Managing Green Business Model Transformations Essay

Question:

Discuss about the Managing Green Business Model Transformations.

Answer:

Introduction:

A business model refer to how a business generates; capture values and delivers in the economic, cultural, and social context. AIESEC is the world's largest non-profit youth-run organization and it makes available the leadership development, the cross-cultural worldwide internship and the volunteer exchange experiences globally to young people (Sommer, 2012). The network of the AIESEC consists of 70,000 members in approximately 127 countries and territories. The business model of AIESEC shows how the organization works (AIESEC, 2017).

AIESEC is a non-governmental organization in consultative status with the United Nations social and economic council. This organization is united with the UN DPI, which is a member of ICMYO and it is acknowledged by UNESCO.

The AIESEC business model consists of value proposition, customer segments, revenue streams, key resources, channels, key activities, cost structure, customer relationship, and Key partnership.

The customer segment of the organization includes the young people and enablers, the enablers include the global entrepreneurs, volunteer and the talent who are willing to work with the not-for-profit organization. The hosting organization opens the opportunity for participants in the exchange programs. The motive behind the programs is to align the organizational values with the customer segment.

The value proposition of the company includes the leadership development model. The company is providing the leadership experiences to the young people and enabler. Both enabler and youth work together to develop leadership skills and qualities (AIESEC, 2016). The AIESEC generate talented participants for organization's who work as an enabler with the NPO. After the value proposition, the company takes help from the channels to promote the products and the services to grab the attention of youth. The company uses different channels such as social media portals, sites, and websites to enhance the relationship with the youth (AIESEC, 2016).

The company manages the relationship with the young people and enablers. The company believes in managing the flow of young people and enablers considering all the experiences. During these experiences company will perform the key activities of the business; these key activities are the minimum standard that helps in accomplishing all programs to achieve the high-quality experiences (AIESEC, 2016). The key activity of the company is to develop the leadership skills among the young people and to provide the satisfaction that facilitates the young people to continue the programs with NPO (AIESEC, 2016). To accomplish the key activities the company have to link resources and these linked resources are known as the key resources.

The key resources that company maintains include membership (membership of young people and enablers with the company) and extra opportunity. NPO provides the membership to the people who volunteer themselves. To conduct the whole process the company needs the key partnership and the initial partner is funding partner as this partner is going to invest in the project of the organization, operations and ultimately help the company in accomplishing the whole process. The funding market is helping the company to generate the opportunities. Another partner is lead partner; this partner includes all the stakeholders that help the company in generating tools and the leadership qualities. The stakeholders help youth in accessing experiences and also provide support to the organization (AIESEC, 2016). Then there is host family partner who opens their doors and listening to the youth. Ultimately the partners help in enhancing the experiences of the people who are connected with the NPO.

At the end, all the business model activities need to be stable if a company wants to achieve the strategic goals every year. This shows that there is a balance between the revenue stream and the cost stream of the company. The revenue comes from the EP fee which is paid by the young people after taking the experiences with the company and another source of revenue is partnership revenue. This revenue comes either with the enablers or the funding partners who invest in companies projects (AIESEC, 2016). These revenues are used by the company to cover the cost and the cost of the organization comprises of fixed cost and the variable cost. The fixed cost contains the amount of the assets and the variable cost includes the operational education expenses and the secretariat expenses (this includes the taxes and extra cost).

References

AIESEC, 2016, Leadership Centred AIESEC, Viewed on 23rd November 2017,

Sommer, A., 2011412. Managing green business model transformations. Springer Science & Business Media.

AIESEC, 2016, Global Finance Summit Output, Viewed on 23rd November 2017,

AIESEC, 2016, It’s all connected, Viewed on 23rd November 2017,

AIESEC, 2016, Our Business Model, Viewed on 23rd November 2017,

AIESEC, 2017, So, What is AIESEC?, Viewed on 23rd November 2017,

AIESEC, 2016, Pull Customer Flow, Viewed on 23rd November 2017,

AIESEC, 2016, Customer Flow In Aiesec, Viewed on 23rd November 2017,

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