Group video presentation. Presenter(Saurav, Bipin Prashant, Bicky and Narayan)

Week 10 Journal

Week 10

1)      In your own words and using referenced quotes describe what is meant in strategy by ‘Organizational Purpose’ and describe what is meant by “Corporate Social Responsibility”.

2)      Should organizations focus more on profit and shareholder satisfaction or responsibility and stakeholder satisfaction? Discuss your own thoughts but try to support your ideas with theory or examples.

3)      Write about your experiences with today’s case study. What answers did you give to the questions? What did you think of CEO?

  

Answers

1)      Organisational purpose strategy focuses on how the organization needs to change over a period time in order to be able to deliver the strategy of the enterprise and an actionable plan of how to make the transformation. This requires both the thinking and analysis to compare current state to desired state and define the gap, and the execution capabilities to make the requisite changes happen. From organizational purpose strategy, vision and mission facilitates the essential foundation for making strategic choice. The mission, vision and organization purpose describe what the organization needs to be consider for the long term and short term organizational goals, objectives and success.

The key strategic consideration in organizational purpose strategy includes:

a)      Organizational design

b)      Organizational competitiveness

c)      Organizational culture

d)     Talent management practices

e)      Capability requirements

In addition to above mention points the organizational purpose strategy consists of organizational beliefs, business definition and organizational values.   An organizational belief insists the strategists to explore the ideas and assumptions of the organization. The business definition explains about where the firm operates. It tells you to operate in those markets in which a firm has a competitive advantage. An organizational value explores the important factors that a firm should hold.

  Corporate Social Responsibility (CSR)

A company`s sense of responsibility towards the community and environment both ecological and social in which it operates is known as corporate social responsibility. According to the World Business Council for Sustainable Development “Corporate Social Responsibility is the commitment by organizations to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as the local community and society at large”.

 Corporate Social Responsibility (CSR) has emerged as a significant theme in the global business community and is gradually becoming a mainstream activity. But questions has arise does the share holders and other stake holder of company gradually accepts it.

The growing emphasis on corporate responsibility is affecting the relationship between companies and their various stakeholders, such as investors, customers, vendors, suppliers, employees, communities and governments.

At current most of the renowned organization uses the CSR as a benchmarking strategy. Benchmarking strategy not only helps to compete with their rivals but also help to gain competitive advantage.  Only implementing corporate social responsibility is not enough it should also be managed carefully over the period along with the business of company.

2)      In my view, I think any organization should give more priority to the responsibility and stakeholder’s satisfaction. It is common that every organization ultimate goals is to earn more profit. But for earning profit only shareholders fund is not enough, the cooperation and decisions among the stakeholders is must. Stake holders in the organizations include customers, vendors, suppliers, employees, communities and governments. We are mankind and have adopted to change with time, same apply to the organization. Organization should change with time and this helps in grabbing opportunity and eliminates threats.

Let`s see one example, If any organization just focuses on shareholders wealth maximization then this will decline the chance of getting involved with society, failed to learn people attitudes and behavior, will be outdated in the society and with their unique preferences, relations with stakeholders might get affected and finally the main purpose “earning profit and maximizing share holders wealth” will be collapsed. In other hand let`s see if the company focuses on the responsibility and stakeholders satisfaction. Responsibilities define the task and are separated among the employees through different department. When responsibilities are done sincerely by the employee then the company can engage with society, they can innoviate new products by which they can satisfy customers and ultimately by satisfying customer they can gain competitive advantage and make huge profit. So any organization should focus on their employee’s welfare.  A business firm can only be developed when their employees are happy as they are the pillars of an organization. To make sure the employee are happy the company should provide benefits and perks regularly.

Customers and suppliers are important stakeholders to the organization. Without customer we cannot do business, they should be treated like a god and should serve in their best interest. Suppliers provide all the raw materials and equipments and business cannot be run without these things. So organization should also make them happy.

With all these things organization can build a good platform of business and enormous profit can be made. So, satisfying stakeholders and focusing on responsibility should be more focused than satisfying shareholders and earning profit.

