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Hi, can you please help me work out the following questions base on the case study below:
What are the problems in this case study that relates to Corporate Social Responsibility (CSR)?
What are possible alternative innovative solutions for the problems? (i.e. new innovations, strategies, business models etc)
What are possible recommendations for the solutions to the problems?
What business management theories/models etc, could be used to identify, assess, implement or monitor the problems identified?
Also,
The tasks requires me to create a ‘CSR/Ethics’ program or a related issue that will:
a) create a better external brand image, and
b) promote internal CSR ideas.
Could you please make detailed answers to the above questions.
Please remember that all these questions are to be answered in the context of Corporate Social Responsibility and ethics.
CASE STUDY:
Sydney Travel Group (STG) is a major player in the international travel marketing space. They have been growing steadily over the past decade through traditional brick and mortar stores with basic online marketing and joint venture strategies. The company turns over 10 billion US per year. They have also grown their baseline value (known as: Total Transaction Value or TTV) by acquiring companies on capabilities. Two years ago they saw an alarming trend. While their transactions went up, the overall sales in some key competitors went down. The CEO Danielle Harding, was at first not concerned because the TTV was up. The puzzle became a real concern when this year the TTV went down by 15% followed sharply by a decline in the share price. An emergency board meeting was called asking for solutions.
A decision was made that the company had to innovate at any cost. After the board meeting Danielle briefed your management consultancy team:
“We have had a good look at our business. We know that the industry is not going to turnaround anytime soon. So we have decided that we must innovate. We have highlighted our one of our key problems as corporate social responsibility. We are dedicating one million dollars over the next six months for proposals to innovate our business. We are looking to drive our TTV through four key areas: New Business Models and/or New Strategies, Better ways of working that are more efficient, improving how we communicate and our workplace culture and industry leadership in sustainability and CSR. Our research showed us that our core business is strong but sales are down. We have been very slow to move into the internet market. Our strategy of working stores is working well but not as well as we would like. Our employee barometer survey showed us that our people leave the organization all the time. Our employee turnover is high. The same survey revealed that many external people, potential customers, were also moving away from STG.
NOTE: You are expected to draw on theory to solve this problem
Expert Answer
As per the case, STG’ Total Transaction Value (TTV) slumped 15% and market share also fell. As admitted by CEO, the company has not been innovating and has started to lose ground. Adding to the problem the employee turnover has also been high.
CSR on broader terms deals with four major parts:
- Society
- Workplace
- Environment
- Market place
Majority of the CSR problems can be put into one of the above given buckets. Clearly for STG problems are coming from Workplace and Marketplace (explained below)
- Based on the case give the following are the problems related to Corporate Social Responsibility (CSR):
- There is something going wrong at the work place due to which the employee turnover rate is high.
- Second problem comes from Market place as the case says that, external people (Suppliers, vendors) and the potential clients are moving away.
As per the case, there are four main areas to be focused:
- New Business Models/New Strategies
- Better, efficient ways of working and communicating.
- Workplace Culture
- Industry leadership
2.For Workplace:
STG needs to build a work place culture in which the employees feel happy and willing to work for the company. It need to get to the core of the problem which employees are facing and tend to mend it.
Some of the methods for it are: 1) Flexi working hours 2) Job sharing etc
For Market Place:
STG need to focus on the vendor benefits and client satisfaction. As the company is also lagging in online space, it would be helpful to do and online CSR campaign, to make the world understand that STG stands for something more than just doing business. Using new digital marketing techniques in this respect would be fruitful.
3. STG should aim to create Shared Value by having a two way communication with all the stake holders. STG should identify the stakeholders in the company and try to understand the mismatch in expectations and results of the company.
Important Stakeholders:
- Employees
- Clients
- Vendors
STG can create the shared value by following right labour practices, operation practices, involving the community and work for the development.
4. I think STG should follow, Mckinsey’s 7S model.
Using Mckinsey’s & Model will look at the business as a whole and work towards it. 7s model includes: Strategy, Structure, Systems, Shared Values, Style, Staff, Skills.
- Branding and CSR go hand in hand these days. Creating a good CSR plan and integrating it with branding could do wonders to the company.
Create a goal for your CSR program with SMART technique:
S-Specific
M-Measurable
A-Achievable
R-Realistic
T-Time-bound
CSR program made by above technique will enable you to channelize your thoughts and provide good results for the company.
