Planning is a decision making process. It helps one to decide on what to do and how to do it. There are six steps to follow when planning. First and foremost, one has to analyze the situation. Two constraints are very important at this stage and they are time and resources. Gathering of information and interpreting is done at this stage.
Also, a summary of all the relevant information is done. Identification and diagnosing planning assumptions is done. In addition issues and problems are identified. The second step is having alternative goals and plans. Alternative goals that can be implemented later are provided. It also gives plans used to implement the goals. Thirdly, evaluation of goals and plans is done.
Advantages and disadvantages on alternative goals and plans are evaluated. Also, the possible effects of the goals and plans are evaluated at this stage. Fourthly, selection of the goals and plans is carried out. The most appropriate and feasible goals and plans are selected. Right judgment is crucial at this stage. In the fifth step, implementation of the designed plans takes place. This helps one to achieve the set goals. To implement a plan, the manager must understand it well.
Also, resources to implement the plan must be available. Finally, monitoring and controlling are important. These help one to know whether his/ her plan is succeeding. Continuous monitoring of the actual performance against units goal should be done. Implementation is the most important step in planning. The reason behind this is that implementation of plans helps in achieving the set goals (Darlkir, 7).
There are three types of plans that can be used in different organizations. These include, single used plans, standing plan, and contingency plan. Single-use plans are used in activities that are done only once. They are one time-time use plans. They also have specific goals.
They may be used for duration of few days. In addition, they may last for a number of years. Projects and programs are good examples of single-use plans. Also, budgets can be considered as single-use plans. The activities involved are like the special sales program.
Programs cover who and what in an activity. It also covers where, and how the activity will be done (Ingram, para.3). Standing plans are applied in activities that take a long time to complete. In some cases it might be indefinite time. They can be adjusted so as to cater for the changing situations. Mostly they are created from information from different sources over a longer period. They also cover several departments in an organization.
Examples of standing plans are policies, a procedure and rules (Ingram, para.4). Contingency plans are meant for specific situations. This is incase things dont move as expected. Contingency planning involves flexibility and adaptation. Also, mastery is needed due to the changing conditions.
They include planning for marketing. The reason behind is to get support from the stakeholders. In addition, they allow for understanding from the stakeholders (Ingram, para.5). In our organization we usually use standing plan. The reason behind is that we usually deal with activities that need much time before completion. Also, in our organization we have many different departments where this kind of planning is more applicable.
From the above literature, I have been able to learn that planning is one of the key aspects in any organization. Implementation of a plan is one of the most important steps in any planning. Implementation helps in achieving the already set goals. Without the implementation of a plan, the other work done during the planning process will be of no importance. Different plans can be applied in different organizations. The kind of plan to be used depends on the type of activities taking places in an organization.
Works Cited
Darlkir, Kimiz. Knowledge management in theory and practice. New York: Technology partner. 2011. Print.
Ingram, David. Define single use, contingency & standing plans for business. January 26, 2011. April 22, 2011.
Human resource management refers to the tactical and articulate approach to the administration of any firms most treasured assets, which are the staff who labor there. These people make their contribution both as individuals and as a group with their toil all geared toward the attainment of the goals of the firm (Armstrong, 2006, p. 3).
Human resource management, commonly referred to as HRM, can be summed up as providing work for people, building up their abilities, making the most of these capabilities, keeping up and recompensing their services in accordance with their duty(s) and organizational obligation.
Members of staff of any organization have variegating objectives and requirements, and consequently need not be thought of as fundamental industry assets like automobiles and filing cupboards. Human resource management needs to take a constructive view of members of staff, with the assumption that practically all of them aspire to put in to the entity fruitfully, and that the most important stumbling blocks to their undertakings are lack of understanding, inadequate preparation and letdowns of progression.
The practice should therefore be further inventive as opposed to the conventional approach. In and of it, human resource management procedures, when appropriately put into practice, are communicative of the objectives and working applications of the entity taken as a whole. The practice also plays a major function in risk cutback within enterprises.
The human resources management task takes account of an array of activities, and the main in the midst of them is coming to a decision what recruitment needs to have and if to utilize autonomous service providers or take into service staff to fill these requirements, signing up and instructing the best staff, making certain that they are high players, tackling performance matters, and making certain that human resources and administration carry outs adhere to given conventions (Paauwe, 2009, p. 21).
Actions also take account of management of advancement to staff reimbursements and recompense, staff documentation and workforce guiding principles.
There are various aspects of human resource management which work jointly to ensure that the members of staff of a given enterprise are well managed and adequately motivated in a bid to realize the set goals and objectives. These are discussed in detail here.
Equal employment opportunity and Affirmative Action
Equal employment chance for all persons is one of the best guiding principles that will make certain that competent staff members are hired so that they may help attain an organizations set goals. There should be no unfairness of any kind on the grounds of race, skin pigmentation, religious conviction, gender, nationality, age, impairment, or sexual orientation in any facet of an individuals employment or qualification for being hired (Paauwe, 2009, p. 34).
Equal employment opportunity is commonly referred to as EEO and its rights are warranted by the national and state just employment regulations and are put into effect by the Equal Employment Opportunity Commission, EEOC, and its state corresponding entities.
Affirmative action describes an employer or hiring agents measure for practically signing up, taking into service and endorsing women, minorities, impaired persons and old hands. Affirmative action is an honorable and societal requirement to correct past slip-ups and do away with the current outcomes of precedent unfairness. Affirmative action plans, AAPs, have been crafted and take account of arithmetical standards aimed at adding to the representation of minority groups.
Whenever the employees of any entity have it in their minds that none of them was hired in an unfair manner they are bound to feel equal. They have no fears or prejudices of any form and will thus work harmoniously toward both individual and the organizations growth.
Human resources development
Human resources development, commonly referred to as HRD, is a structure for the development of human assets inside a firm. It is usually an arrangement of guidance and edification that makes certain the persistent stepping up and development of both the individual and the firm. Human resources development is the means that impels the progression linking guidance and learning. It is not a specified entity, but a sequence of well thought-out courses of action (Mathis and Jackson, 2006, p.105).
This human resource management aspect is vital for the realization of any organizations objectives. This is for the simple fact that it agrees to personality growth, potentially assuring the firms objectives. The growth of the individual will definitely do well to both himself or herself and the firm. When the staff members of an organization feel appreciated by being offered opportunities for growth, their morale goes up and they perform as expected, meeting set goals and even overshooting targets.
The human resource development looks at staff members as positive features to the organization whose worth will be improved by development. This development can be board-room set guidance, professional classes or tutoring by further up the ladder members of staff with the goal for a most wanted result that will build up the individuals feat.
A novice will move all the way through the growth course to be converted into a tradesman in their turf in the same way a skilled trainee will turn out to be an expert in their turf. Good human resource development curriculums set up employees to carry out superior echelons of work (Elwood and Trott, 1996, p.7).
The curriculums lay emphasis on the firms capabilities at the foremost phase, instruction, and then build up the staff member, by way of edification, to meet the firms long-standing needs and the members professional aims and employee worth to their current and prospect employers.
