Course Details and Schedule

• Last class date is April 22; finishing two weeks early.
• Makeup exams on April 30 and May 1; note limits on the number of makeup exams allowed.

Topics Overview

• Today's lecture focuses on Business Analytics and Stakeholder Engagement (Topic 10).
• Topic 9 material exclusive to today's lecture.

Importance of Analytics

• Emphasize the necessity in business to use numbers, especially in discussions around:
• Sustainability
• Social accountability
• Importance for non-mathematical inclined individuals to embrace analytics for success in business.

Study Tools

• Two online quizzes available to assess understanding and prepare for Exam 3, from Monday to Tuesday.

Case Study: BlackRock

• Discusses a controversial investment strategy related to ESG (Environmental, Social, and Governance).
• Analysis memo for case study due Monday, highlighting the ethical concerns with AI assistance in assignments.

Understanding Business Analytics

• The purpose of business analytics: linking theoretical models with quantitative analysis to inform decision-making and strategy.
• Shared Value Creation: Merging profit margins with humanitarian goals while maintaining organizational profitability.

Economic Theories

• Debate on how sustainability can enhance business competitiveness.
• The necessity to improve revenue and attract loyal consumers through sustainable practices.
• Importance of maintaining profitability while being environmentally conscious; redefining the traditional view that profit and sustainability are opposed.

Methodologies in Analytics

• Regression analysis for estimating demand and cost functions helping in decision making.
• Data collection methods: factual data from production, costs, and marketplace.
• Utilizing spreadsheets and statistical tools to derive essential equations and projections.

Revenue and Cost Dynamics

• Cost functions demonstrate the trade-offs between traditional and sustainable products (i.e., higher production costs for sustainable, yet higher demand).
• Marginal cost vs. marginal revenue concepts explained through calculus, essential for maximizing profit in business decisions.

Investment Viability

• Important calculation of present values to evaluate long-term investment in sustainability versus immediate costs.
• Scrutiny of opportunity costs and the importance of understanding the nuances between short-term gain and long-term vision.

Stakeholder Engagement

• Definitions: Stakeholders vs. stockholders; the broader scope of stakeholders encompasses all parties affected by business operations.
• Emphasis on shared value creation as a strategic objective for modern businesses, showcasing the potential for mutually beneficial outcomes.

Strategic Examples

• Eli Lilly's community investments leading to strategic benefits within Indiana.
• Suncor and corporate decisions balancing investments against potential regulatory pressures.
• BP's historical shift towards sustainability following reputational and market pressures, including their rebranding efforts.

Critiques of Sustainability Efforts

• Example: Greenpeace's critique of BP regarding their sustainability branding vs. actual investments in green technology (i.e., 2% of capital vs. marketing costs).
• Importance of verification of sincere engagement and commitment towards sustainability in a business context.