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Is trade bad for the environment?

Pages:10

Trade is one of the oldest forms of business in the human world and has taken place worldwide, not only between neighbouring countries but also across the globe. Many pathways have been specially curated to ease the trade of goods and services between many nations and countries. One of the major routes is the Suez Canal, constructed by the British and the French in 1869. However, the question to assess Trade comes to mind as many environmentalists point out the hazards of Trade and the negative effect it might have on the environment. On the other hand, many also claim that Trade is actually more beneficial for the environment than otherwise. In effect, it can be said that Trade has both negative and positive effects on the environment.

Positive Impact of Trade on the Environment

The relationship between the Trade and the environment is a strong one that goes together hand-in-hand. The environmental impact of “trade liberalization” has been divided into many types, including the scale, technique, and composition affect—the liberation of trade results in the expansion of economic activity and growth.

The Scale Effect

The scale effect suggests that it must be recognized that the balance between maintaining economic welfare and keeping pollution levels low is a hard one to maintain.  In simple words, “if the scale effect dominates technology and composition effects and if externalities are not internalized, economic growth will always be harmful to the environment” (Stoessel).

Trade and national incomes are also very closely linked; as trade increases, national incomes also see a rise. This, in

turn leads to improvement in environmental aspects and quality of the surroundings (Grossman & Krueger, 1993; Copeland and Taylor, 2004).

The complex nature of the number of positives and negatives of Trade reminds us that Trade does not entirely lead to causing harm to the environment (Copeland and Taylor, 2004).

Keeping in mind the nuanced nature of the debate, it is very difficult and perhaps unfair to come up with a conclusively decisive answer.

The Environmental Kuznets Curve (EKC) helps explain the phenomenon that “raising incomes per capita are not linearly correlated with environmental deterioration. Rather, pollution increases in its early development stages until it reaches a turning point, and then declines since concern with environmental quality increases and long-term issues start to prevail” (Stoessel, 2001; Copeland, 2005; Copland and Gulati, 2006).

The Technique Effect

Many academics and researchers agree that 75% of technological advancements have been due to Trade. This model suggests, “New technology is thought to benefit the environment if pollution per output is reduced. Furthermore, if the scale of the economy and the mix of goods produced are held constant, a reduction in the emission intensity results in a decline in pollution. Hence, the technique effect is thought to have a positive impact on the environment.” (Stoessel, 2001; Mathys, 2002).

The Composition Effect

This model propagates that “Trade based on comparative advantage results in countries specializing in the production and trade of those goods that the country is relatively efficient at producing. If comparative advantage lies in lax environmental regulations, developing countries will benefit, and environmental damage might result. If instead, factor endowments (e.g., labor or capital) are the source of comparative advantage, the effects on the environment are not straightforward. Therefore, the impact of the composition effect of Trade on the environment is ambiguous.” (Mathys, 2002; Stoessel, 2001).

Economic Growth

Trade with other countries can lead to growth on two levels, one for the trading partners, and the second for the indirect stakeholder countries that will be affected in the long term. Moreover, Trade, by pushing forward economic growth, has the capacity to lead to societal progress. This may be because development will be taken place as a result of an economic boom that will contribute to increasing the environmental capacity for efficiency. Further, the economic boom may also lead to advancement in research and development that will directly impact local and international production operatives and may discourage the use of dangerous substances in the field of production.

Environmental policies

Another positive aspect of trade and commerce is that the process can result in the development of the objective of manufacturing and adopting pragmatic environmental policies and legal standings. This is so because the introduction of a country in international Trade exposes its trading sector to the other country’s trading sector and the involved checks and balances included in the exchange of Trade make the countries involved to better their trading policies and to integrate acceptable environmental policies that may contribute to the positive image building of the country in the international community. Hence the changes introduced in the supply chains and the associated trading sector enhances the importance given to the environment and makes Trade beneficial for it. This is essentially what Rose and Rankel (2005) suggest in their “Gains from Trade” Hypothesis that was a built upon the ideals and teachings of Adam Smith and David Ricardo whereby as per Smith, “the gains from trade arise from the advantages of division of labor and specialization—both at the national and international level.” Also, according to Ricardo, trade contributes “to increase the mass of commodities, and therefore, the sum of enjoyments…”.

Many people who are supportive of trade purport that trade boycotts and restrictions are in actuality, not helping to the improvement of the environment. Many international bodies and communities have recognized this argument and have united to improve Trade in an efficient manner. For instance, the formation of World Trade Organization (WTO) in 1995 has tried to bridge the gulf between these two discrepancies. WTO constantly works to propagate green economy and sustainable development; it has also introduced many policies to protect the environment. It is mentioned on the WTO website that “In the WTO, the Committee on Trade and Environment started its work on environmental reviews in 1996 under Item 2 Environmental protection and the trading system of its work program.

In 2001, the importance of environmental reviews in WTO trade negotiations was confirmed in paragraph 6 of the Doha Declaration. This reads We take note of the efforts by Members to conduct national environmental assessments of trade policies on a voluntary basis.

In Paragraph 33 of the Doha Ministerial Declaration Ministers “encourage that expertise and experience be shared with Members wishing to perform environmental reviews at the national level.” The continued work in the committee is based on this.

The importance of reviews was also confirmed in the Johannesburg World Summit on Sustainable Development’s Plan of Implementation of 2002.”

The Doha Declaration is testament to the fact that WTO is determined to ensure that Trade does not cause environmental destruction but rather propels the development of the environment with the help of Trade.

 

Negative Impact of Trade on the Environment

However, trading with other nations also posits many potential dangers.

Growth may lead to Pollution

One of the major negatives of Trade may be the resulting pollution due to the excessive degrading of resources used as power to make Trade possible. There is also a direct impact on climate change that results from Trade. The process of trading with countries far away from the home country may lead to intense weather changes and the severe changes in the content of the sea. Maritime transport is particularly harmful in some cases. It accounts for about 80% of the total international Trade and the chance of oil spills increased because of this high number.

 

Reports from International Tanker Owners Pollution Federation Ltd (ITOPF) suggest that

“between 1970 and 2016 approximately 5.73 million tonnes of oil were lost as a result of tanker incidents As single large incidents can be responsible for a huge share of all the oil spilled in a given year, it is advisable to look at trends or decade averages. Over these 43 years, the annual quantity of oil spilled decreased hugely. In the 21st century the quantity of spilled oil was smaller than in several single years in earlier decades. 2012 saw the lowest oil spillage on record so far: 1000 tonnes were spilled. The development can be seen in the following visualization.

Since reports on small (<7 tonnes) oil spills are less reliable only medium-sized and large oil spills are included in these estimates. These are the oil spills presented in the chart before (above).”

Oil spills have been known to cause extremely harmful environmental problems such as damaging the ecosystems and natural habitat found in beaches, ocean and seas that may affect birds, marine mammals, fish, and many more. Long term impacts of the oil spills are flabbergasting and intense. For instance, the short term impact on the sea turtles includes their difficulty in reaching the seashore, but the long term impact may include their eggs failing to develop properly in the oily field or platform and leading to a substantial decrease in the quality and quantity of the species.

Oil spills may also have deadly consequences for a larger marine community. Oil spills are known to repeatedly kill marine life including dolphins, whales, sea otters and many more. The oil property of blocking breathing regions of sea life is a significant factor in leading to the death of these mammals. Oil can completely or partially disrupt can the blowholes of the larger mammals that might hinder their breathing. Other than that, oil coats on animals can also lead to several harmful internal and external diseases such as hypothermia.

An example of the far-reaching impact of the oil spills is the Exxon Valdez oil spill that lead to the death of about more than 2500 sea otters, about 300 harbor seals, and approximately 22 killer whales. That is just the momentary and visible cost of the oil spill. An extensive team of scientists later carried out a longitudinal study of the affected region and found that the effects of the spill could be felt even years after the spill. These consequences included the increased death rate and extremely stunted growth. It is after thirty-five years of the disaster that the team found that the Prince William Sound ecosystem finally smelled of being on the path of recovery and other apparent effects on many animals such as the sea otters seemed to have disappeared as well.

It is also important to note that related carbon emissions are also closely linked with Trade as according to a survey in 2015, the transportation sector combined which is the largest contributor of providing Trade and making it a possibility in the first place, amounts to about 18% of the total carbon emissions.

Those who oppose the concept of globalization point out that Trade is harmful to the environment on a global scale. These people usually believe that “in open economies a race to the bottom in environmental standards will result from governments’ fears that enhanced environmental regulation will hurt their international competitiveness, the result is a race to the bottom in environmental standards.”

Jeffery Frankel and Andrew Rose Study – A Fall to the Top

The Research Associates at NBER, Jeffrey Frankel and Andrew Rose, studied the consequences of the prevalence of Trade in 1995 in a positivist analysis. Their findings included that “the impact of Trade on at least three kinds of air pollution appears to be, if anything, beneficial, not adverse, for a given level of income. Openness, measured as the ratio of Trade to income, appears to reduce air pollution. The level of statistical significance is high for Sulfur Dioxide (SO2), and moderate for Particulate Matter and Nitrogen Oxides (NOx)”.

However, it must be kept in mind that correlation does not equal causation. The apparent linkage of the two, between pollution and Trade, could have arisen from someplace else. There is a high chance that the places or countries that have more implementation of democracy might be more inclined towards Trade and may be more concerned with improving environmental facilities and policies. Moreover, there is also another postulation that higher levels of national income might be liked with Trade and environment in more than one way.

This study tested the causality between the concept of Trade and how the environment is linked with it. It does so by keeping the income level constant and under control while testing the outcome of free Trade on the environment. Later the researchers focus on exogenous factors such as distance, other geographical aspects, scales of growth, investment, education, and population.

These researchers also make use of the “Environmental Kuznets Curve” to measure the three aspects of air pollution. This concept, as explained in their study, suggests that “growth harms the environment at low levels of income, but helps at high levels. At higher levels of income per capita, growth stimulates the public’s demand for improving environmental quality, which in democratic societies is brought about through environmental regulation.” The researchers postulated that “SO2 pollution, for example, peaks at income levels of about $5,770 per capita, and thereafter starts to decline.” This analysis is in-line with many economic teachings that put forward that growth leads to many different types of pollution, such as air and water, especially when the region is going through industrialization. However, this gradually and ultimately leads to a reduction in pollution since with the passage of time, countries involved gain a stronger economic standing and become self-sufficient to clean up the pollution they create. It can be said that where the technology involved in Trade leads to pollution, it also leads to an increase in the income levels that ultimately aids in leading to an increased demand in environmental quality that places a force on the supply side to make positive changes in the environment.

The study of Frankel and Rose conclude that it is after a fall in environmental conditions that a change is observed in the environmental patterns and the environment starts to see an improvement. This entails that in the short run, Trade may deteriorate the environment to an extent, but in the long run, it actually benefits the environment by improving the conditions.

Conclusively, it can be seen that the impact trade has on the environment is multifaceted. There are many positive outcomes and many negative consequences of Trade on the environment. Some positive results include the models of the scale effect, the technique effect and the composition effect; moreover, the economic growth and the improvement in environmental policies. Trade also has some seriously dangerous consequences that include the overbearing cost of pollution. Pollution of different types is caused by many surrounding aspects of Trade. For instance the transport burden leads to the emission of harmful carbon emissions. A major threat is posed to marine life because much of the Trade is carried out using ships and cruises via seas and ocean routes and there are serious cases of oil spills whose consequences may last for decades. Lastly, the study by Jeffrey Frankel and Andrew Rose serves as a bridge between these two opposing beliefs. Their findings postulate that Trade initially will result in environmental harm but, in the long run, can actually improve the environment. 

Resources

World Trade Organization, WTO.org

Nicolas Korves, Inmaculada M. Zarzoso, Anca M. Voicu, (2011) “Is Free Trade Good or Bad For the Environment? New Empirical Evidence,” intechopen.com, September 9th, 2011

Shruti, “The Gains from Trade (An Overview),” economicdiscussion.net

“Is Trade Good or Bad for the Environment?”, nbpr.org, May 28th, 2020

Larry West, (2020) “5 Environmental Consequences of Oil Spills”, thought.co.com, February 4th, 2020

 

 

Fishing by Torch Light by Paul Kane

Pages:4

The art selected for the essay is Fishing by Torch Light by Paul Kane, which is an oil on paper sketch dating back to 1845 and is a rare piece depicting Canada’s history. The oil-on-paper sketch by Paul Kane is among Canada’s First Peoples art collections at Royal Ontario Museum. This essay will argue that in Fishing by Torch Light, Paul Kane’s use of color, line, and shape focuses on emphasis and movement in the composition. The formal elements, as well as principles of art, form an impression of mystery and foreboding.

The medium used for the artwork is oil on canvas, and the Canadian artist sketched the western landscape to denote the lives of the Natives. This artwork was undertaken during his voyage from 1845 to 1848 as he traveled far west. While observing the artwork, one notices that the hues in this sketch have been used mainly on the fishermen rowing the boat as well as on the outline of the boat and torchlight. This emphasizes the importance of the torchlight and its impact on the fishermen. This emphasis makes the torchlight along with the fishermen, the focal point or center of interest for the observer. The dark hues used correlate with harmony as a large amount of area within the artwork has been painted with limited hues (Field, 2018). The relatively simple arrangement of yellow, black, and brown are distributed throughout the artwork and ties the parts together to forge harmony. At the same time, the pop of color makes the torchlight appear more pronounced. This contrast of light and dark values aid in emphasizing the torchlight and the fishermen, but also the river, trees, and the night sky. It should be noted how the light of the torchlight is shown in the water against the dark background. This clearly establishes the importance of torchlight. On the other hand, the light values of the fisherman, boat, etc. make them stand out against the darker values.

The element of line can be observed within the painting, and it can be tied to the principle of movement. The diagonal lines within the sketch convey a feeling of movement. For example, the movement of the boat moving forward is depicted through the torchlight, which is neither horizontal nor vertical. It is imperative to note that the oil on paper sketch also contains characteristics of impressionist painting as it captures the essence of the subject matter, which is fishing aided by the torch lights (Webster, 1944). Paul Kane thus manipulates the use of line to create a movement which the observer channelizes through observation. A sense of intrigue is created in the backdrop of the night as the boats are shown to move forward through diagonal lines, however, the path forward is not clear because of dark hues surrounding the light emitted by the torchlight(Brommer, 2000).

In addition, the diagonal lines within the artwork are creating the potential effect of confusion surrounding the space. The thick and thin, long and short, curved and straight lines across the river and on the trees tie the element of the line to the principle of variety as well. This is because the curved line of the torchlight, vertical line of the fishermen, and the curved outlines of the trees provide the variety which is necessary for generating curiosity in the onlooker as well as a sense of mystery within the realm of the painting.

Furthermore, the elements of shape and form, along with the principles of emphasis, create a gradual change from darkness to light. It can be noticed how the transition of light from the torchlight to the surroundings, i.e., boat, water, etc. overlaps, which in turn overlaps with the fishermen. This overlapping draws the eye of the observer to the trees as well as the river. The illusion of depth is created by the reflection of the light from the torchlight into the dark water that creates atmospheric tension and mystery(Brommer, 2000). The opposing element of light and dark water creates a sense of foreboding. The emphasis on light, as well as the changing of light as it passes through deep water, creates an impression of uncertainty. The theory of impressionism can best describe the judgment on this formal analysis as the fleeting effect of light on the surface of the water is captured in such a profound way that it is emphasizing on color and tone rather than on outline and shape (Brommer, 2000). Kane has mixed hues with opposite colors, such as shadows of yellow, to create atmospheric tension. Furthermore, the mystery does not have to be depicted visually as it can be felt.

The uncertainty of where the fishermen are headed to or what might lay in their path creates a metaphysical scenario that cannot be measured. The shape of the torchlight, boat, and fishermen range differently, and the directions of the lines enclose them diagonally, which projects visual interest because of unequal proportion(Field, 2018). For example, while looking are the waving torchlight one is drawn towards the image of the fisherman rowing the boat in forward direction creating a sense of ease while the small shape of the boat ahead and a potentially deep river ahead creates a sense of foreboding as it denotes the relatively minor impact of the efforts of the fisherman in comparison to the vastness of the deep dark water or the night. The shape of the trees is a circle and in an equal proportion, which creates less interest and the emphasis, which is why they amount to a large void encompassing the deep river.

References

Brommer, G. F. (2000). Elements and Principles of Design. Crystal Productions.

Field, J. (2018). An Illustrated Field Guide to the Elements and Principles of Art + Design. Hot Iron Press.

