a) Identify two internal stakeholder groups suggested in the above case study.
Employees - the strike regarding pay and benefits affected the employees. The employees will have a stake in the organization they work for.
Managers and directors - This group is suggested because their own benefits and source of income is decreasing as well as affecting the entire firm. It also affects the long term health of the firm which is supposed to be taken care of by the managers.
b) Explain one conflict that exists between the different stakeholders in the case study
The conflict exists between the employees and the managers/directors. Employees went on a strike probably due to a decrease in salary/wage or a benefit. Increasing the managers and directors salary would be negatively impacted. There could have been an increased demand in profit by the shareholders, leading to a negative effect on the pay for employees.
c) Discuss how the conflict outlined in your answer above could be minimized.
Employing a public relations firm would be the best suitable answer to minimize the conflict. This would therefore aid Skoda to spread their positive energy and work done. communication also with their stakeholders (employees, managers and directors, local community) could minimize this conflict. Also, if the employees decide to end the strike, Skoda could provide them with their salary with any cuts or limitations and continue to sell. Soon, there will be an increase in earnings leading to a profit and a happy work force, all shareholders will gain part of increased profit.
Tuesday, December 29, 2009
Saturday, December 26, 2009
Economic Growth pg 82-83
Cycle phase: Peak or Boom
Features:
Features:
Features:
Cost reduction -
Growth via improved quality factors of production needs an investment in many of the key resources. examples include:
education and training: The labor force would work more efficiently and productively if they undergo intense training and more education.
health technology: This technology helps keep the work force healthy, which certainly means that a healthy work force works better. This can also keep the work force intact and no retirements etc due to sicknesses.
Capital goods: the higher the economic growth as the the level of investment
5) How can the labor force of a country change?
The labor force of a country could change due to the following reasons:
LEDC's are economically less developed countries, or poor countries. These countries find development a great challenge, therefore, working as a barrier against companies who are wanting to expand overseas. One of the important barriers that LEDC's face is the lack of infrastructure. This can be defined by countries that do not have needs such as electricity and road networks for transportation.
Another barrier faced by poor countries is the rapid population growth. The more the population, the more the strain on the country to feed its population therefore affecting growth.
There is a lack of technical knowledge and a skilled labor force in LEDC's however it is certainly required to generate economic activity and growth, therefore, creating another barrier.
LEDC's are required to pay loans that have increased due to interests, hence, leaving a little money for development. this is called 'suffering a high foreign debt repayment' and is another barrier to economic growth.
Features:
- economic activity at highest level
- consumer expenditure, investment, export earnings high
- unemployment low
- employees likely to receive raises
- higher levels of profit
Features:
- occurs when dip in level of economics activity for 2 consecutive quarters (1/2 year)
- declining aggregat demand
- lower investment expenditure
- falling export sales
- rising unemployment
Features:
- bottom of recession (last stage of decline)
- high level of unemployment
- low levels of consumer spending, investment, export earnings
- occurs when level of GDP starts to rise again
- consumption, investment, ecports, employment will gradually rise
Cost reduction -
- methods such as decreasing lighting and energy bills
- better prices in all matters to decrease total costs
- relocation to cheaper location
- finally, reduce workforce
- this can aid to increase sales or maintain the number of sales
- the population is more aware of decrease in prices during recession, especially, vehicles
- special offers and repackaging
- this can help increase the sales of products
- production should occur overseas where the costs are lower therefore giving the firm an edge over others, competitive prices, profit can be increased as well --> therefore, reducing impact of recession
Growth via improved quality factors of production needs an investment in many of the key resources. examples include:
education and training: The labor force would work more efficiently and productively if they undergo intense training and more education.
health technology: This technology helps keep the work force healthy, which certainly means that a healthy work force works better. This can also keep the work force intact and no retirements etc due to sicknesses.
Capital goods: the higher the economic growth as the the level of investment
5) How can the labor force of a country change?
The labor force of a country could change due to the following reasons:
Changes in demography: A decrease in birth rate in developed countries has led to a smaller workforce because of the ageing population. On the other hard, baby boom could lead to a larger workforce in a few years time.
