Assignmentin Economics and Management
Assignment1 Part 1
The ethical responsibility of the companies is characterized by the moral behavior governing the companies with respect to their stakeholders. Ethical behavior must include human rights, labor ethics, environmental sustainability and anti-corruption for the company. Human rights and labor ethics includes the compliance of the company for the basic laws governing the moral and ethical codes used in global corporation setting. The main concern of the moral behavior is towards the environmental sustainability. The company takes a vital role in protecting and supporting environmental projects. The anti-corruption is a part of the moral behavior which seeks transparency of the company in their stakeholders.
The major concern of the public consumers on the corporate social and environment responsibility is controlled the major changes and occurrence on the environment which is caused by the company’s operations. In addition, the general public always has a high expectation on the environmental and social sustainability projects of the major companies due to the increase global concerns and attention about the effects of global warming and major pollution. One example of the approach of general public to the ABC Company is that they are responsible for the oil spill in the coast of Belize since they are transporting large vessels. Large pollution is always blamed on large companies due to the high expectation of the general public. In addition, laws governing environmental sustainability suggest legal actions towards the investigation and sustainability reports of the companies for their stakeholders as well as the general public.
The company using obstructionist stance of corporate social responsibility response to public attention uses less effort for their environmental and social impact of their company to the society or an environmental part. Only small quantities of companies use the approach of obstructionist stance since there is an emerging global concern towards social sustainability performance. The example response of the company using obstructionist approach is to do nothing to correct the action of dumping hazardous pollutants to water bodies.
The defensive stance is also an example of corporate social responsibility response which has low priority in their efforts for environmental sustainability. There are no significant efforts to exceed the regulation standards set in the defensive approach. In addition, companies using this approach often comply with the global standards only for the legalization of their business. An example of response using defensive approach is the compliance of the cigar companies for including government warnings in their products.
The accommodative stance of the corporate social responsibility response comprises of higher efforts for corporate social sustainability. In this approach, the companies exceed their objective towards ethical and legal responsibilities for corporate social sustainability. The ABC Company will comply on the demand of the community and the media to investigate their actions towards environmental sustainability in the case of the oil spill when the company uses the accommodative approach. Legal actions suggest that the company should provide outside investigation for the case and the company will take any legal actions. (Wolczek, 2014)
Proactive approach is the best option for the response of corporate social responsibility. The companies using the proactive approach believe that their company is a part of a social community which takes full responsibility towards environment sustainability. The company using this approach always seeks opportunities for environmental sustainability such as supporting charitable organizations and implementing the highest form of sustainability projects. When the ABC Company initially uses this approach, the case would not have been happened or the legal actions should be taken initially without the effort of public attention. (Wolczek, 2014)
Assignment1 Part 2
Pricingstrategy takes many different parameters to consider such as purposeand status of the company. Profit maximization is the main objectiveof the pricing strategy by quantitative analysis using differentmodels such as supply and demand concepts of economics. Forestimating the cost of the operations, the market strategy is devisedand the demand curve is analyzed. One aspects of the differentpricing strategy is the environmental factors such as globalcompetitiveness and environmental regulations and policies. Theobjectives of the pricing strategy is also analyzed which resulted todifferent pricing methods other than the ultimate goal of maximizingthe profit. One example of pricing objectives is to maximize thequantity of the products that is consumed or bought by the consumers.Some of the companies increased their product quantity to decreasetheir fixed cost. For example, companies produced more products tocompensate the low life of the large operation equipment. Anotherreason for maximizing the quantity of products is due to predictionsfor the market value of the products. (Uva, 2001)
Assignment2 Part 1
The Toyota Company focuses their operations for producing quality products as their advantage for competitive market. The operation of the Toyota Company based on the quality approach ensures the quality of their products made using sophisticated technologies such as specialized and unique technologies. When the company changed their focused for global competitiveness from quality to low cost, their operation would have been very different. One example is that the Toyota Company would have built many small facilities to accommodate the increase in demand as well as reducing the maintenance cost and the fixed cost for construction of the operational buildings and warehouses. The low cost of the operations will produce a large quantity of products. They can also decrease the labor cost and other operating cost by having lower inventories and low-cost restocking.
The different approaches of the competing companies have the same objective of collecting more consumers or costumers. The US postal service uses flexibility approach to compete with the global standards of transport agencies. They used innovations for the changing social aspects of the business market which is constantly changing for the convenience of the costumers. Their production of new services is due to the large production capacity. Adaptable processes and facilities helped the company to maintain their global competitiveness. Their approach is also enhanced with much creativity to cope up with the changes with better productivity values as the transitions occur. The FedEx Company uses dependability of their company for the approach for more consumer satisfaction as well as maintaining their spot towards global competitiveness. The FedEx company uses advanced technological aspects for communication for better connection to the costumers. Good publicity of their dependability can also improve their product and service quality.
Assignment2 Part 2
One of the important services that the noncertified public accounts that can provide is the financial statements that the businesses are offering. The information provided by the business management can be used for the auditing of the financial performance of the businesses. The noncertified public accountant can also provide basic knowledge and concepts of the business transactions and implications on the operations of the business. The basic information can help Mary Ann to analyze the financial matters of the business such as their advantages and disadvantages. Another understanding can also be observed since the financial statements can also imply the financial capabilities of the business. (Carpenter, 2008)
In selling a business unit, the balanced sheet must be provided and be analyzed to understand the true objective of the management for selling the business unit. When the liabilities of the business unit are more than the assets, the management is avoiding the financial obligations of these liabilities. In short, the business is losing its profits due to the liabilities. In selling the business unit, the management can avoid loss of revenue as well as surviving the business unit in the hands of another management. (Carpenter, 2008)
In choosing the business unit to buy, the strength and weaknesses of the businesses should be analyzed using the financial statements. In spite of the owner’s negative aim for selling the business, the strength of the asset values must also be considered. For example, the asset which composed of a commodities which the price can be varied in large range. Another advantage that can be seen is when the liabilities have low interest values and the assets have large interest values. (Carpenter, 2008)
Carpenter,R. (2008). AvoidingSuccessor Tax Liability in a Sale of Business Assets. American BarAssociation. Retieve fromhttp://apps.americanbar.org/buslaw/blt/2008-11-12/carpenter.shtml
Uva,W. (2001). Smart Pricing Strategies. Ithaca: Department of AppliedEconomics and Management. Cornell University.
Wołczek,P. (2014). The concept of corporate social responsibility andsustainable development. Problems of Sustainable Development.