Introduction about the role of sustainability in Marketing and Management relate it to the journal article to explain the aim of the essay and use a few references
- Identify at least 5 key points from the journal article
- Discuss each key point in order by using good sources of reference (journal, books, other articles etc.)
- Critically assess the points as made in the journal article. Whenever you give your opinion, support them using references
- The future? Improvement? Did the journal article hit the target, could it have been improved, what more could have been said, etc…
Modern concept of management in various fields includes application of various policies and strategies specially with respect to maintaining sustainability. Sustainability has to be maintained with respect to marketing as well as in number of management functions carried out in an organization. The study work presented below therefore describes the importance of satisfying needs of customers by keeping an alignment between organizational environment and entire industry (Turner, 2014). It is therefore a broader concept explained to determine the necessity for making maximum possible use of available resources to satisfy market needs and thereby lead in global market. Similar to policies of marketing, the concept of management at various levels in organization considers the importance of achieving maximum targets with minimum application of resources. Examples of various organizations such as Mc Donald’s, Hershey’s chocolate, chain of hotels and restaurants, etc have been considered to determine how these organizations carry out research work on analyzing impact of various factors prevailing outside organizational environment (Turner, 2014).
Multinational and international organizations that are carrying out business activities in number of countries, needs to adjust its internal business environment with that of respective industry. For example, Mc Donald’s is an organization that designs its strategic principles and policies keeping in consideration the impact of various factors that usually prevail within outside industrial environment. These factors are important to be considered as these can adversely impact very existence of an organization in international markets. Current leading position of Mc Donald’s can be accredited to importance given on understanding factors that are generated to due trends prevailing outside business environment. This section therefore provides detailed description on PESTLE analysis that is an abbreviation of factors including political, economical, socio-cultural, technological, legal and environmental factors (Anderson and Anderson, 2010). Each of these factors influencing the concept of sustainable management has been explained below:
Political: Political factors include government intervention in respective economies. Also, there are number of organizations working at global level. Therefore, policies and restrictions imposed by governmental authorities and global business organizations are factors that must be considered by organizations working in international market. Business activities are thereby carried out by gaining complete understanding of laws framed by various political authorities, for maintaining long term position in global business environment. Laws and policies implemented by international trade organization are designed for creating better business environment in international market. It is thereby important to consider impact of such policies that are required to be followed to sustain in global market.
Economical: Decision making of multinational firms depends on factors determining exchange rates, inflation rate, etc. Business activities that are carried out on large scale usually involve import and export of goods and other required materials thereby affecting overall cost structure of respective firm (Hayes, 2014). Thus factors determining economic condition on global basis must be studied carefully.
Socio-cultural: Demand for products and services in global market, is directly proportionate to trends followed by millions of customer residing in different geographical areas. Total population and average of age groups influence overall demand. Moreover, beliefs and desire of customer keeps on changing and it is thereby important to maintain a balance between demand and supply so as to sustain in competitive business conditions created by various competitors having varied geographical origin.
Technological: Technological changes occur most often on account of increased expertise and knowledge of various experts. Increasing competition created immense pressure on international organizations wherein they have to keep up-to-date information regarding change in technology. Technological factors must be considered for conducting research and production in most effective manner.
Environmental: Number of environmental factors must be integrated to analyze weather and climatic conditions that prevail outside organizational environment. This would provide surety of quality of goods and services with respect to fulfillment of various criteria drawn by top most executives. An organization that is involved in dealing with import and export on larger scale must fulfill conditions stated by political authority of respective region. Therefore, the products and services must cause any harm creating environmental quality destruction within any of region wherein it is working in.
Legal: Demand of a product depends on extent of efficiency of global enterprises in following laws framed by political authority of respective region. Every country has its own set of laws regarding health, safety, employment, etc. It is therefore important to undertake required research on highlighting trends followed and need for improvement, so as to promote goodwill image in global market.
Changes are bound to occur in international marketing environment. Number of factors plays an important role in generating am impact on business environment in particular and entire industrial environment in general. Hospitality industry, clothing industry and food industry, etc are sensitive to change. Changes that occur within industrial environment and customer’s preference create greater impact on strategic policies implemented by higher authority to stay highly responsive to number of carriers of change. Factors that exhibit in industrial environment or economy of respective geographical area are considered macro factors whereas factors that exist within organizational environment are regarded as micro environmental factors (Hornstein, 2015). Detailed research and analysis on these changes enables an organization to keep an alignment with number of changes by satisfying current demand as well as creating strategic plan for future needs and preferences of prospective customers. This also requires study work to be carried out for understanding economical stability of respective economy, so as to provide a boost to rapid economic growth.
