MCE/MCE+1 – Blog Post Prompt – July 19, 2022 – Maximization vs. Shared Value
Your Name: Kaden Kashner
Focal Organization: Identify the small business you will focus on in this post. Briefly describe the business and its basic/underlying business model:
In this post the small business I am focusing is a small farm that sells milk and ice cream and other farm made products called Perrydell. They also offer other activities such as a free small corn maize and petting the baby cows. The business originally just sold milk to other distributors, but now they continue that with the addition of their own ice cream brand and the shop itself.
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?
The concerns and issues facing the company are the limited supply that can be produced since it is all produced through the cows that they have at the farm. The limited supply being sold at a lower price can be a cause for concern. Another issue with the business is most of the business relies on the season. The corn maize is not open because of the size of the corn for much of the year and ice cream is not bought as frequently in the colder months. Having no corn maize or a desire for ice cream will stop a lot of people from going into the store in those months, but they can continue to sell the milk in other products at distributor locations like a “Rutters” or a grocery store.
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?
I think 2 of the most important stakeholders of this business are the customers themselves and the community around the farm. I think the customers are very important to the business is because they keep the business running. Without people buying directly from them they would lose a majority of the funds they are receiving. The loyal customers will help the business get through seasons where it is less popular and when the market is down. The community is very important for this business in my opinion because it is a local centered business that outsource milk to other local businesses. Community promotes brand loyalty and engagement. Perrydell engages actively in the community by going to schools and offering elementary students tours of the facility where the milk is made. By doing this they are keeping their name active within the community. Having a good reputation through generations of people and in the community of Dallastown, PA will help continue to attract buyers into the product.
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:
A company that is larger around my area is the York Water Company. They have a responsibility to create a shared value for investors and people in the surrounding area of the lake they use to make clean drinking water. When ensuring clean and potable water is being delivered to the community the financial performance might be at stake. Overall clean water is the most important aspect of the company model because of what unsafe water could do to the community.