Essay: Organizational Effectiveness, Ethics, And Responsibility - A Case Study Of Ikea And Marks And Spencer.

The Importance of Organizational Effectiveness

Organizational effectiveness is a systematic approach in the improving the client outcomes, organization performance and capacity. Thus, the organizational effectiveness includes the procedures and structure to implement change and focusing on the improvement of the outcome and performance. Evaluations help in the organizational effectiveness; benching and monitoring the operations to eliminate the inefficiencies. Ethical behavior is crucial for an organization to embrace. In today’s world, the people are well-educated (Craig and Campbell 2012). Therefore, company acting in an unethical manner, there will lose existing and potential customers. Additionally, the company can lose the potential employees if they do not comply with illegal operations.

Organization responsibility is an ethical behavior of business in the running of the firm. Sustainable business, corporate social responsibility, corporate citizenship and corporate social performance comprise the organization responsibility (Hill and Hill 2012). Examples of the unethical behavior include deceiving people, breaching the contract, misleading people during marketing and advertisement, dishonest, greedy, people's feeling manipulation. Ethical is subjective; the values of the moral vary depending on the era and religion.

People need a sense of the morality to follow the rules and regulation set by the society. For instance, the Ikea furniture donates 1 $ to each product sold to the UNICEF to save children (Piercy 2014). Similarly, Ikea philanthropic initiative donates each sunnan solar-powered lamp to the UNICEF. Company reduces the usage of the chromium in the metals surface treatment and responsibly-managed forest to maintain the biological diversity and replant. Operations are crucial since it makes the day-to-day activities of the organization which creates the core objectives and different values. IKEA activities include the designing of the products, manufacturing, distribution and retailing their product at the end user (Mangan et al. 2016). Ikea provides well-designed and self-assembled flat furniture which is affordable due to the lower price.

The organizational environment comprises of the forces surrounding an organization that affects the operations, performance, and resources. The internal environment could be the leadership styles, organizations culture, employee’s behavior and the mission statement (Brown et al. 2013). External environment involves the economic situation, government regulation, public opinion, customers, and competition. The following is the marks and spencer SWOT analysis.

Strengths Include high recognitions of the brand over the world, a wide variety of the products like vegetables and fruits in their respective store (Sheth and Sisodia 2015). Additionally, the company has significant numbers of the outlets and stores which do the business to expand in the sales hence high return on the investment.

Ethical Behavior and Organizational Responsibility

The Marks and Spencer are currently non-trendy and therefore bad publicity. Some tend to thinks that men’s and women’s are for the old people, not the teenagers. The business should come up with the strategy on how to reach to the young people (David 2011). Company follows old techniques in the managing which further increase the cost. Hence the company should embrace the new technology which will improve the productivity of the enterprise.

Market segmentation: Marks and Spencer have a mega store all over the world, but there is no segmentation of the market according to the need and wants of the customer (Crane and Matten 2016). Therefore, the company has an opportunity to increase the segmentation techniques to create customer loyalty and increase the sales.

Internalizations: Marks and Spencer can open its stores all over the world through franchising agreement. For example, the importations of the products from the Europe to India, therefore, Marks and Spencer can venture into the Indian market, and their brand reputations can help in the sales of the product.

Marks and Spencer have a scope of losing its reach in the business operation due to increase in the competition such as Sainsbury and Tesco. While the marks and Spencer are relying on the stores, Tesco and Sainsbury are expanding through Tesco and Sainsbury’s local express.

Porters’ five forces models is a model for the technical analysis and strategic management. The threats of the new entrants; threats of the substitutes; powers of the customers and buyers; the powers of the suppliers; the nature and degree of the rivalry among industries business are the key component of the model. According to the porters, proper coordination’s and configuration helps in the business developing the cost leaderships and deliverance of the superior performance.

For the successful and desirable businesses, the firm should not only concentrate on the making the profit but also use the corporate power to solve the social and environmental problems. The study shows that responsible business should have improvement in the marketing, employee satisfaction, and key partnership, perception of the brand, employee recruitment, customer loyalty and legal treatment. First, the study shows that the company involvement in the community work increases the morale of employee by 50%, 41% loyalty, 12% productivity, and recruitment 29% and 41% retention (David 2011). Second, people expect the business to improve the business practices and that it will finance them. Around 88% of the users think that firms should try to improve the society and environment and 83% supports on financial donations to the charities and nonprofits (David 2011). Third, moral imperative; success of the business whether an existing or new, it will depend on the ability to contribute well to the society. Lastly, evolvement of the community and capitalism; public policy, financial professional, and accounting standards will likely to pull away if the company does not involve in the social work (Hill and Hill 2012). Therefore, the firm which moves is a faster rate to shift to changing system, the more successful the company. Ikea Company has a good relationship with the customers. There are training and development of the employee aiming the management role. The workforce is crucial in day to day running of the company so as to enhance the designing of the enterprise’s products. Apart from that, the company contributes to the social initiatives so as to help the needy children. Company offers a lot the services to the customers including the free assembly and delivery, giving a discount and offers to as to create the client's loyalty.

