...Cyworld: Creating and Capturing Value in a Social Network “Cyworld: Creating and Capturing Value in a Social Network” discusses the growth and evolution of the Korean social media network, Cyworld, and the decisions made by its executives in order progress the company into what it is today. Over the course of the article, Sunil Gupta and Sangman Han cover how Cyworld has evolved from a simple social network to one that utilizes mobile networking, digital micro-transactions, and advertising as ways to generate revenue. Issues regarding how Cyworld’s executives would create value for their user base and in turn, generate revenue, by capturing said value are also discussed. The main issue presented for Cyworld executives was how they were going to transition from their original business model of a clean and ad-free social network to one that did more as their install base grew over time. By leveraging the knowledge gained from previous marketing classes, the data provided within the Cyworld case study, and my own personal experiences, I suggested that Cyworld focus its efforts on their most connected members as well as their mobile networking service. These marketing decisions would not only support Cyworld’s original business model and brand image as a social networking company, but also provide a natural direction of progression for Cyworld to go through. 1. Why do people use social networks? Over the past decade, social networks and social media in general has quickly...
Words: 1765 - Pages: 8
...1. Knowledge is defined as justified true belief. Why knowledge created in organization is defined as justified true belief referring to the process of knowledge creation in organization. To answer why Knowledge is defined as justified true belief, we need to analyze how is the process of knowledge creation in organization at first. Based on the SECI model of knowledge creation, the process of knowledge creation in organization including four phases. The first phase is socialization which means Sharing and creating tacit knowledge through direct experience. It includes four parts. First, capturing tacit knowledge through direct experience (e.g. interaction with suppliers or customers). In the IDEO case, they kept clients involved and learned from their clients by assimilating the things clients did well into their own methodology. Second, by walking around inside the company, knowledge or the latest available information was collected or acquired. In the 7-11 case, through POS data and Tanpin Kanri, 7-11 obtained the latest information of inventory and sell order data, they make the reasonable decision on these valuable information and knowledge. Third, accumulating and systemizing tacit knowledge by and sharing between individuals. In IEDO and 7-11, they both create an environment for knowledge sharing. IEDO use brainstorming and 7-11 use “Box Lunch Corner” to encourage employees to show their ideas. Last, interpreting tacit knowledge by transferring one’s ideas or...
Words: 2090 - Pages: 9
...Shared Value Creation; Revolution or Rhetoric? Abstract The concept of Creating Shared Value(CSV), was made popular in a Harvard Business Review(2011)by M. Porter and R Kramer defines as, policies and operational practices that enhance the competitiveness of the company while transforming social problems which is related to the corporation into business opportunities and simultaneously yield greater profitability(Porter, Kramer,2011). As it sounds, it is a seductive promiseand has so far received obscene attention in the business markets and among business educators. Both authors seeks to regain trust in “business and society who has pitted against each other so long” …”Learning how to create shared value is our best chance to legitimize business”(Porter, Kramer, 2011) is how companies were viewed as prospering at the expense of the community. With both aims of evaluating and analysing the concept of creating shared value, in this paper, we suggest how CSV can help businesses harness its full potential by simply creating economic value while simultaneously creating value for society. Focusing on making the right kind profits, companies should look beyond just merely maximum profits but also integrates social benefits at the same time; starting a positive cycle which reconnects business with society. In CSV, it represents a new approach for businesses moving beyond CSR approaches in the past. However promising this bold new approach is, it has also created polarized...
Words: 2295 - Pages: 10
...management, and finally, in their implementation. In resource-based conflict, particularly those that involve rare earth elements such as the conflict that evolves around the discovery of oil in Turkana by Tullow Oil, it is important to understand the background of the conflict from a strategic management perspective. The Resource Based View (RBV) proffers that the competitive advantage of a firm or organization is largely dependent on the application of the bundle resources at its disposal. In mentioning competition, which is a subset of conflict, this sets the pace for making sense of why there is always a sense of conflict around resources. The Resource Based View provides a set of criteria for the evaluation of these resources, known as the “VRIN” characteristics, which is an acronym that stands for: Value, Rarity, Inimitable, Non-substitutable, and this criteria explains to an extent why the discovery of resources has become the arena for conflict. This paper explores the measures that can be taken within the specialization of strategic management to remedy conflicts around resources. The VRIN characteristics are helpful to...
