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A   S t u d y    G u i d e

by Peter Newton

Traditionally, the business world has been seen by many as an adversarial, dog-eat-dog environment plagued by win-lose dealings, in which only the strongest survive. More recently, however, diverse industries have been seeing more and more examples of mutualistic, win-win business models based on relationships of cooperation and mutual benefit, either as spontaneous, unplanned social phenomena or as the outcome of intentional movements and discourse interventions. Today, mutualism in trade is no longer seen as an idyllic, impractical dream; rather, it is being increasingly recognized as the future scenario towards which global business trends appear to be moving.

This study guide is designed to help you investigate a few of the main forms that mutualism has taken in business. There is no prepared text for this topic. Rather, we will depend on your ability to surf the Web and find what you need. The study questions and links are only suggestions; you are encouraged to explore as far and as deeply as you feel inclined, in order to gain an good understanding of each area. In the next class, you will have the opportunity to discuss your findings with your classmates and the teacher. Remember: a business approach does not have to be 100% mutualistic in order to represent a major change and teach us valuable lessons!

1.    Cooperative Economics:

·         How is it defined or described, from at least these three viewpoints (or more):  Political Economy (Marxist, the ‘Third Way’); Religious (Christian, Islamic); and Afro-American / Pan-African (Ujamaa)?

·         List some of the many practical forms that cooperative economics has taken so far.

·         What do you think are its proponents’ visions for the future? Do you think this vision is achievable? How? Would cooperative economics work on a global scale?

2.    Corporate Values / Principles:

·         What specific place do corporate values, principles or philosophy have within the strategic planning process? How do they relate to the other elements of it?

·         Look at the value statements of several corporations and make a list of the most common ones. Why do you think they concentrate on these particular values? What do they have to do with building a culture of peace?

·         Cite at least three companies about what benefit they obtain from having – and from acting in accordance to – clear, shared corporate values.

3.    Teamwork within a Business Environment:

·         Cite cases illustrating the main advantages of teamwork in at least three areas: decision-making; administration; and manufacture?

·         How are people motivated and rewarded when working in teams? How to avoid ‘freeloading’ by team members?

·         What implications might this development have for international relations?

4.    Coopetition or Coopertition:

·         First, what does “competition” mean in economics? How does this compare or contrast with the common use of “competition”, in sports and other fields.

·         How is coopetition o coopertition defined? Give some concrete examples of what it has looked like so far in practice.

·         What problem was it created to solve, or what needs was is created to satisfy?

·         Is this really a sign of a new spirit of cooperative economics, or just a new, improved way to compete? Cite at least one author who defends each point of view, and then give your own opinion.

5.    Corporate Social Responsibility:

·         Quote at least three definitions, and then write your definition in your own words.

·         Cite some concrete examples of what it has looked like so far in practice.

·         Does this tend to be just another way to enhance corporate images, or is it often motivated by a sincere interest in helping to solve pressing issues in the world?

6.    Wikinomics / Macrowikinomics:

·         Quote at least three definitions, and then write your definition in your own words.

·         Cite some concrete examples of what wikinomics / macrowikinomics.

·         What problems is it solving, or what needs is it satisfying? Can it go further?

·         What does it mean that we need to “reboot all the old models, approaches and structures, or risk institutional paralysis or even collapse.”

·         Where do you think this mass phenomenon might lead in the future?

7.    Social Entrepreneurship:

·         Quote at least three definitions of social entrepreneurship, social entrepreneur, and/or social enterprise, and then write your own definition in your own words.

·         Give three concrete examples of what it has looked like so far in practice.

·         Once again, is this just another way to enhance corporate images, or is it motivated by a sincere interest in helping to solve pressing issues in the world?

·         What is meant by the phrases “double bottom line” and “triple bottom line”?

·         Some good starting places (see videos!): Muhammad Yunus & Grameen Bank; Martin Fisher & Kickstart pumps; Bill Drayton and Ashoka.org; Echoinggreen.org.

8.    Others:

·         What other forms of mutualism and cooperation have you seen or heard about in the business world?


 


Comments

Xiomari Paredes
09/27/2011 19:36

5. Corporate Social Responsibility:
• Quote at least three definitions, and then write your definition in your own words.

The European Commission defines corporate social responsibility (CSR) as "a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis". [1]

The World Business Council for Sustainable Development stresses, “CSR is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families, as well as of the local community and society at large”. [2]

According to the World Bank, “Corporate Social Responsibility (CSR) is the commitment of business to contribute to sustainable economic development, working with employees, their families, the local community and society at large to improve quality of life, in ways that are both good for business and good for development”.[3]

And as the last reference, Harvard University says that “corporate social responsibility encompasses not only what companies do with their profits, but also how they make them. It goes beyond philanthropy and compliance and addresses how companies manage their economic, social, and environmental impacts, as well as their relationships in all key spheres of influence: the workplace, the marketplace, the supply chain, the community, and the public policy realm.” [4]

Therefore, although corporate social responsibility can be interpreted in a wide range of ways, it can be defined as a voluntary commitment by business to behave ethically and to contribute to sustainable economic development. What is more, it implies a high degree of responsibility and commitment of the companies about how they made and what they do with their profits, in order to benefit to the whole society.

• Cite some concrete examples of what it has looked like so far in practice.

Motorola is engaged in humanitarian aid projects, and has established „green rules” for the environment protection. It has also developed a system of CSR reporting. Moreover, it has promoted voluntary programs among employees, as well as, systems of workforce valuation and motivation. Finally, another important issue is that Motorola supports new technologies for education and development. [5]

As Honeybees are disappearing at an alarming rate, and it represents bad news for the global food chain, Haagen-Dazs decided to create a microsite to raise awareness about the issue: “Honey bees are responsible for pollinating one-third of all the foods we eat, including many of the ingredients that define our all-natural ice creams, sorbets, frozen yogurt and bars.” The company is donating a portion of proceeds from its Haagen-Dazs honeybee brand to research on the topic, and it launched a modest Twitcause campaign, raising $7,000 in two days last November (“Bee Buzz generated: 643,748 tweets”). [6]

McDonald’s has adopted the European Union’s restrictions on the use of growth-promoting antibiotics for its suppliers of beef and chicken in the United States. This company also donates a portion of its pre-tax profits to corporate philanthropy as part of its efforts to be more socially responsible. McDonald’s makes charitable contributions through the Ronald McDonald House Charities (RMHC) which aims to create, find and support programs that directly improve the health and well being of children. [7]

Citibank, along with other major financial institutions, has developed criteria for assessing the environmental impact of its lending decisions in developing countries. PepsiCo, along with more than a dozen oil companies and consumer goods manufacturers, has withdrawn its investments from Burma because of human rights concerns. Starbucks, as well as many other major coffee distributors and retailers, sells coffee bearing the Fair Trade label, which guarantees coffee producers an above-world-market price for their products. [8]

• Does this tend to be just another way to enhance corporate images, or is it often motivated by a sincere interest in helping to solve pressing issues in the world?

Like most things in life, corporate social responsibility can be motivated by a sincere interest in helping to solve pressing issues in the world, but at the same time it is used to enhance corporate images. Take for instance; there are companies that use it as a public relations exercise. Furthermore, it is essential to take into account that CSR loses its transcendence if the business practice is dishonest.

6. Wikinomics / Macrowikinomics:

• Quote at least three definitions, and then write your definition in your own words.

According to the IT Encyclopedia, “Wikinomics is a term that describes the effects of extensi

Reply
09/27/2011 22:49

Thanks, Xiomari, for your interesting input. Too bad it was cut off at the beginning of your answer on Wikinomics. I guess this blog has a size limit or something.

Regards,
Peter.

