Key Objectives of an Organization Essay

Task 1A. Identify the mission, values and key objectives of an organization of your choice and assess the influence of stakeholders The Body Shop is a public limited company they mainly specialize in beauty products, however they are very much different compared to regular make up brands such as DIOR, SHU UMERA and so on, they are different in a way that they use natural products and they are against animal cruelty. They use plants resources wisely. The body shop is different because of their values. Ms Dame Anita roddick, was a human rights activist and the founder of the body shop. AGAINST ANIMAL TESTING Every one of the body shops products is animal cruelty free and vegetarian. they were the first international cosmetics brand to be recognized under the Humane Cosmetics Standard for our Against Animal Testing policy. FOR TRADING FAIRLY They believe in fair trade to such an extent, that over 20 years ago we set up our own fair trade programme, called Community Trade. Body Shop believe this level of commitment to trading fairly is unique in the cosmetics industry. Community Trade now works with over 30 suppliers in more than 20 countries, providing over 25,000 people across the globe with essential income to build their futures. Most of our products contain Community Trade ingredients. OUR FIVE CORE VALUES The Body Shop is a leader in promoting greater corporate transparency, and we have been a force for positive social and environmental change through our campaigns around our five core Values: Support Community Trade, Defend Human Rights, Against Animal Testing, Activate Self-Esteem, Protect Our Planet. OUR CHARITABLE FOUNDATION We also have our own charity, The Body Shop Foundation. Launched in 1990 (registered charity no. 802757) we give financial support to pioneering, frontline organisations that otherwise have little hope of conventional funding. The Foundation’s focus is to assist those working to achieve progress in the areas of human and civil rights, environmental and animal protection. Let us move on to the various stakeholders in the organization. Primary Stakeholders Usually internal stakeholders like stockholders, customers, suppliers, creditors, and employees. Secondary Stakeholders Usually external stakeholders like general public, communities, activist groups, business support groups, and the media. The influence of various stakeholders on the organization establishes a balance of priorities on the organization. Some examples of balances that various stakeholders bring to the organization are: Stockholders: The stockholders of the organization ensure that the organization is constantly looking for new means to improve operating net profits. The stockholders of the companies keep a keen eye on the performance of the organization through the quarterly reports of the organizations submitted to respective regulatory bodies in the world. This ensures that the organization keeps a fine balance between working for short-term profits while keeping a firm eye on the long-term business possibilities that may emerge. Positive performance by a company over a long  period of time is rewarded through improved prices. Customers: The most important to any business, customers of an organization keep the organization on their toes to offer best of services in comparison with the market. The organizations strive hard to meet the ever-growing customer expectations in terms of improved products and services and reduced cost for these improved services year on year. Improved performance of the organization to meet customer demands is rewarded through more business orders. Employees: The employees of the organization are the assets of the organization that keeps the organization nimble and agile to meet the customer expectations resulting in profits that meet the stockholders expectations. The employees are rewarded through promotions and merit increments based on their contributions to meet the organizations goals, vision and objectives. Task 2 Evaluate the extent to which the organization achieves the objectives of three stakeholders. As mentioned above there are two different types of stakeholders, there is primary and there is secondary. Primary stakeholders include Internal stakeholders like stockholders, customers, suppliers, creditors, and employees. Secondary includes External stakeholders like general public, communities, activist groups, business support groups, and the media. Beginning with the internal stakeholders also known as primary stakeholders, the employees obviously work towards the goals and objectives that are set,  however in the body shop they are in for it in a different way as the people are passionate. They’re a customer-focused business that strives to create a fantastic experience for everyone who shops and works at The Body Shop. Aside from employees and customers they are also dedicated to their suppliers and creditors as well as stockholders. The body shop is dedicated to the planet and the people in simple words. The body shop is financial stable meeting their financial objectives as well as meeting the stock holders objectives which is keeping on-going improvements and new objectives which is what the body shop is already doing. Achievement of Customer Objectives: The organization is always talking about the natural way of beauty. In addition, the company also shares very positive information of the number of accounts where they have grown the relationships to multimillion dollar revenue generating business accounts through good performance in existing contracts and offering greater value to the customer though their foresight and operations management. This has resulted in good customer retention and repeats businesses for the company across various lines of businesses. Achievement of Employees