Webster, J. C. (1944). The Technique of Impressionism: A Reappraisal. College Art Journal, 22.

 

 

Portrayals of Democracy Breakdown

Pages:4

Animal Farm and Lord of flies, both have depictions of Democracy breakdown. Inanimal Farm, animals were dictated every step of the way by NapoleonLikewise, in Lord of Flies, Jack becomes bossy on others. He is arrogant and makes them feel like he knows more than they do and order others to do things.

In Chapter 2, Napoleon says, “Never mind the milk, comrades!” cried Napoleon, placing himself in front of the buckets. “That will be attended to. The harvest is more important”. This shows Napoleon lust for power. He is a clear dictator on the sheep’s as he makes them chant this phrase repeatedly. He doesn’t wants to share the milk but saves it for the other pigs. He makes them chant it like a mantra and shows this pig as being a monster.Aldino Hartan in his article, Dictatorship Of The Proletariat In George Orwell’s Animal Farm Novel (1945) : A Marxist Analysis, describes Napoleon as a dictator. He schemes alongside the hounds to take over the leadership. (Hartan, 2019)Napoleons actions depict him as a dictator with lust for power. Further, in Chapter 3, Orwell writes about the puppies, “As soon as they were weaned, Napoleon took them away from their mothers, saying that he would make himself responsible for their education.” This is another example of dictatorship where the puppies away to train them. . Stalin was also a dictator like these used to scare the animals in the faUsing them to keep the other animals in check is what a dictator would dorm.Hartan in his article refers to this predicament as another example of Dictatorship as he was using violence and fear to put the animals in their place and make them feel sad and down.(Hartan, 2019)Hartan’s perspectives that Napoleon is actuallya brute dictator who used terror to silent the other animals at the farm.Napoleon says, “Comrades, do you know who is responsible for this? Do you know the enemy who has come in the night and overthrown our windmill? SNOWBALL!”This directs towards the realization that Napoleon was a tyrant who wanted to derail Snowball as the leader.He wanted to use this predicament in his favor and turn all others against his opponent is an example of breaking down democracy and introducing dictatorship. John Rodden in his article refers to “Napoleon as the dictator Stalin”. (Rodden, 1999) Stalin also had the lust for power and he made the wholea s snowball was the true leader of the animals that is why he was maligning his name the most to turn them against him.

Lord of the Flies

In Lord of Flies, Jack says,“And you shut up! Who are you, anyway? Sitting there telling people what to do. You can’t hunt, you can’t sing—”(Golding, 54)This is another example of demeaning and making other feel small about themselves. Leaders do not make other feel bad about themselves to feel big. They take the team with them and motivate them every step of the way. They don’t tell the team member to shut up or mock them by saying who are you anyway. This is not just insulting but shameful but openly depicts that Jack is ab autocratic leader and only believes in giving order rather than taking the team onward with him.Jack in Chapter 4 said, I painted my face—I stole up. Now you eat—all of you—and I—”(Golding, 54)This is a portrayal of Democracy breakdown as jack yelled at his team to obey him. This is a very harsh tone used by Jack and the choice of words is very insulting. LIU Li in her article, “The Application of Frye’s Theory to Lord of the Flies” describes jack as Satanic. (Li, 2014) His actions are trulySatanic in nature and wants to the democratic breakdown. Li presents his character as someone who is demonic in nature and loves being savage to others. Golding presents him as self-absorbed about himself and forces others do what he wants that make him a complete dictator. He is the least likeable character in the novel due to his dictator attitude and at every step of the way; we find one new reason to dislike him with his actions. He is very rude and has no right to demean others.Jack further says,“Hands up?” said Jack strongly, “Whoever wants Ralph not to be chief?”(Golding, 54)These words depict thatGolding shows the characterof jack asrude and a dictator who wants to be the chosen chief.He wasa control freak and made those in her teamsuffer. Ralph represents democracy and listen to others. Jackon the other hand symbolizes dictatorship shamelessly shapes the minds of other team members as Ralph. Hedrift’s away from the process of a democratic system by which Ralph was selected as the chief of the team. Asking them to raise hands against him is itself a portrayal of democracy breakdown in Lord of the Flies.

In the light of this evidence, it’s concluded on the fact that from it is proven that there was characters in both the novels and they were the Portrayal of democracy breakdown.  Jack was the dictator in Lord of the Flies and repeatedly he showed signed of overlapping the democratic process at every level. Repeatedly proved of being so. On the other hand, Napoleon in Animal farm was the dictator anddespite the animals but also for the fellow human beings as well.

 

References

 

Golding, W. (1954). Lord of the Flies. Faber and Faber.

Orwell, G. (1945). Animal farm. Secker and Warburg.

Hartan, A. (2019). Dictatorship Of the Proletariat In George Orwell’s Animal Farm Novel (1945) : A Marxist Analysis. Retrieved from http://eprints.ums.ac.id: http://eprints.ums.ac.id/71994/

Li, L. (2014). The Application of Frye’s Theory to Lord of the Flies. Studies in Literature and Language, 187-189. Retrieved from https://muse.jhu.edu/article/644662/summary

Rodden, J. (1999). Understanding Animal Farm: A Student Casebook to Issues, Sources, and Historical Documents.

 

 

 

Corporate Social Responsibility Level 4 Diploma

Pages:22

  1. Please explain Corporate citizenship as part of the business model

  2. Please explain Measuring corporate social responsibility

  3. What makes a multinational company a global citizen

  4. Please explain Managing the interests of stakeholders

  5. Please explain Mutual benefit and responsible business practice

  6. Please explain Corporate governance, best practice

  7. Please explain Human rights in the global marketplace

  8. Please explain Environmental risk management

  9. Please explain Corporate social responsibility as part of the business

  10. Please explain CRS practices in the organisation of your choice

 

 

 

Corporate citizenship relates to the social obligations of business to society. Corporate citizenship is critical, considering the stake of both the owners and the employees in brand image building and being a responsible member of the community. Businesses across the world have significant ethical and legal responsibilities; the best institution builds up a solid formation of corporate citizenship, and professed an assurance to ethical conduct by making peace between the priorities of shareholders and the needs of the community. These CSR exercises help the firm to present themselves as socially responsible companies that make efforts towards society’s betterment.

Interchangeably, Philanthropy is used in place of corporate citizenship. A firm’s apprehension of public benefits and managing their business activities in line with the rules based in alliance with corporate citizenship is necessary. Terri Williams from the economist refers to the 2018 Delotte survey of 11 thousand HR’s and business leaders from across the globe, and 77& of the respondents realized and focused on the importance of CSR and Corporate citizenship. (Williams, 2020) Hence all across the globe CSR practices are being valued and followed.

Occasionally, companies operate alone in the community or towards the betterment of the environment. They work closely with different businesses and NGOs that are facing issues or influence. The approach of corporate responsibility and corporate citizenship are mostly replaceable to each other; corporate social responsibility (CSR) is also the idea of corporate citizenship that can be changed or in various forms depends on the company’s structure and type. It is integral to making it a part of the firm’s plans towards the betterment of the community.

Adam Hayes refers to it as a social responsibility of businesses across the globe that (HAYES, 2019)

Corporate Citizenship needs to be a part of the business model as then it will become a necessary thing to do. CZ provides benefits as companies leverage their core competencies to tackle the challenges, make priorities, and measure the organizational background that concerns the financial, social, and governance aspects of the (ESG). Research shows that excellent social and environmental performance in companies is no longer merely “nice to have” as a part of the overall strategy of an organization. Hence it can be concluded on the fact that it recognizes that it is not possible to reach the maximum benefit of the corporate obligations in isolation; companies need to aid all those organizations and individuals that are working for the benefit of the global environment.

There is a need for continued dialogue between businesses and community partners, managers, and individuals within the value chain of an organization. Each is an essential component for recognizing the impact that corporate citizenship can build. All stakeholders need to join hands to make the overall predicament better. The value of corporate citizenship needs to be realized by all businesses, and they need to focus on the global plight. They need to explore alternatives sources of minimizing the impact their product could have on the environment and the society as a whole.

2)

Corporate Social Responsibility stands as one of the most common and widely appreciated business practices at every level all across the globe with every brand and company aiming to support sustainability and other methods. It has become a necessity in the modern-day business world, not just as an image-building tool but also as a responsibility towards the betterment of society. Social investment funds are allocated that has emerged as one of the integral elements in modern-day businesses. To measure the impact of any CSR activity, KPI’s can be set that need to be met for the CSR activity to become successful and prosperous. (Indonesia, 2009)

Social guidelines are integral in order to view the parameters set for measuring and evaluating a patchwork of national guidelines, and global understanding has built up that currently forces businesses to consider the social and environmental implementation of their exercises. Reports are then arranged and marketed to interested parties (consumers, investors, and other companies). Sales of these reports become the primary income source for these companies. Extra incomes originate from customized studies as assumed for customers, for which field analysts visit these organizations. For example, Calvert Group depends on an internal team of specialists in labor relations, environmental sustainability, and defense-related issues, worldwide human rights organizations, organizations for the protection of wildlife that help them.  (Hopkins, 2005)

Michael Hopkins, in an article, defines corporate social responsibility and puts forth a procedure to measure CSR of a company. Prior to this KPI’s set were merely the Indicators that were chosen as per the whims rather than actual meaningful procedure. As per his understanding, CSR can be measured at three levels. A) Principles set forward of Social Responsibility that includes legitimacy, Public responsibility as well as managerial direction given by the company. Secondly, the process of social responsiveness that has adapted at the company can also be measured that includes Business Environment, Managing the stakeholder, and identifying the issues that determine the critical motivating principles of the company. Lastly, the outcomes of social responsibility are also integral that aid in seeing how the internal and external stakeholder is affected by it and finally, how much external institutional effects impact upon it. (Hopkins, 2005)

In terms of vital elements that need to be measured include,

  • Working environment
  • Product safety and effect
  • International operations and human rights
  • Public relations.

Formulating a strong CSR strategy is clearly in the excitement of an organization. A good score will yield grants, adulation, deals, and popularity. It diminishes the probability of ‘stir’ as shoppers, finance professionals, against the organization. Nonetheless, even suitable CSR activities do not guarantee stakeholder recognition. In the case of a poor strategy, it can shake the economic foundations of an organization’s operations. Then again, they will also carefully inspect the assessment methods used to ensure that the stakeholders and the companies being assessed regard them as both credible and suitable. There is a discernible rivalry between the agencies responsible for measuring the rating and the businesses that they rate.  (Márquez, 2005)

3)

Companies take an interest in the happenings across the world in other countries. Simultaneously, these companies are confronting new requests to address global issues such as environmental concerns and poverty. The nature and extent of moral obligation inside partnerships change after some time that should improve as both the companies of the company and the general public wherein enterprises implanted develop. Earlier, when corporate organizations were no more intertwined than individual family arrangements or game plans for small companies, one might typically interpret the corporate values of an independent company as being covalent with individual entrepreneurs’ moral commitments. (UNO, 2008)

Corporate social responsibility is an idea that endeavors to carry a more extensive moral comprehension to the subject of business association. Since corporate businesses are essential to the social orders in which they exist, their management takes responsibility towards the wellbeing of society by and large just as to the interests of those maintaining the business. Responding to concerns like sustainability, companies have willfully started applying worldwide corporate social responsibility methodologies to guarantee that their business is conducted while following environment-friendly practices. (Ort, 2004)

They may create sets of standard rules or observing procedures to ensure that their subcontractors produce merchandise without abusing laborers or the earth. There is, in any case, no all-around shared meaning of global corporate responsibility. Business for Social Responsibility characterizes worldwide corporate social duty (CSR) as “business dynamic connected to moral values…and regards for individuals, societies, and the environment.” (Ort, 2004)

Most business leaders want their organizations to act responsibly wherever they work. However, like most policymakers and activists, they don’t force its implementation across the board. There is no guide for worldwide corporate behavior. Also, numerous administrators accept they are just market entertainers who meet their corporate responsibility by expanding investor esteem. Others, in any case, allow that they should discover approaches to deal with their activities in a socially and environmentally capable way. (Ort, 2004)

In light of these events, governments across the world are attempting to assist businesses with advancing global responsibility towards sustainability. Citizens can’t depend entirely on advertise powers to develop moral conduct. Even though business sectors have urged more firms to act dependably in the global economy, showcase powers have not been adequate to guarantee intelligent behavior always. The correct blend of clear strategies can ensure that market powers don’t penalize responsible firms for advancing human rights and practical turn of events. (Aaronson, 2003)

Significant reforms have been made across the globe regarding CSR. Many different governments highlight the corporate prerequisites to enable corporate social responsibility. The French government, for example, updated French corporate laws in 2002 and ordered the disclosure of social and environmental organizations that towards its execution. Also, Europeans are beginning to consider whether CSR systems and that it applying the techniqueswill enable them to minimize the harms caused by such business practices. Hence across the world, not only that CSR’s value is being reconsidered but also that it has its value across the globe.

4)

Stakeholders across the world influence the accomplishments of an association’s goals. They are directly influenced by the achievement of an association’s targets and goals. Creditors, customers, directors, employees, government, and its organizations – proprietors & shareholders, suppliers unions, and the community from which the business draws its assets are the key stakeholders in a company.Managing the interests of organization stakeholders and adjusting the business practices with respect to the benefits is integral for the greater good. Corporations can be gradually receptive to society’s interests all in all by incorporating stakeholder investment into their chieftainship sheets.

The primary stakeholders have vested interests as consumers, creditors in every organization that concerns CSR implementations. Corporate directors are responsible for coordinating and negotiating with stakeholders in the light of genuine concerns across the globe regarding sustainability. Stakeholders are equally accountable in aiding to realize and emphasize upon the need and understandings regarding the CSR policy of a company. What steps need to be taken to run a company, and what part the stakeholders have to play as their part in making sure those rules and duties are being fulfilled is necessary? (Foundation, 2013)

Secondary stakeholders are indirectly affected by the organization’s steps taken towards evaluative the efforts of the organizations towards supporting the organization’s efforts of corporate social responsibilities. Significantly, CSR works in the form of self-regulation, and the secondary stake holder’s need to monitor the practices of a company. They need to make sure that the company is not breaking the rule and regulations set by the government in following the fundamental principles to ensure that CSR is possible. In the stakeholder views, the source for the obligation concerning the association’s stakeholders depends on their reality and position.

Sustainability has become a phenomenon, and even multinationals recognize that there is a concern for the atmosphere and inefficient corporate activities by stakeholders. As customers have been increasingly conscious of air pollution, as well as the eco-friendly use of the Business resources, several businesses have taken steps to keep in line with the engagement of the customers. This move by companies makes a negative impact on employees as well as the entire business sector, as demand for environmentally friendly products has been increasing with the realization of its needs. More and more big companies are being held accountable by the stakeholders in order to make them obey all the legislation regarding the environment and to help enhance the quality of life or at least not reduce it.  (Roanhorse, 2020)

The stakeholders should take an interest because these corporate practices need to be composed of the stakeholders’ commitments and understanding regarding managing these hazards. Businesses across the globe are increasingly implementing strategies that include not only the critical needs of the operations and enterprise of the company, but also comply with all the regulations put forth regarding CSR. Sustainability recognizes the potential impacts of sustainable growth. Understanding that sustainability is vital to preserving natural resources and human life is integral for the stakeholders. (Roanhorse, 2020)

5)

Ethical business practices tie-up with taking a positive approach towards following the guidelines, and stakeholders’ wishes in making an organization’s brand image better. The practical approach forward on this is to search for mutual benefit, an answer that offers the advantage to both the organization and the other stakeholders. The CSR supporters have progressively perceived that responsible companies can make a more committed to the community that they work to expand these incentives for the environment and society, and if they utilize their skills, aptitudes, and assets, they can attain the goals set forward regarding sustainability management.

In South Africa, a variety of initiatives for helping the process of sustainability have been taken by contractual workers to levels where they can fulfill the needs of running a responsible business. In one mining organization, for instance, huge amounts of hardware have been disposed of when realized that it was causing pollution and harming the natural environment.

P Ducker, in an article, discusses about the business being socially responsible and become an agent of creating benefits for the world. More and more companies are now discovering the truth regarding this assertion from management expert Peter Drucker across the globe. As per the study, Research shows a significant increase in concern among corporate leaders for connecting company practices with social and environmental issues consistently. A survey of 1200 top-level U.S. company executives was conducted, and 81 percent of them said that resolving social and ecological problems is vitally important for companies. 84 out of 100 said that it was related directly to economic competitiveness. More than 60 of 100 said that the company is obligated to behave like a socially responsible entity, and’ 73 of 100 said that these practices are an expression of values. All these facts highlight that it is integral to become socially responsible. (FRY, 2016).

