1. How do Porter and Kramer define “shared value”? Contrast this with the approach advocated by Friedman, and the “corporate responsibility’ mindset which followed.
According to Porter and Kramer, shared value involves creating economic value in a way that also creates value for society by addressing its needs and challenges. Shared value is a new way to achieve economic success. (Harvard Business Review)
Friedman talks about social responsibilities of a company. According to him, social responsibility of the organization is only towards its shareholders. Its main focus is to engage in activities to maximize profits and return some portion of it to the shareholders as a reward for ...view middle of the document...
Along with providing services to customers, they are focusing on creating a more financially stable environment for Walmart by using renewable energy, creating zero waste and selling products that will be sustainable to the people and the environment. (Walmart website)
4.2. Redefining productivity in the value chain
Value chain is a series of activities which aim at creating and adding value to the product at every step during the production process. (Investopedia)
Activities of the value chain are categorized into primary and secondary activities. Primary activities are directly related to the creation of the goods, whereas, secondary activities include procurement, technological development, HR management etc.
Take Starbucks for example:
Inbound logistics – selecting the finest coffee beans from coffee producers in Latin America, Africa and Asia.
Operations – Stores, either directly owned or licensed, in 65 countries across the globe with products like Starbucks Coffee, Seattle’s Best Coffee to name a few.
Outbound logistics – Launch of new coffee line that is sold in retail stores in the US
Marketing and Sales – Whenever a new product is launched, heavy marketing for the same is done in the form of sample packs in the area where the store is...