The paper “ The Invercargill Licensing Trust’ s Social Responsibility, Differences between ILT’ s Mission unlike Any Profit-Oriented Commercial Organization" is a perfect version of a case study on finance & accounting. The Invercargill Licensing Trust (ILT)’ s success as a venture is closely linked to the overwhelming support and goodwill that it receives from the community. As a community-owned initiative, the trust is uniquely and strategically positioned in the market, something that is further complemented by its monopolistic position as the solely licensed alcohol selling facility. In addition to its inherent advantages, ILT successes are also brought about by its prudent management, its social responsibility towards the community, and its ability to remain relevant amidst changing consumer preferences. Its focus on the community as indicated in its mission is one of the main factors that make ILT distinct from profit-making organizations.
As opposed to for-profit enterprises that have sales and profit responsibility towards their shareholders, ILT motivation goes beyond financial success in benefiting the community. Overall, this report identifies ILT as a unique case that does not have a chance of being replicated in the modern capitalistic society where monopolies are thought to be inherently bad, and where communities are rarely able to coalesce collectively around an economic activity without individual self-seeking economic thoughts creeping in. ILT is a profitable trust based in Invercargill New Zealand.
The trust was formed as a means of responsibly licensing the sale of alcohol without giving selected individuals the privileges of raking profits inequitably from a business that is loosely guarded by the liquor laws. The trust was therefore formed as an equitable and responsible business model that would sell alcohol to locals without breaching liquor laws for profit reasons.
Decades later, ILT is a profitable business initiative that has not only diversified into accommodation and other forms of entertainment such as casinos but has continually and strategically placed the community at the core of its business operations. ILT’ s SuccessAs an initiative by the larger community in Invercargill, ILT is perhaps the single biggest organization that enjoys overwhelming support from the same community it strategically serves. As its president Ray Harper has indicated in the case study, the trust also has other aspects that have contributed to its success.
Such include good management, its socially caring approach which has seen it return substantial benefits to the community, and its ability to ‘ move with the times’ . The latter point is especially important because markets are dynamic and a winning strategy in the short-term may not necessarily win in the long-term (McLoughlin & Aaker, 2010, p. 1). Notably, even with increased competition from licensed restaurants, sports centers, cafes, and bars all which follow the commercial model, ILT has endeared itself to the consumers by strategically positioning itself as the service provider of choice.
Following Walker, Gountas, Mavondo and Mullins’ (2009) thoughts regarding successful marketing, ILT has arguably adopted market-oriented perspectives, which have in turn contributed to the trust’ s success in marketing its corporate and business strategies. As indicated by Walker et al. (2009), a strategy entails planned objectives that an organization follows in its resource deployment, and during its interactions with consumers, competitors and a myriad of other environmental factors. Before formulating its marketing strategies, and considering its dependence on the Invercargill community, ILT, as indicated in the case study, consults with the wider community in order to understand their priorities and hence determine which projects are worthwhile and better positioned to benefit the community.
As indicated in McLoughlin and Packer (2010, p. 2) “ The need for information about customers, competitors, and trends affecting the market is now higher than ever” . Such information enables an organization to detect opportunities, threats, emerging weaknesses, and strategic problems and is hence able to develop the appropriate responses.