http://forumblog.org/2012/01/creating-shared-value/

Reporting shared values became a new trend, but what is shared value? I used to equal shared value to social value, which is wrong. Shared value is actually a commitment to a long-term and equal partnership. However, why reporting shared value become a trend?

The relationship between shareholders and companies, companies and employees, companies and suppliers can be concluded with one word – partnership. For make the partnership firmer, companies start to report the shared value.

Most important reason, as the blog mentioned, is that shared value drive share value. As shared value is a commitment to all the people related to this company, reporting shared value can increase transparency of the company. A report of shared value will include the strategy of a company, the shared value it create, and the resource it need to create these shared values. This report let employees know what they are working for, how meaningful their works are. To the shareholders, this report shows that how their money used. These reports increase their trust to the company. The whole company aim to a same target, which can make the company more competitive and make the aim more achievable. I think that is the meaning of “shared value drive share value”

Shared value cannot be creates just by a company. I think that it is a teamwork, only we work together, that we can achieve the goal.

Different from business entrepreneurs, social entrepreneurs adopt a mission to create and sustain both profit and social value. Nowadays, there are more and more social entrepreneurs have come into our sight. Satisfying their needs, their works also address the some social problems.

Tom Szaky, a freshman in Princeton, spotted business value from turning worm poop into organic fertilizer. Using the investment from family and venture capitalist, Tom built up a farm call “worm gin” and started to package these fertilizers up in soda bottles. Now his products are available in Wal- mart, and his company makes 13 million dollars in 2010. Now, the company begins to recycle other wastes, to make some funny and useful products which become the main product of his company, helping them to gain more profits.

Social entrepreneurs will create some shared values, but as they are businessmen, they should generate their profit first. By owning a farm, Tom needs not to worry about the materials, whose price will change unpredictably. This action will reduce the risk the company takes. When he company start up, Tom has focused on a clear customers segment. Tom directly went to local gardening centre to sell his product. Because his clear customer segment and an attractive value preposition, the product became best seller and Tom able to get money to grow his company.

Beside these success he made, Tom also devoted himself on create social values. What he produces, the fertilizer, is environmentally friendly. Worm poop is a useless material to many of us, but turn them to fertilizer can help farmers and gardeners. By doing so, we can grow plants without pollute the earth and reduce the waste. Moreover, Tom’s company will donate 2 cent for everything they recycled and this action has already raised 3.2 million dollars. I think this is so call social return.

https://blogs.ubc.ca/karlynnhuang/2013/10/07/expand-beyond-coffee-whats-next/

Starbucks begin to promote some products other than coffee, such as tea, in order to gain more market share. Facing this fact, Karlynn wonder is it worthy since this promotion takes moneys and efforts.

From my point of view, Starbucks should devote their efforts on their main products- coffee. As Karlynn mentioned in her blog, a strong value position of Starbucks has been strongly planted in customers’ minds. It takes time to change this situation which becomes a main setback for this attempt. Beside this reason, I found more to support my idea. Suppose Starbucks begin to sell tea, they need to devote more money on machines and labor. Because tea and coffee are different, so the product lines have to separate. This separation will definitely bring the increase cost of buying new machines and hiring more people. In spite of this increasing cost, Starbucks need to worry about the narrow market. We should admit that Starbucks is the leader in coffee market, but we cannot deny that Starbucks is newcomer in tea market. Starbucks will not be the first for the people who really want some tea. With an increasing cost and narrow market, this attempt that stepping into tea market will be a financial burden to Starbucks.

In conclusion, focusing on how to make more delicious coffee may be a brighter choice for Starbuck.

Organizational culture is the soul of a company, which can gather people together to achieve goals. Numbers of companies became successful because they have a fantastic organizational culture. HP is one of the successful companies which benefits from organizational culture.

Trusting and respecting people, HP allow their employees to express their ideas or purpose some different opinions. Without worrying about being blamed, the staff even can make comment to what their supervisors did, which can help the superiors improve themselves. Moreover, this free environment to express feeling, not only can help employees to release the pressure, but also narrow the gap between the superiors and lower lever, making the whole company become a family. This comfortable atmosphere will create loyalty of the staffs.

The other unique culture of HP is providing a nearly perfect job security to the employees. When facing the financial crisis, the majority of the companies will choose to fire people in order to cut down the cost. However, HP, instead of fire people, cut down the salaries as well as the workload of all employees. This way can cut down the cost, at the same time, give security to employees. By doing so, staffs will be more loyal to the company and try their best to help.

Creating shared value is an activity that will satisfy the need of the company, at the same time, solving some social problems. Realizing how meaning this activity is, more and more companies started to pay attention to hold some specific activities to create shared value. Nestlé is a very good example. This company focuses on different kinds of social problems, such as nutrition, rural development, sources. In this blog I would like to introduce sources, which I think can be the best presentation of shared value.

Nestlé guarantees their raw materials are fresh and natural. Taking milk as an example, Nestlé require their supplier, the farmers, to produce the milk on a daily basis, ensuring the materials are fresh. In order to improve the quantity and quality of the milk, Nestlé will offer technical and financial assistance and veterinary service to the farmer.

