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.