Business Ethics And Governance Of A Capitalist Corporation

Business, Ethics and Governance MGT2204 – Assignment 3 Word limit: 2000 words Prepared for Gerard Betros Prepared by Rebekah Pink Student ID: 0061029305 Introduction Ethics in business addresses the ‘right’ and ‘wrong’ behaviours of business practises, and how these practices impact the employees, shareholders, the general public and the environment. This essay will take a look at two different types of business structures; the capitalist corporation and the workers cooperative, and review how the differing approach to business and the fundamental ideologies of each, impacts ethical practises. To highlight this, I will look at more specifically at capitalist organisation ANZ and cooperative Mondragon Cooperative Corporation and how they deal with the potential ethical dilemmas of fair wages for employees and executive remuneration. 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Strong Brand Influence Purchase Behavior - 1295 Words

With Products, Is It Form or Function? Strong brands influence purchase behavior (Dyson, 2016). Marketers must, therefore, focus on triggering motivating impressions amongst the consumers. Particularly, they must ensure that as consumers contact the brands, news, gossip and publicity will be inevitable (Gassmann, 2010). To achieve this, the functionality of the product should be unrivaled. Simply, product functionality is the key to brand success. With the massive expansion of credit availability since the 1970’s, consumers have been allured into making impulse purchases (Pusvasiu, 2015). They are therefore likely to be attracted to the design of the product and in the process fail to consider its functionality. Nevertheless, when the†¦show more content†¦Accordingly, a product must perform to an acceptable level, where the benefits that a consumer expects to receive after the purchases are gained. Otherwise, the consumer will discard the product, regardless of its form, and may not re-purchase it in the future. More so, the proper definition of a product’s form is when its functionality is considered (Pusvasiu, 2015). Design should not be limited to what a product looks like and how it feels like, but rather on how well a product functions. Engineers who spend a lot of time trimming and decorating a product to improve its aesthetics may not necessarily help a company achieve success. Instead, they should spend time translating the functional specifications of a product in branding; only when an expression and support of functionality in a brand is achieved that design becomes a selling point (Gassmann, 2010). Undeniably, whereas a consumer hopes to be rational in decision-making, they are also likely to rely on their emotions (Dyson, 2016). For this reason, some marketers rely on their ability to ensure that a design of a product is outstanding. However, the most successful companies channel their efforts towards ensuring that products that add tangible value to the consumers’ lives are created. Emotion will automatically emerge after the functional

Managing Price Discounting Free Essays

A leading website defines Discounts as â€Å"Percentage reduction in the gross price given by a seller to a buyer who pays within a set period of time. Cash discounts are given to shorten the length of time the seller must wait to collect the amount due. Cash discounts are offered to buyers in most industries, including media buyers. We will write a custom essay sample on Managing Price Discounting or any similar topic only for you Order Now A common business phrase for a cash discount is â€Å"2/10, net/30,† meaning that a 2% discount is offered if the amount due is paid within 10 days; otherwise 100% of the amount due is payable in 30 days. For example, if the amount due is $100, the buyer may pay $98 within 10 days or $100 within 30 days.† Discounting is becoming a popular mean to attract the customers. Simon Hathaway, managing director of retail specialist Saatchi Saatchi X, says discounting has become part of the business model for many retailers, especially those in the furnishing sector. He believes that much of this is driven by retailers taking advantage of consumers’ ignorance of the price of many products. ‘If you asked 20 people the price of a pint of milk, you would get 20 different answers,’ he says. Mike Watkins, senior manager of retail services at A.C. Nielsen, says the potential rewards of tempting shoppers with discounting are huge. ‘Consumers are hooked on promotions,’ he says. ‘On average, about 80% of UK shoppers are looking for price promotions — that’s the highest in Europe. Low prices are now expected.’ Merchants often advertise various types of price discounts in attempts to affect favorably the price-related evaluations and shopping intentions of consumers. Why does price discounting occur – why is it so prevalent? Kevin Cancy, chairman of Copernicus, a major marketing research and consulting firm found that only 5 to 35 percent of the customers are price sensitive. People with higher income and higher product involvement are ready to pay the price for features, customer service, quality , added convenience and the brand name. Most companies will adjust their list price and give discounts and allowance for early payment, volume purchases and off-season buying. It is well-accepted fact that short-term promotion leads to an increase in the sales. Although the size of the discount determines absolute or relative prices, an important additional type of consumer behavior relating to the processing of information concerning the size of the discount, per se, may have to be addressed before predictions concerning the impact of size of discount can be made. Besides this there are many other objectives that a firm seeks to achieve with discounts. Some of them are: Keeping up with competition: a sale or a discount