For instance, a direct stock management system can help guarantee that the distributor or retailer isn’t overloaded on certain things while being unavailable on others. What’s more, adequate stock control will cause the wholesaler to have a more grounded system to make their stock management better. For example, the elements in an organization, including the activities, human relationships, or promotion, all play a mutually beneficial role in the execution of a CSR strategy. Nevertheless, one of the attributes of corporate citizenship that makes it both satisfying and test simultaneously extends to all the framework set forth. Thus, it is frequently most effectively valued by the CEO and the senior administration gathering and can discover challenges in coming through all the various capacities at the central administration level. The common advantage is a practical methodology and apparatus for the dependable company both for accomplishing more in formulating business activities and as a method for utilizing resources for corporate community inclusion.  (Fontaine, 2013)

6)

Corporate governance is the structure, rules, practices, and procedures that co-ordinate and regulate an organization. Corporate governance involves balancing the interests of various stakeholders in a business, such as shareholders, senior management, clients, vendors, financiers, administration, and the network. Corporate governance also gives the framework to achieve the objectives of a corporation; it encompasses every circle of the managers, from business strategies and manage the internal controls to business estimates and corporate disclosure.

The appropriate governance practices will emphatically affect long haul corporate performance – but companies must plan and actualize those that both conform to lawful prerequisites and meet their specific needs. Here are the leading five corporate governance best practices that each Board of Directors can connect with – and that will profit each organization.  (Subramanian, 2015) They need to,

Build a stable professional executive board and review execution. Committees should include competent and business-related managers who are qualified and capable and have ethical values and uprightness, diverse foundations and skill ranges, and ample time to reflect on their responsibilities. (Subramanian, 2015)

  • All business executives must be autonomous: not a part of management and with no direct or roundabout material relationship that could meddle with their judgment. Educate them and offer the new executives guidance to familiarize them with the company, their responsibilities, and the desires of the Board; keep time in Board meetings for the continuing company and governance training.
  • Define all the jobs and assigned duties. Build up away from of responsibility among the Executive Officers and management, create documented orders for the Board, and every council setting out their responsibilities and the terms of accountability.
  • Separate all the roles entrusted to both the company chairman and the CEO: the chair guides the board and ensures that it works in the ultimate gains sought out by the organization; the CEO controls the management, develops and reviews corporate strategies and reports to the board of directors.
  • The Board will analyze, conduct, and resolve choices about the concept of remuneration. Set the charges of the directors that will attract inappropriate up-and-comers, but do not appear to claim in the autonomy of the director or discharge his / her responsibilities.
  • Set quantifiable execution goals for officials (counting the CEO), regularly survey, and evaluate their presentation against them and attach performance remuneration.

Companies should always distinguish and study the dangers they face that are related to any department of the company and suggest appropriate solutions. The Board is answerable for the critical initiative in building up the organization’s hazard resistance and building up a structure and clear accountabilities for managing risk. Management will regularly audit the magnitude of systems and controls management puts in place to identify, assess, mitigate, and screen chance and the appropriateness of its description. Directors are able to understand the present and establish short and long haul chances facing the company and the suggestions for the show. They will challenge the presumptions of the business executives and the sufficiency of the organization’s risk management, their procedures and methods.

7)

The most impressive and refined roles at the world stage today aren’t being played by governments but by NGO’s and other companies. While some worldwide businesses show thought for the individuals whose lives they contact, many don’t. Regardless of inadequacy/plan, some companies genuinely hurt the communities around them and impact the quality of human life. A lot of the obligation to forestall and address organization driven human rights misuse lies with governments. As organizations keep on broadening their worldwide come to, their activities influence the human rights of progressively more individuals in significant manners. Governments have neglected to keep pace.

Most nations have laws, as well as the books requiring companies to stick to essential human rights gauges on their dirt. In any case, global companies work far and wide in nations that can’t or don’t give enough oversight or guideline for their human rights practices.  History straight up through the current day shows that ineffectively directed businesses can destroy the lives of the individuals and networks they sway. Human Rights Watch explore in places as various as Eritrea, Papua New Guinea, India, Bangladesh, and Nigeria has demonstrated this very obviously. Governments should haul their heads out of the sand and acknowledge their obligation to manage and control organization human rights practices.

The reasons organizations give for restricting extraterritorial human rights oversight or guideline by their home governments don’t stand up well to examination. (hrw.org, 2020)

One of the most widely recognized is the thought that such control would put them at a severe burden against deceitful firms from nations with less dynamic governments. However, in all honesty, organizations ought not to put resources into business sectors where they can’t viably contend without being complicit in particular human rights mishandles that they have to escape their governments and shareholders. Those feelings of trepidation are reasonably justifiable while numerous nongovernmental associations are pushing for sensible principles, a few activists presumably might want nothing better than to see the mining business, for example, squashed by over the top guideline. However, those voices shouldn’t direct the provisions of this conversation or blamed them for abstaining from having it.

Organizations may never wind up preferring the administration oversight they need, and they might be right in figuring that it isn’t in their rare personal circumstance to have it continually investigating their shoulder. Yet, extraterritorial oversight and guideline of organization human rights practices should be possible such that organizations can live with and get the benefit. (Cassel, 2001) Government activity need not be unduly difficult to be successful, and there is, to an extreme degree, an excess of avoidable human enduring on the opposite side of the scale to legitimize inaction.

Likewise, the possibility of human rights due diligence, which holds that businesses should find a way to distinguish, moderate, and address human rights dangers connected to their activities that would be a more grounded apparatus if governments make it required. Governments need to discover the fearlessness to make regard for human rights by corporations that must be compelled to follow the rules and regulations set by others. Human rights activists can help structure the functional administrative systems that are reasonable for organizations.

8)

Around the world, there is a clear risk in life in an acculturated culture, where people do not understand the risk, and its consequences are expected. As in every project, though, before treating threats, it is essential to know what is being dealt with. Few may claim that companies owe no non-creation duty to society; however, there is plenty amount of risk that needs to be seen, and it is the responsibility of the business community to manage all the environmental dangers being caused at their hands. In every case, the individuals who embrace CSR feel companies can fulfill a broader purpose beyond simply amplifying benefits.  (epa.gov, 2017)

Risk management is based on for points

1) Hazard Identification.

Sort the cause of hazard, and find the source of risk characterized it and make the detailed document.

2) Analysis

Before taking any action for eliminating the risk or controlling it, keep in mind the consequences and other outcomes. Determine the plan of action on how it will happen.

3) Control the risk

Assign all the necessary measures to mitigate and overcome the threat.

4) Review of control measures

At this point, review all the steps which will take place for risk mitigation and keep an eye on the residual risks and problems if more effort needed timely action shall take.

Environmental Hazard Definition

An environmental hazard is a state or event which has the potential to threaten the natural environment and also affect the health of the public. The process and method of identifying the hazards are described and all the elements of risks which can be the cause or source of hazard that needs to managed.

Job safety environment assessment

Particular procedure to work at risk or likely to the hazardous workplace, it mostly in the form of a document, many of big country now introduce the software for it.

Work Methodology

There is always a map to act about the risk or likely to hazardous; all the necessary precautions shall be adopted. Supervise every department and its role.

SWOT Analysis.

Strength Weakness Opportunity Test should be taken of the entire project that, in the future, such incidents can be tackled efficiently and effectively. Keenly understand the plan of action, complete all the legal and official formalities, mark the area in which the mitigation work will perform, and place the barrier. Take research before the operation of how the other companies managed the risk what their benchmark of work was, what measures they adopted.

Environmental risk management must be the same as all the other departments of business management or any of the different departments that make up the administrative capacity of a business. Specifically, the environmental risks and the management of the environment itself are firmly associated with that risk management is a piece of ecological management. Ecological risk assessment and management ought to be a component of each part of the business. From production to marketing to distribution and transport, the ecological effect of the company is significant.

9)

CSR means that organizations and their workers act `to the best benefit of their community and society at large. Social responsibility is known as corporate social responsibility (CSR), where it relates to companies. This also highlights the need for businesses to become suitable corporate citizens. CSR includes going past the law’s prerequisites in securing the environment and adding to social government assistance. It is broadly acknowledged as a commitment to the present-day business. (Rangan, 2015)

CSR goes the extra mile, getting money for shareholders. CSR protects the needs of all stakeholders that are included in the business, such as suppliers, consumers, staff, and the networks in which organizations operate. CSR models include getting charitable work, caring about the world, and participating in noble undertakings. (Rangan, 2015)

Some people are arguing that companies do not own any responsibility to society outside of creation; nevertheless, there is a lot of cash inside the law that could be anticipated. In either case, the individuals who support CSR agree that companies will pursue a more profound purpose beyond simply amplifying benefits. Social accountability has increasingly become important for financial professionals and consumers searching for lucrative projects as well as providing social and environmental support to the government. At the same time, the critics contend that the underlying business concept does not accept culture as a partner.

Four kinds of corporate duties.

  • Environmental efforts: Environment is a critical subject of corporate social responsibility. Organizations, paying no attention to their production techniques, lead to having an immense amount of carbon emission is highly destructive. They need to minimize these experiences and enhance their production techniques to help build both the organization and society.
  • Philanthropy: Businesses across the world practice CSR by providing finance, products, or services to philanthropic activities across the world. Organizations, in general, have immense amounts of resources that they can use to maximize the benefits of their services. It will be highly beneficial to communicate the benefits of these businesses to help them understand the value of their services.
  • Ethical labor practice: Organizations may show their social obligation by treating the workers fairly and morally. They should devise these business strategies to compete on a level playing field, which will also make them socially responsible.
  • Volunteering: Being a part of volunteer activitiesis integral and it can aid in making a great of deal of impact on the organization’s vision. Consequently, companies may express their concern for specific issues by doing beneficial things without expecting something and commit to particular associations.

Grabbing social responsibility in that capacity will support the primary mandate — an improvement in investor appreciation. There is an ethical imperative for organizing business practices that do not impact the environment. Additionally, various corporations across the globe are expected to participate in socially responsible practices before making a venture or purchase. Depicting of being socially responsible is an appropriate image practice across businesses, so is the power to be able to do so can have a negative impact on the financial record. Social accountability is usually highly successful when willingly practiced.

10)

CSR stands as an activity that evolves with the evolution of Business, integrating rational the change into the business model of a client. It is having a positive effect on the social, economic, and environmental factors. CSR encourages environmental development for both large and small businesses. If businesses seek to make the best decision for a primary interest as well as a financial profit by building trust with customers, consumers know they are supporting a brand that is socially responsible in terms of its products. CSR aids the people to invest in jobs, bring problems to light, and foster social change. (DMI, 2020)

And though hundreds of thousands of organizations do their part, the activities of large global companies have excellent effects that end up impacting all the major problems across the world that include global warming, public health, and other issues. Here’s an example of how a brand makes CSR effective. Millennials & Generation Z, socially conscious businesses, are considered progressive and vital. It is agreed that companies should invest in the search for solutions to making the world better in their overall self that supports such changes. Making efforts is essential for targeting Millennials, as these efforts can affect Millennials’ decision-making as consumers. Millennials would also like to take part in programs, such as having the option of engaging in humanitarian activities or giving donations to charitable organizations. (DMI, 2020)

If an increasing number of businesses across the globe begin to see the effect of their socially and ecologically responsible activities on a consumer’s acceptance, the higher is the likelihood that they will start taking measures on their own. Millennial activism of all ages will also affect changing CSR fashion toward workplace abuse of discrimination; diversity will continue to grow throughout the work world, welcoming individuals of all races, genders, communities, and cultures. Companies should also place their voices in response to social inequality and legislative shifts that impact the world in the opposite direction. Companies that socially more responsible can end up having more sales due to the support of all those customers that are learned about the impact of sustainability. The company is a shining example for other organizations to follow. They have become more immersive in their ways of conducting business portraying as socially responsible.

Indeed, all protection techniques can turn out to be active, and all the CSR trends need to be followed as well when an increasing number of information is being shared compromising of each data. This is only a small example of how corporations use corporate social responsibility to protect the world and make a commitment to improving the quality of life and happiness of the people they affect.  For companies across the globe, concentrating on the issues that consumers are keen about, and the impact thattheir efforts can have on the communityaround the world is essential. Companies around the world who work for the society in compliance with their obligation end up productive, and this also impacts the brand identity.

 

 

 

 

 

References

 

Aaronson, S. A. (2003, 4 8). Corporations as Good Global Citizens. Retrieved from https://yaleglobal.yale.edu: https://yaleglobal.yale.edu/content/corporations-good-global-citizens

Cassel, D. (2001). Human Rights and Business Responsibilities in the Global Marketplace. Business Ethics Quarterly, 261-274.

CMI. (2011). Stakeholder Analysis and Management. Retrieved from https://www.managers.org.uk: https://www.managers.org.uk/~/media/Files/Campus%20CMI/Checklists%20Managerial/Stakeholder%20analysis%20and%20management.ashx

DMI. (2020). 16 BRANDS DOING CORPORATE SOCIAL RESPONSIBILITY SUCCESSFULLY. Retrieved from https://digitalmarketinginstitute.com: https://digitalmarketinginstitute.com/blog/corporate-16-brands-doing-corporate-social-responsibility-successfully

epa.gov. (2017). Risk Management. Retrieved from https://www.epa.gov: https://www.epa.gov/risk/risk-management

Fontaine, M. (2013). Corporate Social Responsibility and Sustainability: The New Bottom Line? International Journal of Business and Social Science , 110-122.

Foundation, T. S. (2013). Stakeholders and Corporate Social Responsibility. Retrieved from https://resources.saylor.org: https://resources.saylor.org/wwwresources/archived/site/wp-content/uploads/2013/02/BUS208-3.3.7.1-Stakeholders-and-CSR-FINAL.pdf

FRY, R. E. (2016, 6). Business as an Agent of World Benefit. Retrieved from http://www.gspeak.be: c/publications/document-3-4-june-2016.pdf

HAYES, A. (2019, 6 12). Corporate Citizenship. Retrieved from https://www.investopedia.com/terms/c/corporatecitizenship.asp: c/terms/c/corporatecitizenship.asp

Hopkins, M. (2005). Measurement of corporate social responsibility. International Journal of Management and Decision Making, 213-231. Retrieved from https://www.researchgate.net/publication/247831664_Measurement_of_corporate_social_responsibility

hrw.org. (2020). World Report 2013: Without Rules. Retrieved from https://www.hrw.org: https://www.hrw.org/world-report/2013/country-chapters/global-0

Indonesia, B. (2009). Measuring Corporate Social Responsibility Performance. Retrieved from Bisnis Indonesia: c/2009/09/08/measuring-corporate-social-reasponsibility-performance/

Lin, C.-P. (2010). Modeling Corporate Citizenship and Its Relationship with Organizational Citizenship Behaviors. Journal of Business Ethics, 357-372.

Márquez, A. (2005, 1 1). Measuring Corporate Social Responsibility . Retrieved from https://link.springer.com: https://link.springer.com/article/10.1057/palgrave.crr.1540228

Ort, E. W. (2004). From Corporate Social Responsibility to Global Citizenship. Retrieved from https://repository.upenn.edu: https://repository.upenn.edu/cgi/viewcontent.cgi?article=1058&context=lgst_papers

Rangan, K. (2015, 1). The Truth About CSR. Retrieved from https://hbr.org: https://hbr.org/2015/01/the-truth-about-csr

Roanhorse, E. (2020). Effect of Sustainability on Stakeholders. Retrieved from https://smallbusiness.chron.com: https://smallbusiness.chron.com/effect-sustainability-stakeholders-35892.html

Subramanian, G. (2015, 3). Corporate Governance 2.0. Retrieved from https://hbr.org: https://hbr.org/2015/03/corporate-governance-2-0

UNO. (2008). Achieving Sustainable Development and Promoting Development Cooperation. Retrieved from https://www.un.org: https://www.un.org/en/ecosoc/docs/pdfs/fina_08-45773.pdf

Williams, T. (2020). Corporate citizenship: Your company’s role in society. Retrieved from https://execed.economist.com: https://execed.economist.com/blog/industry-trends/corporate-citizenship-your-companys-role-society

 

 

Strategic International Business Management

Pages:13

Introduction

Management performance tends to handle the operational process in organizations through regular feedback. The scope of business management is enhanced when a business model is invigorated. It is vital for a company’s success that several changes should be implemented (Korsgaard, Rask &Lauring, 2007). The process of strategic management is to implement a strategy in an organizational framework that allows the accomplishment of strategic goals. This kind of operation is to get more customers who spend more, so longer retention is made. (Lechehab&Kamassi, 2016) The monitoring and planning analysis in an organization need specific processes to meet the objectives. This report will discuss international strategic business management in IKEA regarding Malaysia. The report will discuss the mission, strategic goals, and SWOT analysis.

