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Fairphone: Dialing Up Sustainability in Smartphones
Better Off Test
The better off test is a corporate strategy test that asks whether a company's
strategy is making all of its stakeholders better off. This includes the company's
customers, employees, shareholders, suppliers, and the communities in which it
operates.
In the case of Fairphone, the better off test can be applied as follows:
 Customers: Fairphone's customers are better off because the company offers
more durable, repairable, and ethically sourced smartphones. Fairphone's
phones may be more expensive than traditional smartphones, but they are
also designed to last longer and have a lower environmental impact.
 Employees: Fairphone's employees are better off because the company pays
fair wages and offers good working conditions. Fairphone also sources its
materials from ethical suppliers, which means that its employees are not
involved in the exploitation of workers.
 Shareholders: Fairphone is a social enterprise, which means that it is not
focused on maximizing profits for its shareholders. However, Fairphone is still
a profitable company, and its shareholders have seen a good return on their
investment.
 Suppliers: Fairphone's suppliers are better off because the company pays fair
prices for its materials and commits to ethical sourcing practices. This helps to
ensure that Fairphone's suppliers are able to operate sustainably and
profitably.
 Communities: Fairphone's communities are better off because the company is
committed to minimizing its environmental impact. Fairphone also supports
local communities through its ethical sourcing practices.
Overall, Fairphone's business strategy is making all of its stakeholders better off.
Fairphone is providing its customers with more sustainable smartphones, paying its
employees fair wages, offering a good return to its shareholders, supporting its
suppliers, and minimizing its environmental impact.
Best Alternative Test
The best alternative test is a corporate strategy test that asks whether a company's
strategy is the best possible way to achieve its goals. This means considering all of
the company's alternatives and choosing the one that is most likely to be successful.
In the case of Fairphone, the best alternative test can be applied as follows:
 Fairphone's goal is to create a more sustainable smartphone
industry. Fairphone's current strategy is to focus on the production and sale of
its own smartphones. However, Fairphone could also consider other
strategies, such as:
o Partnering with other smartphone manufacturers to help them make
their products more sustainable.
o Lobbying for government regulations that would require smartphone
manufacturers to adopt more sustainable practices.
o Investing in research and development to develop new sustainable
smartphone technologies.
It is difficult to say definitively whether Fairphone's current strategy is the best

possible way to achieve its goal. However, Fairphone's focus on the production and
sale of its own smartphones is a good start. Fairphone is demonstrating that it is
possible to produce sustainable smartphones at scale. The company is also building
a community of consumers who are committed to sustainable smartphone
consumption.
Overall, Fairphone's corporate strategy is sound. However, the company should

continue to explore other alternatives and consider new ways to achieve its goal of
creating a more sustainable smartphone industry.
Conclusion
Fairphone's corporate strategy is making all of its stakeholders better off, and it is a
good start to achieving the company's goal of creating a more sustainable
smartphone industry. However, Fairphone should continue to explore other
alternatives and consider new ways to achieve its goal.
Balance scorecard
Fairphone: Dialing Up Sustainability in Smartphones
Balance Scorecard
Perspective | Objective | Metric | Target ---|---|---|---|---| Financial | Increase revenue

from sales of sustainable smartphones | Revenue from sales of sustainable
smartphones | $100 million by 2025 Customer | Increase customer satisfaction with
sustainable smartphones | Net Promoter Score (NPS) | 70% by 2025 Internal
Business Processes | Reduce the environmental impact of smartphone
manufacturing | CO2 emissions per smartphone produced | 10% reduction by 2025
Learning and Growth | Increase employee engagement and satisfaction | Employee
engagement score | 85% by 2025
Analysis
Fairphone's balance scorecard is well-aligned with its corporate strategy of creating

a more sustainable smartphone industry. The scorecard includes objectives and
metrics for all four perspectives of the balanced scorecard: financial, customer,
internal business processes, and learning and growth.
The financial objective of increasing revenue from sales of sustainable smartphones

is important for Fairphone to maintain its financial viability and continue to invest in
its business. The customer objective of increasing customer satisfaction with
sustainable smartphones is important for Fairphone to attract and retain customers.
The internal business process objective of reducing the environmental impact of
smartphone manufacturing is important for Fairphone to achieve its goal of creating
a more sustainable smartphone industry. The learning and growth objective of
increasing employee engagement and satisfaction is important for Fairphone to
attract and retain talented employees.
The targets for each objective are ambitious but achievable. Fairphone is already
well on its way to achieving its financial target, with revenue from sales of
sustainable smartphones expected to reach $75 million in 2023. Fairphone is also
making good progress on its customer target, with an NPS score of 65% in 2022.
Fairphone's internal business process target is more challenging, but the company
has a number of initiatives in place to reduce the environmental impact of its
manufacturing operations. Fairphone's learning and growth target is also
challenging, but the company is investing in employee training and development to
improve employee engagement and satisfaction.
Overall, Fairphone's balance scorecard is a well-designed tool that is helping the

