UNICEF & L'Oreal
1. UNICEF stands for United Nations International Children's Emergency Fund and aims to promote and enforce the rights of children around the world such as eradicating child labour, providing education and protecting from violence, exploitation and abuse.
L'Oreal is one of the leading beauty and cosmetics companies in the world.
2. UNICEF
"UNICEF is mandated by the United Nations General Assembly to advocate for the protection of children's rights, to help meet their basic needs and to expand their opportunities to reach their full potential."
UNICEF's mission statement emphasises how it has prioritised the rights of children as it's driving force and the objective of it's business.
"At L’ORÉAL, we believe that everyone aspires to beauty. Our mission is to help men and women around the world realise that aspiration, and express their individual personalities to the full. This is what gives meaning and value to our business, and to the working lives of our employees. We are proud of our work."
L'Oreal's mission emphasises how much their customer influences their practice and products.
3. UNICEF's goal focuses on eradicating and preventing various issues with children's rights around the world with promotion as a primary tool of awareness to people around the world which provide for the organization on a financial level. Their objective is to "work with others to overcome the obstacles that poverty, violence, disease and discrimination place in a child’s path."
L'Oreal's objective is to include environmental concerns into their beauty and cosmetics products and to promote diversity of their international clientele.
4. UNICEF's marketing objectives include the promotion of their positive practice on a global scale to get the money they need to continue to support their cause.
L'Oreal's marketing objective includes the promotion of their products with a strong emphasis on the power of woman, individuality and diversity and their eco-friendly practices.
5.
Price:
*UNICEF -
*L'Oreal -
Product:
*UNICEF -
*L'Oreal -
Promotion:
*UNICEF -
*L'Oreal -
Place:
*UNICEF -
*L'Oreal -
Monday, March 1, 2010
Saturday, January 2, 2010
Economic Growth, Recession, Growth through improved quality, Changes in labour force, Barriers to growth in LEDC's
2) Economic Growth
Cycle Phase: Features:
Peak or Boom *Low Unemployment
*High consumer expenditure, investment and export earnings
*Good cash flow for businesses
*Higher levels of profits
Recession *Rising Unemployment
*Declining total demand
*Lower Investment expenditure
*Falling export sales
Slump or Trough *High Unemployment
*Very low consumer spending, Investment and export earnings
*Poor cash flow for businesses
*Poor liquidity (not enough money to run business on daily basis)
Recovery or
Expansion *Occurs when GDP starts to rise (after slump)
*National income increases
*Gradual increase in consumption, investment, exports and employment
3) Four ways businesses cope with a recession
1. Cost Reduction:
-cutting energy and lighting bills
-alternative suppliers with cheaper prices
-cheaper premises to help improve cash flow
-cutting staff if necessary
2. Price Reductions:
-To increase and sustain sales
-Public are more careful with spending therefore lower prices are favorable
3. Non-Pricing Strategies:
-Re-packaging
-Special offers
-Exceptional after-sales care for customers
4. Branding:
-Customer loyalty to a brand helps maintain sales during economic instabilities
-When exchange rates aren’t favorable, price elasticity of demands for exports remains high therefore isn’t affected
5. Outsourcing:
-Competitive price advantage if produced overseas therefore increasing profits
4) Growth through improved quality of factors of production occurs when businesses invest in key resources of the economy:
Capital goods – greater investments lead to greater economic activity which in turn attracts more business in the future.
Education & Training – of workforce increases productivity and competitiveness worldwide.
Health Technology – improved health care promotes a healthier workforce, minimizing absences and increasing overall productivity.
5) Ways in which labour force of a country can change:
Changes in demography – lower birth rate as well as earlier retirement rate creates smaller workforce and vice versa.
Changes in participation rates – measures self-employed versus employed, government incentives can promote higher participation rates by, for example, lowering income tax. Women returning to or starting work has also led to higher participation rates.
Changes in net migration – measures immigration (those entering a country for work purposes) against emigration (those leaving a country for work opportunities). A larger workforce helps raise productivity of economy.
