Framing Your Portfolio for Human Impact + Profit.
Companies that include product portfolio and revenue mix, operations across Health, Wealth, Earth, Equality and Trust, HIP Management practices continue to increase not just in profit but also in human impact across the world. In chapter 7 of The Hip Investor (Human Impact + Profit) Herman gives us an opportunity to compare companies and industries to see what role HIP plays in the economy. I was able to evaluate three different companies and frame my portfolio for Human Impact + Profit. Wal-Mart, Target, Kroger and Amazon are the companies I compare and below are my evaluations on each. After evaluating each company’s products, human impact, understanding their management practices, and calculation overall HIP score, Wal-Mart had the highest score with 71.63, followed by Target and Kroger with scores of 70.2 and 58.215 and finally, Amazon with the lowest score of 43.6. Wal-Mart and Target have been competing companies for decades. Walmart had the highest ratio for HIP products because the value of their revenue associated with their products creates net positive impact. Target had the highest human impact because in each human impact metric—Health, Wealth, Earth, Equality, and Trust gauged their true impact on carbon emissions, board diversity, women and ethnic employees, wealth and health metrics. The more systematic the management approach, the more likely that firm will gain from sustainable, profitable growth. Kroger had the Highest Management Practices based on their vision, metrics, financial alignment, accountability and decision making. I felt like Amazon was no match because it is an online retailer and other companies have stores and because of this, Amazon had the lowest score. In conclusion, comparing company’s in the same industry has helped me to how big the competitors are, what metrics produce both human impact and profit, how decisions are made and how much profit is realized. Also, it has...
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