World Bank has ensured that a big part of African people are living in a safe environmental condition in creating a dam which allowed them to get the access to a stable electricity. In this way, they care about inter-generational equity; they are concerned by the health of actual and future generation. ASK has preferred to turn its strategy towards socio-economic. They have reduced their prices in order that people have the access to a social well- being as well as making profits. These companies fill the 3 pillars of sustainable development: economic, social and environmental. We can say that they act green. 2) How would you categorize each of the decisions in terms of CARS strategy (type of CARS strategy) ?
Explain As we saw in the first question, PepsiCo, World Bank and ASK are engaged in the sustainable development and have CARS strategies. They follow the drivers and find good reason to engage in CARS. First of all, PepsiCo is trying to get a competitive advantage in creating healthy rodents and making marketing about them. They want to attract and retain new customers, especially teenagers. They are engaged to the second wave of strategy; they are compliant because they follow the news norms and laws in deleting palm oil for example from their products. They get competitive advantage on the others drinks companies such as Coke, Fauna, etc… Who have more sugar in their products.
World Bank prefers to build a strong and positive corporate image and reputation by in helping poor countries. The banks image is ruined since the sub primes crisis. It’s important that World Bank invests in humanitarian actions; they take back the trust of the people again. They are also engaged to the second wave of strategy, they avoid costs in making their company an example which is avoiding bag images and reputations. It gives them a competitive advantage as well because they are different from their competitors. ASK is contributing to social welfare, they want to have a positive impact on the society in dropping their prices in order that everybody can have the access to medicines.
They have recognize their social influence and power but want to “do the eight thing”. They follow the second wage of strategy , they also want to avoid any scandals in respecting norms and laws. It gives them a competitive advantage because they are now cheaper than others competitors and have a “green conscience”. They seek their innovation to improve stakeholder loyalty as well. 3) Explain the impact (advantages and limits) of the decisions for the organization itself and for its stakeholders About the organization Best brand image Auto ten stakeholders Fight obesity because it’s a big societal problems especially in developed countries More healthy products
Fight again deforestation and protect environment against the palm oil production Cost of production are more expensive (ex: palm oil/sunflowers oil) Neglect the communication of the most famous problem About the stakeholders Product without sugar not necessary more health (aspartame cause cancers and other medical problems) Stay a Junk food product Just for a better image but not really change problems between Soda and child-obesity Propagation of their products in Africa Health access for the developing countries (Creation of hospitals, clinics, etc… ) About the organization ASK is going to reduce their short term benefits in the country concerned by the discount. Have a risk of increase the black market in the developed countries with a low social security system as USA.
In a continent where 23 billion people are infected by HIVE, decrease the price of HIVE Argus could De more tentacle Better brand image Consumers loyalty Investment in a big market Production of clean electricity in Africa Electricity access for the necessitous Take the risk to lose money by corruption, project problems, it’s a lot of money even for a bank About the stakeholders This project has a bad image because a part of the electricity production will quit Africa to the profit of European countries and a lot of people see this like a way to steal African energy. 4) To what extent and how should the development of strategic options consider the impact on society. Give your personal opinion All the actions of these companies are going to increase their profit in the future such as conquer new share of market, launch new products, etc…
These action are improving the world of today as well in limiting the disparity between developed and poor countries. Limit the pollution and make the workers think about what is next, build a world with equality and sustainable development should be the new goal of each companies nowadays. For example, the dam will change the access of electricity for billion people and this for the next century. These smalls investments have made huge benefits for everybody. In this case study we can see how easy it is for companies to make an effort and to use CARS in their business. Moreover, these efforts seems to be worth it for their profits and for the future of their company in building a stronger and a better image.