Human resources planning, recruitment, and selection
For an organization to realize its set objectives there needs to be competent staff working toward realization of those goals. When putting up plans for signing up and recruiting new staff, it is imperative that such plans need to cater for signing up the smartest individual(s) that can be found. Maintenance of an organizations best members of staff starts with the signing up, enrollment and appointing policies, procedures and measures.
The planning and hiring process needs to be carried out systematically so that no errors are made. The best method of doing this is by developing a checklist to act as a guide. First it needs to be established whether there is the requirement for a new or refilling position (Delery and Doty, 1996, p. 802).
Once this has been determined creative thinking needs to be carried out in a bid to get the job(s) done minus adding a new member. If this turns out to be impossible then a recruiting plan is required to be set so as to get appropriate filler for that position.
A good recruiting plan begins by specifying the fundamental obligations required from the post and the particular skills, aptitude, traits and work understanding being sought in a candidate. These are important as they will help in writing up the post advertisement and job description in order to attract applications from candidates.
Other things to be determined here are the remuneration range for the post and if the concerned division can meet the expenses of the person(s) to fill that post. After applications are collected, short listing follows and then interviews. Those who qualify are then signed up and inducted into the organization with their job descriptions, key performance indicators, among others.
Compensation and benefits
The most prized assets in any organization have to be well recompensed with sufficient benefits if they are to work toward realization of set goals and achievements. Compensation also has to be well worked out so that the expenditure of the firm does not shoot through the roof as it will subsequently mean some dreadful damages to the firm (Delery and Doty, 1996, p. 835).
Other than the qualifications, expertise, experience and nature of duties carried out, consideration for the prevailing economic times and living costs needs to be put to mind when paying employees.
Safety and Health
This refers to a cross-disciplinary field charged with saving from harm the wellbeing, healthiness and welfare of the persons involved in labor or service. The key aim of all work-related health and wellbeing agenda is to promote a work setting that is out of harms way (Roughton, 2002, p. 5).
As a derivative outcome, it may also safeguard associates, relations, employers, clients, dealers, surrounding population(s) and any other persons who are affected by the place of work surrounding. Workplace safety requirements are now widely highlighted in civil and labor laws world over.
When staff members feel secure and protected then they work without any fear and an organizations goals may be easily achieved in such cases. Accidents, injuries or when it gets worse to loss of lives does no good to anyone.
Dangers and health and wellbeing risks need to be made out and assessed so that appropriate safety reins are put in place to keep accidents at bay. In addition to this, effective training of staff members should be carried out so that they know how to avoid accidents and how to react in the case of any eventualities (Roughton, 2002, p. 11). High safety standards are good for everyone as they avoid time wastage, compensation for accidents, lost benevolence from the staff, from clients and the wider society.
Employee and labor relations
This field of human resource management is normally connected with issues such as inquiries, psychoanalysis and punitive actions. On the other hand, this is without a doubt is its most important undertaking. This significant human resource part serves as a link connecting employees and the administration, bridging spaces that much of the time seem impossible to either entity (Armstrong, 2006, p. 43).
All the way through a variety of types of intercession, as well as problem-fixing, arbitration, instruction and psychotherapy, labor relations provides evenhanded backing to administration and individual staff members to guard their particular rights and make possible a more conducive occupation setting.
Conclusion
All the above discussed human resource management aspects are important toward the achievement of any organizations goals. There is no aspect(s) that is more important than the others; all of them work hand in hand. It is the duty of the administration of any organization, especially the human resource department to see that these facets are properly and effectively put to practice.
Reference List
Armstrong, M. (2006). A Handbook of Human Resource Management Practice (10th ed.). London: Kogan Page. 3 43.
Delery, J. and Doty, H. (1996). Modes of theorizing in SHRM. Academy of Management Journal, 39(4), 802-835.
Elwood, F., Trott, Jr. (1996). Trends Toward a Closer Integration of Vocational Education and Human Resources Development. Journal of Vocational and Technical Education, Vol. 12, No. 2, p7.
Mathis, L., Jackson, H., (2006). Human Resource Management 12th ed. Managing Equal Employment and Diversity., pg. 105.
Paauwe, J. (2009). HRM and Performance: Achievement, Methodological Issues and Prospects. Journal of Management Studies, 46 (1).
Roughton, J. (2002). Developing an Effective Safety Culture: A Leadership Approach (1st ed.). Butterworth-Heinemann. 5 11.
Labor economics currently depends on several marketable skills of employees that invest in various spheres of organizational activities. This dimension of human resource management is essential for understanding both the wage system and investment incentives.
The theory of human capital, therefore, states that human resources are represented through a set of skills, experience, and knowledge have economic value to organizations because they enable it to be productive and adaptable (Jackson 1995, p. 241).
In this respect, people working in organization become the part of its intellectual capital. The full potential of human capital can be fulfilled only through cooperation with an individual. In order to establish favorable relations with individuals, much spending should be directed in training motivating and retaining human capital.
Managers should be concerned with different human resource management approaches contributing to increasing the value of their human capital.
It should also be stressed that contextual factors, including technology, unions, market conditions, and business approaches are significant because they have a direct impact on the costs linked to alternative methods of HRM practices to enhance the value of the human capital of the organization, as well the value of the anticipated returns.
Applications of Human Capital Theory to HRM Practices
The standard strategy in labor distribution considers human capital as a set of characteristics that contributes to an employees productivity.
Human capital, therefore, should rely on efficient methods and techniques that would enhance the intellectual property of an organization. At the same time, there are different views on application of the theory in human resource management practices.
According to Beckers conception, human capital theory should be regarded in the context of the production process. To enlarge on the issues, the theorist suggests that social capital promotes workers productivity in all fields, but to a different extent with regard to the type of organizational activities and situations, a work is involved (Becker 1994).
Within these perspectives, human capital theory is presented as a one-dimensional object and the work labor is considered as a set of knowledge, skills, and experiences which directly affects organizations production rates (Becker 1994).
The importance of investing into intellectual development is equal to the investment made in technological and material development of an organization.
Human capital theory can also be estimated from various angles and, therefore, it cannot be considered as one-dimensional only. In this respect, theorist Garner agrees with the ideas of multidimensionality of the human capital.
In particular, the scholar believes that such an approach would enhance the correlation between physical and mental abilities of employees.
Gardners views human capital through the perspective of multiple intelligences according to which intelligence cannot be regarded as a single ability, but a set of specific modalities, cognitive abilities that allow managers to define in which sphere an employee can contribute most.
It also defines the learning and training programs for the personnel. Such an approach is much more beneficial because it identifies which skills are the most developed among the individuals and which ones are the least developed.
There is also an assumption that human capital implies the capacity to adjust to situations (Shultz 1972). The supporters of this approach argue that social capital theory is beneficial while dealing with constant changing environments to which employees had to adjust.
Inventing techniques to handling changes also contributes to promotion of intellectual capital, as well as to the overall productivity and performance of an organization.
Finally, human capital can be represented through the ability of employees to cooperate and interact in a corporate environment. Such a perspective entails adherence to the principles established by organizational culture (Bowles and Gintis 1975).
According to this view, the main task of human capital theorist is to provide individuals with right missions and goals that would allow them to achieve their personal goals as well. Finally, human capital theory can focus primarily on the individual capabilities, skills, and experiences beyond the production process.
