Business Environment of Smith Electronics - Case Study Example

? Business Environment of Smith Electronics Table of Contents Table of Contents 2 Introduction 3 Purpose 3 The extent to which Smith Electronics meets the objectives of the stakeholders 4 Organizational Responsibility 4 Social responsibilities 5 Economic Responsibility 5 Environmental Responsibility 5 How economic system of United Kingdom attempts in allocating and making efficient utilization of the resources. 5 Conclusion 6 Works cited 7 Name of the Student: Name of the Professor: Name of the Course: Date: Introduction Smith Electronics is a company that produces various computer counter parts for computer industry and supplies them in United Kingdom and European Union. Fred Smith was the founder of the company. Recently it has been converted into Public Limited Company. The subsequent part of the project would be dealing with the changes that have taken place in the business environment of the computer industry in the form of an informational report. Purpose The main purpose of the organizations like Smith Electronics is offering quality products to the customers so that they can assemble the computer according to their own wish. The company facilitates the customers by offering them a wide range of quality products. These products are manufactured by taking into consideration three main factors: a) Cost Effectiveness, b) Modularity and c) Maximum Reliability. The company aims at achieving customer satisfaction by means of efficient and proficient personnel. The company’s team of professionals has good understanding of the industrial necessities which would help them in upholding the managerial works in an excellent manner. The purpose of the organization is making consistent performance by manufacturing quality products so that it supports Smith Electronics in having huge acceptance throughout the UK market and European Union. The company plans to perform its functions along with maintenance of smooth cooperation with the valued customers. The latest technologies which are user friendly are implemented within the products in order to increase the demand as well as the customer satisfaction. The goal of the organization is to make the experience of the customers highly satisfactory and convenient. This enables making long term relationship with them. The professionals in the company are employed after proper testing of their skills. In order to provide excellent experience to the customers, the employees are trained specially about how to interact with the customers. The success of an organization depends to a great extent upon the demand of its products and services in the operational market. Smith Electronics focuses on increasing the annual demand of its products which might help it in achieving a global recognition. The organization is committed towards bringing excellent computing experience to the customers in United Kingdom and European Union. The goal of the company would stimulate its performance by guiding the operational activities. However, Smith Electronics holds good position in the computer industry of United Kingdom and European Union in aspects of the customer service, product quality and the store’s design. The extent to which Smith Electronics meets the objectives of the stakeholders The business objectives are those ends which the organizations set out for achieving. The organizations plan for strategies in order to achieve these objectives. The stakeholders are important part of the organization (Phillips 6). The objectives of Smith Electronics are set by balancing the demands of the stakeholders in the organization as maintenance of cordial relationship with them is very important (Svendsen 2). The objectives of the organization have been established after blending the interests of all the stakeholders. The stakeholders of Smith Electronics always have an influence in its actions or operations. The major stakeholders include the shareholders, employees, creditors, bondholders and customers (“American Institutes for Research Capstone Project”). The objectives are actually what the stakeholders wish to achieve. All stakeholders plan to protect their own interests by ensuring the objectives are being met. The shareholders of Smith Electronics hold a stake in the company by means of their share ownership. The dividends declared by the organization and capital gains by means of the sale of the shares are obtained by the shareholders. Thus, the above mentioned factors are included in the objectives of the shareholders. However, such objectives are not limited to the growth in the dividends, growth in the share’s value and the share price growth. Smith Electronics provides high dividend to its shareholders as a share of the company’s profit. The employees are those workers who are employed by Smith Electronics. The employees have a direct influence in the profit earning ability of the organization. In return, the objectives of the employees include higher remuneration, increased job satisfaction, motivation, job security, recognition and self actualization. The company conducts various performance evaluation programs and the employees with good performances are awarded with higher remuneration, promotions, incentives etc. The customers are one of the most essential stakeholders of an organization. Smith Electronics ensures the fact that it does not compromise with the needs and demands of the customers. The objectives of the customers include reliable services, quality products, high customer care and fair prices. Smith Electronics aims at proving quality products with excellent services and fair prices in order to provide customer satisfaction. The creditors are those who provide financing to an organization by issuance of loans or purchase of corporate bonds. The creditors form very essential part of the stakeholders in an organization as they help in meeting the capital budgeting needs. The objectives of these creditors include the receipt of repayment of loan along with interest on time. The credit rating of Smith Electronic ensures the creditors that their money is completely secured. Thus Smith Electronics meets the objectives of its stakeholders in an impressive manner and does not only focus on its profit earnings. It keeps the interest of the stakeholders in the first place. Organizational Responsibility Smith Electronics has some commitments