Discussion board Name Professor Institution Course Date Discussion board 1 Model 1: In your element one, explain what the authors set forth as the proper method for company leaders to approach externalities. The author provided a model for analysis and reacting to externalities in the business environment. The author’s model is broken down into three important phases. Ownership, Action, and Interest. For example, the author proposes that one has to take responsibility for any problems and or mistakes. After taking responsibility for any mistake, the author argues that the managers must be able to make efforts to solve the problems because by solving problems that company shows their responsiveness to the environments as such, they become part of the solution. Then the third step is to take interest in helping fixing the problems even when they did not cause the problem (Cappelli, et al, 2010). In this case, Wal-Mart is one of the most suitable example, of the companies that have implemented that recommendations made by the author. Before their merger with Bharti of India broke up, the company helped solved problems in the policies fighting for better terms for the foreign investors. The author provided a very innovative model that can be used to manage the impact of externalities. The company should start with the four centric circle proposed above, then the first ring should denote taking ownership, the second ring, mean taking action, and the third ring means taking interest. The most outstanding element is that the either proposed that manager should use Ripples of Responsibility concept to help the company overcome its externalities. The author proposes that there are four main rings in a business. Using a concentric ring, the author explained that four main types of externalities face the business Element 2: To clear out the externalities, the author proposed that the managers must be able to trace back their footprints or the impact of the companies’ actions on the environment. This means that the company must strategize on how to solve the problems, by setting SMART goals and taking action. The author tries to explain that for each ring there is a significant relationship with the company’s actions. For example, accountability, competence, and brand resonance Element 3: Element 3 focuses on the impact of the business environment on the society. For example, societal perception. There are a number of companies that have managed to solve externalities problems. For example, mc Donald has been trying hard to change the people’s perspective on the customer on the fast foods by ensuring that their ethical sourcing system is strict. They even disposed some of their suppliers for not slaughtering their chicken the right way Discussion board -2 Element 1 There are three specific focuses n that an effective organization must have. These include employee development, employee training, and employee empowerment. Other factors include engagement in CSR, and corporate strategy and mission Element 2 The founder of Apollo Hospital Prathap Reddy, a leading private health care provider said “Our first responsibility is to our patients; second, to people who work for us; and then to our lenders and investors” (Page 5, Paragraph 4). The goal of every organization is to make profits, if the organization is to make profit it must put customer first, and the employee second. The customer come from the community, therefore they come third. Organizational leadership and organizational culture go together. Therefore all organization must be aligned towards ensuring that they develop healthy culture that can foster strategic advantages. Element 3 There are many employees that have implemented the above strategies. For example, Reliance limited takes prides in training its employees on customer services and efficiency and this has contributed to their competitiveness. The company develops its employees to serve their customers well. They also take care of the environment by giving back to the society. Acers, and Accenture, are some of the two companies that are known to spend a lot of money on training their employees. For example, in 2012 alone, Accenture spent $600 million each year on training and development. This large capital outlay is done with the hope that the company would be able to realize a larger ROI from excellent customer service, efficiency, employee empowerment, and good decision-making. Employee training is also akin to organizational behaviors just the way it is connected to the overall. Employee training and empowerment also contributes to their overall innovativeness and creativity and all these have positive externalities that contribute to the organizations success. The company is also amongst the 100 best companies to work for because of their competitiveness, and employee effectiveness. Perhaps it is healthy to argue that the companies amongst the top companies because it has a good leadership founded on good team chemistry and properly defined organizational culture References Peter Cappelli, Harbir Singh, Jitendra V. Singh, &, Michael Useem, (2010). Leadership Lessons from India- How the best Indian companies drive performance by investing in people. Harvard Business School Publishing Corporation