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Kingston University MSc in International Business Management BS7103 CONTEMPORARY BUSINESS STRATEGY INDIVIDUAL ASSIGNMENT Submitted by: Minh Tran - k1270095 Submission date: 14 th August 2014 ------- Lecturer: Dr Konstantinos Pitsakis Words count: 2235 words

CONTEMPORARY BUSINESS STRATEGY - THE BIG ISSUE FOUNDATION

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This report consists of three main sections that focus on analyzing and evaluating the current situation of "The Big Issue Foundation" (a non-profit organization which will be referred in short as 'TBI' in the report). Through answering the requests, the report also offers a number of suggestion for TBI' strategy that they should concern to keep promoting the value of their brand and image in the future of next 5-7 years. Methods of analysis include the use of analytical business models as SWOT, Porter's Five Forces, McKinsey 7S to have a specific look for internal capabilities of TBI as well as apply PESTEL to assess factors affecting from the external environment. Then by using TOWS model, the report proposes some recommendation for business strategies of TBI (e.g. how to maximize the company' strengths to take advantage of their opportunities). Results of data analyzed show that TBI can face the most with the impact from the changes of technology in the present time as also in near future, when more and more customers are moving towards the digital products. Nonetheless, the report also indicates that TBI, with their unique distribution model, accompanied by the distinct brand values, along with an excellent leadership team would have the solution even for the worst case scenario to their business. The general conclusion is that the current situation of the company has no bad sign but their financial issues need to be considered further when most the funding of TBI depends mainly from the external sources' contribution. The report also investigates the fact that the analysis conducted has limitations. All data and information were searching from the Internet and analysis has mainly been focused on the financial statement of the business; therefore, the report may not avoid some shortcomings as well as the subjective perspectives. In addition, the most recent information in the present time has not been announced and the predictions of the TBI's business in the future are based on past performance.

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Page 1: CONTEMPORARY BUSINESS STRATEGY - THE BIG ISSUE FOUNDATION

Kingston University

MSc in International Business Management

BS7103 CONTEMPORARY BUSINESS STRATEGY

INDIVIDUAL ASSIGNMENT

Submitted by: Minh Tran - k1270095

Submission date: 14th August 2014

-------

Lecturer: Dr Konstantinos Pitsakis

Words count: 2235 words

Page 2: CONTEMPORARY BUSINESS STRATEGY - THE BIG ISSUE FOUNDATION

1

EXCUTIVE SUMMARY

This report consists of three main sections that focus on analyzing and evaluating the current situation of "The

Big Issue Foundation" (a non-profit organization which will be referred in short as 'TBI' in the report). Through

answering the requests, the report also offers a number of suggestion for TBI' strategy that they should

concern to keep promoting the value of their brand and image in the future of next 5-7 years.

Methods of analysis include the use of analytical business models as SWOT, Porter's Five Forces, McKinsey 7S

to have a specific look for internal capabilities of TBI as well as apply PESTEL to assess factors affecting from

the external environment. Then by using TOWS model, the report proposes some recommendation for

business strategies of TBI (e.g. how to maximize the company' strengths to take advantage of their

opportunities).

Results of data analyzed show that TBI can face the most with the impact from the changes of technology in

the present time as also in near future, when more and more customers are moving towards the digital

products. Nonetheless, the report also indicates that TBI, with their unique distribution model, accompanied

by the distinct brand values, along with an excellent leadership team would have the solution even for the

worst case scenario to their business. The general conclusion is that the current situation of the company has

no bad sign but their financial issues need to be considered further when most the funding of TBI depends

mainly from the external sources' contribution.

The report also investigates the fact that the analysis conducted has limitations. All data and information were

searching from the Internet and analysis has mainly been focused on the financial statement of the business;

therefore, the report may not avoid some shortcomings as well as the subjective perspectives. In addition, the

most recent information in the present time has not been announced and the predictions of the TBI's business

in the future are based on past performance.

