Business Tasks and Environment - Essay Example

Task 0ne; Organisational Objectives: Every organisation has a reason for its existence. A mission ment informs why the organisation was first created, and what it currently aims to achieve. The mission statement of our company, Apex, is to serve customers, both domestic and overseas, by producing high quality tomato by-products. Our vision includes expanding the existing customer base into rural areas where the food habits are expected to undergo a major transformation due to several recent developments (change in life style of the people due to the influence of western culture). We will also strive to broaden our customer base overseas by exploring new and emerging markets. We already function in a diversified managerial system where we have distinct orientations like: production, sales, promotion and consumers. A separate manager is assigned to handle each department. As head of the promotion-orientation, the managerial responsibility is related to selling. However, the manager will be responsible first to create product knowledge among the customers. In the present context, we intend to cover wider areas of rural India where we anticipate a surge in demand due to several factors, which will be discussed later on in this report. In terms of consumer orientation, we already have a marketing plan in place and the marketing manager will ensure the execution of the specific actions that are listed therein. The company has recently reviewed its marketing objectives with a view to address our specific marketing requirements and keeping in view the need of the customers. While profitability is definitely one of our objectives, ample focus needs to be given to sustain the product quality while being cost effective. We expect a high rise in demand once our marketing plans are executed. Our immediate priority is to have a foolproof system for facilitating seamless communication flow among different functional branches so that the activities can be efficiently coordinated. The sales division should be able to provide regular and accurate feedback to the production department regarding demand and an estimate of the surges or fallbacks etc. Objectives: The company is keen on exploring further business prospects in the domestic market, as there are several qualitative changes that may facilitate the business expansion into wider areas. Among them is the new thrust being given to educational approach by the Government of India, which is very significant in the context of achieving the company’s objective of increased production and sales. As a backdrop, most of the student population is interested in high quality education as they are targeting overseas job markets in Europe, US and the Middle East. Educational institutions and other business entrepreneurs are apprehensive of this opportunity and are keen to tap the best out of it. As a result, more and more higher educational institutional with state of the art infrastructure are being established in rural areas also, to cater to the increased demand there. In the earlier education context, professional and higher education institutions were concentrated in urban areas alone. In contrast to it more and more educational institutions are now coming up in rural areas too, making far-reaching changes in all walks of life. This change will reflect in the food habits as well. The student population is more inclined towards the Western style of life and their food habits have also changed drastically. When we consider the fact that top brand restaurant chains like Mc Donald’s and Domino’s are actively broadening their operations into the remote localities throughout the length and breadth of the country, we can easily recognize the potential the situation offers. These brands have proven to be the trend setters in the food habits of urban India and definitely they can do the same thing with the rural areas. Thus it is the priority of the company to explore this business prospects by satisfying the emerging consumers in these localities. The volume of this emerging consumers strike an optimistic note and provides ample leeway for the company to strengthen itself and also to cater to the needs of fast growing consumers. Thus, there is an enhanced scope for market expansion within the domestic scene. Another development that will dramatically increase the demand for our product in Rural India is the boom in the IT industry. Availability of highly skilled IT and other professionals, with its cost effective nature and large volume, has placed India as a potential source for work outsourcing from overseas, especially European countries and America. The exponential growth in IT field over the past two decades and the fact that India has been able to tap its potential has paid many dividends. Earlier its effects have been noticeable in the urban areas only. As technology advanced to the remote areas of the country, companies are now flexing themselves into these areas because of the availability of land and other infrastructural facilities at much cheaper rates. This fertility for KPO and BPO industries has drawn hordes of highly educated youths to this job market because the remuneration is good and they can choose more flexible schedules as compared to the traditional working hours of 10am to 5 pm. Another key component that makes the outsourcing business so viable in the Indian market is due to the cost effective nature of the Indian workforce. Thus the industry is poised for further expansion because of the ability to deliver quality service and adherence to the deadlines. There is considerable difference in time zones of India and its client nations. During their peak business hours here it is night and, therefore, most of the work in BPO and KPO are done in night shifts. Most of the traditional restaurants are averse to the idea of operating during night hours, and also most of the