By Margaret Leora Workman; Warponie Art 2023
This article called, The Value of Value Creation by Marc Goedhart and Tim Koller (Goedhart & Koller, 2020) talked about how Europe is leading the way in the idea of value creation and the United States is learning how we can be competitive in the business market by using strategies that Europe has already been using. Europe is helping American corporations to learn how to create value by considering consumers, employees, suppliers, shareholders and stake holders when creating this value for the long term. One way that Europe is helping the United States to learn this idea of value creation is for a company to become a public benefit corporation. This allows the owner of that corporation to have more information about how to create value for a larger number of people involving the shareholders and stakeholders as well as consumers and suppliers and any type of employee stakeholder as well. Before it was based on share price but that only depended upon the short-term prospects that a company could control. Now under a newer system with new information companies can think about different aspects of creating value that is sustainable for a wider group of people, number of situations and length of time. This involves creating present value and future value and being able to work with a larger group of people called shareholders and stakeholders who have greater investments in the company to be considered. The old strategies of intertwining value creation with short term value creation is now being replaced with the long term benefits of capitalism. The article states:
“Investing for sustainable growth should and often does result in stronger economies, higher living standards, and more opportunities for individuals. It should not be surprising, then, that value- creating capitalism has served to catalyze progress, whether by lifting millions of people out of poverty, contributing to higher literacy rates, or fostering innovations that improve quality of life and lengthen life expectancy.”(Goedhart & Koller, 2020)
According to the article, The Value of Value Creation, by Marc Goedhart and Tim Koller (Goedhart & Koller, 2020) it will be beneficial to me to understand who I am creating value for in creating a new business of any kind. For my new business I will be adding onto an already existing business that I already have called Warponie Art and I do desire to create value in the long term for the success of this business. I will be adding three new businesses of Singing Telegrams, an art group, and a garage sale that I will call Upcycled. I sell used clothing, original art, photography and original handmade jewelry on Ebay and Etsy. I will move to California so that I can add these new businesses to my existing business: Warponie Art, which is online, in order to bring in more customers. These singing telegrams will be offered at any type of gathering or party. I will distribute fliers on cars and at doors of homes in the area of the beach in California with all of this information. Coupons will be listed there as well for people to use for each service. Then each Saturday I will hand out fliers to people walking on the beach and I will ask if they would like a free singing telegram right then and I will do this with another person who likes to sing and perform as well. I will have a list of songs for people to choose from at the beach and if they have a favorite song then we will sing that one for them. I will give a coupon for a free telegram for a customer to use for a friend or family member.
I will also explain on the fliers about the art group that will meet once per month and a coupon for a free time to come to an art group that I will start along with Upcycled, and also a credit to go towards anything in the store. I will have Upcycled at my house once a week Friday and Saturday, at my house as a type of garage sale that I will advertise on Craigslist and other popular platforms that California may use to advertise garage sales. I will have items at the garage sale that I have purchased at thrift stores that could be an applicable item to sell at a garage sale. I will have items that I have upcycled into different pieces of art and talk to people about the art group where we will all be upcycling items for further use or to display on their wall.
A potential challenge that my business will have in reference to how Europe is helping us to create value through Capitalism that I see it is that this is not a large company that could live up to the requirements of being in that type of corporate arena of having shareholder and stakeholders to create value for. I believe that people will always want and desire to have fun and singing telegrams and groups that create art together will always be popular and so that situation creates value presently and for the future. This article stressed the importance of creating value that is not dependent any more on share price which is beneficial because Warponie Art, Upcycled and the singing telegram service are not options to be invested into in the stock market. I have other names of art that I have in this business that I have created, and I believe that it could be a company to invest in and I believe that all of the other businesses that I can create to be a part of Warponie Art can be businesses within themselves and will support each other as well. I believe that Upcycled could become popular, but it has to be in an area where people will see the value in these types of businesses. According to the article, 50 ideas for Your 2023 Small Business Marketing Strategy (Boyarsky, 2023), there are many ways for new businesses to market their business successfully in order for it to create long term value and one that is mentioned is to connect with other local businesses. I could do this by talking to the local businesses around the beach area and become friends with them. Then I could talk about the other businesses around the area and tell customers about what they are offering as well. I can do that type of advertising for them if I can have my flier at their business. This will help to build relationships and bonds with other businesses. This situation will cause people to talk about my business through word of mouth and will create long term value. This is my long-term marketing strategy.
References
Boyarsky, K. (2023, May 19). 50 Ideas for Your 2023 Small Business Marketing Strategy. https://blog.hubspot.com/marketing/small-business-marketing-guide? utm_campaign=Marketing%20Blog%20-%20Daily %20Emails&utm_medium=email&utm_content=259051075&utm_source=hs_email
Goedhart, M and Koller, T. (2020, June 16). The Value of Value Creation. https://www.mckinsey.com/capabilities/strategy-and-corporate-finance/our-insights/the-value- of-value-creation
this paper was something that I did not want to write because the article was supportive of capitalism. We do not have a capitalistic society in the United States because our government is not set up that way and the constitution does not support that type of society. I emailed my professor that because I didn’t know how I was going to be able write it with a positive spin. He didn’t respond to me so we all had to write it. I don’t know what my classmates wrote because some of these papers that we had to write were shared with each other but some we just had to turn into the professor. I tried to sound as positive as possible but the idea of having a business startup with Art and garage sales and singing telegrams do not really jive well with capitalism that requires stakeholders etc.. thank goodness we live in a country where the government is supposed to follow and allow us to have our amendment rights, correct?? Anyway he never talked to me about this paper and I don’t really think that he cared anyway but I do wonder if he ever thought that I was supportive of capitalism?? I wanted an ‘A’ so I just wrote what he wanted to hear which is completely easy but then a person can risk sounding like a sellout honestly. But I kind of thought that he would have known that I think that capitalism is a losing battle by what I wrote. It’s all about that very rich person’s subjective opinion about your company or product. That is too much work for that person. Then your business becomes unrecognizable to even you at the end of the day. Do you think that I fooled him well enough? I did get an ‘A’. Bahahahaha love Warponie Art 🩷
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