Person-centered approach, therefore, has acquired recognition due to globalization emphasizing importance of cultural diversity issues.
Thus, organizational activities and intelligence should first be considered independently to define the intellectual potential of employees.
All the above-enumerated applications of human capital theory highlight the necessity of its integration into human resources management practices. The approaches should be considered in combination to grasp a deeper understanding of the theory.
Organizations should pay much attention to the organizations mission, goals, and objectives that should be oriented on enhancing corporate social responsibility rather than increasing organizations profitability.
Indeed, focusing on human capital improvement can expand the horizons of marketing approaches because of wider contexts involved into the process. One way or another, workers characteristics must be tackled in the workplace.
Moral and Ethical Implications of the Human Capital Theory
Due to the fact that human capital theory relates directly to the analysis of intellectual capital, it also closely correlates with the moral and ethical principles of organizational behavior. In fact, considering ethics in business environment is essential because it contributes tremendously to economic success of an organization.
Human capital management should strongly rely on moral dimensions, which includes such issues as insecurity and risk, along with surveillance and control. Thus, employees often encounter stressful situations because of the responsibilities imposed on them.
Therefore, managers should be able to create an environment that would minimize the stress. According to Koster (2007), &management seeks for transparent employees in order to select those offering not only outstanding professional abilities and knowledge but also displaying desired behavior, attitudes, motivation, and interests (p. 5).
Consequently, the contemporary practices in HRM introduce a set of techniques promoting the privacy and autonomy policies for employees, as well as enforcing values and attitudes by means of change programs.
The ethical underpinnings of human capital theory can be interpreted through the prism of gender inequality in the workplace.
In this respect, Peil (2009) argues, human capital theory, especially as applied to gender inequality, can be interpreted as emphasizing a utilitarian approach to ethics, in which individuals subjective assessment of their well-being is not challenged (p. 92).
In this respect, both minority groups face challenges while pursuing their personal goals in an organization. With regard to the above-presented applications of human capital theory, particularly to the views of Gary Becker, discrimination is among the most serious concerns in the employed environment.
According to Becker, there are two types of discrimination discrimination in monetary terms and statistical discrimination (Peil 2009).
The latter, according to the theorist, is unethical because it is premised on using characteristics related with groups that replace information about separate individuals (Peil 2009). As a result, managers ignore outdated information, which leads to inadequate generalization.
The human capital should not be regarded as the intellectual property in which monetary and financial investment should be made. Rather, human capital should also be considered a cultural asset of the company which enriches and improves its corporate culture.
Managers should pay particular attention to the encouragement and development of effective network within which employees could enhance their experiences, skills, and abilities. More importantly, they should also feel that their valuable members of the organization.
Accepting human resources as cultural capital contributes indirectly to organizational performance through enlarging organizational values and objectives.
The development of efficient human resources methods should ensures perfectly organized work of individuals who are aware of their roles and responsibilities. Therefore, human capital theory integrates the concept of social capital underlining the importance of cross-cultural understanding and trust among the employees.
Alternatively, lack of cultural understanding and ignorance of ethical norms can lead distrust. In fact, the more opportunistic people become with their bounded economic rationality , the less trustworthy they are , which contributes to the deployment of corruption and bureaucracy (Werhane and Singer 1999, p. 148).
Therefore, such moral values as trust and respect should become the foundation of an organization.
The productivity of workers is associated with not only their abilities and skills, as well as the amount of investment in their development and learning, but also on their motivation, and aspiration to work.
Managers should recognize the fact that motivation in turn partly depends on earning because of the effect on an increase in earnings on moral and aspirations (Becker 1994, p. 57). Therefore, the incentive to develop moral in organization and increase earnings should depend on the same incentives to encourage outside investments.
Therefore, both material and non-material investment into the development of employees can have a positive impact on the organizational development as well.
Despite the assumption that business should not be concerned with ethics, human behavior cannot be adjusted to rational decision making only. In this respect, organizational behavior relies on a set of factors, including social and cultural backgrounds, ethical belief systems, and moral obligations.
In fact, previous considerations on the theory of human capital prove that lack of or poor ethical standards does not contribute to the development of the corruption-free organizational system, as well as to fair cooperation between supervisors and their subordinates.
According to Rose (n. d.), Ethical business creates a positive environment in which to buy and sell, like corruption, poverty, and lack of respect for the environment generate problems for the business community in the long term (p. 28).
The excellence of business operations, therefore, is congruent with the success of the developed code of ethical conduct, which highly relevant for todays globalized business world.
Ethical perspectives of business development are closely associated with the underpinnings of human capital theory. Such a perspective is highly relevant due to the global trends in business community.
This is of particular concern to the development of international standards of ethical codes that should be the guiding principle in an organization.
More importantly, human capital theory significantly contributes to the development of morale because it is connected with exploring human behavior and its influence on human resource management.
Sustainability of Human Capital Theory
Human capital theory has a strong theoretical and empirical foundation because of the growing tendency to apply individual-centered approach while carrying on business. More importantly, the international standards are prone to establishing social welfare as a priority in a corporate world.
In particular, social corporate responsibility provides new perspectives of developing relations between managers and employees because it directly related to the welfare of the entire organization (Ehnert 2009).
In particular, an employee can be considered as an essential stakeholder contributing the development of business. Managers, therefore, should rely on social capital theory while developing new techniques and approaches to treating human resources.
The sustainability of human capital theory also lies in the possibility of considering employees not as a workforce for achieving organizational goals, but also an intellectual asset that should be invested and advanced for the welfare of the business.
Within these perspectives, considering cultural diversity, ethics, and morale should be at the core of organizational development, apart from profitability and productivity (Ehnert 2009). Appreciation of human capital can also allow an organization to take a competitive advantage over other organizations with poor ethical and moral standards.
Sustainable work systems and favorable relations between the employees contribute to the establishment of corporate environment. Applying to human capital theory does not only allow managers to develop a reputable image of an organization but discover new horizons for development.
Therefore, the theory of human capital is a valuable contribution to social resource management techniques. Understanding human capital theory as the study of multiple intelligences can provide new methods of exploring employment and recruitment.
It also enhances retention culture and reduces the turnover within an organization. Finally, human capital theory contributes to integrating efficient methods of measuring employee performance.
Reference List
Becker, GS 1994, Human Capital: A Theoretical and Empirical Analysis, with Special Reference to Education, University of Chicago Press, US.
Bowles, S, and Gintis, H 1975, The Problem with Human Capital Theory A Marxian Critique, American Economic Review, vol. 62, no. 2, 74-82.
Ehnert, I 2009, Sustainable Human Resource Management: A Conceptual and Exploratory Analysis from a Paradox Persuasive, Springer, New York.
Gardner, HE 2006, Multiple Intelligences: New Horizons in Theory and Practice, Basic Books, US.
Jackson, SE 1995, Understanding Human Resource Management in the Context of Organizations and Their Environments, Annual Reviews of Psychology, vol. 46, pp. 237-264.
Koster, M 2007, Ethics in Human Resource Management, GRIN Verlag, US.
Peil, J 2009, Handbook of Economics and Ethics, Edward Elgar Publishing, US.
