Area ——Ecological Agriculture Project Title： The...

2019/9/23 Social Project 2.0--Team 1

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Social Project 2.0

Project Title： The Anti-povertyProject For UnderdevelopedArea ——Ecological AgricultureEconomyQINYOU YANG,

HAOHUAN LENG,

Haibing Zou,

JIAWEN WEI,

YiCI Zhang,

Yanlin Wu,

Zeng Wang,



Summary

In this program, we will start with our firm, COCOFARM, in Chengkou, Chongqing.Our firm will focus on the organic agriculture and dedicate to the development ofthe underdeveloped rural area. We aim to solve the problems of poverty trap andhelp the residents to keep up with the society. The culprits of these seriousproblems are caused by the poor education, local environment, and other factorsthat will mention in our analysis later. We plan to provide solutions, include thefinancing strategy, management system, and marketing strategies to establish acomprehensive industry chain. By predict the possible problems (for example, localvillagers may not join us), risks and cost, we also come up with some brilliantproposals to deal with these challenges. The most important thing is our profitableprospects. With the development of economy and the growth of the middle class,public demand for ecological agricultural products is increasingly expanding. Theenormous demand can generate considerable profits and lead to the flouring of theorganic products market. Consequently, the huge number of people who demandthe healthy food is our target customers. This plan can not only solve the seriouspoverties but also make organic food available to everyone. Getting profits from thetarget market and helping as many people as possible is the purpose of ourCOCOFARM, which matched with the concept of social project 2.0. In the followinganalysis, we will explain how can we encourage people to join us and get enoughresources to run the program.



Identify the Topic

Topic Description

This project aims to alleviate the poverty though the non-reimbursable assistanceof technologies, facilities and constructions of the industries so that thecomprehensive ecological industries can be established. It will demonstrate thefeasibility of the application of Public philanthropy 2.0with actual circumstances ofthe society. Ultimate and effective solutions should be based on progressivelyconcrete development and follow the market rules. That is to say, anti-povertyprograms are not the eleemosynary supports or moral responsibilities, but themarket activities to make more profits. We consider our program, Cocofarm, to bethe commodity. We sell it to our consumers, and improve the quality of the goodsand create values for both society and investors. This essay will elaborativelyanalyze the cost-benefit equation of the possible implication generated by theapplication of this plan. The analysis will generally follow the developing process ofthe industries, including previous market research, preparative construction, furtherdevelopment, additional application, capital raising and management, utilization oflabor force, sustainable development, cooperation with other communities, andadvertisement.

Why it is important

Social perspective Contemporarily, the public assistance to alleviate the poverty is questionable due tothe unsustainable development and regional limitation. In order to refine the localeconomic structure and industries in the backward areas, the conventional methodsare not plausible in today’s society because of the serious unbalanceddevelopment. As a result, the demand for an adaptive poverty solution toaccommodate different social and economic situations become increasinglyconcerned. Environment perspective With the rapidly spread of mechanization and industrialization in our society, themarket for the ecological, organic and healthy foods take more significant stance.



Such a growing market provides unpredictable opportunities for the area withunpolluted natural environment, usually some less developed region. Economic perspective Significant comparative advantages and barrier-free market make this plan (i.e.solve the poverty through the development of the ecological agricultural industries)become more feasible. These areas are lack of productive labor force (i.e. hugenumber of illiterate people, aging population, children). The poor infrastructure,immature market system, and barren land intensified the poverty. In addition, theineffective use of the resources, and the improper prediction to the market trendaggravate the vicious circle. Monopsony Market: Even though the local residents have produced organic honey and wild tea before,they have no factories or firms to process it. In addition, because the limitedpopulation of the indigenous villages, the demand of the products is not matchedwith the supply. As a result, they have to find retailers to sell the goods. Thedilemma is that, the retailers buy the products at a price much lower than themarket equilibrium level and they have no other choices. Consequently, theireconomic problems can’t be modified without external assistance. However, the ecological agricultural industries can take the advantages of theseareas, such as the cheap workforce and raw materials, and adjust the measure tolocal conditions to solve the regional poverty and encourage the overalldevelopment of relevant industries as well as set on the unprecedented bloom ofthe local economy. This plan will follow the idea of Public philanthropy 2.0, andcombine the modern technologies and methods together to creatively andcomprehensively help the poor regions and provide more applicable instructions.



Problem Diagnosis

Identify the Underprivileged

Background Information： Chengkou is a town located remotely at the edge of Chongqing administrativedistrict, with an area of 3289 square kilometers and a permanent residentpopulation of 184.3 thousand. In this program, we consider the dwellers whose family income is less than 60000RMB per year (calculate without other financial support) as the underprivileged. Population feature 1. Relatively low level of education Local residents face challenges building up a formal system of education because ofsevere financial problems resulted from the great gap between urban areas andrural region. Most of local population never receive any regular education or giveup the opportunity to learn further halfway in their school careers. This fact directlyleads to the situation that more than half of natives never go beyond a diploma anda knowledge level of junior high school. Limited knowledge hinders them fromhandling high-tech or accomplishing complexed tasks. 2. Exclusiveness As a result of lacking education, local people display an attitude of exclusion towardany technology or idea coming from anywhere outside their own territory. Itappears hard to introduce a new concept into their original cognition, for theircognition have been fixed at an early stage of their life. Moreover, benefit fromadvantageous natural conditions, agriculture has been well developed bygenerations. Experienced famers who have formed a complete system of farmingmethods may stick to their own agricultural methods and show a tendency to rejectthe use of more advanced, more efficient technology. 3. Experienced at farming but unskilled in other respects By looking from another perspective, the failure in education allows them moretime to accumulate experience on farming. Local people have mastered basicagricultural rule and could complete agricultural activities by individual. However,because they have received little training in other respects, they exhibit anineptness when asked to do jobs other than farming.



