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‘

Organizational Purpose

The ‘organizational purpose’ is the expression or sign of needs of the organizations stakeholders and their relative significance. The needs of stakeholders mostly varied and habitually conflicting. Also, wants, its purpose may perhaps also reproduce basic internal considerations, like preference of the board or organizational code with ethics. From organizational purpose vision and mission facilitates the essential foundation for making strategic choice. The mission, vision and organization purpose describe what the organization needs to be consider for the long term and short term organizational goals, objectives and success. Also describe what the organizational needs to do in order to achieve effectiveness and efficiency.

The definition of organization mission and vision has much as similar with organization’s business. It facilitates and helps to understand the markets in which organization operates and principal behavior it competes. A critical part of this process is the organization questioning its usual thought of what business it is in.

Frequently expressed “organizational Purpose” using the enlisted variables:

       1.      The target beneficiary or customers of the organizational outputs.

       2.      The ethical values and norms of the organization.

       3.      The type of citizens employed by the organization.

       4.      The scope and size of the organization.

       5.      Cost and Quality.

       6.      Structure of the organization.

       7.      Varieties of products and services produced by the organization.

       8.      The workers conditions and relationships.

Corporate Social Responsibility (CSR)

Corporate Social Responsibility is referred as the managing of the overall impact of an organization on community or society. This comprises the through or straight impact of operation and the broad impact of the business ups and downs in value chain, from suppliers to consumers or customers. In addition it covers the voluntary contribution the company makes to the society and wider community.

Corporate Social Responsibility covers the each followings element:

     1.      Security and labour.

     2.      Human rights.

     3.      Corporate governance and Business standard.

     4.      Human disaster liberation.

     5.      Promotion of education and health.

     6.      Economic development and enterprise.

      7.      Protection of the environment.

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 should focus both on profit and shareholder satisfaction as well as responsibility and stakeholder’s satisfaction because both terminologies are essential for organizational goals and objectives. In my opinion profit and responsibility are interlinked with each other, so I am explaining the both shareholder or stake holder perspective.

Shareholder value perspective

The shareholders values highlights profitability over responsibility and perceive organization mainly as instrument of its owners. Shareholder value proponents consider organizations achievement can be calculated by things as dividends and economic profit share price, and see stakeholder management rather than a means than as end in itself. The purpose of an organization at first is to maximize shareholders value, with what is legally permitted. By presenting market based relationships and liberal self interest between all stakeholders and the corporation, chasing maximum values for the shareholders will consequence in societal wealth being maximized.

Stakeholders value perspective

The stakeholder values highlight responsibility over profitability and perceive organization mainly as collations to hand out all parties involves. Stakeholder value supporter consider an organization achievement should be considered by the satisfaction of all the stakeholders and perceive stakeholder management as a means and end. Due to high level of trust between all parties and strongly motivating workers inside the organizations; pursuing mutual interest of all stakeholders is not only more just but also maximize societal health. 

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?

 What are PepsiCo’s strategic objectives? Why does the firm exist?

As, we know each and every organization have their own mission vision and objectives. The first and key objective of the organization is to lead and capture market and become the top brand which PepsiCo follows as well. PepsiCo focus more on teenagers or young people, accordingly they are thinking and producing the products targeting the young people. Other objective is to earn and generate $30 Billion income by 2020. Therefore emergent strategy applied by the PepsiCo. They are producing and trying innovating ideas in which customers’ sense composite the finest. As we know they are concentrating Asian market after losing market in U.S.A. Understanding Asian market is large and benefit for the products like food and beverage. In addition PepsiCo is trying to increase the business portfolio and hence increase the product line.

Main aim of the PepsiCo is to lead and be top brand in food and beverage industry. Also, they are planning to provide reward as to motivate their investors as well as shareholders by inspiring their community, customers and workers. Furthermore, by undertaking fair and ethical business, PepsiCo want to be authentic and finest to their stakeholders and shareholders. PepsiCo frequently want to improve different aspects like social, economic, environmental and cultural in which they are operating in order to be more competitive by generating to be better in future.

