Discussion Board 4G Model After Watching The Required Video
Discussion Board 4g Modelafter Watching The Required Video Profits
Discussion Board - 4G Model After watching the required video “Profit’s not always the point” by Harish Manwani and reading the article “Samsung delays launch of Galaxy Fold After Screen Failures” by Sam Kim and Mark Gurman, discuss the 4G Model and the purpose firms must have beyond the products they sell or the service they provide. Pretend you are the executive officer at Samsung responsible for not releasing the Galaxy Fold, what would be your response to shareholders and customers regarding the failed product. Use the economic theory and concepts in chapter one to support your response. Remember the idea is to maximize the wealth of shareholders but also be socially responsible to the community that must sustain your product. 500 Words / APA Format
Paper For Above instruction
Introduction
The modern business environment emphasizes that companies must go beyond profit generation to encompass social responsibility and value creation for all stakeholders. The 4G Model—focusing on Goods, Growth, Governance, and Giving—serves as a comprehensive framework guiding firms to operate ethically while pursuing economic success. This paper discusses the application of the 4G Model in the context of Samsung's Galaxy Fold launch failure and presents an appropriate response to stakeholders from an executive perspective, grounded in economic theory and corporate social responsibility principles.
The 4G Model and Business Purpose
The 4G Model extends traditional profit-focused perspectives by emphasizing that firms are responsible not just for their products but also for their societal impact. The ‘Goods’ component underscores offering quality products, while ‘Growth’ relates to sustainable expansion aligned with market needs. ‘Governance’ involves ethical management practices, and ‘Giving’ emphasizes corporate social responsibility (CSR), contributing positively to communities. Together, these dimensions suggest that firms play a role in societal development, balancing shareholder wealth maximization with stakeholder wellbeing.
Harish Manwani’s assertion that profits are a means rather than the end aligns with the 4G Model. It advocates that social impact and ethical practices can enhance long-term profitability. Similarly, Samsung’s Galaxy Fold delay exemplifies the importance of responsible governance and quality assurance to protect consumer trust and brand reputation, ultimately impacting shareholder value (Kim & Gurman, 2019).
Economic Theory and Company Responsibility
Applying economic theory, particularly stakeholder theory, highlights that a firm’s responsibilities extend beyond shareholders to include customers, employees, suppliers, and the community. The concept of social capital emphasizes that maintaining trust and reputation builds sustainable economic value. Moreover, the theory of externalities reminds firms of their societal impact, encouraging responsible innovation and product testing to prevent negative externalities like product failures.
From a shareholder wealth maximization perspective, ignoring these responsibilities can lead to long-term losses, brand damage, and decreased customer loyalty. Conversely, integrating CSR and ethical governance can create a competitive advantage, fostering goodwill and customer satisfaction, which ultimately supports profit maximization (Freeman, 1984).
Responding to Stakeholders as Samsung’s Executive
As Samsung’s CEO, I would address shareholders and customers transparently, acknowledging the Galaxy Fold failure as an instance where quality assurance and responsible innovation were insufficient. I would emphasize that our decision to delay the launch aligns with our commitment to delivering a product that meets the highest safety and quality standards, reflecting our adherence to the 4G Model’s principles—particularly Governance and Giving.
I would assure shareholders that we prioritize sustainable growth and long-term profitability over short-term gains, recognizing that safeguarding customer trust and brand reputation is paramount. Moreover, I’d outline corrective actions, including rigorous testing protocols, enhanced quality controls, and greater stakeholder engagement in the product development process.
For customers, I would express sincere apologies for the inconvenience caused. I would assure them that their safety and satisfaction are our top priorities, and we are committed to refining the Galaxy Fold to meet the high standards they expect. This approach not only aligns with our social responsibility but also ensures the product’s success in the market, fostering loyalty and trust.
Conclusion
The 4G Model provides an effective framework for companies navigating the complexities of modern markets. Responsible governance, societal contribution, and ethical practices are integral to sustainable success. Samsung's careful handling of the Galaxy Fold delay reflects a commitment to these principles, balancing shareholder wealth with social responsibility. By incorporating economic and CSR theories, companies can foster long-term value creation that benefits shareholders, consumers, and society at large.
References
Freeman, R. E. (1984). Strategic management: A stakeholder approach. Pitman.
Kim, S., & Gurman, M. (2019). Samsung delays launch of Galaxy Fold after screen failures. Bloomberg News.
Manwani, H. (2013). Profit’s not always the point. TED Talk.
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