6) Barriers to growth in LEDC’s:
-Lack of good infrastructure in both communications and transport systems
-Lack of skilled labour force as well as technical knowledge
-Rapid population growth leads to lack in resources to feed the larger communities
-Indebted poor countries are required to pay back these huge loans, leaving little money for investment and growth
Cycle Phase: Features:
Peak or Boom *Low Unemployment
*High consumer expenditure, investment and export earnings
*Good cash flow for businesses
*Higher levels of profits
Recession *Rising Unemployment
*Declining total demand
*Lower Investment expenditure
*Falling export sales
Slump or Trough *High Unemployment
*Very low consumer spending, Investment and export earnings
*Poor cash flow for businesses
*Poor liquidity (not enough money to run business on daily basis)
Recovery or
Expansion *Occurs when GDP starts to rise (after slump)
*National income increases
*Gradual increase in consumption, investment, exports and employment
3) Four ways businesses cope with a recession
1. Cost Reduction:
-cutting energy and lighting bills
-alternative suppliers with cheaper prices
-cheaper premises to help improve cash flow
-cutting staff if necessary
2. Price Reductions:
-To increase and sustain sales
-Public are more careful with spending therefore lower prices are favorable
3. Non-Pricing Strategies:
-Re-packaging
-Special offers
-Exceptional after-sales care for customers
4. Branding:
-Customer loyalty to a brand helps maintain sales during economic instabilities
-When exchange rates aren’t favorable, price elasticity of demands for exports remains high therefore isn’t affected
5. Outsourcing:
-Competitive price advantage if produced overseas therefore increasing profits
4) Growth through improved quality of factors of production occurs when businesses invest in key resources of the economy:
Capital goods – greater investments lead to greater economic activity which in turn attracts more business in the future.
Education & Training – of workforce increases productivity and competitiveness worldwide.
Health Technology – improved health care promotes a healthier workforce, minimizing absences and increasing overall productivity.
5) Ways in which labour force of a country can change:
Changes in demography – lower birth rate as well as earlier retirement rate creates smaller workforce and vice versa.
Changes in participation rates – measures self-employed versus employed, government incentives can promote higher participation rates by, for example, lowering income tax. Women returning to or starting work has also led to higher participation rates.
Changes in net migration – measures immigration (those entering a country for work purposes) against emigration (those leaving a country for work opportunities). A larger workforce helps raise productivity of economy.
6) Barriers to growth in LEDC’s:
-Lack of good infrastructure in both communications and transport systems
-Lack of skilled labour force as well as technical knowledge
-Rapid population growth leads to lack in resources to feed the larger communities
-Indebted poor countries are required to pay back these huge loans, leaving little money for investment and growth
Skoda Auto Case Study
a.The two internal stakeholder groups suggested in the case Skoda Auto case study include the employees as they are the ones who were dissatisfied and went on strike which in turn affected the profit to the shareholders of the public limited company.
b.Considering that this is a multinational business, one of Skoda Auto’s stakeholder conflicts was that the Czech government hadn’t seemed to be regulating the unfair business practices such as the Czech Company’s adherence to employment legislation. Having felt neglected their full benefits and pay, the Czech employees resorted to a workers strike at an attempt to raise awareness of their dissatisfaction.
c.To minimize such a conflict, managers and directors of Skoda Auto could establish means beyond the government of each country where they are stationed to regulate unfair business practices. This would in turn decrease their reliance on the governments in influencing their profits. This may be costly but when it comes to larger businesses the managers and directors must avoid dilution of control considering the scale of the business (as is shown in this case study Skoda Auto lost a staggering $2.9 million per day alone). Yet if the business was much smaller, say on a national level, it would seem ridiculous to invest money into regulating unfair business practices as this is an aspect regulated by the government already. However, when the business runs on such a scale that there could be repercussions on the economy, further measures must be taken to ensure the fairness and equality upheld by the organizations in all companies worldwide.
b.Considering that this is a multinational business, one of Skoda Auto’s stakeholder conflicts was that the Czech government hadn’t seemed to be regulating the unfair business practices such as the Czech Company’s adherence to employment legislation. Having felt neglected their full benefits and pay, the Czech employees resorted to a workers strike at an attempt to raise awareness of their dissatisfaction.
c.To minimize such a conflict, managers and directors of Skoda Auto could establish means beyond the government of each country where they are stationed to regulate unfair business practices. This would in turn decrease their reliance on the governments in influencing their profits. This may be costly but when it comes to larger businesses the managers and directors must avoid dilution of control considering the scale of the business (as is shown in this case study Skoda Auto lost a staggering $2.9 million per day alone). Yet if the business was much smaller, say on a national level, it would seem ridiculous to invest money into regulating unfair business practices as this is an aspect regulated by the government already. However, when the business runs on such a scale that there could be repercussions on the economy, further measures must be taken to ensure the fairness and equality upheld by the organizations in all companies worldwide.