4. Low income Most people receive an income that are just above average poverty line, which is3000 yuan per month, or even below that, and still live a hard life. With limitedmoney received every month, they could support their basic need of living, butcannot move forward a single step to improve their standard of living. 5. Aging problem and lack of vigorous labor When most local young people decide to leave their hometown to seek for bettereducation opportunities and more profitable jobs, aging population and childrenare left behind. A relative weakness on their physical strength places a restriction onthe range of work that can be distributed to them. Also, this phenomenon of "left-behind population" exerts even more pressure on the youngsters, because at thesame time being educated, they have to share farm work with the elder and takecare of their grandparents when the major labor force is far away from home. 6. Lack of innovation After the field research, we find that the local economy is even worse than weprevious thought. As we all know, there will be a periodic fair or a street market inChinese rural area called “ganchang”. These economic activities allow thecommodities to be exchanged and promote the flow of resources. Both producersand consumers will be the beneficiaries. But in that area, people are not used tohave that kind of activities. All the stores and dealers are diffused. The stores sellproducts that have little demand, such as air conditioners, television, or washingmachine. Local residents have little awareness of business, not to mention creativity.

Identify the Product or Service

Cocofarm will provide various products and services to consumers and theunderprivileged to meet the needs from the market and the local people. Pleasurable products for customers: 1.Organic food include but not limited to crops, livestock and associated goods, like potatoes, tea,smoked pork, rice noodles...... 2. Personalized services and products



a. Individualized customization of the organic products (the service that provide small scale private farm which are run by the program) b. Small smart investment financial service product which is related to our service (a small investment on our Cocofarm, which provides a low risk with a higher returnthan government target interest rate. And at the same time the financial productitself are investments in Chenkou economy, so it can help others. c. Bargain platform (people can use goods, or old objects that local dwellers in demand to exchangesome organic crops, which satisfy the needs for both farmers and customers) d. Farm associated DIY goods Some vessels, decorations, or furniture that can be customized, which are madefrom the plants residents cultivated, such as bamboo. These services and products are not only profitable, constructive, and meaningful;but also reveal considerable prospects and expandability. Supportive products and services They refer to the intangible goods that could make contributions to the supply sidereform. a. Application of the organic agricultural technologies (Include ecological production system, Vegetative insecticidal protein , and otheruseful and economical technologies) b. Management and marketing strategy (explained later in the service part) c. Cooperation platform (interact with some organization, companies, universities to get help or supports) d. Crowdfunding services to gather the tiny pieces of the dispersive resources to help as many people aspossible. e. Professional education & train offer our workers and the indigenous people chances to learn about the agriculturalskills in some professional company or other mature farms, even pay for them tosystematically learn some skills in order to cultivate their independent developmentability. To be brief, all these are used to change the market structure and make the local



economy keep up with the society and provide chances for them to work on thefarm that can make a difference. This program will carry out two different sections, the production sector andmarketing sector. Sectors that located in the rural areas are responsible for theproduction activities and management while the marketing section is in the urbanarea and run the company. To be more specific, production sectors are comprisedof local agent managers and technical advisors. Local people can get preciousexperiences to start their own business or find a better job by join the program.They can also be the beneficiaries of the advanced technologies and managesystem. All these practices aim to help them be independent and more professionaland skillful. Since we plan to use Laissez－faire mange system, in order to meet theneeds of the local people while follow our dominant strategy, villagers can also earnmore interests from the comprehensive and brilliant marketing strategies, which arenot available in that region. As they have developed technologies, strategies, andskills, they can enter a bigger market and become more competitive so that theycan be wealthier because of the enlarging business cycle.

The Value-chain Analysis

Infrastructure: As an ecological farm, we need some basic infrastructures including the wastemanagement facilities, forced ventilation system, fermentation system, powersupply and electrical equipment, drainage and irrigation system (sprinkling and dripirrigation facilities, sprinkling irrigation network), and stereoscopic breedingsystem… Human resources: At first, to encourage the local residents to participate in our project and improvetheir live quality, we will give priority to them. At the same time, we will also recruita certain number of experts to teach our employees some professional knowledgeand efficient technique. And secondly, our interview will give our interviewees someimportant questions to determine which field they are most suited for. Thirdly, wealso have performance incentive to encourage them work hard. Besides, we alsoprovide our employees with basic workfare to improve their satisfaction of working.And last, we will provide our employees with specific career planning, to give thema chance to achieve higher.



