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AIESEC IN ROMANIA 2015.2016 Become Business Model

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AIESEC IN ROMANIA 2015.2016

Become

Business Model

Social Problem Definition

The Social Problem

After the YouthSpeak results, AIESEC’s global survey on youth’s path from Education to Employment, we realized that 43% of the

student from Romania want to become entrepreneurs and another 40% want to work in a multinational company which means

that almost all of them want to do one of these two things. However, students don’t get enough practical experience with their

university education, which is way too theoretical and has almost no space for skills and behaviors development.

The issue is, then, that university students have a huge gap between defining what they want for their professional careers

(based on lack of understanding of the business or entrepreneurial work) and the actual planning of their career development

steps. This results in a high unemployment rate, and furthermore in very low personal and professional satisfaction with the jobs

the students get in the future.

Issue name: Career Development, Business Understanding.

Needs & Opportunity Analysis

1. Market Needs

• Motivation for learning: which means that the students need to see the relevance in what they’re doing in order to have the right motivation

• Practice: one of the main issues for a student in Romania is that there’s nothing practical in their faculties which lead us to unprepared students for the

market.

• Being open to the market: it’s really hard for a common student to be visible for the market and also to know what’s going on in the market, so he can

understand the possibilities and trends happening and how it can connect to his future career.

• Possibility of doing something in your own country: another thing would be that most of the students leave after they finish their faculty just because they

don’t know what are their possibilities in their own country and don’t feel connected to Romania, thus they look forward to emigrate.

• Foreign Languages: because it’s impossible to work in a multinational or to have your own company without knowing at least one more language,

specifically English, and also it’s more important to practice it than to study it.

• Promotion: both companies and universities have a difficulties in actually reaching the students and having conversations with them.

• Attracting students: the universities have a really big problem in making the people that finished the highschool to apply for the local university.

• Career orientation: due the fact that the faculty is not enough for a student to figure out what they want in their career and a lot of them finish the faculty

without knowing what they will do, they need to find out from the first years of faculty at least in order to be able to practice

• Self- awareness: again, one of the most important things to know, because it’s way easier to decide what you can do I your future, what you should

improve, at what you’re good and what should be your next steps if you’re self-aware.

• Technical skills: nowadays the companies search qualified people to work on their company and only with theoretical skills it’s really hard to get all the

knowledge that you need.

• Long tern vision: it’s something that it’s missing from our thinking for generations and it’s really hard to build something and to take some actions if you

don’t see the end goal of that and that’s why it’s really important for the students to start having a long term vision.

Needs & Opportunity Analysis

2. Current Trends

• Economical instability: it affects a lot the whole population of Romania, but more than that the students, because maybe there

are a lot of times when they don’t have money to invest in their own development.

• Western countries module: this is something that we can actually work on an bring with our project. Western countries module,

referring to the universities module, where they do a lot of practice stuff which help them in their future.

• Bad media example: there is a big problem in Romanian society that you have nothing to watch on TV. There are only bad

examples and this affect the students because it restrict they long term thinking and their possibilities.

• Virtual orientation: day by day we are going virtual more and more and most of the people that are doing this are the students.

• Emigration of the young population: there are a lot of students that after they finish their faculties are leaving the country just

because of the salaries and because they don’t see the possibilities that Romania can offer.

• The wish to care more and do less: there are a lot of people aware and talking actively about the problems that they have and

Romania as a country has but few ones are doing nothing to improve those problems. There is a lack of motivation for actually

doing things to improve what’s not good.

• Entrepreneurship: more and more students want to become entrepreneurs after their faculties.

Needs & Opportunity Analysis

3. Root Causes

• Off-dated educational system: the model is inherited from the industrial era and hasn’t been adapted to meet today’s demand.

The students are taught lots of theory but very little practical activities are held, together with a lack of focus in actual skills and

competencies development.

• No long term thinking: The students themselves don’t have a long-term orientation for their lives, which includes their careers.

