Entry 7 (IY1 Introduction to Business and Management)

Entry 7

In this entry, I am going to describe corporate social responsibility (CSR).

The definition of CSR

Corporate social responsibility is considered to be an essential factor for a continuous success in a large business. CSR is a corporate plan to take responsibility for the environment and social welfare by operating its business (Shaw et al., 2013).

                             

The advantage of CSR

1) Satisfied employees: employees want to feel proud of the organisation they work for. An employee with a positive attitude towards the company, is less likely to look for a job elsewhere.

2) Satisfied customers: research shows that a strong record of CSR improves customers' attitude towards the company. If a customer likes the company, he or she will buy more products or services.

3) Positive public relations: CSR provides the opportunity to share positive stories on the Internet. Companies no longer have to waste money on expensive advertising campaigns.

4) Long term future for business: CSR can achieve long term results and business continuity.

From now on, I will show how important CSR is in business world by using the example of Google and Johnson & Johnson.

                        

 

Google was found in 1998 by Stanford University students Larry Page and Sergey Brin. In the present, Google has grown into the biggest corporation and is one of the most popular internet search engines in the world. As a leading company of Internet technology, Google should practice its responsibility of CSR. However, there has been a voice of concern from its various interests. The issue is related to invasion of privacy from street view.

 

Case 1

 

According to CBC news (2010), Canadian authorities announced that Google violated Canadian privacy law by inappropriately collecting data of users from vehicles of Street View through the Wi-Fi network. The information collected by vehicles was e-mail address and password, which is sensitive personal information.

 

The affair is closely associated with stakeholders’ involvement especially, consumers.

Unethical behavior of Google made its customers feel questionable about the company, which can affect likability, reputation and tangible or intangible assets. According to BBC news (2012), Google showed the lowest percentage of search engine market share in the UK. Its figure dropped below 90.00 per cent. However, competitors, such as Microsoft's Bing and Yahoo had an increase. This is because credibility of Google has been lessened due to its conduct. In conclusion, wrong act of Google has something to with customers.

                                                     

 

Johnson & Johnson (J&J) was established in 1886 and is a multinational healthcare and pharmaceutical company. It has a lot of products it has operated on the business. It produces health care products, prescription products and medical devices. (Source Watch, 2012). As a leading company of heath care product, J&J should perform its duty of CSR but there has been a boycott from 2011. This is because its baby shampoo contains carcinogens.

 

Case 2

 

According to Johnson (2011), on behalf of 3.5 million people in the US and other countries, the Campaign for Safe Cosmetics petitioned to J&J stop using formaldehyde-releasing preservatives and 1,4-dioxane, carcinogens. Furthermore, the campaign agitated consumers should boycott Johnson’s products until J&J fully removes cancer-causing chemicals from its products to pressure it.

 

The affair is closely associated with stakeholders’ involvement especially, consumers  and shareholders.

 

The campaign for safety cosmetics is an organisation of consumers. In fact, the campaign initiated a boycott on J&J’s products in 2009 (Johnson, 2011). It seems to be a highly influential movement. This is because according to J&J (2012), the sales volume in the US decreased 600 million dollars, compare to that in 2010 even though the worldwide sales increased 3.1 per cent. Therefore, it was directly related to shareholders as well. Obviously, they were not happy with the performance in the US because of the less of the dividend they earned. In conclusion, especially the consumer group and the shareholders were involved in this scandal amongst stakeholders.

 

In conclusion, I discussed the corporate social responsibility (CSR). These days, CSR is an important factor in business management. That is to say, CSR is considered to be a condition of sustainable growth. What is more, I illustrated how important CSR is, showing real cases of Google and Johnson & Johnson. Therefore, companies all over the world should follow CSR for the sake of maintaining success.  

 

 

 

 

 

 

 

 

 

Entry 6 (IY1 Introduction to Business and Management)

Entry 6

In this entry, I am going to discuss globalisation.


The definition of globalisation

Globalisation will be defined as increased international mutual exchange of commercial goods and trade, traveling and migration, financial streams and direct cross border investment, as well as exchange of ideas and intellectual property (Hein, 2009).

The background of globalisation 

1) The development of  transportation and communication technology.
2) Influence of an open-door policy.
3) Entrance of World Trade Organisation.