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TABLE OF CONTENTS

EXCUTIVE SUMMARY .......................................................................................................................................... 1

OVERVIEW OF THE BIG ISSUE FOUNDATION ...................................................................................................... 3

QUESTION 1 ........................................................................................................................................................ 4

INTERNAL STRENGTHS/ CAPABILITIES ............................................................................................................ 4

Internal Micro Analysis .............................................................................................................................. 4

SWOT Analysis ..................................................................................................................................... 4

Internal Macro Analysis ............................................................................................................................. 5

Porter’s Five Force ............................................................................................................................... 5

MCKinsey 7S ........................................................................................................................................ 1

EXTERNAL ENVIRONMENT ANALYSIS ............................................................................................................. 2

PESTEL Analysis .......................................................................................................................................... 2

ORGANIZATION CHART OF THE BIG ISSUE ..................................................................................................... 3

TOWS MODEL & STRATEGIC SUGGESTIONS ................................................................................................... 4

QUESTION 2 ........................................................................................................................................................ 6

CORPORATE STRUCTURE AND GOVERNANCE ................................................................................................ 6

FUTURE IMPLEMENTATION ............................................................................................................................ 7

QUESTION 3 ........................................................................................................................................................ 9

Stakeholder mapping ............................................................................................................................... 10

CONCLUSION ..................................................................................................................................................... 12

REFERENCE LIST ................................................................................................................................................. 13

APPENDICES ...................................................................................................................................................... 14

THE BIG ISSUE .................................................................................................................................................... 14

BACKGROUND .......................................................................................................................................... 14

SOME ANALYSIS ....................................................................................................................................... 15

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OVERVIEW OF THE BIG ISSUE FOUNDATION

As a street newspaper and magazine which been published around nine countries, The Big Issue Foundation is

currently one of the UK’s leading social businesses and exist to support homeless people the chance to earn a

steady wage (become vendors) and engage themselves back into mainstream society.

TBI is also well-known as a non-profit and charity organization that dependent upon government grants and

public donations with 5 localized editions of the magazine sold throughout the UK by their vendors.

According to the official website of TBI (2014), some main information and highlight point of TBI Foundation in

the UK can be illustrated as below:

Figure 1. Basic Facts about TBI (Big Issue, 2014a)

More details about the background of the company can be found in the Appendices.

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QUESTION 1

Consider the internal strengths/capabilities and the external environment of the organization and then

draw a schematic of the organization’s operations. What suggestions about which business areas would you

make to the Board regarding the strategy of the “Big Issue Foundation” using the TOWS model?

INTERNAL STRENGTHS/ CAPABILITIES

Based on research, this section of the report applies three frameworks, SWOT analysis, Porter's Five Forces

and McKinsey 7S to identify the internal strengths and capabilities of TBI.

Internal Micro Analysis

SWOT Analysis

STRENGTH WEAKNESSES

Cheap and important labor force

Unique brand image and method of delivery

“Charity purpose” – Certified charity status

Social change status UK

Present on four continents

Award and trust

Unique selling Proposition

Socially responsible by providing the homeless

with a stable job

Good reputation

No control over workers (unpredictable)

Not fully sustainable

Vendors nationally, lack of trust

Mostly immigrants vendors (Stereotypes)

Price and youth targeted (Cheaper options)

Low brand loyalty

Low brand awareness

Weak presence

Reputation based on reputation of homeless

population

OPPORTUNITIES THREAT

Increase in homelessness + vendors + sales

Increasing number of social enterprises

Studies on social entrepreneurship (up)

Increasing number of events, competitions

Further expansion into international markets

Decrease in the disposable income

Free magazine

Online news service, technology

Effect of economic climate on donations

Legislation on immigrants

Government & Taxes/ National spending cuts

Work permit

Natural disasters

Rising critics

Threat of Substitution and New Entries

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Internal Macro Analysis

Porter’s Five Force

According to Morrison (2011), Porter’s

approach to firm strategy concentrates on the

competitive forces.

Acting Force Description Level

Supplier

Power

As a big company, TBI, however, only had printed around 125,000 (data in 2011)

copies per week as quietly having a level of circulation lower than competitors. In

fact, The Big Issue is working for a special and different orientation as suppliers

would want to stay with them

Medium

- Low

Buyer

Power

The competitive level of market is quite high because technology is giving the

customers a wide range of similar product as more attractive and cheap

High

Competitive

Rivalry

Direct

TBI offers the distinct values with a unique distribution system. However,

their product is not completely different than others in whole general

market

High

Indirect

Technology changes the forms of communication, such as TV, the

Internet and the explosion of digital media or social network (e.g.