Changes in participation rates: Participation rates is defined by the number of people who are self employed or employed as % of total labor force. higher percentage rate caused possibly by government incentives (eg: lower income tax)
Changes in net migration: immigration (number of people entering country for work), emigration (those leaving a country). net migration figure positive --> size of workforce increases, therefore aiding productive capacity of economy
6) Describe barriers to growth for LEDC's.LEDC's are economically less developed countries, or poor countries. These countries find development a great challenge, therefore, working as a barrier against companies who are wanting to expand overseas. One of the important barriers that LEDC's face is the lack of infrastructure. This can be defined by countries that do not have needs such as electricity and road networks for transportation.
Another barrier faced by poor countries is the rapid population growth. The more the population, the more the strain on the country to feed its population therefore affecting growth.
There is a lack of technical knowledge and a skilled labor force in LEDC's however it is certainly required to generate economic activity and growth, therefore, creating another barrier.
LEDC's are required to pay loans that have increased due to interests, hence, leaving a little money for development. this is called 'suffering a high foreign debt repayment' and is another barrier to economic growth.
Monday, December 7, 2009
Task 1.4 - Stakeholders
1) On your blog, briefly describe each of the internal and external stakeholders of a company, including all SIGs.
Internal stakeholders of a company:
Employees:
the staff working at business will have stake (an interest) in the firm or company. Employees try to achieve new targets and perform well for benefits such as -
-pay and other financial benefits
-working conditions
-job security
-training and career progression opportunities
A stake of company can be offered to employees only if the business is performing well.
Shareholders (Stakeholders):
owners of private and public limited companies. Shareholders invest their money in a company by purchasing the companys shares because of their research and how they expect the company to perform well for a good return on their investment. this is a powerful group of investors because they have voting rights. Also allowed to share company's profits. shareholder is an individual or group with an interest in an organization.
External stakeholders of a company:
-include suppliers - provide business with stocks of raw materials, component parts, finished goods and other resources for production
-include customers - Customer relations management very important in retailing sector
Special Interest groups (SIG)
This group advertises issues such as prevention of animal cruelty and environment protection. Pressure group is one of the examples of SIG. Individuals in this group place demands on organization to act in a certain way to manipulate the organizations behavior. One more example of SIG is Industry Trade Groups. These are groups that specialize in public relation in promoting one particular industry, usually using education and advertising.
2) What determines whether an SIG will succeed in their objectives?
Funding: the greater the amount and variety of financial resources, the stronger the SIG
Public opinion: SIG is more likely to succeed if the the general public are supportive and sympathetic of the cause promoted by SIG.
Number of members: the more the number of active members, the more influence SIG will have.
Commitment of members: consists of individuals who believe deeply in the cause, SIG will strengthen its influence.
3) What factors determine whether a busines should take notice of an SIG?
Effectiveness of the SIG in attracting attention: stronger the SIG, more the influence, more the pressure on the business
Market power of business: if business consists of monopoly power, business does not have to consider SIGs demands
Costs of complying with the demands of the SIG
Views of directors, senior managers and shareholders: if directors and owners believe that not complying with the SIG would cause damage, more likely to pay attention to SIG.
Aims and objectives of business
Internal stakeholders of a company:
Employees:
the staff working at business will have stake (an interest) in the firm or company. Employees try to achieve new targets and perform well for benefits such as -
-pay and other financial benefits
-working conditions
-job security
-training and career progression opportunities
A stake of company can be offered to employees only if the business is performing well.
Shareholders (Stakeholders):
owners of private and public limited companies. Shareholders invest their money in a company by purchasing the companys shares because of their research and how they expect the company to perform well for a good return on their investment. this is a powerful group of investors because they have voting rights. Also allowed to share company's profits. shareholder is an individual or group with an interest in an organization.
