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Please provide a summary of the information provided below.

Please provide a summary of the information provided below.

Understanding Business
Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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7:34 a al 100% .:: e Not only did the Coverage reacn a gIcOar Su0IIco, Ipeo who wers nterosted in eolar lighting in general and Nokero's lanaging International Operations In 2010-2011, Nokero has benefited from dozens of stories by traditional print media and TV networks and hundreds of stories from news and social media, including sources from abroad such as O Globo (Brazil), Sydney Times (Australia), Air France, and Sudwestrundfunk (Germany). In a story titled "A Solar Light Bulb May Light the Way," The New York Times noted that "Where Nokero's bulb appears to break ground is in its design; it is small enough to carry, self-contained, highly durable and features a replaceable battery." In another article, "The Power of Light," The Denver Post lauded the environmental, health, and safety benefits of Nokero's products and the social entrepreneurial aspects of the company's business model. Social media, particularly blogs, have been a powerful way for the company to create community groundswell support. In July 2010, an influential London businessman offered support to the company, an offer that led to an endorsement of Nokero's products by popu- lar soccer star Didier Drogba of Cote D' Ivoire. Social media have also been instrumental in creating awareness and mobilizing community participation in social initiatives championed by Nokero and other partners. For example, Nokero has partnered with Project C.U.R.E on a buy-give program. Under this program, customers who buy a solar light bulb from Nokero can give a second light bulb to Project C.U.R.E. that the latter will distribute to people in need throughout the world. Similarly, filmmaker Kurt Mann's organization, American Green, brought light bulbs to Haiti to help victims who have been devastated by the country's earthquake. Nokero and America Green have jointly set up a program, "The Gift of Light," for people to donate light bulbs to Haiti. Most recently, Nokero responded to the earthquake in Japan by instituting a program that led to the donation of over 2,000 light bulbs within a few weeks after the catastrophe. Growing the Business Opportunities in Working with Governments and International Organizations Several governments, international non-governmental organizations, and international agen- cies have approached Katsaros and Nokero on a number of potential large-scale partner- ships and projects. A group out of France is exploring the sales and distribution of solar light bulbs to Africa by leveraging a carbon-credit-based financing program. The same group successfully executed a similar program with fluorescent bulbs. Likewise, the governments of Mexico and Congo are pursuing the idea of buying Nokero's products for distribution to people in their respective countries who are earning less than $2 per day (i.e., bottom of the pyramid consumers) and do not have access to electricity. Katsaros and his team have also initiated discussions with international agencies, such as the United Nations, USAID, and various international foundations. While governments and international organization sales represent attractive opportunities for Nokero, they have posed three major challenges. First, the sales cycle in these organizations tends to be long and requires specialized skills and major business development resources. To address this challenge, Nokero has brought on board a consultant who is knowledgeable and networked with these kinds of entities. Second, the company would have to significantly scale production to fill larger orders from these governments. The governments that Nokero has been dealing with have talked about buying not thousands but millions of light bulbs. In addition, these governments are also likely to pressure Nokero to lower its price. Third, selling to these governments portends production and supply chain challenges. Can Nokero continue to supply all of its light bulb orders from a single factory location in China? Should the company maintain a fulfilment warehouse in Africa, Asia, and Latin America? And how should the company help these governments address the last mile issue of accessing people in the most remote locations? II
Transcribed Image Text:7:34 a al 100% .:: e Not only did the Coverage reacn a gIcOar Su0IIco, Ipeo who wers nterosted in eolar lighting in general and Nokero's lanaging International Operations In 2010-2011, Nokero has benefited from dozens of stories by traditional print media and TV networks and hundreds of stories from news and social media, including sources from abroad such as O Globo (Brazil), Sydney Times (Australia), Air France, and Sudwestrundfunk (Germany). In a story titled "A Solar Light Bulb May Light the Way," The New York Times noted that "Where Nokero's bulb appears to break ground is in its design; it is small enough to carry, self-contained, highly durable and features a replaceable battery." In another article, "The Power of Light," The Denver Post lauded the environmental, health, and safety benefits of Nokero's products and the social entrepreneurial aspects of the company's business model. Social media, particularly blogs, have been a powerful way for the company to create community groundswell support. In July 2010, an influential London businessman offered support to the company, an offer that led to an endorsement of Nokero's products by popu- lar soccer star Didier Drogba of Cote D' Ivoire. Social media have also been instrumental in creating awareness and mobilizing community participation in social initiatives championed by Nokero and other partners. For example, Nokero has partnered with Project C.U.R.E on a buy-give program. Under this program, customers who buy a solar light bulb from Nokero can give a second light bulb to Project C.U.R.E. that the latter will distribute to people in need throughout the world. Similarly, filmmaker Kurt Mann's organization, American Green, brought light bulbs to Haiti to help victims who have been devastated by the country's earthquake. Nokero and America Green have jointly set up a program, "The Gift of Light," for people to donate light bulbs to Haiti. Most recently, Nokero responded to the earthquake in Japan by instituting a program that led to the donation of over 2,000 light bulbs within a few weeks after the catastrophe. Growing the Business Opportunities in Working with Governments and International Organizations Several governments, international non-governmental organizations, and international agen- cies have approached Katsaros and Nokero on a number of potential large-scale partner- ships and projects. A group out of France is exploring the sales and distribution of solar light bulbs to Africa by leveraging a carbon-credit-based financing program. The same group successfully executed a similar program with fluorescent bulbs. Likewise, the governments of Mexico and Congo are pursuing the idea of buying Nokero's products for distribution to people in their respective countries who are earning less than $2 per day (i.e., bottom of the pyramid consumers) and do not have access to electricity. Katsaros and his team have also initiated discussions with international agencies, such as the United Nations, USAID, and various international foundations. While governments and international organization sales represent attractive opportunities for Nokero, they have posed three major challenges. First, the sales cycle in these organizations tends to be long and requires specialized skills and major business development resources. To address this challenge, Nokero has brought on board a consultant who is knowledgeable and networked with these kinds of entities. Second, the company would have to significantly scale production to fill larger orders from these governments. The governments that Nokero has been dealing with have talked about buying not thousands but millions of light bulbs. In addition, these governments are also likely to pressure Nokero to lower its price. Third, selling to these governments portends production and supply chain challenges. Can Nokero continue to supply all of its light bulb orders from a single factory location in China? Should the company maintain a fulfilment warehouse in Africa, Asia, and Latin America? And how should the company help these governments address the last mile issue of accessing people in the most remote locations? II
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