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Name Cao Yao
NetID ycao279
Group Number: 049
Website Link:
Tutorial Details
Tutor: Day: Time:
Claris Chung Monday 3pm
Time Spent on
25 hours Word Count: 1472


For many reasons a huge amount of people are living in poverty now, and poverty could
cause many bad influence on people especially on children. Children who are living in
poverty will be more susceptible to disease and have a lower success rate at school. One
organization that is helping to solve poverty in NewZealand is the Salvation Army. And the
food bank machine is designed to help the Salvation Army collect food and other goods
more efficiently.
3.1 Vision
To collect more food and goods for Salvation Army in an efficient way and so that can
reduce the effects of poverty in New Zealand.
3.2 Industry Analysis: Poverty-aid industry
Industry: Poverty-aid industry. An industry which provide food and other goods to the
people living in poverty so that can reduce the effects of poverty.
Force: High/Low: Justification:
Buyer power: Low For people who want to donate goods to the
poverty-aid organization, they do not have many
choices. In New Zealand, there are few
organizations that are helping to solve poverty.
For instance, the Salvation Army and Goodwill.
Supplier power: High For the poverty-aid industry relys on the suppliers
a lot, the supplier power is high.For example,
Major Tom Jones said that a local department of


housing and urban development offical would
deny funds because of the group’s religious
nature or will question its use of religious
Threat of new entrants: High For there are not any entry barriers for the new
competitors to enter the market. As poverty-aid
industry is a kind of philanthropy, anyone want to
help reduce the poverty can enter the market
without any block.
Threat of substitutes: Low There are not many alternatives for a person
living in poverty to choose from whom he wants
to get help from, so the threat of substitutes is
low in the poverty-aid industry.
Rivalry among existing
High There are few organizations in the poverty-aid
industry and most people do not aim to enter
into this industry, so the rivalry among existing
competitors is low.
Overall attractiveness of the industry: The poverty-aid industry do not require high entry
barriers, so it is a good chance for new entrants. And poverty-aid is a kind of philanthropy so
that it can take a good reputation to a person.
3.3 Customers and Thei r Needs
285,000 kiwi kids live in poverty, that’s 27% of the child population. 180,000 suffer from
material hardship, this could mean not having a bed , delaying a doctor’s visit or missing out
on meals, and this is 17%. And 10% of these children in poverty, live at the most severe end
of it and three out of five children will stay this way for many years.


There are multiple causes of this increases in poverty. A recent factor was the 2009
recession, this led some people to lose their jobs and now struggle to provide for their
families. The increase in GST from 12.5% to 15% led to an increase in the cost of necessities
and in particular, food. This is magnified by the large difference between the calculated
$18.8 living wage and $13.75$ minimum wage in NZ.
As such many people are living in poverty, these people need just adequate food and
necessities. And the traditional donating process is inefficient and ineffective.
3.4 The Product and Service
The Salvation Army help reduce the poverty by donating food and money. However, more
and more people are calling on the Salvation Army for help because of rising food, electricity
and petrol prices. Many of the clients in the Salvation Army are facing tremendous hardship
and struggle even to put food on the table. And it is often the children who suffer the most
when household budgets do not stretch far enough.
And this machine could help people donate food and other necessities in a convenient and
rational way. It can categorize the goods and distribute them automatically so that the
efficiency of donating will be increased. And the process of donating will be simplified.
3.5 Suppliers and Partners
The suppliers for this machine are the customers in the supermarket. When people go
shopping in the supermarket they could find the machine so that they can donate some
food, second-hand clothes, and other necessities. For the machine makes the process of
donating more simple compared to the traditional way, more people will donate goods.
And the supermarket will become the most important partner. The supermarket will leave
many food which are not sold out. Because of this machine, the supermarket can donate
the left food to the poverty-aid organizations, for example Salvation Army. And these
amount of food may help more people.
3.6 Strategy: Cost Leadership


The food bank machine allow anyone donate goods to the people living in poverty, no
matter who you are where are you from, so it is in a broad market.
And it do not ask for any luxuries, people just need to donate some second-hand clothes,
foods and some necessities. So the food bank machine face a broad market and ask for low
cost things.
The overall strategy is therefore Cost Leadership.
3.7 Value Chain Activity: Procurement
The most important value chain activity for this business is procurement.
In this business, the most important thing is donating goods. The most essential aim of this
machine is to make the donating process more rational and convenient. People may have
more chances to do the philanthropy by using this machine. And this machine could
increase the amount of donating goods basically.
3.8 Business Processes
3.8.1. AUTOMATI CALLY DONATING PROCESS- The machine will be strategically located in
supermarkets, and allows the shoppers to donate by either scanning their own goods or
selecting them from an approved list on the screen. Then they can pay for their donations,
and their donations will be added to a weekly list.



3.8.2. CATEGORISE AND DELI VER PROCESS – The machine will categorise the donations and
distribute them automatically. And the supermarket will be responsible for delivering the
goods to the poverty-aid organization, for instance Salvation Army.
Locate the machine
Donate own goods?
Donate goods
Add to a weekly list
select from the



categorise the donations
deliver the goods


3.9 Functionalities
 Make a rational and efficient way to donate goods
 Provide more chances to people to donate goods
 Categorise the donations so that the poverty-aid organizations can distribute
the donations more efficiently.
 Make the cost lower by delivering the donations by supermarkets.
3.10 Systems

3.10. 1. AUTOMATI CALLY DONATING SYSTEM – The food bank machine is connected to the
supermarket so that people can donate the things which are on sale in the supermarket.
This is an IT-based set of tools that supports the work of teams by facilitating the sharing
and flow of information. The supermarket can earn more profit and the poverty-aid
organizations can obtain more donations.
3.10. 2. GOODS CATEGORI SE SYSTEMS - The categorise and deliver process is finished by the
machine and labours together. After the machine finished categorising the donations, it will
give a signal to the labours to move them on the trucks. This facilitates the automation and
management of business processes and controls the movement of work through the
business process.
3.10. 3. REGI STERING SYSTEM – Every customer will have their own weekly donation list so
that they would know what they have donated. And this is a kind of motivation for the
customers, because when they saw that they have donate such many things they will be
more likely to help others, and they will ask their friends to donate things together.


3.11. Summary Table: Value Chain to Systems

Value Chain
Processes Functionalities Specific Information
Broad Information

1. Automatically
donating process
1. Make a rational and efficient way to
donate goods.

2. Provide more chances to people to
donate goods.
Automatically donating

Registering system
Collaboration System

Customer relationship
management system
2. Categorise and
deliver process
1. Categorise the donations so that the
poverty-aid organization can distribute
the donations more efficient.

2. Make the cost lower by delivering the
donations by supermarkets.
Goods categorise system Workflow Mangement

Collaboration system


In conclusion, this food bank machine can make a new pattern for the industry of poverty-
aid industry. It can obtain more donations by coorperating with supermarket and more
easily to use. It is more rational and efficient than the traditional donating process. This
machine will creat an increase in donation to the poverty-aid organizations, for instance
Salvation Army. And it will help reduce the effects of poverty in New Zealand basically.


1. Spencer. (1996). Salvation Army:Where does your money go?.Customers’ Research
Magazine.Dec9, vol79, p10.3p.1chart. From BSP.