Environmental Analysis for Ecostore - Case Study Example

Executive Summary The paper evaluates the different core areas where Ecostore has focused on in the past and different areas it need to focus to improve the performance. The success of the business was due to the organizational culture which was prevalent in the organization. This along with human resource policy, superior training, international business, technology penetration and working towards greener products has helped to grow and improve the business. This along with consistent human resource policy, increased use of technology and aiming different international markets through which business potential would improve will help the business to grow. The business as a result would be better placed and would help to improve the overall working culture. Table of Contents Introduction 3 Background Information 3 Role of organizational behaviour 4 Human Resource Management Practise 5 Role of International Business 6 Role of Technology 7 Entrepreneurship & Innovation 8 Future Strategies 9 Conclusion 11 References 12 Introduction This report looks at carrying out an environmental analysis for Ecostore by analysing different aspects and parameters like company structure, leadership style, major stakeholders, management strategies in relation to Innovation, entrepreneurship and sustainability. This will help to understand the manner in which environment is impacting the business of Ecostore and the different steps which have been undertaken by the organization. The working of the organization will be limited to Australia as Ecostore performs in the global arena but the focus for the report will be Australia. Since, Ecostore holds an important part in the Australian economy and contributes towards the economic growth so it is important that proper identification of the different areas which influences the working style is looked at. The report will address four important aspect which includes the role organizational behaviour plays in Ecostore; the human resource practices which is being used in the organization; the role international business is playing in the growth of Ecostore; and the role technology has played in shaping their business. This will be followed by looking into the history of Ecostore and the motive which resulted in the creation of the business. Along with it the innovation which Ecostore has been able to bring in its business will also be analyzed and the manner in which it is contributing towards the growth will be identified. This will help to understand the manner in which future strategies will be determined and will thereby help to shape the manner in which different activities are carried out. The overall report will thereby help to understand the impact external environment is having and the manner in which it is being dealt. Background Information Ecostore is a New Zealand based organization which deals in household and body care products. The organization has looked towards working in the global arena and has thereby started working in other countries like Australia. The company works in both the wholesale and retail distribution system. Some of the products which Ecostore deals belong to kitchen use, laundry purpose, bathroom purpose, cleaning purpose and baby purpose. Presently the organization manufacturers over 100 products and all the products are safe under the environmental and sustainability standards. The industry where Ecostore works is highly concentrated and has to deal with a very high degree of competition. This has made it difficult for the players to continue to sustain a large market share and requires continuous innovation to be able to grow and improve its business. Role of organizational behaviour The success of Ecostore is largely dependent on the manner in which the organizational culture has been developed. The focus of the business is towards developing and identifying the parameters which will help to develop a congenial environment. This has been supported by the organizational structure which the organization looks to use. The business has a flat organizational structure along with a hierarchical organizational structure (Jerez-Gome & Cespedes-Lorente, et al. 2005). This has helped to ensure that the decision making process is quick and has provided an opportunity through which they are able to need to meet the different needs of the business Ecostore has given special relevance towards developing an organizational culture which matches with the different business needs and requirements. Ecostore has looked at having local people and look at creating a team through which the employees will be induced towards contributing towards the goal (Soparnot, 2011). The business has been developed on different fundamentals but the overall process looks at meeting the different business needs. The success of Ecostore can be further gauged from the manner in which the organizational culture has evolved. The organization has identified the manner in which they need to use their organizational culture for their strength. This has thereby developed a strong organizational structure which suits the needs of the organization. The overall phenomenon has shaped the working culture as giving importance to it has transformed the working arena (Sevari & Kandu, 2011). The overall business as a result has grown and is able to feel the manner in which the different factors have contributed towards the success. Since the organization has identified the different code of conduct which every employees need to adhere it has shaped the behaviour of the organization in a positive direction. It has helped Ecostore to bring the required change and transformation through which operational effectiveness has multiplied. Human Resource Management Practise Ecostore has given special consideration to the workforce as the business is developed on the fundamental that meeting the different expectations of the customers will increase the chances to be successful. This has thereby forced Ecostore to look at hiring the best people from the industry (Ahmad & Schroeder, 2009). Ecostore looks at having right people for the right job. The business focuses on hiring talented people who are capable of carrying out the job which is entrusted to them. The human resource department lays stress on recruiting the correct talent and looks at retaining the same so that the business is developed on the correct parameters. The practice which is seen is Ecostore looks at developing employees. The organization continuously looks at training the employees so that they can carry out their roles and responsibilities in the most effective manner. The process of providing training depends on the individual as the business focuses on ensuring that every employee is capable of carrying out the different roles. Ecostore also looks at ensuring that the employees are continuously motivated to carry out the different roles and responsibilities. This has helped Ecostore to ensure that the employees are better committed and carry out their roles effectively. The human resource policy further has been developed based on the code of conduct which the organization looks to achieve. This has ensured that people hired goes through the process which will determine the selection of the best candidate. This has been matched by the high compensation which the organization looks to pay to its employees. The overall manner in which the human resource policies are managed has helped to develop a congenial environment where people look to work together for a common goal/. Role of International Business Working in the global culture has helped Ecostore to transform their business as it has helped them to work on the different parameters through which operational effectiveness can be ascertained. Working on the global arena has increased the risk for Ecostore as currency valuation could result in loss but the organization has looked at adopting techniques like hedging which has helped to control the risk. International business has actually helped Ecostore as it has ensured that they are able to cater to a large audience. This has thereby increased the number of customers to which Ecostore caters and has helped them to increase their market share. Working on the international arena has transformed the overall business as new avenues through new markets, new customers and suppliers have increased. This has helped Ecostore to look for alternatives where they can use the resources of a place to their competitive advantage. International business has multiplied the opportunity of using the different markets to their gains. It has enabled the business to look at avenues where better products can be manufactured at a lower cost. The