IBM has a responsibility of taking care of the society; it has a corporate social responsibility (CSR) of ensuring it tries its best to improve education standards of the people who live in the areas it conducts business.
There are various instances that encourage the company to uphold its social responsibility but other circumstances are meant to stop or discourage IBM from undertaking CSR.
IBM is said to be one of the best sources of cash, equipments and manpower that enable nonprofit making organizations to make contributions to help the society. It provides computer and software used in spreading information to less fortunate individuals in the society.
In addition, it also significantly contributes to education; the management of IBM is highly concerned about helping people use technology in order to improve their lives and the community (Brookfield, 2004, p. 204).
Do you think that IBM has the responsibility to support adult education in the communities that it does business? Explain
It is possible that IBM is in a capacity to promote adult education in the areas that it does business. This gives it the responsibility to take care of the society, it is important that it takes consideration of what the society wants.
IBM believes technology innovations can revolutionize business and provide important breakthroughs in the management of various projects.
The company is also committed to ensuring that other organizations involved with the administration of non-governmental organizations that address specific problems in the society are vetted (Albareda et al., 2006, p. 386).
The companys responsibility is notable in many places of the society since it has a number of projects that target the betterment of the lives of challenged persons in the society.
IBM is currently working with KidSmart; a program running in at least 50 countries in the whole world. The project is meant to increase the efficiency of kids and hence the society. IBM has supplied close to fifty computers to all the teachers in their centers in the whole world.
Such a commitment indicates that it can also handle adult education in the same manner (Dilon & Cintron, 2002, p. 94). The most effective strategy towards achieving this goal would have been increasing the capital base of the intellectual adults in the society.
IBM can integrate technology into such a program, since it can create software that can be easy to use in teaching the elderly in the society and it is capable ensuring they get the required knowledge of computers and technology (Dilon & Cintron, 2002, p. 94).
The program is much appreciated by the Egyptians since it does not only teach children how to operate the computer, but also encourages them to learn new life skills, which are important in life management.
In addition, IBM can be able to handle the project since it has fully devoted workers who make sure they give their best at work (Dilon & Cintron, 2002, p. 94).
This was also confirmed by the companys chairman who affirmed that the IBM is determined to maintain a sustainable environment to help those within the environment where it does its business (Albareda et al., 2006, p. 386).
Assuming that IBM has such responsibility, in what instance would it be relatively easy for the company to be committed to living up to it?
It would be easy for the company to continue with the project if the community turns out to be receptive. In case the community, which its staff personnel are working with, is not receptive, IBM would not consider continuing working with them (Russell, 2000, p. 13).
It would not be possible to determine the problem they are suffering from if they do not open up to the companys projects. It would also be hard for the company to offer employment opportunities if they deny the fact that they need help from the corporate world.
The company would also feel encouraged to improve the lives of community (Russell, 2000, p. 13). The other things that would influence whether or not to carry out the project, is the availability of funds that are needed to keep it running. Lack of funds could make IBM lack the materials needed to keep the project running.
In addition, most of the workers working under the project would expect to be paid at the end of the project. However, lack of enough funds would only make IBM prepare its management to squeeze the budget so that it can accommodate all the activities that should be carried out to empower the society (Russell, 2000, p. 13).
The company should take up the responsibility to help the society; however, IBM should be careful not to compromise the profit margin of the shareholders and the employees wages (Brookfield, 2004, p. 204). The company should engage its social responsibility in a way that remains comprehensive and competent in its daily management.
IBM should get involved in activities that are meant to improve the image of the company. Despite the fact that it reduces the profit of the company in the initial stages, it boosts the sales and profits of the company (Brookfield, 200, p. 204).
After assessing the positive and negative effects of starting the project, the company can then decide whether to commence it or hold it back. If there are positive responses concerning the project; then the management of the company should not be hesitant in making up systems and strategies of running the project.
Assuming that IBM has such a responsibility, in what instances would it be relatively difficult for the company to be committed to living up to it?
One of the things that could make the company resistant to committing itself to the society is if the society is not interested in the projects it intends to carry out. If the company is experiencing a loss, it would be reluctant to engage in certain projects for the society (Brookfield, 2004, p. 204).
It is hard to compromise the profit margin of the company since shareholders are not interested in the companys social responsibility.
The other thing that may restrict the company from commencing its responsibility to the society is if there are no proper organizations and strategies; the project is bound to fail terribly if started without a concrete plan. There is a need to have a specific plan that shows the societys responsibility chart.
Before the project commences, it is important that the management and the society representatives have a mutual agreement; in order to agree on the things that should be included in the project (Brookfield, 2004, p. 204).
References
Albareda, L., Tencati, A., Lozano, J. M., & Perrini, F. (2006). The governments role in promoting corporate responsibility: A comparative analysis of Italy and UK from the relational state perspective. Corporate Governance, 6(4), 386-400.
Brookfield, S. (2004). Tales from the dark side: a phenomenography of adult critical reflection. International Journal of Lifelong Education, 13(3), 203-216.
Dilon, C. L., & Cintron, R. (2002). Distance education and the community college: From convention to vision. New Directions for Community Colleges, 1997(99), 93-102.
Russell, M. (2000). Online learning communities: Implications for adult learning. Adult Learning, 10(1), 12-20.
Milton Friedmans goal of the firm is viewed by many people as one of the most senseless ideas that have ever been made in the business world. The idea, which made its first appearance in a New York Times article in 1970, would raise a lot of controversy as many entrepreneurs refuted it for various reasons.
In this popular statement, Milton Friedman had expressed his controversial stand that the only purpose behind business activities is to bring profit to shareholders (Carroll & Shabana, 2010). Many people viewed this as a provocative statement that can be translated as a greedy perception.
Myriad discussions were constantly raised as people in the business world continued to express their criticism on the matter, with majority of them arguing that there is more in business than just generating revenue for the shareholders.
As a matter of fact, Milton Friedmans goal of the firm does not apply to our understanding of the role of business in society. The truth of the matter, however, is that businesses have a large responsibility of taking care of employees, customers, and the society at large.
Employees, who happen to be one of the most reliable assets that companies can ever have, deserve to be recognized and taken care of by the businesses they serve. Businesses also have the responsibility of paying tax to relevant government bodies, thus enabling the government to provide public services to the citizens.
Companies also have the responsibility of ensuring that certain business essentials and requirements are fulfilled in order for them to thrive and survive in the market. This would have the meaning that the society today expects businesses to offer more than just focusing on maximizing profits and revenues for the shareholders.
For example, consumers will always expect to see the best in terms of quality and value in everything that they purchase, and it is therefore the responsibility of businesses to ensure that these attributes are fully met.
More importantly, it is also the responsibility of businesses to keep their working environments safe and clean. Some of the most effective ways through which this goal can be achieved is by manufacturing eco-friendly products and by ensuring that factory waste is properly managed.
As a matter of fact, governments have a role to play in expanding the Friedman discussion. This way, people will get to understand that businesses do have numerous social responsibilities apart from just making profits for the shareholders (Hammond, 2005).
If the sole role of business was to make profits for shareholders as Friedman points out, entrepreneurs will not find purpose in focusing on any other social responsibility apart from maximizing revenues for their businesses. This, however, would bring serious implications on societies who have always benefitted greatly from the vast social responsibilities offered by businesses in the contemporary world.