Procurement: For procurement, by drawing lessons from the existing eco-farms in other areas anddepending on local conditions, we will purchase the fertilizer, crop seeds, fish fry,duck, lotus root, earthworm, fruit seedling, and other improved breeds for ourstereoscopic cultivation. Technology: Ecological environment management technology: Soil erosion control technology - salinization soil improvement technology Sewage self-purification engineering technology Stratified culture technique Renewable energy sources development technique Biogas utilization technique Renewable energy (solar, wind and water) development and utilization technique Cyclic utilization of organics technique Compost technique Straw gasification technique-straw liquidation technique-straw compressionmolding technique Arable farming technique Inbound Logistic: To maximize the influence of our program and ensure the feasibility, the indigenouspeople will serve as the sailors of our activities while our firm will be the captain ofthe ship. a. Raw material: We will buy the raw material from the local people with the marketprice (some retailors buy their products with a much lower price before) b. Transportation: At the beginning, we will hire some indigenous people to help ustransport the raw materials. When the program become mature, we will help thelocal postal industries to be flourish. c. Storage & Distribution: Before the demand of our products is large enough tocover the cost of building a warehouse, we will rent some rooms from the localpeople store our goods. This can also efficiently use the resources and bring someextra income for the people. d. Quality control: Our employees will routinely check the products randomly toensure the safety and the quality of the products will buy form the local farmers. Production: Technical support Train the indigenous people and provide necessary equipment for them. Byupdating the facilities, the efficiency and the quality of the good can be improved.The local people can learn some useful skills to create some popular goods so thatthey can earn more from this program.



Operation: Provide some facilities and technologies to support and encourage the indigenouspeople to produce the organic agricultural products as well as follow the previousproduction plan without improper intervention. In this case, the potential risks thatmight be generated by the inaccurate prediction of the market can be reduced tothe lowest level. The demand of the goods will be satisfied by the inventories orsurplus products of the local farmers, which are ran by the regional manager (aauthoritative person). In other words, the individual production will take thedominant stance during the introductory phase rather than large scale standardizedproduction. Farmers can get extra profits from the cooperation and avoid the lossbring by the unsaleable inventories. As the market size and consumers increase, thegoal of achieving a more profitable and effective industry can be realized bypromoting expansion. As a result, more people will be attracted by the lucrativeindustry and join the project. Outbound Logistics: It is mainly about storage and transportation of finished products. In the early stage, it can be transported through the existing express company'scold chain. Later with scale after the establishment of transport departments, door-to-door delivery we will provide home delivery service. At the same time for door-to-door pick up store pickup customers to give concessions，we will give storepickup customers discounts. We will set up distribution points. And for those whobook in advance. When the order accumulates to a certain amount, the goods canbe collected at distribution points. Customers need to book in advance, once ourstore collects enough orders and we will provide delivery service. Marketing and Sales To satisfy different kind of customers, our marketing strategies will be separatedinto two parts. a. Retail By using online APPs and platforms, our products will be available to everyindividual. This will provide an unprecedented opportunity for the local economy togrow. Previously, local economy is nearly closed and isolated from the wholemarket. However, the enlarging market can stimulate the entire local society. b. Wholesale The main part of the products should consumed by a guaranteed and long-termbuyer. So, we plan to find some large companies, school, restaurant, and otherpossible consumers who have an enormous long-lasting demand. In this way, wecan have a market share as big as possible. The underprivileged people can have areliable income source and job.



Pricing: For the retail goods, we will set the price at high level, recognizing that lower priceswill inhibit sale rather than encourage them and buyers will associated a high pricefor the product with superior quality. For the wholesale goods, we will set the priceat around the market average price. Product： pleasurable products and services for customers＋supportive products and servicesfor local workers （ mentioned in the “identify the product” part) Promotion: Seek help from government and conduct cultural publicity activities. We couldattract more potential consumers or institutions like schools and food processingcompanies then promote cooperation. We will also promote our product accordingto social media, public speech，and feature stories on magazines and TV programs. Place: 1.online selling We can set up an App to sell the goods and other services online. 2.wholesaler---retailers 3.large scale long-term consumer Such as a restaurant, school cafeteria, or some food companies. 4.pick up point In the long-run, we will establish our own transportation system. These pickuppoints play as a delivery station 5.cooperator promotion

Identify the Key Issue

How to get local people to accept and participate in the project is the mostsignificant problem. For most local people, they are conservative in previousbusiness style and the elderly may feel that they are less productive and unwillingto join the production procedures, or they may feel that they are more experiencedin traditional agriculture and cannot accept other people's training.take advice fromothers. Young people with less education think it is more practical for thegovernment to give money directly to them, or they think it is better for them totake the money and leave their hometown to work in the townsbig cities. Left-behind children, who are minors, don't understand the real meaning of the public



welfare program and don't know how to participate in it to increase production. Thelocal government and the public may also have a potential rejection psychologytowards this model, and may think that the establishment of this company willaffect some ordinary people who are originally engaged in this industry, and form acompetitive relationship with them. Moreover, this project is in conflict withtraditional agriculture and their cognition.