The benefits of globalisation

1) The acceleration of global development took place due to interchange of technology.
2) Social and political developments are caused by globalisation.
3) Globalisation can help solve problem regarding human rights, especially sexual exploitation and     abuse.

The shortcoming of globalisation

1) Globalisation brought about the polarization of wealth.
2) Global warming.
3) Globalisation affected the extinction of languages around the world.

                                                                        <Example>

                     Let's move on to the case in the globalisation of Apple and Samsung companies.

 

 

The market of Apple has been broadened through improved transportation, communications and the movement of people and capital. Apple would like to make its products in China. This is because labor wages in China are more cheaper than in the United States. However, there are some problems related to the Apple company. It is working condition. In other words, workers in China have been unfairly treated in some factories. They are working more than regular working hours and receving  more lower wages than wages that were promised. This has affected customers in China, boycotting Apple's produsts in some regions. Therefore, globalisaion of the Apple has both strong and weak points.

 

 

                                                        

  

                        In the beginning, Samsung sold fruits, fishes and vegetables to China.
                        In 1969, Samsung Electronics was founded.
                        In 1980, Samsung began to make telecommunication devices.

                             Samsung changed its logo to attract a lot of people in the world.

                               

              
                                    Samsung has three major messages to the world.
                                  
                                                      1) New Technology
                                                      2) Innovative Products
                                                      3) Creative Solutions

Globalisation causes the exchange of technology within Samsung's network system in the world.
                              
                             The market shares of Samsung in the world has increased.

                                                 

 Samsung has gained a lot of profits via globalisation, tarketing customers in the world.

In conclusion, I mentioned a lot of things of  globalisation. In addtion, I applied globalisation to two companies. Globalisation has advantages and disadvantages. Therefore, globalisation should be implemented, strengthening the strength and making up for the weakness.

                                          

 

Entry 5 (IY1 Introduction to Business and Management)

Entry 5

In this entry, I will talk about the international business.

The definition of international business

International business refers to negotiated trade and investment that join nations and cross state barriers, as performed by firms operating and interacting at various personal, organisational, product, project, function, network, industry, global and other levels (Tsang et al., 2013). 

                    These days, we can easily see international business all over the world.

The three pictures below represent the situation of international business in Apple, Tesco and Samsung.

 

 

On the other hand, it was difficult for people to see international business. However, people did international business through The Silk Road. The "Silk Road" is a network of ancient overland trade routes that extended across the Asian continent and connected China to the Mediterranean Sea. For centuries, the "Silk Road" also enabled the transmission of knowledge and ideas between the Eastern and Western worlds. The Silk Road was important because it helped to generate trade and commerce between a number of different kingdoms and empires.

                            



 

Now, let's move on to how to go international

 

1) Outsource - not just manufacturing. For example, American and British companies built their companies abroad in order to get more profit.

2) Exporting and importing - exchange rate is an important element in exporting and importing.

3) Franchising - for example, Subway, Kfc and Burgerking.

   

 

 

4) Joint venture -  In Dubai, joint venture is an indispensable element. Sometimes, it could cause conflits between two senior managers.

 

The next topic I would like to focus on is the context of international trade.

This is composed of four elements: Political, Economic, Socio-cultural, Technological and Legal.

 

Political - It is safe to say that we should be aware of political stability and level of corruption.

Economic - Theory of absolute advantage.

Cultural - We can experience a lot of cultures regardless of long distances. 

Technological - It is necessary for country to has a good infrastructure in order to do international trade.

Legal - Trade agreement is an indispensible element to own legal binding. 

 

Lastly, I am going to mention World Trade Organisation (WTO) that is a symbol of international trade. The WTO was formed in 1995 and has 157 member countries working together to supervise and liberalise international trade. In addition, the WTO provides a framework for negotiating and formalising trade agreements, and a dispute resolution process aimed at enforcing participants' adherence to WTO agreements signed by representatives of member governments.

 

             

  

 

In conclusion, I discussed the definition of international business  and then how to go international in more detail by using a variety of examples (such as Burgerking, The Silk Road, Apple, WTO, Tesco ,Samsung). Therefore, businesspeople should know a wide range of perspectives from differnet sections to be successful.

 

                                 

 





Entry 4 (IY1 Introduction to Business and Management)

Entry 4

In this entry, I am going to discuss macro environment, PESTEL analysis and stakeholders. 

