WEEK: 10

1) In your own words and using referenced quotes describe what is meant in strategy by 'Organizational Purpose‘ and describe what is meant by 'Corporate Social Responsibility‘.

Organizational Purpose:

The fundamental reason for the organizational existence is defined by the organizational purpose. Every other decisions is guided by the organizational purpose.it helps to use the time, attention and resources in order to serve the niched market better than anyone else.It has no intention of earning immediate financial benefits but instead it promotes positive social and environmental change.

Corporate Social Responsibility
Corporate Social Responsibility is a business outlook that shows responsibilities to suppliers, stakeholders, customers and along with employees. Moreover looks at the locals and international communities as well in which it operates. It is also refereed to as "corporate citizenship"..It has no intention of earning immediate financial benefits but instead it promotes positive social and environmental change.

2.Should organizations 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, companies should focus on CSR, since its main aim is to earn profit. To do so company must take responsibilities toward its customers, employees and suppliers.if they are able to fulfill their needs, then the work it self will be efficient and effective and will be able to achieve the goal that is required and earn profit.There are lots of evidence that proves that a good social responsibility has resulted in increase of profits.

For example: If a company is able to be socially responsible  to the customer along with the employees will be happy and eventually the satisfaction of all the parties will lead to maximum profit.

3) 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 was very interesting and beneficial. It talked about the Pepsico's strategic objectives and organizational purpose along with the social responsibilities.

 The CEO had an impressive strategy which had improved financial performance with enhanced bran image and reputation. IT even had increased sales and customer loyalty.They have easier access to capital and ability to attract the customers and retain customers as well.

PEPSICO CASE STUDY:

1. What are Pepsico's Strategic objectives? Why does this firm exist?

• Pepsi is also pinning its hope on the launch across America on March 26th of Pepsi Next, a new soda sweetened with both high-fructose syrup and artificial sweeteners which has 60% less sugar than classic Pepsi.

• Angelique Krembs of Pepsi says the new drink is aimed at consumers who are keen to imbibe less sugar with their cola but dislike the taste of diet drinks. She splits this mostly male group in two: "dualists", who switch between regular and diet (and sometimes mix the two), and "resistants", who never touch either.

This firm exist because it provides a knowledge about what it desired and what is Possible.Since it focuses most on the customers satisfaction their product has been love by the customer and due to which this firm has been existing till date.

2. What are the possible strengths and benefits of the strategy.

The strengths and benefits of this kind of strategies are;

• improved financial performance
• enhanced brand image and reputation
• increased sales and customer loyalty
• increased ability to attract and retain customers
• easier access to capital
• comply with regulatory environment

The weakness and disadvantage of this strategy:

• it is an expense to the company, the main reasons any company would object to participating in CSR  is the associated costs.
• shareholder expectation: when considering CSR is the possible negative perception of shareholders.
• loss of focus.

Reference:

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

 Retrieved may 1, 2013, from worldacademyonline: http://worldacademyonline.com/article/34/475/defining_the_organization___s_purpose.html