Discuss about the Business Needs and Standards of Educated Graduates.
The assignment is a literature review to study the needs of the business organisations and the attributes of the higher educated graduates in Australia. The assessment opens with a study of the business needs of the organisations. The second section studies the market of Australia and points out its main industries where the educated graduates can work. The final section studies the attributes of the graduate candidates of Australia and delves into the higher education system of the country.
Martin and Adrada-Rafael (2017) in their work state that business organisations IN Australia operate to fulfil their business needs. They state that the apex management in these business organisations set goals and objectives for the business organisations to run successfully and earn profits. Cabrera et al.(2016) defines business needs of organisations as the high degree of performance which need to achieve in order to sustain in the highly competitive market and earn profits. Business needs of organisations can be of various types like gaining high profits, gaining high competitive position it market, obtaining a global consumer base to achieve repeat business, offering the customers high quality products at affordable costs and gaining customer loyalty.
Allen & Kraakman (2016) state that the two most important business needs of the organisations are earning profits on continuous basis and competitive advantage in the market. He states that the shareholders invest capital; in the business organisations which support all its operations and hence, the foremost needs of the business organisation should be bringing about capital maximisation of the shareholders. Bamiatzi et al(2016) supports Allen and Kraakman and states that business organisations require to earn huge profits in the market to gain competitive advantage. The business organisations in his opinion are required to earn huge profits to sustain in the competitive market. Most of the big business organisations are public limited companies that raise huge capital from the security market. The investors invest huge amount of money in the securities market which form the source of financial strength of all the public limited companies. This strong financial capital base helps the companies to invest huge funds into production of high standard goods and services. They are able to sell their products to a huge consumer base and thus earn huge profit. Again it can be stated from the discussion that high profits allow the multinational business organisations to invest in carrying out innovations aimed at manufacturing more consumer oriented products. These products help the companies to gain a loyal base of consumers who consume their products on regular basis. The business organisations use this loyal consumer base to counteract the threats from new entrants and rival companies. Thus, it can be stated that high profitability contributes towards achieving high competitive strength in the competitive market. Rao (2017) contradicts the previous author and points out that competitive advantage can no more achieved by profitability alone. He pointed out that good corporate governance and gaining stakeholders’ support can contribute more towards gaining of competitive advantage in the market.
Gaining stakeholders’ support by benefitting them:
Oyewunmi et al.(2017) state that stakeholders have the power to impact business organisations and their business outcomes directly and indirectly. They state that stakeholders like customers are capable of directly impacting the profitability of organisations because they are the ones to buy their products and generate revenue for them. The government, the financial institutions, international organisations and apex bodies like the Australian Securities Exchange make laws and policies for the organisations to follow while operating in the market. The suppliers provide raw materials to these organisations while the distributors distribute their gods in the market. The employees operate and execute the business plans while the society encourages them to produce goods to earn profits. The customers, governments and the suppliers have the power to impact the profitability of the organisations and even lead to their failure. According to Rao (2017), it has become crucial for the business organisations to protect stakeholders’ interests through corporate governance. The business organisations toady incorporate stakeholders’ interests in their business strategies to attract stakeholders like customers. Thus, this analysis shows that corporate governance and protection of stakeholders’ interests contribute to earnings of high profits.
Cost reduction and sustainability-New business needs in Australian organisations:
Christopher, M. (2016) states that the organisations in Australia are under continuous pressures of achieving cost reduction and sustainability which have evolved as two new business needs. The stakeholders like the government s, customers, suppliers and society as which put great emphasis on business organisations to operate in economic manner and attain sustainability. The government of most of the competitive markets like Australia have enacted laws to ensure that business organisations act in ways to reduce cost of operations. He & MacGregor(2016) state that companies today aim to reduce their expenditure to and operate more sustainably. The business organisations today prefer to obtain raw materials from sustainable supply chains which provide them with high quality environment friendly raw materials. This reduces their waste emission and allows them to use their inventory more efficiently which helps them to make maximum utilisation of raw materials. The customers today prefers to buy products from producers who use sustainable methods of production. Thus using sustainable means of acquisition of raw materials and production of sustainable goods enable the organisations to sell their goods to a huge consumer base. This generates huge revenue for the business organisations which allow them to spread their expenditure over a huge body of revenue. Tozlu, AÖzahi and Abu?o?lu (2016) add to Mcgregor and state companies instead of dumping wastes from their production processes prefer using these wastes to produce energy using Waste to Energy(WTE) technology. They produce methane which they can use as fuel in the production processes. It also saves their expenditure towards acquisition of expensive non renewable sources of energy like coal and petrol. Thus companies can thus reduce their energy expenditures by becoming energy efficient. Moreover the multinational companies today can earn extra revenue by selling their surplus energy to smaller firms. This discussion shows that sustainability helps the companies to reduce their cost of operation and utilise the raw materials more efficiently even in the waste material stage. Henderson(2017) contradicts with Henderson, Golring and Simeon-Dubach and states that installation of WTE plants require huge initial investments in technology and personnel. It can be opined in the light of the above discussion that big public companies have the technological and financial strength to invest huge amount of capital into sustainable and expensive technology. Most of the small firms in Australia are not capable of investing such amount of capital to attain sustainability, energy efficiency and cost reduction. Thus this analysis shows that the relationship between sustainability and cost reduction is not constant. The two business needs are directly proportional for the large business houses but inversely proportional for small firms.
