Importance of Sustainability and Shared Values in Business and Corporate Strategy

Key Issues for Understanding Business and Corporate Strategy

A Discussion Of The Importance Of These Issues For Understanding Business And Corporate Strategy.

How Sustainability And Shared Value Considerations Impact Strategy. 

From the readings I have identified three key issues. The first issue is decision making. One of the main responsibility of executives in an organization is taking tough and strategic decisions (Courtney, Lovallo & Clarke, 2013). The problems in decision making are the lack of information to make a completely informed decision and the different biases that affect the perception of the decision makers. Another issue that emerges from the readings is the increasing competition in every industry. Due to this reason applying the Blue Ocean theory in the business strategy and creating an uncontested market place is necessary (Mauborgne & Kim, 2005). The key to creating this kind of market space lies in invention and innovation that creates new concepts and products for the market. Another issue that emerges from the readings is the idea of synergy and difficulty that organizations face in achieving it. Most organizations operate through many departments and organs and thus, creating a collaborative approach and keeping a good channel of communication is necessary which can be facilitated by the practice of synergy (Goold & Campbell, 1998). It helps the executives to manage the different units and thus businesses run smoothly.

These issues are important in understanding business and corporate strategy. Decision making is necessary part of every business and the executives and managers are responsible for taking the toughest of decisions. Eliminating biases and collecting complete information ensures that the executives are able to make best decisions and create best of the strategy. Every industry nowadays in overcrowded with suppliers and thus, creating unique products and strategy is necessary in order to secure a customer base. The blue ocean theory opines that creating an uncontested market is necessary for maintaining the competitive edge. The leading companies become the leaders of the market by offering the consumers something that others cannot (Mauborgne & Kim, 2005). For example, Apple, the leaders of Smartphones offers dedicated servers and security systems that attracts the premium customers. Synergy is necessary in every business as it ensures that the organization is working as a complete unit and that there is a collaboration and flow of communication among all the organs.

The concepts of sustainability and shared values impacts corporate strategy. While doing business, organizations sometimes overlook the aspects of social, economic and environmental welfare in order to gain more profit (Kramer & Pfitzer, 2016). Recent theories urge the consideration of sustainable business activities. In order to maintain sustainability, the companies need to develop strategies that will ensure sustainable growth, diversity and inclusion, equality and equity inside the organization. Executives also need to consider the aspects such as responsible use of resources and environmental preservation through green packaging and reduction of carbon and water footprint. Shared value ensures that the corporate world follows a shared goal that is based upon the value of protecting the earth. Internationalization and merger and acquisition further seeks the application of sustainability and shared value in order to ensure a smooth running as these companies have singular corporate strategy that is based on their company vision (Crane et al., 2014).

From the course, we will learn about strategy making. The course will help me develop competencies for decision making in short time and understand the macro and micro environments that might affect the businesses. Due to globalization acquisitions and merger and international expansions have become common for most firms and thus managers and executives need to develop strategies that can be applied to overseas context as well (Camillus, 2008). Through the course we will also learn about the concepts of sustainability and shared value, blue ocean strategy, synergy building and the steps that might lead to disasters for an organization. These learnings will help me gain an understanding of the considerations that executives and managers need to have before they make strategies for competitive advantage.

From this course, I expect that I will be able to gain skills and understanding of managerial capabilities. Managers need to consider many aspects while running a business and this course gives insight into the pitfalls in the journey. I expect that I will be able to use this knowledge and understanding in my future career. I also expect that this course will enhance my present understanding on global strategies for managers. The course provides recent works and studies on issues related to business which gives us opportunity to understand the global scenario. My expectations also include better understanding and acquirement of the skills necessary for becoming a successful manager of a multinational company or to run a business of my own in future.

References

Camillus, J. C. (2008). Strategy as a wicked problem. Harvard business review, 86(5), 98.

Courtney, H., Lovallo, D., & Clarke, C. (2013). Deciding how to decide. Harvard Business Review, 91(11), 62-70.

Crane, A., Palazzo, G., Spence, L. J., & Matten, D. (2014). Contesting the value of “creating shared value”. California management review, 56(2), 130-153.

Goold, M., & Campbell, A. (1998). Desperately seeking synergy. Harvard Business Review, 76(5), 131-143.

Kramer, M. R., & Pfitzer, M. W. (2016). The ecosystem of shared value. Harvard Business Review, 94(10), 80-89.

Mauborgne, R., & Kim, W. C. (2005). Blue Ocean Strategy. Harvard Business School Publishing Corporation. Boston, Massachusetts.