Words: 760 - Pages: 4
...define “shared value”? Contrast this with the approach advocated by Friedman, and the “corporate responsibility’ mindset which followed. According to Porter and Kramer, shared value involves creating economic value in a way that also creates value for society by addressing its needs and challenges. Shared value is a new way to achieve economic success. (Harvard Business Review) Friedman talks about social responsibilities of a company. According to him, social responsibility of the organization is only towards its shareholders. Its main focus is to engage in activities to maximize profits and return some portion of it to the shareholders as a reward for the risk they took in investing in the company. 2. Is “Fair Trade” consistent with the concept of shared value? Is traditional philanthropy consistent with this concept? Why or why not? Yes. Fair value is consistent with the concept of shared value where it focuses on economic value along with addressing the needs of the society. Traditional philanthropy is more like making donations, focusing on meeting the needs of the society through monetary gifts. So, I would say, philanthropy is not exactly consistent with shared value. 3. Porter and Kramer discuss three ways in which shared value is created. Discuss each and provide at least one example of each approach. There are three ways to create shared value. * Reconceiving products and markets. * Redefining productivity in the value chain * Building...
Words: 690 - Pages: 3
...MKC1 Marketing: the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large 4 components of marketing 1. Creating: the process of collaborating with suppliers and customers to create offerings that have value 2. Communicating: Broadly describing the offering and its value to potential customers as well as learning from customers 3. Delivering: getting those offerings to the consumer in a way that optimizes value 4. Exchanging: trading value for those offerings Marketing’s 4 P’s 1. Product: goods or services (creating offerings) 2. Promotion: communication 3. Place: getting the product to a point at which the customer can purchase it (delivering) 4. Price: The monetary amount charged for the product (exchange) Value: Total sum of benefits received that meet a buyers needs Personal value equation: The net benefit a consumer receives from a product less the price paid for it and the hassle of effort expanded to acquire it Value = benefits received – (price + hassle) Hassle: The time and effort the consumer puts into the shopping process Marketing concept: A philosophy underlying all that marketers do, driven by satisfying customer wants and needs Market oriented: The degree to which a company follows the marketing concept Supply chain: All of the organizations that participate in the production...
Words: 923 - Pages: 4
...if it does. Recreate the query in Question 1 so that table does not allow an insert where the createdDate is less than the current datetime --- Insert a row into MyNewTable using the current datetime value--- If your Insert completed successfully something is wrong with your previous statements. If it failed? Explain why and how you might change the create table --- In order to fix the problem, assuming you always want to insert every row using the current date time value. Hint -- Search for -- "adding a second to a date field SQL" [pic] I believe using the smalldatetime option in order to use the ‘ss’ for the two digits to represent the ranging value from 00 to 59. Also using an alias for the table name in order for the query to proceed without errors. -- Q3. In the script above, Explain exactly why you cannot update col1 for the final two statements in the list. Each column in a table must have a specific data type and usually a maximum size that controls what data can be inserted or updated and whether a column may contain NULL values. You can’t add a non-numeric string to an INT column. It is also possible to further control what data you can add by defining check constraints. For example, you may want to restrict the values of a column to a particular range of values. -- Q4. Using Alter Table statements. Add a new Column to MyNewTable (see q1 above) column name =primaryID (as an INT) -- Add a Primary Key Constraint to...
Words: 689 - Pages: 3
...business Porter’s five forces – Shows how value is captured Threat to substitute Intensity of competitive of competition Power of buyers Power of suppliers Threat of new entrance Level of risk (low, medium or high) Why? (justification of risk level) How can we mitigate the risk * Concentrate on high level risks within porters 5 forces * * GE Mckinsey Matrix – category attractiveness and competitive position * SWOT Relative Strength Relative weaknesses Competitive advantage: Superior inputs Superior technology Superior operations Superior data Superior collaborators/partners Superior branding Superior offering Superior perceptual positioning Superior access Superior segment Superior customers Protano 8 C Category – demand - willingness to buy and ability to pay, need is perceived lack, never a product. Customers buy benefits and solutions Perception – the world according to you Marketing manager: Creator of value Manager of perception Master of persuasion Keeper of relationships for a lifetime Want – a specific satisfier (product or brand) * Competition – any player in the market going after the same customer Horizontal competition – competition across similar competitors Vertical competition (forward) – towards consumers Vertical competition (backwards) – towards suppliers Company – competitive position Customer Consumer Strategic problem must ask the question “why” afterwards Opportunity statements must...
