Profits with Purpose: An Economic Justification of Conscious Capitalism

For years, mainstream economic theory has assumed that the only legitimate purpose of business is to maximize profits. In Conscious Capitalism: Liberating the Heroic Spirit of Business, authors John Mackey and Raj Sisodia reject this assumption, arguing that many firms have a genuinely motivated higher purpose. In addition to having a purpose beyond profit maximization, the conscious business model proposed by the authors calls for maximizing value for all stakeholders (employees, customers, suppliers, society, the environment, and investors), instead of for investors exclusively. However, the authors cite a number of examples of practices of conscious businesses that are justified in the economics literature for the exclusive goal of profit maximization, and indexes of firms with qualities similar to those of conscious firms have been shown to outperform the broader market, sometimes significantly. Despite the business model’s rejection of profit maximization as the sole function of businesses, do the goals of a conscious business suggest a strategy that paradoxically leads to profit maximization? This paper explores the potential for the conscious capitalism business model to be justified from a profit maximization standpoint through a broad exploration of the economics literature on various common practices of conscious businesses. Additionally, a case study examines two discount retailers: Walmart has a reputation for having troubled relationships with its stakeholders, while Costco is frequently applauded for its generosity to its workers and the loyalty it engenders in its customers. Based on theoretical and empirical evidence from a broad range of fields including labor economics, management economics, sociology, and economic psychology, and on Costco’s advantages in areas including employee turnover, customer loyalty, reputation, and community relations, it is reasonable to conclude that adherence to a conscious business model is a mechanism for profit maximization

Tirdzniecības uzņēmumu mijiedarbība preču kategoriju vadības procesā

Elektroniskā versija nesatur pielikumusPromocijas darbā atspoguļoti autora veikto pētījumu rezultāti. Tika veikta preču kategoriju vadības teorijas pamatnosacījumu izpēte, ko papildināja Latvijas tirdzniecības nozares darbības rezultātu analīze, noslēdzot darbu ar vairumtirdzniecības un mazumtirdzniecības uzņēmumu vadītāju aptauju. Pētījuma rezultātā tiek secināts, ka vairumtirdzniecības uzņēmumu vadība var gūt ieguvumu no sadarbības ar mazumtirdzniecības uzņēmumu vadītājiem, īstenojot preču kategoriju vadības principus. Iegūtie dati apstiprināja izvirzīto hipotēzi, ka tirdzniecības uzņēmumu funkcionēšanas procesā efektīva kategoriju vadības principu izmantošana ir iespējama tikai tādā gadījumā, ja uzņēmuma vadītāji mērķtiecīgi īsteno kvalitātes vadības pieeju. Savstarpēja kvalitātes vadības un preču kategoriju vadības īstenošana vadības procesu ietvaros nodrošina tirdzniecības uzņēmuma komercdarbības radītāju uzlabošanas.The promotion thesis presents the results of doctoral research hold by the author. The basic conditions of goods category management were analysed, further were complimented by Latvian trade industry analysis and finalized with survey arranged between the managers of wholesale and retail trade enterprises. The results of the research approved that the wholesale enterprise management is able to favour from cooperation with retailer’s enterprise management implementing goods category management principles. The data analyses approved the settled hypothesis about the effective use of category management principles in trade enterprise operations process only in case when enterprise is following the quality management approach. The combination of quality management and goods category management principles implemented in management processes of trade enterprise leads to performance enhancement

Aligning product variety with supply chain and business strategy

Purpose The purpose of this paper is to demonstrate the strategic alignment between product variety and supply chain (SC) focus through cost leadership or differentiation to improve business performance. Design/methodology/approach The research investigated product variety-related capabilities and strategies in SCs including level of variety, SC agility, SC cost efficiency, cost leadership, differentiation and business performance, and aimed to justify the theory by testing structural equation modelling using survey data from the UK and South Korea. Findings Differentiation links high product variety and agile SC while cost leadership is aligned with low product variety and SC efficiency. High product variety negatively impacts on cost leadership strategy. Also, product variety should be mediated by cost leadership or differentiation strategy to improve business performance. Companies in South Korea display higher SC agility, cost leadership and cost efficiency than companies in the UK, while the UK companies exhibit a higher level of product variety and differentiation than those in South Korea. Research limitations/implications The findings contribute to theoretical development of variety issues at the alignment of business strategy and SC management according to the level of product variety. Originality/value The findings can help international companies set up specific variety-related strategies to achieve global competitiveness

