Comvita
The organization Comvita was founded by Claude Stratford and Alan Bougen in 1974 with the inherent desire to improve the health of people of New Zealand (Comvita.co.nz, 2018). According to the motto of the organization under discussion here bees are their inspiration whereas honey their medicine (Healthpost.co.nz, 2018). The organization is known for the wide variety of honey that they offer to the customers, especially the Manuka Honey, which can be traced back to its source (Comvita.co.nz, 2018). The organization rather than taking the help of artificial means for the manufacture of honey has cultivated more than 40,000 beehives from which the honey that the organization sells is extracted (Comvita.co.nz, 2018). More importantly, the organization is currently trying to use Manuka Honey for medicinal purposes (Healthpost.co.nz, 2018). Two of the most important products for which the organization is famous are Manuka Honey and fresh-picked Olive Leaf Extract (Comvita.co.nz, 2018).
PESTLE Analysis
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Political Factors
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· New Zealand enjoys a stable political environment
· Limited number of political strikes and struggles
· National government takes initiatives for the promotion of business in the nation
Opportunity: This actually acts as an opportunity for the organization which it can utilize to expand its business into the different parts of New Zealand.
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Economic Factors
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· One of the most stable economies of the world (Nzherald.co.nz, 2018)
· The global recession which adversely affected the economies of the different nations of the world had very little effect on the nation
Opportunity: Comvita can utilize this stable economy of the nation to earn a high revenue and thereby financial growth.
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Social Factors
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· The people of the nation are very conscious regarding their health (Healthpost.co.nz, 2018)
· Consumption of honey and its related products is high among the people
Opportunity: This actually acts as an opportunity for the organization since it can use this social trend to sale its products.
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Technological Factors
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· New Zealand is a fairly advanced nation in terms of technological advancements
· Online as well as e-commerce modes of business are extremely popular in the nation (Nzherald.co.nz, 2018)
Opportunity: This means that the organization will not have to depend on the technological advancements of the other nations and thus this act as an opportunity for the organization.
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Legal Factors
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· Organizations had to abide by various legislations of the national government like Fair Trade Act, Fair Wage and others (Huhtala et al., 2015).
Opportunity: These legislations are likely to make the corporate governance policies of the organization more effective and thereby help in its effective management.
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Environmental Factors
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· Organizations operational in the nation had to abide by the Paris Agreement (2016) and thereby take initiatives to reduce the pollution done by them by more than 2% (Nzherald.co.nz, 2018).
· The organizations also need to abide by the various governmental legislations related to environment
Opportunity: Effective pursuit of these conventions will enable the organization to attain a positive brand image and thereby higher growth.
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Organizational Culture and Comvita
As opined by Lee and Kramer (2016), organizational culture refers to the collective beliefs, values and other attributes which contributes in a substantial to create the unique identity of an organization. O’Reilly III et al. (2014) are of the viewpoint that along with the beliefs, values and culture of the employees, the mission, vision, culture and other attributes of the founding fathers of the organization also contribute in a substantial manner towards the overall organizational culture. Comvita has evolved its own unique organizational culture wherein the bees, beekeepers and the employees of the organization occupy equal pedestals. The net result of this is the fact that the organization has evolved the kind of culture wherein the bees as well as beekeepers are not only respected but at the same time measures are taken for their protection as well as conservation (Healthpost.co.nz, 2018). In addition to this, the protective and conservative culture that the organization has evolved also gets manifested in its “Trees for Bees research program” (Comvita.co.nz, 2018).
As articulated by Valmohammadi and Roshanzamir (2015), the organizational culture which is being followed within an organization is correlated with the performance of the employees. This becomes apparent when a look is taken at the organization under discussion here. For example, the employees are encouraged to not only inculcate an effective relation with the bees and the beekeepers but at the same time to treat them as part of the concerned organization itself (Comvita.co.nz, 2018). Thus, the employees can not only learn how to protect the bees and the beekeepers but also to use these natural resources in an ethical manner as well. This culture has affected the performance level of the organization in a positive manner since the effective relationship which the organization shares with the bees and the beekeepers is being utilized by it to attain a higher level of growth. Furthermore, this effective culture not only enables the organization to produce better quality as well as higher quantities of honey and thereby earn a higher profitability.
