One way of considering the impact of businesses upon society is to view all of the groups affected by the behavior of a business as stakeholders. The stakeholders in a business are likely to include customers, employees, shareholders, suppliers, government, and local communities. Businesses have tended to be influenced mainly by customers, employees and shareholders. Increasingly, however, other groups are affecting business behavior. For example, some businesses will only supply their products to other businesses that have an ethical or environmental policy.
It is suggested that businesses need to have a greater social responsibility to groups beyond those immediately involved in the business. The way in which businesses respond to issues such as health risks from pollution may depend on their ethics. Ethics are the values and beliefs which influence how individuals, groups and societies behave. The ethical behavior of businesses is , to some extent, controlled by laws and regulation. It is possible that a business following an ethical policy may: -attract customers and employees who agree with its policy; have to change its operations to fit in with this policy, for example approving certain suppliers; -have to set a policy for all the business in areas such as recruitment and marketing. There are certain advantages for businesses in behaving in an ethical or socially responsible way. Increasing numbers of consumers are taking into account a firms behavior when buying products. Firms with an ethical approach believe that they will be more able to recruit well qualified and motivated staff. In addition, ethical firms argue that they are able to retain their staff better if they adopt a more caring approach to employees.
The Research paper on Case Study In Organizational Behavior Employee Motivation part 1
Case Study in Organizational Behavior, Employee Motivation (1) Nowadays, it is practically impossible to guarantee commercial institution staying competitive, on the part of those who are responsible for designing employment policies, unless they understand how to motivate workers. Long gone are the times when good salary alone served as the best incentive, when it would come to increasing ...
Firms which behave in an ethical manner believe that their employees are more committed to their success as a result. They may be prepared to work harder to allow the businesses to achieve its aims. Ethical behavior can result in an increase in costs for a firm, An ethical firm may, for example, be forced to turn down cheaper supplies from a firm which act unethical. Firms may be forced to turn down profitable business due to their ethical stance. When a firms overall profitability comes into conflict with its ethical policy, problems may result. Some suppliers will only supply roducts to businesses that meet ethical criteria. Marketing Mix: Product: Primark mainly has fashionable clothing’s, and always moving with the trend. You can describe their products as having style, quality and affordable prices all rolled into one. Place: Primark sells to its customers through tis own shops (from what i know).
Price: Primark uses cost leadership strategy, where they differentiate themselves from their customers on the basis of their very low costs. Primark has super competitive prices. Promotion: Primark im guessing since they aim on having low cost, they would not have any advertisements published.
But the low prices attract customers fast, and customers may spread the word around to others. P. E. S. T factors are always very influential in a companies running and trading. Primark believe they are a very ethical company and do not suffer from bad press about slave labour or ‘sweat shops’ abroad making clothes for very little money, with economic changes recently people are now making more money than ever but prices of basic living are increasing rapidly and Primark do believe they cater for this market of affordable and fashionable clothing.
The Review on Game theory application for lowest price guarantee
The game theory is applicable to a host of issues especially in economics. The theory is applicable where there is a multiplicity of decision makers and each player’s action affects or is affected by what the other party does. To cite a specific example, it is worthy examining how firms make production decisions relating to quality, quantity, pricing, etc. the game theory is equally useful in ...
If you look at the business (Primark) prices, you would notice that the products are very cheap, ask your self why is it so cheap, the answer might be that these products are probably handmade. BBC (part of the community) showed the extremely poor conditions and low rates of pay of workers in Primark supply chains. It found child labour, some of which were in India, producing their clothes, this is considered as a weakness of the company which could be analyzed in the SWOT analysis. The UK legal minimum wage must be paid at 5. 73 pound per hour, the secret footage documents workers being offered 3. 0 pound per hour for their services. In addition to tacky wages, workers faced unsafe and unsanitary working conditions, including a lack of any heating. Primarks response was initially to deny everything and having no knowledge of this and has since taken several steps to combat this issue, and is now to conduct audits and drop contracts with suppliers there. This contradicts their commitments as being ethical to work with suppliers to improve conditions and ensure child workers are given the opportunity to attend schools rather than work and waste their future.