Organizational Environment and SWOT Analysis of Marks and Spencer

A business model shows how the firms can make profits by changing the creativity and innovation idea into money.  Components of the business model include manufacturer, value proposition, a channel of the distribution, customer relationship, target market, core competency, key partners, revenues streams and cost structures (Zott et al. 2011, p.1020). For instance, the Ikea business customers target is large mass and who can assess the product at an affordable price. IKEA customer relationships include offering the specialist discounts and loyalty and also an assembly of the product at a free cost. Customers segment of the Ikea business includes cost-conscious customers, college students, and small business (Mangan et al. 2016). Cost structures include the expenses to incur in the provision of the products or services. IKEA key resources include the furniture, trucks, megastores, skilled labor, equipment, tools and lifts.

The key partners represent the agreement between the firms with other companies to market and produce the product.  IKEA key partners comprise the transport and trucking companies, delivery and outfitting businesses and finally the word makers. The value proposition is the perceived solutions of the product to the need and wants of the users (Amit and Zott 2012, p.41). IKEA value proposition is to provide affordable furniture, easy transport and assemble. Additionally, the company has important experience in the welfare of the children and the whole family. The key activities of the Ikea are to design, produce, and market and advertise the producers. The main channel of distribution of the Ikea is superstores, catalogs, Ikea family subscription, and websites. The cost structure is the expense the company incurs in the production of the goods. For instance, IKEA   cost structure includes; transport, raw materials, advertisement, manufacturing and labor cost. Revenue streams are the methods and way the company makes its profits. For instance, Ikea revenue streams comprise furniture’s sales, accessories, services fees such as delivery and assembly and the food sales at a restaurant (Mangan et al. 2016). For the efficient business operation to be successful, the all business model activities should correlate.

Cost drivers: altering of the economies of firms occurs due to the customers need, and opportunities standardization and scale globalization. Rapid changing in technology, high product development, global scope and scales economies and sourcing efficiencies is a significant determinant of the global strategy. Therefore, the economies of the scale on the already existing market, the more it is hard for the new entrant in the developing an effective and efficient competitive advantage (Dunning 2014). Thus, there is competition in the market among the regions and interdependent national.

Market drivers: irrespective of the social setting or geographical location customer can get the goods and services at any time. Consumer’s lifestyles and desires are converging as a result of the corporate brand promotions and international marketing campaigns (Wild et al. 2014). The market driver includes the global market channel, global market, familiar customer needs and transferable marketing.

Competitive driver: it includes the cross-border foreign direct investment, global competitors and interdependencies among the nationals (Cavusgil et al. 2014). For instance, the NIVEA which is a German beauty product is driving its business in a global direction. Nivea creates the global brands, global demands and globally supply chain which is necessary for meeting the consumer’s needs.

Conclusion

Organizations responsibility can include healthy and safety of the staff, contractors, and populations in the area of the business operation. The actions of the leaders will affect the behaviors and attitudes which will set the organization safety culture. The divers of the globalizations affect both countries and industrial sectors in a different way. The leading trading nation is openness and positive towards the state of globalization. Competition ensures every nation adheres to safety and improvement of the standard of living. 

References

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Brown, S., Bessant, J.R. and Lamming, R., 2013. Strategic operations management. Routledge.

Cavusgil, S.T., Knight, G., Riesenberger, J.R., Rammal, H.G. and Rose, E.L., 2014. International business. Pearson Australia.

Craig, T. and Campbell, D., 2012. Organisations and the business environment. Routledge.

Crane, A. and Matten, D., 2016. Business ethics: Managing corporate citizenship and sustainability in the age of globalization. Oxford University Press.

David, F.R., 2011. Strategic management: Concepts and cases. Peaeson/Prentice Hall.

Dunning, J.H., 2014. The Globalization of Business (Routledge Revivals): The Challenge of the 1990s. Routledge.

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Mangan, J., Lalwani, C. and Lalwani, C.L., 2016. Global logistics and supply chain management. John Wiley & Sons.

Piercy, N., 2014. Marketing Organisation (RLE Marketing) (Vol. 20). Routledge.

Sheth, J.N. and Sisodia, R.S., 2015. Does marketing need reform?: Fresh perspectives on the future. Routledge.

Wild, J., Wild, K.L. and Han, J.C., 2014. International business. Pearson Education Limited.

Zott, C., Amit, R. and Massa, L., 2011. The business model: recent developments and future research. Journal of management, 37(4), pp.1019-1042.