Monday, November 23, 2009
Ethical Objectives and Corporate Social Responsibility (CSR)
1. Define
Ethics - the moral principles and values that society believes organizations should consider in their decision-making and strategies.
Morals - a society's view of right and wrong actions.
Corporate Social Responsibility - A business which acts morally towards ethical and environmental issues within the various stakeholder groups.
Social Auditing - an independent assessment including a review of a businesses environmental impact, staff management and contributions to society to ensure socially responsible objectives are being met.
2. Three Examples of Unethical Business Behaviour:
a) Financial Dishonesty - this encompasses illegal deliberate misinterpretation of financial accounts as well as morally unjust issues with business expenses being reimbursed to directors of companies.
b) Exploitation of the workforce - Encompasses the exploitation of employees in areas such as neglect of welfare issues, poor pay and unjust working conditions.
c) Exploitation of consumers - This is when firms knowingly exploit people or society by selling harmful products as well as charging excessive prices.
3. Advantages and Disadvantages of Businesses which behave ethically
Advantages:
- Improved Corporate Image - enhances the businesses reputation through treating employees fairly as well as being environmentally friendly.
- Increased Customer Loyalty - businesses build larger customer base though ethical and moral ideals of their objectives and actions.
- Cost Cutting - by being conscious of the environment (e.g. recycling, reduced excess packaging) businesses can often reduce some costs of production as well as reduce the risk of litigation costs from illegal actions.
- Improved Self Motivation - drives employees motivation, productivity and loyalty as they are working for an ethically and morally positive business as well reducing labour turnover.
- Improved Staff Morale - recruitment and retainment of motivated, quality staff as more want to work for business with strong ethical stance.
Disadvantages:
- Compliance Costs - acting ethically could be far more expensive due to additional money and time needed to produce the ethically supportive products (e.g. organic food is more expensive to harvest).
- Lower Profits - Higher prices due to compliance costs which in turn could cause an ethical dilemma where the business could need to adopt a less profitable course of action.
- Stakeholder Conflict - Organizational objectives within the various stakeholder groups could be different (e.g. financial investors are more concerned with the short-term profits as oppose to the firm's ethical stance).
4. How CSR helps a Business compete
The social responsibilities of a business play an important role in their corporate image.
5.Why Social Auditing is undertaken by a Business
Ethics - the moral principles and values that society believes organizations should consider in their decision-making and strategies.
Morals - a society's view of right and wrong actions.
Corporate Social Responsibility - A business which acts morally towards ethical and environmental issues within the various stakeholder groups.
Social Auditing - an independent assessment including a review of a businesses environmental impact, staff management and contributions to society to ensure socially responsible objectives are being met.
2. Three Examples of Unethical Business Behaviour:
a) Financial Dishonesty - this encompasses illegal deliberate misinterpretation of financial accounts as well as morally unjust issues with business expenses being reimbursed to directors of companies.
b) Exploitation of the workforce - Encompasses the exploitation of employees in areas such as neglect of welfare issues, poor pay and unjust working conditions.
c) Exploitation of consumers - This is when firms knowingly exploit people or society by selling harmful products as well as charging excessive prices.
3. Advantages and Disadvantages of Businesses which behave ethically
Advantages:
- Improved Corporate Image - enhances the businesses reputation through treating employees fairly as well as being environmentally friendly.
- Increased Customer Loyalty - businesses build larger customer base though ethical and moral ideals of their objectives and actions.
- Cost Cutting - by being conscious of the environment (e.g. recycling, reduced excess packaging) businesses can often reduce some costs of production as well as reduce the risk of litigation costs from illegal actions.
- Improved Self Motivation - drives employees motivation, productivity and loyalty as they are working for an ethically and morally positive business as well reducing labour turnover.
