JK

  • 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.