For example, businesses are arguably the largest source of government revenue, which in turn is used to support communities in various ways. Considering the importance of all these social responsibilities that tend to have a direct impact on peoples lives, there is a need for governments to expand the Friedman discussion.
This, however, would serve as a platform to convince people that, unlike Friedmans idea that profits are the sole purpose of all businesses, there are diverse social responsibilities that are played by businesses in todays world.
References
Carroll, A. B., & Shabana, K. M. (2010). The business case for corporate social responsibility: a review of concepts, research and practice. International Journal of Management Reviews, 12(1), 85-105.
Hammond, J. D. (2005). Theory and measurement: causality issues in Milton Friedmans monetary economics. England: Cambridge University Press.
The major goal of Tesla Motors Inc. is to foster the transition of the world towards sustainable energy development. The company was represented since 2003. It was founded by a team of engineers whose primary objective was to check whether electric cars can be compatible or even better than gasoline ones. However, it is worth stating that the product even exceeded expectations as its first electric cars could compete with dominant brands like Porsche and Lamborghini.
What is the secret of the company? There are a lot of factors that contributed to the prosperity of the company. Perfect marketing strategies to produce electric cars on the premium level, the desire of young and wealthy people to drive on a special car that does not have anything in common with old standards, all these statements contributed to the development of the company.
The company aims to make cars affordable and to reach the fundamental goal, namely to foster the transition of the world to a new level of development. Every newly produced car will be more affordable than the others. In 2008, the company produced a Roadster that has an impressive success on the market. Tesla Roadster was sold with impressive speed. Over two thousand cars were purchased by people from over thirty countries. In 2012, Tesla Motors designed the first electric car of the premium class. Although the history of the company is not long, Tesla Motors is successful in the global market as they provide people with an opportunity to be environmentally friendly and enjoy comfort and innovations. Improvement of energy is the primary goal that the company achieves.
Where
As a matter of fact, the company sells cars not only in America but internationally. According to the analysis of the geographical area of Tesla Motors sales, the United States is the country where these cars are sold most. The second place is for Norway and China. In addition, it is worth stating that the cars are sold in Europe as well. It is related to the ideas and beliefs of people and governmental politics. The society that cares about the environment is sure to consider Tesla Motors not only for zero emissions, but that the cars are high quality, safe, and modern as well.
The gigafactory plant is an integral part of the plan of Tesla Motors. The plant is situated in the United States, Nevada, and is focused on the production of batteries. It will help to increase the production of electric vehicles and reduce their cost. The plant is to be built by 2017.
Why
The reason the company decided to turn attention to global strategies is evident as the company aims to influence the world and to foster the transition to the products that are environmentally friendly. It should be noted that Tesla Motors globalize to reach a bigger global market and to engage as many customers as possible. It is understandable because the more customers going to buy electric cars the better it will be for the environment, and it reflects the fundamental objective of Tesla Motors.
Tesla Motors has already attracted the attention of investors from all over the world. According to recent researchers, there are good chances for investors to have good returns from the company. However, it is worth pointing out that the technologies that Tesla Motors currently uses are innovative and new. On the one hand, it is beneficial; nevertheless, on the other hand, it is not clear yet how these technologies will function in the future. Tesla Motors aims to enter the market of other European countries and discover the Asian market as well.
It took ten years to perform the first task, namely to show the world that electric cars can be profitable. The next step is a more global mission, namely getting rid of oil dependence and attracts as many users as possible.
How
Tesla Motors implement their management strategies to influence the situation of the environment in a positive way. The company designs its car with fewer details than ordinary cars. Tesla Motors is almost independent of the heavy chemical industry. The only things that can be changed are wheels and batteries. The service centers are almost not needed, and it is a threat to car mechanics.
The company invests impressive amounts of money for building plants and factories. They locate all the plants on the territory of Europe and the United States, in contrast to other world-famous companies that turn their attention to the Asian countries to make the product cheaper and use cheap workforce. However, this year Tesla Motors decided to locate one plant in China. This decision is essential for the companys success in the Chinese market. The organization does not use the products made by other companies and invents everything based on own facilities.
Tesla struggled with sales in China. It was related to the impressively big difference in price for Americans, Europeans, and Chinese people. The fact that the cars need to be shipped to Chine over the ocean made the price bigger. However, the Tesla plant in Chinese will solve this issue.
Tesla Motors cooperate with Daimler, which has 10% of the company. Daimler invests in Tesla, and their collaboration can be considered as a prolific one as Tesla cars are the only electric cars represented on the market of North America and Europe. They closely cooperate to make progress in the production of lithium-ion batteries and individual projects. Thomas Weber stated that:
Our strategic partnership is an important step to accelerate the commercialization of electric drives globally. As a young and dynamic company, Tesla stands for visionary power and pioneering spirit. Together with Daimlers 120 years of experience in the automotive sector, this collaboration is a unique combination of two companies strengths.
As it was stated before, the expansion of the global market is the primary objective of the company. Although the company is relatively young for the automobile industry, it is considered to be the most innovative and creative.
Tesla and German carmaker BMW want to expand the network of Tesla charging stations. Two companies are discussing the ways to increase the popularity of electric cars, as well as the possibility of unification of charging stations. Tesla is interested in such collaborations as their goal is to make electric vehicles more popular. That is, such cooperation is seen as an advantage.
Tesla Motors produces the types of cars can be used in every country in the world, and that is there is no need to adapt the models to the particular market needs. Comfort and safety receive primary focus and concern. However, it should be stressed that according to the feedback from Chinese customers, the company implemented modifications for Model S with executive rear seat option . The needs of Chinese people differ from the European or American market, and that is, to satisfy the customers Tesla Motors makes some modifications. The organization does not have a joint venture in this country. In contrast to Tesla Motors, Ford and General Motors have joint ventures with Chinese companies. The growing popularity of Tesla in China will consequently lead to the establishment of partnerships with domestic organizations.
Bibliography
Doeden, Matt. SpaceX and Tesla Motors Engineer Elon Musk. Minneapolis: Lerner Publications, 2015.
A mission statement describes the reason why a company or a business organization was formed. It gives guidance to the organization activities and its achievement of long term goals. A vision statement gives the picture of the company. It inspires the strategic planning of the organization.
The vision statement outlines what the organization wishes to achieve and how it will achieve it. Values statement outlines the benefits of the organization that are shared among the stakeholders (The business vision and company mission statement, 2007).
This essay analyses the mission, vision and values statement of Kraft Foods Group and gives recommendations on how the statements can be improved.
Companys Mission Statement and Analysis
The mission of Kraft Foods Group is to be North Americas best food & Beverage Company (Kraft, 2013). This mission informs that the organization cares about improving the lifestyles of their consumers. Its mission is to provide the best quality foods and offer the best services in the region.
Providing best foods and beverages also means that the company aims at providing healthy food that will benefit the consumers in terms of their health. This mission statement holds a lot of information about the company.
It speaks a lot about the products and the services that the organization provides. By reading the mission statement, one is able to know that the services provided there are of high quality and that they are aimed to provide absolute satisfaction and value for money.
