Disney Business Practices - Assignment Example

? Disney Responsibility Audi Report Business practices by my chosen organization Introduction A method, procedure, process, or rule employed or followed by a company in the pursuit of its objectives. Business practice may also refer to the components above mentioned collectively. The aspirations and goal of this firm is to serve their clients with their full trust and confidence.  They earn and retain this objective by providing high quality automobile products and services, which are understood by the clients to rest upon high degrees of transparency, objectivity, and independence. Due to the breadth of their client base, they understand and take seriously the potential for real or perceived conflicts of interest, which may result from their diverse business activities (Connell 2001). Internal environment of Disney This company operates in an environment, which is quite challenging internally while also hostile in the external environment. The internal environment of Disney consists of a set of factors, conditions or elements within the operations of the business, which are directly controlled by the top management. The middle level management of the business actualizes the actual business activities (Stoffels 2004). The reason of actualizing the internal factor environment is to ensure that the life of the business is shaped and the continued existence of the business are geared towards the attainment of the goals and objectives of the business. The internal business activities to help attain these goals include the involvement and the development of the staff whereby Disney has embarked on initiation of a variety of activities to motivate the staff, develop them in terms of the relevant skill for their jobs, enhancing effective communication tools and effective relevant organizational change as they come. The managers of Disney have realized that for the company to be successful they have to get the best out of their staff hence they have embarked on this aspect as apriority (Restrictive Business Practices, 2007). This is because a motivated staff is claimed to be able to achieve ten times more than an unmotivated staff, also, if a client meets and employees of the company it is a fact that they have actually met the company itself. Disney therefore tries to make the employees feel that they are valued and posses a high degree of autonomy through an attractive employee packages and free and flexible working environment. In addition to this, the company helps the employees to be in a position that they are able to identify themselves with the customers (Murphy 2005). The company is also striving to develop their customers by recommending most of them to conferences both locally and abroad, they offer training and retraining programs to bust on the skills and knowhow of all their employees so that they unlock the potential of their employees (Stoffels 2004). Disney conducts both formal and on the job training, for their employees and they make the same employees understand the benefits that they are likely to derive from such trainings professionally through the raised skills. Furthermore, the company has realized the need for better communication as a way of helping their employees feel valued at work hence Disney uses a mix of communication tools such as team briefings, newsletters and direct communication while encouraging feedback. This is to help break down the “them and us” culture, which was fast gaining pace in the organization (Restrictive Business Practices, 2007). The elements of the business internal environment activities within Disney constitute the internal environmental factors. Essentially, they incorporate are the employee attitudes, new equipment, processes, strategy, work environment, etc, which are encapsulated in the strengths and weaknesses of the business and of which the business has controls (Lawson 2003). Through the analysis of the internal business components such as its management, finance, production and human resource, Disney has been in the position of enhancing the operations and productivity of the business by instituting feasible objectives actualized through experienced and skillful workforce (Michman 2003). Their effective and efficient management and administration system ensures that they are able to operate smoothly. They also employ the use of current technique, technology and processes, which confers a competitive advantage that is unmeasurable on the firm in its procurement procedures, designs, concepts and quality of its inputs and products (Morrow 2009). MICRO environment of Disney These are the internal factors within the business, which if not taken good care of would influence negatively on the company’s competitive advantage. Disney faces threats of rivalry, threats to its substitutes, buyer’s power, supplier’s power and the threats of the new entrants. To work against rivalry and retain their customers Disney the heavy discounter strategy and due to this as a strategy they revealed their worst sales performance since the happening of the recession. To enhance its competition amidst the emergence of substitutes Disney has ensured that it retains its production costs and any form of operational costs at lowest. They obtain the required implements from their suppliers at a lower cost to enable them work out a way in which they would retain their prices slightly lower than those for their competitors. This activities have enabled the company retain their customers and maintain their market position as one of the market