Mbs661 Global Business In The Assessment Answers

According to Porter and Kramer (2011), firms need to create shared value. What does creating shared value mean? How does this approach differ from prior approach to corporate social responsibility? How should a company create shared value in an international business context?

Answer:

The aspect is shared value is a broad concept that can be defined as policies and various practices in order to widen the competitive advantage of the business organizations. This process is advancing the social and economic conditions for the betterment of the business organizations. On a more precious note, creating shared values refers to the strategies of the business organizations for creating business opportunities in order to solve the social problems. As per this concept, the business organizations must address economical as well as social problems in order to create values and principles. Thus, it can be said that creating shared value is an important aspect in today’s business (Kramer and Porter, 2011).

There are major differences between corporate social responsibilities and creating shared values. Corporate social responsibility is considered as a cost center and it is not considered as profit center. However, creating shared value is considered as the opportunity of creating new business opportunities. Creating shared values help in the improvement of the profitability of the organizations and in this way, it strengthens the competitive position of the companies. Thus, the major difference is that corporate social responsibility is responsibility while creating shared value is the process of value creation (Crane et al., 2014).

In case of international business, three strategies can be used to create value in the international businesses. The first way is to reconceived the products and markets. With the help of this strategy, international business organizations can expand to new markets. The second way is the redefinition of productivity in the value chain process. In the context of international business, redefining value chain helps the business organizations significantly. The third way is to develop other business industries in the same location. The development of new businesses will provide the opportunity to the organization to increase their business revenues (Kramer and Porter, 2011).

References

Crane, A., Palazzo, G., Spence, L.J. and Matten, D., 2014. Contesting the value of “creating shared value”. California management review, 56(2), pp.130-153.

Kramer, M.R. and Porter, M., 2011. Creating shared value. Harvard business review, 89(1/2), pp.62-77.