In addition, the mission statement informs the customer that The Kraft Foods Group is an organization that is concerned with the well -being of their customers. The organization is not just aimed at making profits.
Rather, it also ensures that the foods they provide are healthy, and that they are not harmful to the health of consumers. The organization aim is to be the best in all categories, which include services, food taste and quality, customer and employee satisfaction.
The mission is an accurate one for an organization like Kraft Foods Group. It has a heritage that it is aiming to have a future that is even brighter and greater (Welch & Welch, 2008).
Companys Vision and Analysis
The companys vision is to make a legacy (Kraft, 2013). This is a very interesting vision by Kraft Foods Group since it gives the reader a very big picture of what the organization is really about. For one to leave a legacy, first they must have made a rare achievement.
Second, they must have done the best compared to the rest of the competitors. Therefore, the company aims to provide the best services to be distinguished from the competitors in order to make a legacy.
By doing so, it will have to help people eat well and live better by providing quality food. The vision is the one that guides the organization activities, and it is actually written in bold on the first page of their website.
They have to meet the consumer needs and ensure satisfaction. The company has to treat its employees in a distinct manner.
Every stakeholder is expected to act in the guidance of this vision (McNamara, 2009). The company is aiming at having a great future, and this is in line with its vision to make a legacy.
Companys Values and Analysis
The companys website does not give a clear statement about its values. However, close examination of its activities can give an idea of its values. The values of Kraft Foods Group are safety, quality, innovation, integrity, and respect.
These values can be summed up in one word; responsibility (Kraft, 2013). From its mission which is to become the best food and beverages company in North America, it is clear that the company values quality and innovation.
These are the two values that can be highly effective in making it the best. It is important to note that innovation is the life blood of most organizations today. As a result, valuing innovation will definitely take the company to greater heights as it aims to be in the future.
The company also aims at providing the best foods to their customers. This is an indication that it values respect to their customers and it embraces integrity in that it does the right thing to both its customers and employees (McNamara, 2009).
Alignment of Companys Mission, Vision, Values, and Goals with Stakeholders Interests
The stakeholders of any company are people who have varying interests in the organization. They include customers, employees, shareholders, as well as the managers and directors (12manage.com., 2009). Each of the above stakeholders aims to get maximum benefits from the organization.
As a result, the mission, vision, and the values of the company must be in line with the interests of its stakeholders (Luca, 2007). The mission statement should not be filled with jargons, which do not give direction to the organization.
Most companies have failed to succeed since their mission statements lack clarity, and it becomes difficult for such organizations to pursue any objective. The mission statement should be long- term. It should give the long term objectives of the organization.
It should answer the questions of: What is the purpose of our organization? Where do we want to be in the future?
The vision of an organization, on the other hand, gives the short term objectives of the company. The vision should give guidance to the day-to-day activities of the organization. It should be short and clear. The vision leads to the attainment of the companys mission.
Finally, the values should give guidance to what the organization stands for. It is important for any organization to have strong values that will give it a competitive advantage (Heathfield, 2009).
The mission of Kraft Foods Group is to become the best food and Beverages Company in North America (Kraft, 2013). This mission statement is one that gives a long term sight for the organization. It is a short statement, but it carries a lot of weight.
Being the best in North America indicates that the company will offer the best quality products and services to create a strong consumer base. This is in line with the customer interests since customers wants to get the best from any organization.
The vision of Kraft Foods Group is to make a legacy (Kraft, 2013). Therefore, it thrives to be the best in terms of services provision. This vision leads to satisfaction of customer needs since the company aims at offering safe and healthy foods.
This will increase the level of sale and hence cater for the shareholders interests. The success of the organization is the major interest of its managers and directors. The company also values employees, thus all their interests are catered for.
Workplace and culture are outlined as the responsibilities of the company. Through corporate governance, the rights of shareholders are respected and valued. Kraft Foods Group has the outline compliance and integrity as one of its responsibilities (Heathfield, 2009).
Therefore, it complies with all the legal requirements that are laid by the government. The interests of the government as a stakeholder are, therefore, aligned with the mission statement, vision and values.
Recommended Changes
The mission statement of Kraft Foods Group is one that can be admired and shows the commitment of the organization toward achievement of its goals. To be the best, there must be commitment from all stakeholders. However, the mission is too general and may sound unattainable.
The mission could be made better by categorizing their goals. For instance, the statement could state that Kraft Foods Group wants to be the best retailer in the region or aims to make the most sales. This sounds more attainable and the stakeholders will direct all their efforts towards that.
In the process, the company will eventually become the best in North America. On the other hand, the vision statement of Kraft Foods Group is to make a legacy. In my opinion, the vision statement could be improved by outlining the ways in which the company intends to make that legacy.
This would give a more clear guidance to the employees. The values of the organization are the best that any organization would have. However, it can be added on by including its cultural and change value.
Conclusion
The mission, vision and value statements of an organization are very important since they give guidance to its activities. They give a description of the purpose of the organization and also the fate that it wants to achieve in the future.
It is, therefore, important that when the managers and directors of an organization are designing its mission, vision and value statements, they should take time to think critically about what is best for that organization.
References
12manage.(2009).Stakeholder analysis. Assessing who or what really counts. 12manage: The executive fast track. Web.
Heathfield, S. M. (2009). Build a strategic framework: mission statement, vision, values. Web.
Kraft, (2013). Kraft. Web.
Luca, A. M. (2007). Organizational stakeholders. Power Point presentation
It is imperative to note that corporate social responsibility is a fascinating topic that is actively discussed by scholars. The role of this concept has been increasing, and many companies have focused on the development of numerous strategies and approaches (Mullerat & Brennan 2011). Understandably, the primary goal of every firm is profit, and it would be beneficial to deliver the information regarding such activities to the public to increase the level of trust and to avoid possible risks (Combs & Holladay 2011).
Sustainability reporting is the process that is focused on the provision of information regarding vital decisions made by an organisation and is mainly focused on environmental and social aspects (Carnevale & Mazzuca 2014). It is paramount to understand that sustainability has become vital because of the enormous demands of customers (Brinkmann 2016). Furthermore, this term has become closely connected with social responsibility, and it has led to changes in reporting.
Discussion
Many individuals are willing to support only socially responsible enterprises. Moreover, many think that it should be viewed as an essential part of every business, and can be regarded as a viable business strategy. One of the most significant differences between these two approaches is that the Inditex Group devotes much more attention to the development of sustainability reports and it is possible to state that they are aimed at different audiences (Inditex annual report n.d.). The problem is that companies in this industry have been criticized because of the use of cheap labour, and it has been trying to take the necessary measures to resolve this problem (Perez 2014).
Moreover, Inditex Group has devoted enormous attention to this aspect and has developed a range of policies to ensure that child labour is not used, discrimination in the workplace is not acceptable, working hours are appropriate, and other vital aspects are taken into account (Code for manufacturers and suppliers n.d). Coca-Cola Company acknowledges the fact that consumers are incredibly interested in the product, and they are worried about possible harm to their health. Moreover, it tries to ensure that all of the core aspects of sustainability are addressed. Sustainability goals that are set by the enterprise are quite high in most cases, and it will not be an easy task to accomplish them in the coming years (see Table 1).