leaders in the automotive industry (Stoffels 2004). A firms buyer maybe the customers who consume its products. Where customers are strong, it is likely to be competition between producers and their influence will tend to be weaker which means that the number of customer/size of customers will determine buyers’ power. Because of Disney, being the best service and products provider at affordable prices their buyer power has remained strong; the company furthers this through the introduction of a heavy discounter, which affects negatively on the prices of their fierce competitors. Supplier power on the other hand will affect the costs of production hence influencing the value created in the industry (Lawson 2003). Disney has therefore initiated activities to ensure that they remain stronger than the suppliers do so that they remain in the position at which they can still determine their prices while keeping their production costs lower in order to retain and maintain the market share. The threat of new entrants in the market as a micro factor is likely to threaten the operations of Disney if the laws and the regulations allow for these. The company has therefore initiated policies in form of barriers to block many competitors from getting into the market such as intensifying advertisement spending and investing much in the industry to raise the cost of entry. They are also in much favor of the government policies, which block the entry of massive firms in the market. These practices have worked in scaring away smaller businesses, which would have preferred entry into the market (Michman 2003). MACRO environment of Disney Many factors affect the dynamic of business environment and the decisions that the firm might take. The factors include government regulation, the economic situation, change in technology, change in taste and demographic/population change. Through PESTLE analysis, Disney has been in the position of manipulating these factors through the initiation of favorable business activities to the advantage of the business. In the political and legal aspects, the growth of the firm will be hindered adversely if the government changes the laws like those on massive owner ship of land to keep away the competitors. Disney therefore has to initiate other legal activities to stop their rivals from coming into the market. The handling of the macro factors is quite difficult to handle given that they have no control over, for example if the government decides to flex interest rates it can either favor or disfavor their operations. In such a case, they can only adjust the micro factors and the internal factors to remain relevant in terms of sales and hence profitability (Singh 2008). For example, the government may decide to vary both the interest rates and the taxation rates without considering any company, which may favor some companies while acting negatively against others (Melden 2007). Disney though has decided to expand more on the other macro factors by intensifying for example cultural studies in all the countries that it supplies with their products. This has enabled them increase the cost of entry for the competitors while enabling them be in a position of the products they are able to supply in which market. This activity busted the performance of Disney as compared to that of its rivals hence gaining more reputation in the society and the world at large. This refers to new technologies that influence the dynamics of business environment, which create new products or services and business opportunities. Technology also shapes the industry structure in terms of productivity and competition (Singh 2008). The company has therefore devised ways of ensuring that they are always aware of any form of new technology as well as how they can affect their company in terms of business opportunities. The company has therefore taken advantage of online sales and marketing to widen the sales of their products with the rapid change of technology having reshaped the operating environment of Disney. Lastly, we have the environmental factors, which are concerned with the nature systems and the resources that are needed by the industries. In order to save energy, Disney has embarked on a recycling program. They have also invested much on CSR activities directed towards the conservation of the environment to appeal to the consumers that they are environmentally responsible. They have announced a five-year plan with an investment of over $500m for the green initiative “A creative and well managed corporate and social responsibility program is in the best interests of all our stakeholders - not just our consumers - but also our shareholders, employees, customers, suppliers and other business partners who work together with the company.”( Hill 2000) Explanation and ranking of the organization’s most responsible practices For the success of the operations of Disney, they have always tried to balance all the factors and the activities surrounding their operations to ensure that they operate smoothly with relations to the other stakeholders in the industry. In terms of ranking, I can proudly say that the company has handled its internal environment spectacularly followed by the microenvironment and the macro in that order. There are though several aspects within each category that Disney has handled with decorum more than the others, in the other different categories. This is despite the fact that the rankings may be lower or higher (Lester & Waters 2009). The organization highly values its internal arrangements in terms of the inputs resulting into the outputs and the integration of all its departments. That is the sole reason why they ensure that their employees are well motivated to work by giving them a number of incentives, making sure they adopt the most favorable operation processes using the most modern form of technology (Choo 2000). Economic structures and policies create the context for throughput by the company, but it is individual business operations that are responsible for the actual throughput activities in the production of goods and services, which conform to the ethics.  