business model and working in the international arena has also helped Ecostore to look at different dimensions through which productivity can be increased. Ecostore through the use of international trade has been able to improve their presence in the market as technology has played its part here and has ensured that the business grows. Working in the international market has reduced the risk as if a particular economy is in depression the same in compensated through other economy which has thereby ensured that the overall business is carried out without any difficulties and has thereby helped the business to grow in different directions. Role of Technology Technology has helped Ecostore to bring the required transformation in the manner different activities are carried out. The use of technology is to the highest extent. The use of different technology like JIT and stock management system has helped the organization. Ecostore through the use of internet has ensured that they get a global presence as every customer can reach the company and get the required information and products through the website (Tharp & Scott, 2012). This has helped Ecostore to ensure that the reach and penetration level improves. The use of different technology like JIT has ensured proper management of inventories as the business has ensured that the products which are provided to the customers suits their different needs and requirements. The integration of technology can be seen from the fact that Ecostore through the process has ensured proper inventory management techniques. As a result the different organizations associated with the business are able to identify the different business needs and plan accordingly. This has helped Ecostore to grow its business as people are better satisfied. The use of technology is also seen in different directions. Technology has ensured that the business is better promoted using different mediums and tools. This has helped to transform the business and integrated the business to such an extent that the overall mechanism is better controlled. Technology has helped Ecostore to get a global presence. Even without having its stores all around the globe the business has got an international presence as people can easily visit their website and get the required information. In addition to it people can select the different products they want and the product is shipped to them (Tulloch & Lupton, 2002). Technology has thereby integrated the business for Ecostore and has provided them an opportunity through which they are able to serve to the needs of a large audience. Entrepreneurship & Innovation Ecostore is a New Zealand based organization which deals in household and body care products. The organization has looked towards working in the global arena and has thereby started working in other countries like Australia. The company works in both the wholesale and retail distribution system. Some of the products which Ecostore deals belong to kitchen use, laundry purpose, bathroom purpose, cleaning purpose and baby purpose. Presently the organization manufacturers over 100 products and all the products are safe under the environmental and sustainability standards. The products developed and sold are manufactured in such a manner that it helps the user to deal with different disease like eczema or allergy symptoms. This has become possible due to the fact that the products are of the finest quality and matches the different standards which have been laid down by different bodies. The business was started by Malcolm and Melanie Rands in 1993 from a eco village in New Zealand. The factor which guided them to open a new business like Ecostore was to create a healthier and sustainable world so that people are able to find products which will help consumers in their daily life. This is achieved to a large degree through Ecostore as the products look at healthier and green up products for consumers. Ecostore has achieved their objective to a large extent and ensured the innovation which has guided the business is pursued even today. The organization to ensure consistent raw materials has looked at organic gardeners which has become possible due to innovation being carried out in the field. This has helped Ecostore to build a brand that they are genuine and eco friendly thereby helping to cater to a larger community (Jay & Alec, 2012). Being innovative and looking at new alternatives through development of technology and international business has helped them to bring the required transformation in the business. This has guided the business and has created the required avenues through which the business has been able to ensure better customer satisfaction. The motivation based on which the business was developed has thereby been achieved through the process and has helped the business to be grown on different arenas. Future Strategies Ecostore for the long term success of the business has to look at formulating strategies through which they are able to ensure better customer satisfaction. The organization can look forward towards the following mechanism Firstly, Ecostore has to look at increasing their reach and penetrate other markets which are untouched. The international business for Ecostore has grown over the years and it is imperative that Ecostore looks it as an opportunity through which they will be able to cater to a larger community. They need to develop their international business to such an extent that they are able to attract more people towards the greener products. Ecostore has wide opportunities in Asian markets as the demand for greener products which are healthier is growing (Pettigrew, Woodman & Cameron, 2001). This provides an opportunity where Ecostore can look to aim at in the near future. The same has to be integrated with the use of technology by ensuring that people all around the globe can purchase the products through their website. Having specialized website based on region and language will provide additional benefit and would help Ecostore to improve their international business and ensure that a wider market is catered at. Secondly, Ecostore has to look at increased use of technology to bring the required changes in the products and other marketing strategies. Technology can be used further to develop their products so that wastage of resources can be reduced and customers can be provided with better products (Tanner & Kast, 2003). The use of technology should also be grown in the field of marketing, operations and finance. This will help Ecostore to develop their business in all direction and would help to bring the required transformation thereby improving the overall prospect for a long term business. Thirdly, Ecostore has to ensure that they are consistent with the human resource policies. The organization should look at hiring local talent so that they can understand the customers, the culture and develop the required relation through which business would grow (Cable & Judge, 2006). The process has to be matched by increased training and development of the employees so that they understand the product better and are able to make customers understand the same. The process should be consistent and based on individual needs. This will help to improve the workforce and would provide an opportunity through which the overall business potential would develop. Thus, Ecostore needs to look at working in different directions so that the overall business is better shaped and the different needs of the customers are better satisfied. Conclusion The paper thereby brought forward the manner in which Ecostore has worked in different directions and the future areas where they need to look at. It is seen that the success of the business is largely due to the organizational culture which is prevalent from the organization working style. This has been helped by sound human resource policy which looks at quality employees. The organization provides continuous training for better customer satisfaction. The international business has also grown to a large extent as technology penetration has increased. The business which was developed with the motive of producing greener products to the community has been achieved to a large extent and can be further improved by having consistent human resource policy, increased use of technology and aiming different international markets through which business potential would improve. This will help the business to be developed on different areas and would help to improve effectiveness and reduce wastage. The business as a result would be better placed and would help to improve the overall working culture. References Ahmad, S., & Schroeder, R. 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