When businesses are able to align their economic interests with societal improvement through the concept of “shared value”, they are able to flourish. A great example of a company that has embraced said strategy is Kirin Company Limited, a Japanese integrated beverage and food company. Apart from introducing the first zero alcohol beer that tastes like actual beer, which will contribute to a decrease in drunk driving, drinking during pregnancy, and other alcohol-related problems, it has also introduced a specific division with the sole purpose of pursuing shared value opportunities. Creating a lasting reinforcing loop between commercial and social value is not easy, so I’m glad to see Kirin taking a gradual, but meaningful, approach to it.

How I think of shared value is that it is more than what companies do with their profits; it is how companies earn their profits. Although Kirin is still in the early stages of adopting a long-term shared value strategy, I think it is definitely headed in the right direction. Not only has it addressed societal concerns, but this strategy has also allowed Kirin to enter new markets, such as the non-alcoholic beverage market, making it a profitable strategy. I think the next great opportunity would be to redefine productivity in the value chain, as there are many opportunities for this, whether it is through the increased efficiency of transportation or packaging of goods, which will reduce costs for Kirin and address environmental concerns. I’m glad to see Asian companies start embracing this strategy of shared value, and I’m excited to see where Kirin goes with it.

Charmian’s informative post on the strategies McDonalds have introduced recently in an attempt to generate more sales, including an option to customize burgers, allowed me to relate McDonalds current situation to class concepts.

While I do agree that McDonalds needs to find new value propositions to offer to their customers, the strategies they are implementing do not seem effective. The “Create Your Taste” option that allows consumers to customize burgers to their liking does seem “fresh” for McDonalds, but in terms of long-term success, I believe the longer line-ups and wait times associated with customization will deter customers. After all, a point-of-parity for fast food chains is the short wait times, and sacrificing a point-of-parity doesn’t seem like the most sustainable strategy.

Instead, I think McDonalds should try to flatten its organizational structure to emphasize its divisional structure (divided by geographical region), enabling more flexibility so the menu items can cater to local needs more, which will definitely aid international expansion. However, what’s of utmost importance and urgency is the core issue: quality improvement. I think any other strategy may help retain its already-decreasing market share, but this strategy is the only one that may result in a gain of new customers. Advertising campaigns will not provide a satisfactory incentive for non-consumers, who mostly do not eat McDonalds because of the company’s reputation of horrible quality. Improving the quality of its products will be the best, and perhaps, only strategy for McDonalds to improve its sales and enjoy long-term success.

I saw these on the McDonalds menu in China, and the success of it makes me think that McDonalds can emphasize this strategy.

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Ever since the Enbridge Northern Gateway Pipeline project was announced, it has been a source of controversial debate. In particular, the First Nations of B.C., including the Nak’azdli, have been strongly against it as most of the oil pipeline is planned to run through their traditional lands. If an oil spill does occur, the First Nations’ lifestyles will be greatly damaged as much of their traditions, such as gathering or fishing, are rooted in their land. Due to the Constitution Acts of 1867, First Nation land are protected by the Supreme Court and can not be used without their permission. This is a social and political factor that imposes a huge barrier on the pipeline’s development. As the traditional territory is so important to the First Nation identity, it will be hard to compromise with such high risks involved.

Another issue that stands out to me is of the First Nations’, and ultimately, B.C.’s economy. The possibility of oil spills leaves the coastal ecosystems, and subsequently, the fishing industry, which contributes greatly to the provincial economy, at high risk. Unless Enbridge is able to provide more security regarding oil spills, it should revisit its business model or develop a value proposition that appeals more to the First Nations and B.C. citizens. If the company does not show its corporate social responsibility, its value proposition, customer relationships, and image will be tarnished, and the project may not even be able to continue, which will be detrimental to the business. The company should take into account the interests of all stakeholders, and not just simply maximizing its profits, if it wants its business to be successful. Therefore, with these external social and economic factors present, I think it will be difficult for the Enbridge pipeline project to progress.

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When you have a brand that is as recognized as Coca-Cola, it is hard to imagine anything other than that iconic Coca-Cola logo on its bottles. However, when Coca Cola introduced the ‘Share a Coke’ campaign, where consumers were able to buy coke bottles bearing their names, it propelled Coke’s sales by 2%, which is significant as Coca-Cola’s sales have been continuously declining for the past 11 years.

The reason why the campaign has been so successful is because with personalization, consumers feel like brands are personally reaching out to them, making them feel closer to the brand and product. I think that this strategy is great as individuality is so emphasized in this generation, and this marketing strategy is also relatively low cost, and yet, is very impactful. In addition, Coca-Cola also took advantage of the digital marketing channel as the campaign’s website lets visitors create their own customized virtual bottles, which generated more hype on social media. However, the concept of personalization is nothing new. In fact, I’ve noticed many businesses reach out to their customers through emails starting with a personalized “Dear name” rather than a general “Dear customer”. However, Coca-Cola takes it a step further by personalizing the actual product.

While this marketing campaign can not be replicated, it teaches other businesses a lesson as it highlights the importance of brand perception and customization, and how advertising and social media can be used to influence consumers’ behaviours and experience.