Reply
Romina Palacios
09/27/2011 23:15

4. Coopetition or Coopertition:
• First, what does “competition” mean in economics? How does this compare or contrast with the common use of “competition”, in sports and other fields.
Competition in economics is a term that encompasses the notion of individuals and firms striving for a greater share of a market to sell or buy goods and services. Merriam-Webster defines competition in business as "the effort of two or more parties acting independently to secure the business of a third party by offering the most favorable terms."
(http://en.wikipedia.org/wiki/Competition_(economics)#cite_ref-0)
This definition compares to the use of “competition in sports and other fields in the fact that two or more institutions compete against each other in order to achieve a goal, which is obtaining the biggest market share possible. The difference between the common use of “competition” and the economic definition of “competition” is that economic competition does not occur in a determined period of time, it can extend to large periods because it is a way of behaving between companies and it doesn’t have a permanent winner or loser, it is an adversarial approach of market.
• How is coopetition o coopertition defined? Give some concrete examples of what it has looked like so far in practice.
Coopetition or Co-opetition (sometimes spelled "coopertition" or "co-opertition") is a neologism coined to describe cooperative competition.
Basic principles of co-opetitive structures have been described in game theory, a scientific field that received more attention with the book Theory of Games and Economic Behavior in 1944 and the works of John Forbes Nash on Non-cooperative games. Coopetition occurs when companies work together for parts of their business where they do not believe they have competitive advantage and where they believe they can share common costs
(http://en.wikipedia.org/wiki/Coopetition)
Coopetition, in the practice, has presented itself through the cooperation of enterprises in order to reduce costs, despite the fact that they keep competing with each other. One example of this is the arrangement between PSA Peugeot Citroën and Toyota to share components for a new city car simultaneously sold as the Peugeot 107, the Toyota Aygo, and the Citroën C1. Another example is the establishment of food courts, in fact, restaurants agree to work in a same location so that customers are attracted by the facility of going to a single place and obtaining a wide variety of food. Beyond that, there are other examples such as the replacement of AOL's search engine with Google (and displaying Google's brand name on AOL to communicate this fact to their users). Google gains the benefit of additional exposure to users and fees from AOL, while AOL loses a bit of its stodgy image by providing a trendy technology that improves their user's experience.
• What problem was it created to solve, or what needs was is created to satisfy?
Coopetition was created to satisfy various companies’ needs to reduce their costs by making alliances with competitors working in the same field. Its goal was to increase the revenues of each particular company by sharing resources.
• Is this really a sign of a new spirit of cooperative economics, or just a new, improved way to compete? Cite at least one author who defends each point of view, and then give your own opinion.

According to Xueming Luo, Rebecca J. Slotegraaf and Xing Pan, coopetition is really a sign of cooperative economics. They believe that the consequence of joint occurrence of cross-functional cooperation and competition is to enhance firm performance. The synergy of coopetition has been theorized to produce various benefits, including learning, cost savings, resource sharing, and innovation. At an intraorganizational level, cooperation among competing units may be evident by absorbed and frequent interactions to uncover competing units’ know-how.
(http://wweb.uta.edu/faculty/luoxm/Home/jm.cross-function%20coop.luo.apr06.pdf)
On the contrary, according to Wshuser, cooperative economics is only an improved way to compete due to the fact that it is a way to observe the behavior of competitors closely. He states that thеrе аrе two аррrοасhеѕ tο dealing wіth competition. A company could spy οn another one, οr it сουƖԁ take advice frοm thе Harvard Business Review, аnԁ partner wіth its competition, instead.
(http://business.directiontrend.com/keep-your-enemies-close/)
In my opinion, coopetition is a tool to encourage cooperative economics due to the fact that it can benefit two or more enterprises if these institutions are willing to share common resources and techniques. Even though this tool can be used for competition,

Reply
Monserratte Arguello
09/28/2011 01:03


Wikinomics /Macrowikinomics

• Quote at least three definitions, and then write your definition in your own words.

Experts believe that Wikinomics has the power to be bigger than industrial revolution or even the invention of computer. Soon, there will be huge world companies emerging and the current day Multinational Companies (MNCs) and large-scale corporations will have to re-think and adopt wikinomics ways. 1

Wikinomics describes a modern economic structure that will soon become the way of the business world, which is completely based on mass collaborations, sharing and transparency. Shunning the traditional style of working. 2

Wikinomics is a term that describes the effects of extensive collaboration and user-participation on the marketplace and corporate world.3 As well as others experts describe wikinomics as a change between businesses and markets because of much greater involvement of customers and users directly with products or companies. This is a combination of the words 'wiki' and 'economics. 4

Furthermore, according to Tapscott, Wikinomics is based on four ideas: Openness, Peering, Sharing, and Acting Globally. The use of mass collaboration in a business environment, in recent history, can be seen as an extension of the trend in business to outsource: externalize formerly internal business functions to other business entities. The difference however is that instead of an organized business body brought into being specifically for a unique function, mass collaboration relies on free individual agents to come together and cooperate to improve a given operation or solve a problem. This kind of outsourcing is also referred to as crowdsourcing, to reflect this difference. This can be incentivized by a reward system, though it is not required.5

That is why in my opinion wikinomics is the mass collaboration of people and companies around the world to achieve a common commercial goal.

• Cite some concrete examples of what wikinomics / macrowikinomics.

Wikipedia and Linux are two of the most popular Wiki-projects. Today these projects are bigger than most of the traditional companies. That is the power of Wiki to work in a global collaboration of many different individuals and entities, working on one common project.

• What problems is it solving, or what needs is it satisfying? Can it go further?

• What does it mean that we need to “reboot all the old models, approaches and structures, or risk
institutional paralysis or even collapse.”

Tapscott and Anthony D. Williams book argues that many of the institutions of the industrial age have finally come to the end of their lifecycle, and are now being reinvented around a new set of principles and a networked model.

Humanity's ability to transform raw materials into energy powered the rise of modern civilization and shaped the fortunes of nations throughout history. James Watt's steam engine triggered the industrial revolution in Britain and ushered in a period of enormous technological, social and economic transformation. Roughly a century later, the invention of electricity and the eventual electrification of factories brought large-scale business enterprises and double-digit increases in productivity that transformed the United States into the modern economic powerhouse.

Today, the world stands at the brink of a new energy revolution -- one that will fundamentally transform the ubiquitous but largely invisible infrastructure that powers every home appliance, every medical device, every light source, and virtually every industrial process, from agriculture to construction. The fossil-fuel-based economy is coming to an end and a new green-energy economy is emerging in its place. Like past energy revolutions, there will be great payoffs for the countries and companies that master the new technologies early. The opportunity for new product and service innovation is huge, as is the potential for smart firms to create hundreds of thousands of new high-skill jobs in fields ranging from solar engineering to software.

But are we positioned to take advantage? To really tip the scale in favor of green energy, we need an infusion of Wikinomics principles. The need for cross-sector collaboration in developing and scaling new technologies is paramount. But we can and should go further. Truly opening up our energy infrastructure could catalyze new sources of supply, provide a platform for new energy services, and help foster a culture of energy "prosumption" whereby household and business users become active producers and managers of energy, not just passive consumers and ratepayers.

