Week 10

1. In your own words and using referenced quotes describe what is meant in strategy by 'Organizational Purpose' and describe what is meant by 'Corporate Social Responsibility'.

In strategy, organizational purpose means to give the firm its reason for the existence. Organizational purpose is made up of ideas, values, beliefs and objectives. It is needed to accomplish the goal of an organization and make innovative strategy to exist in a market. It can also gives direction of gaining competitive advantage and tackling competitors strategy. In simple words, it is a guiding force where every decision is made (Basu, 2013).

Corporate Social Responsibility means the responsibility for company to well manage their workforce and provide maximum satisfaction to the employees working in a company. In CSR companies are also responsible for the development and improvement of the society. They must take care of the stakeholders and try to make them happy (Basu, 2013).

2. Should organizations focus more on profit and shareholder satisfaction or responsibility and stakeholder satisfaction? Discuss your own thoughts but try to support your ideas with theory or examples

I think organizations must give priority to profit and shareholder satisfaction because only if organizations gain some profit they can use it for social responsibilities. Profit is needed to operate everyday operation of an organization whereas social responsibility is done to create a good brand image in a society. Although social responsibility might help a lot to gain profit, but before if organizations get more focused on earning profit and use it for social responsibility they can ultimately maximize the profit of an organization and there will be win-win situation for both organization and societies.

3. Write about your experience with today‘s case study. What answers did you give to the questions? What did you think of the CEO?

Today's case study was very interesting, it was about Pepico. The case study clearly presented the strategies that Pepsico is obtaining to regain their market share and compete with their competitors.

               a. What are Pepsico‘s strategic objectives? Why does the firm exist?

Pepsico's strategic objectives are to regain the market share which they lost with arch rival coca cola. They are introducing healthier drinks or snacks to attract consumers which they are losing every year by 3%. They are also increasing their marketing and advertising investment to compete with their competitors.

The firm exists due to strong product diversification and good portfolio management.

               b. What are the possible strengths and benefits of the strategy?

Some possible strengths and benefits of the strategy are:

• They could regain their market share.
• By opting to healthier drinks and snacks they can attract more consumers.
• There could be growth in revenue and profit.

               c. What are the possible weaknesses and disadvantages of the strategy ?

Some possible weaknesses and disadvantages are:

• More investment in marketing and advertising
• Downsizing their employees
• Pepsi Next may also fail like Pepsi Edge

               d. Do you think the organization has the right balance between profitability and responsibility?

I don’t think the organization has the right balance between the profitability and responsibility because shareholders were not satisfied due to the decreasing stock price and they have announced to cut their employees by 3%. Likewise, it does not look like they are investing any money on social responsibility.

CEO is trying her best to revive the company's core business and establish company as a maker of healthier drinks and snacks. Likewise her aim to triple the revenue of nutritious products by 2020 is a positive step. Although she is not able to please shareholders and cutting number of employees I find her good at her job and dedicated towards to the company's objective.

References:

Basu, C., 2013. [Online]
Available at: http://smallbusiness.chron.com/difference-organizational-purpose-objectives-36051.html
[Accessed 2013].

Wiley Ireland, R., Hoskisson, R, and Hitt, M. (2009) The Management of Strategy: Concepts and Cases, 8th Ed. Cengage Learning

Grant R (2010), Contemporary Strategy Analysis: concepts, techniques,applications Ed 7. Blackwell.