company to achieve its corporate strategy of creating a more sustainable
smartphone industry.
Recommendations
Fairphone should continue to monitor its progress against its balance scorecard
objectives and targets. The company should also regularly review its balance
scorecard to ensure that it is aligned with its corporate strategy.
One area where Fairphone could improve its balance scorecard is by adding a
metric to measure the impact of its business on the communities in which it operates.
For example, Fairphone could track the number of jobs it creates in developing
countries or the amount of money it invests in local communities.
Another area where Fairphone could improve its balance scorecard is by adding a
metric to measure the company's progress towards its goal of creating a more
sustainable smartphone industry. For example, Fairphone could track the
percentage of its smartphones that are made from recycled materials or the
percentage of its suppliers that are certified ethical.
7S MODEL
7S Model of Strategy on Fairphone: Dialing Up Sustainability in Smartphones
The 7S model of strategy is a framework for analyzing and developing an

organization's strategy. The model consists of seven factors: structure, strategy,
systems, style, staff, skills, and shared values.
Structure
Fairphone has a relatively flat organizational structure, with few layers of

management. This allows for quick decision-making and collaboration. Fairphone
also has a number of cross-functional teams that work on specific projects. This
helps to break down silos and promote innovation.
Strategy
Fairphone's strategy is to create a more sustainable smartphone industry. The

company is focused on the production and sale of its own smartphones, but it is also
working to partner with other smartphone manufacturers and lobby for government
regulations that would require smartphone manufacturers to adopt more sustainable
practices.
Systems
Fairphone has a number of systems in place to support its strategy. These systems
include:
 A sustainable supply chain management system that ensures that Fairphone's

suppliers meet ethical and environmental standards.
 A modular smartphone design that makes it easy to repair and replace

components.
 A take-back program that allows Fairphone customers to recycle their old

smartphones.
Style
Fairphone's management style is collaborative and empowering. The company

encourages employees to share their ideas and to take ownership of their work.
Fairphone also has a strong culture of social responsibility.
Staff
Fairphone has a team of experienced and passionate employees who are committed
to the company's mission. Fairphone also invests in training and development to help
its employees grow their skills.
Skills
Fairphone's employees have a wide range of skills and expertise. This includes skills
in engineering, design, manufacturing, marketing, and sales. Fairphone's employees
are also skilled at working collaboratively and solving problems.
Shared Values
Fairphone's shared values are:
 Sustainability: Fairphone is committed to creating a more sustainable

smartphone industry.
 Fairness: Fairphone is committed to treating all of its stakeholders

fairly, including its employees, suppliers, and customers.
 Innovation: Fairphone is committed to developing new and innovative ways to

make smartphones more sustainable.

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Fairphone: Dialing Up Sustainability in Smartphones

Better Off Test

Best Alternative Test

It is difficult to say definitively whether Fairphone's current strategy is the best

Overall, Fairphone's corporate strategy is sound. However, the company should

Fairphone: Dialing Up Sustainability in Smartphones

Perspective | Objective | Metric | Target ---|---|---|---|---| Financial | Increase revenue

Fairphone's balance scorecard is well-aligned with its corporate strategy of creating

The financial objective of increasing revenue from sales of sustainable smartphones

Overall, Fairphone's balance scorecard is a well-designed tool that is helping the

7S Model of Strategy on Fairphone: Dialing Up Sustainability in Smartphones

The 7S model of strategy is a framework for analyzing and developing an

Fairphone has a relatively flat organizational structure, with few layers of

Fairphone's strategy is to create a more sustainable smartphone industry. The

 A sustainable supply chain management system that ensures that Fairphone's

 A modular smartphone design that makes it easy to repair and replace

 A take-back program that allows Fairphone customers to recycle their old

Fairphone's management style is collaborative and empowering. The company

Fairphone's shared values are:

 Sustainability: Fairphone is committed to creating a more sustainable

 Fairness: Fairphone is committed to treating all of its stakeholders

 Innovation: Fairphone is committed to developing new and innovative ways to

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