Facebook or Twitter community) in recent years

Threat of

Substitution

The dependence of consumer in technology has led to a high threat of substitution

for TBI. Currently, mobile devices, tablet and Internet applications are almost tied

to the consumer lives. In addition, people now also tend to build a more friendly

environment by avoiding wasting the use of resources. Publications such as

magazines, newspapers which are made of paper are significantly reduced and

people prefer to seek for news and information via TV, Internet and so forth

Very

High

Threat of

New Entries

The capital to participate in this market can be at a modest level and the level of

expertise is not also too demanding. Thus, the new companies may also potentially

involved in the market, but with the rapid development of technology as the

replacement of the digital era, the future profit of the industry is limited

Medium

Ke

y p

laye

rs

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MCKinsey 7S

Strategy

Differentiation. Competitive advantage is the social aspect of the TBI magazines. TBI's market

develops through their vendors, as homeless people who are in trouble. TBI make a difference by

positioning as a non-profit organization

Structure The Big Issue Company, The Big Issue Foundation, The Big Issue Magazine | CEO, Chairman and

Board of Trustees, Vendors and Volunteers

Systems

Writers and journalists of TBI always worked steadily for the next issue of the magazine to be

published weekly. Vendors are, somewhat, more freedom in activities, but they often tend to

come over the streets and try to sell the most magazines to increase revenue, while also

increasing the circulation of buy-sell (Circle system based on self- help)

Shared

Value

The organization's members are actively involved in the protection of the common values and

common goal (i.e. social, people, professionalism and quality)

Style

The motto of TBI's leadership is simply to give a direct guidance to their vendors from the

beginning and always give more support if necessary. This is a unique approach that combines

business management and philanthropy

Staff Vendors, volunteers (for the distribution) and professional writers, editors, journalism

Skills Because of the unique type of distribution, vendors work to feed themselves and TBI does not

Shared Values

Structure

•CEO

•Board of Trustees

•Vendors

•Volunteers System

• Unique

• Involves all member

Style

• Democratic

Staff

• 2000 vendors

across UK

Skills

• Experience

• Passion

Strategy

•Market development

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require any special skills from them, only focusing on spiritual and passionate, or having a sense of

responsibility. In contrast, other internal staff (i.e. writers, editors) are highly demanding and

rigorous professional skills

EXTERNAL ENVIRONMENT ANALYSIS

PESTEL Analysis

Political

Fits with national values

Government policies on homelessness

International, national, regional and local policies

European Publishers urge Google challenge

OFT (Office of Fair Trading) Decides Against Further Investigation Into Newspaper and

Magazine Distribution

New Press Regulator to Be Established

Economical

GDP, Gini Index

Rise in Unemployment/ Homelessness

Decrease in disposable Income (Recession period)

New Statistics Show No Double-Dip Recession But Economy Still Flat-Lining

Social-Cultural

Social-Cultural difference/ Change in people’s lifestyle, addiction and needs

People are becoming financially careful

Different ethnic makeups

Stigma/ Higher level of education in the population

Perception/ Society is becoming more aware about social concerns

Digital editions are more appeal to audiences

Technological

High Internet usage

Rise in technology and innovation as the development of digital edition

Speed of delivery

Environmental

Printing with environmental awareness

Few percentage of recycled paper used/ Street cleaning

Weather conditions (e.g. rain, temperatures, disaster and so forth)

Legal

Taxation/ Tax free

Media restrictions

Proving homelessness

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ORGANIZATION CHART OF THE BIG ISSUE

According to the official website (Big Issue, 2014b), figure 2 illustrates the current organizational chart of TBI:

Figure 2. Organizational chart of TBI (Big Issue, 2014b)

In the case of The Big Issue, CEO is the true leader and the Chairman and Board of Trustees simply oversees

the Board. However, the number of board members can fully show that the strategic decision of the company

depends on the responsibilities and duties of many people.

The Big Issue Foundation

Board of Trustees

Founder John Bird

Chairman Steve Round

Trustees

Eric Barnett

Harry McAdoo

Gisele Ryan

Carolyn Aitchison

Alison J Newman

Parveen Bird Founder's wife

Patrick Foster

Heidi Stewart

Treasurer Jonathan Lachmann

CEO Stephen Robertson

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TOWS MODEL & STRATEGIC SUGGESTIONS

Based on SWOT analysis above, using TOWS model is to emphasize the external environment at a practical

level as supporting to identify the suggestions that the company should apply.