employees aren’t keen for a heavy traditional dinner during this time. Some restaurant chains have seized the opportunity and started operating on a large scale in these areas. The boom in the restaurant industry has a direct bearing on the demand of the products of our company. Along with the expansion of outsourcing work into wider areas outside the metropolis the company is gaining ground for big business as new work force from subaltern areas are getting into the fold of changing life style. With several factors including high rental and traffic congestion has forced the BPO/KPO companies to find new business locations in the neighbouring rustic areas. This tendency has further amplified by the emerging work force from the newly started higher educational institutions. Tapping this potential to the most will accumulate huge revenues in the company coffers. Hence, the company is geared to garner this emerging area. Almost in equal vein, countries like Saudi Arabia, Libya, and Pakistan are in a transition mode with their tilt towards western life style and education. This enhances our interest in these areas. Though the company is currently operating in some of the countries in the Middle East, we are yet to create a loyal customer base in countries like Saudi Arabia, Libya and Pakistan. Middle East zone in general and Saudi Arabia in particular, employs a large number of workforces from India. They already are exposed to western life style and food habits, and their leniency for homeland food items will help us furthering our business interests in these areas. This is expected to boost our thrust on increasing production and export. This can contribute a great deal towards the company’s growth in the coming years. It has become part of the objectives of the company to explore this possibility in a concerted way. B .stake holders The micro-environment of a company comprises all those organisations or individuals who have a direct or indirect influence on the activities and decisions of the organisation. Such agencies are termed as the stakeholders. The major stakeholders in our organisation are the customers, suppliers and intermediaries. In the context of the company’s plan for extensive production and marketing, the first stakeholder, i.e. the customer will be benefited as the large volume and supply will mean easy availability and cheaper rates. Since the product’s reputation will increase considerably the customer will also be happy that he is using a very popular brand. The suppliers already have recognized the potential of the product and its marketability in the changed circumstances. They stand to gain more profits as the volume of sales increases, and this will encourage them to ensure that they make the product available in the market without any hindrance. There will be a better rapport and transparency between the organisation and the suppliers which in turn will enhance the efficiency of the selling process. The other stakeholder, namely, intermediaries like distributors, will also become the major beneficiaries of the increased sales. Their response will be akin to the one described above in respect of the suppliers. Two way influence: The most benefited stakeholder is the customer in terms of cheap rates and better quality. As the company widens its customer base and sales volume it will be able to provide the customer in a better way. As the customer responds more actively and their loyalty increases, the company will be able to further increase its profitability and again serve the customer with increased efficiency and quality. Success of a organization is highly depending with proper manage of conflict between this groups customer need good product at reasonable price in the same time suppliers need maximum price for their row materials. This is the main reason of conflict between these stakeholders holder groups an organization want to maintain their customers through providing quality product with low price All organisations have their own responsibilities which can be divided into internal and external. Internal responsibilities are those which deal with employees, customers and others. Some of the internal responsibilities of the organization are provide better job environment, give maximum job opportunities and recognition for their employees. External responsibilities are those which are involved with government, share holders and others. One of the internal responsibilities of the organization is to ensure Health and safety of their employees which is an important aspect in creating rapport with the employer and the employees. Apex international provide safety in work place by adopting very stringent safety precautions. Another internal responsibility is consumer protection. Apex international ensures their products are not harmful to their customers by conducting many experimental studies and there by reducing artificial contents from their products and also by promoting natural products. Apex products are hygienic and health friendly. They maintain natural quality in all stages of the production process. External responsibilities are mainly related with environmental protection, industrial pollution and over exploitation of natural resources. Apex international give more importance in these areas by promoting use of degradable and recyclable material for their packing. Apex international also follows safe waste control measures. Economy is an economic system which allows living people the legal and institutional framework. The frame work within which the economic activities of the people take place is called the “ Economic system” or “Economy”. The term economic system refers to the sum total of resources for production and distribution of goods and services in a country. These arrangements need not always be the result of society, customs and practices shaped the pattern of resource allocation and distribution. In a market economy, it