They don’t necessarily see the importance of investing in their professional development further than what is taught at universities

and to understand what the market is like, and thus they are moved by inertia and not planning their futures.

• Financial instability : Most of the university students don’t have a strong financial stability that allows them to develop the just

mentioned long-term thinking, thus focusing mostly in financial survival, which means accepting jobs and making career choices

based only or mostly in financial benefits, instead of what might be an actually planned career path.

Needs & Opportunity Analysis

4. Environmental Landscape (competitive analysis)

• Other NGO’s: there are a lot of NGO’s that are trying to tackle similar issues with relatively equivalent ideas and that come up

with the similar projects.

• The companies programs that are similar: some companies have their own campus engagement strategies. It can affect us

because the students are more likely prefer approaching a company than an student organization and they might also have the

chance after the companies programs to be hired there (being a more short-term oriented possibility for them).

• The universities: some universities are having a similar projects and they can have more visibility then us in the students market.

Needs & Opportunity Analysis

5. Barriers & Opportunities

Barriers

• AIESEC positioning in the student market: depending on the city, AIESEC might not have the most positive positioning in the

student market. Furthermore, we have different programs for them (Global Talent, Citizen and Leaders) that might compete

against each other and confuse them if not presented properly.

Opportunities

• Need for students in companies: there are a lot of companies that want to grow a lot in the near future and they don’t have

students with to hire with enough preparation and experience in order to do that.

• Internationalism: the thing that makes us unique as an organization is that we bring international students to learn together with

our students. They can bring new ideas, new perspectives and furthermore a mindset that “it can be done”.

• University Relationships: Most of the AIESEC Local Committees have long-term positive relations with their host universities, which

allows them to connect this project to the university in order to have a better positioning and endorsement.

Social Business Idea

The Project Idea – Social wise

Given the fact that the main issue identified is lack of career orientation and business understanding in university students, the

project idea is to create spaces, in an organized agenda, where the students can learn in theoretical and practical matters deeper

knowledge about different areas of business, broken down into categories (modules), and about entrepreneurship.

The content of the program’s agenda for each area of category of a business (module) is developed in partnership with companies

that work in the field, and with an entrepreneurship specialist organization, generating that way the connection between what

employers and entrepreneurs need and what the students will actually learn in the project.

Furthermore, the content of the project is not delivered in the classical “I teach, you learn””methodology, but in a 21st century new

methodology: co-learning. Each student group will have AIESEC international volunteer interns as “facilitators” that are not experts in

the subject, but are very interested and passionate about it. The interns will be trained in how to host co-learning spaces with the

university students, and then they’ll be responsible for keeping the track of the agenda and the activities that are supposed to

happen everyday, but not to directly “teach” the contents: everyone in the group (both beneficiary students and the interns) are

supposed to learn together through the different methodologies planned. Part of the practical experience is that in each group will

be composed by 2~3 teams of 2~3 students each, and they have to develop a project related to the area of knowledge in the 6

weeks of duration of the edition. Later on, the best team of each group would be awarded with a fee-free, short-term

entrepreneurship exchange experience sponsored by the company responsible for the module.

At the end, all the “graduated” participants from the project pass to be part of a “talent pool” where they can have contact with the

partner companies, and thus creating the opportunity for youth-employer connection and employability.

The Project Idea – AIESEC wise

From the AIESEC perspective this project has a huge relevance: from the Social Development (IGCDP) side, it allows massive grow

through a highly scalable model for exchange realizations by connecting to a relevant need of society (that will have high demand in

the long-term and is relevant for the world current trends and trends), and by creating a kind of job description for interns which

requirements are not specialists, allowing easy matching and massive volume.

From the macro AIESEC perspective, the project responds to the organization’s essence of leadership development for youth. We

offer a program for our main target as organization, university students, which is relevant to their needs and complementary to the

other programs that we as AIESEC offer (exchange and team experiences). In this sense, it generates both brand positioning in them

as customers of AIESEC, generating awareness of the organization and possibilities for cross-selling other programs, and at the same

time we serve to our core purpose of youth development with an alternative, complementary program.

