Saturday, October 20, 2012

Week 6: Hierarchies I: Strategy Formation in Firms


  1.    Choose a firm on which you have data, for instance through a recent annual sustainability report. Analyse the underlying society-nature paradigm of this firm. [it is useful to substantiate your analysis with quotes from the report or website(s)]
  2.    Give a well-argued assessment of the extent to which this firm, in your opinion, contributes to the sustainable development of the larger system of which this firm is a part.

For this assignment, I chose Heineken International, with more focus on Heineken NV.
Heineken's slogan is ''Brewing a Better Future'' represents the objective it has to become the World's greenest brewery (sustainable)by 2015. According to the annual report, it seems (is alleged) that they have been progressing according to their established plans to progress in the triple bottom line.  From my viewpoint, I believe this firm possesses an ''Environmental Protection'' paradigm . where the ''private interest government'' form of coordination is obvious
Taking a look at Heienekn NV, '' Heineken cares'': as an alcohol producing industry, it is engaged in many campaigns and have a responsible advertising policy, even though the alcohol industry was given responsibility for regulating its own advertising and promotional activities through their own ''Committee for Advertising Rules'' and so far not controlled by legislation, government sanctions are present if violation occurs.On a local system boundary, it seems that Heineken NV is quite bound to those regulations, but that would not be the case on other countries, for instance in Russia (according to Andrei; a Dutch-Russian classmate) Heineken commercials are there on T.V. throughout the day!

On the Planet aspect '' Green Brew'' and ''Green Commerce'': Heineken gives big focus at present on renewable energy ''Wind Turbines'' and that took place after getting a government subsidy on it. Meanwhile, on other aspects as reducing the carbon and water footprint, they allege on their report to become close to their targets, but the progress is not significant according to their figures (2009-2011) and still water use does not follow a well- regulated resource management strategy, maybe it will if the government provides some regulation on it.

(Taken from 2011 sustainable report)



taken from 2009 sustaianbility report


It is most definitely unreasonable to assess an organization's  level of sustainability according to what has been  mentioned in their sustainability reports , which are designed to be a mean of attractive publicity. Generally speaking, Heineken is a profit- oriented organization, with shareholders fully aware that becoming more sustainable guarantees competitive advantage, rather than being a core value. The variation of how sustainability is attained if we take the  the planet aspect as an example, it is clear how Heineken  complies to the government regulations of each country in which it operates ( if we make a comparison between 2011 sustainability report of Netherlands and Egypt, there's even no need to get into details to make a point….. for a  132 –page Dutch report full of numbers, charts and statistics and the 4- page Egyptian report, referred to as ''Factsheet''!!)
Another comparison between the Dutch, Egyptian and Nigerian reports regarding reduction of water consumption, the goals set are significantly different, showing more action and responsibility in the Netherlands, not to mention that the Dutch breweries are the world's biggest!!

Egyptian figures (2011)


Nigerian Figures (2011)


Dutch figures (2011)


If Heineken truly aspires to become the world's greenest brewer by 2015, some unified goals regarding energy, water consumption, …etc  among all producing countries should be established.
On narrowing the system boundary into Netherlands,  Heineken seems to achieve noticeable progress in the three cornerstones of sustainability, this is a quote  written by a Heineken outsider and figure of the Dutch government, might be regarded as a fair support to that:
 Ton Rombouts, Mayor Of ‘S-Hertogenbosch in 2009's sustainability report:
“Sustainability and corporate governance are engrained in the company. From the time the company opened its doors in 's-Hertogenbosch in 1958, Heineken has been strongly involved in the economic and social development of the town. As far as sustainability is concerned, the company has successfully been the driving force behind the national flagship project 'Sustainable revitalisation of the Rietvelden Industrial estate', which included a focus on soil sanitation and the structural protection of industrial water collection. The company is also very committed and dedicated to improving the links between education and the business world. With the brewery's support, many small and large events have blossomed into image-defining events, and great meeting places for people from the region and beyond, such as Jazz in Duketown, Burgundian ’s-Hertogenbosch, Martime ’s-Hertogenbosch, and last but not least, the annual Carnival. With the biennial Brewery Cultural Award for the city of ’s-Hertogenbosch, the company reinforces its connection with cultural life in the city. It gives young professional artists an opportunity to develop. The star in the Heineken logo is clearly casting its rays on the development of the city.”  

