Learn how small businesses can drive organizational success and create shared value by investing in their local cluster. SHRM-SCP exam question explained.
Table of Contents
Question
A small marketing company with a single location is looking to enhance organizational success while creating shared value. Where should it focus efforts in order to be most successful in that pursuit?
Answer
Investing in the local cluster to strengthen local businesses and infrastructure. The best way for an organization, especially a small one, to enhance success while creating shared value is to invest in the local cluster. By improving local infrastructure and associated organizations, shared value can be created, benefiting both the company and the community.
Explanation
To be most successful in enhancing organizational success while creating shared value, a small single-location marketing company should focus its efforts on investing in the local cluster to strengthen local businesses and infrastructure.
The local cluster includes the company’s geographic location as well as interconnected businesses, suppliers, service providers, and associated institutions in that area. By directing resources to improve local roads, schools, utilities, and supporting local suppliers and related businesses, the company can simultaneously boost its own growth and productivity while uplifting the surrounding community.
This shared value approach recognizes that a business’s success is closely tied to the health of the community in which it operates. Targeted investments in the local cluster create a virtuous cycle – a stronger local economy and improved infrastructure enhance the company’s operating conditions and competitiveness. At the same time, the company’s growth and profitability enable further investment back into the local cluster.
For a small organization with limited resources, focusing efforts on the local cluster allows for a tangible positive impact that directly benefits the company. It leverages local knowledge and relationships for maximum effectiveness. Supporting local education develops a skilled labor pool. Patronizing local suppliers keeps more money circulating in the community. Infrastructure investments make doing business easier and more efficient.
In contrast, a small business would be hard-pressed to have an impact with broad, unfocused CSR or philanthropy efforts. Keeping efforts local creates the most shared value and enhances organizational success.
SHRM Senior Certified Professional (SHRM-SCP) certification exam practice question and answer (Q&A) dump with detail explanation and reference available free, helpful to pass the SHRM-SCP exam and earn SHRM-SCP certification.