The definition of macro environment

The macro environment is defined by Jones and George (2008) as " the wide-ranging global, economic, technological, sociocultural, demographic, political, and legal forces that affect an orgnaisation and its task environment.

The defintion and importance of PESTEL analysis  

A PESTEL is an acronym that stands for Political, Economic, Social, Technological, Environmental and Legal factors of the external macro-environment. Such external factors usually are beyond the firm's control and sometimes present themselves and as threats. For this reason, some say that PESTEL is an appropriate term for these factors (Nejati et al., 2008).

The examples of PESTEL factors 

1) Political : Taxation policy, Privatisation and deregulation policies, Environmental legislation, Health & safety regulations, Public expenditure controls, European Union directives and Government stability.   

2) Economic : Interest and inflation rates, Consumer confidence, The business cycle, Economic growth prospects, Unemployment rates and Disposable incomes.

3) Socio-cultural : Values in society, Changing consumer preferences, Levels of education and Changing lifestyles. 

4) Technological : Alternative means of providing services, Scientific discoveries, Changing communications technology, New production technology and State of infrastructure. 

5) Environmental : Climate change, Water resources and Energy Supplies. 

6) Legal : Employment law, Company law and Business regulation.  

                                  
                                               

 

 

The definition of stakeholders

 

Freeman and Reed (1983), for instance, suggest one broad and one narrow interpretation of the term stakeholder. The wider definition embraces "any identifiable group or individual who can affect the achievement of organisation's objectives or who is affected by the achievement of an organisation's objectives" (Freeman and Reed, 1983: 91). In a narrow sense, the authors define a stakeholder as "any identifiable group or individual on which the organisation is dependent for its continued survival" (Freeman and Reed, 1989: 91).

 

 

                                                           

In the light of my own experience in an English academy, we had the problem related to the number of students when Korea was in a robust economy. In other words, enonomical factor that is one of the PESTEL analysis's factors had a major influence on our English academy. On top of that, increased tax plus recession caused decrease of investing private education from millions of parents.

In conclusion, I examined the defintion of macro environment, PESTEL analysis and stakeholders. In addition, I described the economical factor of  influence on my former English academy with my own experience. Consequently, companies should take into consideration a lot of factors in order to survive in a fast-changing business.

 



Entry 3 (IY1 Introduction to Business and Management)

Entry 3

In this entry, I am going to illustrate internal environment and micro environment.

The definition of business environment

!) According to Arthur M. Weimer, " Business environment is the climate or set of conditions - economic, social, political or institutional in which business operations are conducted."

!!) According to Bayard O.Wheeler, " Business environment is the total of all things external to business firms and industries which affect their organisations and operations.

Business environment has two components:

(1) Internal environment : people, finance, technology, power, culture, objectives and structure.

(2) External environment (Micro/Macro) : micro environment includes suppliers, customers, competitors, potential entrants and substitutes.

Examples of change in each element of the organisation( internal environment)

# Objectives   1) Developing a new product or service.
                    2) Changing the overall mission or direction.

# Technology  1) Building a new factory.
                    2) Creating a website on the Internet.
# People - 1) Design a training programme to enhance skills.
             2) Changing the tasks of staff to offer a new service.
# Structure - 1) Reallocating functions & responsibilities between department.
                 2) Redesigning work to improve communication and efficiency.

The definition of micro environment

!) According to Philip Kotler, "The micro environment consists of factors in the company's immediate environment which affect the performance of the business unit.

!!) According to Hill and Jones, "The micro environment of a company consists of elements that directly affect the company.

Porter's five forces are widely used to assess the structure of any industry.

Porter's five forces are the:
1) Bargaining power of suppliers
2) Bargaining power of buyers
3) Threat of new entrants
4) Threat of substitutes
5) Rivalry among existing firms

                                                  

 

 

 

Given my experience in an English academy, there were a great number of business environments regardless of internal and external environments. First of all, internally, the president of academy executed a plan to redesign work in order to improve efficiency and communication.

In addition,  an institute owner sent his staffs a certain seminar so as to enhance employee's skills. Secondly, externally, there were a lof of competitors that teach English. As a result, our academy tried to attract a great many students, providing discount coupons and employing teachers who were much in demand from a lot of parents.

 

 

To conclude, I mentioned definition of business environment, internal environment and external environment in more details based on my personal experiences. In the business world, business environment is unavoidable situation. Therefore, organisations should deal with a variety of environmental factors well.   

