Patrick Adriel H Aure | De La Salle University (original) (raw)
Uploads
Papers by Patrick Adriel H Aure
DLSU Business Notes and Briefings, Mar 2014
For-profit social enterprises must adopt and implement appropriate business strategies to keep th... more For-profit social enterprises must adopt and implement appropriate business strategies to keep themselves viable. However, existing business-strategy models and frameworks are based on assumptions that do not consider the special circumstances of for-profit social enterprises.
The first assumption, eloquently articulated by Nobel Prize winner Milton Friedman (1970), is that the primary goal of business is to generate maximum profit for its owners. The second assumption, as exemplified by Michael Porter‟s competitive strategy, is that doing business is a largely zero-sum game, i.e. one player‟s gain can be made at the expense of another player‟s loss. These assumptions run counter to the raison d'etre of social enterprises, which seek to balance, if not
reconcile, the interests of multiple stakeholders.
Fortunately, social enterprises can adopt alternative strategies
that do not attempt to „kill‟ or „eliminate‟ competition but that, instead, seek to create value through creative, collaborative, and community-oriented approaches.
DLSU Business Notes and Briefings, Mar 2014
For-profit social enterprises must adopt and implement appropriate business strategies to keep th... more For-profit social enterprises must adopt and implement appropriate business strategies to keep themselves viable. However, existing business-strategy models and frameworks are based on assumptions that do not consider the special circumstances of for-profit social enterprises.
The first assumption, eloquently articulated by Nobel Prize winner Milton Friedman (1970), is that the primary goal of business is to generate maximum profit for its owners. The second assumption, as exemplified by Michael Porter‟s competitive strategy, is that doing business is a largely zero-sum game, i.e. one player‟s gain can be made at the expense of another player‟s loss. These assumptions run counter to the raison d'etre of social enterprises, which seek to balance, if not
reconcile, the interests of multiple stakeholders.
Fortunately, social enterprises can adopt alternative strategies
that do not attempt to „kill‟ or „eliminate‟ competition but that, instead, seek to create value through creative, collaborative, and community-oriented approaches.