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Corporate social responsibility, SWOT analysis and BCG matrix

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Management

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By

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Corporate social responsibility, SWOT analysis and BCG matrixCorporate social responsibility is a process where a business incorporates and integrates its values and behaviors with those of its stakeholders. The stakeholders of a business include employers, government, interest groups (such as self-help groups), customers, suppliers among others. The business may have an impact on these various groups. Corporate social responsibilities main aim is to enhance responsible actions and activities in a company’s business and positively influence its activities towards the environment, its consumers, employees, stakeholders and the public sphere. One of the core duties of companies and organizations is to improve the livelihoods of customers and consumers in the society. (Malin, 2010) This can be achieved through the provision of necessary information, creation of job opportunities among the citizens of a society, embracing the need for a clean and safe environment, providing health care and helping the needy and poor. For example, in India a company known as Shakti unilever is empowering women in poverty-stricken rural areas. The women have the potential of making an income by retailing products from the Shakti group. The corporate social responsibility that the company employs is to provide products in wholesale to the women who then distribute to the wider population. The strategy here is to provide income to women as the company tries to reach a wider market base.

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SWOT analysis

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This strategic planning method evaluates the strengths, weaknesses, opportunities and threats to the business environment. For a business to survive in the competitive industry, it has to analyze the four components in its business structure and operations so that it can perfectly fit itself in the market. The strengths of a business are the advantages it has over other companies. The strengths can be infrastructure, marketing and advertising tools and strategies, business location and premises and brand quality and recognition among others. (Stone, 2001) This is what makes a company stand out from the crowd in service delivery. Weaknesses of a company are the shortcomings and challenges that a company has relative to other companies. Opportunities are the external chances that a company can adopt to improve service delivery of its products and services to consumers to increase revenue. Threats are external elements to the business environment that could cause harm to the business such as political instability and wars. In the example of Shakti unilever in India, the company analyses itself through SWOT analysis and we see it focus more on the opportunities that it has to increase revenue as well as create job opportunities. This is by providing employment to women in the rural populations to reach a wider market base.

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3. BCG matrix

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BCG matrix is a tool that helps a company to allocate resource. It is a business analytical tool used for brand marketing, strategic management, product management and portfolio analysis. The BCG matrix is practically a chart or a graph that analyses business units relative to market shares and the growth rates. Some of the terms used in business language are cash cows, dogs and stars that help understand the business environment (Bohm, 2009). Cash cows are units within high market shares in an industry which is at a slow growth rate. For example, in the Shakti unilever, the industry is slowly growing but again the market is high. The rural population in India, therefore, can be categorized as a cash cow. Dogs are units with low market shares in a slow-growing industry. On the other hand, stars are units with high market share in a fast-growing industry, for example, in the telecommunication industry. The industry is growing fast, and the market is high (Orcullo, 2007).

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References

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Mallin, C. (2010). Corporate social responsibility: a case study approach. Massachusetts: Edward Elgar publishing.

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Bohm, A. (2009). The SWOT Analysis. Germany: GRIN Verlag.

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Orcullo, N. (2007). Fundamentals of Strategic Management. Philippine: Rex Bookstores

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Stone, P. (2001). Make marketing work for you. Boston: Boston consulting group.

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