offer is likely to be perceived and accepted as a good value when the advertiser is perceived as price competitive (Fry and McDougall, 1974; Biswas and Blair, 1991). Occupying more shelf space in the retail showrooms: Keeping good relations with the dealer often causes discounts. This is more evident in the cases when the dealer is strong. Either he has strong brand value in the region or is a bulk buyer of the product. To promote a new innovation To clear the decks for new stocks ( change of season/fashion) Price promotions showing tangible increase in Sales Attracting new customers to the brand which may result in increased brand switching. Also, Research has indicated that a sale or a discount offer is likely to be perceived and accepted as a good value when the advertiser is perceived as price competitive. One reason for such effects relating to store price image may be the nature of attributions for the price discount made by the consumers. For example, for a low-price image store, consumers may be more likely to make merchant-related attributions that indicate â€Å"meeting competitors’ prices† or â€Å"passing on savings from bulk purchases from manufacturers† than for a high-price image store. Differences may also be observed in product-related attributions between the stores. Because many consumers believe there is a positive relationship between price and product quality (Rao and Monroe, 1989; Lichtenstein and Burton, 1989), a price discount on merchandise at a store that has a low-price image may sometimes be perceived as related to something negative about the products (such as out-of-date models or inferior quality). The key reason often sighted by marketers is that it is done to is done to invite new users to try the product. If these people appreciate the product they may switch to your brand.  Does it work well to achieve the objectives that are typically set for it? Though the prices discounts do spike up the demands temporarily it is very rare cases that it actually spikes the demand in the long run. But there is a negative side to it, like: Long run price promotions make consumers more sensitive in both loyal and non-loyal segments. They also train non-loyal segments to seek price discounts, thereby making them more sensitive to price promotion (Mela, Gupta and Lehmann, 1997). Discounting can be a useful tool if the company can gain some concessions in return, like an extended contract of bulk order. Short run price discounts also cause the loyal customers towards bulk buying. This means increase in customer inventories and thus may result in the reduction of subsequent buying. Research suggests that the price promotion more often then not is unsuccessful in brand switching. The reasons for that are very evident, perhaps one of them can be the price perception of the customer is set to the discounted price of the product. For a brand positioned as an aspiration brand the discounts can be suicidal. This may lead more people to buy the brand but it may result in the loss of loyal customers who constitute the major chunk of buyers in the normal course. The price discounts works well in a few cases like: Discounts offered in the time of need Discounts towards the end of season achieve their objective of clearing the decks for the new stocks Are there some objectives it is well suited for and others it is not suited for? There is lots of confusion on the impact of price discounts, Mela, Gupta and Lehmann in their paper â€Å"The long term effects of Promotion and Advertising on consumer brand choice† state that companies like Colgate Palmolive Ralston, PG have curtailed the price based promotions but there are some like Heinz who continue to adhere to it. In a research M. P. MARTI ´ NEZ-RUIZ, A. MOLLA ´ -DESCALS, M. A. GO ´ MEZ-BORJA J. L. ROJO-A ´ LVAREZ (May 2006)   found that for The high-priced brands of the storable category that promotional discounts had a bigger impact during the first days of the promotional period, whereas no special pattern was detected in the low-priced brands of this category. There are some places where the discounts are very well suited for like: Discounts to people visiting in lean season at resorts. This brings extends the brand to people who otherwise may not use it. In an attempt to divert competition attention from the innovations. A price discount leads competition to fight the discount and in the mean time you can position your new innovation. Though there is no research evidence to justify these observations How can a product manager or a brand manager plan a discounting strategy that does not harm brand value? Some guidelines can be suggested for the retailer to set adequate promotional discounts periods. Objective of Discounts: The Product manager should very clearly announce the objective of the discounts. Generally discounts offered for pumping the sagging sales should be avoided. A clear motive and the time frame to achieve that motive should be clear. Timing of the Discount: Timing of the discounts is very important. A end of season sale may not have that bad an impact on the brand as a sale in the peak season. A grocery store offering a discount in the year of drought is bound to have more loyal customer’s that any other store around the neighborhood. Limit the Duration: In the first place, promotional periods for the high-priced brands of the storable category should not exceed 10 days; otherwise the promotion profitability could be reduced. In addition to this, discount levels should not exceed a certain magnitude, which depends on the considered brand. Add Value Added Services: An even better strategy than discounting your price is to add value to your goods or services – such as free installation, maintenance training, and longer product warranties. For example, â€Å"I can’t lower my price but I am going to give you consulting which will save you the same amount of money, had you received the lower price.