is the price mechanism that sets the pattern of resource allocation. In a centrally planned economy, it is the planning authority that dictates the arrangements which govern production and distribution. Thus economic system of country is related with its allocation of resources. Countries across the world follow different economic systems, which are related with their social system. There are mainly three type of economic system. i.e. socialism, capitalism and mixed economic system. Capitalism: Most of the developed countries follow capitalist economic system. This system allows opportunity to make more money, more protection for their asset and freedom for exploiting resources. The history of capitalism shows that the automatic working of capitalism was not so efficient. Capitalist economic system gives more importance to the owners of the resources. Government influence is very low and in this system, there is an automatic working of the market mechanism. It brings about optimum resource allocation. Countries like USA, Canada and other developed countries follow this economic system. Socialism: Socialism is the opposite of capitalism. It is born out of the evil of capitalism. It is an economic theory as well as a political concept. Socialism means different things to different people. Absence of private property is one of the characteristic features of socialism. All means of production and distribution such as farms, mines, factories, financial institutions are owned and controlled by the society (government). There is an absence of consumers’ freedom of choice in this system and all production and distribution of goods and services are controlled by the central planning authority. It takes in to account the resources of the country and need of the people. Based on these statistics, it plans production and distribution accordingly. It is collective decision making rather than through price mechanism. The central planning authority takes decision about what to produce, how much to produce, how to produce and to whom it is to be distributed and what price to be charged. This would avoid over production wastage, unemployment of resources, business fluctuations which are the chief disadvantages of capitalism. The main disadvantages of socialism are absence of individual freedom and initiative; profit incentive, bureaucratic corruption, redtapism and favouritism etc.Countries like china, Poland, Hungary and Latin American countries follow this system. Mixed economy: Mixed economic system is a new economic system that embraces the characteristics of both pure capitalism and socialism. it is a blending of both capitalism and socialism. India is one of the best examples of mixed economy .Key and strategic sectors like petroleum, weapons, mines, strategic equipments and other sectors are under the direct control of government. Private sector operates through price mechanism. Government controls the price of goods and control raw material cost and ensures full employment and proper allocation of scarce resources. Economic system of UK is both characteristic of capitalism and socialism. It is a new form of mixed economy. UK follows a system of giving importance to both sides i.e. employees and employers. Comparing with china, UK allows making profit in private sector and government provide job security of labours and control price of raw materials and finished goods. Mixed economic system provides a good environment for entrepreneurs. And this economic system is helpful for planning proper utilisation of resources for attaining predetermined objectives of production and employment. Fiscal policy: Fiscal policy of the government is related with taxation (public revenue), expenditure, borrowing and management of public debt in an economy. Most of the countries using fiscal policy as an instrument to achieve economic stability and growth. Other countries use it as a means to step up the rate of economic growth. Fiscal policy of a country is highly influenced by industries of that particular country. Objectives of the fiscal policy are different in developed and under-developed countries. The main objectives in under-developed countries are to maximise total savings which helps countries to increase capital formation, to use capital resource from less productive to more productive uses, to protect their economy from inflation and to encourage industries with high employment potential in the economy. Monetary policy: Monetary policies which relate with the credit control measures are taken by a central bank of country. It relates with control of money supply. The main objectives of monetary policy are 1. Full employment 2. Price stability 3. Economic growth 4. Exchange stabilisation 5. Neutrality of money Social welfare policy: Social welfare policies are taken by the government for the welfare of the people. In a country, social welfare is related with the field of Health, Employement, Equality, and Education etc. Welfare policies of a country are highly related with economic condition of that particular country. Government policies on social welfare have an impact on industry and business. Private finance initiative: Private financial initiative is a new system of joint financial partnership between private and public sectors. UK is the first country to promote this system and many countries follow this system. This system is very helpful for the development of the infrastructure. Many private companies try to invest capital for infrastructure development. “The aim of the Private Finance Initiative is to encourage private investment in major public building projects” (http://www.european-services-strategy.org.uk/. Search.html?q=private+financial+initiative) “Monetary policy is seen as something of a blunt policy instrument – affecting all sectors of the economy although in different ways and with a variable impact” (http://www.tutor2u.net/economics/content/topics/fiscalpolicy/fiscal_monetary_comparison.htm) The