It's not as far-fetched as it sounds. There is already increasingly broad agreement that our electrical systems should do more than carry electricity. They should carry information. And once the grid carries information, it stands to benefit from the same kinds of innovation, collaboration, and wealth creation that the Internet has enabled

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Adriana Monar Salazar
09/28/2011 07:42

3. Teamwork within a Business Environment:
- Cite cases illustrating the main advantages of teamwork in at least three areas: decision-making; administration; and manufacture?
Team work is important in all areas of human development. When it comes to decision-making processes, working as a team and taking into consideration everyone’s ideas has proved to be very productive and has enabled people to make decisions based on a complete spectrum of different ideas. A study made on 2001 regarding medical dominance in multidisciplinary teamwork proved this to be true by showing that doctors considered that processes of patient discharge required the input of a large range of specialists, whose knowledge was vital in ensuring that patients would receive appropriate treatment (GAIR & HARTERY, 2001).
Managing an enterprise is not an easy task. In order for a business to work and be profitable, it is important for all its members to work as a team and to have effective communication systems that will allow them to solve problems and make decisions quickly. People can’t be good at everything; that’s when teamwork comes into play. Some people may be better than others at specific tasks and they sort of complement one another when working together. A clear example of this was the steel magnate Andrew Carnegie who always praised his management team as knowing more about steel than he did – and this honest admission not only motivated his team, but reflected his own culture of respect and made his company one of the most successful ones. (Oates)
Finally, we can’t ignore the positive effects of teamwork in manufacturing. A study conducted by the Stanford Graduate School of Business in steel minimills across the U.S. showed that having an environment that promoted teamwork –along with meaningful incentives and having the certainty that management listens to them –increased manufacturing productivity by bringing people together because no one person can solve the problem as well as the group. (Shaw, 2008)

- How are people motivated and rewarded when working in teams? How to avoid ‘freeloading’ by team members?
When we work in teams, our efforts are oriented towards a greater common benefit. Knowing that our contributions will help the whole team achieve its goals and being aware of the importance and impact of our work (no matter how small it could be) will definitely motivate us to keep working and seeing the results of our efforts will be the greatest reward.
However, some people might not be motivated enough to do their share of the work and will expect other members of the team to do all the chores. These people are known as freeloaders or free riders. Sometimes freeloaders don’t even realize they are regarded by their team partners as people who do not contribute at all, so talking to them about this issue and helping them come up with a plan that will help them get back to being productive members of the group would be the best solution. Offering guidance and help definitely works better than having a confrontational attitude.

- What implications might this development have for international relations?
The advantages of teamwork have been demonstrated in local dimensions such as enterprises and other types of work environments. However, it could also be effective in a bigger scale. Individuals are not the only ones who can work in teams; extrapolating teamwork and applying it to bigger contexts such as international relations and turning nations in members of a team could also be effective. Countries around the world have resources and have developed different types of capabilities that differentiate them from other countries. Instead of using this resources and abilities to create only local wealth increasing the gap between developed and developing countries, wouldn’t it be better for nations to find a way to share their resources and knowledge in order to create a greater good and more equitable world?
6. Wikinomics / Macrowikinomics:
- Quote at least three definitions, and then write your definition in your own words.
1. “Wikinomics is a new force or movement that is bringing people together on the net to create a giant brain (mass collaboration)”. (Frank, 2009)
2. “Wikinomics: a description of the way the relationship between businesses and markets has changed because of much greater involvement of customers and users directly with products or companies”. (Cambridge Business English Dictionary)
3. “The catchword of today is “Wikinomics”, referring to the internet encyclopedia Wikipedia and the way it changed the business model for encyclopedias. The central ideas of such a “Wikinomy” are openness as regards membership and information as well as joint and decentralized production (“peering”)”. (Reichel)
4. “Macrowikinomics proposes quite simply that “open”

Reply
Omar Fuertes
09/28/2011 13:18

3. Teamwork within a Business Environment:

Cite cases illustrating the main advantages of teamwork in at least three areas: decision-making; administration; and manufacture?

“Decision-making can be one of the greatest challenges and sources of frustration your team faces. Often, the decision-making process is unclear and individual participation is sketchy. In this workshop, we'll focus on several decision making methods, but primarily on: delegating decisions to others and unanimous agreement of the group (otherwise known as consensus). Both require the development of team skills, and training, but the Consensus (or unanimous agreement) demands a high level of trust among the members of the group. People need to believe that each member is a fair and reasonable person of integrity who has the organization's best interests at heart. There are no perfect groups or perfect individuals, but for consensus to work the members must believe that everyone is honestly doing their best.”(1)
“Effective teamwork begins at the administrative level in a school. Principals and vice principals, and sometimes counselors as well, have the initial duty of laying the groundwork for lasting teamwork first among themselves, and then for the other occupants of the school. The first step is planning a non-negotiable schedule of weekly or bi-weekly meetings for the administrative staff to sit down together and discuss an agenda that always consists of individual check-in's, reports on their department of coverage, positive and negative reports or experiences with or from teachers, and positive and negative reports or experiences with or from students. This check-ins ensure that all administrative staff is in consistent communication with each other and always working toward the same goals. The goals for the year should be set at the first meeting. A plan for teacher and student teamwork should also be planned for implementation.”(2)

“Other countries, says China for example, are collectivists in nature, meaning that they live their life working for accomplishments of the group. They virtually eliminate the recognition of individual accomplishment and emphasize group effort and the benefits to the group. Teamwork in China is integrated into every aspect of their existence—the core of their being demands that the group is greater than the will of any ONE person. A great example of the strength of this philosophy versus individualism was exemplified during the Summer Olympics, held in Beijing. Both the US men’s and women’s track team are made up of amazing, individual, stars. Unfortunately, as a whole, they fell short working together as a team.”(3)


How are people motivated and rewarded when working in teams? How to avoid ‘freeloading’ by team members?

“One way to inspire teamwork is through contests and exercises that your employees can be included in. Have teambuilding exercises such as games or challenges. Splitting your team up into two groups, you will force them to learn how to function as a group. Of course, this also inspires bonding between team members, which will carry over into every day situations and will be beneficial to the group. The thing that most CEO’s and VP’s don’t realize is that teamwork within their company will not just grows in and of itself. Teamwork is a skill, which must be taught, fostered and encouraged. When ordinary individuals feel as if they are part of a team, they are more likely to volunteer their extra efforts to continue to make their work place a better place.”(4)

The best way to avoid the freeloaders when working in a team is making participate each one of the members by listening their ideas. If one person of the team is not interested in doing nothing an incentive could be the solution or simply make him feel comfortable with the topic or problem you are going to solve.

What implications might this development have for international relations?

The implications of this development for international relations could be extremely important. As we can see nowadays in big enterprises like Coca-Cola, Sony or Apple their teamwork is amazing. The way they solve a problem, take important decisions, etc. But, how about trying the teamwork between each other as internationals relations. Imagine giant multinationals working as a team. This could bring amazing profits not only for the company but also to the consumer.


6. Wikinomics / Macrowikinomics:

Quote at least three definitions, and then write your definition in your own words.

1. “In which case, wikinomics, defined as the art and science of mass collaboration in Business” (5)

2. “…becomes macrowikinomics:the application of wikinomics and its core principles to society and all of it institutions.” (6)

3. Wikinomics is a new force or movement that is bringing people together on the net to create a giant

Reply
Andrea Reyna
09/28/2011 15:18

1. Cooperative Economics:
Over the last 150 years or so, two socio-economic systems have dominated the world: capitalism and communism. Capitalism is synonymous with individual ownership and private enterprise, and communism is synonymous with state ownership and public enterprise. All of us are familiar with both systems. However, there is a third model, sometimes called ‘the third way’ or the cooperative economy, which offers an alternative future, one that, potentially, should avoid the excesses and disasters of both capitalism and communism.
Local Cooperative Economics means just that--- an idea of local people cooperating with each other to provide for the essentials of living. Cooperative here means that people work together to develop self-reliant, locally-based and community controlled economies within a given bioregion. This could be a mixture of cooperative, employee-owned, and private-owned businesses.
The idea of community-based economic development has been generally considered by those in the field of development to involve the infusion of outside monetary and technical support. With all the caution required by such considerations, we do think it possible to argue that an efficient system of producer cooperatives is a socialist order which may supersede capitalism in full harmony with Marxist thought.

These passages are clear evidence of Marx’s belief that a system of cooperative firms is not only feasible, but bound to assert itself in history and that it gives rise to a new production mode in which wage labour is swept away and the means of production— what economists term capital—would no longer be used to enslave workers. In such a system, workers would not only cease being exploited; they would feel free and happy to work for firms owned by them.

