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Shared Value Management: Academic Help for Students in Need
Shared Value is a strategy in management which was first proposed by an article “Creating Shared Value” in Harvard Business Review. This is a strategy to identify social problems which also cause trouble for the organization’s functioning. By creating shared value, new opportunities for companies are created and civil social organizations as well as the Government too benefits.
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How to create shared value opportunities?
Companies can create shared value opportunities in three possible ways, which are:
- Preconceiving products and markets:
Social needs can be addressed by companies by providing better services in the existing market, by exploring new markets and by lowering their prices by indulging in more efficient methods of production or through innovations.
- Refining Productivity in the value chain:
Companies can make efforts to improve the quality as well as the quantity of inputs along with their costing and reliability. They can also undertake better distribution methods while at the same time serving as a source for social and economic development.
- Enabling Local Cluster Development:
A company cannot thrive by itself but is largely dependent on a number of other sources such as communication, suppliers, infrastructure and labor talent. Development of the following benefits the company as well as the society.
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How can make the shared value initiative work?
- While Creating shared value, a company must acknowledge that its primary motif is not only creating profit for itself, but also for shareholders, employees, suppliers, consumers distributors, partners as well as the society as a whole and the natural environment.
- Shared Value initiatives must be operative in every area of the company’s functioning and not merely in the ones aimed at social development.
- The CSV initiatives must be particularly focused on the important strategic areas of the business.
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