- Improved Staff Morale - recruitment and retainment of motivated, quality staff as more want to work for business with strong ethical stance.
Disadvantages:
- Compliance Costs - acting ethically could be far more expensive due to additional money and time needed to produce the ethically supportive products (e.g. organic food is more expensive to harvest).
- Lower Profits - Higher prices due to compliance costs which in turn could cause an ethical dilemma where the business could need to adopt a less profitable course of action.
- Stakeholder Conflict - Organizational objectives within the various stakeholder groups could be different (e.g. financial investors are more concerned with the short-term profits as oppose to the firm's ethical stance).
4. How CSR helps a Business compete
The social responsibilities of a business play an important role in their corporate image.
5.Why Social Auditing is undertaken by a Business
Sunday, November 15, 2009
Franshising Case Study
1. When starting up a business, the factors which need to be addressed include the following; the business idea, finance, human resources, enterprise, fixed assets, suppliers, customers, marketing and legal issues. However, a franchise is an already established business which a franchisee chooses to be apart of, working on the franchisor's business model. This lacks innovation due to the fact that the franchisor has already established a business idea which has been tested and proved succesful. In terms of finance, though the franchisee funds the franchise the start-up costs are lower as the franchisor has already developed, for example, market research and product development. Adding to this, there is less risk as the franchisee has a succesful model to work from, reducing the risk of loosing money as they can predict the success of the franchise. Human resources, enterprise and suppliers are all factors taken care of by the franchisor in the sense that they are already established with no need for the franchisee to deal with these aspects. The franchisee chooses the location which is another risky factor, yet working on the established business model, the franchisee can predict an estimated amount of revenue depending on the local market hence the amount of sales can be approximated. Adding to this, the franchisor has attracted customer's to their business and is in charge of, for example, promotional campaigns therefore the franchisee has little or no say in these. Another aspect to consider is that it is in the best interest of the franchisor for the franchise to be succesful therefore they will assist the franchisee with what could be services giving advice on financial management as well as providing training to staff. Setting up a franchise therefore lacks the entrepreneurial aspects of setting up a business. Though a franchisee may benefit from experiencing the day-to-day workings of owning a business, they have very little to think about in terms of setting up a business.
2. Baseball has become a huge money-making industry and no longer just a sport. The point to consider is that even if the team isn't succesful in the game of baseball, the business enterprise itself can gain revenue from anything from the tickets sold, car parking costs, merchandising and so on. Furthermore, rewards of succesful management of any team results in revenue which is not necessarily influenced by the success of their game. For example teams with vulnerability of being bought off by Portland Oregan include the former 'Expos' because they are one of the cheaper teams to buy, with reasonable operating income and current value as well as the lowest revenue (according to forbes statistics). This will make it easier for Portland Oregan to secure a cheaper bid - a benefit for their business. Their next step would be to improve the management and possible revenue from factors outside the game such as the above mentioned merchandising, number of tickets sold etc... Therefore, though there are many factors to consider when a bidder chooses a team, they are able to estimate which team is cheaper to buy yet reasonable current value - basically a balance of various factors mentioned above.
3. If the English Soccer Premier League were to become franchisers just like MLB Inc. they would gain further control of the football industry within the UK, focusing on the business aspects.
2. Baseball has become a huge money-making industry and no longer just a sport. The point to consider is that even if the team isn't succesful in the game of baseball, the business enterprise itself can gain revenue from anything from the tickets sold, car parking costs, merchandising and so on. Furthermore, rewards of succesful management of any team results in revenue which is not necessarily influenced by the success of their game. For example teams with vulnerability of being bought off by Portland Oregan include the former 'Expos' because they are one of the cheaper teams to buy, with reasonable operating income and current value as well as the lowest revenue (according to forbes statistics). This will make it easier for Portland Oregan to secure a cheaper bid - a benefit for their business. Their next step would be to improve the management and possible revenue from factors outside the game such as the above mentioned merchandising, number of tickets sold etc... Therefore, though there are many factors to consider when a bidder chooses a team, they are able to estimate which team is cheaper to buy yet reasonable current value - basically a balance of various factors mentioned above.
3. If the English Soccer Premier League were to become franchisers just like MLB Inc. they would gain further control of the football industry within the UK, focusing on the business aspects.
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