PURPOSE Purpose and Food Value Chain
PURPOSE Purpose – is to ensure that the company’s work always delivers positive social outcomes, not just commercial and financial success. The company must always focus on social purpose-led approach, meaning to establish and encourage companies to act as a force for good in society.
PURPOSE of the Company A purpose gives answers to these key questions: Why does our company exist? Who are our customers and what values and qualities they have in common? What would the customers miss if we were not around? What sets us apart? Source: AEC Business
PURPOSE of the Company The following characteristics are essential when defining company’s purpose: A good purpose is promoting and inspiring. It makes a firm’s endeavors noble or dignified. It is inspiring to all stakeholders. It communicates on an emotional level, which is essential to most individuals. People crave meaning in life and work. A good purpose says what you do (and what you don’t); it puts a stake in the ground. A good purpose sets your company apart and makes you distinct. The difference may arise from many sources: innovation, business models, deep insights about specific client needs, technologies, management, and so on. Try to imagine how your customers see or will see the difference. Most importantly, a good purpose sets the stage for profitable and growing business. Source: AEC Business
PURPOSE of the Company Examples : Be a credible and reputable platform from which to accomplish personal, professional, societal and environmental goals. For the entrepreneur, it may be a sense of identity or personal fulfillment. Investing company: The main purpose of a company is to take money from investors (their creditors and shareholders) and generate profits on their investments. Source: Strategic Management Resources: “Today’s Vision. Tomorrow’s Success”
Purpose of Value Chain The purpose of the value chain (Porter, 1985) is to better manage linkages with buyers and suppliers in the value creation The purpose to perform value chain analysis by buyers and suppliers, firms must cooperate, share costs and performance information (Shank and Govindarajan, 1992;1993) Companies adopt specific purposes, such as value creation, product differentiation, adopt respectful and proactive attitude towards stakeholders and provide success and creation of value (Porter & Kramer, 2006; Wheeler, Colbert & Freemen, 2003)
Purpose and Value Chain The Purpose of Barilla company : «Good for You. Good for the Planet» «Good for You» - regards the activities to improve people’s wellbeing, promoting choices of consumption in line with the food pyramid «Good for the Planet» - regards the aims to reduce the impact on the planet, thus reducing environmental footprint «Good for the Communities» - regards the activities enabling inclusion of all members of the community, promoting food access programs, educational paths and leveraging diversities