A Literature Overview on Strategic Information Systems Planning

Strategic Information Systems Planning (SISP) has been among the highest ranked issues on management agendas for many years. As such, SISP should be a major concern for researchers as well. However, SISP does not play that important of a role in the academic discussion, at least in Germany. Leading German textbooks on Information Management devote only small sections to strategy themes. Moreover, the recommendations given for conducting SISP in these textbooks are mainly normative and hardly take international research findings into account. Taking this as a motivation, we conducted a comprehensive literature review of German and Anglo-American information systems journals. Our objective was to understand more fully what we know about SISP through international research. On the flip side, our research aims at identifying fields that are in urgent need for closer academic investigation so that individual speculations and normative recommendations might still substitute for valid research insights. Overall, we found a considerable amount of research conducted in the field of SISP that we organised in five broad thematic fields: Strategic IT impact, approaches to SISP, information systems strategy, and strategic alignment. We give a short overview of research conducted so far and seminal publications available in the research fields. Moreover, based on a sub-sample of our literature base, we compute statistics which indicate the intensity of the academic discussion in the different thematic fields over time. Our statistics show that most attention has been paid to the competitive use of IT. The IS strategy in contrast has only been of limited interest, though it is central to any strategic considerations in IS. Our survey also suggests that German speaking researchers have devoted relatively few efforts to SISP in comparison to their Anglo-American colleagues

Business Agility and Information Technology in Service Organizations

Service organizations have to deal with highly uncertain events, both in the internal and external environment. In the academic literature and in practice there is not much knowledge about how to deal with this uncertainty. This PhD dissertation investigates the role and impact of information technologies (IT) on business agility in service organizations. Business agility is a relatively new term defined as the capability of organizations to swiftly change businesses and business processes beyond the normal level of flexibility to effectively manage highly uncertain and unexpected, but potentially consequential internal and external events. Empirical research was carried out via surveys and interviews among managers from 35 organizations in four industries and in three governmental sectors. Four in-depth case studies were carried out within one service organization. The dissertation has six key findings: 1) In many large service organizations business agility is hampered by a lack of IT agility. 2) Organization and alignment of processes and information systems via the cycle of sensing, responding and learning along with the alignment of business and IT are important conditions for improving business agility performance of service organizations. 3) Standardization of IT capabilities and higher levels of data quality support higher levels of business agility of service organizations. 4) Two knowledge management strategies – codification and personalization -- are identified that can be used to respond to events with different degrees of uncertainty. A codification knowledge management strategy supports the response to events with low levels of uncertainty by exploiting explicit knowledge from organizational memory. A personalization knowledge management strategy drives the response to events with high levels of uncertainty by exploitation of tacit knowledge and social capital. 5) Social capital is an important moderating variable in the relation between IT capabilities and business agility. Social capital can mitigate the lack of IT agility that exists in many service organizations by overcoming information system boundaries and rigidities via human relationships. 6) The combination of sensing, responding and learning capabilities is required to increase all dimensions of business agility performance. Overall, this research introduces a new approach to analyze and measure business agility. This thesis takes the first steps to develop theoretical knowledge on the conditions under which IT supports higher levels of business agility and business agility performance

The Global Expansion of Transnational Retailers: A Case Study of the Localization Strategy of Costco in Taiwan

This research focuses on the global expansion of the transnational retail industry. Globalization is a phenomenon experienced by many industries in the present global economy. The global production network (GPN) framework can be used to explain and interpret the phenomenon of transnational firms' adaptation strategies. Due to market saturation in their home countries, retailers began to expand into East Asia in the 1980s. However, cultural differences and legislative limitations created barriers and restrictions for the transnational retailers making this transition. How do firms overcome these challenges? Through a case study of Costco in Taiwan, this research investigates the ways in which retailers adapt their strategies with regard to three concerns: site decisions, product mix selection, and supply network consolidation. The results shows that Costco opted for a strategy of lesser localization in all three domains. This research provides evidence to support this characterization along with examples of Costco's localization strategies via a case study and focuses on the issue of the balance between localization and standardization in the GPN framework

