Why Firms Are Jumping on the Sustainability Bandwagon - Essay Example

?Strategies for a two speed program Developed nations always have an eye on emerging economies especially when it comes to manufactures .The low costlabor and rapid growth in income of individuals has helped them to invest in emerging economies like India, China and Brazil. According to study there are two types of economies, they are namely low growth and high growth. Both economies have different needs for their business to survive and many challenges to face. It is always important to have a flexible organization in order to design the product according to the customer needs and taste. Today the companies are more concerned on R&D so that they can deliver better product. Successful business always requires a best location in the two-speed world. These companies has to study on the market to produce the products cost effectively. According to management experts for a two speed economy it is important to note that profit becomes the primary objective which can be attained only through proper growth. Pricing is secondary factor but best pricing is concerned with product design, a better product design helps to hold better price in the market. It’s very important to handle product and pricing on same hands finally comes the reward for the market with proper incentives, these compensation helps the companies to hold the market. The basic principles of two speed world are to produce products in developing economies at low cost labor and to do their R& D in the developed economies. It is very important to consider that the new product cannot be taken to the emerging economies as it is. It has to be transformed, and it should adapt to the needs of the culture and taste of the people in that economy. This is an important lesson taught by these economies to the rest of the world. So we can anticipate that these economies bring growth & development to the world Fashion or Strategy? Why Firms Are Jumping on the Sustainability Bandwagon. The ongoing trend in the business scenario is to develop sustainable business. Sustainability here refers to companies focusing on environmental, social, and governmental factors or in short called ESG. Focusing on ESG has become need of the hour as it’s not just the image of the company which benefitted but the bottom-line too in a great way. Companies adopting sustainable mode of business strategy gets benefitted from all sides right from customers who are these days very much conscious about the environmental impact the company is creating or how green the company’s products are. Other stakeholders who are concerned are the money lenders such as banks and financial institutions who lend believe that in order for a business initiative to become successful without any hurdles it requires total support from the social community which will be extended only if the business do not cause any harm of any kind to the community and in turn only a successful business can return the money lend by lenders. Other concerned people are the company management who looks forward to save cost through cleaner and efficient business. Companies focusing on sustainability instead of simply surviving in the market adds value to their product offering thus improve the bottom line of the companies. These are reasons why companies are seriously adopting social marketing concept to involve society their business. Even government have become particular on the ethical business practices to be followed by the companies wherein failing to do so would attract restrictions from their side. It’s clear and evident from these developments that focusing on sustainably by companies is no more a fashion or trend adopted by the companies as in past, but a very serious and integral strategy from the company right from its core. Building a Brand on the Smell of Mom's Kitchen: How Panera Found Success in a Down Economy: Panera is the country’s fastest growing old stylish artisan bread cafes, which offers assorted & contemporise style menu in affordable cost with almost 1,420 stores and with a market capitalization of $3 billion. Panera has become the place of happiness for both investors and food lovers. The success of panera is from their detailed investigation to provide healthy meals to the changing Palette of customer’s at best affordable price which enables them to compete against other market Players. Panera kept holding on to its value and quality at the time of recession by providing more quality to it customers with the support of its management. The transformation of Panera was from St. Louis Bread Co to the current Artisan bread cafes. The main focus was on to the health factor of the customers by providing them with the home made produces of greens which offers high calories and less fat. Panera’s success mantra was to keep the quality and maintain it as it is very difficult for most of its competitors. Detailed market study about its clientele in different location also adds to the profitability of this warm, cosy bread cafe. Today it holds a strong market which welcomes its customer with its beautiful environment that makes every customer to exceeding their expectation. Panera always wanted to do their best to provide exclusive products to its anticipating market. The main belief of this cafe is that to cut the niche of market, by just be the same without lowering the product quality but certainly increasing the variety with low cost menus with health consideration. Panera is being a role model for any cafe’s or fast food restaurants in and around US that they teaches the world ,that to be top of the world it’s very important to think differently and do the best to make every single customer happy. Creating corporate advantage A corporation consists of several resources or parts. It’s the combination of these parts makes it unique in characteristics. A company decides on the kind of business it should foray based on the resource it has. The resources range from a highly specialized on one side to a very general on the other side that limits the choices and limits of a company. Certain resources which can be taken into consideration are scope of businesses, coordination mechanisms, control systems and corporate office size. Organizations can set limits on each of these resources based on its ability and priority, thus defining the characteristics of the company. Companies enter into several businesses over a period of time. The relatedness in these businesses should be within the resources but not the products, which in fact will provide the best benefit for the company and vice versa may prove very fatal over a period of time. Newell is company that manufactures curtain rods with a turnover of 14 million dollars back in 1966.The CEO of the company defined its business as manufacturing and distributing of volume merchandize products to volume merchandisers. In 1997 the company touched 3 billion in revenue. Even though the company have very wide range of product, they share commonality in resources which enables the company to have a high level of coordination. All key managers who have the knowhow except the sales team are encouraged to work for different product range of the company. Also the company implemented a single common control system based on 30 variables, since the company have similar business. Also the size of the corporate office is also the small because of the generalized resources. Here in Newell the resource determined the company’s business forays, coordination and corporate role. Sharp Corporation which is 14 billion dollar electronic giant has highly specialized resources. The company decided to foray into those businesses which their superior LCD technology can provide competitive advantage in, as a result to make maximum returns from the short lived products they manufacture and sell. There exists large number of corporate staffs which is important for the kind of business they are in. Also the resources of the company is shared to a great extend as the technology for all product range originate from a single place. At Sharp the control systems are based on operations or people behaviour. The company looks forward for a person who extends long term benefit for the company. Tyco is 12 billion dollar conglomerate with wide range of business interest. The company has highly generalized resource have high financial controls and good incentive system. The company have less corporate staff since it does not require much coordination between the verticals. Each individual entity acts as a business of their own with an objective to maximise its profits. Thus there exists various strategy’s based on resource, business and organization which results in competitive advantage , coordination and control which companies such as Tyco, Sharp and Newell had adapted based on the resource. The lesson inferred is that there is no single right success strategy. Organizations should proactively upgrade its objective and strategy according to the changing external environment. There can be instances where in spite of the relatedness with the business the value added will be not better than conglomerate. Similarly conglomerates also find that cost cutting can be achieved through controlling unrelated businesses. Whenever companies adopt principles and policies based on resource and there exists a good corporate advantage, but a strategy should be linked to the initiative to make it successful. Works Cited “How to Write a Good Article Summary.” Ehow.com. May 30 2011. Read More