Company Overview

IKEA is a global brand that was found in 1943 by Ingvar Kamprad. The company is famous for its famous and modern stores. Its different kinds of products are eco-friendly and cost-effective. IKEA operates in 389 stores worth of 42.9 billion. It also has few branches across the world with such as KungensKurva, in Shen Zhen, and Texas. It has presented an example of trendiest with low-cost furniture. IKEA is considered a recognizable brand at the globe with best practices. The trademark of the company is well designed and functional regarding frugality experience. These practices are related to the principle that offers competitive advantage (Soh, Wong & Chong, 2015). The image, quality, and affordability of products is an asset for the company. The company has the opportunity to be streamlined about its customs, franchising, and popularity.

IKEA is successful in terms of its management operations. Its formulation processing is based on the right demographic framework. IKEA stores are customized to offer a better experience to customers in terms of fluid shopping (Hultman, Johnsen, Johnsen & Hertz, 2012). The living room and domestic style experience for customers are exciting. They need to take a code linked to the selected item when they buy furniture. The functional layout of products is seen as a mass service for a product offering that fulfills the basic needs of consumers.  Some basic features of the firm are high quality, wide variety, the flexibility of products, less disruption, and easy supervision.

Mission

The mission of the company is to build a strong culture that will deploy crucial factors for the continued success of IKEA. The concept of sustainability is inherent because furniture is considered a necessary value for people’s lives (Korsgaard, Rask &Lauring, 2007). The recognizable brand name and concept are linked to low valued price and home furnishing products. The company has a wide range of its products and allow frugality practices for being the first choice of consumers as compared to other brands. The culture of IKEA is to work within everyone, create and develop it further, so people live with this vision. This concept is building a core competency of the company against others. IKEA has established its long going capacity in Malaysia with the science and technology concept and managerial practices. The developing economy of Malaysia is offering huge potential to the company to produce furniture due to newly identified competitive advantages (Garnier&Poncin, 2019).

SWOT Analysis

IKEA is a valuable furniture brand in the world, and in 2019, its worth is estimated at US$45.4 billion. The strengths of the company are its brand image and brand name. The reputation and awareness of the company are its key strengths (Johansson &Thelander, 2009). A most significant strength is its low-cost affordable furniture because it aims to sustain in the lives of people, so it is cost-conscious. The philosophy of IKEA is to keep costs low and incorporate new technologies, advances, and innovation to allow profit margins(Arrigo, 2005). This is associated with the profitability, efficiency solutions, and cost-effectiveness methods in handling products. In Malaysia, IKEA has a competitive advantage in producing products.

The combination of effective packaging and low price furniture startup in Malaysia is a big strength for the company. The products of the company are new, different, and allow extraordinary shopping experience to people, so consumers are engaged in decision making (Soh, Wong & Chong, 2015). It is different from other brands because of the wide variety, selection, and offering a chronological order. Just as its competitors are working in Malaysia, IKEA aims to maintain long term relationships with customers, so optimizing its cost and transport timing.

Its weaknesses are less focused on improvement policies while working in less developed countries like Malaysia. It also has inadequate support policy as well as limited visibility regarding marketing and promotion. The sparsely located few stores in Malaysia can be less responsive to increased demand of the population (Minkes&Minkes, 2005). It has to employ more staff to enhance the buying experience of customers by attracting them. The packaged furniture and its technical nature is different and needs more focus on assemblage. It depends on the third party to assemble and assist in purchasing products that can be a weak point for IKEA. There is an absence of detailed instructions that can accompany products and retain consumers when they go for detailing.

There are some opportunities for IKEA to further develop and boost its concept in Malaysia. It can increase its clientele by educating people more about environmental waste and pollution. If wastes are reduced regarding furniture usage, it can develop a strong concept as an opportunity in corporate social responsibility (Hultman, Johnsen, Johnsen & Hertz, 2012). With Malaysia and other less developed counties like India and Indonesia, IKEA can fully develop its network of furniture supply. It has the advantage of working on broader concepts by developing effective solutions for business. This will provide solutions to reduce environmental pollution, so a sustainable life at home will be easy. In Malaysia, the potential exists regarding natural resources and others like advanced technology and science, so it can promote a technical friendly product (Garnier&Poncin, 2019).

Some external factors can work as threats to the company in Malaysia. There are many low-cost retailers in Malaysia that can share market value and specialty of furniture with IKEA; there is a need to produce more economical and consumer-friendly products to compete with the rivals. The financial conditions of a country are other luring threats for IKEA. Any financial crisis and economic downturn in the economy can cause threats to IKEA (Lechehab&Kamassi, 2016). The size and scale of the company is also a threat because it has to focus on the operating economy where experts believe watering down of innovation due to less targeted consumers in Malaysia. The company is steadily acquiring a household place in masses, so it has to improve quality and standard with its expansion (Fröding& Lawrence, 2017).

IKEA strategies and its associated plans

IKEA’s marketing strategy through which the organization searched out cultural and advanced customers and also searched a sufficient market to sell its products. IKEA sends its designs to concern professional people to its homes and provide them feedback(Arrigo, 2005). This strategy allows the ministers to make the market decisions that are based on people’s life’s experience; this experience might be collected from survey and data collection. IKES Strategies considered all elements that are involving around product and price into mixed marketing. IKES tries to present its best product on the lowest market rate, and it is also called the 7Ps of marketing, in which position, development, methods, characters, and material elements are taking place (Hultman, Johnsen, Johnsen & Hertz, 2012). IKEA was established by Kamprad in 1943; this term developed when the home furnishing stores are used for monetary purposes around the world. All IKEA retailers are running their own franchise business.

IKEA of Sweden concerns all product ranges, which are associated with IKEA; the entire production differentiated with tags, designs, and quality. To start IKEA’s strategies, find the solution to various questions.  IKEA knows about consumer satisfaction and how much it is important. Consumer relations influence the business significantly (Stanciu, Zlati, Antohi&Bichescu, 2019).

Different research objectives also take place in this term, like investigating the consumer demand theory. Establish a referencing and suggestion system for company development. The basic purpose of this theory is to satisfy the consumer at any cost, either the consumer belongs to any category of life. In those days’ customers have awareness about the brand and its worth; at first, the consumer judges the product, and its services afterward estimate his personal experience and, at last, make a decision whether the product is appropriate and meets its exceptional level or not. After using the product, if the product fulfills its requirements, then the customer will purchase it again. Otherwise, he contacts any other commodity. In this fast business establishment affairs, customer relations are critical to managing. Customer satisfaction shows that he will purchase the commodity afterward to satisfy the demand that would be a long-term relationship to company and customer till then the other product may not facilitate its needs. An efficient marketing program consisted of all terms and conditions to evaluate the mix marketing concerning the market objectives which a company has to occupy to compete for the other rivals (Fröding& Lawrence, 2017).

IKEA base the business success on superior marketing strategies that must be the same around the world, which consisted of the description list it must be in written form in 17 languages and color should be blue and yellow, the color of the Swedish flag. This technique applied to the customer that they are free to purchase any commodity. The price also is shorter than other brands because the consumers, first of all, focused on the price (Johansson &Thelander, 2009). To understand the IKEA business strategy, it is necessary to be based on business conception and formulation prepared by IKEA 12th January 2009. It also provides a wide variety of sketches, functional, and other home decorating products at a low price thus can purchase every kind of class. The main objective must be centralized the objectives and purposes of IKEA’s business strategy. It also provides a guideline on work; these rules implement all sectors of the strategy, whether they belong to the country or around the world. IKEA focused that the environmental designs are presented into its home decor items; for this purpose, it launched a plan in 2015(Arrigo, 2005). This plan will combine the cultural, environmental, and financial and commercial crises. IKEA follows SWOT analysis to gain its objectives (Carter, 2009). This is a developmental business tool. It also assists the business to focus on its fundamental issues. SWOT is a planning stage and focuses on strengthening and weakening and also deals with the internal and external aspects of the business, and also face all threats that are affecting the company matter and associated with other business merchants. The SWOT business plan also concerns retailing, production departments. It also can deal with economic situations, social variations, and technological advancements. IKEA also emphasizes that every business holder has to sense its strengthening aspects to overcome its future challenges. IKEA also focuses on attracting the fundamental group of customers to establish a brand in a world community. It also provides different business techniques at a low price (Alänge, Clancy &Marmgren, 2016).

To maximize the profit, the brand has to establish a trustful relation to the supplier, retailer, and customers. It also embraces several strategic techniques to create customer trust and gain worth in a market. Long term relations to customers or retailers also provide a profitable sense to the business. IKEA emphasizes making good relations with customers by fulfilling their expectations and trying to find out how the new customers ties in a long-term relationship (Baxter & Landry, 2017).

Successful Strategic Goals

The world economy is booming, so the furniture market is also going up with rapid development. 70% of the global market is acquired by traditional furniture companies. The scenario is easy to understand due to increased production capacity, technical advancement, and strategic management. IKEA has also managed to enter in China, Indonesia, and Malaysia by focusing on the key significant strengths and its strategic goals. In many less developed countries, it has developed its concept of competitive advantage and working to show greater potential. Its production is increasingly focused on matching quality standards in Malaysia and beat its competitors. The clear mission of the company is to sell a wide range of furniture with reasonable prices that allow people to buy and get involve (Baxter & Landry, 2017). The wide range offering is a keyword in functionality because consumers, in this way find a place where everything is present. The strategic goals that IKEA has considered to enter in Malaysia are creating high efficient sales department, offering best ideas for home furnishing and serving customers with the best shop of furnishing ideas.

The aim of IKEA at Malaysia to offer them successful appearances and a perfect shopping experience for whole family (Carter, 2009). The people and environment is always a concern for IKEA so its management try to manage every day’s life with a better notion of commitment. It has also responded any rising public concern regarding sustainability, choice of the communication and product range. In Malaysia, effective focus on transportation and raw material was easily maintained due to easy access and prevalence of raw material. This situation helped company get its green targets and spread impact. In Malaysia, it is working on the original approach of dealing customers, i.e. self-serving method. The catalog allow people select whatever they want so they choose their products and put and assemble at home.  The centralized strategic direction at IKEA is increased with its expansion (Alänge, Clancy &Marmgren, 2016).

The rapid internationalization has enhanced the challenges for company in a broader scenario so there is also increasing difficulty of managing and responding needs. It is considering cultural and social factors while operating in new premises so emerging demographic trends are easy to tackle with a focused strategy(Arrigo, 2005). IKEA is also focusing on varied level consumer groups by implementing its strategies. The power of strategic management is significant under the organizational structure. It is focusing on maintaining a balance between autonomy and country-level centralized intervention, which will be attributable to franchisee autonomy and subsidiaries. Its suppliers are located in low-cost countries that are an advantage for Malaysia based IKEA (Stanciu, Zlati, Antohi&Bichescu, 2019). They can access raw materials so effectively reach out to distribution channels. The suppliers are selling standard products with broader dealing at the same time.

IKEA’s brand is focusing on innovation mix, advanced, and quality furniture. A combination of low-cost high quality furniture is the business model that is further being tackled with new innovations and techniques to expand and cut costs. Its simple idea of keeping costs low for manufacturers and customers is workable because it doesn’t own its sole manufacturing facilities. The upstream innovation and research & development activities are centralized in Malaysia. The strategic and operational strategies are workable and acquired a steady scope due to global policies.

Challenges

While operating in a global market, an international brand may face some challenges. For instance, while operating in Malaysia, it has to focus on its internal capabilities, ceasing activities, and incorporate key strategies to make its reputation (Carter, 2009). It has to work in an intensely competitive environment because targeting consumers is not easy, and there are multiple brands considering similar operations. It has been facing external and internal challenges in Malaysia regarding raw material, transportation, and availability of the latest technology. Some competitors are focusing on influential corporate decision-making strategies to make effective decisions for the firms. The management team has identified key threats from this business point objective so IKEA has to implement consumer related methods. It is facing diversification issues to boost sales (Alänge, Clancy &Marmgren, 2016). Some internal cultural issues are also prevalent. Due to geographic factors, IKEA is facing different taboos in Malaysia so it has to focus on to improving furniture design.

Conclusion

IKEA in Malaysia is working on competitive strategy with low cost initiatives. It has opened new stores, with an aim to use stability strategy. This will be helpful to monitor performance of the products and allow well operating conditions for business. The stability factor increases productivity of a company so it can take profit based features. Low cost operating methods, effective decision making approach and a business formulating method for its consumers are main pillars of Malaysian market that company is focusing. IKEA is working at global level so a focus on price and differentiation is a key to maintain. The price cost of company is linked to the cost of production, under strategic management framework, this scope is maintained. Globalization is a central aspect of strategic management, so IKEA in global market places, is expanding this view by gaining better competitive advantages and profits. The trend of consumer products at global marketplace is emerging and IKEA is viewing this phenomenon in Malaysia to reap a better growth.

References

Alänge, S., Clancy, G., &Marmgren, M. (2016). Naturalizing sustainability in product development: A comparative analysis of IKEA and SCA. Journal Of Cleaner Production, 135, 1009-1022. doi: 10.1016/j.jclepro.2016.06.148

Arrigo, E. (2005). Corporate Responsibility and Hypercompetition. The Ikea Case. Symphonya. Emerging Issues In Management, (2). doi: 10.4468/2005.2.04arrigo

Baxter, M., & Landry, A. (2017). IKEA: Product, pricing, and pass-through. Research In Economics, 71(3), 507-520. doi: 10.1016/j.rie.2017.03.003

Carter, R. (2009). Will consumers pay a premium for ethical information?. Social Responsibility Journal, 5(4), 464-477. doi: 10.1108/17471110910995339

Fröding, K., & Lawrence, G. (2017). Sustainability at IKEA. Linnaeus Eco-Tech, 67. doi: 10.15626/eco-tech.2010.008

Garnier, M., &Poncin, I. (2019). Do enriched digital catalogues offer compelling experiences, beyond websites? A comparative analysis through the IKEA case. Journal Of Retailing And Consumer Services, 47, 361-369. doi: 10.1016/j.jretconser.2018.12.011

Hultman, J., Johnsen, T., Johnsen, R., & Hertz, S. (2012). An interaction approach to global sourcing: A case study of IKEA. Journal Of Purchasing And Supply Management, 18(1), 9-21. doi: 10.1016/j.pursup.2011.11.001

Johansson, U., &Thelander, Å. (2009). A standardised approach to the world? IKEA in China. International Journal Of Quality And Service Sciences, 1(2), 199-219. doi: 10.1108/17566690910971454

Korsgaard, S., Rask, M., &Lauring, J. (2007). The Diversity Management Paradox in Globalization – The Swedish IKEA Way. SSRN Electronic Journal. doi: 10.2139/ssrn.1135570

Lechehab, S., &Kamassi, A. (2016). The Benefits of Implementing Lean Management System at IKEA Malaysia Company. مجلةالباحث, (16), 55-66. doi: 10.12816/0034358

Minkes, J., &Minkes, A. (2005). Decentralisation, Responsibility and Ethical Dilemmas. Social Responsibility Journal, 1(1/2), 16-20. doi: 10.1108/eb045790

Soh, K., Wong, W., & Chong, C. (2015). Strategic Choices: A Composite Model for Logistics Service Providers. Journal Of Southeast Asian Research, 1-10. doi: 10.5171/2015.652416

Stanciu, S., Zlati, M., Antohi, V., &Bichescu, C. (2019). The Development Analysis of the Romanian Traditional Product Market Based on the Performance Model for Sustainable Economic Development. Sustainability, 11(4), 1123. doi: 10.3390/su11041123

 

Japanese American & WWII

Pages:5

Japanese American & WWII

Fred Korematsu failed to comply with the Japanese American’s orders in 1942, so he was arrested. The American Civil Liberties Union proposed the grounds that American citizens can happily live where they desire, but under 6-3 decision, the Supreme Court ruled that military necessity is constitutional. In 1942, about 110,000 Japanese Americans were incarcerated in the western US. These Japanese Americans were kept in internment camps. Korematsu disliked and refused it and went for the legal challenge through US Supreme Court. According to the Supreme Court, compulsory exclusion can be applicable in time of peril and emergency. The start of war is related to some misconceptions and risks associated with immigrants as well as Japanese-Americans that led to work in unfavorable way for the country.