Organizational Structure and Comvita
Marshall, Metters and Pagell (2016) are of the viewpoint that the notion of organizational structure refers to the structure or the pattern which is being followed within the framework of an organization so as to maintain a clear hierarchy within the organization. As opined by Huhtala et al. (2015), two forms of organizational structure had gained prominence within the framework of contemporary business world, namely, mechanistic and organic. Mechanistic organizational structure is a highly centralized one wherein employees with specific specialization are entrusted with those kinds of jobs (Van der Voet, 2014). On the other hand, the organic organizational structure refers to the kind of structure which is decentralized and there is no clear demarcation between the job roles of the different employees (Ashkenas et al., 2015). Comvita follows a mechanistic organizational structure within the framework of its organization wherein specific job roles are being allocated to specific individuals. In addition to this, it is seen that the organization is a highly centralized one wherein the employees are required to follow the hierarchical structure which is being followed within the organization (Healthpost.co.nz, 2018). For example, the beekeepers are required to report to employees of the organization, they in-turn are required to report to line-managers, they are required to report to general managers and so on. This not only enables the employees in the process of their work roles but at the same time helps the organization to attain a higher growth rate as well.
As opined by Lee, Kozlenkova and Palmatier (2015), span of control within an organization refers to the number of subordinates who can be managed in effectively by a superior. In other words, this term to a great extent also denotes the relationship and the work design between the senior and the junior members of an organization (Strese et al., 2016). Within the organization Comvita, it is seen that there are roughly around 50 employees under one supervisor and these employees are required to report the work that they have performed on a daily basis to these supervisors almost on a daily basis (Healthpost.co.nz, 2018). Furthermore, the supervisors are entrusted with the work of designing the job profile or roles of these employees and thus they always try to do it in such a manner that the employees are able to give maximum productivity.
Organizational Structures that Comvita can use
The two different kinds of organizational structures that the organization under discussion can integrate within its framework are functional and hierarchical organizational structures (Grochla & Szyperski, 2018). As opined by Boeva et al. (2018), the primary focus of functional organizational structure is on the specialty of the individuals who are a part of the organization and thus it is seen that the different levels or groups within the organization are categorized on the basis of specialty. More importantly, within the contemporary business world it is noticed that this kind of organizational structure has gained a substantial amount of prominence and helps the organizations to improve their performance in a substantial manner (Worley & Doolen, 2015). Another important organizational structure which is being extensively by different organizations is the hierarchical organizational structure. This is the kind of organizational structure wherein the owners of the organization are at the top of the organizational structure and the rest of the employees are subordinates to the other employees who are at a higher level than the other (Král & Králová, 2016). The net result of this is the fact that a sequential power or hierarchical structure is being followed within the organization. These two are the organizational structures that Comvita can integrate within the framework of its organizational structure.
Comvita is using a mechanistic organizational structure within the framework of its organization and this has a substantial amount of impact on the management practices that are being followed by the concerned organization. For example, it is seen that because of the centralized nature of structure which is being followed within the organization, the employees or their perspectives are not taken into effective consideration at the time of decision making (Santos, Pache & Birkholz, 2015). In addition to this, the responsibility of decision making and formulation of different kind of strategies or measures are associated with the individuals belonging to the higher management authorities. More importantly, it is seen that the management tries to promote an individualistic kind of work culture within the framework of the organization in synchronicity with the structure which is being followed within the organization (Carayannis, Sindakis & Walter, 2015).
Span of control refers to the number of employees a manager or supervisor needs to manage within the framework of an organization (Strese et al., 2016). Furthermore, it is seen that these managers are entrusted not only with the management of these individuals but at the same time with the improvement of their performance as well. For example, if the span of control between the in-line managers and the beekeepers is changed then it is likely that the beekeepers in the absence of any clear instructions would not be able to perform their job roles with the effectiveness with which they have been doing it (Worley & Doolen, 2015). On the other hand, it is seen that if the manager is transferred to some other department, the concerned individual would not be able to perform with the same effectiveness since the management styles of the two departments are completely different.
There are various advantages associated with the usage of a centralized organizational structure like-
- Helps in the enhancement of organizational performance through the centralization of power within the organization (Van der Voet, 2014).
- New Zealand score high on the individualistic index of Hofstede’s cultural model and thus the individualistic style of work that this structure promotes enables them to perform in a much better manner (Lee & Kramer, 2016).
- The majority of the instructions and communications are in written form and thereby the employees find it easier to follow them
- Clear and concise allocation of tasks and job roles
The advantages associated with the use of a decentralized organizational structure are as follows-
- Lesser number of rules and regulations makes it earlier for the employees to perform in a better manner
- A collective kind of organizational culture forms the cruix of the organizational wherein the employees can work in a collective manner (O’Reilly III et al., 2014).