Other objectives of PepsiCo in to provide better goods and services at affordable cost, also functions best to the customer needs, interest and desire. For example: PepsiCo need to take care in mind to produce more healthy food, snacks and beverage from previous, Hence to increase the market share by planning to gain international expansion and synergies. In addition PepsiCo wants to maintain sustainable growth and competent in distributing system empowering workers and to be responsive.

What are the possible strengths and benefits of the strategy?

Different possible strength and benefits of the PepsiCo strategy are as enlisted below:

v  Leading biggest portfolio of food and beverage.

v  Workers empowerment.

v  Providing opportunity to locals,

v  Increase in market share.

v  Business expansion in more than 200 nations.

v  Targeting different taste and preference according to nation wise.

v  Dedicated and experienced.

v  Balanced beverages portfolio.

v  High nutritious and balanced products.

v  Increasing market share by increasing the product line.

What are the possible weaknesses and disadvantages of the strategy?

Different possible weaknesses and disadvantage of the PepsiCo strategy are as enlisted   below:

v  Extreme competition from rivalry (Coca-Cola).

v   Not leading as a top (number one) brand in chosen industry.

v  Low preferences from customers.

v  High risk to PepsiCo.

v  Less smart and attractive packaging.

v  Shareholders desire and expectations may not be fulfilled.

v  Failure in a product line may lead customers to substitute to another similar product.

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

No doubt, that the main aim of the organization is to achieve more benefits which applies in PepsiCo as well. When, PepsiCo decline of 3% Market share per annum in United States, concentrated more in Asian countries. However, PepsiCo must bear in mind of creating better and innovative products also by propelled named “GOOD FOR YOU” OR “BETTER FOR YOU” which is nutritious and quality products. It also needs to do a lot to balance between profitability and responsibility, so that organizational goals, mission, vision and objectives should be attained.

Charismatic Business leadership is followed by the PepsiCo chairman and CEO named Indra Noovi. The pettiest thing of her is to target to triple in generating revenue by 2020, targeting to establish PepsiCo a number one brand in food and beverage industry. She is a good leader because she is also careful about the responsibility towards the workers, stakeholders as well as customers.

Nevertheless, I feel that she is ignoring the older groups by only targeting the young group. As we know products is consumed by each and every age groups, so organization like PepsiCo need to target every age groups by innovating appropriate products of food and beverage for every age groups.


References:

1. CSR analysis (ISO 26’000), and CSR strategy development and definition of measures,

Spar Management AG, 2009-2010

2.Lectures in social management and CSR concepts, FHNW / Basel, ZHAW /Winterthur,

BFH / Bern ongoing, since 2003

3. Michael H. Zack, “Developing a knowledge strategy”, California Management Review, Vol.41, No.3, Spring, 1999, pp 125-145. ?

4.  Porter, M. E. (1980) Competitive Strategy: Techniques for Analyzing Industries and Competitors. 1 Edition. New York: The Free Press.

5. R. Nelson, “Why do firms differ and does it matter?“, Strategic Management Journal, Winter special issue, Vol. 12, 1991, pp. 61-74.

week 9

        1.      In your own words and using referenced quotes describe what is meant in strategy by the ‘Resource-Based View’?

  Ø  The resource based view declares that the organisation have better performance and competitive advantage which describe through its distinctiveness and capabilities.

Resources are the property of an organisation whereas competencies are the ways of utilizing the property to gain organisations goals effectively and efficiently.

  The main aim of Resource Based View Strategy of an organisation is to:

1. a.  Make Familiar about conceptual basis for declare that the key human resources are basis of Competitive advantage.

      b.      Firms have the opportunity to producing human capital advantage by the means of retaining and   recruiting outstanding workers, through detain the stock of brilliant talent humans, underlying with productive potential.

          c.       Isolating Mechanisms-attributes that create duplication complicated.

         d.      Outcomes in one perspective cannot easily be translated to another if the distinctive “Critical Success Factors” are missing.

         e.       Stresses value of different interrelation between the firms human resources and others like financial, legal, physical and so on.

          f.       Human Resource managers can be respected not only for their responsibility in implementing a given competitive situation, but for their role for producing strategic capability.