Words: 892 - Pages: 4
...Explain why the concept of competitive advantage is central to the study of strategic management The concept of competitive advantage is central to the study of strategic management, since a company (or an organization) must follow an aligned strategy to outperform their rivals in the industry. Michael Porter introduces three generic strategies that a firm may apply in order to do so. (Overall cost leadership, Differentiation and Focus). In order to create and sustain competitive advantage, companies such as KFC (case in beginning of CH5) should analyze the value chains of their customers and suppliers to see where they can add value. Furthermore studies have shown that businesses combining multiple forms of competitive advantage outperform those that used only a single form. “Stuck in the middle” firms are those who do not apply any of the forms. These are the ones that perform the worst. 2. Briefly describe the three generic strategies – overall cost leadership, differentiation, and focus. Overall cost Leadership: “Generic strategy based on appeal to the industry wide market using competitive advantage based on low cost.” Requires a tight set of interrelated tactics that include: * Aggressive construction of efficient scale facilities. * Vigorous pursuit of cost reductions from experience * Tight cost and overhead control * Avoidance of marginal customer accounts * Cost minimization in all activities in the firm’s value chain, such...
Words: 938 - Pages: 4
...captures value,[1] in economic, social, cultural or other contexts. The process of business model construction is part of business strategy. In theory and practice, the term business model is used for a broad range of informal and formal descriptions to represent core aspects of abusiness, including purpose, business process, target customers, offerings, strategies, infrastructure, organizational structures, trading practices, and operational processes and policies. revenue model A description of how a business will earn income, produce profits and generate a higher than average return on investment. In business, a revenue model is generally used for mid and long-term projections of a company's profit potential and operation. the system design by which a business monetizes its services.[1] Examples of revenue models include: * Freemium * Subscription * Affiliate marketing * Ad-funded * Lead generation * Online shopping VALUE PROPOSITION DEFINITION OF 'VALUE PROPOSITION' A business or marketing statement that summarizes why a consumer should buy a product or use a service. This statement should convince a potential consumer that one particular product or service will add more value or better solve a problem than other similar offerings. INVESTOPEDIA EXPLAINS 'VALUE PROPOSITION' Companies use this statement to target customers who will benefit most from using the company's products, and this helps maintain an economic moat. The ideal value proposition...
Words: 701 - Pages: 3
...Definition “Mission statement is a description of what an organization actually does – what its business is – and why it does it.” [1] Understanding the tool Often called the “credo”, “philosophy”, “core values” or “our aspirations”, organization’s mission is the statement that defines its core purpose or reason for being [2]. It tells who a company is and what it does. According to P. Drucker, often called the father of modern management, a mission is the primary guidance in creating plans, strategies or making daily decisions. It is an important communication tool that conveys information about organization’s products, services, targeted customers, geographic markets, philosophies, values and plans for future growth to all of its stakeholders. In other words, every major reason why company exists must be reflected in its mission, so any employee, supplier, customer or community would understand the driving force behind organization’s operations. There are two types of statements [1]: * Customer-oriented missions. Customer-oriented missions define organization’s purpose in terms of meeting customer needs or providing solutions for them. They provide more flexibility than product-oriented missions and can be easily adapted to changing environment. For example, Nokia’s statement “connecting people” is customer-oriented. It does not focus on mobile phones or smartphones only. It provides a solution to customer needs and could easily have worked 50 years ago, and will continue...