"Whoever preserves himself from his own greed will be prosperous" The basic idea that all wealth belongs to God and that humankind is only a trustee of this wealth is common to all religions. However, there are subtle differences in their positions with respect to the implications of this idea for economic behaviour. Thus, while the Jewish position is broadly egalitarian, it interprets Divine ownership as legitimizing the (existing) structure of property rights, even though the right to property in Judaism is not held to be absolute for either the individual or the tribe. The Christian point of view is that people, though accountable before God for the way they use the resources at their disposal, have a wide discretion in using them to the best of their ability. The Islamic position is to emphasize the concept of the 'relative' ownership of all wealth. Thus, "of that whereof He hath made you trustees", the individual must spend with moderation and for the benefit of the society.
However, this ideas rest in a utopia, these have not reversed poverty in any significant way, in fact, poverty is worse today. The gap between rich and poor continues to grow. Encouraging local people to become competitors in the gladiator combat known as the "global economic order" is misguided.
Instead, we need to help build up local cooperative economic networks that help to create local people's banks to reinvest the capital. Capital can be "turned" in a local community to revitalize the local economy like Grameen Bank.
Fortunately, there are many examples of cooperative efforts that are community -owned and controlled--- where development decisions are made by local people and not simply well-intentioned outsiders or by "neo-colonial" interests.
Robert Owen: The start of the cooperative movement is generally dated to the first half of the nineteenth century, to the time of Robert Owen. Owen was a successful British cotton spinner and industrialist, who demonstrated at New Lanark that a model factory and town based on cooperative principles could run profitably. All of Owen’s New Lanark workers, including many women, received company education and company housing. Owen wanted factory reform, urban reform and educational reform implemented throughout all of England. However, although Owen’s model was well-known and often admired, it was not supported by the British government or adopted by other firms, and so it had little impact on economic development in Britain during the nineteenth century.

Muto Sanji: A century later, at the beginning of the twentieth century, a vision similar to that of Owen’s emerged in Japan. Muto Sanji, who was born in 1867, was a young managing director of a cotton-spinning business. He developed a solution to the twin problems of training and retaining the workers he needed and restraining the cost of their wages. He organised in-house training programs in his factories, and offered good workers a range of benefits, including lifetime employment, promotion by seniority, consultation with managers about their work, and some beginnings of ‘company welfare’

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Santiago Perasso
09/28/2011 15:49

5. Corporate Social Responsibility:
• Quote at least three definitions, and then write your definition in your own words.
CSR is a concept that frequently overlaps with similar approaches such as corporate sustainability, corporate sustainable development, corporate responsibility, and corporate citizenship. While CSR does not have a universal definition, many see it as the private sector’s way of integrating the economic, social, and environmental imperatives of their activities. As such, CSR closely resembles the business pursuit of sustainable development and the triple bottom line. In addition to integration into corporate structures and processes, CSR also frequently involves creating innovative and proactive solutions to societal and environmental challenges, as well as collaborating with both internal and external stakeholders to improve CSR performance.
http://www.ic.gc.ca/eic/site/csr-rse.nsf/eng/home
We define corporate social responsibility strategically. Corporate social responsibility encompasses not only what companies do with their profits, but also how they make them. It goes beyond philanthropy and compliance and addresses how companies manage their economic, social, and environmental impacts, as well as their relationships in all key spheres of influence: the workplace, the marketplace, the supply chain, the community, and the public policy realm.
The term "corporate social responsibility" is often used interchangeably with corporate responsibility, corporate citizenship, social enterprise, sustainability, sustainable development, triple-bottom line, corporate ethics, and in some cases corporate governance. Though these terms are different, they all point in the same direction: throughout the industrialized world and in many developing countries there has been a sharp escalation in the social roles corporations are expected to play. Companies are facing new demands to engage in public-private partnerships and are under growing pressure to be accountable not only to shareholders, but also to stakeholders such as employees, consumers, suppliers, local communities, policymakers, and society-at-large.
http://www.hks.harvard.edu/m-rcbg/CSRI/init_define.html
Corporate social responsibility (CSR) can be defined as the "economic, legal, ethical, and discretionary expectations that society has of organizations at a given point in time" (Carroll and Buchholtz 2003, p. 36). The concept of corporate social responsibility means that organizations have moral, ethical, and philanthropic responsibilities in addition to their responsibilities to earn a fair return for investors and comply with the law. A traditional view of the corporation suggests that its primary, if not sole, responsibility is to its owners, or stockholders. However, CSR requires organizations to adopt a broader view of its responsibilities that includes not only stockholders, but many other constituencies as well, including employees, suppliers, customers, the local community, local, state, and federal governments, environmental groups, and other special interest groups.
http://www.referenceforbusiness.com/management/Comp-De/Corporate-Social-Responsibility.html
Social responsibility can be defined as the integration of responsibilities related to the organizations. This word involves a compound of main characteristics which are essential for a company because it is not only about the way of managing profits and company’s economy. It is based on how the work environment works as whole. It means: workplace, relations with the employees, suppliers, customers, stockholders. So, social responsibility must be seen as the application of the same importance to each work area and to every individual that is part of an organization.

• Cite some concrete examples of what it has looked like so far in practice.
Government ultimately has the responsibility of ensuring public welfare by social security.
Successful companies are used to hire a persona which is in charge of the human resources area and thus help the employees with their personal issues.
They are programs created by ONG which focus their principal target on benefiting a community or the nation.

• Does this tend to be just another way to enhance corporate images, or is it often motivated by a sincere interest in helping to solve pressing issues in the world?
In my opinion this is just another tendency to enhance corporate images because sadly nowadays everything keeps turning around the money. Behind the support of social responsibility, there is always a hidden interest. However, it does exist organizations which focus on helping people without any neither economic nor social interest, but the amount is still quite a few.
6. Wikinomics / Macrowikinomics:
• Quote at least three definitions, and then write your definition in your own words.
According to Tapscott, Wikinomics is based on four id

Reply
Valeria Llerena
09/28/2011 16:26

5. Corporate Social Responsibility:

• Quote at least three definitions, and then write your definition in your own words.

In 1953, Bowen conceptualized CSR as social obligation – the obligation ‘to pursue those policies, to make those decisions, or to follow those lines of action which are desirable in terms of the objectives and values of our society’, this was one of the fist definitions of Corporate Social Responsibility.

Another definition is that Corporate Social Responsibility is “A company’s sense of responsibility towards the community and environment (both ecological and social) in which it operates. Companies express their citizenship through their waste and pollution reduction processes, by contribution educational and social programs, and by earning adequate returns on employed resources”

Finally the The European Commission defines corporate social responsibility (CSR) as "a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis".

However corporate social responsibility can be understood in many ways, for me it is when a company wants to contribute and they make a commitment with people, society and the planet in order to use sustainable economies and sources, also it has to do with having ethic and values when doing trade and deals.

• Cite some concrete examples of what it has looked like so far in practice.
Haagen-Dazs can be taken as an example; they are trying to preserve honeybees. These are disappearing in an alarming rate. This company has create a site to inform people about the harm can cause if honeybees disappear because they are in charge of pollinating one-third of all foods we eat. Nowadays the company is donating a portion from its Haagen-Dazs honeybee brand in order to help in research of the topic.

Another good example is Starbucks because they really take care about their employees. When you go you know that you are having a product of a very good quality but, you are also contributing to the wealth of the employees.

The employees of this enterprise have the 82% of job satisfaction which is very high comparing with the average of the industry that is 50%. They offer to their employee’s healthcare, access to stock options, tuitions reimbursement and retirement savings accounts. Starbucks nowadays pay more for its employee’s health care that for raw materials. This creates a good corporate image. Actually they have been recognized as a member of the top 100 ethically run companies in America.

• Does this tend to be just another way to enhance corporate images, or is it often motivated by a sincere interest in helping to solve pressing issues in the world?

