A key takeaway for me was the shift from Corporate Social Responsibility (CSR) to Creating Shared Value (CSV). I learned that while CSR involves a company’s voluntary efforts to benefit society, CSV aligns social and economic goals within the company’s core business strategy. For example, we discussed in class about the case study on BlackRock, where CEO Larry Fink pushed for companies to adopt a sustainability-focused approach that benefits all stakeholders such as employees and customers rather than just maximizing shareholder value. This shows that companies can drive both social and financial outcomes at the same time. As such, the shift from CSR to CSV will allow firms to build long-term competitive advantage by integrating social impact into their business.

Another key takeaway for me was the role of vertical integration in a company's strategy. I learned that vertical integration refers to a company owning different parts of its supply chain either backward (toward raw materials) or forward (toward distribution). For example, HTC's backward integration into smartphone design by acquiring One & Co had allowed it to secure critical design talent and forward integrate into sales, hence giving them more control over the quality and distribution of their products. This shows how vertical integration can enhance a firm’s control over its value chain, reduce costs, and also improve product quality, thus contributing to a stronger competitive position.

Another key takeaway for me was the the Triple Bottom Line (TBL) approach in assessing firm performance. I learned that the TBL framework focuses on economic (profits), social (people), and environmental (planet) performance. For example, PepsiCo’s "Performance with Purpose" initiative shows TBL in action as the company focused on reducing water usage and promoting healthier products while also ensuring financial performance. This shows that firms can achieve long-term sustainability by addressing environmental and social responsibilities alongside financial goals, hence ensuring a better approach to performance and competitive advantage.

A surprising learning point for me was the concept of vertical market failure for vertical integration. Before learning about this, I thought vertical integration mostly as a strategy to reduce costs and improve supply chain efficiency, but I was surprised to learn that companies also pursue vertical integration to avoid market risks and failures. For example, Delta Airlines’ backward integration into fuel production by acquiring an oil refinery was motivated by the volatility in the fuel market which made up a large portion of the airline's operating costs. This shows how companies integrate vertically to secure critical resources and reduce risk during unstable market conditions.

Another surprising learning point for me was the limitations of using shareholder value creation as a measure of firm performance. I previously thought that shareholder value was the most reliable metric for evaluating a company's success. However, I learned during class that stock prices can be volatile and influenced by external factors like macroeconomic conditions or investor sentiment, which may not accurately reflect a company’s true performance. For example, we discussed about Starbucks CEO Howard Schultz’s decision to reinvest profits back into the company rather than distribute them to shareholders. This show that focusing solely on short-term shareholder returns can undermine long-term business growth. As such, its important to assess a company's long-term strategies also rather than solely focusing only on immediate shareholder returns from its stock price.

A third surprising learning point for me was the introduction of emissions trading systems (ETS) in corporate sustainability. I previously thought that sustainability initiatives were primarily driven by voluntary corporate social responsibility programs, but I learned that policies like ETS are now important tools to force companies to reduce greenhouse gas emissions. I learned that ETS means that companies that emit fewer greenhouse gases can sell their surplus to others, which creates market incentives for companies to innovate and cut emissions. This shows how governmental policies can influence corporate strategies beyond voluntary efforts, hence also showring the link between environmental sustainability with business performance.

I can now better assess the implications of vertical integration in a firm's supply chain strategy. I learned that vertical integration, whether backward or forward, allows companies to control more of their supply chain such as from raw materials to end-product distribution. For example, Delta Airlines’ acquisition of an oil refinery to secure fuel supplies is an instance of backward integration. By understanding the benefits and risks of vertical integration such as reducing dependency on suppliers versus potential increased costs, I can better evaluate when vertical integration would be advantageous for companies looking to stabilize critical inputs.

I can now also better differentiate between shareholder capitalism and stakeholder capitalism to evaluate a firm’s governance approach. I learned that the key difference is that shareholder capitalism focuses solely on maximizing profits for investors while stakeholder capitalism considers the well-being of all stakeholders including employees, customers, and society. For example, BlackRock’s push for sustainability through stakeholder capitalism provides a real-world example of this shift. As such, after this week's lesson, I can better evaluate how companies align long-term profitability with social impact.

I can also now apply the concept of corporate diversification to analyze when firms should expand beyond their core business. I learned about diversification strategies such as related and unrelated diversification where firms like Amazon diversify into different industries to sustain competitive advantage. This knowledge helps me better assess when firms should focus on related activities to leverage core competencies or when unrelated diversification might open new growth opportunities.

I want to learn more about Taper Integration and its role as an alternative to full vertical integration. I learned that taper integration involves a mix of in-house production and outsourcing. For example, firms like Apple use this strategy by manufacturing some components internally while outsourcing others. This allows firms to retain flexibility, reduce risks associated with full vertical integration and maintain control over critical processes. I believe that taper integration can help me better analyze how firms balance cost, quality control, and flexibility in their supply chains.

I also want to learn more about the Balanced Scorecard and how it helps organizations measure their strategic objectives. I learned that the Balanced Scorecard integrates financial and non-financial measures to provide a holistic view of organizational performance. I want to explore deeper on how it enables firms to align their internal processes with strategic goals and helps in adapting strategies when deviations occur. For example, companies like 3M use it to balance innovation and financial performance. I hope to learn more about its implementation to deepen my ability to evaluate company performance beyond traditional financial metrics.

Lastly, I want to learn more about Internal Capital Markets and how big companies use them to allocate resources efficiently. I learn that internal capital markets allow firms with diversified business units to allocate resources more efficiently than relying on external markets. For example, companies like General Electric (GE) have used internal capital markets to invest in high-potential business units. I believe that exploring how internal capital markets function will help me better understand how diversified firms optimize their financial performance across different industries and markets