Problem Solving

Generate ideas

A. Gradual Reformation Provide some facilities and technologies to support and encourage the indigenouspeople to produce the organic agricultural products as well as follow the previousproduction plan without improper intervention. In this case, the potential risks thatmight be generated by the inaccurate prediction of the market can be reduced tothe lowest level. The demand of the goods will be satisfied by the inventories orsurplus products of the local farmers, which are ran by the regional manager (aauthoritative person). In other words, the individual production will take thedominant stance during the introductory phase rather than large scale standardizedproduction. Farmers can get extra profits from the cooperation and avoid the lossbring by the unsaleable inventories. As the market size and consumers increase, thegoal of achieving a more profitable and effective industry can be realized bypromoting expansion. As a result, more people will be attracted by the lucrativeindustry and join the project. B、Agent Effect Interact with local teenagers and adults, help some of them recognize the potentialprospects of the organic agricultures and Public philanthropy 2.0. Gradually, theywill affact others and instill a positive impression in their mind and then they willaccept COCOFARM. Nominating some authoritative people as the manager of thatregion will greatly reduce the barriers and promote the better cooperation andcloser relationships. C、Subsidies Give some subsides to support the farmers to start a organic farms or providessome non-profit loans to help them found the necessary infrastructures. Thesepromotions will encourage the indigenous people to run their own business andwork harder. In this case, increasing people will come back to the village and jointhe program. D. Agriculture Education Hold lectures and recruit brilliant volunteers with relevant skills and knowledges likethe irrigation, cultivation and etc. Let them visit the local resident and experiencethe local life to better understand this place so that they could more easily guide



the local people into the project by promoting their project ideas and conductinguseful lectures. At the same time, the volunteers will tell the residents about thebenefits of COCOFARM and ways they would go to achieve the final goal of theproject. In that case, the local people would be more likely to participate in thisproject. E. Demonstration Plot Employ a small number of local people first to exploit some experimental plotswhich we would utilize our thoughts and modern technologies on it, and then thepeople could see the that this project is really good for themselves. Consequently,the hard facts and beneficial results would move the residents so that increasingnumber of people would like to accept this project and have a try. F. Visitation Lead some local representatives to visit other exist eco-farms, let them betterunderstand the present situation and prospects of COCOFARM. They will see thisproject is neither difficult nor profitless for them to invest, instead, they will clearlyknow about how much this project will improve their life. By having a deeperunderstanding and judgment on this industry, they will better accept it. G. Welfare Attraction Provide the participants with convenience. In the early stage of this project, thegovernment and local commercial organizations will reconcile and reach acooperation, a situation which people will acquire more employment opportunitiesand jobs, so that the surplus of the labor would be solved. What's more, theparticipants can strive for opportunities of study and work for the rest of theirfamily. They will sign the labor contract, and after a period of time they worked,they could choose to leave or stay. Of course, if they stay, they would have bettertreatment. This will stimulate the local people to more participate in the project andtheir family members would more likely to stay at their hometown as well. H. Trial operation Trial operation. After this project goes on for a period of time, which the losses inthis process will be borne by us, and the profits will be distributed by themselves,they could see the effect of this project and then they could decide whether theyshould continue this project or not. This proposal will minimize the risk of the localpeople, and then more people would like to participate in It. I. Internship Base Cooperate with relevant agricultural and business schools to create an internshipbase which will encourage the students and experts to teach the local people someprofessional skills and knowledges. These authoritative institutions and experts willincrease people's trust and make them more actively involved.



J. Public Opinion Guidance Through the network platform, promote the ecological agriculture in this area andraise the awareness and reputation by advertising, to make local people understandthe true meaning of this project, and they would also know what they will do is notonly beneficial to their own life, but also to the environment and the whole society.By doing this, the local people will be more confident about this project and thenthey are more likely to accept it and participate in it. K. Cooperation with Government Cooperate with the local government, and initially develop an experimental areawhich the government will reduce or eliminate the tax in that area. At the sametime, hire the local people to participate in and utilize the help of governmentresources to shape our project rapidly. When there are many famous companies inthis area, the locals would more trust us and get involved. L. Cooperation with Companies Cooperate with other enterprises like hotels and restaurant, confirm the sales. Directhiring of local people and gradual devolution of management to the local peopleunder the third-party supervision. The enterprises would increase the interest of theresidents for working in their hometown. Under the influence of the third party, thelocal residents will be more confident about this project and participate in itactively. M. Flexible Investment Purchase or contract the existing farmland, or allow the famers mortgage theirfields to become the shareholders of this project. The local people can use theirown resources to support this project, and on the other hand, they could becomethe owner of It and receive the dividends from time to time. In that case, theenthusiasm for taking part in this project and production would be largelyincreased.

Evaluation Criteria

Whether this proposal is attractive to the investors? Whether the local people would support us and participate? Is the cost-benefit equation of this solution acceptable? How well does the solution solve the key issue?



Whether our activities would damage the local natural ecological and commercialenvironment?