objectives: Body shop has a large workforce employs over 100,000 employees across the globe and has become an employer of choice. This has provided many opportunities to the employees to grow professionally and vertically as well. Additionally, the body shop provides merit increments every year based on the performance of the employees, which keeps them engaged in their roles and glued on to the target objectives. Task 3. Explain the responsibilities of the organization and strategies employed to meet them. The body shop not only has responsibilities that they must keep to the company and their customers but also the environment, which is why they do the natural way. Nature is the key objective and responsibility to the Body Shop. Their responsibilities towards the environment can be seen on their website, the body shop focuses on cruelty free make up. More  responsibilities and strategies are shown below AGAINST ANIMAL TESTING Every one of the body shops products is animal cruelty free and vegetarian. they were the first international cosmetics brand to be recognized under the Humane Cosmetics Standard for our Against Animal Testing policy. FOR TRADING FAIRLY They believe in fair trade to such an extent, that over 20 years ago we set up our own fair trade programme, called Community Trade. Body Shop believe this level of commitment to trading fairly is unique in the cosmetics industry. Community Trade now works with over 30 suppliers in more than 20 countries, providing over 25,000 people across the globe with essential income to build their futures. Most of our products contain Community Trade ingredients. OUR FIVE CORE VALUES The Body Shop is a leader in promoting greater corporate transparency, and we have been a force for positive social and environmental change through our campaigns around our five core Values: Support Community Trade, Defend Human Rights, Against Animal Testing, Activate Self-Esteem, Protect Our Planet. OUR CHARITABLE FOUNDATION We also have our own charity, The Body Shop Foundation. Launched in 1990 (registered charity no. 802757) we give financial support to pioneering, frontline organisations that otherwise have little hope of conventional funding. The Foundation’s focus is to assist those working to achieve  progress in the areas of human and civil rights, environmental and animal protection. These are their values as well as responsibilities. The employees of Body shop and the suppliers all use environmental friendly products and packaging to support the living earth. Task 4. Explain how economic systems attempt to allocate and make effective use of resources Resource allocation is used to assign the available resources in an economic way across the economy. This may be done at a regional level, Social strata based or on priority basis. Resource allocation can be studies under two broad heads This includes majority of resources that is used in today’s economy except some specific natural resources that are allocated to ensure an Oligopolistic or Monopolistic market. The economic systems attempt to distribute the available resources in an even manner through the price elasticity model. The price elasticity model proposes that demand and supply in the market will drive the cost of the resource. This is typically seen as below |High Demand – low Supply |High Prices | |Low Demand – High Supply |Low Prices | In the above cases, both demand and supply are relative to each others volumes. In a competitive market scenario, the requirement of products and services and its availability guides the prices of these resources. Given that Money by itself is a limited resource available to market forces, high prices of resources ensure optimized consumption of high priced resources. Once the resource prices are above the price of an alternative resource, market forces will start using the alternate resource as a main resource until such time that the prices of the original resource is again affordable  due to slowdown of demand. This is typically seen in the oil and gas business wherein some manufacturing organizations shift to alternative fuels like BP oil and residue oil in lieu of diesel fuel price rise. This model ensures that resources are optimally used by the economy and any steep increase in consumption is controlled through increased prices resulting in optimized allocation and effective use. allocation of some natural resources may not always take the same route as marketed resources. This is typically done by the government’s authorities to ensure lower prices of producers that reaches the consumers at large and to ensure availability of certain products to all and sundry of the population. Some very good examples of such resources are Irrigation Water supplied at subsidy to farmers, Coal allocation to Thermal power stations to ensure low electricity prices for consumers etc An economic system is consist of the several processes of organizing and motivating labour, manufacturing, allocating, and circulating of the results of human labour, including goods and services, consumer products, machineries, equipment’s, and other technology used as inputs to future manufacturing and the infrastructure within and through which manufacturing, circulation, and distribution occurs. There are three types of economic system which are generally accepted by the different nations. They are: Free market, centrally planned, mixed market. 1. Free market economic system: The interference of government is reserved at a lowest point or mistreated in open market system and all the finances assets comes under the private sectors as well market. Price mechanism will decide the amount of goods or services to be provided with respect to the market demands. The majority judgments are on the basis of market mechanism. The supply, demand and capability play the very important function in market  judgment making. According to observing at the open market operations it lifts a variety of unexplained questions like who will generate the goods and services and infrastructures for the country to congregate the requirements of the public. 