recent changes in the monetary policy and Fiscal policy of the UK government are aimed to achieve economic growth as well as to control inflation. Sudden changes in interest rates create more problems in long term capital investment. These changes create problem for investors for their capital investment. “Monetary policy in the UK is extremely flexible (rates can be changed in each month) and emergency rate changes can be made in between meetings of the MPC, whereas changes in taxation take longer to organize and implement”.. (http://www.tutor2u.net/economics/content/topics/fiscalpolicy/fiscal_monetary_comparison.htm) Capital investment is for the future benefit. It is not easy to take a sudden decision on capital investment. Sudden changes in interest rates create problems for business and industry. The recent changes in fiscal and monetary policy may have its impact on Apex international. It can create both opportunity and problems. Government monetary policies which are aimed to control inflation help to reduce the price and sell the product at lower price. Task .3 Market environments. Marketing is one of the main functions of every organisation. Marketing function is carried out in a given environment. The environment has a direct impact, or contains factors effecting the decisions regarding formulation of marketing plans and strategies. So, a manager, in order to be effective in implementing the companies marketing policies and strategies, has to be able to clearly identify those environmental factors by meticulously observing and scanning the environment. Though the managers are unable to control the environmental factors, they have to take them into account while formulating marketing decisions. While deciding the market strategies, the marketer must keep a strict watch on the environment the organisation is functioning in. Thus a marketing system of a company will have to work from within the framework of the environment forces. Marketing environment within the company is always changing and is uncertain. Some of the marketing environment factures may be controlled while others remain uncontrollable. The marketing environment may be grouped into two: - a) Micro-environment b) Macro-environment Microenvironment: Microenvironment of a company refers to those organisations or individuals who directly affect the activities of the organisation. The factors affecting a company in the micro-environmental context are: i. Customers ii. Competitors iii. Suppliers iv. Intermediaries v. Other stock holders Macro-Environment: Macro-Environment of a company refers to those factors which are not concerned with the immediate environment of the business. These forces are external and do not directly affect the marketing decisions of the company, but it indirectly influences the marketing decisions. The Macro-Environment factors effecting marketing decision are: 1) Demographic forces 2) Economic forces 3) Physical forces 4) Technological forces 5) Political and legal forces 6) Social and cultural forces Perfect competition is a market system. In this system, there are many buyers and sellers in a market. The main feature of this market system is the absence of monopoly. No one will be able to control the market price. So this system is called perfect competitive market. In this market system, all sellers and buyers deal with homogeneous products. There is no substitution of products in this system. This system allows free market environment for new producers and customers freedom of choice. Maximum profit making is the main objective of sellers in this market system. There is no control from government. Apex international operates its marketing function in a perfect competitive market. This system allows free mobility of goods and allow apex international to sell its products at market price. There is no monopoly in that market which is very suitable for Apex international. Competition is very high in a perfect competitive market So Apex international wants to take strategic decision for creating new customers from this competitive situation and also to retain their existing customers a) To maintain customer satisfaction b) To cope-up with the current competitive market conditions Customer is the backbone of any organisation. In the market situations existing today, the customers play an important role in the growth of a company. In a commercial environment no customer means no business for the company. The organisation must, therefore, be aware of the changing requirements of its customers and must collect regular feedback from customers on their changing needs. In addition, the organisation must always keep a good relationship with its customer to have necessary changes with the evolving needs of the customer. The customer can be of any type: an ultimate consumer, industrial consumer, reseller, government and other non-profit making customer, international customer etc. It must not be forgotten that customer or consumer satisfaction is the prime motto of every business firm. Apex internationals main competition strategy is to provide quality product at low price. C). The main role of competition and other regulatory body is to control market from over competition and ensure customer satisfaction. Modern market is a play ground for different organisations. Competition is very high in the field of FMCG markets and companies are adopting deferent types of promotional activities. The main problem of high competition is the low quality of goods as the companies are forced to reduce prices of its goods. In this situation regulatory boards can play an important role. In a perfect competitive market, there are many business firms, which sell similar products. As the competition is very high in this market regulatory boards can ensure quality of products and price stability. Price competition create more problems in market