External Opportunities (O)

Increase in homelessness

+ vendors + sales

Increasing number of

social enterprises

Studies on social

entrepreneurship (up)

Increasing number of

events, competitions

Further expansion into

international markets

External Threats (T)

Decrease in the disposable income

Free magazine

Online news service, technology

Relate on donations

Economic crisis

Legislation on immigrants

Government & Taxes

Work permit

Natural disasters

Rising critics

Threat of Substitution & New

Entries

Internal Strengths (S) Cheap labor force

Unique brand image and method of delivery

Certified charity status

Present on four continents

Award and trust

Socially responsible Good reputation

With the high socially

responsible of people in current

time, there will be potentially

the most successful strategy by

utilizing the numerous human

resources around the world to

take advantage of opportunities

in the global market

Promote brand image towards monopoly. Increase credibility through organizing social campaign (e.g. give speeches, do

PR). Maximize the potential benefits from the vendors and build strong reputation.

The economic crisis will raise

unemployment but look on bright side, it

extends the number of workforce

Maxi-Maxi Strategy Maxi-Mini Strategy

Internal Weaknesses (W) No control over

workers

Not fully sustainable

Vendors nationally, lack of trust

Mostly immigrants vendors (Stereotypes)

Price and youth targeted

Low brand loyalty/ awareness

Reputation based on reputation of homeless population

Strengths could be weaknesses

sometimes. With a number of

vendors are still developing, a

reasonable strategy is to gather

vendors in same area into

groups with some of them can

be leader of the team (i.e. has

managers in each group to give

support, training, experience as

critical awareness of the duty to

other members)

Minimize weaknesses by developing

management teams to find flexible ways

to overcome the potential risks. Concern

about the digital application during the

current technology. Transform the risks

and weaknesses into the advantage by

emphasizing the special values of TBI's

brand in the market. Work in Partnership

with other associations to raise a bigger

budget and be able to improve the

magazine, expend in other markets and

make the brand known.

Mini-Maxi Strategy Mini-Mini Strategy

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TBI's main strategy is to create the image of a social and charitable company, helping the homeless, jobless

become their vendors and building a unique distribution model. Because of large human resources which are

increasing worldwide at present, TBI requires the development in management policies and manpower

training to maximize their strength and should become an exclusive brand to eliminate the threat of

substitution or new entries.

Furthermore, TBI should also consider the current trend when technology gradually affects in all areas of

human life, especially the issues of information transmission and communication as the core elements and

values of TBI's business model. As Mentioned in Keynote (2013), with the weakening of the economy, regular

publications in the near future will be difficult to compete with digital products (e.g. tablets, smartphones, e-

readers...) which are contributing to drive the market entirely.

On the other hand, TBI may also need to adjust their income stream while the majority of their cash-flow

mainly derived from external sources and contributions such as personal, charitable organizations and

businesses (see Figure 3).

Figure 3. (Big Issue, 2014c)

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QUESTION 2

Evaluate the existing corporate structure and corporate governance of the “Big Issue Foundation”. How

should those two be adapted over the next 5-7 years, given your suggestions in the previous question?

CORPORATE STRUCTURE AND GOVERNANCE

According to the Financial Statement of TBI last year (Big Issue, 2013), Trustees of TBI serve for a three year

period and may be re-elected provided total service does not exceed nine years. New members are invited to

join the board by existing Trustees, Chairman, the senior management team and the CEO.

Board of Trustees usually has quarterly meetings with the main objective is to ensure to include a mix of skills

and experience ranging from homelessness as the homelessness service sector through to financial

management. A finance committee, comprising four trustees, meets every two months and is charged with

the responsibility of reviewing the charity’s strategic plans, management accounts and performance against

budget, fundraising progress, and risk assessment. The committee prepares recommendations and reports

back to the Board of Trustees, who use the information provided by the committee to make decisions.

With one subjective observations, the executive team and CEO of TBI are involved in company operations as

having a common purpose to support society (i.e. solve social problems and aims to benefit the community). If

look at the thickness of operation and reputation of the company so far, the corporate structure and

governance activities are still working very effective.

Based on the description of the TBI Trustees on their official website (2014b), all of nine members of the Board

and the CEO had been taken the key roles in many well-known companies. They all had strong experience in

many different business areas, especially the CEO and Chairman were involved in many organizations of

human rights or community and society issues.