2. Centrally planned economy system: Centrally planned economic system explains that government assigns the financial possessions; government initiates all the arrangement concerning the financial actions. Private sectors are held in reserve in distant in participation of any monetary gathering. These types of finances were establish in the Asian, central Europe, Eastern Europe and Latin American nations but now a days these are set up in Cuba, Iraq, Iran, North Korea etc. In this structure fundamentally joblessness troubles will not be tackled because government organize all the monetary performances and possessions will be owed on the basis of requirements of its persons and dissimilar industries contribution. 3. Mixed economy system: This structure is a combination of all other structures. The organism where together capitalism and socialism monetary schemes are involved it is called as the mixed financial system. In this globalizing world largely the countries are acquiring this financial system. Mixed financial system divides the obtainable financial possessions accessible in the country to mutually private sectors and government. Task 5. Discuss the impact of social welfare and industrial policy initiatives on organizations and the wider community. The social welfare and industrial policy of a nation impacts not only the economy but also the larger community. |Social Welfare Policy |Health Policy | | |Housing Policy | | |Income maintenance Policy | | |Education Policy | | |Social Security | |Industrial Policy |Inflation control | | |Financial Market stability | | |Manufacturing boost for increase in employment rate | Health policy can be described as the â€Å"judgment, plans, and measures that are commenced to attain specific health care goals within a society.† There are many groupings of health guidelines, involving personal health care policy, pharmaceutical policy, and policies regarding health of public such as vaccination policy, tobacco control policy or breastfeeding promotion policy. They may envelop monetary subjects and liberation of health care, access to care, quality of care, and health equity. The contemporary theory of health care includes right of entry to medical professionals from different sections as well as medical technology, such as medications and surgical tools. It also includes easy access to the newest data and confirmation from research, comprising medical research and health services research. Public housing is a type of housing tenure in which the possession is hold by a government authority, which may be central or local. Social housing refers to leasing housing which may be possessed and controlled by the state, by non-profit firms, or by a mixture of the two, generally with the aspire of offering housing which could affordable. Education policy can be defined as the compilation of laws and regulations which manages and directs the functions of education systems. Education takes place in a lot of type for countless functions through several organizations. An example involves early childhood education, kindergarten from side to side to 12th grade, two and four year colleges or universities, graduate and professional education, adult education and job training. Consequently, education policy can straightly influence the educated persons involved of all ages. Income maintenance Policy is habitually functional due to several curriculums formulated to offer a residential with income at times when they are not able to take care of themselves. Income preservation is on the basis of a mixture of five major kinds of program: 1. Social insurance: 2. Means-tested benefits: 3. Non-contributory benefits:. 4. Discretionary benefits. 5. Universal or categorical benefits Social security a social insurance program given that social security or protection against socially renowned circumstances, involving scarcity, old age, disability, joblessness and others. Social security relates to a bunch of advantages obtainable (or not available) from the state, market, civil society and households, or through a grouping of these organizations, to the person/family to trim down multi-dimensional deprivation. The Industrial Policy plan of a country, from time to time condensed IP, is its official planned attempt to support the expansion and progress of the producing sector of the economy. A country’s infrastructure (transportation,  telecommunications and energy industry) is a main element of the industrialized sector that frequently has a main role in the Industrial Policy. Industrial strategies are division definite, unlike broader macroeconomic strategy. They are occasionally label as interventionist as conflicting to laissez-faire finances. Several kinds of industrial strategies comprise ordinary fundamentals with other kinds of interventionist exercises such as trade policy and fiscal policy. An example of a distinctive industrial policy is import-substitution-industrialization (ISI), where trade barriers are provisionally obligatory on a number of key sectors, such as manufacturing. By selectively securing some business, these business are provided moment in time to study (learning by doing) and improve. Task 6. Evaluate the impact of macro economic policy measures and the influence of the global economy on UK-based organizations and stakeholders. Macroeconomic policy instruments define the macroeconomic measures that can be straight away managed by an economic policy former. Instruments can be divided into two subsets: a) Monetary policy instruments and b) Fiscal policy instruments. Monetary policy is carried out by the Federal Reserve or the central bank of a country or supranational region. Fiscal policy is formulated by the Executive and Legislative Branches of the Government and contracts with supervising a nation’s Budget. 