World Bicycle Relief Case Solution
This 10-year linear programming model is derived to maximize the total profits of the company in the next 10 years, which includes the profits from the number of bikes donated per year and number of bikes produced and sold for profit per year. The total profit of the company is3,140,732 dollars which is an incremental profit if the company expands its business to a new country.
Analysis and Optimal Solution
The first decision is to choose the possible way of expanding the country, for which there are three types:
- Type 1: Countries with a long history of cycling culture, where WBR and BB can immediately see satisfactory demand (such as: the Zambia, Zimbabwe, Kenya and Malawi)
- Type 2: A country with a strong culture and high demand for bicycles, but facing significant challenges in terms of governance and economic stability, terrain or obstacles in social enterprise (such as the Democratic Republic of Congo, Somalia and South Sudan)
- Type 3: A country with a long history of cycling culture, where local people do not accept bicycles (not even donated bicycles), and there are no obvious opportunities for social entrepreneurship (such as: the South Africa)
Most of the countries benefiting from the WBR, fall into the first category. If the second category is profitable and accepted; the next decision will be to enter the second and then the third category. Keep in mind the main goal of the organization to donate a large number of bicycles to raise awareness is that the profitability of regional bicycle purchases that use profits to expand the scope of the purchase cycle should be promoted. Is there a need for an extensive research on countries that can develop, if donations are needed?
Will these additional countries help the company in using this particular resource for the primary purpose of achieving independence and livelihoods through cycling energy? Do these bikes improve people’s lives in these countries? If yes, then how so? It is expected to increase education, production, and become an engine for economic and cultural engagement.
This will require basic information. Environmental considerations should also be taken into account, for example: when BB arrives and provides more durable products for the terrain and batteries as well as a guarantee on purchasing.
Action Plan
When formulating an action plan, itneeds to be part of a group that needs to be approached.There are some that need to be facilitated while others are helping with finances and accountability. Once itisfound, there would be a need to develop a plan and come up with innovative ideas to move the project forward. Is it necessary to donate bicycles from the Dominican Republic and other countries in the second category? In the cities of the Dominican Republic, the means of transport are buses, coaches or taxis, scooters and mopeds.
Rural areas residents and tourists are more likely to use bicycles on bike paths. A good way to do this, is to donate bicycles in rural areas, and open a bike rental or shop in tourist areas. Rental companies and shops can fund donations in rural areas. It may not be an ideal market for bike donations, but a good market for shops and rentals. There is a requirement of an immense research that should be carried out in order to find the cheapest option for these two programs.
Once the research is completed, transporting and handing over bicycles to local residents as well as teaching cycling will do the job for the community and it would facilitate the donation process. The idea of opening a store could be a challenge to get into the city, as there are currently operating bicycle stores in the Dominican Republic, so buying and renting WBR around the world will have a positive impact on buying and renting rural communities, so gaining a good reputation from using good marketing tools. These cities can flourish in tourist cities and become new adventures for adventurers.
The benchmark for performance evaluation will be the analysis of nonprofits and profits of the company. These analyzes include the total number of bicycles donated and purchased, as well as the amount of money distributed between nonprofit and for-profit organizations. Reports of financial, operational and asset changes will be required. This includes the cost of assembling, transporting and storing the bicycles.
Conclusion
Finally, in order to broaden the analysis of nonprofits and profits, markets similar to those previously used, need to be found. The company will-need help with donations and some sort of market, to make money for the organization’s nonprofit sector, so that it could count on its business without sponsors and funds from external organizations. For research and information, the company needs a good team to find the data.....................
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