The attack of the Japanese on Pearl Harbor and the related report was issued in 1942. The First Robert Commission issued and authorized that the war department can develop specific areas for military and that can exclude Americans. This was to provide necessary lodging support and transport and displacement. In 1942, the army Lieutenant issued a proclamation that democratized exclusion zones under military areas. This directed German, Japanese, and Italian aliens to inform the postal service of the US. The defense command of US-issued exclusion orders for civilians that all the Japanese ancestry will have to report to the assembly points.

Korematsu decided to stay in California rather than obeying this order. This decision was an open violation of the army’s exclusion order. According to him, the order was not constitutional, and it violates the fifth amendment of the US laws. The Fifth Amendment was due to a lack of protection policies of federal. The case and onset of the war are related to the legalization of racism. Frank Murphy asserted that constitutional power is used for the ugly abyss. The mass hysteria occurred when Japanese Americans were imprisoned during World War II. Most of the loyal Americans were actively represented themselves in churches, schools, and communities. The Ralph Lazo was a unique person who was willing to stand up for these people.

After the attack on Harbor, the military arrested Japanese Americans as well as religious leaders. Though scant evidence was available, buy Japanese characters were the main arresting cause. Under the Chinese exclusion act in 1882, the immigrants from china were barred for 60 years. In 1917, Asians were considered to get jobs from whites, so the US suspended the policies of immigration for most of the East Asians. In addition, all the ethnic Japanese were also barred in 1924, and they were forbidden to get citizenship. The anti-Japanese sentiment was a leading cause for the onset of war.

The wartime civil control administration Karl Bendetson vowed that even a drop of Japanese blood would be incarcerated. This policy was opposed by some newspapers, and the American Baptist developed material to push back, but the wartime searches went for public protests, and non-Japanese supported this venture. According to Senator Robert Taft, the policy was not useful for the public, so it was condemned. The West Coast landowners and farmers got many incentives to get rid of these Japanese farmers who only found successful methods of irrigation. In Hawaii, the business owners focused on the internment and opposed this understanding, yet it was not considered for positive reasons. This fear lost workforces, and about 1200-1800 Japanese Americans moved to internment camps.

After much chaos related to the organizational level, about 15,000 Japanese Americans were moved to the no go areas. The inland citizen of the state were not aligned with new residents. The state governors also voiced some opposition because they had fears of the Japanese residence, and they have to forcefully accept them. The relocation centers in that time were California, Manzanar, Minidoka, and Jerome, etc. the issue gave rise to political and constitutional debate because Japanese American citizens challenged the orders of curfew. Korematsu received negative feelings and judgments about this process, and he was determined to be loyal and related to the courts. The relocation centers faced violence such as internees in New Mexico were moved by trains. The internment camps ended up in 1945, and the Supreme Court decision held for this issue.

The rule regarding this issue highlighted that war Relocation Authority is related to citizens yet not subjected to the concededly loyal procedures. This case was put forward by Mitsuye Endo that was the daughter of immigrants from California. The habeas corpus petition was filed by her, and the government offered her to let her go freely, ye she refused and wanted her case perusal. The military debated restrictions limited the involvement of military participants. This structure was developed on the support of the confined Japanese persons.

General Mark Clark faced opposition and executive order 9066 that was to prescribe the military areas to such places that appropriately determine the exclusion criteria of people. The secretary of war then authorized to focus on the residents about exclusion, so to get involved in key practices of food, transportation, and accommodation. In this regard, the alien and citizens supported the removal of all these people from the coastal region, so it was impossible to know who was loyal by that time. Mass evaluating was not supported by many leaders, yet they wanted to prove the loyalty of people in order to operate in military necessity. Later, the army controlled wartime administration practices to remove Japanese Americans.

Korematsu changed his facial features and his name to go in hiding. The person was arrested later, and in the court, he proclaimed that the imprisonment of people on the basis of ancestry is not logical. He also claimed that Yasui spent much time in prison, and then he went to Minidoka Relocation Center, and Korematsu was sent to the relocation center. This act was not authorized, and Japanese Americans faced relocation. The war created massive consequences for people, and Californians had to face shortages of food. The evaluation process also thwarted sabotage and espionage. This issue was related to the people who acted as Caucasian parents, while more than 1/16th Japanese people’s blood was involved.

Ralph Lazo was the classmate of RoseiKakauuchi and was a loyal person. He was viewed as an orphaned child who was accepted and loved by everyone. The grim surroundings discussed resilience.   Ralph went into camps in 1946 and received Bronze star because he acted with bravery in all this nightmare. At the end of the war, Ralph support was maintained with consistency for the Japanese Americans, and the security for the community was ensured. During the wartime, the necessity of a significant voice to show power and unity was acted, which were related to administration. The legal profession later changed the status of war and struggle for own community member. The exclusion of residing role in World war II was also considered significant.  World War II placed emphasis on the loyalty of communities and people contributing to their beloved country. The war also set an example for the sovereignty of the state and the sacrifices people believe in. The outcomes of war showed how effective it was to develop sustainability for the country with the involvement of people.

Crime Theories

American History, Race and Gender

 

 

 

Marketing Audit Report – TESCO UK

Pages:22

Executive Summary

 

The marketing audit report examines and analyzes the various factors and dynamics that impact and influence the business operations and practices of Tesco UK. It studies the range of macro-environment factors that affect the strategic business decisions and the future direction that the company will take. Similarly, the marketing audit report of Tesco also analyzes the micro environment that the company operates in and gauges the significance and the influence of its buyers, suppliers, competitors, and related actors have on the business decisions and profitability of the company. It also looks at the major threats that Tesco faces and examines the opportunities that the management can capitalize on to ensure that the company maintains its market leadership position in the retail industry. The report also examines the key resources, capabilities, strengths, and marketing strategies of the company that play an important role in the creation of competitive advantages for Tesco. Ultimately, the report analyzes the key strategic challenges that the management of Tesco faces and provides some recommendations for addressing those challenges in an effective and efficient manner.

Macro Analysis

Political Factors

The most significant political development is recent years that has the potential to impact the business operations and practices of Tesco UK is the Brexit event. The departure of Britain from the European Union will potentially result in the increment of taxes and duties. This will impact the profitability of the business operations of the company stores located in other European countries. Similarly, Brexit will also influence the cost of procurement for different products that Tesco acquires through imports. Another significant political event was the election. The policies drafted by the Boris Johnson regime will also impact the operations and profitability of the company(BBC, 2019).

Economic Factors

The economic conditions of the country play a critical role in determining the success and growth of any organization operating within its borders. For instance, the global financial crisis of 2008 brought a major downturn in the country’s economy and adversely affected many companies. Similarly, the managerial leadership at Tesco needs to be on the lookout for economic factors resulting from Brexit and other events that can impact organizational performance.

UK GDP Growth (PwC 2019)

Social Factors

The changing social trends and dynamics influence the customers and buyers significantly and, therefore, hold fundamental importance for Tesco. There has been a rise in customer awareness over the recent years regarding climate change. Many customers have become increasingly aware and critical of the practices and materials that go into the products they purchase. Similarly, the UK also reportedly has an ageing population which Tesco will have to cater accordingly to maintain its business performance(Christie, 2017).

Technological Factors

The effective utilization of technological developments is extremely essential for Tesco to ensure an efficient and sustainable business operation. Integrating technology into the supply chain of Tesco can help the company in not only cutting down the cost of operations, but it will also enable Tesco to achieve competitive advantages that are beneficial especially in a competitive sector like retail. Disruptive technologies like E-shopping and android based customer facilitation applications can be utilized to enhance organizational performance and customer satisfaction(Ramaswamy and Ozcan, 2016).

Environmental Factors

Environmental issues like global warming and climate change have attracted increased attention and coverage in the past few years all over the world. Tesco should take effective measures to ensure the implementation of environmentally acceptable business practices and operations in order to comply with the climate change standards. Tesco should also seek to cut down on the levels of energy consumption and greenhouse gases in its stores(King, 2020).

Legal Factors

Tesco, being a multinational retail chain, is affected by many laws and regulations governing its operations in different countries. The management mustalso keep up to date with the different county laws in which the company stores and outlets are located. Non-compliance with such laws and regulations can result in heavy fines and bans which will hamper the company’s operations and profitability.

Micro Analysis

Market

The retail industry in the United Kingdom is one of the most important sectors in the country. The retail sector plays a critical role in the growth and prosperity of the economy of the country. Over the period of last five years, the retail sector has grown at a steady rate of approximately 10 percent. The industry amounted for a total market value of 377 billion pounds last year. Despite the uncertainty surrounding the exodus of the United Kingdom from the European Union and the challenge of online retailing faced by the companies, the retail industry is still expected to grow to approximately 390 billion pounds in 2020.The retail sector is also reported to be the largest employer in the United Kingdom with private sector employment numbers of approximately 3 million workers.(Statista, 2019)

 

The dynamic rise in the trends and practices of internet based technologies and online shopping continues to be a significant opportunity for the retail sector in the country. The growth of mobile and internet based shopping is slated by many analysts to be a key driver behind the rise in E-commerce based purchasing in the coming years. Approximately half of all the retail sales in the United Kingdom are projected to be online by 2028. The companies and businesses, therefore, need to adapt to this emerging dynamic in order to sustain and enhance their business operations in the future.  (Deloitte UK, 2020)

Customers

Tesco categorizes its customer base into different segments on the basis of various dynamicssuch as demographics, social, financial and economic factors, gender, family size, education levels, age, and the cultural and ethnic backgrounds. The target customer segment for Tesco can be identified as buyers seek shopping convenience, low prices, high quality, and a variety of products and services at one place. The implementation of the Tesco Club Card policy is the primary source for the managerial leadership of the company to gain valuable insights regarding the buyers. It enables the management to make informed decisions and draft effective strategies to segment and target the buyers in an efficient manner. (Tesco Plc, 2018)

Competitors

The retail industry in the UK is dominated by four major players, Tesco, Sainsbury ASDA, and Morrisons. The competition in the industry is high as these companies compete fiercely on pricing and market share and incorporate innovative business strategies and technologies to attract new customers to their fold. ASDA occupies the second largest market share after Tesco. It is a subsidiary of Walmart and operates with over 600 retail stores in the country, offering the lowest prices amongst the big four retailers. Sainsbury and Morrisons are the other two major competitors for Tesco, operating with over 1300 and 500 retail stores in the country respectively. Some other retail companies include Aldi, Lidl, and Waitrose.(Statista, 2019)

 

Market share of retail chains in Great Britain from August 2012 to August 2019

Internal Analysis

key resources

Tesco has developed a strong procurement system for its business operations that helps the company in meeting the quality standards that Tesco is known for. A strong procurement system not only helps Tesco in achieving low costs of production, but it also enables the company to attain a competitive advantage that drives it ahead of the competition. The company has also incorporated the use of technology into its supply chain operations and activities. Tesco is amongst the leading retail companies in the country that utilizes RFID technology for supply chain and procurement practices. The management has also implemented various values and principles of lean management in an attempt to reduce waste and improve quality of its products and services(Zhao, 2014).

Key Strategies

One of the most significant business strategies that translates into a major competitive advantage for Tesco is its customer centric approach to business operations and activities. The buyer focused approach has enabled Tesco management to focus exclusively on the needs and wants of local customers. The business strategy has enabled Tesco to drive sales in both its local and foreign markets. Another operational strategy that is critical to the success of Tesco’s business operation is the use of cross docking practices. It has enabled the company cut down on inventory levels, reduce storage costs, and consolidate products in an efficient manner. Similarly, the implementation of Collaborative Planning, Forecasting, and Replenishment (CPFR) concept is also an important business strategy that contributes to business results(Damron et al., 2016).

 Key Tactics

Since Tesco operates in an intensely competitive industry, pricing becomes the most important dynamic that determines the growth and success of the company in the long run. Due to Tesco’s capabilities in procuring quality materials at low costs, the company has been able to offer high quality products and services to its customers at low prices. Tesco is able to edge out its competitors and maintain a market leadership position in the retail sector over the years primarily due to its pricing and product quality. The implementation of effective and efficient employee practices, supply and procurement activities, waste reduction, and technological integration for customer facilitation has enabled Tesco to keep its prices low and attract customers(Palmer, 2005).

TOWS Matrix

While Tesco has benefited from diversifying and expanding its operations and business practices into other geographical locations, it also constitutes one of the major threats to its operation. The variation in exchange rates and recent uncertainty surrounding Britain’s proposed departure from the EU are primary threats to Tesco. The intense competition that the company faces within the country is also a major threat to Tesco. The rise in the use of internet and E-commerce is a major opportunity for Tesco to attract more buyers by capitalizing on such trends. Tesco can also increase the number of organic products it offers and implement more eco friendly business practices in order to appeal to this segment of the customer base effectively. Incorporating disruptive technologies into its business operations can also enable Tesco to strengthen its market standing even further.

One of the biggest weaknesses of Tesco is that the company operates in the highly saturated retail market which translates into lower margins. Due to its low pricing strategy, it can result in significantly decreased profits for the company. The accounting scandal of 2017 also poses a significant weakness for Tesco as the company was heavily fined for false profit declaration(Kukreja and Gupta, 2012). The biggest strengths for Tesco are its highly effective and efficient procurement and sourcing systems, waste reduction and inventory management practices, and the development of a diversified business operation. The low pricing, high quality standards, customer focus business approach, and technological integration also constitute its major strengths and make Tesco the leading retail chain in UK(Ahlert et al., 2009).

Strategic Challenges

The biggest strategic challenge that Tesco faces is failing to maintain a coherent and an engaging connection with its customers. It will result in an unsatisfactory shopping experience for the buyers and the company will eventually lose its market share in such a scenario. The achievement of transformation and technological implementation targets in an effective and efficient manner is also a significant strategic challenge for Tesco. The continued development and enhancement of buyer trust, brandreputation and good will along with the creation of effective strategies for tackling increasing competition in the sector are some fundamental strategic challenges for Tesco management. Similarly, the failure to utilize the dynamic technological trends, failure to protect sensitive customer data and information gathered through its mobile applications, and failure to attract and facilitate the right people are other substantial strategic challenges for the business. (Tesco Plc, 2018)

 

Recommendations

 

  • The managerial leadership at Tesco should focus on the creation effective and attractive customer propositions should enable the company to attract more buyers to its stores.
  • Market research should be carried out in order to develop customer segments and understand the needs and wants of the buyers in a better way.
  • Proper transformation objectives and monitoring mechanisms should be established in order to ensure that the company is able to attain its business goals.
  • The management of Tesco should develop a mechanism to closely observe the various factors that affect and influence the purchase decisions of the buyers.
  • Tesco should look to utilize cloud computing and blockchain technologies in order to protect and safeguard important customer information from cyberattacks and data loss.
  • Talent development programs and other initiatives should be established in order to foster a sense of ownership in the employees.

 

References

Ahlert, D., Olbrich, R., Kenning, P., Schroeder, H., Huang, Y., Huddleston, P., 2009. Retailer premium own‐brands: creating customer loyalty through own‐brand products advantage. Int. J. Retail Distrib. Manag.

BBC, 2019. Tesco faces Brexit deadline headache. BBC News.

Christie, S., 2017. Tesco slashes prices on hundreds of fruit and veg products. The Sun.

Damron, T., Rupp, W.T., Smith, A.D., 2016. Inventory control in the retail sector: case studies of best business practices. Int. J. Procure. Manag. 9, 354–371.

Deloitte UK, 2020. Retail Trends 2020 | Deloitte UK [WWW Document]. Deloitte U. K. URL https://www2.deloitte.com/uk/en/pages/consumer-business/articles/retail-trends.html (accessed 1.29.20).

Hill, C.W., Jones, G.R., Schilling, M.A., 2014. Strategic management: theory: an integrated approach. Cengage Learning.

King, M., 2020. Go green and make money with this energy-efficiency investment trust. MoneyWeek.

Kukreja, G., Gupta, S., 2012. Tesco Accounting Misstatements: Myopic Ideologies Overshadowing Larger Organisational Interests. Wall Str. J.

Ma, Y., Ding, J., Hong, W., 2010. Delivering customer value based on service process: The example of Tesco. com. Int. Bus. Res. 3, 131.

Mintel, 2019. UK Online Retailing Market Report (Updated 2019) | Mintel.com [WWW Document]. URL https://store.mintel.com/uk-online-retailing-market-report (accessed 1.29.20).