1) Monetary policy Monetary policy instruments comprise of directing short-term rates (Fed Funds and Discount rates in the U.S.), and altering reserve necessities for commercial banks. Monetary policy can be moreover extensive for the market (short-term rates low relative to inflation rate) or restraining for the  market (short-term rates high relative to inflation rate). Traditionally, the main purpose of monetary policy had been to direct or restrain domestic inflation. In recent times, central bankers have frequently paying attention on a second objective: running economic growth as both inflation and economic growth are highly interconnected. 2) Fiscal policy Fiscal policy comprises in supervision the national Budget and its investment so as to manipulate economic activity. This necessitates the growth or development of government expenses regarding particular government curriculum such as building roads or infrastructure, military expenditures and social welfare programs. It also involves the elevating of taxes to finance government expenses and the increase of debt (Treasuries in the U.S.) to meet both the ends (Budget deficit) between receipts (tax receipts) and expenses regarding the execution of government curriculum. Increasing taxes and lowering the Budget Deficit is considered to be a preventive fiscal policy, as it would decrease cumulative demand and slow down GDP growth. Reducing taxes and raising the Budget Deficit is measured as an outgoing fiscal policy that would enlarge collective demand and encourage the economy. The impact of macroeconomic policy measures On enlargement, there likely to be periods of strength follow by phase of weak or even negative growth (recessions), particularly known as the economic cycle. All governments have an objective of eradicating this cycle. They desire repeated, sensible expansion that never ignites price increments. Fresh governments have stimulated closer to this ‘Goldilocks’ scenario. Become aware of that the growth rate has been over 2% without receiving out of hand for six years. Subsequent the bust/boom/bust of the early 80s/late 80s/early 90s, this is quite an accomplishment. Inflation has also been extraordinarily submissive by historical standards.  Subsequent the horribly inflationary 70s (peaked at 25%) and the near 10% figure ten years ago, RPIX has been growing at 3% pa or less for six years. The objective of full employment has efficiently been relegated to the history books. Unemployment reached one million in the 80s for the first time since the 30s, and then continued to reach 3 million (or 4 million, depending on the definition) within three years. Having said that, ‘full employment’ does not mean that everyone has a job. It is a depressing reality of economic life that UK customers favor imported goods to those made in Britain. The degree of the current account deficit mainly depends, consequently, on how well we export our services. Unfortunately, services are not quite as exportable as goods, so the UK is constantly fighting a losing battle. Optimistically the modifications in technology, and our capability to utilize them, will permit us to enlarge our exports of services by sufficient in the future to permit for the deficit in goods. Some economists consider that there is no problem, since in a world of completely mobile capital; the UK no longer depends completely on their own pool of foreign reserves to compensate for its importation. These days, if you want something from overseas but you do not have the foreign currency, then immediately purchase it on the Foreign Exchange Markets. Due to the global characteristics of financial markets, the financial services industry is deeply prejudiced by worldwide monetary improvement. These financial connections to international markets are just one of the numerous conducts in which wider worldwide expansion influence the UK economy. Global economic developments For instance the current commotion in financial markets – also have a significant manner on the resolution of the Monetary Policy Committee (MPC). Similar to the UK, in an open economy worldwide forces can affect the prices to rise and vary about its aim or goal temporarily, and also insert  instability into the real economy. We have observed growing oil and product costs determined by tough universal demand push up price rises in the UK and further main economies over the earlier period and couple of years. By distinction the fresh modifications and alterations in international financial market circumstances could decline demand situations in the UK and globally put forth descending pressure on price rises. These are all aspects we require to take into consideration in our attention rate judgment. Ultimately it is domestic monetary policy Not the state of the international economy, which will conclude the UK inflation rate. The challenge for the MPC consequently is to regulate interest rates to make sure that worldwide pressure does not generate lengthened and important divergence in price rises from its aim. Global economy affects UK inflation There are a broad diversity of conducts in which international economic expansion influence the UK economy and therefore manipulate our rate of price rises. The entire procedure of globalization has structural influence on the UK economy, comprising the influence on labor relocation. The prices of trade in goods and services are the first one has an impact. Imports account for approximately 30% of the value of goods and services directly and indirectly sold by UK business at residence and