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Development of a Sustainable Business Model development for Biblionef Ghana

List of Tables and Figures Tables:

Table 1: SWOT Analysis of Biblionef Ghana Table 2: Estimated Total Revenue Stream Per Year Table 3: Implementation Plan

Figures :

Figure 1: Root Cause Analysis

Figure 2: Biblionef Ghana’s Current Business Model

Figure 3: Biblionef Ghana’s Sustainable Business Model

Table of Contents

CHAPTER 1: INTRODUCTION…………………………………………………………………………………. 7

CHAPTER 3: LITERATURE REVIEW…………………………………………………………………….. 22

CHAPTER 4: SOLUTION………………………………………………………………………………………… 28

  1. Introduction of solution…………………………………………………………………………………….. 28
    1. Business Model…………………………………………………………………………………………………. 28
      1. Key Partners……………………………………………………………………………………………….. 30
      1. Customer Relationships………………………………………………………………………………… 30
      1. Key Activities……………………………………………………………………………………………… 31
      1. Key Resources…………………………………………………………………………………………….. 32
      1. Revenue Streams…………………………………………………………………………………………. 32
      1. Cost Structure……………………………………………………………………………………………… 34
    1. Implementation Plan…………………………………………………………………………………………. 35
      1. Detailing of Important Steps to Follow…………………………………………………………….. 36

CHAPTER 5: CONCLUSION AND RECOMMENDATIONS………………………………………. 37

Appendices………………………………………………………………………………………………………………. 44

Interview Transcript………………………………………………………………………………………………… 44

Fig 1.1 Income(June – Dec 2017)……………………………………………………………………………… 54

Fig 1.2 Expenses(June – Dec 2017)…………………………………………………………………………… 54

Fig 1.3 Twitter Poll Results………………………………………………………………………………………. 55

Fig 1.4 Twitter Poll………………………………………………………………………………………………….. 55

CHAPTER 1: INTRODUCTION

The aim of this chapter is to provide an overview of what Biblionef Ghana does and what it seeks to achieve as an organization. Along with a company profile and a SWOT analysis, the company’s vision, mission, and values are clearly stated. The aims and objectives of the project are also discussed in this chapter. Finally, to be able to assess the external environment by which Biblionef is affected, a PEST analysis is carried out.

Company profile: Biblionef Ghana

The idea of Biblionef developed when a Dutch ambassador noticed financial poverty, poor sanitation and low basic education all around the world. He realised that there were children who were not aware of the joy of reading. His desire to share this joy with them caused him to set up Biblionef Netherlands twenty-five years later. He then looked to set up different branches in different countries and Ghana became one of the countries he decided to set up in. Biblionef Ghana is a Ghanaian non-governmental organization whose parent company is Biblionef Netherlands. It is managed by an Executive Director and has a five-member board of directors, two project officers and one casual staff. It seeks to provide under-privileged children in Ghana with the opportunity to experience the joy of reading and develop a love for books. Biblionef Ghana does this by providing new storybooks with translations in local dialects and by having workshops to train teachers on reading promotions and library

management. It also holds reading festivals and owns a children’s library. Biblionef Ghana also purchases and distributes books written by Ghanaian authors and books published locally. Biblionef distributes books written by Ghanaian authors mainly because of their understanding of the importance of providing children with reading materials containing elements they can easily relate with.

Vision: To let underprivileged children in Ghana experience the joy of reading and the love for books thereby giving them an opportunity for a brighter future.

Mission: To create access to reading material for underprivileged children in Ghana through the provision of new storybooks and book translations in the local dialects.

Values: We show integrity in our business dealings by being transparent and accountable. We give respect and consideration in our associations with partners, beneficiaries and staff and aspire to a high level of excellence and efficiency in whatever we do.

Aims and Objectives

The objective for this project is to develop an appropriate business model for Biblionef Ghana to help it become income generating, and self-sustaining.

SWOT Analysis of Biblionef Ghana

Table 1: SWOT Analysis of Biblionef Ghana

StrengthsWeaknesses
Good Customer Relationships   Experienced Executive Director   Support from the NetherlandsPoor Online Presence   Understaffed   Insufficient Funds   Underperforming Library
OpportunitiesThreats
Available Partnerships   Support from the GovernmentFinancial Instability   High Competition

Industry Analysis

To be able to analyse the external environment of Biblionef Ghana, a PEST analysis tool will be utilised. This tool considers the political, economic, social, and technological factors that affects the organization.

When it comes to political stability, “Ghana has been a stable democracy since the introduction of constitutional democracy in 1992. Changes of government between the two dominant parties, the National Democratic Congress and the New Patriotic Party have generally been smooth” (Ministry of Foreign Affairs of Denmark, 2018). The current President of Ghana, his excellency, Nana Akuffo Addo is aiming to reduce the level of corruption as it does occur, especially with the police and judiciary system (Ministry of Foreign Affairs of Denmark, 2018).

Organizations, such as NGO’s need to operate in a country with political stability because the government forms a part of their stakeholders. NGO’s “need the cooperation of the

government to facilitate work because of strikes and other protests and this impacts profits of the businesses negatively” (Management Study Guide, 2018). Also, the existence of political instability causes bureaucratic delays when it comes to gaining approvals that the organization might need from government. The unity of a country is very vital to a company like Biblionef Ghana because Biblionef Ghana donates books to different regions in Ghana and has reading festivals in different regions in Ghana. For these particular projects to be executed successfully, there must be unity in the country as a whole.

Ghana’s economy, which in 2016 experienced stifled growth begun to recover in 2017. Ghana’s economic growth has been the highest since 2014 mainly due to a percentage increase in the oil and gas sector (Tradingeconomics.com, 2017). Interest rates are currently at 20.00% and the inflation rate is at 11.80%. Both the inflation rates and interest rates have however been forecasted to have reduced by the year, 2020 (Tradingeconomics.com, 2018). There is however a threat to Ghana’s financial stability because of the increase in its debt to equity ratio (Focus Economics, 2018). A fall in the inflation rate might affect Biblionef in a positive way when it comes to donor funding and the expenditure of Biblionef Ghana. This is due to the increase in purchasing power that the reduction in inflation would bring about on the part of the donors.

Ghana is a country consisting of about 27,499,924 people and has a population growth rate of 2.17%. Ghana generally has a young age structure with the median ages of 21.1 years for males and 20.6 years for females. Total fertility rate is 4 children born per woman and contraceptive prevalence rate is 30.6%. Poverty rates in Ghana have declined but the Northern region still has poverty being pervasive because of the floods and droughts it experiences. There is also the existence of lower school enrolment and lower illiteracy rates

in the Northern region (IndexMundi, 2018). This can explain why Biblionef Ghana gets a lot of requests for books from the North and Volta region of Ghana and not as many requests from the Central and Greater Accra Regions.

Technology in the world provides teaching methods which facilitate the ability of students to grasp concepts quickly. This can be noticed in schools where videos are used to help students visualize teaching content and social media which allows for interaction between students.

Although most Ghanaians share the view that technology is expensive, it is rapidly gaining acceptance in Ghana and individuals and organizations in the private and public sector are benefiting from it (DreamOval, 2016). Biblionef uses power point presentations for their training programs and sends application and evaluation forms via email to schools who require the donation of books. Schools are also required to email or send messages through WhatsApp, some pictures and letters depicting children using the books that were donated to them.

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