The specific technologies that a company uses have a significant impact on the amount and types of materials that go through the production cycle of extraction, manufacture, use and waste.  In the past, the impact of various technologies on the environment was not a significant issue for business planning and operation though it is the battleground for most businesses in operation today (Drucker 2004).  It is argued by scholar that successful businesses know their customers and it is from this theme that the best practices are retrieved as the organization responds to the need of the customers to keep learning. The reason why internal factors and activities have resulted into being number one is the consideration that they give to their customers. They consider their customers to be their sources of ideas for the new products and services and they use the same customers as the benchmark of the other aspects of performance of the company against their competitors (Heritage 2009). The contact of the company with their suppliers is in the advantage of providing process ideas and more clarified product information. Disney encourages business welcomes to their firms since in a way they will be in the position of getting the feedback that they highly value as free advice from the stakeholders they operate with. The other reason that Disney values their internal operations concerning the service provisions to their customers is the value they attain from this for their success. This is because the customers who keep enhance their success in all the aspect s of business that they undertake. Most successful businesses normally consider the raised expectations by customers due to their demand for lower prices as an opportunity to drive them on so that they are more competitive and Disney is not left out on this (Choo 2000). Ethical theories demand that all businesses adhere to sustainable business practices. Broadly speaking, sustainable business development involves the application of sustainability principles to business operations. Sustainability of the business practices in this sense can mean a variety of things - ranging from ecological sustainability, social sustainability or even sustained economic growth (Drucker 2004). As such, the sustainable business movement is a component of the broader movement toward greater corporate social responsibility, which is given much weight by the management of Disney.  Interests in this area are reflected in the growing number of business organizations exploring the possibility of navigating around these issues. The large number of related websites, journal and book publications, academic programs in business schools and other faculties, standard setting organizations standard for corporate environmental management systems and government initiatives of various types are all inclined towards the achievement of environmental friendly operations of businesses (Binkley 2001).  Furthermore, the financial sector within the macro environment is also involved, by establishing standards for lending criteria regarding environmental protection and sustainable development, by developing indices for sustainable business practices, and through the fluctuations of the interest rates and taxations to favor operations towards saving the environment (Mente 2007). Environmental organizations and the government have established policies and plans geared towards developing environmentally oriented investment opportunities. The net impact of these efforts in terms of ecological sustainability is still small.  Nevertheless, the presence and vigor of this movement is necessary, if not sufficient, component of the need for scaling relevant policies and practices (Binkley 2001). Disney has really tried to implement ethical practices in the operations of its activities through the administration of codes of ethics in the company policies through induction of new employees and as they train them. The codes of ethics are applied in the organization appropriately in the form of the company assets, funds and controls (Mendonca & Kanungo 2007). They also apply them in the management of the employee practices most so in the cases where there is a conflict of interest. Disney has applied several business practices; these have translated into building honesty in the firm ensuring the smooth running of the firm. The practices include - to the investors, Disney have ensured a timely payment of their interests as well as the safety of their money. The employees are highly valued in Disney hence the company provides them with fair opportunities in form of promotions, trainings, good working conditions and timely payment of their salaries (Peters 2004). Customers are the source of their business hence they always ensure that they provide them with complete information of the services and the products and they reserve the personal information of the customers as much as possible. The company also deals with their competitors in a fair manner, they avoid at all cost