Rating Sheet

Rating Sheet

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Scalability

1.Increased employment Since our company require human capital for production, we will recruit labor fromlocal residents. We would offer job opportunities to the local and pay them salary.This measure is likely to raise the participation rate within the region of ChengkouCounty. Expectantly, what our company attempts to do could promote thedevelopment of organic agriculture in the long run. As the industry expands, alarger number of labors will be required, which leads to a further decline in the rateof unemployment. As our workers become more productive and experienced, ourcompany would also benefit from it, since the output of the firm would increaseaccompanied by increase in labors. The total revenue of the firm is supposed toincrease as well. 2.Channel to profit Our company makes profit mainly by selling agricultural products, including fruits,vegetables, meat, and organic food, and secondarily from the related services weprovide. Our company would receive a dividend from the total revenue generated,and the rest would belong to the workers in return of their labor. The workers aremotived to work harder and become more productive, thus they are supposed tobe loyal to our firm. As a result, our firm will generate more profits. 3.The market expansion plan After achieving early success in selling, we will reinvest the money in upgradingtechnology in order to expand the production and raise quality of products. Withincreased quantity of products and reliable product quality, we have confidence totake up a larger market share as the project develops. When the influence of ourcompany grows to a certain level that allows a step forward, we would considerbuilding up the second or more organic farms in regions of poverty that meet therequirements for such reformations. 4.Cultural transformation At the time our company helps local people form their own industries and providethem with a stable income, we also offer them chances to communicate and get intouch with outside world, contributing to cultural communication andenlightenment. Hence, the project can effectively broaden the limited channel ofinformation and give the underprivileged a wider access to more resources.Moreover, there are lots of traditions in those remote areas facing the risk of beinglost forever. We believe that if they are able to get in touch with outside world, the



public will pay more attention on preserving this tradition, resulting in a win-winsituation. Lastly and the most importantly, through this channel of communication,more public attention will be aroused toward our company, from individuals toorganizations, bringing more fames, more than the product itself, to what we aredoing. We would attract more consumes and gain more profits. 5.Sustainability Having stable income while investing the underprivileged guarantee thesustainability of our company and distinguishing us from traditional public welfareprogram. Hence, we can ensure the unceasing development of our company andthe high-quality investing of more and more underprivileged. In other words, ourcompany has the ability of expanding and self-supporting.



Action Plan

Industry Analysis With the development of economy and the growth of middle class, public demandfor ecological agricultural products is increasingly expanding. The conflict betweenpeople's unlimited desire and finite natural resources cause the market supply anddemand to be stuck in long-term unbalance. Other than natural condition, thefactors that hinder the further advancement of ecological agriculture also includeobscure standards of production and unpopularized technology. Despite of allthese risks and restrictive factors, there are a great amount of companies beingattracted into the industry for high revenue and expansive potential space for futuredevelopment of this industry, and this situation sharply intensifies the competition.Benefitted from a large area of untapped land and a considerable number ofagricultural labors, some regions of development embrace an inherent advantage inthis competition. Related service and products such as transportation, marketing,management, and publicity will also face opportunities and challenges with thebooming of ecological agriculture. Financing: Small smart investment financial service A small investment on our Cocofarm provides a low risk opportunity for people tohelp others and also get some payback or healthy foods. Crowdfunding services Gather the tiny pieces of the dispersive resources to help as many people aspossible. Since the investment for an individual is so small that will not generatesany considerable risk, people may be prone to try something new like this program. Flexible Investment Purchase or contract the existing farmland, or allow the famers mortgage theirfields to become the shareholders of this project. The local people can use theirown resources to support this project, and on the other hand, they could becomethe owner of it and receive the dividends from time to time. In that case, theenthusiasm for taking part in this project and production would be largelyincreased. Cost saving strategies: Bargain platform



(people can use goods, or old objects that local dwellers in demand to exchangesome organic crops, which satisfy the needs for both farmers and customers) Management and marketing strategy(explained later in the service part) Cooperation platform (interact with some organization, companies, universities to get help or supports) Professional education &train offer our workers and the indigenous people chances to learn about the agriculturalskills in some professional company or other mature farms, even pay for them tosystematically learn some skills in order to cultivate their independent developmentability. Company Profile Two major divisions will constitute our company -- the division of production incountry, where the productive process is carried out and the division of marketingin town, where the final products are sold. The division of production is in charge of managing and supervising agriculturalproduction to ensure the product quality and continuous supply. The division ofproduction is comprised of 6 minor departments, which are the department ofepidemic prevention, the department of cultivation, the department of storage, thedepartment of research and development, and the department of administration,each responsible for one specific aspect of the whole productive process. -The department of transportation is mainly in charge of the purchase of rawmaterials and the transport of final products during the entire production chain. -The department of epidemic prevention is mainly in charge of the diseasedetection and prevention for crops and livestock and all the sanitation work in theprocess of production. -The department of cultivation is mainly in charge of the operation andmanagement of the ecological farm and a series of production work includingseeding, breeding, and so on. -The department of storage is mainly in charge of seasonal and yearly harvest andthe storage of surplus materials as well as products. -The department of research and development is mainly in charge of the cultivationof improved variety and products development.