In the organizational results perspective, the basic operational idea goes as following: each area of business has 3 modules, each

module has 4 groups, each group has 6 participants and 2 interns. In that sense a local AIESEC office that runs 1 area of business

would have 72 participants in total, with 24 interns. Then the number is highly scalable depending on the number of groups per

module (which depends in market demand of the project) and on the number of areas of business opened.

Last but not least, from the corporate perspective, the project also has a lot of potential to build last-long relationships that could go

beyond the project itself and into other dimensions of partnership, as well as positioning AIESEC in the business sector further.

The Project’s Vision

Every university student will have the power to take Romania to

the next level, by creating the future they dream of.

Career Orientation

Business

Understanding

International

Environment

Employer Branding

Consumer Branding

Access to qualified

domestic talent

Account

management

Community

membership

Direct sales

B2C Marketing

University Students

(beneficiaries)

Companies

(Regular Sales)

Interns

Co-Learning

techniques in a

practical environment

& facilitation skills Matching Process

Partnership Package Sales, Employing Tax

Intern Fee (Fixed price, single payment)

Participation fee, membership fee

Delivery Services

Sales Costs

Logistics, Copyright,

Marketing

Accommodation,

Delivery Costs,

Matching Costs

Universities, Student

Organizations,,

Curricula Partners,

Logistics Partners

Global Entity

Partners (EP

Suppliers), Intern’s

Experience Delivery

Partners

Program Development,

Marketing & Delivery

Sales, Engagement &

Reporting

Selection & Preparation

Logistics, materials, HR, information systems, agenda content, initial capital.

Business Model Canvas

1. Customer Segments: who are we selling our project to?

1. Students as beneficiaries: They are the main beneficiaries of the project and the main purpose of it’s existence. For them is the

core value delivery in order to tackle the issue of career orientation and business understanding.

2. Interns: They are a customer because they are choosing to live their exchange experience in our project and thus we must

deliver to them a high quality experience with all the minimum standards. Furthermore, they will pay a TN Fee to be part of this

project, so this means that we have an even bigger responsibility to deliver all the standards.

3. Companies: Are a key customer for our project and the fundamental income providers.

There are 2 types of packages we as organizers are going to sell.

• Consumer branding (Support & Content partners): Companies which will want to be associated with our project will give us

sponsorships in exchange for advertising. (ex: a food company who wants to position itself in the student sector)

• Employer branding (Agenda partners): Companies which will want to have access to a pool of talented students from which they

can hire after the project, so they invest resources to develop the agenda of the project and support in the delivery.

Business Model Canvas

2 Value Proposition: What do we give to each customer?

1. Career Orientation, Business Understanding, international Environment: By bringing international young people with other perspectives our

students will gain strategical thinking when developing a business and being more aware of their professional path.

2. Consumer Branding, Employer Branding, Access to qualified domestic talent:

• Consumer branding: By partnering with our project, we can help them make their business more known and we can deliver that for them

not only on the local and national level, but also on the international scale through our interns.

• Employer Branding: There are a lot of companies that want to grow in the near future and they lack access to prepared students, since they

are attracted by various companies at the same time. By investing in the students, the companies will have a better positioning of

themselves as an employer of choice for the students, increasing the possibility they are selected by top students.

• Access to qualified domestic talent: We can offer the company visibility and also they can co-create the curricula for the project based on

what they need. After participating at our project, the students become part of a pool of talented young people that the companies can have

access to.

3. Co-Learning techniques in a practical environment & facilitation skills: For the Interns, besides the regular value proposition of the

volunteering exchange itself, this project has an added value which is the fact that we will create the project’s agenda with professional

institutions (ex: a NGO specialized in child education, psychology office, etc) and the interns will be able to train based on it, thus enhancing

their knowledge on training & education as well. Furthermore, they will gain facilitation skills and will learn together with the students.