3)  The case study we did today was about the PepsiCo. PepsiCo incorporation is an American multinational food and beverage corporation with interests in the manufacturing, marketing and distribution of grain-based snack foods, beverages, and other products. We watched the video interview of Indra Nooyi. She is the CEO and chairman of company. The case study was interesting and focused on the rivalry between Coca- Cola and Pepsi Co, the effort and strategy Pepsi Co. has implemented to regain the market share and the mission, vision and goal of Pepsi Co.

Case study questions and answers.

a)      What are PepsiCo’s strategic objectives? Why does the firm exist?

The strategic objective of Pepsi Co. seems to regain the market share and increase the revenue by increasing the sales of nutritious products. According to Indra Nooyi, the company is targeting to triple the revenue of nutritious products, to $30 billion by 2020.  This shows PepsiCo strategy seems to be emergent. Due to the declining market share in America, they are targeting Asian countries as the new markets for beverage products and also the company is trying to increase the product line increasing the portfolio in business.

The firm exists to serve its main organizational purpose which is to provide quality products and services within reasonable price than competitors. By serving this they earn revenue and satisfy the interest of shareholders and stakeholders.

b)      What are the possible strengths and benefits of the strategy?

The possible benefits and strength of the Pepsi Co. strategy are:

·         Increase in market share

·         Employment empowerment

·         Increasing product line

·         Increase in marketing sector

·         Employment opportunity to local

·         Huge accumulated fund

·         Innovation to nutritious foods and beverages 

c)      What are the possible weakness and disadvantages of the strategy?

The possible weaknesses of strategy are:

·         Low preferences from customer

·         Packaging is not attractive

·         Not the number one player in beverage industry

·         Market share smaller than Coca-Cola

·         High risk

·          Chances of failure in product line.

·         Shareholders dissatisfaction.

d)   Do you think the organization has the right balance between profitability and responsibility?

Though the company has launched products called “GOOD FOR YOU” which is promoted as a healthier product and implement the Refresh Project which helped numerous homeless shelters and orphanages, I think they can make more contribution to save the environment from pollution and promise to support the environmental rules and after only there will be the balances between profitability and responsibility.

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References

·     Robert Kaplan and David Norton (3^rd Edition, 2000). The Strategy- Focused Organization. Harvard Business School Press.

·      Kenneth Amaeshi, Paul Nnodim, Osuji Onyeka (1^st Edition, 2012).  Corporate Social Responsibility, Entrepreneurship and Innoviation.  Routledge Publisher.

Week 9 Journal

Week 9

1)      In your own words and using referenced quotes describe what is meant in strategy by the` Resourced – Based View`?

2)      How might you undertake “internal strategic analysis”? What model would you apply and why? Where would you go to find the information you need?
3)      Talk about your group video work. How it is going so far? Do you have a plan? What are you most worried about the moment? What is going well?!

Answers

1)      Every organization has its own capabilities and skills distinctive with their competitors in making strategy. These capabilities and skills are internal to the organization and can be viewed as resources to the organization. These resources are unique and help organization to gain competitive advantages over the competitors.

Thus, resourced based view of strategy is the competitive advantage of an organization which is explained and justified by the distinctiveness and uniqueness of its capabilities.

Resourced based view of strategy focuses on the resources and competencies. Resources are the assets that organizations have (partners, suppliers, intermediaries, customers) and Competencies are the way those assets are deployed effectively.

2)      Different analytical tools can be used for conducting internal strategic analysis in organization. Analytical tools such as resource and competence analysis, VRIN and financial analysis, value chain analysis, McKinsey Seven S analysis are found widely used among the organization. Among above analytical tools I will prefer to use VRIN. VRIN analysis focuses on assessing sustainable competitive advantages over a period. VRIN stands for value of strategic capabilities, rarity, inimitability and non substitutability.

Strategic capabilities help to grab the opportunities and eliminate threats, provide competitive advantage by creating value among the customer.

Rarity explains the rare capabilities the organization possessed and explains how this capability helps in assessing competitive advantage.

