6) Fair Trade Products Private Limited Products Private Ltd is a company that is based on the model to provide the maximum benefits of the trade activities to the original farmer or producer such as Coffee growers in Africa, Wheat grower in Asia and Cocoa growers in Middle East. It aims to reduce the role of brands and middle men in the process. Usually, these brands and middlemen get away with the bulk of the profits leaving very little profits and margin for the original farmers and producers of the goods and services who have contributed to the production process. This situation is being following everywhere in the capitalist world, and little is being done for the Welfare of these farmers and producers who remained poor despite providing the world with delicacies and exotic items. These exotic items could be sold at very good prices in the foreign and local market with bulk of the revenue retained for the farmers producing it or manufacturer making it through their physical and mental labor.
The four main factors that are going to contribute to the success of Fair Trade Products Private Limited are its insistence to provide better and increased profits to these farmers to help them and improve their standard of living.. It is also trying to contribute to their growth by improving their production and farming methods. These are basic points of why Fair Trade Products Private Limited has started its operations, and these are going to add value to the business of the company. They may look very unprofitable, but the main aim of the company should be focusing on volume than huge margins to do well. The company has potential to do well because today’s age is digital age, and awareness is prevalent. Since, the cause of Fair Trade Products Private Limited is noble, there are chances that people will support the company. They will choose to buy from this company rather than big brands. The value proposition of the company is to help the farmers and manufacturers. It is believed that farmers are one of the most disadvantaged professions in today’s modern world. The reason behind this is a fact that big brand and middlemen get bulk of the profit. Farmers and manufacturers are paid very little despite the fact that they contribute most to the production and selling process.
The company should help the customer/stakeholders by providing them high- quality goods at low price. It means reducing the role of middlemen in the process. Through the reduction of the margin of middlemen and brands, the company will benefit the original producer by giving them the bulk of the profits. It means that the profit will reach the most disadvantaged segment, and the benefit of the profits will be greater than if it is held in the hands of wealthy investors, businesses, brands and middlemen. Secondly, Fair Trade Products Private Limited Private Limited is going to use training and growth sessions to educate these farmers on modern production and farming techniques. This will increase the yield and will reduce the costs further meaning that more profit will be available for the farmer and other disadvantaged segments of the society. Similarly, the company will try to reduce the time it is taken by the products and farm produce to first to go middlemen and companies and then to the final consumers. By directly supplying the consumers with the product, a lot of time will be saved, and the process cycle will be reduced. Similarly, Fair Trade Products Private Limited Private Limited is going to help the farmers and producers to use ISO and Quality Management practices in their processes. They are going to further improve the quality and reduce the wastage from the production and farming processes and this will again increase the profitability of farming and production processes. All of this will make the process efficient and more profitable. Although obtaining an ISO for farming and manufacturing will be an expensive process and many farmers and manufacturers may hesitate in investing in it, but once this is done it will be very beneficial for the company. The company could help the farmers and manufacturer to pay the fee and other charges of ISO certification and can later deduct it from the purchases it made from these farmers and manufacturers. All of this will help the farmers and producers to reduce the cost and enjoy economies of scales meaning further lower prices for the final consumers. It will allow both the farmers and producers along with the company to earn bigger profits and hence the financial perspective of the company will be realized. The company is most likely to be a success if all factors identified in the balanced scorecard are followed with complete adherence to the measure identified in it.
References:
Hoffman, B. (2012). Can Technology Help Farmers Adapt to Climate Change?. [online] Forbes.
Available at: http://www.forbes.com/sites/bethhoffman/2012/03/05/can-technology-help-farmers-adapt-to-climate-change/2/ [Accessed 28 Oct. 2014].
Kaplan, R. and Norton, D. (n.d.). The balanced scorecard.
Lipsey, R. and Chrystal, K. (2007). Economics. Oxford: Oxford University Press.