Munusamy, J., Wong, C.H., 2008. Relationship between marketing mix strategy and consumer motive: an empirical study in major Tesco stores. Unitar E-J. 4, 41–56.

Palmer, M., 2005. Retail multinational learning: a case study of Tesco. Int. J. Retail Distrib. Manag.

PwC, 2019. Retail outlook: 2019 retail predictions [WWW Document]. PwC. URL https://www.pwc.co.uk/industries/retail-consumer/insights/retail-outlook.html (accessed 1.29.20).

Ramaswamy, V., Ozcan, K., 2016. Brand value co-creation in a digitalized world: An integrative framework and research implications. Int. J. Res. Mark. 33, 93–106.

Reuters, 2020. Tesco PLC Profile [WWW Document]. URL https://www.reuters.comundefined (accessed 1.23.20).

Statista, 2020. Tesco Profile.

Statista, 2019. Retailing: market value in the UK 2015-2020 [WWW Document]. Statista. URL https://www.statista.com/statistics/491377/retailing-united-kingdom-uk-market-value/ (accessed 1.29.20).

Tesco, 2020. About Us [WWW Document]. Tesco PLC. URL /about/ (accessed 1.23.20).

Tesco Plc, 2018. Tesco Strategic Report.

Zhao, S., 2014. Analyzing and Evaluating Critically Tesco’s Current Operations Management. J Mgmt Sustain. 4, 184.

 

Appendix 1

Company Overview

            Tesco is one of the biggest retail chains in the world. It was founded in 1919 by Jack Cohen as stall that sold surplus groceries. Today, Tesco is the largest retail chain in the United Kingdom operating with a network of over 3400 stores all over the country and 300,000 employees amongst its ranks(Tesco, 2020). The company has approximately 7000 stores all over the world. It commands the sector with a market share of 26.4 percent followed by Sainsbury, ASDA, Morrisons, and Aldi who have a market share of 15.4%, 14.9%, 10.1%, and 8.1% respectively. The company has diversified its operations from just being a retail chain and is also engaged in retail banking and insurance practices as well. The business of the company can be categorized into three major segments. The domestic segment includes the local markets in the UK and Republic of Ireland. The international segment includes foreign operations located in Thailand, Malaysia, Czech Republic, India, Poland, Slovakia, and Hungary. The third segment is the Tesco Bank that comprises of the insurance and retail banking services under the Tesco brand name.

The primary business of the company is selling food and food related products and services. Tesco also offers two food brands of its own in the UK marketapart from other food products and brands. These two brands are Finest and Exclusively at Tesco. The company also offers two non-food brands to its customers in F&F clothing and Fox & Ivy. Other than food and clothing, Tesco is also engaged in providing different banking and financial services to its customers including credit cards, personal loans, club cards, and mobile services(Reuters, 2020).

 

Appendix 2

The political uncertainty, changing regimes and regulations, constantly changing customer purchase attitudes and behaviors, the evolution of technology, and the calls for eco friendly business practices constitute the major threats for the companies operating in the retail industry in the country. Apart from these challenges, customers continue to expect “unique experiences, both in store and online. Whether that be through curated marketplaces, connected spaces or digital journeys, customers are wanting to have an emotional connection to their shopping experience”(Deloitte UK, 2020). The incorporation and utilization of innovative technological developments and advancements into the business practices has become significant for any company to sustain and expand its operations as the customers are expected to rely heavily on internet and mobile based shopping platforms in the coming years.

“With social media and smartphones feeding the demand for instant gratification the retail industry has seen a shift in shopping habits. Rather than spending their money in bricks and mortar shops, consumers are now shopping online with ‘clicks’.This, in part, has caused physical stores to struggle. Shoppers are making fewer visits to the high street meaning that stores have seen a huge decline in footfall as customers increasingly choose to shop online. A decline in physical sales has inevitably led to store closures, creating more empty shops than ever before – making the high street even more unappealing.”(Mintel, 2019)

“Brexit has started to affect how much people spend and on what —varying significantly by region and demographic group.  27% of consumers say they’ve already changed their spending because of Brexit, and 13% say they will do so in the coming months.” (PwC, 2019)

Similarly, the increased global awareness regarding the environmental and climate conditions all over the world has become an area of major concern for the retailers in the country. The retail industry continues to be at the forefront of the global carbon emission. The retail companies are under increased pressure to adapt their business practices and operations in order to comply with the changing global environment. “The retail manufacturing industry is one of the most polluting industries on the planet and an increasing awareness of environmental issues, and the retail industry’s contribution to these concerns, has created more conscious consumers. Customers are increasingly asking if products have been responsibly sourced, if they’re Fairtrade and if they can be recycled before they shop. Sustainability is important to young consumers and moving forward fashion retailers will need to take responsibility for the waste they produce”(PwC, 2019). While such a paradigm shift poses a massive challenge for the Tesco management, it is also a great opportunity for not only enhancing the loyalty of existing customers, but to also attract new buyers to its stores.

 

Appendix 3

 

Market Competition

The retail market in the UK is characterized by intense competition. The market is dominated by major retail chains like Tesco, Sainsbury, ASDA, and Morrisons. These companies intensively compete with each other on prices and promotions in a bid to attract buyers to their stores and outlets. Tesco is the market leader in the retail sector with a reported market share of 26.4% but it continues to face extreme competition from Sainsbury, ASDA, and Morrisons (Statista, 2020).

Power of Customers

Most of the products at offer in Tesco stores are materials of regular use and consumption for the buyers. These products do not have high differentiation and comprise of low switching costs. The buyers can easily switch from one brand to the other while making the purchase. Retail companies focus on keeping the prices low in an attempt to attract customers to their stores. The bargaining power of customers is therefore high (Munusamy and Wong, 2008).

 Power of Suppliers

Tesco is one of the biggest retail chains in the country and, therefore, is an important client for the suppliers. They are not in a position to significantly change their prices and dictate terms to Tesco as the retail giant can easily enlist other suppliers for its business. The suppliers also have to comply to certain quality standards set by Tesco so that the quality of the products offered at its stores is maintained. Hence, the bargaining power of suppliers for Tesco is low.

Threat of Substitutes

The threat of substitutes is relatively low as there are not many substitutes for the food products offered at Tesco. The substitutes primarily comprise of organic products and those offered by small convenience stores. Since Tesco offers low pricing on such products, the convenience stores and organic shops cannot compete effectively with Tesco. The threat of substitutes for non-food products is relatively higher as customers can easily switch between different brands offering less differentiated products (Ma et al., 2010).

Threat of New Entrants

Entering into the retail sector requires a substantial amount of investment. Similarly, any new entrant would also need a significant amount of time in order establish its brand name and achieve economies of scale for competing effectively with retail giants like Tesco. The new entrants have to offer products at exceptionally lower prices or with high differentiation in order to capture the attention of buyers. Therefore, the threat of new entrants in the sector is low (Hill et al., 2014).

 

Appendix 4

 

Strengths

 

·         Tesco occupies the largest market share in the retail sector of the country.

·         A strong and efficient procurement system enables it to pursue a low pricing strategy.

·         The Tesco shopping experience is built on high quality and low pricing.

·         Diversified operations including insurance and retail banking.

·         Wide network of stores and outlets allow superior customer reach.

·         Biggest private sector employer in the country.

·         Leading user of technology and innovation in its business practices and operations.

·         Established network of retail operations in other European and Asian countries.

·         Established private label brands allow for higher diversification and customer loyalty.

·         Tesco Club Cards are an effective source of collecting insightful customer purchase data.

 

  

Weaknesses

 

·         Tesco still relies heavily on the domestic UK market despite diversifying and expanding operations.

·         The accounting scandal has severe implications on brand reputation and company image.

·         Weak presence in emerging markets of the world as compared to competition.

·         Failure of operations in the United States and Japan resulted in heavy losses.

·         Lack of measures taken for climate change and eco friendly business practices.

·         Club card system has attracted criticism and scrutiny for data protection.

 
 

Opportunities

 

·         Capitalize on changing retail trends and purchase behaviors by drafting effective business strategies.

·         Targeting new generations for market expansion and sales growth.

·         Developing effective and efficient shopping platforms to capture the online retail shopping share.

·         Incorporating innovation automation and intelligence technologies to facilitate customer interaction and improve value chain activities.

·         Expanding business operations in emerging markets to diversify operations.

·         Increasing business operations in the insurance and financial services sector.

·         Developing quality non-food private label retail brands to enhance customer loyalty.

 

  

Threats

 

·         The uncertainty and confusion posed by the impending departure of UK from the European Union.

·         Constantly fluctuating exchange rates and changing business regulations in different markets.

·         Increased competition and rivalry in the UK market between major retailers.

·         Failure to effectively adapt to changing customer preferences and attitudes.

·         Failure to incorporate technological advancements into business operations.

·         Failure to maintain and improve the competitive advantages that enabled the company to become the leading player in the retail sector.

·         Failure to develop carbon emissions and climate change practices.

 

7Ps Analysis

  • Product

Tesco operates in the retail market offering a wide range of products and services for its buyers. The products available at Tesco stores and outlets include food, electronics, clothing, cosmetics, non-food products, and financial services. Tesco has also diversified its operations in order to provide different insurance and retail banking facilities and services to its customers. The Tesco stores offer many high quality brands in almost every category at affordable pricing. The company also offers its own brands under the name of F&F Clothing and Fox & Ivy, which are non-food brands, and Finest and Exclusively at Tesco as its private label food brands. (Tesco, 2020)

 

  • Price

The primary strategy of Tesco when it comes to pricing can be categorized as a cost leadership business strategy. The company aims to provide high quality products and services to its customers at lower and affordable prices. The low pricing is one of the major drivers of Tesco’s growth over the years and has enabled to company to establish a loyal customer base for itself. The cost leadership strategy has allowed Tesco to accumulate the largest market share of the retail sector in the country and gain a competitive advantage against the intense competition in the industry. Tesco actively engages with its suppliers in order to bring down the cost of production so that the benefit can be translated to its pricing. (Christie, 2017)

 

  • Place

Tesco maintains both physical and online presence in the marketplace. The company operates with a network of over 3400 physical retail outlets spanned all over the country. The wide spread store network helps the company in expanding its reach to customers located in geographically dispersed regions and localities in an effective and efficient manner. These stores and retail outlets can be divided into six major categories such as Tesco Superstore, Tesco Homeplus, Tesco Extra, Tesco Express, Tesco Compact, and Tesco Metro. The internet and mobile based retail platforms of the company are known as Tesco Direct. The online and physical retail stores help the company in facilitating its buyers effectively and maintain its market position.(Tesco Plc, 2018)

 

 

 

  • Promotion

Tesco is one of the oldest and most reliable retail operations in the United Kingdom. The company has established a strong brand name and reputation for itself over the years. The strong brand name helps the company against its competitors as the customers have become loyal to the products and services offered by Tesco as compared to the competition. It also helps the management to engage in various promotional and marketing activities through the utilization of different advertising channels and mediums. Similarly, the development of Tesco Loyalty Cards and Tesco Club Cards are other promotional features introduced by the company for its customers. (Tesco Plc, 2018)

 

  • Processes

The processes at Tesco stores can be categorized into two primary types on the basis of the functionality of the retail stores and platforms. The physical retail stores allow the customers to review and analyze the products on offer themselves. The company is committed to providing a complete and fulfilling shopping experience to the customers through its retail stores and supermarkets. The online shopping platforms and the mobile applications are the other significant processes and experiences that the customer go through while making a purchase. Tesco is the leading incorporator of technology into business operations in the retail industry of the country. (Zhao, 2014)

 

  • People

Tesco is the biggest private sector employer in the retail industry of the United Kingdom. The company has over 460,000 individuals on its books that play an important role in making Tesco the leading retail chain in the country. The development of effective hiring and training policies and programs at Tesco has enabled the company to develop a highly skilled and competent workforce that has put Tesco head and shoulders above the competition. (Tesco, 2020)

 

 

  • Physical Evidence

The physical evidence of the marketing mix gauges the effectiveness of the different tangible assets and representations that are associated with the company. The Tesco stores and outlets are designed in a manner such that the customers feel at ease while shopping and making purchase decisions. The outlets of the company are open and the buyers can easily navigate and find the products that they want to purchase. Similarly, the logo design is also effective and vibrant and distinguishes Tesco from the competition efficiently. The website and other digital platforms also provide and effective and easy online shopping experience. (Tesco Plc, 2018)

 

 

 

 

 

Strategic Management Costco

Pages:4

Strategic management is a critical component that decided how a company should compete in the industry. It explains the basic framework of the company’s perception and core competencies. Through strategic management, practical strategies that help to generate revenue and sales of the company are implemented (Boström & Karlsson, 2013). The consumer trends are variable, and this transition is attributable to prevailed strategies and preferences. Costco cooperation is an expanded business, founded in 1983, has many warehouses, and has core fame due to this concept. This paper is about the strategic management of Costco, and it will focus on the Vertical Integration strategy. The innovative approach is suitable for any management firm when it comes to performing smart.

Verticalization and its Significance

Due to the changed social atmosphere, the key to growth is alternating managerial approaches. A strategy for a firm is mere like a centric approach that helps determine the successive path. All the companies need sustainability, and they implement a plan that can help them thrive in the competitive industry. The role of sustainability is different for value-based companies. To follow and focus on consumer trends, vertical integration is quite significant. The way to innovation and adoption of digital tools is strengthened by implementing new and better strategies. The world of hyper-competitiveness need structures that help them stay ahead of the competition (Edmonds, 2017). Vertical integration is about two or more production of stages that are opted by two companies. It tended to focus on the quality control format with better economies of scales and a declined level of cost. This strategy works for the high competition to acquire a high market share, even in the situation when barriers to entry are high. Costco Company is experiencing a fast-growing culture and progress. The working of the company as a big retail corporation is aligned with consumer purchasing power. The perception of consumers is beneficial to stay in the competitive market.

Due to the maintenance of competitive advantage, Costco is ensuring long term viability. Currently, the company is working on expanding its growth on the basis of the quality of affordable goods and services. The mission of the company is to bring forth quality products with a specific selling point — the integral component of quality matters due to the presence of many firms. Offering a low price is specific for the company, and it acts as a significant selling point. The Costco warehouses are always available for the consumers because its strategic objective is to follow growth on the basis of its competitive strength. Due to the intent of sustenance and long term market positioning, it is bringing customers’ value. The financial objectives of Costco are to attain high profitability in the market that can help a company survive through its revenues.

The vertical integration strategy by Costco is adopted to achieve market excellence. The company is operating at low margins to provide ease of access to its consumers. The company, as a retail store, tends to face many problems, such as supply chain management. Its focus is to provide goods worldwide customers with mastery to manage supply chain practices. Any main attributes for a large supply chain company are time and costs (Gudlaugsson, 2018). Time is all about effective delivery to shelves from the store. Late delivery creates issues for customers so that shortages can affect the business process. Cost is maintained by not passing it to consumer goods always.

There are infinite possibilities in vertical integration that can help manage the supply chain effectively. Costco can apply vertical integration strategy as an innovation to run its business model without any difficulty or disruption. The vertically integrated model of business provides the basis of taking control of the supply chain full or partial. Costco is a wholesale multinational firm that needs an effective supply chain to manage small businesses and to fulfill significant family needs. The vertical integration model will control supply chain practices with active participation. It involves suppliers’ investment and any form of business. Through vertical integration, Costco can set up a separate production facility. Its annual revenue is US138.4 bn with card holder of all category 94.3 million.

The vertical integration as a new business model in Costco will not necessarily be successful, but some factors can increase the success ratio. In the US, three companies, i.e., Pilgrim’s Pride, Tyson, and Perdue, are famous for poultry. Costco is operating at low margins, so it is not able to offer Rotisserie chicken at $5 due to competition, so the vertical integration model will allow the company to set up its processing center for poultry. It will open a chicken farming operation in Nebraska that will offer the company to engage customers with 100 million chickens (Yang, 2017).

The vertically integrated business model can be successful for Costco because its financials are very strong, i.e., annual membership fees $3.14 billion and 2.27% made net sales in 2018. It is also a lean company on overheads, so pallets are filled up with products followed by bulk packaging. It is found out that annual sales of Rotisserie chicken are the US $300 million, with the estimated project cost the US $275 million. This estimate provides a fundamental tendency to get market share, and this model can be a game-changer for the industry.