Business Model Canvas

3. Channels: How do we transmit the value proposition to the costumer?

1. Direct sales: For companies and universities, the method is direct sales through sales meetings in order to partner for the

project and create long-lasting relations that enable yearly growth;

2. Matching process: For Interns, the way for them to know about the project and it’s value proposition is the regular internal

matching process of AIESEC, which includes the various International Relations strategies.

3. B2C Marketing: In order to transmit the value proposition to the students properly and to be as visible as possible, we’ll

promote the project both online(social media channels) and offline(classhouts, bringing friends, word of mouth)

Business Model Canvas

4. Relationship Management: How do we maintain the connections?

1. Account Management: For companies, to have constant communication with the partners in order to guarantee expectation

alignment and achievement. Project reporting in different stages from AIESEC to the partners is included in here. The customers

need to stay in full contact with the project from the beginning until the end. All of this is to maintain and upscale the long-

lasting partnerships for project scalability

2. Community membership: For students, we’ll create a community that allows them to be connected with the companies,

among themselves and with AIESEC, to have a space where they can share their ideas and establish future collaboration.

3. Delivery Services: For interns all the regular services that are provided for a volunteer exchange participant of AIESEC. This

includes Exchange Program and Policies, Standard & Satisfaction and Delivery Activities and Programs of AIESEC in Romania.

Business Model Canvas

5. Revenue Stream: Where does the money come from?

1. Participation fee, membership fee: Each student will have to pay a single fee in order to be part of the project in an edition. The

people who will want to have access to the community will also have to pay a different access fee with other benefits.

2. Partnership Package Sales: For companies, the project will have different sales packages that adapt to their different budgets and

needs. The sales are done locally and they are the main source of income to make the project sustainable.

3. Employing Tax: Furthermore, for the companies who will hire students from the pool of students that we give them access to,

will contribute financially to the project with a fixed fee per hired student.

4. TN Fee (Fixed Price, single payment): We will ask for our interns a fee to support in the costs of the project. The exact amount

will be standardized across all social projects of AIESEC in Romania.

Business Model Canvas

6. Key Resources: What things are needed to run the project.

1. Logistics & Materials : All the physical resources needed for the organization and delivery of the project: projector, flipcharts, pens,

location for the sessions, brochures, flyers, booklets, banners, etc.

2. Human Resources: The people needed to plan and execute the project processes and activities: the national team (national

project manager, marketing responsible, processes coordinators), the local team (local project manager, project team, etc) and

the interns that will be delivering the sessions to the children.

3. Information Systems: Online systems to manage the information nationwide across all the team. Needed for data centralization,

decision making and CRM.

4. Content for the agenda: The content of the agenda, with all the learning strategies and methodologies, which should be created

in partnership with specialized organizations.

5. Initial capital: The starting funds to get the project running in the first stages.

Business Model Canvas

7. Key Activities: What should be done for the project to happen?

1. Program development, marketing & delivery: For students, the program (actual agenda with contents and learning methods) has

to be developed with a specialized partner and then delivered through the sessions calendar by the intern, according to the

timeline predefined. This also involves all the logistics preparations needed, as well as building the partnerships with the

universities in which the project will be delivered and setting the delivery expectations for the project.

2. Sales, Engagement & Reporting: With companies, direct sales are done to get them on board with the project according to the

different partnership packages. After the contract is signed the companies must be engaged in the project (i.e: inviting them to

the events, have constant meetings, etc.) to build a stronger relationship based on purpose. Later on reporting of the status of

the delivery of the partnership is done (for transparency in the delivery of the contact) and also updates of what is happening in

the project for informative purposes (once again to build a stronger relationship based on purpose).