some, organisations try to compete with others by reducing their price and sell low quality products. The main objectives of regulatory board are to promote competition and innovation at the same time ensures customer satisfaction. The board is an independent body representing customers and the public, and it ensures customer interest. “Global competition, corporate restructuring and the impact of technology on products and services are forcing many organizations to review their strategies. However, strategy development is too often report-based and driven more by aspiration than by thorough analysis, resulting in a strategy that is both inappropriate and unachievable” (http://www.paconsulting.com/services/strategy_marketing/) d). The changes in FMCG marketing, forces the organization to change its strategy. Main changes are in packing and labeling strategies. “The rate of change within the FMCG market sectors continues apace, particularly in the area of packaging innovation. If they havent done it already, the majority of the major brands have either discussed - or are in the process of discussing - the added benefits of shelf impact and improved margins that can come from a change from their current packaging materials e.g. from glass bottles or jars, cans and cartons into a range of differing plastic-based technologies.” (http://www.paconsulting.com/services/tech_innovation/food/magazine/entry_brand.htm) Organization use packing is a strategy to attract customer’s attention. Recent changes in plastic packing function create lot of innovations in packing section of organizations. Attraction of customers and convenience are the main benefits. Apex international uses glass jars for their packing but now they want to use plastic packing system for marketing. Innovation is very important in business, especially in marketing. For example, Banking and insurance sector achieve huge growth after the implementation computers. By using these marketing strategies, Apex international try to increase market share of its products. Supply and demand analysis is very important in marketing. Proper study of demand helps to manage the production function. Apex international sells their products at lower prices which may results more demand for the goods. For managing production and distribution efficiently, an organization must study changes happening in the market. Apex international has decided to import products from their Indian production plants. At the initial stage, they import goods from India; later on they start production units in UK itself. a). Apex international plans to expand their marketing function in UK and other EU countries. Currently they operate in India and other Asian countries. This situation requires proper study of international trade. Due to globalization, opportunities in international trade have gone up. Many Indian companies operate their business in UK and other EU countries and several UK based firms have their production and marketing in India also. Ample supply of human resource of India and china attract many EU countries to set up their production functions in these regions. International Trade is very important part of UK economy. After Globalization, British companies want more international trade relations for achieving more international business opportunities.” Trade is absolutely vital to the UK economy. We make our living through exporting - were the worlds sixth largest exporter of goods and the second largest exporter of services.” (http://www.themanufacturer.com/britishindustry/content_page.html?article_id=118). In this situation British firms want to compete with other countries product and services. b). Apex international plans to start their distribution and marketing of product in UK. the recent changes in EU policies require planning of new Human resource strategies. At the Initial stage, Apex international plan only sales and marketing in UK market. Apex international’s future plan is to start a production plants in UK; EU policies will help to achieve good result in production. Minimum wage policies help to control industrial labour problems and flexible working time is more attractive for employees to choose their interested work time c). Economic implications of UK joining the EU are going to affect their international trade. They have to deal with the large scale imports from countries like Italy, France, and Germany. European Union’s policy related with minimum wage and flexible work time also make changes in business policies in UK. Large migration from other EU countries creates lot of problems related with unemployment and other economic problems. EU countries specialises in different sectors of economy for their international business. Germany mainly concentrates on automobile production and exports; France is the main exporter of food and other FMCG products. In this situation, a FMCG related firm must compete with French companies in international trade. EU policy related with tariff on trade and other changes create more opportunity for other countries. Some economists say emigrants from countries like Bulgaria, Romania and other countries create ample availability of cheap labours. It is highly helpful for the UK business to compete with emerging economies of Asia. Under these circumstances, Apex international can expand their business in other EU countries also. WORK CITED http://www.european-services-strategy.org.uk/. Search.html?q=private+financial+initiative (accessed December10, 2006) http://www.tutor2u.net/economics/content/topics/fiscalpolicy/fiscal_monetary_comparison.htm (accessed December10, 2006) http://www.paconsulting.com/services/strategy_marketing/ (accessed December11, 2006) http://www.themanufacturer.com/britishindustry/content_page.html?article_id=118 (accessed December11, 2006) http://www.paconsulting.com/services/tech_innovation/food/magazine/entry_brand.htm (accessed December11, 2006) Read More