Engaging in different joint ventures is not new for Costco. It is operating with enterprises since after its establishment. It has maintained hot dog and soda deal priced at the US $1.50 since the company is engaged in hot dog products at a meat plant in California. In addition to this, the Nebraska poultry plant will manage supply chain disruption by creating economies of scale. Costco, with the help of vertical integration, can affectively build up business conditions and make farmer unions. It will also jack up project outlay as well as operational costs. The partial vertical integration strategy in Costco will help develop their business further with the incorporated distribution system. It also has cross-docking distribution centers. This kind of system allows for the stability in value chains (Zhou & Wan, 2016). The cross-docking system undertakes pre-assigned inventory to the destination. The center activities are only shipping and sorting. Costco is using the sophisticated infrastructure of IT, and it has eliminated expensive functions.

Moreover, Costco has also used a backward integration method with the Kirkland brand. The strategy of Costco about vertical integration is likely to be successful because it is working to protect the famous product line by highlighting the risk of exposure. The company is strongly performing in the retail climate, with an inherent focus on in-housing sourcing, enhancing member value, and driving costs down.

References

Boström, M., & Karlsson, M. (2013). Responsible Procurement, Complex Product Chains and the Integration of Vertical and Horizontal Governance. Environmental Policy And Governance, 23(6), 381-394. doi: 10.1002/eet.1626

Edmonds, C. (2017). Can Costco Reign in Spain?. SSRN Electronic Journal. doi: 10.2139/ssrn.2934940

Gudlaugsson, T. (2018). THE IMAGE OF COSTCO IN ICELAND AND ITS IMPACT ON THE GROCERY STORE MARKET. Journal Of Academy Of Business And Economics, 18(3), 93-103. doi: 10.18374/jabe-18-3.10

Yang, C. (2017). Could Vertical Integration Increase Innovation?. SSRN Electronic Journal. doi: 10.2139/ssrn.2930780

Zhou, Y., & Wan, X. (2016). Product variety and vertical integration. Strategic Management Journal, 38(5), 1134-1150. doi: 10.1002/smj.2540

 

Alhmabra Palace

Pages:17

Abstract

Biophilic architecture happens to be a holistic approach to utilizing the best nature-based systems, and the current applications of biophilia include landscape urbanism, green city movement, and ecological infrastructure which happens to be one of the best applications. Throughout history, biophilicdeisgn was used to designate an image of opulence, grandeur and power. The Alhambra is the most prominent example of howbiophilic design was used as a representation of power by the rulers of the Alhambra. Alhambra palatine is the most admired as well as famous examples of Islamic heritage and architecture in Europe. However, in the 21st century, Biophilic design is more than just a technical format for aesthetics. The biophilic framework is now considerd as an advanced methodology for sustainability for the built environment. Sustainability is bound to be an elusive target until states can shift the entire focus on building a fulfilling relationship between humans and their natural environment

Introduction

Location

Alhambra Palace is located at a strategic point within the city, offering views over the entire meadow and the city, which have aided the rulers inhabiting the castle to gain a vantage point (EggletonL. , 2012). The fortress is surrounded by irregular ramparts, with its eastern side facing the Cuesta del Rey Chico and its southern side facing the valley of al-Sabika (Rabbat, 1985). The palatine fortress, the Alhambra, is a palace perched upon Sabika hill located in the city of Granada.

There are three main areas of the Alhambra, Medina, the Generalife, and the Citadel. The citadel area is for protecting the site and the medina is an area which provides accommodation for the administrative staff as well as the artisans. The Generalife is the summer palace which consists of pavilions, colonnades, and gardens. Analysis of the Palace indicates that there is a spatial order underlying the design patterns. This is a quality closely associated with Medieval Islamic Art.

History

Alhambra palace was initiated by Muhammad 1 in 1232 who was the very first sultan in the Nasrid dynasty. The majority of the construction of the palace took place from thirteenth to the fourteenth century and was completed at the end of the reign of Muhammed V, Sultan of Granada from 1353 to 1391 and reflects the architectural style at the end of the Nasrid dynasty (Willmert, 2018). The well-preserved fortress complex became archetypal to the “Moorish” architecture of the Western scholars at the end of the Nasrid rule (Irwin, 2004). The architectural style, common at that time, was a mixture of exuberant Moorish and Christian influences which has been known as the Nasrid style (Eggleton E. , 2011). Despite many subsequent alterations, specifically under the many Catholic monarchs, the castle remains symbolic both as a war trophy of the “Reconquista” and as a symbol of the long-lost golden era of the al-Andalus(Eggleton L. , 2012).

The fortress owes as much to its modern-day location in Spain as it does to the European travelers of the eighteenth century who had a huge part to play in its “rediscovery”. After the conquest of Spain by the Catholic Monarchs in 1492 the Alhambra underwent changes in its design. The Palace of Charles V, a Renaissance building commenced by the Emperor in 1526 is located on the hill of Assabica inside the Alhambra fortress. The projected Palace is a specimen of Spanish architecture, designed by Pedro Machuca, and has been characterized by Washington Irving as “an arrogant intrusion” (Calvert, 1904). Charles V installed his royal emblem on every surface and the square plan encloses a two-story circular courtyard. Doric order pilasters and rustication is articulated on the façade on the first story of the Palace (Eggleton, 2012).

There are distinct parallels between the Moorish design and that of the Renaissance, broadly speaking, the formal design of the Palace expresses a Roman and Renaissance style architecture which does not have the incorporation of landscapes or natural elements. Charles V has often been criticized for introducing the incompatible architectural element of the renaissance art within the existing Moorish design of the Alhambra (Abdelaal, 2018). Historians point out towards the tenacity of the rulers who, during a time when political negotiations were intense and warfare an ex veto, managed to produce some of the most phenomenal architectural buildings and sophisticated poetry within the region. The surge of culture within the Nasrid rule managed to leave its impact on the walls of the palace (Barker, 2016).

Style of the Alhmabra Palace

The Alhambra is a medieval Islamic monument in Granada Spain (figure4) that has been in existence for an extended period. The style of the palace was meant for religious rulers and persons belonging to the affluent class. The situation is evident through multiple structural designs and artefacts that were common with rich people such as rulers. In 1894, UNESCO declared the monument as a world heritage site, which is open for the public. People visit the site to observe and learn about its history and design.

The city hosts a rich architectural and cultural history that has continuously changed to modern times. Eggleton (2011, 9) claims that the city qualifies to be a monument as it houses different histories and practices of people who occupied it during the early Christian and Islamic rules. The monument’s structural and architectural designs (figure 5) have a natural feeling that has been re-envisioned multiple times by its occupants to modern-day. Built on a hill, the feature observes a biophilic style, which is evident in its architectural designs. For example, it has gardens, water pools, fountains, and mimics of natural light in most of its palaces.

The Alhambra complex has two describable entities remaining today, the Court of the Lions and the Court of the Myrtles. Court of the Lions was built in the reign of Muhammad V during the time of 1354 to 1359 and has been paralleled with the Villa Rustica. The architectural style common at that time was a mixture of exuberant Moorish and Christian influences which has been known as the Nasrid style (Eggleton E. , 2011). A pavilion project into the courtyard and the light domed roof has filigree walls. The oblong court is thirty-five meters in length and twenty meters in width with white marble colonnade and colored tiles.

The Court is situated at the heart of the Palace, and the main living units surround the court and turn outside while receiving the sun, view, and light from the garden of the courtyard. When one moves through the space, physical involvement with water is induced due to the integration of small water channels and fountains which engage the human body with an element of water. The main technique for the decoration of the walls of the courtyards in the Palace is created through the dado tiling used to cover the bottom and upper part of the wall in the Court of the Golden Room. The stucco art which is covering the muqarnas in the Court of the Lions has different colours such as gold, green, blue, white and red. There is a consistency of the natural elements and themes in historic architecture which points towards the fact that biophilic design is a phenomenon contributing towards codification of history, neural sciences, and human intuition. This shows that contact with natural elements and nature itself is essential for a vibrant existence specifically for those living in urban areas (Jorge, 2018). The natural colour tones create a material connection with nature and reflect the local geology to create a sense of the place (al-Rhodesly, 2018).

The surface of the pool in the Court of the Myrtles serves the function of a mirror, reflecting the biophilic design in the architecture itself. This creates an admirable visual effect. There isarabesqueornamentationofthedifferentvarietyfoundwithinAlhambra.Theseincludegeometric starsandroseswhichrun intoeachotheranddevelopthedesign.Thebestexampleofbiomorphic designpatternsistheornamentalepigraphswhichareinterwoveninthesurfacedecorationsinthe porticos of the Court of the Myrtles because the ornamentalepigraph patterns are reminiscent of nature thus projecting the design element of naturally occurring shapes in nature  (al-Rhodesly, 2018).

Biophilic Design

The term ‘Biophilia’ was first coined by a professor at Yale University who defined the biophilic design as being affiliated with the inherent need of human beings to associate with natural designs within the built environment. Thus the goal of the biophilic design is that an environment is created which consists of elements that promote well-being and contact between human beings and nature. Over the years, architects, have published different works which include a unique form of approaches for realizing the transition of biophilic design from theory to application in building design. Biophilic design happens to be a holistic approach which utilizes the engineering principles, design cues, and nature-based systems to support well-being improved health and performance which can be measured through self-rated biometrics, personal mood as well as work quality.

Since the beginning, the hunting and gathering societies shared what humans today have, the need to connect with nature for obtaining necessities and for gaining mental peace. While analysing the existing literature one stumbles upon the idea that biophilia developed and has its origins within the understanding of the evolution of human beings (Söderlund, 2015). Human species developed biologically in adaptive response to the natural surroundings and not the artificially created forces. Thus, the human mind and body evolved with the bio-centric approach and not through technological advancement (Gullikson, 2010). The main hurdle which humans today have to experience between themselves and nature is the paradigm of development and design of the structures and artificially built environment (Söderlund, 2015). The biophilic design thus addresses not only the problems and deficiencies in modern landscape practice and building but also provides a new method for creating a positive experience for humans with nature (Kellert, 2018).

The term Biophilia has its roots in Greek literature means “love of life”. The Biophilia Hypothesis proposed by Wilson indicated that there is a need within people to connect with the complex geometrical forms in their surroundings just like they require air and nutrients (Price, 2018). Thus, sprang the Biophilic architecture, giving innovation to way architectural spaces are used and paved the way for the dialogue between the need for humans to connect with nature and the patterns as well as natural forms. There are geometrical features such as the scale-invariance and fractals which provide a notion of self-similarity as well as symmetry for people to indirectly connect with natural elements (Ramzy, 2015).

Principles of biophilic design can be seen in the architecture of the Islamic era, in cities such as Damascus, Aleppo, Bagdad, and Cairo. Pointed out that in contrast to the building being viewed as a sculptural element, the traditional madrasa has characteristics of well-arranged interior spaces and exterior patterns that are integrated harmoniously in an interplay with natural elements (Abdelaal, 2018). Moreover, themes connected with natural elements can be found in historical architecture such as that of the Egyptian sphinx with stylized animals, and that of the acanthus leaves on the Greek temples. Thus, this representation of elements and plants as ornamentation represents the tendency and need of human beings to connect with nature (Kellert S. R., 2012).

There is a consistency of the natural elements and themes in historic architecture which points towards the fact that biophilic design is a phenomenon which has contributed towards codification of history, neural sciences, and human intuition. This shows that contact with natural elements and nature itself is essential for a vibrant existence specifically for those living in urban areas (Ancona, 2017 ).

 

The Alhambra and the Biophilic Design

There is a consistency of the natural elements and themes in historic architecture which points towards the fact that biophilic design is a phenomenon which has contributed towards codification of history, neural sciences, and human intuition. This shows that contact with natural elements and nature itself is essential for a vibrant existence specifically for those living in urban areas. The Alhambra Palace is the perfect example of the historic structure with the biophilic design because the architecture has beauty and functionality which connects people with natural elements. The Alhambra palatine is the most admired as well as famous examples of Islamic heritage and architecture in Europe.  The biophilic design was achieved in the Alhambra palace through the architectural magnificence of the Generalife Palace, which is framed with a panoramic view of different landscapes that extend to different horizons.

Biophilic Design Patterns present in the architecture of Alhambra

Browning allocates the biophilic design into three main categories, the Natural Analogues, The Nature of the Space, and the Nature in the Space (Downton, 2017). There is a visual connection with nature in the design of the Alhambra palace, specifically in the Generalife Palace in which the panoramic views of the landscape is extended out to cover the horizon. The terraces, garden pavilion, and flowers, shrubs as well as plants cover the spaces (Browning, 2014).

Nature in the Space: Visual Connection with Nature

The visual connection creates a stimulating as well as calming experience for the viewers. This pattern is rooted in the idea of biodiversity as researchers claim that having visual access to various ecosystems and biodiversity is beneficial for the health of individuals. Kahn is of the view that viewing environmental elements in an office surrounding reduces the stress level (Ryan, 2014). The Alhambra observed visual connections with nature evident in the Generalife Palace. According to Amoeda et al. (2018, 376), the palace has panoramic views of the natural environment spanning to the horizon. The palace’s gardens are filled with flowers and shrubs, while plants cover its pathways as evident in (figure 6). The oblong pools are fitted with fountains and surrounded by shrubs, as evident in (figure 7) below.

Moreover, the Patio de la Acequia (The Court of the Water Channel (figure 8) and the Patio de la Sultan have are “magnificent” courtyards that enhance the palace’s biophilic design. Amoeda et al. (2018, 376) claim that visual connections with nature enhance positive emotions, reduce stress, and improve recovery rates and concentration. The presence of plants, shrubs, and flowers in the Generalife Palace made it possible for its architects to incorporate direct experience with nature into the Alhambra. The scenery may have served to reduce stress and increase mental engagement among dwellers of the palace.

Direct experience of nature

Direct experience of nature includes the actual contact with natural phenomena such as water, animals, plants, light, natural landscape, and weather. Indirect engagement comprises of natural colour, evoking nature, simulations of natural air and light, and images of nature (Kellert & Calabrese 2015, 11). Notably, people use colour to locate water, food, and other primary resources, making it an essential natural element. The use of natural colours in built environment consists of the utilization of pigments that consider earth tones such as rocks, soil, rainbow, sunset, animals, sunrise, and plants (Downtown, 2017). An evocation of nature includes the use of representations that do not occur literally in the environment but imply specific natural principles. A building can have shapes that evoke specific animal qualities. For instance, the Sydney Opera House has wings that imply the qualities of a bird.

 

Non-Visual Connection with Nature

This pattern involves auditory as well as olfactory sense simulation through sound patterns and the main objective is to provide environmental elements using scent, touch, and taste to some extent. The main design considerations include prioritizing natural sounds over the artificial urban sounds. The best example of Non-Visual Connection with Nature is that of Calat Alhambra in which these fourteen patterns can be seen.

The architecture of the Alhambra supports the nonvisual experience through the connection of indoor as well as outdoor spaces between natural landscape and buildings. There are solar heat penetrates, sounds of nature and myrtles along with fragrant plants within the palace which create the exquisite stimulation for senses. The non-rhythmic sensory stimuli is present in order to circulate the natural sensory stimuli and to attract the attention of the viewers by relieving their psychological stress.

Thermal & Airflow Variability

There is thermal as well as airflow variability within the palace which makes the spaces in the fortress invigorating, refreshing and alive. The Hall of Comares is the best example of the “Venturi effect” in which air is circulated rapidly throughout the space creating cross ventilation. The Alhambra observed direct contact with nature through the creation of thermal and airflow variability. According to Amoeda et al. (2018, 376), thermal and airflow variabilities are changes in airflow, relative humidity, and air and surface temperatures that imitate the natural surroundings. The aura created by design generates a refreshing, alive, active, comfortable, and invigorating feeling. In the monument, the wall height provided a natural cooling against the intense sun rays. The situation created an indirect illumination at the higher parts, which spread to the lower parts of the interior. The design prevented the influx of heat in the rooms by manipulating direct sunlight while still achieving the required level of ventilation and illumination (Amoeda et al 2018, 377).

Additionally, ventilation in the rooms was achieved by structural placement of the windows that created a stack effect and venture effect. Structural placement of the windows refers to the accurate position of windows. For example, the variation in air pressure and density between the lighter warm air and heavier cold air created a stack effect in the Tower of the Captive and the Tower of the Princess. The Hall of Comaress (Figure 9,10) achieved natural ventilation by rapid air circulation in spaces where cross-ventilation creating a venturi effect. The air ventilation was necessary to enhance human comfort and productivity. According to Kellert & Calabrese (2015, 12), natural ventilation can be achieved by operable windows and or complex engineering strategies. Therefore, by engineering the windows to allow cross ventilation in the Alhambra (figure 11), its architects achieved a biophilic design that allowed the circulation of natural air into the interiors of the buildings.

