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PURPOSE Purpose and Food Value Chain
PURPOSE • Purpose – is to ensure that the company’s work always delivers positive social outcomes, not just commercial and financial success. • The company must always focus on social purposeled approach, meaning to establish and encourage companies to act as a force for good in society.
PURPOSE of the Company • A purpose gives answers to these key questions: o Why does our company exist? o Who are our customers and what values and qualities they have in common? o What would the customers miss if we were not around? o What sets us apart? Source: AEC Business
PURPOSE of the Company The following characteristics are essential when defining company’s purpose: • A good purpose is promoting and inspiring. It makes a firm’s endeavors noble or dignified. It is inspiring to all stakeholders. It communicates on an emotional level, which is essential to most individuals. People crave meaning in life and work. • A good purpose says what you do (and what you don’t); it puts a stake in the ground. • A good purpose sets your company apart and makes you distinct. The difference may arise from many sources: innovation, business models, deep insights about specific client needs, technologies, management, and so on. Try to imagine how your customers see or will see the difference. Source: AEC Business
PURPOSE of the Company • Examples : 1. Be a credible and reputable platform from which to accomplish personal, professional, societal and environmental goals. • Investing company: 1. The main purpose of a company is to take money from investors (their creditors and shareholders) and generate profits on their investments. 2. For the entrepreneur, it may be a sense of identity or personal fulfillment. Source: Strategic Management Resources: “Today’s Vision. Tomorrow’s Success”
Purpose of Value Chain • The purpose of the value chain (Porter, 1985) is to better manage linkages with buyers and suppliers in the value creation • The purpose to perform value chain analysis by buyers and suppliers, firms must cooperate, share costs and performance information (Shank and Govindarajan, 1992; 1993) • Companies adopt specific purposes, such as value creation, product differentiation, adopt respectful and proactive attitude towards stakeholders and provide success and creation of value (Porter & Kramer, 2006; Wheeler, Colbert & Freemen, 2003)
Purpose and Value Chain • The Purpose of Barilla company : «Good for You. Good for the Planet» • «Good for You» - regards the activities to improve people’s wellbeing, promoting choices of consumption in line with the food pyramid • «Good for the Planet» - regards the aims to reduce the impact on the planet, thus reducing environmental footprint • «Good for the Communities» - regards the activities enabling inclusion of all members of the community, promoting food access programs, educational paths and leveraging diversities