The concept of shared value is oriented chiefly at strategic planning in the corporate domain. Its three-level structure operates the concepts of value chains, markets, products, and customers, which suggests a direct application to the business sector. Thus, it is tempting to limit its use to the issues of profitability, societal progress, and an overall well-being of the stakeholders involved in the business processes. However, the concept is broad enough to be utilized outside the for-profit companies and can be equally successfully applied by governments, communities, and, with certain adjustments, individuals. The following paper provides an overview of the two ways in which a shared value business concept affects me on a daily basis.
We will write a custom Essay on The Shared Value Concept specifically for you
301 certified writers online
The first area is the observed consequences of successfully implemented shared value creation. In the majority of cases, the shared value created in the process is oriented primarily at customers and has an overall positive effect on all parties. Therefore, it would be reasonable to conclude that at least some modern business practices are either in the process of developing positive changes or have already included them in their business model.
For an individual consumer, these changes are usually manifested in decreased product costs due to optimized resource use, coverage of previously unaddressed needs, and, in the long run, increased growth and prosperity of a community. A good example of such effect is the delivery and packaging optimization undertaken by several major retail chains. In many cases, the savings facilitated by such initiatives allow the companies to lower the prices of their products in order to retain a competitive advantage. From the customer’s point of view, the effect of such approach is twofold. On the one hand, the described process results in more attractive prices of the goods and otherwise caters to the customer’s interests.
On the other hand, some of the strategies provide greater alignment with the customers’ views, values, and beliefs. A good example of such alignment is a product packaging of higher volume that reduces environmental impact while at the same time decreases the cost of an item. Admittedly, the described effects are usually negligible and only observable over a long period of time. In addition, it should be pointed out that from the customer perspective, some of the described initiatives are indistinguishable from corporate social responsibility programs without in-depth inquiry. Nevertheless, it is possible to refer to them as affecting me on a daily basis.
The second area involves the applicability of shared value principles to non-business aspects of life. The concept in question prioritizes long-term strategic approach and emphasizes holistic nature of the relationship between the stakeholders. Most importantly, it provides feasible means of integrating the societal needs into the process of performance enhancement. In this regard, the generalized nature of the concept allows implementing it in everyday life to a certain extent.
In other words, it is possible to perceive the concept as an overarching direction that is based on the mutually beneficial effect of actions for all involved stakeholders. Admittedly, this aspect is neither measureable nor well-defined. Nevertheless, I consider it a positive influence on my everyday life.
The feasibility of the shared value business concept has not been established conclusively, mostly due to its broad scope. However, it is evident that in its current form it affects individuals on a daily basis. On the one hand, it offers tangible benefits in the form of reduced costs and improved coverage of needs. On the other hand, it provides a novel approach to handling the scenarios with conflicting interests. Thus, it is possible to perceive it as a positive force both in business and societal domains.