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FUTURE IMPLEMENTATION

Based on the above analysis, as well as current results of TBI, the corporate governance and structure of TBI in

the next 5-7 years will remain generally sustainable and there may be no change in their organization's

operating model. As mentioned in TBI's official website, it can be argued that the CEO (Stephen Robertson)

and Chairman (Steve Round) are currently two most valuable assets of the company. Both of them has a

strong background and held executive positions for TBI during the past 7 years. In addition, Stephen had a

special role at Shelter (a.k.a. UK's biggest housing and homelessness charity) for a position of Director of

Commercial Operations for 13 years before becoming CEO of TBI. Therefore, with suggestions for strategies

listed above, it may be believed that the years of service of Stephen will still play a major role in the success of

the TBI as long as he stays with the firm.

The main objective of TBI is to build the image of a non-profit organization and they are still doing really well

in this time. Through their website (Big Issue, 2014), it can be seen that the policy of human resource training

are already deployed as much but not quite clear about having a leadership and team for the vendors as

suggested above for TBI's strategy.

As mentioned in TBI’s financial report (2013), TBI is also instigating partnership with other service providers.

This eliminates duplication and competition amongst the large number of homelessness agencies and is,

therefore, a much more efficient use of resources as also can be more beneficial from public offering.

In next 5-7 years, the biggest issue for corporate governance and leadership team of TBI is probably to face

the technological change in human life nowadays. Hence, TBI may have to think of converting some of their

core element in the production stage to keep up with demand of the overall market. As mentioned in Keynote

(2013), with forecasts of a slow recovery of the economy in the next 5 years, the main growth of the magazine

industry will gradually oriented to digital magazine subscriptions. Nevertheless, the risk from the threat of new

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entries will probably be minimized if TBI continues to promote and maintain their brand differentiation by a

unique pattern of distribution.

Global expansion has its implication on corporate governance when TBI is now active on all 4 continents with 9

countries. With the orientation and individual values, TBI will definitely be flexible to have the solutions to the

effects of political, economic, or social and beyond in every country. Adding to this point, number of vendors is

still developing and if look at the most recent data for how TBI's vendors have achieved in March 2014 (see

Figure 4), the future scenario reveals a positive view in many ways. Next 5-7 years, if the brand awareness of

the company still keeps growing, TBI can be expected to continue expanding into few countries, especially

countries with high unemployment and homeless people.

Figure 4. (Big Issue, 2014e)

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QUESTION 3

How likely is it that the strategic decision makers of this organization would adopt the options which you

have arrived at analytically?

Most of the options given above have been considered and implemented by TBI somehow. Looking at the

financial statements of TBI in 2013 as also at the results and situation of the company in present, it is difficult

to concern that TBI is facing difficulties. However, the risk tends to be hidden and when bad things happen, it

was usually too late. The most notable problem is probably the influence of technology as the risk of

substitution from digital publications which will be strong and direct impact on the core products of TBI.

According to The Guardian (2012), TBI has started to deploy to develop digital products via the access card,

with price similar to traditional hard-copy magazine from their vendors to customers. As also mentioned in

BBC News (2013), CEO of TBI, Stephen Robertson, has encouraged the vendors on using smartphones to offer

TBI’s customers the choice to pay by credit or debit card.

Emphasized from the above analysis, by following the direction of two core factors, as the CEO and Chairman,

TBI must already been flexible and have taken into account the worst case scenario from technological

influences to face future. From the subjective observations, it is evident that the leaders of TBI are the good

listener and being flexible in changing strategy as knowing how to catch up the current trends.

The unique distribution model which is based on the vendors is TBI's core internal strength that may not be

changed, TBI obviously know what their business is doing. Although the TBI founder, John Bird, did not deny

once in The Telegraph (2012) that to sell The Big Issue magazine is not a proper job for the homeless, he also

explained that by becoming a vendor, homeless people have been supported to keep moving on. TBI gives

their vendors another chance to respect their life and themselves. In brief, a non-profit organization geared

towards charity and community benefits will probably always stand for all time.

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Which stakeholders might inhibit them from adopting these options and how could the decision makers

resolve such conflicts?