      2.. How might you undertake ‘Internal Strategic Analysis’? What models would you apply and why? Where would you go to find the information you need?


To take “Internal strategic Analysis” strategists may have to consider different thinks and needs to understand pros and cons and also depend on what kind of organisation it is, which type of situation and environment is organisation facing at present. Based on these questions we need to take appropriate internal strategic analysis so that organisation will lead and survive.

I would like to take and apply Mc Kinsey 7’s model because of following reasons: 

1. It is examined and applies in various organisations and facilitates us to understand issue of team effectiveness.

2. If something within the organisation is not working properly then it helps to find out the particular part which is not functioning well and make sure such part contributes to the organisation and shares goals and values.

3. This model helps to improve the performance of the organisation.

4. It facilitates to determine how to utilized proposed strategy to the maximum extend.

5. It supports processes and departments at the time of merger or acquisition.

This theory was developed in early 1980’s and named MC Kinsey 7’s Model. Robert Waterman and Tom Peters are the developers who work as consultants in Mc Kinsey and company consulting firms.
    
      There are seven elements to identify and understand for the organisational effectiveness is:  

      There are four “soft factors” such as skills, staffs, style and shared values are more influenced by the culture and less tangible. Soft factors are difficult to describe. 
     Also, there are three “hard factors” such as structure, system and strategy are the strategy of statements: IT system and formal Processes; reporting lines and organisational charts. Hard factors are easy to identify and define.

  

       3.      Talk about your group video work. How is it going so far? Do you have a plan? What are you most worried about at the moment? What is going well?!

·         Group video work is in progress. We are five members in a team or group named Bipin Lamichane, Saurabh Sahi, Narayan Sapkota, Bicky Gauchan and Prasant Timilsina. Our organisation will be the two reputed telecommunication industry of Nepal which is NTC and NCELL.

·         We are preparing to make presentation slides with video like our juniors students of year one had done. I feel it is not an easy task to join Presentation Slides with Video in perspective of Business students as compared to IT Guys.

·         Yes we have a plan to prepare and present. We prepared to present 5 Parts of Group Videos and assign one task to each individual so that it will be easy. Part 1 Covers Introduction of Industry NCELL and NTC, Part 2 covers PESTEL analysis, part 3 covers SWOT analysis, Part 4 covers MC Kinsey 7’s Model and finally part 5 Covers recommendation and conclusion.

·         I am worried about how to make a MC Kinsey 7’s Model of telecommunication of Nepal i.e. NCELL and NTC because it is not an easy task. We need to take our research in deep to understand and familiar with 7’s model which takes a lot of time and effort.

·         I think SWOT analysis of NTC and NCELL is going well. Because we have done it and understand the entirefour element like strength, weakness, opportunity and threat of NCELL and NTC Telecommunication of Nepal.

   References:

1. Collis, D. J. & Montgomery, C. A. 1987. Corporate strategy: Resources and the scope of the firm. New York: McGraw-Hill.

2. Grant RM. (1991) . The resource-based theory of competitive advantage: implications for strategy formulation. California Management Review33(3): 114–135.

3. Grundy AN, Brown LR. 2002a. Be Your OwnStrategy Consultant — Demystifying StrategicThinking. International Thomson Publishing:London.

4. J Teece, “Economic Analysis and Strategic Management“, ? California Management Review, Vol. 26, No. 3, Spring 1984, pp 87-110; J. B Barney, “Firm Resources and Sustained Competitive Advantage“, Journal of Management, Vol. 17, 1991, pp. 99-120.

5. Johnson G, Scholes K. 1989. Exploring CorporateStrategy. Prentice Hall: Hemel Hempstead.

week 8

Make a list of competitors for Islington College

Islington College, Formerly known as Informatics College, is an autonomous private education institution in Nepal recognized for providing quality international education, academic excellence and outstanding graduates in the area of Business and IT. Having grown from strength to strength over 14 years, the college is the first and only college in Nepal to directly partner with recognized UK University named London Metropolitan University.