† As Mr. Kotler explained, there are some companies that are extremely knowledgeable about their customer’s business, and able to point out to their customer ways in which they can save money. Baxter, a hospital supplies company, provides a good example of adding value. â€Å"They give credit points to hospitals who buy their products – just like airlines do.† These points can be redeemed for a cash rebate or for consulting days. Baxter has 12 key consulting teams, each with a different focus. One team, for example, will help the hospital improve its information management system while another team will help it better manage its wastes, elaborated Mr. Kotler. As it turns out, the consulting is so useful that the points are better used for consulting days. Avoid Frequent Discounts: Frequent discounts might influence the consumers’ reference price points and so produce a wear out effect. Evaluate other options like bundling instead of price discounts: Bundling leads to repackaging the products along with other products. Even in this case the frequency and duration should be kept in mind. Cited References M. P. MARTI ´ NEZ-RUIZ, A. MOLLA ´ -DESCALS, M. A. GO ´ MEZ-BORJA J. L. ROJO-A ´ LVAREZ (May 2006) ‘Assessing the Impact of Temporary Retail Price Discounts Intervals Using SVM Semi-parametric Regression’ Int. Rev. of Retail, Distribution and Consumer Research Vol. 16, No. 2, 181 – 197 DONALD R. LICHTENSTEIN, ABHIJIT BISWAS, KATHERINE FRACCASTORO   (1994) ‘The Role of Attributions in Consumer Perceptions of Retail Advertisements Promoting Price Discounts’ Marketing Letters 5:2, (1994): 131-140, Kluwer Academic Publishers Carf Mela, Gupta Sunil, Lehmann Donald   (May 1997) ‘The long Term Impact of Promotion and Advertising on Consumer Brand Choice.’ Journal of Marketing Research 34 (May) p248-261 Quilter, James (March 2007) Marketing, p20-20, Kotler Philip (2003), Marketing Management Pearson Education p-489-490 How to cite Managing Price Discounting, Essay examples

Managing People And Team of Mining Company †MyAssignmenthelp.com

Question: Discuss about the Managing People And Team of Mining Company. Answer: Introduction: The report is prepared for Mining Company operating in isolated locations. It has many fly in and fly out staffs on a rotating on roaster basis. There are three scenarios presented for the company where HR executive are required to make recommendation in all the particular cases. Report would involve discussion of theories related to human resource management, performance management and motivation. In involves the discussion of severalperformance management strategy and how it would motivate current employees of organization. Several retention strategies adopted by Mining Company have also been demonstrated along with the structure and forms of crisis management team. Discussion: In this particular scenario, HR executive of Mining Co is required to identify the impact of initiatives of performancemanagement motivation of staffs in that particular location. Performance management can be considered as a process that helps employees to focus on their task that helps in achieving mission of organization. There are several model of performance management according to literature and the building block of approach of performance management system that helps in enhancement of communication within organizations for making then acquainted with business plan and its mission (Armstrong Taylor, 2014). Some of initiatives of performance management taken by Mining Co is management by objective, planning and pay for performance. Management by objective is a model that is employed by organization that helps in clearly defining objectives o employees and management. It is a technique of performance management that involves flow top down of planning and goal of organization and translating the same into personal goals. Management by objective requires employee and staffs to set and measure their personal goals based on goals of organization. An organizing is able to assess contribution of any individual employees or staffs by means of any goal setting system such as MBO (Van Dooren et al., 2015). This particular system helps in providing regular view of progress of employees that helps in improving the efficiency quality of work produced. The efficient system of performance management helps in supporting employee motivation through goal setting process. Low performers are required to be monitored that would help in increasing motivation in team for which managers are required to work continuously. Performance m anagement system helps in supporting motivation within team members. Setting and tracking of performance of goals of employees requires mangers to set goals for employees by aligning it with the goals of organization. This will help in facilitating dialogue and conversation between employees and managers. Satisfaction of employees are enhanced through this particular system of performance management by encouraging coaching of employees in spite of focusing of negative feedback (Pulakos et al., 2015). Following recommendations can be made to Mining Company for motivating and enhancing the performance of employees. Mining Company has the objective of enhancing their employee performance and thereby improving their overall productivity. Managers should avoid getting involved in their day-to-day activities and activity trap should be avoided. They should participate in strategy planning process that will help in properly implementing the strategy of performance management. Managers are required to empower employees by measuring their performance in terms of goal setting and rewarding them for their achievements. Specific objectives of roles and duties of employees are required to be understood by managers so that each staffs objectives should align