Contemporary Business Strategy - The Big Issue
Transcript of Contemporary Business Strategy - The Big Issue
Kingston University
MSc in International Business Management
BS7103 CONTEMPORARY BUSINESS STRATEGY
INDIVIDUAL ASSIGNMENT
Submitted by: Maxie - k1270095Submission date: 14th August 2014
-------Lecturer: Dr Konstantinos Pitsakis
Words count: 2235 words
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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
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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.
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
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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
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
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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.
QUESTION 1Consider 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?
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INTERNAL STRENGTHS/ CAPABILITIESBased 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,
Decrease in the disposable
income
Free magazine
Online news service, technology
Effect of economic climate on
donations
Legislation on immigrants
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competitions
Further expansion into
international markets
Government & Taxes/ National
spending cuts
Work permit
Natural disasters
Rising critics
Threat of Substitution and New
Entries
Internal Macro Analysis
Porter’s Five Force
According to Morrison (2011),
Porter’s approach to firm
strategy concentrates on the
competitive forces.
ActingForce
Description Level
Supplie
r 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
Mediu
m -
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
CompetitiDirec
t
TBI offers the distinct values with a unique
distribution system. However, their product is
not completely different than others in whole High
Key players
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ve
Rivalry
general market
Indir
ect
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
Substitut
ion
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
Mediu
m
MCKinsey 7S
Shared
Values
StructureCEO
Board of TrusteesVendors
VolunteersSystemUnique
Involves all
member
StyleDemocrati
cStaff2000
vendors across UK
SkillsExperienc
ePassion
StrategyMarket
development
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Strate
gy
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
Struct
ure
The Big Issue Company, The Big Issue Foundation, The Big Issue
Magazine | CEO, Chairman and Board of Trustees, Vendors and
Volunteers
System
s
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)
StyleThe 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 philanthropyStaff Vendors, volunteers (for the distribution) and professional
writers, editors, journalism
Shared
Values
StructureCEO
Board of TrusteesVendors
VolunteersSystemUnique
Involves all
member
StyleDemocrati
cStaff2000
vendors across UK
SkillsExperienc
ePassion
StrategyMarket
development
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Skills Because of the unique type of distribution, vendors work to feed
themselves and TBI does not 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 High Internet usage
Rise in technology and innovation as the development of
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Technologi
cal
digital edition
Speed of delivery
Environmen
tal
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
ORGANIZATION CHART OF THE BIG ISSUE
According to the official website (Big Issue, 2014b), figure 2 illustrates
the current organizational chart of TBI:
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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
FounderJohn Bird
ChairmanSteve Round
Trustees
Eric Barnett
Harry McAdoo
Gisele Ryan
Carolyn Aitchison
Alison J Newman
Parveen BirdFounder's wife
Patrick Foster
Heidi Stewart
TreasurerJonathan Lachmann
CEOStephen 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 numberof social enterprises
Studies on socialentrepreneurship (up)
Increasing numberof events, competitions
Further expansioninto 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 methodof delivery
Certified charity status
Present on four continents
Award and trust Socially
responsible Good reputation
With the high sociallyresponsible of peoplein current time, therewill be potentiallythe most successfulstrategy by utilizingthe numerous humanresources around the
world to takeadvantage of
opportunities in theglobal market
Promote brand image towardsmonopoly. Increasecredibility through
organizing social campaign(e.g. give speeches, do PR).
Maximize the potentialbenefits from the vendors
and build strong reputation.The economic crisis will
raise unemployment but lookon bright side, it extendsthe number of workforce
Maxi-Maxi Strategy Maxi-Mini Strategy
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Internal Weaknesses(W)
No control over workers
Not fully sustainable
Vendors nationally, lackof trust
Mostly immigrants vendors (Stereotypes)
Price and youth targeted
Low brand loyalty/ awareness
Reputation basedon reputation ofhomeless population
Strengths could beweaknesses sometimes.
With a number ofvendors are still
developing, areasonable strategy isto gather vendors insame area into groupswith some of them canbe leader of the team(i.e. has managers ineach group to givesupport, training,
experience as criticalawareness of the dutyto other members)
Minimize weaknesses bydeveloping management teamsto find flexible ways toovercome the potentialrisks. Concern about the
digital application duringthe current technology.Transform the risks and
weaknesses into theadvantage by emphasizing the
special values of TBI'sbrand in the market. Work in
Partnership with otherassociations to raise a
bigger budget and be able toimprove the magazine, expendin other markets and make
the brand known.Mini-Maxi Strategy Mini-Mini Strategy
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
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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)
QUESTION 2Evaluate 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?
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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,
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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.
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
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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
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magazine industry will gradually oriented to digital magazine
subscriptions. Nevertheless, the risk from the threat of new 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.
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Figure 4. (Big Issue, 2014e)
QUESTION 3How 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
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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
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organization geared towards charity and community benefits will probably
always stand for all time.
Which stakeholders might inhibit them from adopting these options and how could the
decision makers resolve such conflicts?
Stakeholder mappingRather than the typical quadrants, this adapted version below illustrates
the relationship between power and interest of TBI:
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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 StakeholdersGovernment
Charitable Firms
Public (Charity Fund Raising)
Partners (e.g. TSELF)
Customers
Vendors
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.
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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.
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.
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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 December2013 [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 andpractice. London: Sage
Dailymail (2013) ‘Big Issue, from street to the City: Homeless magazinebranches 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-
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magazine-branches-fund-management-bid-raise-250m.html [Accessed: 8th August2014]
Keynote (2013) Lifestyle Magazines Market Update 2013 [Online]. Availableat: 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 January2012 [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]
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 inChief) and Gordon Roddick
Type: Fortnightly independentmagazine, non-for-profit socialenterprise
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Industry: Entertainment
Founded: September 1991
Headquarters: London, UK
Founded: September 1991
Countries served: UK, The Republic ofIreland, 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:
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Other releavant data and information from TBI’s official website can be
given as following:
The Big Issue
Buy the magazine cheaper from TBI to
sellReceive support in: housing, finance, health, future
planningOwn mini-enterprise
VendorsCorporate Donations
GrantsGoverment fundingCharitable Trusts
The Big Foundation
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Big Issue (2014) [Online]. Available at: http://www.bigissue.org.uk/