From what Nestlé have done, we can know that they are creating shared value. By providing several services for farmers, Nestlé can gain stable suppliers and high quality materials. These make milk products become best sellers of Nestlé and help Nestlé make a huge fortune. On the other side, this activity also creates social value. First of all, farmers can gain more salary by being a supplier. Moreover, as the incomes of farmers become higher, the development of rural area will definitely be speeded up. Nestlé makes profit, at the same time, paying back to society by solving problems.

This blog analysis the reason that Blackberry, which is seem not so popular in this era, can still earn a certain market share by its business phone. From the view of the author, it is this single business function of Blackberry phones that satisfies part of demand, the loyal customers.

I think she got a very good point. Numbers of companies are using this way to generate consumers with brand loyalty, especially in luxury brands. They need not to adjust themselves to content desire of majority of people. The designers only make products following their ways, and only target to people who appreciate their style. I think this strategy really match with the focus strategy in Porter’s article. By targeting on smaller customer segment and providing unique products, companies distinguish themselves from others. As their products have few substitutes in the market, the companies can pass the cost to the customers.

Instead of producing the phones with strong entertainment function, Blackberry focus on improving business function and the security system of the phone. The customers, especially businessman, will feel convenience and safe when they use it. This special feature can ensure them have a stable market share and make Blackberry become the leader in business phone area.

Recently, CNN posted a list of “the best companies to work for”. Google earned this honor because of its high standard working environment, attractive wages, and welfare as well. These three things are so appealing that the people who are applying for a job in Google is 61 times more than Google needed.

From this piece of news, I found that care Google provided made employees unit and contribute to company. Above all, design of the office is human-oriented. In spite of more than 25 kinds of cakes, Google also built three stadiums for its employees. This care make the Google have the lowest separation rate, which can reduce the money on cultivating a green hand.

Also, Google will hold a brainstorm meeting. Every staff present can express their creative idea about company. Staff can win bonus from this activity, at the same time, Google can keep its creativity. This is a win-win activity. This activity help to keep its creativity, which is easy to lost when company, turn from small to large.

Taking the effort of employees for granted, many companies ignore them. This often results to low efficiency, lack of loyalty, and high separation rate. I think employee should be one of the main partners of a company. Beside the welfare listed on law, employers should also provide some outdoor activities, comfortable working environment or even just some delicious food. These will make employees feel they are home.

Apple unveiled two new Iphones, Iphone 5s and Iphone 5c recently. This means that Apple has split its manufacture line. Will it help Apple regain market share became a hit topic. Based on market investigate, the answer is yes.

Why the cheaper Iphone 5c can help? I figured out the following reasons. First of all, Apple focuses on need of customers. Iphone is an excellent Smartphone indeed, but the price kept many customers away. However, Iphone 5c can satisfy their desire of owning an iphone in an acceptable price. It is reasonable that Iphone 5c got an incredible sell volume. Secondly, Iphone5c own an amazing system as well as some advanced functions. As we all know, system and functions are the most attractive points. Although Iphone 5c sell in a lower price, the system and software installed will not disappoint you. Last but not least, Apple catches opportunity. South Asia is a huge market, and Apple decided to list China as one of the first launch countries. I believe that this action contribute to the high sale volume of Iphone 5c.

According to news from China Daily, China’s CSR Zhuzhou Electric Locomotive has signed up a selling contract of 10 bullet trains with Malaysia. These trains will service on a 900 km railway. In 2010, this company has already provided 38 trains to Malaysia. It is the first time that trains made in China are exported to foreign country. From this report, we can easily figure out that made-in- China product become more and more competitive.

From my point of view, it is interaction of reasons listed below that lead this feature. Above all, the most obvious strong point of product made in China is lower price. Since labor is cheaper in China than other country, cost of making a train is much lower. It follows that Chinese company can sell them in an appealing price. In addition, technology turns into strength of Chinese companies. Domestic bullet trains service on different railway in China, improving efficiency as well as reducing danger. This is the best prove of its high technology.

The increasing quantity of exported train is an encouragement to Chinese company, in the same time, is a challenge too. As labor price is growing now, the benefit brought by demographic dividend is disappearing. I think that Chinese companies should take immediate action to focusing on developing technology, making it become our core competitive power.

“the poisonous milk” happening in 2008 in China is a typical affair of lack of business ethic. In 2008, mamas found that their babies become ill after drinking milk of a brand. After investigating, the government declared that this company add harmful chemical in milk powder in order to pass the nutrition test. There are approximately 30000 victims, and six of them dead because kidney stone and other kidney damage led by this chemical . Along with the investigation went deeper, more companies are founded that they add this chemical in milk powder, even some famous companies.

For government, I think they should take responsibility on censor the quality of product. In this case, they should first announce the punishment to criminals,and then carry out a stricter rules and higher standard to regular the market.

Consumer, the people impacted directly, should show zero tolerance towards this issue. Maybe a boycott will help companies to get self-discipline.

On brand impact, this scandal influence milk industry seriously. First, Chinese consumers, their main target, lost confidence in the whole industry. “sales have fallen by 30–40% on a comparative basis”,according to China Daily . Second, many counties carried out a ban on exporting products which contain milk powder from China, such as Singapore and South Korea