with objectives of organization. It is required to strike balance between empowerment of employees and management while making staffs as their self-managers. Tracking of staffs performance helps in aligning the daily activities of employees with business objectives. Managers are required to regularly track the goals of employees that will help in providing them with necessary feedback and accordingly make adjustment in plan of measuring performance, preparing for contingencies and tacking obstacles (Jackson et al., 2014). In the second scenario, company is facing the issue of staff retention as most of employees due to prevailing economic crisis in Greece and presence of ISIS. Moreover, each site operates as single entity and there is not staff rotation and cross over. The staffing issues in Mining Company is prevailing due to environmental factors that is comprising of political and socio-cultural factors. Staffs are getting scared and nervous due to social disturbances in Middle East. Secondly, operations of organization is getting impacted by the economic condition of Greece that worrying employees about gaining profit out of their operations activities. Employees are getting demotivated because of fear that organization might not be capable of generating enough money to sustain their business (Langton et al., 2013). All these factors are tempting employees to leave the organization. Valuable senior executives can be retained by the implementation of various strategies of retaining staffs and employing successful planning. Employee retention is of utmost importance for organizations as they make huge investment in recruiting human resources. Employee retention can be enhanced through some motivational strategies for empowering employees (Jackson et al., 2014). Prevailing hysteria in Mining Company can be dealt with recommendation of following staff retention strategies to the board: Some of retention strategies that can be appointed by Mining Company are as follows: Social grouping- It is certainly possible that employees would get scared due to changes in environmental factors. In such situation, employees require social support that can be provided to them by creating social meeting and grouping of employees that will also help in creating a sense of belongingness. Job securities- One of important factor that helps in motivating employees is providing them with job security that can be used as retention strategy by Mining Company. Security of executives wishing to leave organization can be ensured by putting a security system. Such security system would involve technological platform is isolated sites and communicating them immediately about any danger by having departure plan in place. Ensuring basic and recognition needs- Economic condition of Greece are influencing mining company along with their employees. In such scenario, some of basic needs and self-esteem of employees are not getting satisfied. Therefore, organization is required to ensure employee about providing such satisfaction. Compensation or rewarding employees- Employees in an organization can be retained in form of proving compensation and rewarding by way of paying insurance, bonuses, free health checkups and flying compensation. Work life balance- There is no staff rotation at the isolated sites of company as they are operating on rotating roaster. As per Maslows hierarchy of needs, employees needs to have lobe and a feel of belongingness (Wilson, 2013). It is required by Mining Company to rotation of such executives based on roaster by rotating them to less dangerous place that will assist them in dealing with their nervousness. Succession strategies is another technique that can be employed by organization seeking staff retention. Having right people at right place and in right time is the main objective of succession planning. It is required by Mining Co. to develop a large taken pool for overcoming situation of difficulties and where staff retention becomes an issue. Encouragement of promotional strategies and leadership development among employees for empowering them should be done by Mining Company. Furthermore, such situations can be handled by employing some sort of development programs. Therefore, it is recommended for Mining Company to employ succession and retention strategies that will help in keeping and retaining talented employees within organization. In this particular scenario, a substantial talent gap emerges at individual site of Mining Company that requires the formation of crisis management team. Formation of crisis management team helps an organization to protect themselves against the adverse impact of any prevailing crisis resulting from internal or external factors. It would further assist organization in devising strategies and taking future course of actions for overcoming situations of crisis. Format of crisis management team: The format of crisis management team would be comprise of three level that is corporate crisis management team, special crisis management team and local crisis management team Structure of crisis management team: Crisis management team mainly comprised of senior management team possessing authority and resources to expedite the response of some external or internal incidence of company. The crisis management team of Mining Company involves several key personnel of organization such as chief executive officer, head of departments, representatives of human resources, media advisors and board of directors (Mitchell et al.,2013). The structure of crisis management team of Mining Company incorporates several elements that would be mobilized to deal with crisis. Corporate Crisis management team: This particulate am of crisis management include senior managers and corporate office executives who have the responsibility of implementing crisis and communication management plan. Best and