Words: 1263 - Pages: 6
...OUTLINE I. Organization History, including a Mission Statement if possible (10 points) 2d Intelligence Battalion is to plan and direct, collect, process, produce and disseminate intelligence, and provide counterintelligence support to the MEF Command Element, MEF major subordinate commands, subordinate Marine Air Ground Task Forces (MAGTF), and other commands as directed II. Organizational Strengths and Weaknesses (40 points) A. First Organizational Strength – Protect a nation’s interest 1. Reason it is considered strength Nations pride, goals, freedoms 2. Explain why this strength is a distinctive competence Training is the hardest longest entry in our arm forces. Every Marine is a rifleman. B. Second Organizational Strength 1. Reason it is considered strength 2. . Explain why this strength is a distinctive competence Educate on Marine Corps Values that translate to civilian life and provide money to receive an education from the civilian sector. C. First Organizational Weakness. Suicide rate 1. Reason it is considered a weakness. Lose Marines and become less ready to defend nation and each other. 2. Discuss how the organization can minimize this weakness. Brief’s, coronary, and websites with information and phone lines that allows individuals that are thinking of harming themselves talk to a “person.” D. Second Organizational Weakness Size 1. Reason it is considered a weakness Less...
Words: 546 - Pages: 3
...reasons. First, activists have the wrong time-horizon, focusing on the short-term rather than the long –term. Capitalism desperately needs managers to focus their attention on creating value for their customers and the economy through sustained effort over the medium-term. Activists pursue the maximization of shareholder value as reflected in the current stock price, which leads to negative results, such as destroying real shareholder value. According to Marc Benioff, Chairman and CEO of Salesforce [CRM], this theory of business is “wrong. The business of business isn’t just about creating profits for shareholders – it’s also about improving the state of the world and driving stakeholder value.” He has been joined by others in criticizing the goal of maximizing shareholder value, including former chairman and CEO of General Electric Jack Welch, Vinci Group chairman and CEO Xavier Huillard, CEO of Unilever Paul Polman, and co-CEO of Whole Foods John Mackey. Second, the goal of activists, to extract value from companies for shareholders, is wrong. Rather, the goal of companies should be to create value for their customers and the economy. The Economist writes that shareholder capitalism should focus on growth and creation, not just divvying up profits. Activists turn capitalism into extracting value from companies and dividing it...
Words: 991 - Pages: 4
...the company’s activities and planning whilst following its corporate social responsibility. It consists of creating a system that will provide the customer with his/her needs and at the same time having the company make a profit, which therefore creates customer value. It consists of satisfying the needs of the customer whilst still reaching the company’s goals. The four principles contained in the marketing concept are profitability, customer orientation, social responsibility and organisational integration. It encourages focus on the needs and wants of the consumers by teamwork and working as a unit. (Strydom, 2004, p.299) 2.2) Profit is not just there to make the shareholders happy. Profit can benefit the company in many ways, helping it to grow, and reach the desired goals of the company. Without profit, the company can not create quality advertising in order to give it the edge over its competitors. It can not afford advertising, sales promotion, and publicity, which are essential in giving the company the competitive edge over its competitors. Quality market research will not be able to take place as the company will not have the capital to fund market research. Without profit, the product/service will not be able to stay at the desired quality. It will not be able to create a happy environment for staff (staff functions, raises etc...), in turn creating a less effective product/service. Focus on customer centricity will not be possible as limited profit means...
Words: 1997 - Pages: 8
...explains why behind every company there is a strategist to come up with innovative ideas to achieve specific goals. The need for a structural organization to grow, a plan such as a unique strategy is needed. A strategy is a unique plan, a long term plan for a structural organization to achieve a targeted goal. It involves unique activities that enhance the organization to outshine from the competitors and still preserve it. There are different strategies to take into consideration but the definition of strategy that this essay will outline here focus on three questions below: 1. What forms of value do organization wants to create? 2. How to create that value? 3. How to manage that value? In answering these three questions we will then have a better understanding of what is strategy. What forms of value do organization wants to create? Firstly, why do organization wants to create something valuable to consumer? The value benefit the consumers, therefore organization create the value consumers’ desire. Value can be in a form of service, a product or other different forms of value. A market research need to be done to have a better understanding of the consumers’ needs. After the above source being gathered, organizations are able to match the consumers’ needs with the newly created value. A win-win situation should be established for consumers and organization when a value is created. How to create value? The organization seeks to create a value that has...
Words: 848 - Pages: 4