External stakeholders of a company:
-include suppliers - provide business with stocks of raw materials, component parts, finished goods and other resources for production
-include customers - Customer relations management very important in retailing sector
Special Interest groups (SIG)
This group advertises issues such as prevention of animal cruelty and environment protection. Pressure group is one of the examples of SIG. Individuals in this group place demands on organization to act in a certain way to manipulate the organizations behavior. One more example of SIG is Industry Trade Groups. These are groups that specialize in public relation in promoting one particular industry, usually using education and advertising.
2) What determines whether an SIG will succeed in their objectives?
Funding: the greater the amount and variety of financial resources, the stronger the SIG
Public opinion: SIG is more likely to succeed if the the general public are supportive and sympathetic of the cause promoted by SIG.
Number of members: the more the number of active members, the more influence SIG will have.
Commitment of members: consists of individuals who believe deeply in the cause, SIG will strengthen its influence.
3) What factors determine whether a busines should take notice of an SIG?
Effectiveness of the SIG in attracting attention: stronger the SIG, more the influence, more the pressure on the business
Market power of business: if business consists of monopoly power, business does not have to consider SIGs demands
Costs of complying with the demands of the SIG
Views of directors, senior managers and shareholders: if directors and owners believe that not complying with the SIG would cause damage, more likely to pay attention to SIG.
Aims and objectives of business
Monday, November 23, 2009
Ethical Objectives and Corporate Social Responsibility
1)Define
a) Ethics - moral principles that guide decision-making and strategy
b) Morals - relates to what is considered to be right or wrong, from people's points of view
c) Corporate Social Responsibility - socially responsible firms that act morally towards stakeholders (employees, local community)
d) Social Auditing - independent assessment of a firms actions affecting society. for example, could include a firms environmental impact.
2) Give 3 examples of unethical business behavior.
- financial dishonesty - deliberate misrepresentation to make money
- environmental neglect - harmful to environment
- exploitation of the workforce - mistreatment of staff
3) What are the advantages and disadvantages for business who behave ethically?
Advantages include:
-improved corporate image - increased reputation of business
-increased customer loyalty - more loyalty shown towards those companies that follow ethics and follow certain morals.
-cost cutting - costs of production could be decreased using ethics
-improved staff motivation - ethical behavior can help motivate employees to work harder and honestly
-improved staff morale - this includes the ability to recruit higher quality staff who are willing to work for a business that follows ethics and are morally stable.
disadvantages include:
-compliance costs - high costs for businesses acting ethically
-lower profits - if no compliance costs are charged, profit is under question.
-stakeholder conflict
4) How does CSR help a business compete?
CSR improves a firms reputation because of their desire to act in a socially responsible way. This, therefore, means better sales and more investors for the company. Hence leading to more money and profit. An example of a successful business is the Body Shop. It is certainly a trustworthy business.
5) Why is a social audit undertaken by business?
Businesses undertake social audit to make sure the socially responsible objective are in action. Businesses undertake this to see how it's actions are affecting the society.
a) Ethics - moral principles that guide decision-making and strategy
b) Morals - relates to what is considered to be right or wrong, from people's points of view
c) Corporate Social Responsibility - socially responsible firms that act morally towards stakeholders (employees, local community)
d) Social Auditing - independent assessment of a firms actions affecting society. for example, could include a firms environmental impact.
2) Give 3 examples of unethical business behavior.
- financial dishonesty - deliberate misrepresentation to make money
- environmental neglect - harmful to environment
- exploitation of the workforce - mistreatment of staff
3) What are the advantages and disadvantages for business who behave ethically?
Advantages include:
-improved corporate image - increased reputation of business
-increased customer loyalty - more loyalty shown towards those companies that follow ethics and follow certain morals.
-cost cutting - costs of production could be decreased using ethics
-improved staff motivation - ethical behavior can help motivate employees to work harder and honestly
-improved staff morale - this includes the ability to recruit higher quality staff who are willing to work for a business that follows ethics and are morally stable.
disadvantages include:
-compliance costs - high costs for businesses acting ethically
-lower profits - if no compliance costs are charged, profit is under question.
-stakeholder conflict
4) How does CSR help a business compete?