Islington College is only one institution in Nepal providing undergraduate’s degree in Business and IT in affiliation with London Metropolitan University. Programmes are Bachelors in: Business, Networking and IT Security and Multimedia Technologies, Computing, etc

Competitors of Islington College.

There is different strategy of the colleges in Nepal to attract Nepalese Students. Some becomes partners with international Degrees from USA and UK, Some offer free laptop with every student enrolment, some reduce total tuition cost to be competitive. Here are the lists of colleges who are the Main and Secondary competitors.

Main Competitors.

•           Kings College
•      NOVA College
•         International School of Management and Technology
•        The British College
•          Softwarica College.
•         Silver Mountain College.
•        Presidential College.
• .      Lord Buddha
• .      Indira Gandhi National Open University (IGNOU).
• .      Padmashree College.

Secondary Competitors

• .           Littles Angles school of management.
• .           Kantipur City College.
• .           Campion College.
• .           V. S Niketan College.
• .           White House College
• .          Don Bosco College.
• .           Apex College
• .           DAV College
• .         Global College of Management.
•             Everest College.
•             Nava Jyoti College.
•           Capital College and Research Centre.
•   .       Milestone International College.
•           Kathmandu University School of Management (KUSUM).
•           Nepal College of Information Technology (NCIT).

Develop a Porter’s 5 Forces Model for Islington College

 

Porters Five Forces Model of an Islington College.

Threat of New Entrants.

As we know that to open a college in affiliation with international university is not a easy deal. It requires high investment for licensing and needs to follow strict rules and regulation of the governments, needs dedicated research and understanding. Economies of Scale are a factor which Colleges needs to do before running international degree which takes long time. Due to this new firms find complex to survive. So threat to the college is relatively High.

Bargaining Power of suppliers

London Metropolitan University is the suppliers of Islington College. As everyone knows it is very difficult to switch to another international university for the colleges. This tends high bargaining power of suppliers automatically. Because of legal procedure, requires lots of research, licensing, etc there will be high switching cost. As we know few supplies tends to high bargaining power of suppliers and vice versa.

Bargaining Power of Buyers

There are many colleges offering same courses and degrees but student of one college find difficult to transfer their courses to another because courses are difficult to match. So there is low bargaining power from students. Switching cost of students tends to be high, so there are no threats to college from buyers. In addition, students have less chance to create threats to college entering as competitors. So, college will take advantage of low bargaining power.

Threat of Substitutes Products or services

Numerous Colleges offers online and distance learning degrees with lower cost which perhaps be the substitute products to Islington College.

Nepal is developing country, I believe concept of distance and online learning in Nepal are not known to citizens, people think online degree certificates or off campus study are not accredited and recognized well. Due to this there is a probability of threat from to the Islington College. So, a threat to substitute’s products and services is relatively high.

Competitive Rivalry

There is an extreme competitive rivalry among colleges because of more than 30 colleges at present provides international degree in Kathmandu, provides low fee structure than Islington. In precedent Islington used to have monopoly because of only college providing international degree. Nowadays Nepalese university also provides quality education at low cost along with highly qualified lecturers and newly integrated infrastructure and technology. So there are more threats to the college.

To which strategic group might Islington College belong?

Strategic Grouping of Colleges.

Can You Map the Group

Islington college is only one college who provides international degree, formerly known as informatics have newly integrated infrastructure, building architecture and Technology, so it cost is high as well.




References:

1. DeWit B, Meyer R. (1988). Strategy: Process,Content, Context. International Thomson:London.

2.Johnson G, Scholes K. (1989). Exploring CorporateStrategy. Prentice Hall: Hemel Hempstead.

3. Porter, M. E. (1980) Competitive Strategy: Techniques for Analyzing Industries and Competitors. 1 Edition. New York: The Free Press.

4. Porter, M. E. (1985) Competitive Advantage: Creating and Sustaining Superior Performance. 1 Edition. New York: The Free Press.

5. Porter, M.E. (1998)  Michael Porter on Competition. Boston, MA: Harvard Business School Press.