-The department of administration is mainly in charge of personnel management,communication between two separate divisions, production schedule planning, andother management jobs in production procedure. The division of marketing is responsible for marketing management, developmentplanning, and resource allocation. The division of marketing is comprised of 4departments, which are the department of promotion, the department of sales, thedepartment of strategy planning, and the department of administration, eachresponsible for one specific aspect of the sales process. Personnel System a. Incentive The incentives can be very multiple and based on the evaluation system mentionedlater. We plan to provide encouragements other than cash and stocks to ouremployees, include further training program, free education to their children, orsome useful facilities, like a smart phone. All in all, the incentives should not only bevery encouraging, but also be very useful and constructive. b. Promotion system We plan to make our firm’s structure very flexible, which means the mobility of themanagers is very high. For different department, we will access the employeesbased on different standard. These standards include the daily tasks of theirdepartment and some special contributions. Also, their records of avoidablemistakes and other unacceptable disadvantages will also take a stance. We will pickup the best 5% of the employees to promote and worst 5% to demote based on therank within their department every 6 months. In this case, we also encourageemployees to compete with others. The promotion system will be separated intotwo parts, city employees section and rural employees section, to ensure theequality. c. Evaluation system The evaluation system will be available online for every individual to supervise andget to know. This system includes the regular attendance, overtime work, andmistakes they make. For different department, the evaluation will be various. Somedepartment will focus on the flow of cash, some emphasize the outcome of theirproduction, some are the amount of cargo they transported……These differentdepartment will finally form a ranking list within their sections. Employees areseparated into different levels (for example, the top10%is A, 20%is B……)based ontheir efforts. They can have the sense of achievements if they are diligent or senseof shame if they are lazy. Making the evaluation system available online willencourage employees to work harder.



1.Introduction stage: At the beginning of our program, the managers and supervisors will be ourcompany’s employees from the cities. They should be well educated and highlyresponsible. They will build up the framework of our program and help run the localdepartment. In other words, the management will be centralized at the beginningstage to avoid the crisis that can be caused by poor educated managers andunskilled workers. 2.Growing stage: We will gradually make the management style more flexible with the developmentof the local society. For one thing, we will cultivate and train more possible localmanagers. For another thing, we will give some different opportunities to ourprevious managers. They can choose to come back to the city to be counselors orgo to another place to be the frontline managers to expand our program. Withoutdoubt, the incentives will be differentiated to show the priority and contributions.At this stage, we will encourage the indigenous people to replace the city managersand become more independently. 3.Mature stage: A few professional counselors in the local production department are stillindispensable. They can ensure the future development of the program andsupervise the quality and the production process. Local people should have theabilities to run the program by their selves. To further encourage them and controlthe program, we will give the best local managers chances to work in the urbanarea and provide more attractive incentives and training to them. It means we willroutinely change the local managers to guarantee the controllability and solve theeconomic dilemma (the vicious circle). In addition, fresh men and managers will betrained and selected by the previous local employees before they leave. Therefreshing employees can also make our firms more energetic and flexible. Operation Core strategy: Gradual Reformation Provide some facilities and technologies to support and encourage the indigenouspeople to produce the organic agricultural products as well as follow the previousproduction plan without improper intervention. In this case, the potential risks thatmight be generated by the inaccurate prediction of the market can be reduced tothe lowest level. The demand of the goods will be satisfied by the inventories orsurplus products of the local farmers, which are ran by the regional manager (aauthoritative person). In other words, the individual production will take thedominant stance during the introductory phase rather than large scale standardizedproduction. Farmers can get extra profits from the cooperation and avoid the lossbring by the unsaleable inventories. As the market size and consumers increase, thegoal of achieving a more profitable and effective industry can be realized by



promoting expansion. As a result, more people will be attracted by the lucrativeindustry and join the project. Preparing stage: Further investigation of the local natural environment and social condition andanalysis of regional advantage and potential industry are both necessary. Also, weneed to carry out market research and conduct evaluations of market demand andprobable risks and then, on the basis of actual situation, make plans about the nextstep of development and future investment. Moreover, our team must contact withlocal government to ask acceptance of the program and their intention tocooperate. We will try to communicate with the young and ask for their opinions onour program in order to prepare for the adoption of Regional Agent System. Access to market: First of all, we will perfect the industrial plans and make use of social resources (Forexample: convincing local government to fund for our company or assume possiblerisks) to proceed with the first round of investments. We plan to presell ourproducts, take the farmland and farm products as stocks, and try to win the supportfrom poverty-relief funds or low-interest loans provided by district bank. We willscale up our capital by giving out the company shares and bonds in bundles,crowdfunding through online platform, and issuing Crowdfunding. We will utilizelimited funds for publicity and transforming local facilities at initial stage. We willpurchase available products from local farmers to sale instead of producing byourselves so as to recoup costs and avoid increasing risks. Expanding development: To normalize production system, complete company structure, and raise thetechnical level as well as product quality is our first goal. Then we will continue todevelop small-scale contracting services -- consumers are given opportunities toadopt fruit trees and livestock or to buy shares of farm directly, and when the finalproducts come out, the shareholders could get dividends or correspondingproducts in return. We will cooperate with local supermarkets, hotels, restaurants,and travel agencies, trying to expand market. In order to increase profitability andflexibility, we decide to adopt some retail strategy including barter and old for newservice. We will spare no effort to implement Regional Agent System as quickly aspossible, and assign partly production tasks to the local in order to cultivate abilityof self-development. Also, we need recoup funds quickly to credit repayment andpay dividends. Exploiting market: After the business begins to profit, A further development of upstream industrybecomes available. More effort could be spent on the research and creation of new



