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Saturday, December 28, 2013

Describe Resource Expansion

Resource Expansion – Is the main goal of selling goods and services online the generation of revenue to offset operational costs? If so, how much revenue does the organization expect/wish to generate? These strategic questions will allow the organization to assess how much funding will go toward e-commerce activities. If the organization is approaching e-commerce as a means of covering not only the costs of producing the goods and services and disseminating development-focused products, but wishes to expand its revenue base to support other project costs, then it may want to develop an e-commerce platform and strategy that can attract customers. The organization may have to approach e-commerce as a resource expansion activity that uses business strategies and a full marketing approach. This leads to the question of whether this fits in with the development mandate of the organization and its charitable organization status. Will e-commerce activities distort the tax-free status of the development organization? Is the organization liable in the case of legal conflicts? Most development organizations have already faced these questions if they sell publications and other products by "traditional" means.

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