A summary of the business needs of organisations:
The business organisations on toady have several business needs like maximising profits, gaining and retaining competitive advantage, satisfying stakeholders’ needs to ensure their long term support and attainment of sustainability. The discussion above shows that profitability and high competitive strength are interlinked where one encourages the other. Similarly sustainability and energy efficiency help the companies to reduce their energy expenditure. However it must be pointed in all the business are interrelated and interdependent. For example, following of sustainable methods of operation creates a strong image of organisations in the markets like Australia. This positive image helps the companies to attract customers and generate high revenue by sell products to them. Again catering to multiple needs of customers earns the companies a loyal base of consumers who give repeated business to the companies. This helps firms to gain competitive advantage in the market which helps the companies gain more market penetration and maximise their profits. This earned profit can be invested towards attainment of further sustainability, energy efficiency and business expansion. Hence it is evident from the discussion that the business needs are interdependent. The business organisations aim to satisfy all these needs to retain their leading market position.
Hutchens(2017) states that Australia’s economy is a very stable economy and is experiencing strong development which has not faced recession. This economy stability has laid to the expansion of the industrial sector which is creating job opportunities (Bourke, 2017). The Australian economy is among the fastest growing economies in the world. The most important industries in the country are mining, business consulting, energy and health and pharmaceutical company. The business needs of the Australian companies are to earn more profits, gain more competitive advantage in the international job market and gain larger consumer bases in the international market. According to Oyewunmi et al(2017) this would require the industries to acquire talented and educated work force having the skills and competencies to perform efficiently to promote towards high performances of the Australian companies.
Attributes of the highly educated graduates in Australia:
Bamiatzi et al.(2016) states that the companies of Australia would require to acquire talented and highly educated graduate employees having skills and competencies to lead them towards achievement of higher position in the global market. The higher education system in Australia consists of university, autonomous institutions and independent organisations imparting technical education. The country has thirty eight public universities and three private universities. The government of Australia has created a framework to link education at graduate level to the requirements of the corporate sector. The Australian Qualification Framework provides education in doctors, post graduate degree and bachelor degree(The Australian Higher Education System,2017). The Australian educational institutes provided graduate education in several areas like management, engineering, electronics, medical sciences and law. The Australia Bureau of Statistics states that the number of unemployed workforce is falling while the rate of employed rate is on the rise (abs.gov.au, 2017). An analysis of this discussion shows that graduates of Australia are educated enough to lead the organisations. They have the leadership skills and competencies to ensure high level of performances and career growth. Laurence & Karnon (2016) state that the employers today emphasis on ensuring health and safety of their highly skilled and talented workforce. The highly competent graduates who join the organisations after completing their higher education have the skills and competencies which help them to contribute towards high performances of the organisations. Thus it can be inferred from the discussion that the graduates who form a significant part of Australia’s workforce are highly talented and skilled. The employers provide these skilled graduate employees with training to further enhance their skills.
It can be concluded that business organisations have several needs like maximisation of profit, achievement of market competitiveness, creating consumer base, sustainability and cost reduction. These needs are interdependent and interrelated. The organisations today achieve these needs simultaneously. The market of Australia is economically developing which creates need for more educated human resources. The educational institutes of Australia provide high degree of secondary education and provide the industrial sector with educated graduates. These graduates are competent to lead the Australian companies towards higher degree of achievement of the business needs.
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