- Verbal model of communication which is being followed within the organization makes it easier for the employees to understand the messages or information
Sustainable Business Practices
Comvita is known for the various kinds of sustainable business practices which it had been using since the year of its foundation. For example, it is seen that the organization rather than using the artificial means of honey manufacture has sought the help of natural measures for the same time (Healthpost.co.nz, 2018). In this regard, it needs to be said that the organization currently harvests more than 40,000 beehives and there are many beekeepers associated with the concerned organization, who are entrusted with the overlooking of these hives (Comvita.co.nz, 2018). Thus, it can be said that this action of the organization contributes in a positive manner towards the cause of the environment by ensuring the fact that the species of bees do not get extinct. In addition to this, the leaders as well as the stakeholders in order to contribute in a substantial manner towards the cause of the society in which they are operational had started the use of honey as a medicine. More importantly, the mission of the organization to improve the health of the people through the use of natural resources becomes apparent in the above mentioned actions of the organization.
One of the major illegal practices observed within the contemporary business world is the “payment of Government officials” to attain tenders, contracts and other similar kinds of leverages. It is pertinent to note that the bribing of governmental officials is not only unethical and immoral but at the same time illegal in New Zealand (Weiss, 2014). For example, it is seen that the national government of the nation has passed various kinds of legislations like Anti-Corruption Act, Anti-Bribery Act and others for the mitigation of these problems within the nation (Chell et al., 2016). The organization under discussion here ensures the fact that no such practices are being followed within premises. Furthermore, the corporate governance policy followed by the organization also denounces such practices as not only immoral but illegal as well.
The corporate governance policy followed by the organization strictly prohibits such actions and imposes stringent penalties of any individual who is found indulging in such practices within the organization (Comvita.co.nz, 2018). There are various adverse effects of these practices like distortion of tender processes, favoritism and others. The net result of this is the fact tenders and similar kinds of contracts are given to individuals or organization, which are not capable of completing them in an effective manner (Boeva et al., 2018). Furthermore, this can affect the brand image of the organization in an adverse manner since the organization by indulging in such action intends to bring about its own growth by depriving others of their basic rights (Chell et al., 2016). This can not only take a toll on the fortunes of the organization under discussion here but the stakeholders associated with them as well (Weiss, 2014). The same can be said regarding favoritism as well and thus it can be summarized that these practices are not only illegal but unethical as well.
The organization in the recent times in order to enhance its productivity and thereby profitability is focusing more on the aspect of quantity rather than quality (Nzherald.co.nz, 2018). The net result of this is the fact that the quality of products offered by the company in the recent times has deteriorated in a substantial manner and the brand image of the organization is getting adversely affected because of this (Nzherald.co.nz, 2018). Thus, the organization needs to make a decision regarding the course of action that it needs to follow. In this regard, ethical behavior is required on the part of the organization. As opined by Chell et al. (2016), the notion of ethical behavior requires the organizations or the individuals to act in a manner which is not only ethically but morally justified as well. As per the theory of Kantianism, the “end result justifies the action which has been taken for the attainment of the same” (Weiss, 2014). The main objective of the organization presently is to increase the amount of revenue earned by them and thus it can be said that the means that the organization has adopted becomes justified on the basis of this theory. The positive aspect regarding the use of this method is the fact that it has helped the organization to increase the amount of revenue earned by it. On the other hand, the negative aspect of the same process on the business operations of the organization can be said to be fact that it is adversely affecting the manufacturing process used by the organization. This is likely to hamper the long-term prospects of the concerned organization.
The theory of Utilitarianism requires the individuals or the organizations to act in a manner which is likely to benefit the maximum number of people (Chell et al., 2016). The action of Comvit on the basis of this theory is a totally unjustified one since the below par quality of products offered by the organization is adversely affecting not only affecting the customers but is also likely to affect the organization in the longer run. The positive aspect regarding the use of this viewpoint will help the organization to improve its brand image by contributing in a positive manner towards the cause of the society (Lee & Kramer, 2016). This in-turn is likely to help the organization to gain success in the longer run. The negative aspect regarding the use of this process for the operations of the organization can be said to be the fact that this is a time consuming process and the profits would start flowing in only in the future time (O’Reilly III et al., 2014). Thus, for the attainment of profitability the organization would have to wait for a substantial amount of time.
References
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Comvita.co.nz, (2018). Comvita - Manuka Honey, Olive Leaf & Propolis. [online]. Retrieved from https://www.comvita.co.nz/
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Healthpost.co.nz, (2018). Comvita Manuka Honey Products & Reviews | HealthPost NZ. [online]. Retrieved from https://www.healthpost.co.nz/brands/comvita
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