems: to help address the developing world’s lack of affordable, eco-friendly transportation, and to help find a better use for the glut of unwanted bikes in the United States
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The problem was so severe that the ongoing donations could not revive the efforts of the organization to reduce the number of unwanted bikes in the American market. Response: In order to curb the overwhelming problem facing the BfW, Oberg saw the need to do something that was described as “counterintuitive, but effective;” charging donors $10 per bicycle to offset prepping and shipping costs (Thompson, 2010). The idea proved effective as it led to the accumulation of a large amount of funds to facilitate the plans and activities of the organization. The idea allowed BfW to attract better quality donations, as those looking to unload clunkers were reluctant to pay. Additionally, the program led to increase in the level of revenue to the organization. “The higher-quality bikes gave BfW the bargaining power to charge small fees to the overseas partners who received the shipments. Not only did this provide revenue, but it helped assure that the bikes would be put to good use. In the past, overseas groups who didn’t pay for shipments would sometimes abandon containers that were held up in customs, rather than shelling out for port storage” (Thompson, 2010). Results: The best indication of the successful nature of the response program is the increment in demand for the bikes. Overseas agents continue to demand bikes from the organization despite having to pay the cost of shipping. For

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