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)