qualified employees should form the team for achieving required objective of formation of such crisis team (De Waal, 2013). There is no direct involvement of Chief executive officer and the whole team should be accountable to him. Special Crisis Response team: Formation of this particular team requires additional resources of organization and the team is generally assembled by either chairperson or corporate crisis management team. Local crisis management team: Local crisis management team is required to deal with the crisis faced in individual sites in addition to operation response emergence team. Responsibility for this particular team would be on site management of crisis and creating a route for directly communicating with corporate crisis management team. Roles, composition and responsibilities of this particular team would be operation specific (Lee Lawrence, 2013). The member of crisis management team of Mining Company would involve following members along with alternatives: Role Department Crisis management team coordinator Operations Communication coordinator Corporate affairs Human resource coordinator Human resource Legal council Legal Administrative assistant Administration Function of team: One of the functions of such team is providing guidance and strategic direction to organization for mitigating the impact of prevailing crisis or crisis that is faced by organization. Functions involves responsibilities by way of saving lives of employees, protecting property of organization, meeting needs of community and restoring operations that have been disrupted. It provides support to organization by managing the issues related with crisis along with mitigation of some additional risk and thereby safeguarding the interest of employees and several stakeholders. They are designed in a way that helps in addressing the impacts of ongoing crisis faced by Mining Company. Other function of such team lies in the area of motivating employees to deal with problems and motivating them to put their best to enable organization come out of this situation (Marler Fisher, 2013). Preparation of plan of crisis management for dealing with emergency situations such as prevailing economic crisis in Greece along with adopting future course of actions. Ways of rewarding such team: There are various ways in which an organization can reward crisis management team and they are as follows: Types of reward Description of reward Incentive pay The individual in a team receives monetary benefits based on their performance against handling of various crisis efficiently. This would help in enhancing the performance of team as a whole. Recognition It is actually a onetime award for any team or group of employees for successful completion of any project or any program. This helps in motivating them to further increase their efficiency and productivity. Profit sharing In this type of reward, a particular proportion of corporate profits is distributed among team that also provides them information about financial well-being of organization. Conclusion: The report discusses about three particular scenarios faced by Mining Company. It can be inferred from the analysis of the first case that employing several performance management initiative would help in motivating employees and increasing their productivity. For dealing with situation of retaining employees, they are required to adopt retention and succession strategies. Furthermore, it can be concluded that formation of crisis management team would enable them to deal with various crisis faced by organization. References: Armstrong, M., Taylor, S. (2014). Armstrong's handbook of human resource management practice. Kogan Page Publishers. De Waal, A. (2013). Strategic Performance Management: A managerial and behavioral approach. Palgrave Macmillan. Jackson, S. E., Schuler, R. S., Jiang, K. (2014). An aspirational framework for strategic human resource management. Academy of Management Annals, 8(1), 1-56. Kramar, R. (2014). Beyond strategic human resource management: is sustainable human resource management the next approach?. The International Journal of Human Resource Management, 25(8), 1069-1089 Langton, N., Robbins, S. P., Judge, T. A. (2013). Fundamentals of organizational behaviour. Pearson Education Canada. Lee, R., Lawrence, P. (2013). Organizational Behaviour (RLE: Organizations): Politics at Work (Vol. 18). Routledge. Lengnick-Hall, M. L., Lengnick-Hall, C. A., Rigsbee, C. M. (2013). Strategic human resource management and supply chain orientation. Human Resource Management Review, 23(4), 366-377. Marler, J. H., Fisher, S. L. (2013). An evidence-based review of e-HRM and strategic human resource management. Human Resource Management Review, 23(1), 18-36. Mitchell, R., Obeidat, S., Bray, M. (2013). The Effect of Strategic Human Resource Management on Organizational Performance: The Mediating Role of High?Performance Human Resource Practices. Human Resource Management, 52(6), 899-921. Pollitt, C. (2013). The logics of performance management. Evaluation, 19(4), 346-363. Pulakos, E. D., Hanson, R. M., Arad, S., Moye, N. (2015). Performance management can be fixed: An on-the-job experiential learning approach for complex behavior change. Industrial and Organizational Psychology, 8(1), 51-76. Storey, J. (2014). New Perspectives on Human Resource Management (Routledge Revivals). Routledge. Storey, J. (2016). What is Strategic Human Resource Management?. van der Weijden, I., Belder, R., Van Arensbergen, P., Van Den Besselaar, P. (2015). How do young tenured professors benefit from a mentor? Effects on management, motivation and performance. Higher Education, 69(2), 275-287. Van Dooren, W., Bouckaert, G., Halligan, J. (2015). Performance management in the public sector. Routledge. Wilson, F. M. (2013). Organizational behaviour and work: a critical introduction. Oxford University Press.