Answer to Question #214270 in Management for Kay

Question

A critical evaluation of shared value. Ensure that the notion of shared value is fully explained. Provide two examples from the Foschini group that indicates how shared value is being pursued by the company. Provide a brief recommendation relating to how shared value could be incorporated to a larger degree within the organisation.

Answer 1

For years, for instance, Foschini stores, which account for about 30% of our group's retail turnover, had consistently lagged our other trading divisions and the market. As a result of the global banking crisis, the company had to restructure its operations to match its funding level and find new sources of finance other than its stockholders. Should new capital not be forthcoming, the business has been reformed and will trade profitably for the entire next financial year without any new funding.

As a new conception of capitalism, "shared value" claims to be a powerful engine of economic progress and social healing. The concept has sparked a lot of attention in corporate circles, but its theoretical foundations haven't been thoroughly examined. The analysis points out that while the term "shared value" has entered the lexicon of many professions, its current conceptualization is hazy, with significant inconsistencies in how it is defined and operationalized, making it more of a catchphrase than a meaningful notion. As a result, recommendations represent and assess the idea, take a step toward disentangling it from similar concepts, and propose applicable theories and research methodologies that could help expand the knowledge frontier on shared value.