Equity valuation of BAKKAFROST

The main objective of this master thesis has been to determine the fundamental value of the Faroese based salmon farming company Bakkafrost as of the date 31/12/2015. A set of analytical tools based on recognized academic theories have been applied when analyzing the competitive environment, industry value drivers and historical performance. The findings of these analyses constitute the foundation for the forecasting of the company’s future performance. The intrinsic value has then been estimated by applying the discounted cash flow (DCF) methodology using the projected free cash flow to the firm (FCFF) discounted at the weighted average cost of capital (WACC). The relative valuation approach is also applied, mainly relying on forward-looking enterprise value (EV) multiples, but also presenting a set of priceand industry specific ratios both using the forward- and trailing multiples approach. My valuation results vary between the methodologies used, where my multiples approach in general yielded the lower values. For my final verdict on the firms intrinsic value I lean towards the value obtained in the DCF analysis, as I believe this best incorporates my view of the company’s future prospects and the confidence I have in my underlying analysis. To further test the assumptions I make in the DCF valuation, I conduct a set of sensitivity- and scenario analysis. The paper concludes by comparing my results to an analysis performed by the investment bank Fearnley Securities, as well as a short presentation of how the stock has performed in the wake of the valuation date.O objetivo da presente tese foi avaliar uma empresa de criação de salmão, a Bakkafrost, situada em Faroese, referente ao dia 31/12/2015. Para analisar a competitividade da indústria, os vetores-chave de criação de valor da indústria em específico e a evolução histórica dos resultados da empresa, certas ferramentas analíticas foram utilizadas com base em métodos reconhecidos. Deste modo, os resultados obtidos constituem a base de previsão da performance futura da referida empresa. O valor real da empresa foi estimado através do método DCF, usando os FCFF estimados e descontados à taxa WACC. Foi também aplicado o método da “Relative valuation” dependendo principalmente nos forward-looking EV multiples, mas também apresentando rácios do preço e da indústria em específico, ambos através do método do “forward- and trailing multiples”. Os resultados obtidos variam de acordo com a metodologia usada, e os valores mais baixos resultam da avaliação feita pela técnica dos “multiples”. Após a análise dos dados, concluo que o valor obtido pelo modelo de análise DCF é o que mais se aproxima às projeções futuras da empresa. Para testar os meus pressupostos, aquando do uso do modelo de avaliação designado por DCF, realizei alguns testes, tanto de sensibilidade como de cenário. Como conclusão, comparei os resultados a uma análise produzida pelo banco de investimentos Fearnley Securities, e, por fim, elaborei uma pequena apresentação da evolução das ações após a data da presente avaliação

International Logistics

In this study guide the essence, the basic conceptions and the role of international logistics in economic development, the international and organizational aspects of procurement logistics, international warehousing, conceptual foundations of distribution logistics and inernational transport logistics are examined. This study guide is intended for students of specialty “International Economic Relations”

Using data analysis and Information visualization techniques to support the effective analysis of large financial data sets

There have been a number of technological advances in the last ten years, which has resulted in the amount of data generated in organisations increasing by more than 200% during this period. This rapid increase in data means that if financial institutions are to derive significant value from this data, they need to identify new ways to analyse this data effectively. Due to the considerable size of the data, financial institutions also need to consider how to effectively visualise the data. Traditional tools such as relational database management systems have problems processing large amounts of data due to memory constraints, latency issues and the presence of both structured and unstructured data The aim of this research was to use data analysis and information visualisation techniques (IV) to support the effective analysis of large financial data sets. In order to visually analyse the data effectively, the underlying data model must produce results that are reliable. A large financial data set was identified, and used to demonstrate that IV techniques can be used to support the effective analysis of large financial data sets. A review of the literature on large financial data sets, visual analytics, existing data management and data visualisation tools identified the shortcomings of existing tools. This resulted in the determination of the requirements for the data management tool, and the IV tool. The data management tool identified was a data warehouse and the IV toolkit identified was Tableau. The IV techniques identified included the Overview, Dashboards and Colour Blending. The IV tool was implemented and published online and can be accessed through a web browser interface. The data warehouse and the IV tool were evaluated to determine their accuracy and effectiveness in supporting the effective analysis of the large financial data set. The experiment used to evaluate the data warehouse yielded positive results, showing that only about 4% of the records had incorrect data. The results of the user study were positive and no major usability issues were identified. The participants found the IV techniques effective for analysing the large financial data set

Barriers to entrepreneurship: assessing NMBM school leavers for business enterprise

In plight of the country‟s high unemployment, poverty, and income inequalities, there is an urgent need to address these issues by converging toward entrepreneurship. World-wide, it is acknowledged by both government and academia that entrepreneurship soothes and remedies socio-economic ills. It creates employment, wealth, alleviates poverty, increases tax base, balances income disparities and accomplishes social stability. With the high youth (18-34 year age) unemployment looming at 73 percent and a low South African total entrepreneurship rate at 8.9 percent; this study attempts to investigate the barriers that hinder school leavers from engaging in entrepreneurship. The research investigates critical entrepreneurial factors including entrepreneurial character and behaviour, entrepreneurial knowledge and skills, managerial knowledge and skills, knowledge on legal aspects of a business, sourcing of finances, and entrepreneurial background and orientation. The primary objective was met through the investigation of the secondary objectives. This was accomplished through a questionnaire survey, composed with multiple choice questions and closed questions measured on a Likert scale. The questionnaire was constructed based on the literature reviewed from various sources including books, dissertations, journals, government reports, newspapers, magazines, internet, television and radio broadcasts (interviews and news). The study discovers that learners are inhibited by various factors from engaging into business venturing. The list of barriers identified was: A discouraging entrepreneurial background (heritage) – parents had low levels of education and were not entrepreneurial, Weak entrepreneurial character and behaviour, Lack of entrepreneurial exposure and work experience, Learners lack financial skills and computer skills, Families lack savings to financially support their business start-ups, Limited knowledge on the legal aspects regulating a business, Limited knowledge on sourcing finances (angel and venture capital investors)