Concept Essay Example
Prahalad (2004) cited in the Wharton University of Pennsylvania developed a concept that the poor in the society deserve to receive quality products and services Prahalad argues that encouraging people to venture into entrepreneurship gives the best solution in fighting poverty and people should not depend on handouts from governments (Thorpe, 2013). Allowing the poor to venture into entrepreneurship gives them a chance to create wealth in a way that is genuine and transparent (Cordeiro, 2013). Prahalad considers entrepreneurship as a fundamental element in fostering development in India. The concept has been put into work in a hospital in Bangalore where the hospital has come up with a health insurance for the poor peasant in the area. The insurance program requires the farmer to contribute on a monthly basis. Each farmer contributes 5 rupees and the government supports them by adding about two and half rupees. The resources pooled by these farmers have allowed the hospital to operate about 25, 000 farmers and give a free consultation to more than 85, 000 people every year.
The concept is very relevant in International Management since it can help in addressing the different problems that multinational companies face in the world. It can help multinational companies in controlling the various resources, including financial resources in ensuring they become successful. In addition, this concept can enable these companies in coming up with the most appropriate business model that will help them in getting more return for the resources invested in the business. This concept is all about allowing poor people to become good entrepreneurs. Introducing this concept to multinational companies and businesses may help entrepreneurs to come up with an advanced way of doing things and this may in turn help them cope with challenges; for instance, entrepreneurs may realize advanced ways of providing services, which is beneficial.
- Cordeiro, V. (2013). How Social entreprenuers fight poverty in Brazil's favelas. Retrieved on 24 February 2014 from http://forumblog.org/2013/11/how-social-entrepreneurs-fight-poverty-in-brazils-favelas/
- Thorpe, D. (2013, November 23). Three Young Entreprenuers Fighting Poverty Have Big Impact. Forbes. Retrieved on 25 February 2014 from http://www.forbes.com/sites/devinthorpe/2013/11/23/three-young-entrepreneurs-fighting-poverty-have-big-impact/
- Wharton University of Pennsylvania. (2008). C.K. Prahalad: The Poor Deserve World-Class Products and Services. Retrieved on 25 February 2014 from http://knowledge.wharton.upenn.edu/article/c-k-prahalad-the-poor-deserve-world-class-products-and-services/