As everything in life, it can be done for real or just to create an image that can benefits us. However corporations with this image are helping in some way to have a better trading and more ethical, even if it is just because they want to reinforce their image and increase their profits. I cannot tell that all corporations are evil and they just want to have more money because I do believe that there still exist managers that believe that we can have a better planet helping each other.

Reply
Daniela Velástegui
09/28/2011 16:36

1. Cooperative Economics:

• How is it defined or described, from at least these three viewpoints (or more): Political Economy (Marxist, the ‘Third Way’); Religious (Christian, Islamic); and Afro-American / Pan-African (Ujamaa)?
1.- “Local Cooperative Economics means just that--- an idea of local people cooperating with each other to provide for the essentials of living. Cooperative here means that people work together to develop self-reliant, locally-based and community controlled economies within a given bioregion. This could be a mixture of cooperative, employee-owned, and private-owned businesses.”
“No group can truly prosper without a strong economic base that creates jobs for its members. Some black churches still maintain some of the principles of the early self-help societies through “building funds” and social service organizations. But the emphasis that once was placed on entrepreneurial development and economic empowerment has been sidelined. The fourth principle of Kwanzaa, “Ujamaa” (cooperative economics), has as its goal “to build and maintain our own stores, shops, and other businesses and to profit from them together.” If the African-American community today made the same commitment and focused the same energies on economic development that it did yesterday in the fight for civil rights, our economic empowerment could be fully realized.”
“The economy is the complex set of relationships that people use to provide themselves with the goods and services they need to live meaningful lives in their communities. Of key importance to their lives being meaningful is the ability of people to make a contribution to meeting human need and an ability to influence and help shape how our needs are met. Also of vital importance to meaningful human life is the fostering of relationships within families and communities. Co-operation is an approach to organizing that complex set of relationships in a manner that respects the dignity of people and has confidence that, with few exceptions, people want to make the world a better place. ‘The economy’ ought to allow them to do that. The co-operative values and principles spell out the co-operative approach to creating that complex set of relationships within the economy, in a way that at the same time fosters personal human development and families and communities. A co-operative economy would: produce goods and services that meet human need, provide meaningful roles and personal development for people, nurture the families, communities and society.”

List some of the many practical forms that cooperative economics has taken so far.

We need to help build up local cooperative economic newtorks that help to create local people's banks to reinvest the capital. Capital can be "turned" in a local community to revitilize the local economy.
Agricultural Collectives
One type of cooperative is agricultural. Agricultural cooperatives can take a number of forms. Some act as buying groups to obtain needed supplies for members. Others work to collectively sell the goods their members have produced, while still others allow members to access specific services that might otherwise be to expensive to obtain. Like many similar organizations, agricultural cooperatives work to benefit the whole of their membership by utilizing the power of the group.
Childcare Collectives
Childcare cooperatives offer perspective on another core value of cooperative life, member control. In a childcare cooperative, parents are in control of the policies and rules that govern the type of environment their children experience. This increase in direct parental involvement is expressed through the election of a democratically chosen board which can then acquire professional staff to run the daycare according to member demands and requirements.
Credit Unions
One of the more well-known varieties of cooperative is the credit union. Credit unions exist to provide favorable terms for members seeking financial services, as well as an alternative to a banking system that was perceived as unresponsive to the concerns of individual depositors. While many credit unions are based off vocational, theological or other associations among their members, some, especially in economically downtrodden areas, work to re-energize the area they inhabit by pouring resources back into the community.
Worker Cooperatives
In this type of cooperative, workers act as both labor and management. By owning the company they are employed in, workers can use collective, democratic decision making techniques to institute the rules and policies under which they must work.
Utility Cooperatives
Utilities can be an expensive proposition for some, especially those in rural areas where great distances can make infrastructure investments prohibitively expensive. Utility cooperatives can lower individual cost

Reply
Mauricio Chávez
09/28/2011 21:10

3. Teamwork within a Business Environment:
A. Cite cases illustrating the main advantages of teamwork in at least three areas: decision-making; administration; and manufacture?

1)Helping employees, mangers and departments work better together has numerous benefits. Rather than thinking of team development in the workplace as special intervention, it should be seen more as helping the company to work to its fullest potential. Teamwork is at its essence- a set of individual behavioral choices that workers make in their own best interest, and for their own satisfaction, security and survival.
Article Source: http://EzineArticles.com/1488852

2)In early 1992, I began work with the management of a plastic plant. This non-union plant is a first-tier automotive supplier. Early assessment indicated a committee of salaried, hourly and management people had been formed in the past year to develop a Suggestion System to increase employee involvement (EI). This had gone reasonably well and management, at the urging of its Customer, was seeking to increase the EI effort to be more team-oriented and self-directed. Within two months, we had a cross-functional Steering Committee made up of members of the original committee and some new volunteers. Together, we planned our strategy for guiding the process, providing training, fielding suggestions and implementing solutions. We trained 45 people in five modules of Interpersonal Communication, Meeting Facilitation, Conflict Management, Effective Teamwork and Team Problem Solving. Following that, the rest of the 300 employees were trained in two modules of Teamwork and Problem Solving.We were really cooking! Attendance was up, morale was up, cost saving ideas were increasing, and hourly employees were talking to customers and suppliers. (Renée Merchant, 1997)

3)Your team member's appraisal form should be structured to cover all the matters that they are accountable for. This includes the firm's purpose for being, the team's well-being, the firm's core values, personal and firm goals, self-development and being pro-active.
Your one-to-one meeting with team members is your opportunity to ascertain their aspirations for their future and how the firm can help. (Peter Sewel)

B. How are people motivated and rewarded when working in teams? How to avoid ‘freeloading’ by team members?

Employees are motivated because they have a better work enviroment within their work place, and that makes them to produce even more for the company. This aspect also motivate chiefs to rise the team salaries. While they are receiving those incentives, they search for a common goal, the goal of overcoming as a team.
We can avoid freeloaders by trying to engage this people in the theme that we are working, asking them their point of view about the topic, and if this person doesn't really want to work, we can apply sanctions if they do not even want to work in teams, but it would be better if they want to work with the team by him or herself.

C. What implications might this development have for international relations?

If teamwork works in a individual form, why not in a bigger instance? we can apply teamwork in international relations putting each country as a individual. Teamwork would help the whole world to look for same interests and this situation can stop the huge differences between developed and developing countries. This can create a better world.

6. Wikinomics / Macrowikinomics:

· Quote at least three definitions, and then write your definition in your own words.
1)a description of the way the relationship between businesses and markets has changed because of much greater involvement of customers and users directly with products or companies. This is a combination of the words 'wiki' and 'economics'.(Cambridge Dictionary)
2)According to Tapscott, Wikinomics is based on four ideas: Openness, Peering, Sharing, and Acting Globally. The use of mass collaboration in a business environment, in recent history, can be seen as an extension of the trend in business to outsource: externalize formerly internal business functions to other business entities. The difference however is that instead of an organized business body brought into being specifically for a unique function, mass collaboration relies on free individual agents to come together and cooperate to improve a given operation or solve a problem. This kind of outsourcing is also referred to as crowdsourcing, to reflect this difference. This can be incentivized by a reward system, though it is not required.

3)Wikinomics provides compelling evidence that the emerging 'creative commons' can be a boon, not a threat to business.

I think that wikinomics is a way of collaborating between lot of companies and people to achieve a common goal of development, is a way in which we can improve our social, business and every relation that we could have, and not even relations but every single aspect of the mankind.

