Week 10

'Organisational Purpose'

Organizational purpose basically refers to the essential reason for an organisation's existence. It is the mission, vision and set values of the organisation. It is the main reason for why the organisation is established. The organisational purpose directs the organisation into what is to be achieved and what actions are to be taken to achieve success and set goals. Organizations should be able to describe their reason for being in one or two sentences. Once the organisation is able to analyse their purpose and reason of existence, they are able to focus on the threats and work on it so as to gain competitive advantage. It helps an organisation to consistently move forward and helps work on their weaknesses hand by hand.
For example: Sam Walton “If we work together, we’ll lower the cost of living for everyone…we’ll give the world an opportunity to see what it’s like to save and have a better life.” (Walmart stores, 2013)

'Corporate Social Responsibility'(CSR)

CSR can be referred to as the voluntary activities done by the company to basically operate in an economic, social and environmentally sustainable manner so as to create a good reputation in the society. It is not usually about providing an immediate financial benefit to the company, rather it promotes positive social and   environmental change.
Moreover, Corporate Social Responsibility can also be taken as the corporate initiative to assess and take responsibility for the company's effects on the environment and impact on social welfare.

"Corporate social responsibility is a hard-edged business decision. Not because it is a nice thing to do or because people are forcing us to do it... because it is good for our business" -(Niall Fitzerald, Former CEO, Unilever,2013)

Should organisations 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.

>In my opinion, I believe both are equally important because profitability and responsibility are the two main important factors that matter a lot in the organisation. The most important thing is once an organisation is able to maintain it's responsibility towards everyone they certainly can achieve success financially as well, in turn making both the shareholders and stakeholders happy. 

Furthermore, i think every organisation should keenly focus on their customer satisfaction and also be responsible to what they are doing. likewise, taking a step forward and practicing CSR would be a good idea  in my view, as ultimately every business's main goal is to achieve profit. CSR helps every business to contribute to employee commitment as well as customer loyalty.

 Write about your experience with today's case study. What answers did you give to the questions? What did you think of the CEO?
>The case study of Pepsico was an interesting one. It gave us an overview and a clear vision on what pepsico is all about. The strategies, CSR, organisations purpose and many other important factors of Pepsico was focused on the case study. Overall the case study basically taught me several new and interesting overview of the strategies that can be used in companies to gain success.

   

What are Pepsico's objectives and why does the firm exists?

>The objectives of Pepsico are:

•  Performance with purpose
• Promoting sustainable growth by investing in a healthier life style for people and the planet. 
• International expansion
• Maintain efficient distribution system
• Close relationship with the distribution allies
• Product reformation 
• Diversification e.t.c

I believe the firm is existing because it has been making up and practicing several good strategies and focusing on the nutrition factor of their products to the most. Likely, it's catagory of 'good for you products' and 'bad for you products' are really promoting in Pepsico's success.

What are the possible strengths and benefits of the strategy?

> The possible strengths and benefits of the Pepsico's strategy are:

• increasing sales and customer satisfaction through high nutritious products
• improved financial performance
• good reputation and enhanced brand image
• comply with regulatory environment
• Largest portfolio food items as well as beverages 

What are possible weaknesses and disadvantages of the strategy?

> The possible weaknesses and disadvantages of the strategy are:

• Participating in CSR is a great expense for the company.
• Shareholder may have a negative expectation while considering CSR
• loss in focus
• Pepsico's stagnant share price has created dissatisfaction among investors.

Do you think the organisation has the right balance between responsibility and performance?

> Yes, I certainly think that the organisation has the right balance between responsibility and performance because the firm is generating profits by being responsible on what they are doing. However, at some point it also has faced several financial problems in the past.

REFERENCES:

Baker, M. (2004, June 8). Retrieved may 1, 2013, from mallenbaker  http://www.mallenbaker.net/csr/definition.php

World Academy. (n.d.). Retrieved May 3, 2013, from worldacademyonline.com: http://worldacademyonline.com/article/34/475/defining_the_organization___s_purpose.html