3. Selection & Preparation: For the interns, selection among all the applicants for the project and all the regular matching and

delivery processes. Then preparation before the project starts is really important, as well as constant follow up of their

performance and on-going training as needed, to guarantee proper delivery

Business Model Canvas

8. Key Partners: Who do we need to walk side by side with?

1. Universities: They can support us in making the project more visible, reaching out to a bigger amount of students, giving more

formality to the project by endorsing and showcasing it and also support us with physical spaces for the classes and other

needed logistics.

2. Student Organizations: We believe that a partnership with other student organizations will help us increase the visibility of the

project and to reach more students to subscribe as participants.

3. Curricula Partners: For our curricula partners, we need to collaborate with companies in order to create together a professional

agenda for all the blocks that we’ll have in the project and to be aligned nationally.

4. Logistics Partners: For Logistics Partners, this can be any organization that could help us covering the logistics costs of the project

by direct sponsorship.

5. Global Entity Partners (International Suppliers): As all of AIESEC Social Development Projects, International Exchange Volunteers

are a core to our activities. In that sense, a fundamental partner are other national AIESEC offices across the globe that can

provide us with a steady supply of International Interns to volunteer in the project across the year, in the planned timeline of the

project.

6. Intern’s Experience Delivery Partners: Any kind of organization that can support us in the delivery of the Interns’ experience (i.e:

accommodation, food, transportation, LEAD for Interns, etc).

Business Model Canvas

9. Costs Structure: What do we spend money on?

1. Logistics, Copyright, Marketing: For students, there are logistics and materials costs (i.e: paper, pens, flipcharts, etc.), copyright of

the curricula for intellectual properly, and also promotional costs before and during the project (i.e: flyers, posters, paid ads, etc.)

2. Sales cost: All costs related to sales, such as expenses for/during the meetings with the companies, money for transportation,

sales materials; also account management costs for engagement, reports, invitations to events, etc.

3. Accommodation, Matching and Delivery Costs: The interns must be provided with free accommodation during their state in

Romania for the delivery of the project, being this one of the main costs of the project. Furthermore there are all the standard

matching costs of AIESEC’s Social Development Projects (i.e: invitation letters for the interns who need VISA, matching fees, etc)

and also standard delivery costs (i.e: welcome packages, leadership development activities, trainings, etc)

Community belonging

Business Understanding

Develop practical skills

International Perspective

Entrepreneurial Thinking

Community Development

Professional agenda

Interns as Facilitators

Practical Projects

Interns aren’t experts

Class frequency

English barriers

Trainings for Interns

Different time schedules

Group support

Registering and paying

Attend sessions

Working with

teams and interns

Developing a

specific project

Community access of

like-minded individuals

University Students

(beneficiaries)

Sessions for business

understanding hosted

by international

students

International exchange

platform

Contact with companies

Practice English skills

Company spaces

AIESEC organizing errors Feedback systems

Contact with companies

Visibility among

university students

Interaction with

university students

Curricula design and

delivery

Developing the

curricula

Brand positioning

Company-hosted spaces

for students

Deliver Sessions

Platform for contact,

understanding and

attraction of

university students

Platform for consumer

branding Design and delivery

frameworks

Companies

Access to a unique

talent pool

Database management

Talent Pool engagement

and attraction

Tailored, company

made, talent attraction

strategies

Feedback the project

Providing brand

materials

Develop brand

attraction strategies

Co-learning in an

international

environment

Development of

facilitation and

hosting skills

Peer-to-peer hosting

Follow the agenda

Participate in initial

trainings

Prepare the sessions

Co-facilitate the

sessions

Feedback collection

and improvement

Interns hosting co-

learning spaces

Following and

understanding a

professional agenda

Interaction with different

cultures

6 weeks of learning by

doing

Access to knowledge

from a professional

agenda

Skills development

spaces

Business understanding

spaces

Provide the framework

for their leadership

development

Interns

Participants engagement

Showcase their journey

Value Proposition Canvas

1. Gains

1. For Students:

• Belonging to another community: contact with other students with similar interests.

