Sonja Kindermann

Innovative Approaches to Determine Corporate Value Creation: Michael E. Porter's Shared Value Concept and Jed Emerson's Blended Value Theory As New Promising Business Models Sonja Kindermann

This book exemplifies innovative approaches of corporate value creation on the basis of Michael Porter's Shared Value concept and Jed Emerson's Blended Value theory. First, the Shareholder Value strategy is described as the mainstream approach of today's business in order to compare solely profit oriented business strategies with innovative value creation approaches. The second part of the book explores Porter's three distinct ways of Shared Value creation, re-conceiving products and markets, redefining productivity in the value chain and enabling cluster development. His theory is examined whether it is applicable in real world application. This is done by analyzing Nestlé's operational strategy in the marketing of nutritious products in Latin America from the perspective of the three methods of Shared Value creation. In the third part of the book Emerson's Blended Value approach is brought in. His 'Blended Value Proposition' pursues a similar idea as Porter, except it focuses on the impact of financial markets on sustainable growth, rather than actual business activities themselves. Emerson's argumentation about the impact of microfinance and investments in social enterprises on sustainable profit generation is illustrated in more detail by using the example of Calvert Foundation as a sustainable investment fund. The book closes with a critical appraisal of both approaches.