company values

company values

 

If you are thinking about building a marketing strategy for the coming year, this post from Kaihan Krippendorff’s company blog may have the direction you need. The “ultimate strategy” is explained and explored. 

Is “be good” a part of your 2021 strategy? If not, you should reconsider.

When I was in business school, we learned that companies exist to do one thing: maximize shareholder value. At Outthinker, we’ve been talking for years about how this belief has become defunct. Companies are realizing that focusing solely on shareholder value creates resistance to growth that ultimately diminishes value to those shareholders.

A better strategy is one that aims to help shareholders by benefiting all stakeholders: the community, employees, the government, the environment, and the world.

Becoming a force for good is the ultimate strategy.

The Pope on Big Business

Last week, in an unlikely pairing, Pope Francis met with a group of businesses, investors and other groups to form the Council for Inclusive Capitalism with the Vatican. The council, whose leaders include Ajay Banga of Mastercard, Marc Benioff of Salesforce, and Brian Moynihan of Bank of America, intends to create a more just economic system and address the biggest challenges facing humanity and our planet. Their commitment to focus on environmental, social, and governance, or ESG, practices in business reflects a growing global trend and a serious step forward for the “be good” movement.

I have gotten to speak with some of these leaders personally, and I can assure you their intentions are authentic. Why? Because they make business sense.

 

Key points include:

  • Top consumer trends for 2021
  • The importance of company values
  • How to generate innovative strategic ideas

 

Read the full post, The Pope, Big Business, and the Future of ESG, on Outthinker.com. 

 

 

Jay Jung shares a case study that explains how his company helped a client with their fundraising process, and increased their valuation by 80% and doubled the capital raise.

One of our clients received a term sheet from a well-known VC in the industry. Our client was very excited as getting an investment from this firm was a strong sense of validation in the industry. However, the valuation was significantly lower than what they were hoping for.

The client only had one term sheet from this specific investor and was in dire need of a cash infusion to maintain its fast growth trajectory. Discussions with other investors were lagging and unclear if they were seriously interested.

This is a weak hand. In traditional negotiation terminology – what is your BATNA (Best Alternative To a Negotiated Agreement)? Ours was perhaps none existent, at best weak. But as Adam Grant advocates, “The science of the deal reveals that great negotiators refuse to believe in a win-lose world. They care about both results and relationships. They don’t declare victory until all parties win”

If you focus just on valuation, you are not going to gain much in this situation. We refuted their approach to valuation and explained why it was too low (unreasonable). The VC did not push back on our logic, but that doesn’t mean they accepted our higher valuation.

The key to gaining something in this type of discussion is identifying other issues that the investor is solving for. For investors, it is very rarely just about valuation.

 

Read the full case study, Successfully Negotiating VC Termsheets, on the Embarc Advisors’ website.