Finding the Value in Social Business

Finding the Value in Social Business Description

This is an MIT Sloan Management Review article. A recent survey by Deloitte and MIT Sloan Management Review suggests that companies are starting to derive real value from social business (defined to include activities that use social media, social software and technology-based social networks to enable connections between people, information and assets). However, that business value is concentrated most strongly in companies that have reached a certain level of sophistication in relation to their social business initiatives.MIT Sloan Management Review and Deloitte have been exploring the impact of social media on business over the past three years through surveys, data analysis and interviews with executives and academics. The latest survey explored whether companies are deriving value from their social business initiatives. Sixty-two percent of managers surveyed report that their organization's social business initiatives are at least somewhat successful at meeting their stated business objectives, while 63% of respondents report that social business has positively affected business outcomes at their company. Fifty-nine percent of respondents in multinational companies report that social business helps them operate across geographies. Perhaps equally compelling is the extent to which individual employees indicate the value of social business to their daily work. Fifty-seven percent of respondents say that it is at least somewhat important for them to work for companies with mature social business practices, while 46% of respondents say that social business is at least somewhat important for decision making in their day-to-day role. A key factor in whether companies are able to derive positive benefits from social business is social business maturity. The researchers asked survey respondents to envision a company with ideal social business practices and then to assess how close their company was to that ideal. The higher a respondent rates his or her company, the more likely they are to report that the company is deriving business value from its social business initiatives. For example, 92% of respondents from the companies with the most mature social business practices say that social business helps them operate across geographies. The data shows that, based on maturity, different groups share distinctive social business practices. Thus, while incremental improvements to existing social business practices are likely to yield positive business outcomes, the kinds of benefits associated with the highest levels of social business maturity require more substantial change.

Case Description Finding the Value in Social Business

Strategic Managment Tools Used in Case Study Analysis of Finding the Value in Social Business

STEP 1. Problem Identification in Finding the Value in Social Business case study

STEP 2. External Environment Analysis - PESTEL / PEST / STEP Analysis of Finding the Value in Social Business case study

STEP 3. Industry Specific / Porter Five Forces Analysis of Finding the Value in Social Business case study

STEP 4. Evaluating Alternatives / SWOT Analysis of Finding the Value in Social Business case study

STEP 5. Porter Value Chain Analysis / VRIO / VRIN Analysis Finding the Value in Social Business case study

STEP 6. Recommendations Finding the Value in Social Business case study

STEP 7. Basis of Recommendations for Finding the Value in Social Business case study

Case Analysis of Finding the Value in Social Business

Finding the Value in Social Business is a Harvard Business (HBR) Case Study on Strategy & Execution , Texas Business School provides HBR case study assignment help for just $9. Texas Business School(TBS) case study solution is based on HBR Case Study Method framework, TBS expertise & global insights. Finding the Value in Social Business is designed and drafted in a manner to allow the HBR case study reader to analyze a real-world problem by putting reader into the position of the decision maker. Finding the Value in Social Business case study will help professionals, MBA, EMBA, and leaders to develop a broad and clear understanding of casecategory challenges. Finding the Value in Social Business will also provide insight into areas such as – wordlist , strategy, leadership, sales and marketing, and negotiations.

Case Study Solutions Background Work

Finding the Value in Social Business case study solution is focused on solving the strategic and operational challenges the protagonist of the case is facing. The challenges involve – evaluation of strategic options, key role of Strategy & Execution, leadership qualities of the protagonist, and dynamics of the external environment. The challenge in front of the protagonist, of Finding the Value in Social Business, is to not only build a competitive position of the organization but also to sustain it over a period of time.

Strategic Management Tools Used in Case Study Solution

The Finding the Value in Social Business case study solution requires the MBA, EMBA, executive, professional to have a deep understanding of various strategic management tools such as SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

Texas Business School Approach to Strategy & Execution Solutions

In the Texas Business School, Finding the Value in Social Business case study solution – following strategic tools are used - SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

We have additionally used the concept of supply chain management and leadership framework to build a comprehensive case study solution for the case – Finding the Value in Social Business

Step 1 – Problem Identification of Finding the Value in Social Business - Harvard Business School Case Study

The first step to solve HBR Finding the Value in Social Business case study solution is to identify the problem present in the case. The problem statement of the case is provided in the beginning of the case where the protagonist is contemplating various options in the face of numerous challenges that Social Respondents is facing right now. Even though the problem statement is essentially – “Strategy & Execution” challenge but it has impacted by others factors such as communication in the organization, uncertainty in the external environment, leadership in Social Respondents, style of leadership and organization structure, marketing and sales, organizational behavior, strategy, internal politics, stakeholders priorities and more.

Step 2 – External Environment Analysis

Texas Business School approach of case study analysis – Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the Finding the Value in Social Business.