Stakeholder mapping

Rather than the typical quadrants, this adapted version below illustrates the relationship between power and

interest of TBI:

From all above analysis, TBI, as a non-profit organization, will be considered to encounter the conflicts for

making strategic decisions with the six main stakeholders:

External stakeholders Internal Stakeholders

Government

Charitable Firms

Public (Charity Fund Raising)

Partners (e.g. TSELF)

Customers

Vendors

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The simplest way to resolve conflicts that Board of Trustees of TBI will always need to provide the transparent

financial reporting, how the firm's operations as also the achievements and performance in current time to

their stakeholders (see Appendices).

As based on data from the investments of TBI to the present time (2014), BII (Big Issue Invest) has invested

over £ 25.5m in more than 310 organizations, directly benefiting 1.8m people and created 3,200 jobs. Adding

to this point, it has been mentioned in TBI's financial statements (2013) that TBI Board has complied with the

duty in Section 17 of the Charities Act 2011 to have due regard to the Charity Commission’s general guidance

on benefit which will be a key element to resolve the conflict from their external stakeholders..

Moreover, TBI leaders should also consider more on promoting CSR that will contribute to enhance and

protect their business confidence in the remaining stakeholders. For instance, develop more in some

campaign for human resource management by organizing training sessions for TBI's vendors.

In brief, if conflicts that may occur, the decision makers of TBI will just need to focus on maintaining their

valuable brand of the current time as also remain committed to pursuing TBI's mission to protect the message

that they convey to the stakeholders. If necessary, TBI can always be ready for a little change in the structure

of their operation for the mutations of technology on their business in the near future.

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CONCLUSION

Overall, the report has fulfilled the requirements and issues posed. By using the appropriate analytical models,

first part of the report gave a general outline on the internal capabilities and strengths of TBI as well as the

impact of external factors on the operating environment of the business. Based on that, Tows model was

applied to point out some strategic suggestion that organization need to look to in the near future.

The evaluation of corporate governance and structure showed that two key factors of TBI is the CEO and

Chairman who have extensive experience and being recognized for their competence and proficiency. This

partly confirmed that in the next 5-7 years, TBI will continue to perform well.

The report provided recommendations that TBI will need to have a unified objective to increase revenues and

capital for funding their multiple charity projects as also being consonance by responding to the change of

technology (digitalization). Additionally, TBI should also continue to promote the advantages of the excellent

long-lasting relationships with their current vendors and new vendors in near future as well as their alliances

and partnerships who will support them for the additional capital need and greater exposure of services.

Finally, the stakeholders might inhibit the strategic decision makers of TBI from adopting the suggestions

above, but the report has also indicated that TBI will cope very well with the contradictions and conflicts.

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REFERENCE LIST

BBC News (2013) ‘Big Issue seller first to take card payment’, 4th December 2013 [Online]. Available at:

http://www.bbc.co.uk/news/technology-25202904 [Accessed: 8th August 2014]

Big Issue (2013) Financial Statements for the year ending 31 March 2013 [Online]. Available at:

http://www.bigissue.org.uk/sites/default/files/documents/2013_signed_accts.pdf [Accessed: 8th August 2014]

Big Issue (2014a) BASIC FACTS ABOUT US [Online]. Available at: http://www.bigissue.org.uk/about-us/basic-

facts-about-us [Accessed: 8th August 2014]

Big Issue (2014b) WHO’S WHO *Online+. Available at: http://www.bigissue.org.uk/about-us/whos-who

[Accessed: 8th August 2014]

Big Issue (2014c) FINANCIAL STATEMENTS [Online]. Available at: http://www.bigissue.org.uk/about-

us/financial-statements [Accessed: 8th August 2014]

Big Issue (2014d) SERVICE HIGHLIGHTS [Online]. Available at: http://www.bigissue.org.uk/about-us/service-

highlights [Accessed: 8th August 2014]

Big Issue (2014e) HISTORY AND ACHIEVEMENTS [Online]. Available at: http://www.bigissue.org.uk/about-

us/history-and-achievements [Accessed: 8th August 2014]

Big Issue Invest (2014) Official Website [Online]. Available at: http://bigissueinvest.com/ [Accessed: 8th August

2014]

Clegg, S., Carter, C., Kornberger, M. & Schweitzer, J. (2011) Strategy Theory & Practice. London: Sage

Clegg, SR. and Hardy, S. (2005) ‘Studying organization: theory and practice. London: Sage

Dailymail (2013) ‘Big Issue, from street to the City: Homeless magazine branches into fund management in bid

to raise £250m’, 5th August 2013 [Online]. Available at: http://www.dailymail.co.uk/news/article-

2385152/The-Big-Issue-Homeless-magazine-branches-fund-management-bid-raise-250m.html [Accessed: 8th

August 2014]

Keynote (2013) Lifestyle Magazines Market Update 2013 [Online]. Available at: http://www.keynote.

co.uk/market-intelligence/view/product/10830/lifestyle-magazines [Accessed: 8th August 2014]

Morrison, J. (2011) The Global Business environment – Meeting the Challenges. 3rd edn. Palgrave Macmillan.

