Case study Essay Example | Topics and Well Written Essays - 1250 words - 1

Case study - Essay Example The network initiative implemented in Danone forced some of the local managers to behave like dictators. It was difficult for the employees to share the knowledge over the network without seeking the consent of the managers. Mougin deliberately allowed the local managers to take more power in order to have products that differed from market to market, to stay close to consumers. He calculated that decentralization would help Canone to compete more effectively in the market. In short, Mougin found no harm in giving more autonomy to the local managers. However the frontline managers were confused by the above strategy. â€Å"They lacked clear directions from headquarters and often didn’t know whom to turn to for advice. And, there was little horizontal communication among the large divisions† (Edmondson et al, 2008, p.6). Front line managers became less powerful or jobless because of the decentralization strategies of Mougin. On the other hand the local managers acquired more power in the absence of any centralized control. Danone has no centralized database for recoding or saving the knowledge of its employees. The network initiative helped the company only in exchanging the ideas of the workers; however the company has not taken any serious effort to save that knowledge for the future references. Moreover, the Company failed miserably in segregating between the knowledge and information. Some of the information exchanged through the network was mere information whereas some others were knowledge. Knowledge needed to be protected for future references even though some of the information can be neglected. In short, Danone has to enforce more centralized control both in their organizational functioning and in the knowledge management. Local managers should work under the frontline managers and they should perform everything after taking the permission from the front line mangers. If the company likes to continue with the strategy of giving autonomy t o their local mangers, then it is better for the company to use the frontline mangers in other areas of its functioning. Knowledge exchanged through the network should be saved for future reference. My assessment of the Networking Attitude initiative The Networking Attitude initiative was a way to share knowledge across groups in the geographically dispersed Danone Company (Edmondson et al, 2008, p.1). The networking attitude initiative was a well thought out strategy in my opinion. Danone has business units in more than 120 countries and it is necessary for the company to exchange the newly developed knowledge across its business networks. Business concepts, philosophies and climates are changing rapidly because of the knowledge explosion and it is essential for Danone to update the knowledge of its diverse workforce periodically. Danone has allowed its employees to share their knowledge between them rather than waiting for the instructions of the superiors. In other words, sharing of the knowledge between the employees helped Danone workforce to function more efficiently and that also at the right time. The consequences of the time delay in obtaining the instructions from the superiors in a rapidly paced business environment were thus avoided in Danone Company. â€Å"From 2004 to 2007, Danone employees shared almost 640 good practices with colleagues† (Edmondson et al,

Can a company strive for large profits while truly caring to the well Literature review

Can a company strive for large profits while truly caring to the well being of the general population - Literature review Example Responsible business enterprises strive to improve business performance, make profits, and contribute to the economic progress in the community. However, several business leaders are only interested in community activities that increase their profits. Social responsibilities of businesses are not restricted to profitable ventures. The organization can participate in activities that improve the conditions of the general population without direct or indirect profits. The big question is whether a business can remain profitable while caring for the wellbeing of the general population. Hill, R.P., Ainscough, T., Shank, T., and Manullang, D. 2007. Corporate social responsibility and socially responsible investing: A global perspective. Journal of Business Ethics, 70, 165-174. The current economies face issues of responsible business conduct such as product quality, health and safety, environmental protection, and compliance with laws and industry standards. These responsibilities originat e from the desire to make profits, which is determined by the relationship between the business and the society. Businesses rely on customer satisfaction to improve their profits margins. Customer satisfaction is caused by the attractive business activities such as services offered, environmental conservation, and product quality. These activities portray responsibility on the side of the business. The wellbeing of the general population is determined by responsible activities by the business. The standards of responsible business conduct go beyond the traditional expectations of maintaining morality. Business enterprises are members of the community, and they must enrich the economic and social conditions of the community. Improving the social and economic conditions of the community improves the wellbeing of the population (Porter and Kramer, 2006). Pursuing profits and economic superiority does not license ignorance or break of community norms, values, integrity, and respect. The business must engage in activities that uphold the morals and values of the society. Some activities such as advertisements may compromise the norms and beliefs of the society. Communities such the Chinese are conservative and are affected advertisements that involve body exposure and romance. Violent and immoral advertisements destroy the moral values of the community. Violence and immorality affect the wellbeing of the community and businesses participating in such activities may experience disapproval by the community. The general population provides market for products and businesses that overlook community norms and values are likely to make losses. Global business organizations have to uphold and respect different societal values and norms depending on the traditions of the community they operate. This determines the amount of profits acquired by business units across the globe (Gege, 2004). The objective of social responsibility of businesses is to generate the capital requi red for operations. Success for any business is measured in terms of profits and losses incurred. Businesses must cover the cost of capital, cover risks and uncertainties, and the needs of workers and pensioners. Businesses may be forced to compromise the quality of their products in order to maximize their revenues. This involves altering the material quality of products