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STRATEGIC MANAGEMENT ASSIGNMENT 1 HONEY CARE AFRICA (A) : DIFFERENT BUSINESS MODEL
1. What are the core elements of Honey Cares business model? How are they linked together? Honey Care Africa is for profit venture that keep its sustainability with triple bottom line philosophy that would create social, environmental and economic value. There are four elements of business model and have to be integrated. The four key elements are customer value proposition, key resources, key process, and profit formula (HBR-2011). In the case of Honey Care Africa the four elements are: A. Customer Value Proposition The fresh local Kenyas honey with high quality standard because its produce from the modern beehives that supporting good quality of honey, and also the good production process in Honey Care Africa. With buying the Honey Care Africa, the customer also help the small farmers to enhance their economy. B. Key Resources First, the partnership with the local farmers and its communities enable the company to have a fresh and good quality of honey supply. Second, Honey Care Africa has a lot of support in financings as they key resources. They have partnership with the local NGOs, CBOs, international donor agencies, Kenyas governmental authorities, and local bank. Third, the Honey Care Africa also introduces and educates the farmers of using the modern technology by using Langstrove hives and also providing the financing for the beehives. This enables farmers to produce higher quality of honey in a larger volume than traditional methods. Four, the supplier (farmers) that are loyal, well educated were a reliable partner to enable company to have a high quality product. Five, the people (employee) in Honey Care Africa are also the key resources they work together with farmers to help them producing good quality of honey. 1

The employees especially the project officers and trainers are embody the spirit of the founders and also have a good technical skill. C. Key Process Research and development in this case has started with creating and producing Langstrove hives. The development is sustainable to create more high quality product and more effective way to produce honey (including the best technique to harvest). Manufacturing process are also key process to keep the product in the high quality. The Honey Care Africa use the modern technology to prevent crystallization by using micro filtration and also improved honey pasteurization process. D. Profit Formula The Honey Care Africa are small for profit company that focus on their goals to building long term self sufficiency in rural communities. The cost structure of the product dominated from the honey (that paid to the farmers in short time) and also the manufacturing process. There also other cost that the company has to spend: RnD, training and support for farmers. The company has also developed the farmers and the partnership with a lot of organization to enhance the development of honey supply. This 4 core element linked together to support the main goals of the Honey Care Africa to improve the farmers livelihoods and also support each other element to create social, environmental and economic value.

2. What are changes could enhance the scalability and replicability of business model? Because one of the key element of this business is partnership, so increasing partnership with local NGOs, CBOs, private company, and bank for financing; farmers for supply of the honey will enhance the scalability and replicability of business model, Example if there Honey Care Africa able to get partnership with new bank in financing the farmer to have the beehives, there would be more supply of honey.

Creating a strong and efficient supply chain between Farmers (communities) Honey Care Africa Distribution/Stores so it can create more enhance business scale of Honey Care Africa. Distribution channels could be created to spread the product all over the Kenya and also the export market (other countries in Africa and outside the Africa). Government role could also promote the enlargement of this business model by make supporting export regulation for small and medium enterprise especially fore company that help increase the middle low economy. This business model could also be replicate to another agriculture area such as coffee, tea, milk, vegetable crops, and fruit. The micro financing development could also enhance the development of this business model. With small investment support from bank and others funding can help farmers to start new agriculture business.

3. What opportunities could be pursued without altering the core of business model? What new relationships would be desirable and feasible? Opportunities to develop new area in rural Africa to produce more honey and also developing their farmers economy. Developing the new area and new communities to do beekeeping also creating new opportunities to expand their business by make new factory to produce honey. Honey Care Africa can enter new market outside Kenya to marketing their honey product. For this Honey Care Africa can get help from international organization or company from outside Kenya to introducing their product, moreover Honey Care Africa already known for their business system that have win several award from local and international. Opportunities that also could be pursued are to replicate this business model to develop other farmers in other agricultures area such as tea, coffee, vegetables, and fruits depend on the suitability of the area. It is can also creating new possibilities to enhance the farmers economy in that area.

Other opportunities are making efficient distribution channel to distribute the product to the market. This can be pursue by create new partnership with someone that have experience and good track record on distribution to the local and international market. New relationship that are desirable and feasible, the one that going for long term partnership and also have a same mission to enhance the farmer likelihood to support in financing area, product & quality development area, farmers economy empowerment, and also marketing & distribution of the product. For financing area the new relationship that desirable is with bank, local and international funding to give micro financing to farmer so there will be more farmers can join the program with this financing. For product and quality area the desirable relationship is with the university or private sector to enhance the quality of the product and make the production system more efficient. For marketing and distribution the desirable relationship is with the local and international distributors that can also marketing the product to a new market.