Table 1: Coca-Cola Companys environmental goals.
Water stewardship
One billion dollars invested.
Energy and climate
Five and a half millions of energy-saving devices set-up. Energy efficiency has been improved by twenty-one per cent.
Packaging
Severn hundred and forty-three thousands of barrels of oil retained.
Agriculture
Offers support to twenty-five thousands of farmers.
Both companies operate according to the guidelines suggested by the United Nations Compact for Business. This policy is focused on human rights, labour, environment, and anti-corruption (Wallace 2014). Furthermore, it can be seen that both Coca-Cola Company and Inditex Group acknowledge the fact that these principles should be respected and focus on them in their reports. The need to focus on the health and well-being of customers also needs to be acknowledged.
The problem that the company frequently has to deal with is that the brand is associated with its adverse effects in most cases. There is an enormous difference in resources that are used by the companies. The fact that Coca-Cola company has to use significant amounts of water to produce its products makes the company responsible when it comes to issues that are related to this topic. Furthermore, the enterprise is participating in water-use reduction programs (2014/2015 Sustainability Report 2016).
The company is willing to provide enormous amounts of resources to regions that are in need because it recognizes that this resource is valued, and all necessary measures should be taken to ensure that its use is reduced and people that need it the most can access it. However, Inditex also supports similar activities because it recognizes that it regards it as a global program that needs to be addressed (Global water management strategy n.d.). Decisions of Inditex are mostly based on the principles of sustainability, and it has developed a set of policies to ensure that such rules are respected (see Table 2).
Table 2. Inditex sustainability programme.
Product
Focus on health standards and quality.
Employees
Support of positive workplace environment.
Supplies
Code for suppliers is well-developed to avoid possible issues.
Community
Enormous amounts of money are used to support social programmes.
Environment
Energy is preserved, and biodiversity is protected.
It is necessary to understand that one of the primary reasons the differences between these approaches is so enormous is that the dissimilarity between these two industries is tremendous. Inditex Group is not pressured by the public as much, and the risks related to environmental damage are not as significant. Also, the quality of products offered is another aspect that is worth noting, and the enterprise is pressured to ensure that only the best available materials are used for manufacturing.
Coca-Cola Company participates in numerous conferences and forums to discuss issues that are the most important and needs of stakeholders are also taken into account. The biggest difference that should be noted is that it pays much more attention to needs of women, and the firm has acknowledged the fact that such problems as inequality and unfair treatment should be addressed (see Table 3).
Table 3. Primary objectives.
Coca-Cola Company
Inditex Group
Sustainable agriculture
Energy
Workplace rights
Store sustainability
Protection of women
Emission mechanisms
Conclusion
In conclusion, numerous differences between the approaches used by these two companies are present. It is imperative to understand that enterprises try to address aspects that are viewed as the most problematic by stakeholders most of the time (Blowfield 2013). Another aspect that is worth noting is that the focus on such activities helps to increase the level of prestige of a particular brand. Both firms do not want their products to be viewed as low-quality, and the focus on social responsibility allows influencing the opinion of the public.
Reference List
2014/2015 Sustainability Report 2016. Web.
Blowfield, M 2013, Business and sustainability, Oxford University Press, Oxford, UK. Web.
Brinkmann, R 2016, Introduction to sustainability, John Wiley & Sons, New York, NY. Web.
Carnevale, C & Mazzuca, M 2014, Sustainability reporting and varieties in capitalism, Sustainable Development, vol. 22, no. 6, pp. 361-376. Web.
Code for manufacturers and suppliers n.d. Web.
Combs, TW & Holladay, SJ 2011, Managing Corporate Social Responsibility: A Communication Approach, John Wiley & Sons, New York, NY. Web.
Global water management strategy n.d. Web.
Inditex annual report n.d. Web.
Mullerat, R & Brennan, D 2011, Corporate Social Responsibility: The Corporate Governance of the 21st Century, Kluwer Law International, Alphen aan Den Rijn, NL. Web.
The primary purpose of accounting is to provide useful and detailed intelligence for those who want to use the information to make critical decisions. In other words, accounting help various individuals acquire necessary material information that aids them in their day-to-day investment decisions. Other objectives include Full Disclosure, which is a concept in financial accounting that requires release of all the facts that are material to financial statements.
This is because failure to avail them may lead to misleading information in the financial statements: statement of financial position and statement of financial performance. The material facts include all the receipts and other assisting evidence related materials. It is important especially when auditors come to vet the authenticity of the information. In fact, it makes it easy for auditors and government tax officers to trace the originality of the records in an organization (Hooper, Davey and Presscot, 2009).
Importance of Accounting
At the end of every fiscal year, accountants prepare financial statements. Thanks to the accounting process, the preparation of these statements made easy. Accounting helps managers make critical and sound decisions that may have a large impact to the organization as a whole. The third role of accounting, we find that it is a career disciple. Hence, it is a means of living hood. Thanks to accounting process, managers are able to calculate their returns after every fiscal year.
Basic Terminologies of the Accounting Process
The accounting process otherwise known by many as the process of financial reporting has some basic terminologies. These include:
Assets- they are items an entity owns. They act as its capital to be able to provide products and services.
Liabilities: these are the debts that a business entity owes the public in the event of service and goods provision.
Expenses: refers to the consumption of assets because of providing goods and services to clients.
Revenues: They are assets received because of provision of goods and services to clients.
Accounting Principles
The first principle is the historical cost principle. This principle mainly affects the statement of financial position. The historical cost principle encourages managers to present transactions in terms of their fair values on the financial statements. That is, the buying price of the asset and the amounts paid to obtain a liability. The implication of this is that, the statement of financial position can only show items at their cost price without taking into account the effects of inflation (Hooper et al. 2008).
The second principle is the matching principle. This principle provides a way of measuring profitability. The matching principle advocates for the comparison of revenues earned in a specific period with the costs of the same period. This principle mainly affects the statement of comprehensive income. The other principle provided for by (IAS1.27) is the principle of revenue recognition better known as accounting on accrual basis. This principle requires management to recognise revenues at the point where earning occurs and not the point where money is received.
The fourth principle is the objectivity principle. Here, an entity is required to prepare financial statements that are unbiased. The financial statements should be fair to the extent that, any third party contracted to review them, should come up with the exact same information. The fifth principle is the consistency principle (IAS 1.39). This principle requires entities to treat similar transactions and events in the same way in every accounting period.
Ethics in the Accounting Practice
Ethics is a field of study that tells an individual what to do and how to do it. It tells an individual the good and bad in our day-to-day activities.
In the accounting field, ethics guides accountants on what to include in the accounting process or the preparation of the accounting statements.
Role of Technology in the Accounting Process
Technology has played a key role in the accounting process. For instance, the debit and credit processes are now very easy. Evaluation of the transactions is now accurate and efficient. It thus enhances its effectiveness. It saves time. The accounting practice has really made an impact in my life as through it, I have learned to be responsible and in addition, it has taught me on how to be ethical let alone give back to the society (Drever, Santon and McGoan, 2007).
References
Drever, M. Santon, P. & McGoan, S. (2007). Contemporary Issues In Accounting. Australia: John Wiley.