Triple Bottom Line Approach
International business organization must consider various prospective that promote business value and image in industry to which they belong. Three major prospective to be considered for achieving sustainability are financial, social and environmental. Financial prospective plays an immense role in generating business value on the basis of evaluation of performance during respective financial year. Social prospective provides guidelines for maintaining positive image within society wherein business activities are carried out. It is thereby important to fulfill social responsibilities for providing services to customers. Corporate social responsibility is the term considered important to gain higher level of trust from customers. Lastly, environmental prospective provide guideline to abide by rules and regulations framed by political authority of respective economy. These prospective, thus provide immense support to an international business organization for pulling customers from across the globe (Lin, 2011).
Change and Sustainability
Number of factors and trends prevail within different industrial environment creating an impact on organizational behavior and strategies to be implemented to align with changing requirement of international environment as well as customers that belong to different geographical areas. Factors and trends bringing a change within an industry must be studied carefully for exploiting opportunities of expanding business activities. International marketing has a wider scope wherein economic conditions, legal frame and political assistance must be taken into consideration to maximize advantages by applying tactics to provide competence to various rivals and competitors. Following are some of the factors that play an immense role in designing of strategic planning structure of organizations that must be flexible enough to align with each of them:
- Competitors: International business environment has higher level of competency that prevails within each of industry on account of number of participants or players. Multinational organizations therefore intend to maximize customer base rather than just maximizing profit percentage. It is therefore required to gain complete information regarding strategies and tactics applied by rivals, to design a structure that is effective in providing better goods and services to customers across the globe and create better position in international environment (Hamraz, Caldwell, and Clarkson, 2013).
- Exchange rate factors: Depending upon economic condition of an economy and role played by political authorities, analyses on economical stability of respective economy can be drawn. Rate of inflation, deflation, gross domestic product and economic growth rate determine the exchange rate that influences overall cost incurred for importing or exporting goods and commodities. Lower exchange rate are beneficial for organizations that are involved in importing required materials for completing production whereas higher exchange rate can reduce total percentage of profit on account of higher rate of exchange.
- Customers: It can be undoubtedly included here that customers are King within every industry. It is important for an organization to satisfy changing needs and preferences of these customers to maintain strong image against number of rivals across the globe.
Sustainability management deals with not only satisfying current customer requirements but also provides a basis for establishing efficiency in maintaining stronger bond with customers in future too. Number of factors assists in aligning with changes for sustaining within dynamic industrial environment. Core competency and strength of organization can promote financial stability and making respective organization flexible to dynamic business environment. Immense efforts must be laid upon making maximum possible benefits out of available financial and human resources (Seddon, Calvert, and Yang, 2010). Resources possessed by an organization can be applied in most efficient manner to maximize level of sustainability for surviving within ever changing industrial environment of international business. For example, organizations that belong to hospitality industry must maximize number of benefits and advantages to provide a strong defeat to rivals.
It can be hereby stated that sustainability with respect to various global changes occurring in international market is an important aspect of strategic management. Managing with trends and factors that have an impact on customer needs and preference is considered in designing a structure for satisfying customer’s demand. This enables various international organizations to lead current market position as well as prepare a strategy that will be applied for exploiting opportunities in future. Study of management therefore considers application of principles of sustainable management by multinational firms, to maintain positive image among millions of customers.
Turner, J.R., 2014. The handbook of project-based management (Vol. 92). New York, NY: McGraw-hill.
Anderson, D. and Anderson, L.A., 2010. Beyond change management: How to achieve breakthrough results through conscious change leadership. John Wiley & Sons.
Hargreaves, A. et.al., 2014. International handbook of educational change: Part two (Vol. 5). Springer.
Hayes, J., 2014. The theory and practice of change management. Palgrave Macmillan.
Hornstein, H.A., 2015. The integration of project management and organizational change management is now a necessity. International Journal of Project Management. 33(2).pp.291-298.
Lin, B.B., 2011. Resilience in agriculture through crop diversification: adaptive management for environmental change. BioScience. 61(3). pp.183-193.
Hughes, M., 2011. Do 70 per cent of all organizational change initiatives really fail?. Journal of Change Management. 11(4). pp.451-464.
Seddon, P.B., Calvert, C. and Yang, S., 2010. A multi-project model of key factors affecting organizational benefits from enterprise systems. MIS quarterly. 34(2), pp.305-328.
Hamraz, B., Caldwell, N.H. and Clarkson, P.J., 2013. A holistic categorization framework for literature on engineering change management. Systems Engineering. 16(4). pp.473-505
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