 





 

 

 

 

Entry 2 (IY1 Introduction to Business and Management)

Entry 2

Starting from now, I am going to talk about the structure of organisation.
 
Why is the structure of organisation important?

I can tell you three major reasons why the structure of organisation is important.

1) An organisational structure enables the organisation to change or to respond according to its environment.
2) A clear structure makes it easier to see which part of the business does what.
3) Organisational structure is particularly crucial for communication.

What is span of  control?

It is the number of employees over whom a manager or supervisor has authority.
In addition, there are two types of span.

                                                                       1) Narrow

\

                                                                         2) Wide

                                               There are many ways to structure a business.
                                                       I am going to discuss two methods.
                         
                                                              (!) Functional structure

                                 

                                                  This structure has good and weak points.
                                          
                                                                    Advantages


                           1)  Specialisation : each department focuses on its own work.
                           2)  Accountability : someone is responsible for the section.
                           3)  Clarity : know your and others' roles

                                                                  Disadvantages
 
            
                           1) Closed communication could lead to lack of focus.
                           2) Departments can become resistant to change.
                           3) Coordination may take too long.
                           4) Gap between top and bottom.

                                                               (!!) Matrix structure
                                      

                                  

                                         This structure has good and weak points as well.

                                                                      Advantages

1) Communication within the team is easier.
2) Specialists can contribute new ideas and see problems in a different way.
3) A close team can be dynamic and enthusiastic, leading to high level of motivation.
4) Project managers are directly responsible for completing a project on time and within the budget.
5) Individuals can be chosen according to the needs of the project.

                                                                   Disadvantages

1) People may have more than one boss.
2) There can be conflict between line managers and project managers over the allocation of resources.
3) If a matrix system is superimposed on an existing structure it can increase staff costs as more managers are created.
4) Can be difficult to control and monitor if teams have a lot of independence.


As for me, I experienced functional structure in an English academy. I could easily saw people doing their specific parts: driving, managing people, managing finances and teaching English. It not only represented the specialisation of their tasks but also accomplished their own works efficiently, having responsibility and clarity. However, I found some problems. For example, it was hard for me to communicate with  immediate supervisor. Moreover, it often took a lot of time to do something together becasue they were accustomed to doing their sections.


To conclude, I mentioned the reason why the structre of organisation is important, the span of control and the pros and cons of two major structures: functional and matrix structures. What is more, I dealt with functional structure with my real experience. Therefore, structures of organisations should be placed in the right place, considering their advantages and disadvantages in all aspects.   

Entry 1 (IY1 Introduction to Business and Management)

Entry 1

From now on, I am going to describe the definition of organisaition and then four main characteristics of organisations.

The definition of organisation

 

!) An organisation is a social arrangement for achieving controlled performance towards goals that create value.’ (Boddy, p.7, 2011)

!!) According to Haimann, " Organisation is the process of defining and grouping the activities of the enterprise and establishing the authority relationship among their."

!!!) According to McFarland, " An identifiable group of people contributing their efforts towards the attainment of goals is called organisation."

 

      We can easily see a lot of organisations all over the world.

 

 

 

              All companies have four major characteristics.

 

1) People - all organisations are composed of people regardless of  their sizes. 

2) Objectives - the organisational objectives of a company provide employees with guidance in order to please their managers. 

3) Structures -  a clear structure makes it easier to see which part of the business does what

4) Management - management is the process of achieving organisational objectives, within a changing environment.

             In my experience, I worked at an English academy.

 

There are the characteristics that I mentioned above.

Firstly, the academy had a lot of people who do their tasks, such as teaching, answering the phone and driving. Each individual member had focused on its work.

Secondly, the institute had clear target(Canwell & Sutherland, 2003).

 It gives students good mark in English exam or ability to speak,listen,write and read English in order to communicate with people in the world. This enables students to get more opportunity.

Thirdly, the structure of company was pyramidal structure.

Therefore, I could not communicate with immediate supervisor. I always received command.

Lastly, the academy made good use of finance, materials and people, bringing about good services and reputations to their students. This is because the company has made a lot of money. 

In conclusion, I discussed the four major characteristics of organisations based on my personal experience. That is people, objectives, structures and management. Therefore, organisation should consider four main elements to obtain the most from limited resources.