products. Also, we are planning to cooperate with relevant organizations and makeit a demonstration area. We will develop supporting industries, transportation andinfrastructure included, and proceed toward tourism and other related industries.We will work with local Chambers of commerce to provide more job opportunitiesfor local people. Constructing ecological recycle stations (e.g.: Cockroach andearthworm stations, which display the potential to form an industrial chain),ecological industrial chain (e.g.: Agriculture, aquaculture, handicraft industry, andlight industry) and other sustainable development facilities are within ourconsideration to protect environment. Meanwhile, we are going to set up smallecological communities so that the surplus elderly labor could join the production.Finally, we hope that our program could promote the development of local culture,encourage the commercialization of material cultural heritage (porcelain), and thedevelopment of regional folk products. Public welfare 2.0 model: Taking the company as a vehicle to attract social resources and apply them to theproduction, the program creates more value by accumulation. Resources frominvestors will be used for regional facility construction and operation the ecologicalagriculture. The local will get extra income from salary and dividends generated bythis program. The sales proceeds will be returned to investors and local employeesin proportion to their contributions. Management & Organization The company would adopt the Responsibility Contracting System for management,develop the Regional Agent system, and advocate democracy -- the employeescould freely share their own thoughts but the decision can only be made by theadministrators. Since the indigenous people are more familiar with local society andenvironment, hiring experienced local agents could help adapt to the complicatedsituation and implement the plan with efficiency and convenience. Thecommunicating barrier and educational differences as well as any other factors thatmight impact are removed or prevented with execution of these projects. Theresponsibility contract system can largely raise the enthusiasm for production,reduce the risks, formulate the standardized management process, and reducepossibility of corruption and similar problems. On the other hand, the company willoffer high incentive commissions but relatively low basic salaries to encourage thelocal people to work harder. The differentiated management will make the futureblueprint of this company more comprehensive, far-sighted and efficient, and in thelong run, form concrete basis for future development, lessening the possibility oflosing their initiative in market changes. We are looking forward to its leadingposition in a long-term competition.



Financial Forecasts

Before we start our project, we had done a series of field researches, during thisperiod, we collected the basic information including the average salary, the prices ofsome basic equipment, the area of cropland, etc. Based the information wecollected and the data on the internet, we evaluate the fixed cost as much aspossible. Specifically, the equipment includes the farming equipment which issuitable for the local geography, storage facilities, etc. and other fixed cost includesthe cost of places to rent, transportation facilities and other extra costs. To achieve the goal of engaging the local people in our project and making a betterlife for them, we synthesized the prices of the local stuff and evaluated our cost andincome, finally calculated the operational cost including the salary, the cost ofinsurance and so on. We have indeed investigated the living quality and the localprices, and this is why we give such numbers Since these regions lack systematic organic farm industries, the preparation of theprogram will be complicated. Hence, started-up funds will take the dominant stancein our budget The source of the funding can be envisioned by analyzing the current events andsociety. Since internet reveals astonishing potential in the financial area, we willutilize this revolutionary method to attract the resources. What’s more, some newforms of financing, like crowdfunding, are also very important. We will demonstratehow constructive, meaningful, profitable our program is and introduce the uniqueadvantages, low risk of it to our future cooperative partners, in order to attractmore investment. Furthermore, we also accept farmers invest our program byproviding lands, facilities, labor, plants, livestock and other forms of investment.This can also be a significant source. Other organizations, like bank and governmentwill be helpful to us as well.

Finacial Forecast

http://report-entry.reachable-edu.com/Fr8MibxoNNzQbAMegXLM7psIbxZZ



Risks

External Risk • There is prominent change among seasons in Chengkou region. The winter islong, but the summer is short. An abnormal climate change, named“Daochunhan” by the local, is reflected in a dramatic drop in temperature. Thisclimate change tends to freeze crops and result in widespread death of plants. Solution: We can cultivate crops in greenhouse or grow seasonal crops in order toescape from the “Daochunhan”. • There are some irresistible natural disasters like floods, rice blast and so on whichcause irreversible damage to crops and animals. Solution: We can purchase insurance to reduce the economic loss. In respect todisaster prevention, we can adopt some precautionary measures earlier. • The drastic competition among competing enterprises is likely to make ourproducts unsalable. Solution: We could advertise and highlight the point that our products are organicand good for health. • The quantity of products exceeds the market demand, and as a result, the excesspart cannot be sold. Solution: We can cooperate with the government and localenterprises and sell them the excess at a relatively low price. Internal Risk • Food safety problem may exist, resulting in negative social appraisal. Solution: We will supervise the whole process of production, using monitors andfully transparent kitchen to ensure that no such accidents could happen. • Unexpected human-made accidents in producing activities may do harm toworkers' safety. Solution: We will provide workers with lessons in advance to remind them ofpotential danger. Also, we could purchase accident insurance for our labors. • Our products may be damaged during transportation. Solution: We will purchase insurance and choose and all the time use a safe thetransportation line. It is also feasible to develop branch transportation company andfixed hauling track to guarantee safety. Financial Risk • We may have a limited finance storage in earlier stage. Solution: We are coming up with more methods to raise funds like publicinvestment or crowdfunding, and cooperation with local government also seems



feasible. Technical Risk • We may be limited by technology. Solution：We will seek for assistance from professionals or formal agriculturalorganization, cooperating with them or directly buying up the technical patent. • Our workers may destroy plants that are protected by botanists unintentionallyduring agricultural expansion. Solution: We can recruit experts who will inspect the land and teach local farmers totell those protected plants from the ordinary ones.