Reply
Monserratte Arguello
09/28/2011 21:16

4 .Coopetition or Coopertition:

• First, what does “competition” mean in economics? How does this compare or contrast with the common use of “competition”, in sports and other fields.
Competition in business is a rivalry of two or more businesses that target the same customers. Business competition tends to result in increased efficiency as firms attempt to reduce expenses. On the negative side, competition may result in duplication of efforts.
In contrast, competition in other field is a testing of the intelligence, strength, speed, or some other ability of two or more people. Furthermore, A tournament is a competition involving a relatively large number of competitors, all participating in a sport or game. 1

• How is coopetition o coopertition defined? Give some concrete examples of what it has looked like so far in practice.
1. Cooperation between competing companies. Businesses that engage in both competition and cooperation are said to be in coopetition. Certain businesses gain an advantage by using a judicious mixture of cooperation with suppliers, customers and firms producing complementary or related products.
Investopedia Says:
2. Coopetition is thought to be a good business tactic between two businesses that can lead to expansion of the market and the formation of new business relationships. Coopetition is a form of strategic alliance and is common particularly in the computer industry between software and hardware firms. In this field, coopetition means settling on standards and developing products that compete with each other using those same standards.2 Nokia, Samsung, Sony Ericsson , LGand i-mobile are good examples of coopetition.3
• What problem was it created to solve, or what needs was is created to satisfy?
The competition was created to operationalize the different knowledge, skills and values so integral to the different interactions with human beings for life in the personal, social and laboral.la competition is the best strategy that allows companies to innovate their servivio or products.
1. http://business.yourdictionary.com/competition
2. http://www.answers.com/topic/coopetition
3. http://es.wikipedia.org/wiki/Competición_(deporte)
4. http://wiki.answers.com/Q/Any_example_of_company_that_is_doing_the_monopolistic_competition_in_the_market

6. Wikinomics /Macrowikinomics
• Quote at least three definitions, and then write your definition in your own words.
Experts believe that Wikinomics has the power to be bigger than industrial revolution or even the invention of computer. Soon, there will be huge world companies emerging and the current day Multinational Companies (MNCs) and large-scale corporations will have to re-think and adopt wikinomics ways. 1
Wikinomics describes a modern economic structure that will soon become the way of the business world, which is completely based on mass collaborations, sharing and transparency. Shunning the traditional style of working. 2
Wikinomics is a term that describes the effects of extensive collaboration and user-participation on the marketplace and corporate world.3 As well as others experts describe wikinomics as a change between businesses and markets because of much greater involvement of customers and users directly with products or companies. This is a combination of the words 'wiki' and 'economics. 4
Furthermore, according to Tapscott, Wikinomics is based on four ideas: Openness, Peering, Sharing, and Acting Globally. The use of mass collaboration in a business environment, in recent history, can be seen as an extension of the trend in business to outsource: externalize formerly internal business functions to other business entities. The difference however is that instead of an organized business body brought into being specifically for a unique function, mass collaboration relies on free individual agents to come together and cooperate to improve a given operation or solve a problem. This kind of outsourcing is also referred to as crowdsourcing, to reflect this difference. This can be incentivized by a reward system, though it is not required.5
That is why in my opinion wikinomics is the mass collaboration of people and companies around the world to achieve a common commercial goal.

• Cite some concrete examples of what wikinomics / macrowikinomics.
Wikipedia and Linux are two of the most popular Wiki-projects. Today these projects are bigger than most of the traditional companies. That is the power of Wiki to work in a global collaboration of many different individuals and entities, working on one common project.
Marketocracy.com investment is a website where some 70,000 people work in the creation of virtual portfolios. The results of the top 100 portfolios are used to guide the decisions of a mutual fund that usually exceed industry standards.
InnoCentive is a community that brings together scientists from around the globe to solve specific problems. The consumer goods gi

Reply
Cristina Martínez
09/28/2011 21:44

Cristina Martinez
2. Corporate Values / Principles:

• What specific place do corporate values, principles or philosophy have within the strategic planning process? How do they relate to the other elements of it?

*The operating philosophies or principles that guide an organization's internal conduct as well as its relationship with its customers, partners, and shareholders. Core values are usually summarized in the mission statement or in the company's statement of core values.
*Corporate values represent what your company stands for as a business operating in the marketplace, as a corporate citizen or employer, a community player, as well as its environmental commitment. Making sure all managers and employees understand and demonstrate those values are key to success.
*Corporate values are very important on a corporation strategic planning process because they help making decisions on the moment of allocating resources, defining priorities and pausing strategies regarding to people, environment etc.

• Look at the value statements of several corporations and make a list of the most common ones. Why do you think they concentrate on these particular values? What do they have to do with building a culture of peace?
Doing what they do, perfectly and as fast as possible
Innovation
Leadership.
Passion for the things they do.
The importance of the companies' integrity
Respect for the colleagues
Efficiency in their work
Teamwork, working together.
• Cite at least three companies about what benefit they obtain from having – and from acting in accordance to – clear, shared corporate values.
General Motors: Doing the right thing remains at the core of ethical business conduct, but it is no longer enough.
The Nestlé policy is to hire staff with personal attitudes and professional skills enabling them to develop a long-term relationship with the Company.
Nike: A company"s core philosophy has the power to influence, inspire, and challenge employees on a daily basis.
6. Wikinomics / Macrowikinomics:

- Quote at least three definitions, and then write your definition in your own words.

1. Wikinomics is a term that describes the effects of extensive collaboration and user-participation on the marketplace and corporate world.
2. Macrowikinomics: Is the application of wikinomics and its core principles to society and all of it institutions.
3. "The catchword of today is "Wikinomics", referring to the internet encyclopedia Wikipedia and the way it changed the business model for encyclopedias. The central ideas of such a "Wikinomy" are openness as regards membership and information as well as joint and decentralized production ("peering")".(Reichel)
4. "Macrowikinomics underscores the critical importance of transparency,participation and collaboration among business, government and citizens in addressing global challenges like corruption." (Boswell)
On my point of view Wikinomics refers to the means in which social networks and internet have changed the way of producing and commercializing things around the world according to customer’s preferences. On the other hand Macrowikinomics goes a step further than wikinomics creating a global tendency in production and marketing.

• Cite some concrete examples of what wikinomics / macrowikinomics.
In their 2007 bestseller, Wikinomics Don Tapscott and Anthony Williams showed the world how mass collaboration was changing the way businesses communicate, create value, and compete in the new global marketplace. Many of the institutions that have served us well for decades or centuries seem stuck in the past and unable to move forward. And yet, in every corner of the globe, a powerful new model of economic and social innovation is sweeping across all sectors-one where people with drive, passion, and expertise take advantage of new Web-based tools to get more involved in making the world more prosperous, just, and sustainable. Tapscott and Williams show that in over a dozen fields-from finance to health care, science to education, the media to the environment-we have reached a historic turning point: cling to the old industrial-era paradigms or use collaborative innovation to revolutionize not only the way we work, but how we live, learn, create, govern, and care for one another.
• What problems is it solving, or what needs is it satisfying? Can it go further?
Some time ago, have updated information or keep on touch with people that were in other country was kind of difficult, nowadays thanks to internet and social network can keep us updated with last minute information. With Wikinomics and Macrowikinomics movement people is able to have information on real time all over the world.

• What does it mean that we need to “reboot all the old models, approaches and structures, or risk institutional paralysis or even collapse.”

The universe is on constant change, not

Reply
Monserratte Arguello
09/28/2011 21:48

4 .Coopetition or Coopertition:

• First, what does “competition” mean in economics? How does this compare or contrast with the common use of “competition”, in sports and other fields.

Competition in business is a rivalry of two or more businesses that target the same customers. Business competition tends to result in increased efficiency as firms attempt to reduce expenses. On the negative side, competition may result in duplication of efforts.

In contrast, competition in other field is a testing of the intelligence, strength, speed, or some other ability of two or more people. Furthermore, A tournament is a competition involving a relatively large number of competitors, all participating in a sport or game. 1

• How is coopetition o coopertition defined? Give some concrete examples of what it has looked like so far in practice.

1. Cooperation between competing companies. Businesses that engage in both competition and cooperation are said to be in coopetition. Certain businesses gain an advantage by using a judicious mixture of cooperation with suppliers, customers and firms producing complementary or related products.