The external environment analysis of Finding the Value in Social Business will ensure that we are keeping a tab on the macro-environment factors that are directly and indirectly impacting the business of the firm.

What is PESTEL Analysis? Briefly Explained

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Finding the Value in Social Business case study. PESTEL analysis of " Finding the Value in Social Business" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

How to do PESTEL / PEST / STEP Analysis? What are the components of PESTEL Analysis?

As mentioned above PESTEL Analysis has six elements – political, economic, social, technological, environmental, and legal. All the six elements are explained in context with Finding the Value in Social Business macro-environment and how it impacts the businesses of the firm.

How to do PESTEL Analysis for Finding the Value in Social Business

To do comprehensive PESTEL analysis of case study – Finding the Value in Social Business , we have researched numerous components under the six factors of PESTEL analysis.

Political Factors that Impact Finding the Value in Social Business

Political factors impact seven key decision making areas – economic environment, socio-cultural environment, rate of innovation & investment in research & development, environmental laws, legal requirements, and acceptance of new technologies.

Policy Making Impact on Finding the Value in Social Business

Government policies have significant impact on the business environment of any country. The firm in “ Finding the Value in Social Business ” needs to navigate these policy decisions to create either an edge for itself or reduce the negative impact of the policy as far as possible.

Data safety laws – The countries in which Social Respondents is operating, firms are required to store customer data within the premises of the country. Social Respondents needs to restructure its IT policies to accommodate these changes. In the EU countries, firms are required to make special provision for privacy issues and other laws.

Competition Regulations – Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. Finding the Value in Social Business has numerous instances where the competition regulations aspects can be scrutinized.

Import restrictions on products – Before entering the new market, Social Respondents in case study Finding the Value in Social Business" should look into the import restrictions that may be present in the prospective market.

Export restrictions on products – Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. Social Respondents in case study “ Finding the Value in Social Business ” should look into these export restrictions policies.

Foreign Direct Investment Policies – Government policies favors local companies over international policies, Social Respondents in case study “ Finding the Value in Social Business ” should understand in minute details regarding the Foreign Direct Investment policies of the prospective market.

Taxation & Regulation Impact on Finding the Value in Social Business

Corporate Taxes – The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. Corporate taxation can be divided into two categories – taxes on profits and taxes on operations. Taxes on profits number is important for companies that already have a sustainable business model, while taxes on operations is far more significant for companies that are looking to set up new plants or operations.

Tariffs – Chekout how much tariffs the firm needs to pay in the “ Finding the Value in Social Business ” case study. The level of tariffs will determine the viability of the business model that the firm is contemplating. If the tariffs are high then it will be extremely difficult to compete with the local competitors. But if the tariffs are between 5-10% then Social Respondents can compete against other competitors.

Government Scheme & Subsidies Impact on Finding the Value in Social Business

Research and Development Subsidies and Policies – Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. Managers at Finding the Value in Social Business case study have to assess whether their business can benefit from such government assistance and subsidies.

Consumer protection – Different countries have different consumer protection laws. Managers need to clarify not only the consumer protection laws in advance but also legal implications if the firm fails to meet any of them.

Political System & Stability, and its Impact on Finding the Value in Social Business

Political System and Its Implications – Different political systems have different approach to free market and entrepreneurship. Managers need to assess these factors even before entering the market.

Freedom of Press is critical for fair trade and transparency. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption.

Corruption level – Social Respondents needs to assess the level of corruptions both at the official level and at the market level, even before entering a new market. To tackle the menace of corruption – a firm should have a clear SOP that provides managers at each level what to do when they encounter instances of either systematic corruption or bureaucrats looking to take bribes from the firm.

Independence of judiciary – It is critical for fair business practices. If a country doesn’t have independent judiciary then there is no point entry into such a country for business.

Government attitude towards trade unions – Different political systems and government have different attitude towards trade unions and collective bargaining. The firm needs to assess – its comfort dealing with the unions and regulations regarding unions in a given market or industry. If both are on the same page then it makes sense to enter, otherwise it doesn’t.

Economic Factors that Impact Finding the Value in Social Business

Social Factors that Impact Finding the Value in Social Business

Technological Factors that Impact Finding the Value in Social Business

Environmental Factors that Impact Finding the Value in Social Business

Legal Factors that Impact Finding the Value in Social Business

Step 3 – Industry Specific Analysis

What is Porter Five Forces Analysis

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Finding the Value in Social Business case study. PESTEL analysis of " Finding the Value in Social Business" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

Step 4 – SWOT Analysis / Internal Environment Analysis

Step 5 – Porter Value Chain / VRIO / VRIN Analysis

Step 6 – Evaluating Alternatives & Recommendations

Step 7 – Basis for Recommendations

References :: Finding the Value in Social Business case study solution