the unscrupulous method and tactics of competition (Collusive tendering: report of the Committee of Experts on Restrictive Business Practices.. (2006). Furthermore, they adhere to the rules and regulations regarding taxes, duties, restrictive and monopolistic trade practices without adhering to unlawful practices like corruption, in addition, they adhere to the norms placed by the government to ensure environmental pollution. The company has a competitive edge in the market, because of the honesty they show in their services and products to their consumers. Their morally upright reputation attracts better staff and helps in retention of the already existing staff. Though ethics are legally binding in most cases, self-monitoring, transparency and accountability will go a long way in establishing trust of the people to continue dealing with the firm (Choo 2000). Besides this, it makes sense to change the tactics of unethical operations before the long arms of the law catches with the business lest they attract being penalized through hefty fines. Disney has found itself on the wrong side of the law during very few instances. Due to greed to amass profits, the firm was in one instance tempted to manipulate their consumers to exploit them. In addition, during the same year they created false documents to show increased profits to defraud the shareholders (Binkley 2001). Recommendations for my organization to show it is being more responsible It is worth appreciating the operations of the Disney in providing automobiles for its highly regarded and most respected customers. Therefore for Disney to ensure that they remain responsible and ethical they will need to- Ensure visionary leadership through the inspiration of the leaders who promote and support change in the organization. This is because such people lead through clear vision while living by strong set of values, which they share, with their staff (Adler & Elmhorst 2006). They should continue creating value that appeal to the customers and staff. This they can further by ensuring that they operate within means that meet customer goals while enabling the staff to take pride in their business. (Drucker 2004) Through innovation, the company should ensure that they are up to date with technology to promote new ways of working given that future success of any form of organization relies on the constant improvements and innovation. The company should also strive to find ways that would enable them know their customers one on one. This will enable them retain their customers and at the same time learn from the same customers for them to be in the position of being able to respond to their changing needs timely (Melden 2007). Disney must ensure that employees understand the company's corporate values. The statement of ‘Our Business Principles’ which makes clear the behavior it seeks from employees will achieve this (Abdulezer 2004). References Abdulezer, L, 2004, Excel best practices for business. Hungry Minds: New York. Adler, RB, & Elmhorst, JM, 2006, communicating at work: principles and practices for business and the professions (5th ed.). McGraw-Hill Co: New York. Binkley, LJ, 2001, Contemporary ethical theories. Philosophical Library: New York. Choo, CW, 2000, Information management for the intelligent organization: the art of scanning the environment (2nd ed.). Information Today: Medford, NJ. Collusive tendering: report of the Committee of Experts on Restrictive Business Practices.. (2006). Organization for Economic Co-operation and Development: Paris. Connell, MP, 2001, The business of options time-tested principles and practices. J. Wiley: New York. Drucker, PF, 2004, Management: tasks, responsibilities, practices ([1st ed.). Harper & Row: New York. Heritage, GL, 2009, Laser scanning for the environmental sciences. Blackwell Pub: Chichester, West Sussex. Hill, TE, 2000, Contemporary ethical theories. Macmillan: New York. International business practices, 1993, Washington DC: U.S. Dept. of Commerce in cooperation with the Federal Express Corp. Lawson, L, 2003, Truth in publishing federal regulation of the press's business practices, 1880-1920. Southern Illinois University Press: Carbondale. Lester, R, & Waters, J, 2009, Environmental scanning and business strategy. British Library: Boston Spa, Wetherby, West Yorkshire. Melden, AI, 2007, Ethical theories; a book of readings. (2d ed.). Prentice-Hall: Englewood Cliffs, N.J. Mendonca, M, & Kanungo, RN, 2007, Ethical leadership. McGraw-Hill/Open University Press: Maidenhead. Mente, B, 2007, How to do business with the Japanese: a complete guide to Japanese customs and business practices. NTC Business Books: Lincolnwood, Ill., U.S.A. Michman, RD, 2003, Marketing to changing consumer markets: environmental scanning. Praeger: New York, NY. Morrow, GR, 2009, The ethical and economic theories of Adam Smith,. A.M. Kelley: New York. Murphy, PE, 2005, Ethical marketing. Pearson Prentice Hall: Upper Saddle River, N.J. Peters, RS, 2004, Psychology and ethical development: a collection of articles on psychological theories, ethical development and human understanding. Allen & Unwin: London. Restrictive business practices of multinational enterprises: report of the Committee of Experts on Restrictive Business Practices, 2007, Organization for Economic Co-operation and Development: Paris. Singh, S, 2008, Business practices in emerging and re-emerging markets. Palgrave Macmillan: New York, NY. Stoffels, JD, 2004, Strategic issues management: a comprehensive guide to environmental scanning. Pergamon Press: Oxford [England.   Read More