which provide a set of guiding principles covering the economic, social and environmental responsibilities (Sepulveda and Edwards 11). The company is dedicated to the continuous improvement of the policies, strategies and other practices which would be delivering these responsibilities (Scheneiderman 9). The company ensures excellence in all its activities and exhibits the sense of social responsibility by maintaining the interest of the society where it operates (Jha and Chavan, “Role of CSR for achieving controlled sustainable development”). Social responsibilities Smith Electronics is committed to high work practices and supports wider community (“Corporate Social Responsibility and Sustainable Development”). The organization is committed in providing a professional and participative work environment so that the employees would enjoy being a part of it. It provides a work life balance which in turn would increase the job satisfaction of the employees. The working environment of the company includes learning as well as development opportunities which enable the employees in reaching to their full potential. Smith Electronics have the responsibility of maintaining a healthy and safe working environment for its employees. The organization is committed to engage with the local committee in a positive manner and raise the public awareness towards the importance of technology and use of computers. It understands the needs or expectations of the customers and delivers innovative products and services to them. Economic Responsibility Smith Electronics is committed towards operating with maintenance of the financial discipline in order to retain the long term viability (Polese and Stren 39). The company is committed towards taking fiscally responsible decisions in order to maintain the short term as well as long term financial viability (Bhatia 392). The knowledge and expertise of the professionals within the organization provide opportunities associated with the generation of economic benefit. Environmental Responsibility Smith Electronics ensures the fact that it takes proper care of the environment along with carrying out its objectives (Kumari, “Role of Corporate Social Responsibility in Sustainable Development”). The company ensures that all its operational activities remain in compliance with the environmental standards, resource consents, biodiversity, bio security and other environmental regulations. It ensures that material waste production is minimized and the utilization of recycling methods is maximized. Smith Electronics also takes steps towards encouraging its employees in taking positive actions for reducing the effects of their operational activities on environment. How economic system of United Kingdom attempts in allocating and making efficient utilization of the resources. The economic system comprises of various processes including organizing, motivating labor, circulating the human labor, producing and distributing the products and services, technologies, consumer goods etc. There are three types of economic systems: a) Market economy, b) Command economy and c) Mixed economy. United Kingdom follows mixed economic system where the economic system includes a mix of socialism as well as capitalism. This type of economic system involves mix of private economic freedom as well as government planning and centralized economic planning. As the economic system has freedom, it enjoys reduced government intervention to some extent. Decisions take place on the basis of the market mechanism as well. The country splits its economic resources effectively to government as well as the private sectors. The private sectors are highly encouraged in getting involved and participating in the utilization of the resources which would enable achievement of economic profit for the entire country. This type of economic system helps in maintaining the economic balance because when one system fails to be beneficial the other system achieves it. The mixed economy within the country gives a combination of freedom as well as restrictions which ensures maximum standard of living of the entire population within the country. Conclusion Smith Electronics aims at providing quality products and best services to its customers. The company does not focus only on the profit earnings; it also emphasizes on the fulfillment of the interests of its stakeholders by meeting their objectives. The organization maintains its commitments towards fulfillment of the social, economic and environmental responsibilities. United Kingdom is a country having mixed economy. Smith Electronics should utilize the economic freedom and actively take part in the allocation of the resources in order to enhance its performance in terms of product manufacturing, service offerings etc. This would provide a global recognition to the organization and help it in strengthening its position in the market. Works cited “American Institutes for Research Capstone Project.” Human-Computer Interaction Institute. Master of Human-Computer Interaction Capstone Project, 2010. Web. 19 October 2013. Bhatia, S. C. Retail Management. New Delhi: Atlantic Publishers & Dist, 2008. Print. “Corporate Social Responsibility and Sustainable Development.” Bull. Bull, 2012. Web. 19 October 2013. Jha, Nishikant., and Suhas Chavan. “Role of CSR for achieving controlled sustainable development.” Maratha Mandir’s Babasaheb Gawde Institute of Management Studies 2012: 1-11. MMBGIMS. PDF file. Kumari, Sima. “Role of Corporate Social Responsibility in Sustainable Development.” Institute of Management Technology. Institute of Management Technology, 2011. Web. 19 October 2013. Phillips, Robert. Stakeholder Theory and Organizational Ethics. California: Berrett-Koehler Publishers, 2003. Print. Polese, Mario, and Richard Stren. The Social Sustainability of Cities: Diversity and the Management of Change. Toranto: University of Toronto Press, 2000. Print. Scheneiderman, Jill S. International Journal of Social Policy Research and Development. Munich: GRIN Verlag, 2011. Print. Sepulveda, Sergio G., and Richard Edwards. Sustainable Development: Social Organization, Institutional Arrangements and Rural Development: Selected Readings. Costa Rica: IICA Biblioteca Venezuela, 1997. Print. Svendsen, Ann. The Stakeholder Strategy: Profiting from Collaborative Business Relationships. California: Berrett-Koehler Publishers, 1998. Print. Read More