Long-term Plan

Mission: Increase company profits to 100 percent within 5 years and make our company oneof the most famous firms in the field in China Goal: The ultimate goal of our firm is to utilize the resources in the less developed areasto promote the economy of those regions and get profits from the program. Weaim to take a dominant stance in the organic agricultural industry. The wholeprogram will achieve a comprehensive industry chain, include transportation,production, sell, and so on. Strategies: The strategies we will apply include the marketing strategies and managementsystem we have mentioned previously. With the flexible management system andattractive promotions, our energetic team can provide appealing goods to a largenumber of people. While the demand tends to be stable in the future, the expansion of our business isalso necessary. We will focus not only on the agriculture, but also on other fields.Tourist industries, intangible cultural heritage handicraft, and even some programsthat provide services to the old people can all be applied based on the organicagriculture industry. We will use the resources more efficiently and make morecontributions to the society. Substantially, we will help the indigenous people adapt to the modern society andbusiness. We plan to eliminate the poverty trap in Chengkou, and assimilate thelabor force here. In this case, they can gradually leave that area and move to townsor cities. This can radically solve the serious poverty problems. When these peoplebecome part of the whole society, they can get more resources and integrate intothe society. Invisible hands then will play the most important role to deal with theproblems. Vision In today’s modern world, the cold walls and irons surround people. Naturebecomes the most precious luxury good to dwellers in the urban areas. At the sametime, nature still makes thousands of people suffer from their life in the rural regionlike Chengkou. All we want to do is to save the people from the struggle and make



the best gifts of nature available to everyone. Our firm can bring huge profits andmore resources to Chengkou, people there are living in a higher living standardlevel and get out of poverty trap in 5 years. There will be more people choosing tocome back and work in our firm and Coco Farm will become the most influentialcompany in China.



Review and Reflections

What Are Successful

What are successful We have achieved that using a commercial solution to the existing social problems.We combined our own knowledge and resources around us with field investigationand data analysis to come up with the most effective and suitable solution.According to the local topography, population, economic conditions and otherfactors of the Cheng Kou area, under the premise of not destroying the localcultural characteristics and natural environment, the form of eco-farm and themode of industrial chain is adopted to bring a large number of employmentopportunities to local people. By recruiting the outside teens, the problems ofempty nesters and left-behind children are solved. At the same time, it can drive thedevelopment of local tourism and economy. In that case, this area could developsustainably. Furthermore, with our experience of eco-farm and industrial chain, we can help thegovernment and companies have more confidence and impulsion to support theestablishment of eco-farms. We do conduct the sustainable development of oursociety, and we also want to make more social benefits for people and solve theirexisting problems in depth. That’s our true target of our project. Last but not least, although the companies and government will assume most of thecosts, our project still have the opportunity for them gain some profits. It is not onlya charity project, but also a business.

What to Improve

What to improve We did not put much emphasis on the costs of our project, and we just let thegovernment and the companies to bear the costs. We focus on how to make peoplelive better in that area but ignored the heavy burden of it. To some extent, theremight be other better methods to let the local people accept our concept and makeefforts to live a better life. Our project appears a little bit difficult to get startedbecause our plan is too complicated. We worry companies and government won’tsupport our project because of its complexity



Summarize Learnings

Summarize learnings After this project, we have learned how to find the social problems, the importanceof solving these problems and how could we do to achieve our final goal. Wedidn’t think we were just participating the business competition, whenever weconfirmed our topic, we really hoped to make people live a better life. Weinvestigated at the rural area, talked with the local family, looked for some ways tomake them feel the possibility of their future. We were truly touched.



Appendix

Team Credits

YANG QINYOU Revised the whole project, wrote the Review and Reflections, edited EvaluationCriteria, edited and translated the Generate ideas.

ZOUHAIBIN Fisrt draft of Risk design the logo

WEI JIAWEN First draft of Industrial Analysis and Company Profile and revise of several parts

Wu Yanlin Scability(The first, second and the last English versions) Revise of several parts Topic identified part

ZHANG YICI First draft of long term plan, design of the cover page translate of one part

LENG HAOHUAN Identify the Product or Service The Value-chain Analysis Generate ideas(Chinese draft) Evaluation Criteria（first draft） Rating Sheet Scability (Chinese draft) Action Plan Financial Forecasts Risks(part of the Chinese)

WANG ZENG Identify the Key Issue Long-term Plan Project Title Summary Why it is important



Topic Description Identify the Underprivileged (Chinese draft and the first draft of English）



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