Investopedia Says:
2. Coopetition is thought to be a good business tactic between two businesses that can lead to expansion of the market and the formation of new business relationships. Coopetition is a form of strategic alliance and is common particularly in the computer industry between software and hardware firms. In this field, coopetition means settling on standards and developing products that compete with each other using those same standards.2 Nokia, Samsung, Sony Ericsson , LGand i-mobile are good examples of coopetition.3

• What problem was it created to solve, or what needs was is created to satisfy?

The competition was created to operationalize the different knowledge, skills and values so integral to the different interactions with human beings for life in the personal, social and laboral.la competition is the best strategy that allows companies to innovate their servivio or products.

1.http://business.yourdictionary.com/competition
2.http://www.answers.com/topic/coopetition
3.http://es.wikipedia.org/wiki/Competición_(deporte)
4.http://wiki.answers.com/Q/Any_example_of_company_that_is_doing_the_monopolistic_competition_in_the_market

6. Wikinomics /Macrowikinomics

• Quote at least three definitions, and then write your definition in your own words.

Experts believe that Wikinomics has the power to be bigger than industrial revolution or even the
invention of computer. Soon, there will be huge world companies emerging and the current day Multinational Companies (MNCs) and large-scale corporations will have to re-think and adopt wikinomics ways. 1

Wikinomics describes a modern economic structure that will soon become the way of the business world, which is completely based on mass collaborations, sharing and transparency. Shunning the traditional style of working. 2

Wikinomics is a term that describes the effects of extensive collaboration and user-participation on the marketplace and corporate world.3 As well as others experts describe wikinomics as a change between businesses and markets because of much greater involvement of customers and users directly with products or companies. This is a combination of the words 'wiki' and 'economics. 4

Furthermore, according to Tapscott, Wikinomics is based on four ideas: Openness, Peering, Sharing, and Acting Globally. The use of mass collaboration in a business environment, in recent history, can be seen as an extension of the trend in business to outsource: externalize formerly internal business functions to other business entities. The difference however is that instead of an organized business body brought into being specifically for a unique function, mass collaboration relies on free individual agents to come together and cooperate to improve a given operation or solve a problem. This kind of outsourcing is also referred to as crowdsourcing, to reflect this difference. This can be incentivized by a reward system, though it is not required.5

That is why in my opinion wikinomics is the mass collaboration of people and companies around the world to achieve a common commercial goal.


• Cite some concrete examples of what wikinomics / macrowikinomics.

Wikipedia and Linux are two of the most popular Wiki-projects. Today these projects are bigger than most of the traditional companies. That is the power of Wiki to work in a global collaboration of many different individuals and entities, working on one common project.

Marketocracy.com investment is a website where some 70,000 people work in the creation of virtual portfolios. The results of the top 100 portfolios are used to guide the decisions of a mutual fund that usually exceed industry standards.

InnoCentive is a community that brings together scientists from around the globe to solve specific problems. The con

Reply
Laura Gomez
09/28/2011 22:19

4. Coopetition or Coopertition:
• First, what does “competition” mean in economics? How does this compare or contrast with the common use of “competition”, in sports and other fields.

In economics, competition is the opposite of monopoly. Competition exists in the market in which we can find a large number of sellers and buyers for the same good or service, so that each one of them has a negligible influence on the market price. In contrary, in other fields competition refers to the fight or contest between two or more persons for something in particular. In sports for example, competition implies classification: winners and losers, in which winner get a trophy, a prize or a recognition. In economics, economic agents are inherent to each other, in the opposite winners and losers in sports are not.
How is coopetition o coopertition defined? Give some concrete examples of what it has looked like so far in practice.
• Coopetition o cooperetion is a new word use to define the cooperative competition. It is a business strategy in which two rival competing companies help each other so they can both benefit. This two companies can go to market in one space, and be competitive in another space. They work together in parts of business in which they believe they can share common costs, and they don’t have any competitive advantage. For example the arrangement between PSA Peugeot Citroën and Toyota to share components for a new city car - simultaneously sold as the Peugeot 107, the Toyota Aygo, and the Citroën C1 - qualifies as coopetition. In this case, companies save money on shared costs while remaining fiercely competitive in other areas. Another example is the soft drinf industry success, Coke and Pepsi, together with their associate bottlers, they share costs in procurement, production, marketing and distribution.
What problem was it created to solve, or what needs was is created to satisfy?
• It was created in order to change the mentality that has been present in the world of economy from many years ago in which the rival companies though that war between them has the best way to compete, and that the bad things that happened to one company were positive for its rival. So, the needs form both companies were able to be satisfied and at the same time, the needs of customers offering the bests products or services.
Is this really a sign of a new spirit of cooperative economics, or just a new, improved way to compete? Cite at least one author who defends each point of view, and then give your own opinion.
• “Losing and winning are two extremes by which businesses are often measured. Brandenburger (Harvard Business Sch.) and Nalebuff (Yale Sch. of Management) argue that most businesses and their transactions lie somewhere between the two poles. Their liberating message is that your competitor does not have to fail for you to win. Conversely, you don't have to fail either. Your failure, in fact, can hurt your competitor. It is better, the authors assert, to have both cooperation and competition.”
Bob Tarzey, Quocirca autor from the article “ The ugly truth about coppetition” states that coopetition is not possible “ Nasty world, necessary evil”. Giving the example of two companies, and concluding in the following way: “Still, it is unlikely that Oracle and IBM are going to be seen walking down the street holding hands. The actually process of making Oracle’s newly acquired diverse range of business applications work on IBM’s application server will fall to third parties. The announcements is not just good news for customers who do not want change forced upon them, but for the VARs and integrators who will end up making it all work on the ground. Plenty of work for the coopetition brokers then.”
As far as I am concerned, coopetition is a new spirit of economics in which companies realize that working together, everyone gets more benefits. So they base economy in cooperation and mutualism. It has already worked in some of the most successful companies of the world; it just has to be used correctly.
6.-Wikinomics / Macrowikinomics:

• Quote at least three definitions, and then write your definition in your own words.

“Wikinomics is a term that describes the effects of extensive collaboration and user-participation on the marketplace and corporate world.”
“The theory and practice of mass collaboration using electronic communications.”
a description of the way the relationship between businesses and markets has changed because of much greater involvement of customers and users directly with products or companies. This is a combination of the words 'wiki' and 'economics'.

I could define wikinomics as a new model of the economy which is based on collaboration using information technology.
• Cite some concrete examples of what

Reply
Vanessa Kattan
10/05/2011 15:40

4. Coopetition or Coopertition:

• First, what does “competition” mean in economics? How does this compare or contrast with the common use of “competition”, in sports and other fields.
Competition, in economics refers to the rivalry in supplying or acquiring an economic service or good. Sellers compete with other sellers, and buyers with other buyers. In its perfect form, there is competition among many small buyers and sellers, none of whom is too large to affect the market as a whole; in practice, competition is often reduced by a great variety of limitations, including copyrights, patents, and governmental regulation, such as fair-trade laws, minimum wage laws, and wage and price controls. It differs from competition in sports and some other fields majorly because the competition in economics aims to produce economic benefits for the enterprises, while in other fields it sometimes seeks for the recognition of one as the best in a specific subject, sometimes intellectual sometimes physical; this kind of competition often rewards the winner with minor prices that are not the main motivation for contestants.

• How is coopetition o coopertition defined? Give some concrete examples of what it has looked like so far in practice.
Coopetition or Coopertition is a neologism coined to describe cooperative competition. Coopetition occurs when companies work together for parts of their business where they do not believe they have competitive advantage and where they believe they can share common costs. In this case, companies save money on shared costs while remaining fiercely competitive in other areas.
Coopetition is thought to be a good business tactic between two businesses that can lead to expansion of the market and the formation of new business relationships. Coopetition is a form of strategic alliance and is common particularly in the computer industry between software and hardware firms. In this field, coopetition means settling on standards and developing products that compete with each other using those same standards.
a) For instance, the arrangement between PSA Peugeot Citroën and Toyota to share components for a new city car - simultaneously sold as the Peugeot 107, the Toyota Aygo, and the Citroën C1 - qualifies as coopetition
b) StandardFilestream now performs read-buffering, dramatically speeding up some operations like “Object compileAll” (2x improvement) as well as various other operations (scanning change lists etc). This change was taken from Squeak.

