MCE/MCE+1 – Blog Post Prompt – July 19, 2022 – Maximization vs. Shared Value
Your Name: Dhruv Vasudevan
Focal Organization: Identify the small business you will focus on in this post. Briefly describe the business and its basic/underlying business model:
The small business I will be focusing on goes by the name “Beloved Yoga”. My friends mom actually started this business in order to spread her passion and profound knowledge of yoga with people in the local community (Reston, Virginia). Her name is Maryam Ovissi and she is the founder of Beloved Yoga. Beloved Yoga strives to provide equitable yoga teachings to people of all economic backgrounds and physical capabilities. Beloved Yoga even meets the Americans with Disabilities Act making them ADA compliant. Beloved Yoga strongly believes that finances should never prevent anyone from practicing yoga and therefor provides a wide range of classes with some being free in cost.
Financial Performance/Maximization: What issues and concerns does this small business face with respect to having to pay attention to its financial performance and/or maximize its financial performance outcomes?
Since Beloved Yoga cares so much about having equitable services, the company needs to make up for the profits losses that occurs when they provide their free classes. To ensure they make enough money, the company needs to spend that much more time/effort in marketing their yoga classes in order to gain a large enough customer base who does spend money for the classes. With growing popularity as well as an abundance of services being provided, the company needs to have enough money to afford getting not only enough staff but also very qualified staff who are able to deal with different types of customers. On top of this, with such a growing customer base, the current size of the studio might not allow for the maximum number of customers possible for the business. Beloved Yoga is faced with the decision to make more studios or create a larger studio, both choices meaning very high costs for the business.
Shared Value For Stakeholders : Who are the 2-3 most important stakeholders of this small business and what issues and concerns does the small business face with respect to having to generate shared value with/for these stakeholders?
The first important stake holder would be the customers of Beloved Yoga, specifically the customers who have disabilities. These customers are extremely important to beloved yoga as the company has to take certain measures to ensure these customers get the same quality services as everyone else with extra assistance as needed. In order for customers who have disabilities to have the best experience, Beloved Yoga needs to in some instances allow for caregivers to join the session, allow for guide dogs/service dogs, and choose the best staff to tailor the session in a way which works best for the customer. The second important stake holder is employees which is crucial to Beloved Yoga because the company has a commitment to its customers to provide them with experts in the area of Yoga who have gotten many certifications. Beloved Yoga needs to ensure all the employees are not only certified to be teaching yoga but also have excellent service and can teach to a wide variety of customers.
Other Examples Like This?: As a future manager facing complex environments, give another example of an organization (large or small) that faces competing pressures between the need for attention to financial performance and the need to create shared value for stakeholders:
One example of a large company that faces competing pressures between the need for attention to financial performance and the need to create shared value for stakeholders is the company Kumon. Kumon has to ensure that it meets the needs of its customers by providing educational resources and teaching regardless of ability, age, race or cultural and economic backgrounds. Within the customers’ stakeholder category, there are so many different types of people who utilize Kumon. For instance, there are older and younger kids, different academic levels/needs, kids with various learning disabilities, etc. Kumon needs to meet the needs of its customers while also giving an equal amount of attention to its financial performance. It’s important for Kumon to be on top of its financials and make enough money to actually fund the necessary educational resources for its customers