The economy is changing daily andbusinesses must understand that profit, does not keep the business competitive.There is power in the 3BL because the bottom line is more than profit, it is a corporate social responsibility that shoulddefiantly be a part of the business plan because it has so much meat to it. Inthe business plan first, the goals mustbe obtained, determine who will benefit from the business. Benefits should befor the business and the customersbecause the customer’s satisfaction will not only encourage profit but also give the business something tobuild on. The study shows that newmarkets are accessed and existing ones are expanded, tourist are attracted to the area, and it also opensopen up the job market (Scott, 2012).
Back to the bottom line and the three Ps.Understanding that profit is important, but there must be a planet to make a profit on and there must be people to purchasethe product and produce. Neither of the three will impact the bottom lineseparately. People are important because people, work, buy and sell. The planetis important, because there must be aplanet for any of the profit to be made, no planet no profit or people. Inorder for profit to make the planet and the people must exist for the bottomline of a business to be impacted.
Customers are the people, the product makesthe profit and the planet sustains both the profit and the people. Make sense? There is a deeper theory to beingprofitable. The use of the triple bottomline is the best way to keep an competitiveadvantage and remain a social corporation in this economic because the pictureis not complete with all of the necessary areas being involved. Times havechanged from just being able to buy and resale due to supply and demand. Inthis economy the demand can be there, but if the supply is not available thenthe risk for profit is decreased. Small Group Exercise 5.2Elevator Speech Liberty is a non-profit universityso there instead of giving money to shareholders and owners, Liberty reinvests in time and money into the continued education of the students.
Theirmission is to Train for Christ. By reinvesting in the student’s shareholder such as alumni’s understand and value whatLiberty does for its students (Liberty.edu). Through research, it has been shown that Liberty is the largest ChristianUniversity (liberty.edu).
Not only are the does this stand out in the area ofcore competencies, but it also givesLiberty students that competitive edge in the real world. They will know how topray before a test, pray before a job interview, to name a few. Liberty creates value by offering anarray of degree plans as well as the opportunity to be employed by theuniversity.
The value is increased because the education that the studentsreceived is genuine and usable in today’s world. Liberty employs staff that is Christian and has God’splan in mind for the students that are in their classes. Students from Libertyare rank high in the job recruitment aspect. Liberty University is viewed as ahigher learning Christian facility by the students, who are considered thecustomers. Another customer would bevendors who are outsourced by Liberty as well as the staff and employers seekingLiberty graduates.
Prospective employers of the students, view Liberty as auniversity that trains their students forthe real world while teaching Christianvalues. Small Group Exercise 1 Rothaermel (2017) explains thatvaluable resource guides a firm to increase its value creation and the positiveeffect on competitive advantage. Firmsgravitate to VRIO framework to determine internal analysis. In 1991, Barneyidentified the four resource necessary for a firm to sustain competitiveadvantage, which then was called VRIN. This later changed to VRIO forimprovement (Simao, 2010). One could form anopinion that all of the four criteria are neededto sustain a competitive advantage in the industry. If the product is valuableit will bring likely bring profit to the firm, while the value brings profit,it must also be a rare product or service for profit to increase. If theproduct is rare enough, it will be very costly for others to imitate and reducethe competition.
The product must be organized to allow for the greatest valueto be captured. One could say that all of the criteria are interdependentbecause one is no good without the other. Question 4.3All around the world industries have beenchanging and upgrading their look, service, andproducts. There was not much of a choicefor McDonald if the company desired to keep a competitive advantage. The menuwas upgraded to offer a variety of foods, but they did keep some of theoriginal burgers such as the “Big Mac” and the quarter pounder. McDonald didsee a profit increase because customerswere able to choose from a variety of items and not just a hamburger (Nisam,n.
d.). The upper food price adjustmentwas necessary for the company to pay for the new food additions. More and morepeople are claiming to eat healthily, sohaving a variety caters to all customers.
The biggest adaptation that had to happen was employees being retrainedon the menu and increased prices, and grandfathered customers complaining aboutthe price of the same hamburger that was purchased several years ago.