be lecture 1.ppt

8/11/2019 BE LECTURE 1.ppt

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Organizations and their

Objectives

BUSINESS ENVIRONMENT LECTURE 1


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Classroom rules

NO late comers will be accepted in class.

Keep your phones in your bag and put in

silent/airplane mode.

Ask questions if you need to clarify or if youdont understand

All forms of cheating in the assignment willbe penalised.

100 per cent attention in class is desired


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What is an organization?

ARRANGEMENT OF PEOPLE, pursuing

COMMON GOALS,ACHIEVING RESULTS

and STANDARDS OF PERFORMANCE


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Legal Forms of Organisations

Types Features Disadvantages

Sole Traders One ownerInformal

IndependentClose customercontactFlexible and fast

Total personal liability

Financial limitations

Limited capability

Lack of cover

PartnershipsGeneral/managingpartner, Limited,Industrial Partners

Legal personalityTwo or more ownersProfit/loss sharingMay have limitedliability

Extended liabilityDissolution incapableLimited CapitalConflicts

CorporationsLegal personality

Artificial personality Exist in law but


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Special Types of Organisations

PARTNERSHIPS

Limited Liability

Partnerships.

The partners liabilitydo not extend to

the partnerspersonal property

CORPORATIONS

Public Limited

Companies (plc)

Private LimitedCompanies (Ltd)


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Advantages of Large Organisations


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Advantages of Small Firms

SmallFirms

Flexible

Easy toorganize

Closer to

customers/employees


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Raw material producersPrimarySector

Intermediary and final productmanufacturersSecondary

Sector

Product distributors and servicesector

TertiarySector


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Private Sector

Set up for

personal gain

Public Sector

Set up for the

interest of thecommunityand are fundedwholly orpartially by thegovernment


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Special Organizations

Cooperatives. Voluntary linkingtogether among buyers, producers orretailers into a trading organization

Voluntary Organizations. Non profit,dependent upon members and

supporters to survive. Green Peace

Charitable Organizations. should berecognized by the UK govt. Organized

for philanthropic purposes


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THE CORPORATE IDENTITY

Objectives

Goals

Mission/Values

Vision


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Coca-Cola: Mission

Our Mission

Our Roadmap starts withour mission, which isenduring. It declares ourpurpose as a company

and serves as thestandard against whichwe weigh our actions anddecisions.

To refresh the world...

To inspire moments ofoptimism and happiness...


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Coca-Cola: Vision

Our vision serves as the framework for ourRoadmap and guides every aspect of our business

by describing what we need to accomplish inorder to continue achieving sustainable, qualitygrowth.People: Be a great place to work where people are inspired

to be the best they can be.

Partners: Nurture a winning network of customers andsuppliers, together we create mutual, enduring value.

Planet: Be a responsible citizen that makes a difference byhelping build and support sustainable communities.

Profit: Maximize long-term return to shareowners whilebeing mindful of our overall responsibilities.

Productivity: Be a highly effective, lean and fast-movingorganization.


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Pepsi: Mission

Our mission is to be the world's premierconsumer products company focused on

convenient foods and beverages. We seek toproduce financial rewards to investors as weprovide opportunities for growth andenrichment to our employees, our businesspartners and the communities in which we

operate. And in everything we do, we strivefor honesty, fairness and integrity.


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Pepsi: Vision

"PepsiCo's responsibility is to

continually improve all aspects of theworld in which we operate -environment, social, economic -creating a better tomorrow than

today."Our vision is put into action through

programs and a focus onenvironmental stewardship, activities

to benefit society, and a commitmentto build shareholder value by makingPepsiCo a truly sustainable company.


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STAKEHOLDERS

Regardless of the type of business, there areunits, individuals and other entities thathave interest (affected by the actions anddecisions) with the company. They are whatwe call as

STAKEHOLDERS


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TYPES OF STAKEHOLDERS

ExternalStakeholders

ConnectedStakeholders

InternalStakeholders


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Stakeholder Mapping

Who should we satisfy?