overseas. On the other hand, the prices of trade in manufactured merchandise will also reproduce the resources and power utilized in their produce, forming a supplementary indirect influence from product markets. The second channel of impact from the international economy is through demand. Tough expansion of demand, whether it derives at residence or overseas, permits the profit margins to develop and is pushed at an upward pressure on expenses, mainly when the economy is operating close to its capacity limits. By the similar token, weak demand exercises a dampening  impact on cost and price augmentation. Manipulating demand situations with the help of interest rates is one of the major means due to which the Monetary Policy Committee controls UK price rises. International economic expansion influence demand circumstances in the UK both directly and indirectly. The direct influence comes in the course of alteration in the demand for UK exports of goods and services, which make up approximately a quarter of the production of UK businesses on average. The significance of abroad demand diverges significantly among diverse sectors of the UK economy. Some manufacturing sectors sell a huge percentage of their production abroad, and for manufacturing industry as a total exports are approximately half the worth of production. In calculation to this export channel, there are also indirect financial connections in the course of which international economic circumstances can affect UK demand. The UK business society is extremely intercontinental, depicting our custom as a trading nation and the honesty and friendliness of our financial markets to abroad investment. A lot of UK businesses are branch of bigger worldwide groupings, which is probable to strengthen the compassion of their investment and other trade judgments to worldwide demand and profitability. In accumulation to these price and demand factors, there is a third method in which worldwide economic situations might also influence UK price rises, which is in the course of their influence on the pricing conditions. As businesses turn out to be further skilled and global in edge, some economists have disagreed that international circumstances have turn out to be more and more significant in influencing pricing actions, relation to domestic issues. As per this vision, the worldwide equilibrium of demand and supply and spirited forces on international markets may appear to have an important influence on cost in economies which are release to global business, such as the UK. The role of monetary policy In a world in which worldwide progress has a significant manner on UK price rises, monetary course of action should react in subsequent way. One ending you might illustrate from my conversation so far is that UK price rises will be deeply subjective by international upgrading. And however, in spite of the modifications we have observed in the worldwide market more than the decade, UK price rises has been low down and extraordinarily steady. Three major traditions in which financial guidelines can act as a factor to manipulate the price rises when the UK economy is batter by worldwide shocks. The first of these is the affect the interest rates on the exchange rate. The exchange rate is not straightly managed by financial policy. But financial policy has a significant impact. The interest rate discrepancy among diverse currency and the aspects, which are anticipated to manipulate its influence in currency markets due to their influence on the possible income to investors. If financial policy is constrict comparative to other countries, or is estimated to be constrict, this will be likely to push up the exchange rate in the next to time. Such an increase in the exchange rate should have a dampening influence on import cost augmentations, and can consequently answer an increase in worldwide price rises pressures. It also affects how eye-catching abroad markets are to exporters and consequently has a supplementary influence through the state of demand. The second way in which financial policy can contradict worldwide monetary forces is due to its influence on domestic demand expenditure by customers and investment by the private sector, both of which are exaggerated by interest rate alteration. Customer expenditure is the biggest single constituent of demand in the UK, and accounts for concerning 60% of domestic expenditure. A contraction in policy such as we have observed over the past year should have an important influence on the expansion of utilization, and therefore domestic demand. A third steady aspect is the reliability of financial policy and its  influence on cost prospect. If price raises prospect stay fast at or shut to the price rises goal, turbulence to the price rises pathway should demonstrate momentary, and it will be simpler for financial policy to be carried out a provisional shift in price rises. The duty of the MPC is now made simple by the practice of a decade and a half of low and steady price rises, which has assisted to fasten UK, price rises prospects. The impact and pass-through of the identified unconventional policy shocks should help to learn more about the extraordinary policy measures taken by central banks as a response to the financial turmoil. Some caution is, however, required. A caveat of the analysis is that the estimations are based on a sample period that covers the turbulent period on financial markets, as well as normal times. An implicit assumption is hence that the parameters did not change dramatically as a consequence of the crisis. In addition, the analysis only captures unconventional monetary policy to the extent that the measures influence the banking sector. Hence, a useful extension would be to also include direct lending of central banks in private markets in the analysis.