Sourcewatch (2014) Big Issue Foundation [Online]. Available at: http://www.sourcewatch.org/index.php/

Big_Issue_Foundation [Accessed: 8th August 2014]

Telegraph (2012) ‘Selling the Big Issue is not a proper job’, 18th January 2012 [Online]. Available at:

http://blogs.telegraph.co.uk/news/jamesdelingpole/100130664/selling-the-big-issue-is-not-a-proper-job/

[Accessed: 8th August 2014]

The Guardian (2012) ‘Big Issue magazine goes digital’, 25th October 2012 [Online]. Available at: http://www.

theguardian.com/media/greenslade/2012/oct/25/the-big-issue-digital-media [Accessed: 8th August 2014]

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APPENDICES

THE BIG ISSUE

BACKGROUND

Social enterprise

Allows the homeless to earn a steady wage, engage themselves back into society

Dependent upon government grants and public donations

Founder: John Bird (Editor in Chief) and Gordon

Roddick

Type: Fortnightly independent magazine, non-for-

profit social enterprise

Industry: Entertainment

Founded: September 1991

Headquarters: London, UK

Founded: September 1991

Countries served: UK, The Republic of Ireland,

Australia, Japan, South Africa, South Korea,

Namibia, Kenya, Taiwan, Malawi

Publisher: John Hunt

Category: street newspaper/ Frequency: Weekly

Website: http://www.bigissue.org.uk/

Employees in UK (2014): approximate 2,000 vendors (including 500 in London)

Competitors: Telegraphs, The Guardian, Independent, The Economist, street news.. etc..

Target audience: “a culturally engaged, socially aware audience – the ultimate consumers with a conscience”

(The Big Issue in the North, 2010). The politically, social-engaged middle-class and students of Britain (The

Bubble, 2012)

Source of Income: Sales Magazine and Advertising – Re-invested in the company or donated to The Big Issue

Foundation

Additional Information: an award-winning entertainment and current affairs magazine, the magazine covers

arts entertainment, current affairs, lifestyle, news and opinion

Current strategy: Help homeless get back into mainstream society, consolidate it’s market share, product and

market development, establish and maintain relationships with long term donors (Freeriks, 2011)

Core competences: well established brand name, own printing facility, good relations with journalists and

knowledge of homeless, good links for corporate donations

Slogan: “Helping people help themselves”

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Mission statement: “Our mission is to connect vendors with the vital support and solutions that enabled them

to rebuild their lives; to find their own path in their personal journey away from homelessness”.

Objectives - Delivery mission: vendor-centric + Inclusive + non-judgmental

Source:

Schmidhauser, T. (2013) [Online]. Available at: http://s3.amazonaws.com/ppt-download/thebigissuemagazine

finalreport-130524103456-phpapp01.pdf

The Big Issue in the North (2010) [Online]. Available at: http://www.bigissueinthenorth.com/advertise

The Bubble (2012) [Online]. Available at: http://www.thebubble.org.uk/causes/what-s-the-big-issue

Metro (2014) [Online]. Available at: http://metro.co.uk/2014/06/10/big-issue-4754765/

Freeriks, M. (2011) [Online]. Available at: http://prezi.com/syaeaimcnbrb/strategic-evaluation-of-cargill-and-

the-big-issue/

SOME ANALYSIS

It is easy to see that the mode of operation of TBI is mainly based on the vendors to reach customers. Activity

diagrams can be represented as shown below:

The Big Issue

• Buy the magazine cheaper from TBI to sell

• Receive support in: housing, finance, health,

future planning

• Own mini-enterprise

Vendors • Corporate Donations

• Grants

• Goverment funding

• Charitable Trusts

The Big Foundation

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Other releavant data and information from TBI’s official website can be given as following:

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Newest data of last month:

Source:

Big Issue (2014) [Online]. Available at: http://www.bigissue.org.uk/