Inimitability refers to the capabilities that are difficult to imitate or obtain by other competitors. These capabilities can be in terms of unique resources like key individual, systems or the way these individual and system are deployed.

Non substitutability, focus on gaining competitive advantage by minimizing the threat of substituting.

With assessing these four key components organization can built effective internal strategy and gain competitive advantages over the competitors.

3)      For group video, we have formed a group of five members. Our group members include Narayan Sapkota, Prasant Timilsina, Bicky Gauchhan, Saurav Sahahi and I Bipin lamichhane. Our group video assessment will be about the two giants in telecommunication industry in Nepal, Nepal Telecom Corporation and NCELL.

Nepal Telecom Corporation is a semi government organization, partially owned by government and partially by public, whereas NCELL is private owned organization. We have decided to use about three analytical tools which include both internal and external tools. These tools are PESTLE, McKinsey 7`s and SWOT analytical tools.

We all members of the team are working hard and tasks to be done are equally distributed. Last, Wednesday we all managed to visit these organizations and gather important information from the staff. After gathering information we are now analyzing this information so we can put on our PowerPoint slides.

Time is limited and things to be done are pouring which worry for us but I hope we cope with it.

Thank you. 

References

·         Robert Kaplan and David Norton (3^rd Edition, 2000). The Strategy- Focused Organization. Harvard Business School Press.

·        C. Walsh, Master the Management Metrics That Drive and Control Your Business, 4th rev. edition, FT/Prentice Hall, 2005.

Week 8 Journal

1)      Make a list of competitors for Islington College.

2)       Develop a Porter’s 5 Forces Model for Islington College

3)      To which strategic group might Islington College belong? Can you map the group?

  

                                                                                      

Answers

1)      Islington College offers the Bachelor program to students interested to have an International degree in Business administration and in Information and technology. The college has been providing the degree from London metropolitan university.  The competitors of Islington College are the colleges’ offering the same program to students. Some of them are:

·         Lord Buddha Education Foundation College

·         ISMT college

·         Silver Mountain college

·         British college

·         Thames college

2)      The porters five forces of model includes:

·         Threat of new entrants to a market.

·         Bargaining power of suppliers

·         Bargaining power of customers (“buyers”)

·         Threat of substitute products

·         Degree of competitive rivalry

For Islington college porters five force model can be elaborated as:

Threats of new entrants to a market- the Islington College has been providing its education service for more than decade. Within this time period the college offering international degree program has been increased dramatically. There are more than 7 colleges established within in the capital Kathmandu offering BBA and IT international degree. These numbers are increasing day by day therefore threats of new entrants is relatively high.

Bargaining power of suppliers- The bargaining power of suppliers is moderate. Usually the suppliers in the colleges are infrastructure suppliers, example: computer, printers, photocopy machines etc. The competition that is starting to offer the own products of suppliers put significant pressure on suppliers.

Bargaining power of customer- The customer are students, national as well as international. The bargaining powers of students seem relatively low because the college is offering the international degree and students are paying more.

Threats of substitute- The substitute in this sector can be other colleges providing local degree. Threat of substitute for Islington is very high because there are more than 80 local colleges operating and attracting students.

Degrees of competitive rivalry- Though the rivalry between the colleges are increasing, Islington colleges has been attracting the new student because of the reputation and the quality of education. It seems Islington College has been successful to avoid much competitive rivalry.  

3)      Strategic Group Analysis

Education sector

Islington college Vs their competitors in education sector

                                                                 
                                                             Group Mapping

      References

·     James Cadle; Malcolm Eva; Keith Hindle; Debra Paul; Craig Rollaston; Dot Tudor; Donald Yeates (2^nd  Edition, 2010).Business Analysis . British Information Society Limited.

·       Gerry Johnson and Kevan Scholes (9^th Edition, 2011). Exploring Strategic Environment: Text and Cases.  Publisher, Financial Times/ Prentice Hall

· Online available at http://hbr.org/2008/01/the-five-competitive-forces-that-shape-strategy/  [Accessed in 21 January, 2013]