How Personal Code of Ethics Might Clash with a Companys Operations - Assignment Example

Running header: Business studies Student’s name: Instructor’s name: Subject code: Date of submission: 1. In recent years, many countries have moved from planned economies to market economies. I think this has been necessitated by the need to increase efficiency. Planned economies may work in the short run such as was the case with the Soviet Union. However, such an economy is unlikely to reach the level of efficiency that characterizes market economies. By moving towards a market economy and hence improving their efficiency, economies are able to achieve increased economic growth as well as economic development in the long run. Countries also move from planned economies to market economies so as to provide consumers with choice of goods and services that they can afford. Countries also desire to be more innovative and hence offer better quality goods and services to the consumer. As such, by moving to a market economy, countries will assure themselves of higher economic growth rates and more jobs can hence be created for the citizens. 2. How current economic indicators such as inflation and unemployment affect a country like UAE. Both inflation and unemployment reduce household’s ability to spend and hence affect the demand for goods and services being produced in the economy. This implies reduced economic growth and hence more and more unemployment and inflation. It should also be noted that uncertainty on future inflationdiscourages investment as well as savings as well as shortage of goods as consumers hoard goods for fear of future increases in prices. Unemployment on the other hand leads to high crime rates as well as higher welfare payments to the unemployed by the government. At the same time, unemployment implies less income tax implying more borrowing by the government or cutting of spending by the government. Unemployment also affects consumption by the households implying a reduced GDP. The rate of taxation may also increase as the government seeks for more funds to provide services for the unemployed. In essence, the above economic indicators affect the country negatively if they increase leading to slowed economic growth since the demand for goods and services in the economy is constrained as indicated above. 3. How personal code of ethics might clash with a company’s operations In a situation where speaking the truth would be detrimental to the company’s image leading to loss of customers and hence profits for instance where a company’s product has a negative effect on public safety and health. Where you believe that the company is not taking seriously the welfare of workers and hence you advice the company to slice its promotional budget for the sake of improving its employees’ welfare. In addition, one’s personal code of ethics may clash with the company’s operations where the workers’ rights are being interfered with and you have to inform them which may even affect the company’s operations if strikes or go slows happen. A person’s code of ethics may also interfere with the company’s operations where you have to ask the company to undertake acts of social responsibility for the society in which it operates and the management is not for the idea. How I might try to resolve these differences: Resolving the differences would depend on the issue at hand. This would range from tying to explain to the management why I think that the employees’ welfare should be of paramount importance to the company and raising their awareness where their rights are being infringed upon. Explaining to the company the importance of producing goods that are safe for the sake of good public health and safety. Where the company remains indifferent to my requests or explanations, I may consider becoming a whistleblower in a bid to safeguard public health and safety or even quit the company when the differences are so great to be resolved by the above means. 4. The reasons why new business startups are increasing and the main reasons why they succeed or fail: The main reasons why new business startups are increasing include i) Increased sources of financing and hence capital ii) Improvement in technology and innovations implying increased business startup opportunities iii) Unemployment that has necessitated people to think outside the formal employment sectors hence necessitating creation of new sources of income in the form of new businesses iv) Increased training and acquisition of entrepreneurial skills implying that more people are now confident of starting and running new businesses. The following are the main reasons why business startups succeed or fail i) Market –market is a vital factor that determines whether or not business startups succeed or fail. If they have little or no market for the product they have developed, they are bound to fail. ii) Failure of the business model iii) Management/leadership skills- if the business startup has a weak management team, it is bound to fail since they will adopt poor business strategy, come up with less innovative products, and execute the whole idea poorly. iv) capital- if they have inadequate capital required to execute the new business, they are bound to fail v) Product- if the product dealt with by new business is not innovative enough to meet the needs of the market, then the startup business is bound to fail. 5. Whether to buy a new business or to start a new one from scratch? I think I would rather buy an existing business than start a one from scratch. This is based on a number of reasons including; i) It is more risky to start a new business than it is buying an existing one. Research indicates that 40% of startups fail within their first year of establishment while 80% fail within the fifth year of their establishment. This coupled with my lack of experience with doing business would make me prefer buying an existing business. A new business would call for expertise in such areas as financing,cash flow and infrastructure. Although the same experience is needed to run an existing business, purchasing the existing business will guarantee me a relationship with the former owner, vendors and the employees. The owner will most likely help me in transition and assist me with the business plan, market conditions and strategy. I will also inherit employees who are experienced in the business who will help me in policies and practices. Similarly, I will inherit the suppliers and customers which will make running the business easier as I will have important insight as I transit into the new business. ii) Financing – it is true that acquiring a new business may require a larger