Presence of Water

The presence of water created compelling as well as captivating presence. The best example is that of Alhambra pools as there is the presence of water in the Court of the Lions design and the Water Stairway which is one of the most breathtaking designs of the Generalife. The presence of water (figure 12) encouraged the connection of nature with the Alhambra’s design. Amoeda et al. (2018, 379) claim that water promotes the experience of a place through touching, hearing, and seeing. People develop a captivating and compelling feeling. The Alhambra has multiple watercourses comprising of canals, water stairs, bannisters, basins, and fountains created in different geometric forms. For example the Court of Myrtles has a reflective pool with pools that gurgle water, creating a calm relaxing, and quiet sound that generates a wonderful sense (Amoeda 2018, 379).

 

Dynamic & Diffuse Light

Dynamic light effect creates the experience of intrigue and drama within the viewers and buffers a sense of calm.

Connection with Natural Systems

These are the interactive designs such as the integrative educational curriculum, community gardens, horticulture designs in which the use of materials is that which engages the viewer. This form of connection with nature can be seen in the Alhambra palace as well in the ceilings of the Throne Room and in the roof of the Balcony of Dar Aisha.

Natural Analogues

Natural Analogues in the Alhambra

The natural analogs of the Biophilic design are the non-living, organic vocations of nature that are indirect. These include the colors, shapes, patterns as well as materials which manifest natural elements in the form of artwork. These biomorphic forms and patterns can be seen throughout Islamic ornaments which were used for decorative purposes and are present in the architectural decorations in the palace as well. There is arabesque ornamentation of the different variety found within Alhambra. These include geometric stars and roses which run into each other and develop the design. The best example of biomorphic design patterns in Alhambra is the Balcony of Dar Aisha which is considered as one of the most enchanting corners of the palace. Moreover, ornamental epigraphs are also present on the perforated screens and panels (al-Rhodesly, 2018).

Indirect Experiences with Nature

The Alhambra also achieved a biophilic design by incorporating natural analogues into its structural designs. The above elements are incorporated into structures designs creating a mimicry of the natural environment.

Biomorphic Forms & Patterns

The Alhambra has multiple biomorphic forms and patterns that enhance individuals’ connection with the cosmic world through imagination (Gonzalez 2003, 262). In relation to the Islamic decorative ornaments (figure16,17), the cosmic world is made up of three dimensions that include nature, the universe, and human beings. (Amoeda et al. 2018, 381). The Alhambra represents the cosmic beauty through epigraphic and geometric decorations throughout the palace. According to Amoeda et al. (2018, 382), natural geometries are evident through geometric flower decorations and patterns that fill the walls of the monument. For instance, the Balcony of Dar Aisha (figure 18) presents one of the most spectacular epigraphic compositions and spectacular decorations. In this case, walls are filled with geometric representations of flowers, star wheels, and puzzles.

On the other hand, the epigraphs are interwoven with other surfaces(figure19), making the Alhambra rich in information. According to Kellert and Calabrese (2015, 12), people develop a positive feeling towards diverse and information-rich environments. For example, tourists are fascinated by reading ancient writings on monument walls provided they are legible and comprehensible (Garcia, 2017). The epigraphs in most of the Alhambra’s walls are placed above the tile decorations on the lower part of the walls, which make them more visible for visitors. Today, most of the structures have been renovated after abandonment for a considerable period since the 1700s. The palace has been termed as a world heritage monument by the United Nations Educational, Scientific, and Cultural Organization (UNESCO).

Biophilic Design Throughout History

The sense of attachment of human beings with their built landscapes happens to be the promise of biophilic design and the distortion of an individual’s values with that of nature in the digital age has only occurred because of conventional design. Furthermore, the distortion in the values also occurred because of the growing alienation and environmental degradation within the world. Thus sustainability is bound to remain a goal rather elusive until there is a shift in the ethical values with the natural world. Sustainability is bound to be an elusive target until we can shift the entire focus on building a fulfilling relationship between humans and their natural environment. This relationship is depicted in biophilic design, which can be seen in the Alhambra. Thus the successful application of the biophilic design relies solely on recognizing how one can remain productive, healthy, and maintain a meaningful connection with nature.

Angkor Wat present within Cambodia happens to be one of the largest religious monument which happens to be 162.6 hectares. The temple was built in the 12th century by Khmer King, and it was not dedicated to Vishnu which was the previous tradition but was rather the mausoleum for Khmer Empire. Angkor Wat uses the Khmer architecture and uses sandstone as the main building stone and has redented towers which have been shaped to look like lotus buds. The complexity and order pattern, which is a sensory element of the biophilic design that adheres to the special hierarchy matching that of natural surroundings (Hartley, 2014). The main design associated with complexity and order pattern, the fractal pattern can be identified in the vernacular as well as classical architecture from the column capitals of the art of Ancient Mayans, ancient Egypt, and Greece, the Hindu Temples, etc. The fractal pattern can also be seen in the Angkor Wat as there is high dimensional fractal artwork such as that of narrative scenes, extensive garlands, bas reliefs, decorative elements like pediments and devatas.

The madrasa and bimaristan design during the 11th century valued biophilic elements which can be seen in the Qubbat&-Bimaristan al-Sultan Qalawun of the 1283 A.D. In contradiction to the western conception of sculptural element of the biophilic design, the madrasa feature uses patterns that are well-arranged within the interior as well as exterior spaces that interplay as well as integrate the natural elements. The biophilic elements included within madrasa architecture includes water elements, daylight, clever manipulation, patterns, wood, and stone (Abdelaal, 2018). These features happen to be essential elements present within the biophilic architecture. The pattern, also known as the complex order happens to use a different form of strategies such as the scaling factor with the fractal geometries, hierarchical symmetry, bio-geometry, universal scaling, and connective symmetries. These patterns can be seen in the Muqarnas dome, which happens to be an Iranian architecture that can be seen in Erzurum Yakutia Madrasa that was built in 1310.

Biophelia in Modern Day

Biophilia started as a display of power and opulence as it was designed as not just a castle but like a mini city with the royal family being the center of attraction. The impressively large castle was constructed with a powerful exterior containing fortified structures that were meant to fend off attackers. The castle was built as a symbol of power and strengthened at a time when the Christian expansionism was at its peak in the 13th century as it threatened to overrun the Muslim rule in the state of al-Andalus.

Alhambra was not only considered as the priced jewel of the Granda but it was also the center of political power within the kingdom and Nasrid Palace was located at its core. The Alhambra Palace, during the Nasrid rule was meant to designate opulence as well as power. The palace was constructed to impress and it worked its charisma on most of the visitors from all over the world, particularly the Catholic Monarchs, Isabella and Ferdinand. Palace of Charles V within the Alhambra exudes majesty and power because of its impression of size, weight, symmetry and ornamentation which suggest authority and dignity. The opulent Moorish styled reception halls, royal quarters and reception halls part of the Nasrid Palace in the heart of Alhambra are a perfect blend of splendor and power. This is because the dazzling ornamentation of the columns and walls dazzles the eyes of the visitors. However, opulence alone is not sufficient to suffice for being the source of power (Eggleton E. , 2011). The other means through which the palace displays power include the disproportion and uncertainty of the layout of the Nasrid Palace communicates a sense of mystery regarding the ruler of the palace. Thus the visitors or the potential assassins will be disoriented by the narrow passages, blind alleys and rooms at odd angles.

Eggleton states that multiple generations of Christian monarchs chose to occupy the Alhambra palace demonstrates that it was considered as a site of immense power and opulence. This shows that the biophilic design implemented at Alhambra represents the ruler just like beauty, architecture, ornament, and the surrounding landscape represents power (Eggleton E. , 2011). However today, architects utilize technology to enhance people’s contact with nature. According to Lin, Egerer, &Ossola (2018), urban gardens provide urban dwellers with diverse animals, plants, and soils. The situation influences an in-depth comprehension of natural processes, such as pollination, climate processes, and pest control, which affect food production. The gardens also allow individuals to interact and engage in physical activity, reducing the risk of some lifestyle disorders such as obesity. Modern designs also infuse biophilic elements by creating plant walls, which enhance positive health among employees in urban places (Lin et al. 2018). For instance, the Pasona Group’s Office in Tokyo utilizes hydroponic technology to grow plants along the interiors and exteriors of its walls (figure 24,25).

Integration of shapes and patterns, such as water ripples, which mimic natural forms, have also gained popularity in giving building a wavy appearance. Glass walls and windows are used to incorporating space and light in most buildings. The materials allow buildings to utilize natural light as they reflect sun rays around spaces. For instance, Genzyme building in Cambridge incorporates natural light and space in its design. The above cases reveal that technology can be utilized to enhance biophilia as opposed to hindering its integration in the built environment.

Among the best practices architecture these days, there happens to be immense demand to reduce the number of carbon emissions which is a concern for developed countries where complex regulations, energy demand, and thermal studies have provided solutions for architectural designs. Thus developing countries these days are also opting towards architectural designs that lower the energy consumptions in buildings (Garcia, 2017).  For example, the thermal condition of the desert in UAE is reduced using high technology design walls that happen to be built by Norman Foster in the Masdar Institute in Abu Dhabi UAE. Biophilic design can also be observed in the ceramic coating overlaying the structure made up of concrete of the Sydney Opera House which has been created by JornUtzon.

Furthermore, the handmade bricks building system at Turpan, China happens to allow moisture release as well as natural cross ventilation because of the clay, dry vegetation and earth mixed together in the bricks (Garcia, 2017). Furthermore, a building in Rio de Janeiro, Brazil known as the GuilhermeWeinschenck happens to compensate for heat through local vegetation which is used for lowering the temperature as well as release the built-up of moisture through balancing the levels of humidity inside the building.  The Dockside Green community in Canada happens to be an example of biophilic design as it represents the non-rhythmic stimuli. The goal of the non-rhythmic sensory stimuli is to enforce the use of natural stimulus which can attract the attention and enhance the ability of the individual to connect with nature which can often be replenished from psychological and mental fatigue. The Dockside Green community design is responsible for rainwater management as well as habitat restoration which can lead to noises and buzz of insects, grass noise through swaying and noise of falling water as well as that of nearby animals that can be visible through windows, porches, and walkways.

Conclusion

The main objective of the biophilic design is to build an environment based on the positive natural aspect. The restorative environment design focuses on the relationship between humanity and nature within a world that is increasingly marred because of the psychological, social as well as environmental alienation. The sustainable designs tend to combine the efficiencies of biophilic design, which makes enhanced connections to complement nature with restorative environmental design. Implementation of Biophilic design at the Alhmabra represented grandeur, opulence, aesthetics and natural connection with nature. However,due to urbanization and development in modern times, this relationship has translated from a personal to a collective level (from houses / dwellings / palaces) to public parks through a transition of power and an increased densification of urban areas which would not allow for “wasted personal space”. Today, the construction industry utilizes technology to promote the design by the use of nature, space and light. Notably, further studies can be conducted to investigate how natural aspects can be integrated into building design from an early stage, where space and resources are limited to enhance human contact with nature. It is incumbent on architects to incorporate nature into the built environment to optimize its benefits in the future.

The aspects of biophilic design such as energy-saving concept, human health, enhancement of microclimates, and green building elements are in favor of making the biophilic design as sustainable. These aspects are now being implemented by states who wish to create sustainable environment and living.The energy-efficient concept in biophilic architecture asserts that passive biophilic design tends to have an elaborate system of insulations, which means that there is a low loss of energy and increased thermal comfort. The biophilic design embraces the green building elements that lower the damage on the ecosystem, whether it is the biophilic design within a city or a building.

 

 

 

 

 

 

 

 

National Culture of Switzerland

Pages:5

In Switzerland, the major culture of European countries prevails, though the main language of the region is Italian, French, and German, as well as the national language of Switzerland. The Swiss culture is diverse because it is reflected from multiple traditions. Large cultural diversity display a key role in shaping history. The famous cultural icons in Switzerland are Swiss cheese, Swiss chocolate, banking, watches, and cowbells (Arturo, A. B. 2018). Business, banking, and financial services in Switzerland are secure, yet fluctuations are seen due to regulations. Employees working in such an environment strictly focus and adhere to the regulations and confidentiality policies. National culture in Switzerland in the form of business acquire a decent form, soberness, and responsibility.  This paper will discuss how MNCs should behave and act while entering in Switzerland.

Companies working in Switzerland are versatile in implementing cultures related to French, German, and Italian parts of Switzerland. Top management is usually involved in the decision making process, yet employees feel and acquire responsibilities because it differs from one company to another. In Geneva, many international companies have American culture, and it can be seen that employees are more responsible, yet they are less hierarchic (HawkSEM, A. B. 2019). The culture of management in any organization works due to planning. The role of planning is integral; for instance, detailed planning is followed by tight schedule, so a laid back approach is prevalent in these companies. Long term planning is helpful in executing tasks with diligence.

The national culture of Switzerland prominently exposes business decorum. Meetings are embarked on orderly, impersonal, brisk, and task-oriented frameworks. Business meeting needs individuals to get ready before its start. Before starting a general discussion, Swiss tend to get right down, since non-verbal communication is integral in this culture. Organizational planning and procedures are important for the success of the business. Meetings are followed by the detailed agenda plans; discussions are aligned to aims while employees are expected to contribute with goal-laden approach (Piscitello, L. B. H. et L. 2014).   

If a multinational company starts business in Switzerland, it has to undergo main cultural aspects that prevailed in that particular atmosphere. Switzerland is a place where all the business companies have to focus on management culture. It is important for companies to prepare them before entering into a booming business center. The Swiss business culture is specific in terms of management and strong due to the skilled workforce. Switzerland is considered one of the successful economies of globe so executives of multinational companies (MNCs) consider some valuable factors crucial to develop their businesses. MNCs are the main engine of economy that tend to implement latest technology to improve its productivity. In Switzerland, these companies are increasingly following research and development practices for their newly introduced products. If a company is willing to work in Switzerland in near future, it is important to know key factors that matter most in that atmosphere. For example, how management works, what are the cultural issues and how much nonverbal communication helps?

MNCs should have to consider the responsibility of workforce, punctuality and nonverbal communication. They need to maintain dress standards, small talks, greetings and honorifics. In the professional settings, employees are not allowed to talk about their living situation, age, marital status, religion and personal lifestyle. Swiss managers fairly involve in their low key approach and do not display theatricality because all the managers have to be objective, reserved and level headed. Moreover, authority and respect are key factors that are associated with relevant knowledge. Technical qualification and experience highly matters for the management because a technically competent professional is likely to make collegiate decisions. A collective approach is required at senior management level because non-confrontational approach seen agreements in contacts. Leadership in business management is charismatic, dynamic and shaker so all MNCs trying to enter in Switzerland have to consider these steps.  

Product research is core for MNCs in Switzerland. The best suggestion for these newly entering companies is to incorporate research and development for their product. Switzerland is an inherent country with desirable atmosphere to enter, so it is attracting global companies due to geographical position. Per capita income in Switzerland is increased in past ten years so this increased level of output encourages new entrants to make a position. Research and development is related to transfer technological knowledge. It is advised newly entrant MNCs to focus on their product development by adding more to technology.

Innovation is a key to start development in business practices, also it is a shift from traditional competence model. In Switzerland, existing companies are more associated with adaption of technological assets. The modification in infrastructure and transformation of technological processes is carried out to make them more technology intensive and enter into scientific infrastructure. MNCs should consider latest innovation to incorporate it in their product development process, since it will contribute more revenue and growth of the company. People are equipped with technical knowledge in Switzerland so the growth parameters are assessed with the adoption of technology and implemented innovation in product development process. More research and product development practices will motivate buyers (Piscitello, L. B. H. et L. 2014). In addition, this will also help MNCs to beat existing intense competition and get knowledge seeking motivation. Research and development activities is also linked to knowledge transfer activities that sister companies do in a desirable location.

References

Arturo, A. B. (2018, August 16). The attractiveness of Switzerland as a location for businesses. Retrieved from https://www.imd.org/research-knowledge/articles/why-are-companies-setting-up-shop-in-the-most-expensive-country-in-the-world/

HawkSEM, A. B. (2019, February 12). Adapting to the Business Culture in Switzerland: IBS Tours. Retrieved from https://ibstours.com/blog/business-culture-in-switzerland/

Piscitello, L. B. H. et L. (2014). The impact of foreign R&D activities on the MNC’s performance at home: evidence from the case of Swiss manufacturing firms. European Journal of Economics.

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