NOTE: Free essay sample provided on this page should be used for references or sample purposes only. The sample essay is available to anyone, so any direct quoting without mentioning the source will be considered plagiarism by schools, colleges and universities that use plagiarism detection software. To get a completely brand-new, plagiarism-free essay, please use our essay writing service.
One click instant price quote
Principles of Business - P 5 IP (1) Over the years of being in operation, the Value-Shop has gained a strong reputation of socially responsible company. In its turn, it helped creating Companys positive social image, which became organically incorporated into Value-Shops business strategy. Companys executives were able to actively practice the principle of social assertiveness, which they thought of within a context of corporate culture. In other words, socio-environmental awareness of Value-Shop corresponded to the essence of Companys commercial philosophy. The research project Corporate Social Responsibility, which can be found on the site of CSR. gov.
uk, quotes Gordon Brown, who suggests that the principle of social assertiveness in recent years has been transformed into something that has immediate practical implications: Today, corporate social responsibility goes far beyond the old philanthropy of the past donating money to good causes at the end of the financial year and is instead an all year round responsibility that companies accept for the environment around them, for the best working practices, for their engagement in their local communities and for their recognition that brand names depend not only on quality, price and uniqueness but on how, cumulatively, they interact with companies workforce, community and environment (CSR). The Value-Shop is one of few retailing operators that became fully committed to benefiting local communities in variety of different ways. We can say that such Companys social stance created preconditions that allowed executives to maintain a competitive edge, over the course of many years. Thus, it is logical to try to figure out whether Value-Shops intended expansion might affect Companys public reputation. (2) One of the most beneficial effects of social assertiveness, on the part of Value-Shop, is strengthening customers loyalty. However, if Company doubles the number of its outlets, this will be inevitably associated with Value-Shop switching to aggressive business strategy, which in its turn, is going to have negative consequences, within a context of Value-Shops public image. This is largely due to the fact that people will be drawing parallels between Value-Shop and Wall-Mart, which is known for its obsession with making immediate commercial profits, with the mean of pushing smaller retailers out of competition.
Therefore, Value-Shop should only embark on expanding the scope of its activities, after Companys economists provide executives with comprehensive analysis of possible social consequences, related to such expansion. It is very important to insure customers that the process of Companys expansion is going to provide them with new shopping opportunities, without endangering the principle of commercial competitiveness, on the level of local communities. This, of course, is easier said them done. Apparently, pushing competitors out of business is a part of conventional commercial activity.
I would recommend Companys executives to divert customers attention from this fact by associating Value-Shops expansion with possibilities to save money during shopping, on their part. One of the reasons why Value-Shop was able to stay afloat, in commercial sense of this word, is the fact that Company knew how to make the line of its products appealing to price-sensitive customers. The beginning of Value-Shops expansion will inevitably be associated with initial financial losses. In its turn, it will make it harder for the Companys executives to pursue the policy of pricing friendliness. However, the negative effects of such situation can be greatly reduced with the mean of Value-Shops gradual transformation from commercial enterprise that almost exclusively appeals to newly arrived immigrants from Third World, to a company that benefits people in variety of different ways, apart from allowing them to save money on shopping alone.
Value-Shops officials need to constantly strive to advertise Companys expansion as such that helps creating new jobs. It also would not hurt if Value-Shop continued to be associated with charitable activities, during the process of its expansion. At the same time, Companys executives should always be focused on making commercial profits, as only the solemn purpose of Value-Shops existence. It would be wrong to turn Value-Shop into institution that is only concerned with celebration of diversity, for example, as it was being done with great many commercial enterprises in this country. In fact, as practice shows, a dedication to the policy of low pricing, is not always socially beneficial. For example, Wal-Mart stores had long ago become associated with welfare recipients preferring to shop there.
In its turn, this creates situation when local communities suffer from the fact that anti-social elements are being drawn to Wal-Mart as much as they are being drawn to liqueur stores. This provides us with an insight on how to improve Value-Shops public image, during the process of its expansion, without sustaining financial loses, associated with managers attempts to remain loyal to the policy of competitive pricing. One of the reasons why I would recommend Value-Shops expansion is that it will make Company less dependent on overall economic situation in the country. As practice shows, it is much easier for the large companies to recover, after having experienced a competitive crisis. This is because the value of companies objective assets continues to increase. In other words, company simply cannot go wrong, when it decides to expand, because expansion involves acquisition of land.
Given the fact that the value of dollar is going to be continuously undermined, as time goes by, commercial institutions will strive to convert their financial assets into real estate, which would guarantee these institutions competitiveness, in the long run. Thus, it appears that the expansion for Value-Shop is not the matter of choice. Apart from variety of positive effects, associated with expansion, that were being already mentioned, this process will strengthen the reputation of Value-Shop CEOs. In its turn, it will reassure loyalty, on the part of customers, because they are going to be convinced that their choice to do shopping at Value-Shop is mutually beneficial to them and to the Company. Although, it is highly doubtful of whether customers really do care a lot about Companys well-being, as commercial institution, we can be sure that they will view Companys expansion as the sign of its commercial vitality. In their eyes, such vitality is going to be strongly associated with the fact that Value-Shop is socially responsible company, even though that it might not be the case in reality.
It is important to understand that, in order to attract customers, Value-Shops executives do not necessarily need to believe in the declared principles of Companys business philosophy, but they sure do need to appear as such. The principle of social responsibility is too vague to have any real meaning, however, it allows commercial institution maintain its innovative reputation, because in Globalized world, peoples irrational perceptions have buying power. More and more people are willing to pay for the value that only exists inside of their minds. This is the reason why Calvin Klein jeans are being sold for $ 150 a piece, even though that they are made out of the same material as Value-Shop jeans that cost 20 dollars. Therefore, the real reason why Value-Shop needs to do its utmost, in order to maintain the image of socially responsible company, is to provide customers with additional value for their money, even though that such value has illusionary properties. Thus, the expansion of Value-Shop should not be viewed as being motivated by economic considerations alone.
It will serve as the proof that Companys social awareness does pay off, which in its turn, will reassure customers that they do a right thing, while preferring to shop at Value-Shop. However, Value-Shops managers must always keep in mind that the process of expansion involves many independent variables, which might undermine Companys reputation in the eyes of customers. Therefore, it is only after the number of these variables is being brought to the acceptable minimum that the expansion should begin. Bibliography: Baker, C. Making Corporate Social Responsibility Work: Starbucks. 2006. CEO Forum Group.
Retrieved December 22, 2007 from web Corporate Social Responsibility. 2007. CSR. gov. uk. Retrieved December 22, 2007 from web Operating and Financial Review - Corporate Social Responsibility. 2006.
Annual Report. United Media Business. Retrieved December 22, 2007 from web OHara, M. Fresh Take on Responsibility.
July 18, 2007. Guardian Unlimited. Retrieved December 22, 2007 from web Abstract: This paper discusses how proposed expansion of Value-Shop might strengthen its reputation as socially responsible company. Outline: Introduction Main part
Free research essays on topics related to: practice shows, local communities, wal mart, corporate social responsibility, socially responsible
Research essay sample on Corporate Social Responsibility Wal Mart