Primark has a clear marketing strategy where it provides their customers with the latest fashion clothes at the lowest prices possible. Primark adopts the strategy where it tries to keep its costs as low as possible. Primakr stakeholders include owners, suppliers, employees, customers, community and the government. Suppliers: Primark tries and effectively cuts costs at all stages of its supply chain. It out sources most of its supplies from oversees countries thus taking advantage of the low labor and land costs.
Primark has more than one suppliers, therefore the cost of switching from one supplier to another is low as there are other suppliers making fairly undifferentiated products. Hence their suppliers are not powerful. Suppliers of Primark such as TNS don’t care about how ethical they should act as long as they are getting paid on time and have someone to supply to, if acting unethical means that they will cut costs (acting illegal) and no one would know, than acting unethical is the best solution for them. The suppliers would like Primark to pay them promptly, and have a long-term supply contracts.
The Essay on Working Class Workers Hours Machines
First of all, the working class evolved in England. This happened mostly because England was the first to use machines for mass production. For instance, with new inventions like the Spinning Jenny machines in England, it caused a revolution to take place in England first. These machines reduced the values of the old tools, the property of the individual craftsmen and replaced the accomplishments ...
The conflict between Primark and its suppliers is that the suppliers lack ethics and this will have an influence on Primark sales. Primark Should work with suppliers to ensure decent working conditions, follow best practice for remediating cases of child labour, and set up monitoring systems to ensure decent working conditions for all workers. Owners: Fashion Waves owner, Zaheer Mahmood, broke the law by paying the BBC reporter 3 pounds an hour. The conflict also arises between Primakrs owners and the Suppliers owners, where they each have different believes on their ethical acts and values.
Each owner aim to have a high profit but Primark should not let the suppliers owners do that by acting unethically. Employees: Employees are not happy with their wages or the conditions they are in, they are not satisfied at all or even motivated to work. They are paid below the minimum wage (price floor) that is set by the law. Government (Political factors): -Primark’s business operations are the aid of government policies and regulation for example providing proper working environment for their workers. -Dealing with workers and improving their working conditions.
Everything done in the suppliers factories is illegal, from wages paid to illegal workers working under expired visa’s. Working in these factories are very dangerous and life threatening; governments can make a move toward this and stop it all if they knew about it. The Federations have made their moves towards these illegal working employees and now Primark at trying to prevent it through auditing. Managers: The store manager has the overall control of a Primark store and is assisted by other subordinates.
Having other subordinates working below the store manager enables delegation which helps contribute to the team communicating, working efficiently and effectively to help achieve Primarks targets. Buyers: Buyers here are individual customers. In the value apparel industry products are undifferentiated and substitutes can be found very easily. Hence Primark cannot charge high prices as firstly their competitive advantage is that they can sell good quality fashionable clothes at very low prices and secondly there are no switching costs for customers.
The Essay on Working Class Ondaatje Patrick Workers
An Individual's Escape From Exploitation Essay, Research An Individual's Escape From Exploitation An Individual's Escape From Exploitation Michael Ondaatje's novel, In the Skin of a Lion, depicts some of the hardships faced by the working class in the early part of the century. It is a seemingly pro-working class novel that portrays exploitation and unfairness by the upper class. The novel, then, ...
Primark responsibility is that they have to look at consumers interest, which would mean that the costs would increase. Customers might hate Primark because they practically enforce slavery, from my point of view i don’t think it ever had a good reputation, but greater number of people shopping there has led to more clothing being made since their goods are cheap, which means more child labour. Customers might also think that this is terrible, because they well feel that they had been betrayed and as a result, they will never shop again at Primark, which means a decrease in the demand.
Its very risky for Primark if they don’t resolve this problem, because there are many other substitutes such as Zara that have similar product at low cost, which means the demand would decrease for Primark if they don’t find a solution to gain the customers trust and loyalty again. Even though there is recession these days which means that people would look for cheap, good quality and fashionable clothing, however they will still mind the ethics of the company, as a result many would refuse to buy from Primark if they knew about the unethical responsibilities they are carrying out.
Community: BBC is part of the community, they contributed toward an investigation to help the consumers to have a close look at what they are buying. The poor conditions in the factories influence the community as a whole were it can change the view of the company and children as well would have a change in mind on what they are dealing with. Solutions (my opinion) Primark’s Profiteering bosses need to pay decent wages and stop exploiting workers by cutting their mega profits rather than pass increased production costs onto cash strapped customers.