What should we do to/for ourstakeholders?


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Prioritizing Stakeholders

ExpectationsLevel of

Satisfaction

Power Compatibilityof Interest

Conflicts

easur ng er ormance o


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easur ng er ormance oOrganisations

Exhaustive

Taken from

stakeholders

ReliableRepeatable

Revisable


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CORPORATE SOCIAL RESPONSIBILITY

Organizations have a distinct dutyto act ethically and for the sake

of the community where theyoperate.

They should do good for thesociety where they live in.


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ENVIRONMENTAL RESPONSIBILITY

Abide by environmental regulations

Waste handling

Ecological balance

Energy conservationGreen concerns


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BUSINESS ETHICS

Business ethics relates to issues ofsocial responsibility and issues of

business practice.

Issues of fairness, honesty,

integrity and social harmony


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Compliancebased

IntegrityBased


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Ethical Pressures

Extortion

Bribery

Grease Money

Gifts


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Management Responsibilities

Employee Treatment. E.g faircompensation,

Recruitment and Selection

Safety and Health


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Consumer Responsibilities

Consumer welfare and protection


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LECTURE

CONSUMER PROTECTION

O C O G


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OFFICE OF FAIR TRADING

ConsumerRegulation

Enforcement

Markets and PolicyIntitiatives

CompetitionReinforcement

T d D i ti f d


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Trade Description of goods

Any indication direct or indirect about

1.Quantity, size or gauge of goods2.Method of production or manufacturing3.Composition

4.Fitness for purpose, strength orperformance5.Other physical characteristics6.Test Results

7.Approval or conformity to certainstandards8.Place and Date of Manufacture9.Manufacturer

ommon enses regar ng


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ommon enses regar ngtrade description

1.False/incomplete information

2.Making false statements relating toservices, accommodation or facilities

3.Making misleading statements as to theprice of goods

C Ill t ti


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Case Illustrations

T d D i ti f S i


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Trade Description of Services

Any offense to make false statementsdeliberately and recklessly.

The statement in question must be false to amaterial degree.

The falsity of a statement is judged at thetime the statement was made.

Defenses Under Trade Descriptions


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Defenses Under Trade DescriptionsLegislations

a. The commission of the offense was due to

1.A MISTAKE2.RELIANCE ON INFORMATION SUPPLIED TO THEDEFENDANT

3.THE ACT OR DEFAULT OF ANOTHER PERSON

4.AN ACCIDENT OR SOME OTHER CAUSE BEYONDHIS/HER CONTROL

b. That he/she took all responsible precautions andexercised all DUE DILIGENCE to avoid the

commission of such offense.

Such precautions must be more than a token ofgesture.

S l f G d t C


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Sale of Goods to Consumers

A sale of goods is a transactionwhereby a customer obtainsownership of goods in return

for the price.

f S f


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Implied Terms of the Sale of

Goods Act

IMPLIED TERMS. These are terms that areautomatically part of a contract whetherthey were mentioned or not.

CAVEAT EMPTOR. Let the buyer beware. Thebuyer also has responsibility to be careful intheir purchases.

e.g. buying medicines, checking the productinformation, examining performance asneeded.

SATISFACTORY QUALITY


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SATISFACTORY QUALITY

1.Fitness for the purpose for which thegoods of the kind are commonly supplied

2.Appearance and finish

3.Free from defects4.Safety

5.Durability

Prod ct Liabilit


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Product Liability

NEGLIGENCE.

A mistake committed by one party as a resultof not being careful.


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To prove that a supplier/manufacturercommitted negligence, the complainant

(plaintiff) should show three things.

1.The existence of a duty of care by thedefendant.

2.A breach of that duty by the defendant.

3.Injury or damage suffered by the plaintiffas a foreseeable consequence of the breachof the duty of care.

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