CSR improves a firms reputation because of their desire to act in a socially responsible way. This, therefore, means better sales and more investors for the company. Hence leading to more money and profit. An example of a successful business is the Body Shop. It is certainly a trustworthy business.
5) Why is a social audit undertaken by business?
Businesses undertake social audit to make sure the socially responsible objective are in action. Businesses undertake this to see how it's actions are affecting the society.
Saturday, November 21, 2009
Franchises case study
1) To what extent is a franchise opportunity a true reflection of what it is like to set up and run a business?
A franchise is another type of business in which a firm buys an already successful firm, therefore, buying its logo, trademark and brand. However, in a business, you must start from scratch and earn a reputation for the firm. When opening a business, the owner is taking a dangerous risk because he/she does not have the benefit of hindsight. The business could be successful or may not be. However, franchises are already successful and well settled in the market. However, similar to a business, purchasing franchises could lead to success and create profit. On the other hand, it could fail and therefore lead to a loss. In a business, if not successful, this could lead to the owner losing money while if a franchise is not successful and goes through losses, the business is at risk, not the owners money.
2) A success of a team does not only rely on whether the team has amazing players or moderate players. However, teams can still make money by pricing different aspects at different rates to generate revenue. For example, with home crowd spirit, purchasing the teams official jersey and food outside stadiums could generate revenue for poor performing teams as well. Washington Nationals, previously known as Expos, are a poor performing team and is the most vulnerable to being to sold to a rival bidder. This is because the team's statistics are not impressive as shown on forbes. The team has the lowest revenue. Compared to another poor performing team, such as Tampa Bay which has a revenue of 110 millon, Washington Nationals are certainly in a worse position. The change in revenues for Washington Nationals is approximately 114%. This could be seen in a positive manner because it is a huge change compared to good teams. However, negatively, it could be seen as the revenues last year were even lower. Therefore, Washington Nationals is the most vulnerable to be sold to a rival bidder such as Portland Oregon.
3) Starting the franchise in another country could enhance the image of the franchise. If the English Premier League decided to promote itself in a different country, for example, India, it would promote the English Premier League itself as well as the sport. This could generate interests in different sports and therefore, increase total income. However, for a successful run, there should be enough number of teams participating to make it a success. This steps of enhancing could lead to more exposure to the media and therefore, more popularity and advertising.
A franchise is another type of business in which a firm buys an already successful firm, therefore, buying its logo, trademark and brand. However, in a business, you must start from scratch and earn a reputation for the firm. When opening a business, the owner is taking a dangerous risk because he/she does not have the benefit of hindsight. The business could be successful or may not be. However, franchises are already successful and well settled in the market. However, similar to a business, purchasing franchises could lead to success and create profit. On the other hand, it could fail and therefore lead to a loss. In a business, if not successful, this could lead to the owner losing money while if a franchise is not successful and goes through losses, the business is at risk, not the owners money.
2) A success of a team does not only rely on whether the team has amazing players or moderate players. However, teams can still make money by pricing different aspects at different rates to generate revenue. For example, with home crowd spirit, purchasing the teams official jersey and food outside stadiums could generate revenue for poor performing teams as well. Washington Nationals, previously known as Expos, are a poor performing team and is the most vulnerable to being to sold to a rival bidder. This is because the team's statistics are not impressive as shown on forbes. The team has the lowest revenue. Compared to another poor performing team, such as Tampa Bay which has a revenue of 110 millon, Washington Nationals are certainly in a worse position. The change in revenues for Washington Nationals is approximately 114%. This could be seen in a positive manner because it is a huge change compared to good teams. However, negatively, it could be seen as the revenues last year were even lower. Therefore, Washington Nationals is the most vulnerable to be sold to a rival bidder such as Portland Oregon.
3) Starting the franchise in another country could enhance the image of the franchise. If the English Premier League decided to promote itself in a different country, for example, India, it would promote the English Premier League itself as well as the sport. This could generate interests in different sports and therefore, increase total income. However, for a successful run, there should be enough number of teams participating to make it a success. This steps of enhancing could lead to more exposure to the media and therefore, more popularity and advertising.
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