• What problem was it created to solve, or what needs was is created to satisfy?
It was created to increase the profits of both companies by reducing the competition and in a sort of way creating a strong “strategic alliance” between both companies in coopetition where they fuse their best tactics, technology, strategies and products.

• Is this really a sign of a new spirit of cooperative economics, or just a new, improved way to compete? Cite at least one author who defends each point of view, and then give your own opinion.
In my personal opinion, I think that it is a mixture of both of them. Coopetition or Coopertition is both, a new improved way to compete, as well as a new spirit of cooperative economics.

Reply
Vanessa Kattan
10/05/2011 15:41

7. Social Entrepreneurship:

• Quote at least three definitions of social entrepreneurship, social entrepreneur, and/or social enterprise, and then write your own definition in your own words.
a) Social entrepreneurs are individuals with innovative solutions to society’s most pressing social problems. They are ambitious and persistent, tackling major social issues and offering new ideas for wide-scale change. Rather than leaving societal needs to the government or business sectors, social entrepreneurs find what is not working and solve the problem by changing the system, spreading the solution, and persuading entire societies to take new leaps.
b) Sally Osberg and Roger Martin write: Our view is that a clearer definition of social entrepreneurship will aid the development of the field. The social entrepreneur should be understood as someone who targets an unfortunate but stable equilibrium that causes the neglect, marginalization, or suffering of a segment of humanity; who brings to bear on this situation his or her inspiration, direct action, creativity, courage, and fortitude; and who aims for and ultimately affects the establishment of a new stable equilibrium that secures permanent benefit for the targeted group and society at large.
c) Social entrepreneurship is the art of creating a socially responsible business that aims to generate profit, while solving social and environmental problems. Social entrepreneurs start and run social enterprises – commercial businesses that often come with a “triple bottom line” mandate. The triple bottom line refers to people, profits, and the planet. TBL implies that businesses can and ought to be run in a financially, socially, and environmentally responsible manner.
d) In my opinion, social entrepreneurship is recognizing a problem and using entrepreneurial organization and management to change. Social entrepreneurship assesses success with profit impact it has in society.

• Give three concrete examples of what it has looked like so far in practice.
a) Founded in 1976 by Dr. G. Venkataswamy, Aravind Eye Care System today is the largest and most productive eye care facility in the world. From April 2007 to March 2008, about 2.4 million persons have received outpatient eye care and over 285,000 have undergone eye surgeries at the Aravind Eye Hospitals at Madurai, Theni, Tirunelveli, Coimbatore and Puducherry. Blending traditional hospitality with state-of-the-art ophthalmic care, Aravind offers comprehensive eye care in the most systematic way attracting patients from all around the world.
b) SKS believes that access to basic financial services can significantly increase economic opportunities for poor families and in turn help improve their lives. Since inception, SKS has delivered a full portfolio of microfinance to the poor in India and we are proud of our current outreach. As a leader in technological innovation and operational excellence, SKS is excited about setting the course for the industry over the next five years and is striving to reach our goal of 15 million members by 2012.
c) Amul has been a sterling example of a co-operative organization’s success in the long term. It is one of the best examples of co-operative achievement in the developing economy. The Amul Pattern has established itself as a uniquely appropriate model for rural development. Amul has spurred the White Revolution of India, which has made India the largest producer of milk and milk products in the world.

• Once again, is this just another way to enhance corporate images, or is it motivated by a sincere interest in helping to solve pressing issues in the world?
I personally think there is a combination of those two types of interest : in one side the good interest to help solve pressing issues in the world, and in the other side, the interest companies have to improve their social image. It just depends on companies on how to use social entrepreneurship.

• What is meant by the phrases “double bottom line” and “triple bottom line”?
It is common to hear a business person speak about the "bottom line" as an excuse for saying "no" to a possibility. The "bottom line" is about money or the return on investment: how much something will cost compared to how much it will generate. Sometimes the "bottom line" is used to explain why a company makes a choice that may seem to ignore social benefits or virtues. Closing a school because of budget shortfalls may be based on the "bottom line," even though it forces the students to travel outside of their neighborhood and attend schools in more crowded classrooms, for example. The "double bottom line" (2BL) considers both financial and social consequences before arriving at a business decision. It is also known as socially responsible investment.
Triple Bottom Line (TBL) is a metric for a corporations social, environmental, and economic perf

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Vanessa Kattan
10/05/2011 15:44

6. Wikinomics / Macrowikinomics:

• Quote at least three definitions, and then write your definition in your own words.
a) Wikinomics is a term that describes the effects of extensive collaboration and user-participation on the marketplace and corporate world. Don Tapscott and Anthony D. Williams popularized the term in their book, Wikinomics: How Mass Collaboration Changes Everything , published in December 2006. The word itself is constructed from wiki (a server program that allows users to collaborate on a Web site) and economics.
b) According to Diane Frank, president of the Canadian Veterinary Association, Wikinomics is a new force or movement that is bringing people together on the net to create a giant brain (mass collaboration). Linux, one of the world’s leading operating systems, was developed by the largest and most sophisticated software development community in the world. Linux has no employees, stock options, or corporate campuses.
c) According to Wikinomics.com, Wikinomics explains how to prosper in a world where new communications technologies are democratizing the creation of value.
d) According to me and to what I’ve read, is a new economic model based in collaboration, it suggests that having partners is better than having competitors.

• Cite some concrete examples of what wikinomics / macrowikinomics.
a) The story of Goldcorp, a Canadian gold-mining company — a business about as unlike a Silicon Valley start-up as opera is unlike Green Day. Desperate for ways to find new places to drill, Goldcorp did the unthinkable for a mining company: It posted all its proprietary data on the Internet and let anyone interpret it for possible drilling targets. Prize money was promised.
b) Geek Squad, the computer fix-it company now owned by Best Buy, has an open management model. It pretty much lets employees run the company and design products by collaborating over the Net, sometimes while playing an online game called Battlefield 2. It's a major reason the company has grown so quickly.
c) Companies are testing these waters in lots of ways. When Procter & Gamble is looking for a molecule that takes red wine off a shirt or absorbs smells in a diaper, it no longer just relies on internal R&D. It puts those requests out on a site called InnoCentive. Scientists around the world can see the challenge, work on a solution and sell it to P&G. Again, the costs of working outside the company are minimal.

• What problems is it solving, or what needs is it satisfying? Can it go further?
Web approach may solve worldwide problems. One of the main benefits is that it protects the home country employer from corporate tax obligations that would otherwise be triggered in the host country. It can also provide assurance for the host country as to the responsibilities of the host country during the assignment, from a rewards and recognition perspective, benefits perspective, and overall assignment cost absorption perspective. On balance, however, wikinomics offers profound social benefits, including the opportunity to broaden access to science and knowledge, impose greater transparency on financial markets, accelerate the invention and adoption of green technologies, and help make today's leaders in business and government accountable for delivering outcomes that enhance well-being around the world.

• What does it mean that we need to “reboot all the old models, approaches and structures, or risk institutional paralysis or even collapse.”
It means that in order to change our probably terrible future and avoid it from collapse, we have to start by changing the ancient models, structures and approaches rooted in the society.

• Where do you think this mass phenomenon might lead in the future?
This mass phenomenon would definitely change our society to a collaborative one where every single human being takes a part in developing it. New models specially designed for improving people’s life style would be available for everyone.

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    Ernesto JUN Santos

    A University professor, a global educator, a leather artist, and a photographer.

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