Hooper, et al. (2008). Conceptual Issues in Accounting: A New Zealand Perspective. Melbourne: Cengage Learning.
Hooper, K. Davey, H. & Presscot, S. (2009). Conceptual Issues In Accounting:A New Zealand Perspective. Melbourne: Cengage Learning.
Evaluate the site in terms of scope, usefulness, authority, content, reliability, and structure.
Scope
This website has been designed to respond to various issues that a customer may want to get informed about. In respect to scope, this site is a complete shop. It has a variety of home products which can be sold directly to the customers. The site has products with their prices clearly indicated. A consumer who visits the shop would have the opportunity to have a view of the item he or she would like to purchase with the help of graphics used in the site. The site also provides the customers with the ability to shop around by offering a variety of products at different prices. A consumer would, therefore be in a position to choose the product that satisfies his or her needs and is affordable (Sadler 2003, p. 68).
Content
The site has content that is not only informative to the customers but also very relevant. The site offers information and news to the customers. The site has directions to the firms Facebook page, the tweeter and YouTube. Through these social sites, customers would be in a position to access a lot of information and news from the firm. However, this page lacks any form of entertainment. There is no item that may be taken to be for entertainment for every object in the site is either a product on sale or a direction to guide online buyers.
Usefulness
On the basis of usefulness, the topics that are covered are very relevant to the needs and purpose of the site. The site is meant to sell home-based products. This is exactly what the site has, and it provides this in the best way so far. For instance, in the section named All lighting, customers are provided with a variety of lighting products to choose from (Huber & William 1993, p. 34). The customer would be in a position to determine which of the products best satisfies his or her needs. This page also offers originality of information. The information found in this site is basically concerning the firm, and none is duplicated from another site.
Authority
Based on authority and structure, the site commands a lot of authority due to the expertise used to develop the site. Although the site has no direct affiliations on the page, it is convincing in its own context.
Reliability
The site is also very reliable. The information found on the website is the same information that is in its stores. The information is also relevant to the products in the stores.
Structure
The structure of the site is also up to the right standards. It has a standard site with a consistent layout throughout the theme. The graphics used also provides the information that a customer would be interested to know.
Appraise the companys strategic approach towards achieving their objectives by means of a website and discuss whether, in your opinion, their web presence is fully aligned with their organizational strategy and provides an adequate means of trading.
This company, being a retail outlet, has its main objective as acquiring as much of the market share as is possible to facilitate increased sales volumes of their products, hence increased profits. According to Kline (2010, p. 38), the current market situation calls for a marketing strategy that employs an outward-in approach to marketing, or what many has always described as social marketing. This strategy holds that although the ultimate goal of any business entity is to make as much profit as would be possible, a business firm should try not to make this a priority (Charantimath 2006, p. 89). It should consider wining the trust of the market by attracting as many customers as would be possible before considering making the profits. The companys strategic approach towards achieving objective by means of the website has been achieved by means of the web architecture. The website has been designed in a way that it provides an image of the company as that which response to the market demands. The site is interactive, allowing users to receive communication from the firm and communicate back.
It would be valid to state that the web presence of this firm is aligned with their organizational strategy and provides an adequate means of trading. This industry is very competitive. Firms are coming up with similar products within the same market, heightening the level of competition. It is, therefore, in the interest of the firm to acquire as much of the market share as would be possible (MacDonald 2003, p. 78). This way, it would be able to shield itself from the market competition that might threaten to eliminate it from the market. There are various strategies that firms always employ in order to ensure that they attract as much of the market share as would be possible. One of the ways of doing this is by offering quality products. The website has used graphics that clearly show that the products are of high quality. The fact that the site shows that the firm offers a discount to the customers also demonstrate the strategic objective of attracting more customers through attractive pricing strategy. Moreover, the site also shows that the firm has ensured that buyers can get as much of the product as they might need at a one-stop-shop.
Identify the business model/s utilized on this site and justify your identification. From the perspective of keeping the e-business trading over time, how important is flexibility, in terms of business models in your opinion?
The first business model that is very evident on this site is the merchant business model. This site leaves no doubt that the firm is trading, and that it is an outlet to various products. The site provides customers with the ability to not only view various products that are available in the stores but also allows them to make direct purchases of the products that are identified to meet the expectations (Niederst 2006, p. 45). Like a conventional brick and mortar store, this site provides customers with a variety of products, each priced differently, depending on the quality and the level of service delivery. Like a conventional store, the site provides customers with a variety of products from different brands. It passes for a typical shop.
This site may also be considered to have elements of Community business model. This is demonstrated by the fact that the firm has embraced the technology of social media. This site has embraced the three leading social media: Facebook, tweeter and YouTube. These are sites that have managed to use technology to enhance community structures within the world society. They have enhanced sharing of communication within members of the community (Warner 2011, p. 46). It also has a subscription model, where customers can subscribe to receive newsletters through their emails. This model has become very popular in the recent past. This way, business units are in a position to sent customers information regarding their products. In itself, it is a form of advertisement to the firm.
Evaluate the Identify the key security concerns and discuss ways in which the company can enhance its e-commerce security policy.
Some of the concerns that have always been raised when using e-commerce, as opposed to brick and mortar selling are issues concerning identity and security concerns. This site has managed to develop its identity by coming out as a unique site that offers customers home-based products. However, there are various security concerns that such a site would be prone to. For instance, the firm would be concerned about the possibility of the user breaking into the server, or the user disrupting the server and making it vulnerable to other users. Other security concerns may include such issues as virus, hacking, confidentiality, integrity and confidentiality.
These are issues that are always important and should be considered by the firm if it is to manage e-business without disruption. There are a number of ways in which the company can enhance its e-commerce security policy in order to remain competitive in the market. One way of doing this would be by introducing Security Socket Layers. This is a protocol that uses certification to ensure that the integrity and confidentiality of data are maintained (Freeman 2010, p. 45). It is encrypted in such a way as to eliminate any chances of hacking by malware manufactures or any other internet guru who might have ill motive towards the firm. The firm can also use network securities to protect their site from intrusion. This may involve the usage of firewalls, virtual private networks and intrusion detection system to ensure that the entire system is always protected from any unnecessary intrusions. This is necessary to ensure that the firm protects its site from intrusion by hackers or such other cybercriminals. This will also protect the firms customers. Customers need to be protected from individuals who may intrude into their private e-mails.
List of References
Charantimath, 2006, Total Quality Management, Pearson Education, New Delhi.
Freeman, E 2010, Strategic Management: A Stakeholder Approach, Cambridge University Press, New York.
Huber, P & William, G 1993, Organizational Change and Redesign: Ideas and Insights for Improving Performance, Oxford University Press, New York.
Kline, J 2010, Ethics for International Business: Decision-Making in a Global Political Economy, Routledge, New York.
MacDonald, N 2003, What Is Web Design, Rotovision, New York.
Niederst, J 2006, Web Design in a Nutshell: A Desktop Quick Reference, OReilly Media, Inc, New York.
Sadler, P 2003, Strategic Management, Kogan Page, Publishers London.
Warner, B 2011, Organization Change: Theory and Practice, Sage, Thousand Oaks.