JSW Steel: A Shared Value Approach at Vijayanagar Steel Plant

內容大綱
By 2015, JSW Steel Limited had established itself as one of India’s leading steel producers. Since 2002, it had increased its capacity from 1.6 million tons per annum (MTPA) to 18.0 MTPA at a compound annual growth rate (CAGR) of 18 per cent; increased production from 1.30 MTPA to 12.36 MTPA at a CAGR of 19 per cent; and increased market capitalization by 59 times, from US$79.26 million to US$4.676 billion. The company’s innovative shared-value approach at its Vijayanagar plant contributed significantly to its success. The plant set an example of how to integrate social and environmental challenges into a business core and create an integrated value chain with many benefits. However, an adverse economic performance in financial year 2015–16 and a gloomy forecast for the steel industry in the next few years raised questions for top management about whether to continue with the shared-value and corporate social responsibility approaches.
學習目標
This case is suitable for graduate and executive education courses in general management and strategy and other post-graduate courses related to social business, social entrepreneurship, and competitiveness. The primary learning objectives are to<br><ul><li>explain the basic idea of a shared-value approach and how this approach leads to social impact while generating economic gains;</li><li>summarize the fundamental differences between philanthropy, corporate social responsibility, and creating shared value;</li><li>review the design and implementation of a company’s shared-value approach over time to appreciate how it leads to competitive advantage; and</li><li>use the business model framework as a tool and technique for communicating, reviewing, and reinventing a company’s business model.</li></ul>
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