Today’s stakeholders want more accountability. The debate over Corporate Social Responsibility (CSR) has shifted from whether companies should engage in CSR to how to make substantial commitment to CSR? The added pressure from stake holders has increased as accountability plays a key role for the demand for favourite brands grow. Consumers are more demanding than ever. Safeguarding the brand image and corporate reputation has become important as markets all over the world have become very competitive and image has become more vulnerable.
Moreover the strengths of the competitors would be known and accordingly the business policies would be developed. The table below shows the strengths and weaknesses of H&M, MANGO and M&S. Name of competitors Strengths Weaknesses H&M • Quality of fashion • Best price • Designing strategy • Market share • Healthy relations with designers (H&M Company, 2008) • High capital investments on machines • Policy of high inventory of products • Fashion trend changes so the inventory sometimes get wasted giving loss to the
The advancement is greatly influencing businesses. Performing environmental analysis on these factors will help you stay up to date with the changes. Sainsbury can use these factors for their benefit: • New discoveries • Rate of technological obsolescence • Rate of technological advances • Innovative technological platforms L FOR LEGAL FACTORS Legislative changes take place from time to time. Many of these changes affect the business environment. If a regulatory body sets up a regulation for industries, for example, that law would impact industries and business in that economy.
The varied nature of organisations and difference in personal values makes it compulsory to preserve a code of conduct which would prevent offenses (Reidenbach, Robin, 1989). The pressure group have a great influence on ethical and social marketing policies, this will be shown below, External social pressure has become the main driver in business ethics. This is especially true for small businesses in smaller populations. Strong considerations must be given by businesses in the areas of involvement of the general community and environmental responsibility. The information age has contributed considerably to this increase in importance of social pressure as word spreads rapidly when companies fail to follow social standards.
Entering new markets to reduce the impact of disease outbreaks and terror attacks also was a successful diversification strategy used by Ho. Though diversification is the favourable choice it requires considerable investment and a proficient workforce. Furthermore another external disaster could negatively impact the outcome. (Ansoff, 1958) In order for diversification to succeed in a new market, Banyan Tree needs to first evaluate the following: Attractiveness: Do customers find the industry attractive? Cost of Entry: Will it put a considerable strain on the company’s capital?
Rising concerns on the economics in today’s era of globalization has definitely left a huge impact on the international business organizations. Many of the organizations try to adapt to with the unpredictable economic changes by applying the external environments methods. This is to increase the consumer confidence as well as increasing the profits of their organizations. External environment refers to the environment that has indirect influence on the business. Some external elements can harm the organizations if it is misused therefore it has to be monitored at all times.
According to Tingchi Liu et.al (2014), the disadvantages of corporate social responsibility in the company are associated to the world’s development in order to save society from the environmental and economic issues. It is examined that NGO’s and government co-operation produce the better ways to solve corporate social responsibility issues and put the pressure on Tesco in order to integrate its CSR objectives and initiatives. Another disadvantage of CSR is a new policy that has been implemented by the company in order to take part in something new for the business. It can be said that CSR policies of the company have to pay for new training for staff, invest in effective waste systems with new marketing and new technology strategies. According to Vazquez-Carrasco and Lopez-Perez (2013), the stakeholder’s expectations are one of the disadvantages for the company because of the investment of them in the business.
For instance, the Singapore government aims to strengthen and entrench Singapore’s competitiveness and position as a trusted, world-class hub for business. While for Civil Society, there is a growing concerns from individual about how their personal data is being used. Lastly, a breach of personal data will led to serious consequences such as the lost of reputation and customers for businesses. These factor pushes the three coalitions to recognise the importance and the need of Personal Data Protection policy. All of these will be further explored in Assignment
Even until very recently, challenges in the society were deemed as the activists’ responsibility. (Kercher p.9 10-11) But according to researchers, it is very likely that as the impact of globalization, more and more will put social issues into their consideration in the process of making laws or shaping governmental policies. Furthermore, consumers will be stricter and interested in business ethics. One day, businesses will have no choice but to be extremely transparent about the way their business is
Environmental factors impact each part of business, be it its tendency, its area, the costs of items, the conveyance framework, or the work force arrangements. Henceforth it is critical to find out about the different parts of the business environment, which comprises of the financial perspective, the socio-social viewpoints, the political structure, the legal aspects and the technological viewpoints. Business environment is the whole of all external and internal elements that impact a business. You ought to remember that external components and internal elements can impact one another and cooperate to influence a business. For instance, a wellbeing and security regulation is an external variable that impacts the internal environment of business operations.