...Creating Shared Value MBA6008, Global Economic Environment June 6, 2014 The article “Creating Shared Value“ is a business concept created by the Harvard Business Review and written by Michael Porter and Mark Kramer on January 1, 2011. The article deals with the idea of innovating the purpose of a corporation and their relationship to the social environment in order to identify unknown customer needs and to expand the relationship with the communities in order to be mutually dependent. Porter and Kramer urge leaders to recognize that "shared value is not social responsibility, philanthropy, or even sustainability, but a new way to achieve economic success". They advocate that creating shared value will drive the next wave of innovation and growth in the global economy (Porter & Kramer, 2011). Several large corporations have already started implementing a shared value initiative – such as Google, IBM and Wal-Mart (Porter at el, 2011). Shared value creates economic value for the corporation through innovations that address society's needs and challenges. Companies create shared value in three ways: 1. By redefining products and markets 2. By redefining productivity in the value chain 3. By enabling local cluster development 1Arguably, products and markets are the greatest unmet needs in the global economy (Porter at el, 2011). Too many companies fail to reevaluate their strategy and ask themselves if their product is right for the customer. 2A company’s...
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...Unit 2 Assignment 2 Kacey M. Ressman MBA6008 Unit 6 Assignment 1 Capella University January, 2016 Introduction The company to be examined in this paper is Johnson & Johnson. Johnson & Johnson has more than 265 operating companies in 60 different countries worldwide. Within these 265 operating companies worldwide, Johnson & Johnson employs approximately 126,500 people. The Johnson & Johnson website states: “Employees of the Johnson & Johnson Family of Companies work with partners in health care to touch the lives of over a billion people every day, throughout the world” (2016). Johnson & Johnson’s worldwide headquarters is located and operates in New Brunswick, New Jersey, United States. Johnson & Johnson’s family of companies comprises: the sixth largest consumer health company in the world, the world’s fifth largest pharmaceutical company, the world’s most comprehensive medical devices business, the sixth largest biologics company in the world (www.jnj.com, 2016). Founded in 1887, Johnson & Johnson began with the primary purpose of research & development, manufacture and sale of health products to promote human health and well-being worldwide. As for long-term financial analysis and business diversification, in Johnson & Johnson’s last quarter they operated in three segments (www.gurufocus.com, 2016). These three segments are Consumer (comprising of 23% of their sales, and 12% of their profits); Pharmaceuticals (37% of...
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...Assignment 1 Questions Derrick Shoemaker 10/14/2012 MBA6008 - Global Economic Environment Assignment 1 Questions Question 5 page 21 a) Chart of production possibities, the production function shows the relationship between the quantity of inputs used in production and the quantity of output resulting from production. b) Economy is at "C" then automobile will be at "6" and forklifts would be at "19" Notice that the production possibility curve slopes downward from left to right that means that there is an inverse relationship between automobiles and forklifts. So this would be a representation of its shape. c) In the law of opportunity when the slop is steep there's a high opportunity cost for automobiles and low opportunity for forklifts. But that of that it being flat of 3 automobiles to 20 forklifts the opportunity for forklifts are higher to automobiles. d) 1. No 2. When technology improves, when more resources are discovered it will give more output with the same inputs. What I mean is that when technology improves the entire production possibility curve shifts outward. 3. As with technology this would also increase in international growth which would lead to growth in the production curve. This also would state that current production possibilities could outgrow it production curve. Income per year | | Savings per year | | | | 20,000 | | 1500 | 15,000 | | 1000 | 10,000 | | 500 | 5,000 | | 0 | 0 | | -500...
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...Studying the Great Moderation Randi Pittman MBA6008 – Section 101 Unit 6 – Assignment 1 02/15/2013 There are many things which could affect economic volatility. In fact, I recently read a case study which described this situation. The case study was entitled “The Great Moderation, Dead or Alive?” or “The Great Moderation,” for short. This case study was written by Diego Comin and was published by the Harvard Business School (Comin, 2011). The author begins by giving us a background on the situation that he analyzed. The case in question has often been referred to as the Great Moderation. After thoroughly describing this time period, Comin then provides us with some rationalizations for this occurrence (Comin, 2011). Next, the topics of the variance of stocks and reduced amplification were covered (Comin, 2011). There were also other possible causes of changes in volatility discussed; such as globalization, inventory management, policy, demographics, and technological diffusion (Comin, 2011). Well put together, the case study is an excellent example of how one can analyze an economic situation. To begin, let’s take a look at what happened during the time period known as the great moderation. During this time period, which began in the 80’s, there was a reduction in the volatility of output (Comin, 2011). Exactly what does this mean? In terms of economics, volatility can be defined as “a measure of risk based on the standard deviation of the asset return” (Volatility...
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...Unit 1 Assignment 1 Problems Chapter 1: Problem 5, A-D, Page 21 Chapter 3: Problem 7, A-D, Page 68 Angela Besler Capella University MBA6008 January 12, 2014 Unit 1 Assignment 1 Problems Chapter 1: Problem 5, A-D, Page 21 A. Table and Graph: Types of Production | | Automobiles | Forklifts | | 0 | 30 | A | Production Alternatives | 2 | 27 | B | | 4 | 21 | C | | 6 | 12 | D | | 8 | 0 | E | | A production possibility “curve displays the different combinations of goods and services that society can produce in a fully, employed economy, assuming a fixed availability of supplies of resources and fixed technology” (McConnell and Et. Al., 2012). The specific assumptions that a production possibilities curve has is that of: * Full employment: employing all available resources * Fixed resources: quantity/quality of production factors fixed * Fixed technology: methods used to produce output(state of technology) constant * Two goods: economy produce only two goods; both consumer and capital goods (McConnell and Et. Al., 2012). “Each point on the curve represents some maximum output of two products” (McConnell and Et. Al., 2012). “Gross Domestic Production (GDP is the total market value of all final goods/services produced annually within boundaries of US, whether by US or foreign supplied resources” (McConnell and Et. Al., 2012). “Net Domestic Production (NDP) is the GDP less part of the year’s output that needed to replace...
