WEEK 12 - VIDEO PRESENTATION

Week: 12 Saturday, May 25, 2013

Video Presentation-

Islington college nepal strategy group video "Nike"

http://www.youtube.com/watch?v=zG8saQSIJ-0

WEEK 10

Week: 10 Tuesday, May 7, 2013

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‘

Organizational Purpose

Simply the organizational purpose means expressing needs and requirement of organization, stakeholders and relevant significant. The stakeholders requirement are various so to achieve that is consider as a organizational purpose. In addition to achieve a shareholder needs special profit maximization is also known as organizational purpose. So considering all the needs and requirement of organization the mission, vision and purpose is describe to accomplish a short term and long term organizational goals, success and objectives. Moreover proper strategy is essential for achieving purpose effectively and efficiently.  Organizational purpose include (Online Library, 2013)

a.        Ethical norms and values of a firm

b.      Diversification of employees in an organization

c.        Quality and cost

d.      Organization structure

e.        Size and scope of a firm

f.        Working environment

Corporate Social responsibility

Corporate Social responsibility simply means responsibilities of organization toward society. In other words it means ‘managing overall impact of the organization on society or community.’ In today’s world its very impossible for an organization to do against social responsibilities. Whether the organization is small or big they have to contribute positive toward society. Some of the points included in corporate social responsibility are listed below (B Mallen, 2004)

a.        Environment protection

b.       Organization  ethics toward society

c.       Human right

d.      Security

e.       Decrease pollution

f.       Increase social awareness

g.       Promotion of health and enviornment

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.

In my point of view organization must focus on both shareholders satisfaction and stakeholders’ satisfaction. Both are equally importance for an organization in other words it can be say as two wheels of a cart. If one wheel is missing than the cart would not move likewise in absence of focusing on satisfaction of shareholders or stakeholders the overall performance of an organization will be worst.

Profit and shareholder satisfaction

The shareholders are the owner of the organization and to maximize the profit means basic needs for them. It has direct relation with existence of organization for example if a company is not able to make a profit then it will be force to shut down soon but if the company is in breakeven point than it can wait for some times. Besides organization with nonprofit motives can only exist without profit. Increase in profit means increase in the value and wealth of an organization.

Stakeholders’ satisfaction

Stakeholders’ means all parties related to the organization which includes customer, suppliers, competitors and shareholders etc. so we can just imagine how the business can run without satisfying the needs of all those related parties. For example, customer demand are varies and the organization should meet there demand anyhow. With support of other factor customer demand should be fulfill and then it will direct impact on profit maximization.

(Case Study)

Write about your experience with today‘s case study. What answers did you give to the questions? What did you think of the CEO?

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

The main objective of the firm is to capture market and become the top brand which PepsiCo follows as well. They focus more on young people, accordingly to that they started thinking and producing the products targeting the young people.

 Other objective is to earn and generate $30 Billion income by 2020 so they applied emergent strategy. They are producing and trying innovating ideas which customers’ sense composite the finest. As we know they are concentrating Asian market after losing market in U.S.A. Understanding Asian market is large and benefit for the products like food and beverage. In addition PepsiCo is trying to increase the business portfolio and hence increase the product line. The main aim of the PepsiCo is to guide and be top brand in food and beverage manufacturing. They are preparing to provide reward as to motivate their shareholders as well as investors by inspiring their customers, community and workers. In addition by undertaking fair and ethical business, PepsiCo want to be authentic and finest to their stakeholders and shareholders. PepsiCo often want to improve different aspects like social, culture, environmental and economic in which they are working in order to be more competitive by generating to be better in future Other objectives of PepsiCo in to provide best goods and services at minimum cost, also functions best to the customer needs. For example, PepsiCo need to take care in mind to produce more healthy food, snacks and beverage from previous, hence to increase the market share by setting up to gain international expansion. Moreover PepsiCo wants to keep sustainable growth and competent in distribute system empowering employees and to be responsive. (Pepsico, 2013)

What are the possible strengths and benefits of the strategy?

The possible strength and benefit of the strategy are as follow

a.        Empowerments of worker

b.      Expansion of market share

c.       Local employment

d.      Biggest food and beverage industry

e.        Experienced and dedicated

f.       Great portfolio

g.       Able to expand their business in more than 200 countries

h.      Specific targeting of taste and preference nation wise

What are the possible weaknesses and disadvantages of the strategy?

The possible weakness and disadvantage of the strategy are as follow

a.        Extreme competition with Coca-Cola

b.      Not able to lead as a top brand in chosen industry.

c.       Low preferences from customer

d.      Risk high to PepsiCo.

e.       Low attractive packaging.

f.       Shareholders satisfaction may not be fulfilled.

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

Yes definitely PepsiCo has a right balance between profitability and responsibility. In time of decrease in 3 %market share per annum in USA they concentrate more on Asian countries. Creating better innovative products by propelled named “GOOD FOR YOU” OR “BETTER FOR YOU” is nutritious and quality products. Charismatic leadership is followed by the PepsiCo chairman Miss Indra Noovi. The strategy of her is to target to triple in generating revenue by 2020, targeting to establish PepsiCo a number one brand in food and beverage industry. She is a good leader because she is also careful about the responsibility towards the workers, stakeholders as well as customers.

Reference

1.      B.Mallen.(2004) Corporate Social Responsibilty(online) http://www.mallenbaker.net/csr/definition.php (Accessed on March 6, 2013)

2.      Online library (2013) Organization Purpose (online) http://smallbusiness.chron.com/difference-organizational-purpose-objectives-36051.html (Accessed on march 5, 2013)