Refrences:
Heineken Sustainability reports:
1) Heineken NV 2011:
2)Heineken Egypt 2011:


3) Heineken Nigeria 2011:

4) Heineekn NV 2009:






Wednesday, October 10, 2012

Week 5: Networks



Q:Think up two social networks of which you are currently  a member. Analyze the structure of each of these networks, make clear what the dependency relationships are, and what coordinative mechanisms are used.


       e.g.1: The first social network I choose is the faculty scouts team I was a member of, at my home University,  Alexandria University in Egypt. I chose this example as  I was a previous member in it and hence, familiar with .
       
  Actors (members):
·    
  •   Students (scouts): all undergraduates, no hierarchy is within these actors.
  • ·  Scouts team supervisior: this position is usually given to the lowest rank in the Faculty members hierarchy;  teaching assistants,  (who is either an MSc student / degree holder or a  PhD student), they are the ''team leaders'', they usually have very friendly and personal relationships with the scouts ; owing to his/her young age.
  • ·    Chief of the scouts team: a faculty teacher : (the financial manager of the scout), all activities are to take place after his approval.
  • ·  Vice Dean for student affairs: the highest rank in the university administration that has a direct  connection with students and between students and administration.

the next members are indirect members of the scouts network regarding contact,
but that does not exclude them from the network as the students are dependent
on them in financial terms and in case of complaints (if passed from a lower to a higher position)
  •      Dean of Faculty of Science
  • ·    Vice President of University for student affairs
  • ·    President of Alexandria University

Network Structure:
from my point of view , I see the structure of this network as the ''Clique with bridging a structural hole '' , type with no centrality and the faculty dean as the bridge; since he's in charge of receiving the faculty's budget in general with the scout's budget implicitly.

Coordination mechanisms:
For this assignment, I will be using the coordination mechanisms based on the book: Mintzberg's Structure in Fives : Designing Effective Organizations.
Mintzberg 1983


Several coordination mechanisms could be found in this network:
·  Mutual adjustment: between scouts
·  Direct supervision: from scouts' chief on both; scouts and scouts' supervisor
· Standardization: (of work processes): there is an already set task description or ''guidelines' assigned to each actor in this network . These guidelines were put by members of the university administration.
Dependancy Relationships:
Financial dependency of  the University to the scouts activities is clear in this network, also dependency on the chief for approval on their activities


e.g.2: ''The Economic club of Washington, D.C.,''
·       An NGO
·       Organized in 1986, the Economic Club of Washington was established in recognition of the unique and critical role that Washington plays in the national and world economies and because of the Washington metropolitan area's increasing economic diversity and importance as a center of business activity.
Beginning with a membership of 100 of the area's top business and professional leaders, the Club was a immediate success and, subsequently, its membership was expanded to over 500 men and women. Established as a 501(c)(3) nonprofit corporation, the Club has two primary purposes.  First, it offers a forum in which prominent business and government leaders can express their views on the most important economic issues of the day and how those issues affect the region, the Nation, and the world. Second, and equally important, it generates and promotes a greater sense of community among business leaders, government officials, and members of the diplomatic corps. http://economicclub.org/page.cfm/go/about-us
        
          Actors
  • ·       Officers

President
                 Vice president
                 Vice president – programs
                 Vice president - membership
                 Vice president – education
                 Vice president - finance
                 Nominating co-chair
                 Nominating co-chair
                 Vice president – audit
                 Secretary
                 General counsel
                  Executive director
  • ·       Committee Chairs : Resource Development Committee
  • ·       Task Force: Grants
  • ·       Board of Directors
  • ·       Grantees (Beneficiaries)
Network Structure
from my own point of view , I see the structure of this network as the ''Tightly coupled network '' , type with no centrality.

Dependancy Relationships:
 This club is involved in provision of many community services; as charities,      scholarships, grants…so grantees of such services are dependant 

References

The Economic club of Washington, D.C, official website: http://economicclub.org/page.cfm/go/about-us

Mintzberg, Henry 1983. Structure in fives: designing effective organizations. Prentice Hall 1983. Business and Economics.