initial capital than starting a new one. However, financiers such as banks will most likely loan money to a business that has already been established as they can see its track record. The cost of hiring new employees as well development of a customer base as well as new product development. Buying an existing business will also help me determine whether it will succeed depending on its current and past performance as opposed to a startup whose future performance is hard to predict. iii) Starting a new business guarantees me of immediate cash flow from the existing customers. This is important as I will be assured of cash for the day to day running of the business. iv) If the business am buying has a good reputation, I will benefit from its being around for a while (existing brand) which is important for its survival. v) Less time will be needed since the business is already up and running. This implies that not much time will be needed for designing, developing and establishing the new business as well as hiring and training the employees. As such, I will have more time to focus on improvement of the business that I have purchased. SITUATIONAL CASE Fresh coat Painters is an American based company which deals with the provision of quality painting services. It is a home-painting industry which offers an array of services to its customers. Through its massive staff relation and training, it has acquired global recognition for staff training and maintenance that other similar companies seek for their training services. This is due to its goal of employee development that it has achieved massive growth and progress. Their nature of work has also attracted customers to them. This includes their timely arrival, use of eco-friendly paints which are low odor in nature. Their services are also affordable. The Baked Brooklyn Bakeries is a Los Angeles based company which deals with the manufacture and packaging of bread products. The owners of the company are Matt Lewis and Renato Poliafito. The bakery and restaurant saw much progress when the celebrated Oprah mentioned their product as one of her most favorite foods. This was the thick, fudgy brownie. Through the years, the bakery has witnessed massive growth and development not only in the customer levels but also in the staff levels. This has made them improve and focus much on the production of the best American desserts. The two companies have similar patterns when it comes to social responsibility. They both work so as to benefit all the society in its jurisdiction. Some of the things they have done have among other included the treatment of the wastes from the company so that it can be safe to the environment. This has been due to the increasing cases of environmental pollution resulting from company wastes which are toxic. Other activities have been that the two companies have taken part in tree planting activities. This has been in an effort to conserve the environment. Over the recent past, deforestation cases have increased and hence the timeliness of the undertaking. The companies have also seen to it the development of infrastructure around their premises to the benefit of the society at large. This includes erection of lighting systems, good road networks and bridges in some cases. Some codes of ethics have been set by the companies to see to it that operations are carried out in a smooth manner. Some of the codes of ethics that are in use include the maintenance of moral behavior among the employees. The employees are also expected to treat each other with utmost respect. This has helped reduce the cases of conflicts arising from disrespect among the employees. The employees are also expected to maintain high levels of professionalism and responsiveness. There are some factors however that affects the financial decision making in the companies. Such factors include the ability to analyze the market for changes. Changes include those in the business system. Another factor affecting financial decision making is the technological state. This is because technology in the recent days is the determinant of successful businesses. Another factor which influences their financial decision making process is the international standards such as accounting standards. A change in those standards influences the financial decisions to be made by the management. In order to be successful in all aspects, management of the companies has played a key role. One of the things that the management has done is fostering the existence of trust among the workforce. This has been through team building activities where each and every member of the workforce is taught how to appreciate the uniqueness of all the others. This has been the spearhead to the success. The management has also put in place an all-inclusive decision making strategy. This is where all the members of the organization are asked about their opinions before major decisions. This has made all the employees to feel appreciated. Through this the existence of harmony has been created. The management has also seen to it that the goals set by the organization are clear and attainable. Through this, all the parties have a sense of direction and control. They have also ensured that the visions and missions of the companies are well known and accepted by all the parties. In conclusion, the companies have achieved utmost success in their respective fields as a result of the application of the above mentioned measures. First, through the putting in place of code of ethics has enabled them to well manage their staff. This has reduces the cases of disrespect among them. It has also helped improve harmony and relations between them. The aspects of social responsibility have also enabled the company to be accountable to the society for its action. Through the observation of social responsibility, there has been the development of a peaceful co-existence between the companies and the society. With good relations, the companies have been well able to fit in the market and to succeed in it. The companies have also been able to maintain their good staff due to the all inclusion policy. This is because all the grievances raised are sorted in an easy manner and without delays. Conflicts also are dealt with even before they arise. Good relations existence is also an indicator of good business progress since goal attainment will be easy through this. This is due to the factor that states that unity is strength and hence when they join their efforts together towards the completion of a particular task; it will be easy to finish it and in time. References: Watson, F2013, Introduction to business studies, London, Rutledge. Read More