Contemporary issues in business Essay Example | Topics and Well Written Essays - 2000 words

Contemporary issues in moving in - Essay ExampleCountries with citizens who equable have got problems in meeting basic needs like food, clothing, and housing are an ideal testing show for the comprehension of backside of pyramid. The most challenging issue to this strategy is defining those race who are tell to be at the base of the pyramid, as there are those who earn less than two dollars a day, and there are those who earn slightly higher than two dollars a day, but are still languishing in poverty. Many companies especially the multinational corporations invest on Bottom of profit, so as to provoke the lives of billions of people out of poverty and desperations that seem to continue, if the gap between the rich and the poor continues to widen. For example, the Unilever Company is atomic number 53 of the companies that have adopted the Bottom of Pyramid as a corporate strategy. Many CEOs have practice to look at this strategy with a new lens (Prahalad, 2010). There is s ome evidence that crowd out be used to prove that the innovations in the Bottom of the Pyramid dismiss and have resulted to profitable business. moving in leaders, who have adopted the Bottom of Pyramid strategy, have started to re-examine and see the role of business in the society. This strategy has provided a platform for global innovations, which have a lot of implications in the world of business today. Therefore, though the Bottom of Pyramid has its own shortcomings, it is a precise important strategy that most organizations can adopt (Prahalad, 2010). What is Bottom of Pyramid? There have been many discussions on the ideal of Bottom of Pyramid in business today and no precise definition has been put forward to define the concept. However, this concept was originally introduced to draw attention to the 1-5 billion poor, who are unserved or underserved by the large organized hidden sector including multinational firms (Prahalad, 2010, p. 6). The main aim of the Bottom of Pyramid is to ensure that the rich, who are the ones occupying the top of the pyramid would be sensitized to help those who are less fortunate, and who are the majority occupying the base of the pyramid. Kazmi defines it as a strategy that refers to exploiting the opportunities that are believed to be available in serving the poorer sections of the society and in like manner serving fond objectives (2008, p. 207). Cited in Donohue, 2009. The above diagram is a representation of the rich occupying the top of the pyramid being the very few, and the poor occupying the base being the majority. In other words, it is a representation of how income in the world is distributed (Donohue, 2009). Thus, the Bottom of Pyramid refers to that population that leaves below the poverty line. How does the B.O.P Strategy Work? The term Bottom of Pyramid is tell to be a relative term it focuses on the strategies that companies can start to serve the populations, rather than un-serving and underservin g them. When people say it is a relative term, it means that, a person living at the Bottom Pyramid in China is different from someone living at the Bottom Pyramid in Somalia, though both are seen as living at the BOP, but in different contexts (Prahalad, 2010). This strategy also focuses on serving with approaches that are more profitable and relevant for application towards the bottom of the pyramid population. The surround on this issue will definitely continue before a very precise definitio