Competitive Advantage and CSR
Topical coverage in any two documents is often concerned with the responsibilities of companies to the social welfare of a community. Companies have the responsibility to ensure the community around them are taking care or rather, they benefit from the operations of the company. The fact companies operate within a community is because of their willingness to give back to society. This ensures they have good positioning in the market and win the trust of the community around as such, giving them an ideal environment to undertake their operations. The company as well can engage the community through offering them jobs, releasing effluents that are treated into the environment for manufacturing companies and aid in contribution to various projects around the community. This makes interaction within the community mutual and everyone also gets to see the value of the contribution hey make in the community by giving them upper hand over other competitors in the market.
Within the market, competition is quite stiff and a company must devise ways through which it can come up with strategy that ensures it stays relevant in the market. This leads to winning loyalty from customers since the community around believes the company has their best interests at heart and that their only concern is not to make bumper profits. According to the article, through its philanthropic activity, the company can bring improvement of skills of the society members. The fact a company is committed on long term basis to communities around them means the companies will work hand in hand with local members offering a grant so as to effectively use funds for its effective management of operations within the firm.
This makes it easy to transfer knowledge and eases the manner in which companies operate in numerous geographical regions as such, influencing the improvement of local organizations that are run by local communities. In the long run, the local community gets the chance to get value and further, enjoy value from other markets in which they operate. This helps improve competitive advantage to a great extent thus making them capable of staying relevant in the market thanks to their unique operations. An ideal example is role played by Dream Works which imparts film production skills to students at Los Angeles and ends up getting job within entertainment industry. Additionally, giving back directly to surrounding community aids improve relationship between the community and company. In the end, the ability of the company to dominate increases as such, the company is able to outwit any competitors in the market.
Consumers in the market place as well provide the company with ideas on the kind of demand available within the market. This aids by making the company more innovative and it is able to work towards attaining the demands from customers as such, giving them competitive advantage over their competitors. This also aids improve demand conditions in the market just as Cisco planned in getting a network of administrators who are well trained to deliver quality products.
On context of rivalry and strategy, presence of high competition leads to high innovation levels among companies so as to remain relevant in the market. This helps improve products quality found in the market by clients as such, helping a company in its local area win loyalty from customers. A company’s need for factor conditions is also influenced by quality staff and through its philanthropic activities, a company is able to train local members who come in handy to fill up the positions needed. The supporting and related industries enhance the productivity of a company as such, lead to enhancement of the quality of different supporting industries. Philanthropy as such aids in structure development that helps make industries grow stronger with the view of existing competition.
Act of signaling funders also helps in recommendation of local companies to other donors and helps attract additional capital within a firm. This helps boost the activities of the company in the local community and it also improves mitigation of free rider problem in the market. The improvement of grant recipient’s performance leads to improved value for the society as such, increasing impact cost for all the funds that are spend within that society. Knowledge advancement and practice in a society through techniques of innovation used to address social issues being faced by society at large, for example, the IBM project that was used and launched to develop web designs for local community.
The act of business activities integration with local community as well is a huge boost once the community is able to see benefits got from the interaction of the company and further, it leads to good mutual relationship with the firm. The company, on the other hand must have a healthy society that can support them in their quest for better performance in the market through provision of raw materials and efficient usage of land and water from the surrounding community. When there is no proper interaction with surrounding community, it is difficult for the company to make great progress in the market. The community ends up frustrated with its efforts in the event any form of misunderstanding for example, the price at which local communities supply the raw materials. The mutual benefit therefore must be observed keenly as it is the basis for ensuring there is good corporate social responsibility. The management therefore must seek to look into the ways through which both the community and businesses can benefit.
In the case of identification of intersection points, mutual interaction between the cost and company involve at of operating normal courses within business through its operation of business as such considered inside out linkage of business. The products chain produced by a company must meet the needs of consumers within the firm accordingly. By making an investment in value chain innovations, the value chain and competitiveness innovations in a firm leads to improvement of social value through business activities influencing chances of looking outside in within the society.
Additionally, there needs to be strong standards of regulation safeguarding the relationship that must be implemented so as to make sure every party benefits from the arrangement the company has with the community and to avoid exploitation. The standards make sure there is a healthy relationship between the surrounding community and the firms, giving them upper hand in making sure expansion in demand for business services as well as more needs are addressed in the course of the process.
To conclude, companies are supposed to seek building strong relationship with surrounding communities and seek to empower them accordingly in order to take advantage of resources they might have in their surroundings. Additionally, there needs to be standards of regulation safeguarding the community from companies that might end up exploiting resources in their surrounding yet, end up without giving back to the surrounding community in equal measure. A good relationship between these parties will go a long way to ensure there is economic empowerment of both and as such, boost profitability of the business. a good corporate social responsibility will go a long way to give a company a great competitive advantage over other firms in the market since by the fact the company is able to give back to the community, it portrays a willingness to assist the society develop and empower members through training programs that help them acquire better skills for different kinds of jobs they undertake. A community is able to immediately see them as a partner for success and other communities might seek to reach out to them for the same assistance as such, giving them an upper hand other their competitors within the market since they attract more clients in view that they always give back to the society.