• Business Understanding: how business areas work and get business perspective

• Develop practical skills;

• International perspective;

• Practice English skills;

• Opening towards entrepreneurial thinking;

• Possibility of being in touch with companies.

2. For Companies:

• Visibility among university students;

• Interaction with the university students

• Access to a unique talent pool.

3. For Interns:

• Co-learning in an international environment

• Developing facilitation and hosting skills

Value Proposition Canvas

2. Gains Creators

1. For Students:

• Community development for participants

• Curricula/Agenda created in partnership with companies expert in the field

• Spaces hosted by international students;

• Developing a project & working in teams of 2-3 people

• Participate in the spaces hosted by the companies.

2. For Companies:

• Brand positioning across the project in different channels and spaces.

• Hosting spaces and delivering sessions for the university students

• Project “graduate” participants database management

3. For Interns:

• Hosting co-learning spaces for participants

• Following and understanding a professionally created agenda

Value Proposition Canvas

3. Pains

1. For Students:

• International facilitators that are not experts in the subjects;

• Frequency of classes;

• English language barriers;

• AIESEC organizing errors

2. For Companies:

• Designing a curricula adapted for a young audience, that won’t be delivered by them but by someone else who’s not an expert

• Attracting and engaging the students of the Talent Pool

3. For Interns:

• Lack of understanding of how to create a “co-learning” or peer-to-peer learning space;

• Difficulties following-up the agenda of the project given limited understanding of the;

• Difficulties tracking the engagement of the participants and whether they are doing what they should be doing with their projects.

Value Proposition Canvas

4. Pains Relievers

1. For Students:

• Specific trainings for the interns to be able to deliver the content;

• Different time schedule for each group;

• The group as support system for language understanding

• Feedback systems and continuous improvement from companies, partners, participants, interns.

2. For Companies:

• Youth insights through a clear framework offered by AIESEC to adapt the agenda to youth audiences

• Clear delivery frameworks for the Interns co-designed between AIESEC and the companies.

• Student communication engagement strategies created by the company and adapted by AIESEC accordingly

3. For Interns:

• Training at the beginning of the project in how to host peer-to-peer learning spaces;

• Weekly follow-up and explanation about the agenda and the participants’ projects milestones and objectives for the interns from

the project organizing team.

Value Proposition Canvas

5. Job to be done

1. For Students:

• Registering and paying;

• Attending sessions;

• Working with teams and interns;

• Developing a specific project.

2. For Companies:

• Provide brand materials;

• Developing the curricula;

• Deliver sessions;

• Develop brand attraction strategies;

• Feedback the project

3. For Interns:

• Participate in initial trainings;

• Prepare the sessions;

• Co-facilitate the sessions;

• Feedback collection and improve based on it.

Value Proposition Canvas

6. Products and Services

1. For Students:

• Community access of like-minded individuals

• Sessions for business understanding hosted by international students

• International exchange platform

• Contact with companies

2. For Companies:

• Platform for contact, understanding and attraction of university students

• Platform for consumer branding

3. For Interns:

• Access to knowledge from a professional agenda

• Skills development spaces

• Business understanding spaces

• Provide the framework for their leadership development, through all the Delivery processes and activities.

• Showcase their experience, to enhance the meaning of their experience and generate more visibility.

Mid-term Ambition

The 2020 mid-term ambition

By 2020, 14.000 Romanian university

students will participate in this project.

Achievement Breakdown

2016 2017 2018 2019 2020

# of Beneficiaries 792 1800 2592 3744 5256

% of growth

compared to

previous year

- 127% 44% 44% 40%

# of Interns 264 600 864 1248 1752

% of growth

compared to

previous year

- 127% 44% 44% 40%

Total # of beneficiaries:14.184 Total # of interns:4.728

Jesus Navarro

National Director, Social Development

[email protected]

Ionut Ghidarcea

National Project Manager

[email protected]