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...The Great Moderation—Dead or Alive? Yolanda Rivera MBA6008 Global Economic Environment Abstract The purpose of this paper is to analyze and critique the Harvard Business Review article, “The Great Moderation” written by Diego Comin. I will discuss its causes and effects as well as the end of an economic cycle. Additionally, the information gathered can be used to better understand how and why “The Great Moderation” is no longer a valid method of the business cycle. According to Diego Comin, (2012), the Great Moderation can be defined as “a decline in aggregate volatility”. If a business cycle or quickly engineered spending policies are implemented revolving around political motives we can realize an increase in the margin of error (Hammond, J.D., 2011). The volatility of today’s global markets is growing at an alarming rate, even more so than during the great depression suffered by America in early 1930s. Beginning in 2007, the United States began seeing the effects of the end of a business cycle or “The Great Moderation coming to a close. For years, we have seen prominent growth cycles with limited down turns which reached a climax into a very strong world market. Todd Clark, (2011) explains that, “most recently, the severity of the recession that started in late 2007 has led some observers to conclude the Great Moderation is over.” There were many contributing factors revolving around the 2007 recession in America. For example, the growth of the housing bubble; the...
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...Paper received 100% grade. The Coffee Crisis “In 2004, the governments of coffee producing countries were considering how to respond to the dramatic decline in coffee prices” known as the coffee crisis (Capella University, 2011, p. 1). This coffee crisis was a result of four main factors: (1) the breakdown of the International Coffee Agreement (ICA); (2) the increased supply of coffee resulting from Vietnam’s entry into the market and Brazil’s technological advancements; (3) inelasticity of demand for coffee; and (4) movement from an oligopoly to a competitive market. The result, unfortunately, was a gap between the product market and resource market that needed—and still needs—to be addressed. Economic Implications of Operating in Different Market and Industry Structures In 1989, “roasters in the United States faced declining demand with the exception of gourmet coffees, but the ICA quotas required them to buy large quantities of relatively lower quality Brazilian beans” (Capella University, 2011, p. 3). As a result, “consuming nations, let by the United States, and high-quality producers, led by Costa Rica, demanded new quotas, and the negotiations over a new agreement deadlocked” (Capella University, 2011, p. 3) and the agreement ultimately broke down. Prior to the breakdown of the ICA, the coffee market resembled that of an oligopoly, which is defined as “a market dominated by a few large producers of homogeneous or differentiated product. Because of their...
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...Company Analysis: Facebook, Inc. Merlinda C. Lucas MBA6008 Global Economic Environment Instructor: Lester Hadsell Abstract The Coffee Crisis case study illustrates how the decline in coffee consumption and the rise of coffee production was addressed by the governments of coffee producing countries in 2004. The coffee market was identified, defined and explained in the context of both international nature and structure. The new entrants into the coffee market were identified and examined. A supply and demand analysis was conducted to address what the shift factors were and what were some of the changes in consumer behavior. It was concluded some of the remedies presented by the International Coffee Organization, Inter-American Development Bank and Oxfam were incorporated to help elevate some of the issues presented and analyzed. Facebook, Inc. is the world’s leading social networking company. It became a public traded company on May 18, 2012, filing a $5 billion initial public offering (IPO), “making it one of the biggest in tech history and the biggest in Internet history” (Tangel, Hamilton, 2012). Facebook is social networking service, established in 2004 and headquartered in Menlo Park, CA, that builds products to create utility for users, developers, and advertisers. Users (people) use Facebook to stay connected and share and express what matters to them with their friends, family, and community through their user profiles. Developers use the Facebook...
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...MBA6008 Organization Selected – Starbucks Company Analysis Abstract Starbucks is a publicly traded company that has been a main competitor in the coffee and in the special eatery industries. This document will give a brief description of the company, an Analysis of the economic implications of operating in global markets and different market and industry structures, and an assessment of the impact of ethical and regulatory considerations of Starbucks. It will analyze the macro and micro economic environments and then give a conclusion and recommendation of how the company can improve in the future. Introduction Starbucks Corporation is an American global coffee company and coffeehouse chain based in Seattle, Washington. Starbucks is the largest coffeehouse company in the world. According to their 2012 Annual report, they have 18,066 stores in over 60 countries, including 12,903 in the United States, 1,324 in Canada, 989 in Japan, 851 in the People's Republic of China, 806 in the United Kingdom, 556 in South Korea, 377 in Mexico, 291 in Taiwan, 206 in the Philippines, 179 in Turkey, 171 in Thailand, and 167 in Germany. In addition, Starbucks is an active member of the World Cocoa Foundation (starbucks.com). Starbucks locations serve hot and cold beverages, whole-bean coffee, micro ground instant coffee, full-leaf teas, pastries, and snacks. They have over 30 blends and single...
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